Ferrellgas Partners, L.P. Reports Results for Second Quarter Fiscal 2016
March 10 2016 - 7:00AM
Ferrellgas Partners, L.P. (NYSE:FGP) today announced Adjusted
EBITDA of $138.3 million for the second quarter of fiscal 2016
ended January 31, 2016, an increase from $136.9 million in the
prior year period.
President and Chief Executive Officer Stephen L.
Wambold commented, “Despite this being one of the warmest winters
on record, our ongoing midstream diversification efforts allowed us
to deliver a year-over-year increase in Adjusted EBITDA. Bridger
continues to exceed our expectations and we are carefully
controlling costs to help offset the challenging operating
environment for our Propane and related equipment sales
segment.”
Mr. Wambold continued, “Looking ahead to the second
half of our fiscal year, we will maintain focus on operations and
strategic execution. Additionally, we will continue to consider
value-enhancing organic and external growth initiatives to mitigate
the impact of continued warm weather and capitalize on
opportunities created by low crude oil prices. We have ample
financial flexibility to drive growth without accessing the capital
markets, and we are confident that we have the pieces in place to
create significant value for all Ferrellgas unitholders.”
Continued strong expense controls in the Propane
and related equipment sales segment helped offset the impact of
elevated temperatures, which were 19% warmer than normal and 16%
warmer than the prior year period.
Adjusted EBITDA from the Midstream - Crude Oil
Logistics segment was $28.7 million during the second fiscal
quarter, which exceeded management’s expectations. These
results reflect the strength of Bridger’s customer relationships
amid sustained volatility in commodity pricing, and management’s
ability to carefully control expenses and drive efficiencies.
Operating expense for the second fiscal quarter
increased to $116.5 million from $107.1 million in the prior year
period, due to incremental operating expenses from Bridger and
non-cash items related to the changes in fair value of fuel
derivatives and contingent consideration in the current year and
prior year, respectively.
Interest expense totaled $34.7 million for the
second fiscal quarter, compared to $24.4 million a year ago,
largely due to $500 million of notes issued in connection with the
Bridger acquisition in June 2015.
Net earnings for the quarter was $57.8 million, or
$0.58 per common unit, compared to net earnings of $86.4 million,
or $1.02 per common unit, in the prior year quarter. The decrease
in net earnings is due in part to the increase in interest expense
discussed above and warm weather, as well as depreciation and
amortization expenses related primarily to the Bridger
transaction.
Ferrellgas also today announced that, due to
sustained warmer temperatures and the current commodity price
environment, it is revising its previously announced estimates for
full-year fiscal 2016 Adjusted EBITDA to a range of $360 million to
$375 million. Based on the midpoint of the Company’s fiscal 2016
estimates for Adjusted EBITDA, Ferrellgas expects its DCF coverage
ratio to increase to above 1.0 by the end of the fiscal year.
About FerrellgasFerrellgas
Partners, L.P., through its operating partnership, Ferrellgas,
L.P., and subsidiaries, serves propane customers in all 50 states,
the District of Columbia, and Puerto Rico, and provides midstream
services to major energy companies in the United States. Ferrellgas
employees indirectly own 22.8 million common units of the
partnership, through an employee stock ownership plan. Ferrellgas
Partners, L.P. filed a Form 10-K with the Securities and Exchange
Commission on September 29, 2015. Investors can request a hard copy
of this filing free of charge and obtain more information about the
partnership online at www.ferrellgas.com.
Statements in this release concerning expectations
for the future are forward-looking statements. A variety of known
and unknown risks, uncertainties and other factors could cause
results, performance and expectations to differ materially from
anticipated results, performance and expectations. These risks,
uncertainties and other factors are discussed in the Form 10-K of
Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp.,
Ferrellgas, L.P., and Ferrellgas Finance Corp. for the fiscal year
ended July 31, 2015, in the Form 10-Q of Ferrellgas Partners, L.P.,
Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas
Finance Corp. for the quarters ended October 31, 2015 and January
31, 2016 and in other documents filed from time to time by these
entities with the Securities and Exchange Commission.
FERRELLGAS PARTNERS,
L.P. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(in thousands, except unit data) |
(unaudited) |
|
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ASSETS |
|
January 31, 2016 |
|
July 31, 2015 |
|
|
|
|
|
Current
Assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
11,754 |
|
|
$ |
7,652 |
|
Accounts and notes receivable, net
(including $190,063 and 123,791 of |
|
|
|
|
accounts receivable pledged as
collateral at January 31, 2016 |
|
|
|
|
and July 31, 2015,
respectively) |
|
|
264,382 |
|
|
|
196,918 |
|
Inventories |
|
|
92,488 |
|
|
|
96,754 |
|
Prepaid expenses and other current
assets |
|
|
57,134 |
|
|
|
64,285 |
|
Total Current
Assets |
|
|
425,758 |
|
|
|
365,609 |
|
|
|
|
|
|
Property, plant and
equipment, net |
|
|
966,995 |
|
|
|
965,217 |
|
Goodwill |
|
|
445,659 |
|
|
|
478,747 |
|
Intangible assets, net |
|
|
564,964 |
|
|
|
580,043 |
|
Other
assets, net |
|
|
74,985 |
|
|
|
74,440 |
|
Assets
held for sale |
|
|
3,120 |
|
|
|
- |
|
Total Assets |
|
$ |
2,481,481 |
|
|
$ |
2,464,056 |
|
|
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|
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|
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Loss on disposal of assets and other |
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Current
Liabilities: |
|
|
|
|
Accounts payable |
|
$ |
136,100 |
|
|
$ |
83,974 |
|
Short-term borrowings |
|
|
86,200 |
|
|
|
75,319 |
|
Collateralized note payable |
|
|
119,000 |
|
|
|
70,000 |
|
Other current liabilities |
|
|
150,934 |
|
|
|
180,687 |
|
Total Current
Liabilities |
|
|
492,234 |
|
|
|
409,980 |
|
|
|
|
|
|
Long-term debt (a) |
|
|
1,894,790 |
|
|
|
1,804,392 |
|
Other liabilities |
|
|
40,335 |
|
|
|
41,975 |
|
Contingencies and commitments |
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|
|
|
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|
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Partners'
Capital: |
|
|
|
|
Common unitholders (98,002,665 and
100,376,789 units outstanding at |
|
|
|
|
January 31, 2016 and July 31,
2015) |
|
|
143,655 |
|
|
|
299,730 |
|
General partner unitholder (989,926
and 1,013,907 units outstanding at |
|
|
|
|
January 31, 2016 and July 31,
2015) |
|
|
(58,619 |
) |
|
|
(57,042 |
) |
Accumulated other comprehensive
loss |
|
|
(33,317 |
) |
|
|
(38,934 |
) |
Total Ferrellgas Partners,
L.P. Partners' Capital |
|
|
51,719 |
|
|
|
203,754 |
|
Noncontrolling Interest |
|
|
2,403 |
|
|
|
3,955 |
|
Total Partners'
Capital |
|
|
54,122 |
|
|
|
207,709 |
|
Total Liabilities and
Partners' Capital |
|
$ |
2,481,481 |
|
|
$ |
2,464,056 |
|
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|
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|
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|
|
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|
(a) The principal difference between the Ferrellgas Partners,
L.P. balance sheet and that of Ferrellgas, L.P., is $182 million of
8.625% notes which are liabilities of Ferrellgas Partners,
L.P. and not of Ferrellgas, L.P. |
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|
FERRELLGAS PARTNERS, L.P. AND
SUBSIDIARIES |
|
|
CONSOLIDATED STATEMENTS OF
EARNINGS |
|
|
FOR THE THREE, SIX AND TWELVE MONTHS ENDED
JANUARY 31, 2016 AND 2015 |
|
|
(in thousands, except per unit
data) |
|
|
(unaudited) |
|
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Three months
ended |
|
Six months
ended |
|
Twelve months ended |
|
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January 31 |
|
January 31 |
|
January 31 |
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2016 |
|
|
|
2015 |
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2016 |
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2015 |
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2016 |
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2015 |
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Revenues: |
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Propane and other gas liquids
sales |
|
$ |
376,856 |
|
|
$ |
560,867 |
|
|
$ |
622,157 |
|
|
$ |
955,228 |
|
|
$ |
1,323,945 |
|
|
$ |
1,930,902 |
|
|
|
Midstream operations |
|
|
188,333 |
|
|
|
7,153 |
|
|
|
382,003 |
|
|
|
15,069 |
|
|
|
474,123 |
|
|
|
22,504 |
|
|
|
Other |
|
|
84,049 |
|
|
|
97,953 |
|
|
|
116,224 |
|
|
|
139,031 |
|
|
|
237,378 |
|
|
|
277,069 |
|
|
|
Total
revenues |
|
|
649,238 |
|
|
|
665,973 |
|
|
|
1,120,384 |
|
|
|
1,109,328 |
|
|
|
2,035,446 |
|
|
|
2,230,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sold: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane and other gas liquids
sales |
|
|
174,829 |
|
|
|
330,692 |
|
|
|
296,580 |
|
|
|
595,506 |
|
|
|
678,298 |
|
|
|
1,241,634 |
|
|
|
Midstream operations |
|
|
148,443 |
|
|
|
2,219 |
|
|
|
302,047 |
|
|
|
4,187 |
|
|
|
374,450 |
|
|
|
6,157 |
|
|
|
Other |
|
|
55,774 |
|
|
|
68,071 |
|
|
|
70,222 |
|
|
|
89,963 |
|
|
|
150,956 |
|
|
|
184,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
270,192 |
|
|
|
264,991 |
|
|
|
451,535 |
|
|
|
419,672 |
|
|
|
831,742 |
|
|
|
798,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense |
|
|
116,463 |
|
|
|
107,147 |
|
|
|
231,444 |
|
|
|
210,030 |
|
|
|
453,696 |
|
|
|
436,514 |
|
|
|
Depreciation and amortization expense |
|
|
37,367 |
|
|
|
23,943 |
|
|
|
74,346 |
|
|
|
47,252 |
|
|
|
125,673 |
|
|
|
90,596 |
|
|
|
General
and administrative expense |
|
|
12,062 |
|
|
|
10,621 |
|
|
|
24,302 |
|
|
|
21,449 |
|
|
|
59,284 |
|
|
|
44,556 |
|
|
|
Equipment lease expense |
|
|
7,278 |
|
|
|
5,795 |
|
|
|
14,310 |
|
|
|
11,327 |
|
|
|
27,256 |
|
|
|
20,732 |
|
|
|
Non-cash
employee stock ownership plan compensation charge |
|
|
3,141 |
|
|
|
3,788 |
|
|
|
8,397 |
|
|
|
8,162 |
|
|
|
24,948 |
|
|
|
23,272 |
|
|
|
Non-cash
stock-based compensation charge (a) |
|
|
(2,456 |
) |
|
|
318 |
|
|
|
5,666 |
|
|
|
16,430 |
|
|
|
15,218 |
|
|
|
30,588 |
|
|
|
Goodwill
impairment charge |
|
|
- |
|
|
|
- |
|
|
|
29,316 |
|
|
|
- |
|
|
|
29,316 |
|
|
|
- |
|
|
|
Loss on
disposal of assets and other |
|
|
2,524 |
|
|
|
1,414 |
|
|
|
17,441 |
|
|
|
2,375 |
|
|
|
22,165 |
|
|
|
7,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
93,813 |
|
|
|
111,965 |
|
|
|
46,313 |
|
|
|
102,647 |
|
|
|
74,186 |
|
|
|
145,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(34,730 |
) |
|
|
(24,375 |
) |
|
|
(68,518 |
) |
|
|
(48,287 |
) |
|
|
(120,627 |
) |
|
|
(90,606 |
) |
|
|
Other
expense, net |
|
|
(298 |
) |
|
|
(178 |
) |
|
|
(420 |
) |
|
|
(627 |
) |
|
|
(143 |
) |
|
|
(1,379 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
|
|
58,785 |
|
|
|
87,412 |
|
|
|
(22,625 |
) |
|
|
53,733 |
|
|
|
(46,584 |
) |
|
|
53,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit) |
|
|
1,030 |
|
|
|
1,041 |
|
|
|
186 |
|
|
|
531 |
|
|
|
(660 |
) |
|
|
2,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
|
57,755 |
|
|
|
86,371 |
|
|
|
(22,811 |
) |
|
|
53,202 |
|
|
|
(45,924 |
) |
|
|
50,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) attributable to noncontrolling interest (b) |
|
|
628 |
|
|
|
913 |
|
|
|
(145 |
) |
|
|
619 |
|
|
|
(295 |
) |
|
|
678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) attributable to Ferrellgas Partners, L.P. |
|
|
57,127 |
|
|
|
85,458 |
|
|
|
(22,666 |
) |
|
|
52,583 |
|
|
|
(45,629 |
) |
|
|
50,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
General partner's interest in net earnings (loss) |
|
|
571 |
|
|
|
11,955 |
|
|
|
(227 |
) |
|
|
526 |
|
|
|
(456 |
) |
|
|
502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders' interest in net earnings
(loss) |
|
$ |
56,556 |
|
|
$ |
73,503 |
|
|
$ |
(22,439 |
) |
|
$ |
52,057 |
|
|
$ |
(45,173 |
) |
|
$ |
49,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) Per Unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted net earnings (loss) per common unitholders'
interest |
|
$ |
0.58 |
|
|
$ |
0.89 |
|
|
$ |
(0.23 |
) |
|
$ |
0.63 |
|
|
$ |
(0.48 |
) |
|
$ |
0.61 |
|
|
|
Dilutive
effect of two-class method (b) |
|
|
- |
|
|
|
0.13 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Adjusted
net earnings (loss) per unit available to common unitholders |
|
$ |
0.58 |
|
|
$ |
1.02 |
|
|
$ |
(0.23 |
) |
|
$ |
0.63 |
|
|
$ |
(0.48 |
) |
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common units outstanding |
|
|
98,334.4 |
|
|
|
82,716.9 |
|
|
|
99,355.6 |
|
|
|
82,448.3 |
|
|
|
93,169.4 |
|
|
|
81,337.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data and Reconciliation of
Non-GAAP Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
Twelve months ended |
|
|
|
|
January 31 |
|
January 31 |
|
January 31 |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Ferrellgas Partners,
L.P. |
|
$ |
57,127 |
|
|
$ |
85,458 |
|
|
$ |
(22,666 |
) |
|
$ |
52,583 |
|
|
$ |
(45,629 |
) |
|
$ |
50,173 |
|
|
|
Income tax expense (benefit) |
|
|
1,030 |
|
|
|
1,041 |
|
|
|
186 |
|
|
|
531 |
|
|
|
(660 |
) |
|
|
2,333 |
|
|
|
Interest expense |
|
|
34,730 |
|
|
|
24,375 |
|
|
|
68,518 |
|
|
|
48,287 |
|
|
|
120,627 |
|
|
|
90,606 |
|
|
|
Depreciation and amortization
expense |
|
|
37,367 |
|
|
|
23,943 |
|
|
|
74,346 |
|
|
|
47,252 |
|
|
|
125,673 |
|
|
|
90,596 |
|
|
|
EBITDA |
|
|
130,254 |
|
|
|
134,817 |
|
|
|
120,384 |
|
|
|
148,653 |
|
|
|
200,011 |
|
|
|
233,708 |
|
|
|
Non-cash employee stock ownership
plan compensation charge |
|
|
3,141 |
|
|
|
3,788 |
|
|
|
8,397 |
|
|
|
8,162 |
|
|
|
24,948 |
|
|
|
23,272 |
|
|
|
Non-cash stock based compensation
charge (a) |
|
|
(2,456 |
) |
|
|
318 |
|
|
|
5,666 |
|
|
|
16,430 |
|
|
|
15,218 |
|
|
|
30,588 |
|
|
|
Goodwill impairment charge |
|
|
- |
|
|
|
- |
|
|
|
29,316 |
|
|
|
- |
|
|
|
29,316 |
|
|
|
- |
|
|
|
Loss on disposal of assets and
other |
|
|
2,524 |
|
|
|
1,414 |
|
|
|
17,441 |
|
|
|
2,375 |
|
|
|
22,165 |
|
|
|
7,167 |
|
|
|
Other expense, net |
|
|
298 |
|
|
|
178 |
|
|
|
420 |
|
|
|
627 |
|
|
|
143 |
|
|
|
1,379 |
|
|
|
Change in fair value of contingent
consideration (included in operating expense) |
|
|
- |
|
|
|
(4,500 |
) |
|
|
(100 |
) |
|
|
(6,300 |
) |
|
|
(100 |
) |
|
|
(1,300 |
) |
|
|
Severance costs ($805 included in
operating costs and $51 included in general and administrative
costs) |
|
|
- |
|
|
|
- |
|
|
|
856 |
|
|
|
- |
|
|
|
856 |
|
|
|
- |
|
|
|
Litigation accrual and related
legal fees associated with a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
class action lawsuit (included in
general and administrative expense) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
723 |
|
|
|
83 |
|
|
|
1,147 |
|
|
|
Unrealized (non-cash) losses on
changes in fair value of derivatives |
|
|
3,870 |
|
|
|
- |
|
|
|
4,908 |
|
|
|
- |
|
|
|
7,320 |
|
|
|
- |
|
|
|
Acquisition and transition expenses
(included in general and administrative expense) |
|
|
70 |
|
|
|
- |
|
|
|
85 |
|
|
|
- |
|
|
|
16,458 |
|
|
|
- |
|
|
|
Net earnings (loss) attributable to
noncontrolling interest (b) |
|
|
628 |
|
|
|
913 |
|
|
|
(145 |
) |
|
|
619 |
|
|
|
(295 |
) |
|
|
678 |
|
|
|
Adjusted EBITDA (c) |
|
|
138,329 |
|
|
|
136,928 |
|
|
|
187,228 |
|
|
|
171,289 |
|
|
|
316,123 |
|
|
|
296,639 |
|
|
|
Net cash interest expense (d) |
|
|
(33,905 |
) |
|
|
(23,287 |
) |
|
|
(66,407 |
) |
|
|
(46,177 |
) |
|
|
(116,380 |
) |
|
|
(88,297 |
) |
|
|
Maintenance capital expenditures
(e) |
|
|
(3,214 |
) |
|
|
(4,624 |
) |
|
|
(9,429 |
) |
|
|
(9,712 |
) |
|
|
(19,329 |
) |
|
|
(18,802 |
) |
|
|
Cash paid for taxes |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(5 |
) |
|
|
(266 |
) |
|
|
(451 |
) |
|
|
(904 |
) |
|
|
Proceeds from asset sales |
|
|
1,863 |
|
|
|
1,312 |
|
|
|
2,876 |
|
|
|
2,729 |
|
|
|
6,052 |
|
|
|
4,771 |
|
|
|
Distributable cash flow to equity investors
(f) |
|
|
103,068 |
|
|
|
110,323 |
|
|
|
114,263 |
|
|
|
117,863 |
|
|
|
186,015 |
|
|
|
193,407 |
|
|
|
Distributable cash flow attributable to general partner and
non-controlling interest |
|
|
2,061 |
|
|
|
2,206 |
|
|
|
2,285 |
|
|
|
2,357 |
|
|
|
3,720 |
|
|
|
3,868 |
|
|
|
Distributable cash flow attributable to common unitholders |
|
|
101,007 |
|
|
|
108,117 |
|
|
|
111,978 |
|
|
|
115,506 |
|
|
|
182,295 |
|
|
|
189,539 |
|
|
|
Less:
Distributions paid to common unitholders |
|
|
50,223 |
|
|
|
41,359 |
|
|
|
101,666 |
|
|
|
82,715 |
|
|
|
184,384 |
|
|
|
162,922 |
|
|
|
Distributable cash flow excess/(shortage) |
|
$ |
50,784 |
|
|
$ |
66,758 |
|
|
$ |
10,312 |
|
|
$ |
32,791 |
|
|
$ |
(2,089 |
) |
|
$ |
26,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane gallons sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail - Sales to End Users |
|
|
189,460 |
|
|
|
215,996 |
|
|
|
300,433 |
|
|
|
340,143 |
|
|
|
569,071 |
|
|
|
619,320 |
|
|
|
Wholesale - Sales to Resellers |
|
|
60,781 |
|
|
|
81,310 |
|
|
|
111,347 |
|
|
|
143,245 |
|
|
|
238,167 |
|
|
|
276,756 |
|
|
|
Total propane gallons sales |
|
|
250,241 |
|
|
|
297,306 |
|
|
|
411,780 |
|
|
|
483,388 |
|
|
|
807,238 |
|
|
|
896,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salt water volume - Midstream operations (barrels
processed) |
|
|
4,222 |
|
|
|
4,722 |
|
|
|
8,956 |
|
|
|
8,719 |
|
|
|
17,272 |
|
|
|
11,219 |
|
|
|
Crude oil hauled - Midstream operations
(barrels) |
|
|
24,345 |
|
|
|
|
|
48,609 |
|
|
|
|
|
59,056 |
|
|
|
|
|
Crude oil sold - Midstream operations
(barrels) |
|
|
1,593 |
|
|
|
|
|
3,103 |
|
|
|
|
|
3,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Non-cash stock-based compensation charges consist of the
following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
Twelve months ended |
|
|
|
|
January 31 |
|
January 31 |
|
January 31 |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
Operating expense |
|
$ |
(466 |
) |
|
$ |
67 |
|
|
$ |
752 |
|
|
$ |
3,612 |
|
|
$ |
2,315 |
|
|
$ |
6,610 |
|
|
|
General and administrative
expense |
|
|
(1,990 |
) |
|
|
251 |
|
|
|
4,914 |
|
|
|
12,818 |
|
|
|
12,903 |
|
|
|
23,978 |
|
|
|
Total |
|
$ |
(2,456 |
) |
|
$ |
318 |
|
|
$ |
5,666 |
|
|
$ |
16,430 |
|
|
$ |
15,218 |
|
|
$ |
30,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Amounts allocated to the general partner for its
1.0101% interest in the operating partnership, Ferrellgas,
L.P. |
|
|
|
|
|
|
|
|
(c) Adjusted EBITDA is calculated as net earnings
attributable to Ferrellgas Partners, L.P., income tax expense
(benefit), interest expense, depreciation and amortization
expense, non-cash employee stock ownership plan compensation
charge, non-cash stock-based compensation charge, goodwill
impairment charge, loss on disposal of assets, other expense,
net, change in fair value of contingent consideration, litigation
accrual and related legal fees associated with a class action
lawsuit, unrealized (non-cash) losses on changes in fair value
of derivatives, acquisition and transition expenses and net
earnings (loss) attributable to noncontrolling interest.
Management believes the presentation of this measure on
changes in fair value of derivatives, acquisition and transition
expenses and net earnings (loss) attributable to noncontrolling
interest. Management believes the presentation of this
measure on changes in fair value of derivatives, acquisition
and transition expenses and net earnings (loss) attributable to
noncontrolling interest. Management believes the presentation
of this measure is relevant and useful, because it allows
investors to view the partnership's performance in a manner similar
to the method management uses, adjusted for items management
believes makes it easier to compare its results with other
companies that have different financing and capital structures.
This method of calculating Adjusted EBITDA may not be consistent
with that of other companies and should be viewed in
conjunction with measurements that are computed in accordance with
GAAP. |
|
|
|
|
|
|
|
|
(d) Net cash interest expense is the sum of interest
expense less non-cash interest expense and other expense, net. This
amount includes interest expense related to the accounts
receivable securitization facility. |
|
|
|
|
|
|
|
|
(e) Maintenance capital expenditures include capitalized
expenditures for betterment and replacement of property, plant and
equipment. |
|
|
|
|
|
|
|
|
(f) Management considers distributable cash flow to
equity investors a meaningful non-GAAP measure of the partnership's
ability to declare and pay quarterly distributions to equity
investors. Distributable cash flow to equity investors, as
management defines it, may not be comparable to distributable cash
flow to equity investors or similarly titled measurements used
by other corporations and partnerships. Items added into our
calculation of distributable cash flow to equity investors that
will not occur on a continuing basis may have associated cash
payments. Distributable cash flow to equity investors may not be
consistent with that of other companies and should be viewed in
conjunction with measurements that are computed in accordance
with GAAP. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
following table includes a reconciliation of forecasted net
earnings attributable to Ferrellgas Partners, L.P. to forecasted
Adjusted EBITDA for the fiscal year ending July 31, 2016. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
Net earnings
attributable to Ferrellgas Partners, L.P. (estimate) (g) |
|
|
|
|
|
|
|
|
|
|
|
|
(12,500 |
) |
|
|
Interest expense (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
135,000 |
|
|
|
Income tax expense (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
1,000 |
|
|
|
Depreciation and amortization
expense (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
150,000 |
|
|
|
Non-cash employee stock ownership
plan compensation charge (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
26,000 |
|
|
|
Non-cash stock based compensation
charge (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
18,000 |
|
|
|
Loss on disposal of assets
(estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
19,900 |
|
|
|
Change in fair value of contingent
consideration (included in operating expense) |
|
|
|
|
|
|
|
|
|
|
|
|
(100 |
) |
|
|
Severance costs |
|
|
|
|
|
|
|
|
|
|
|
|
900 |
|
|
|
Goodwill impairment charge |
|
|
|
|
|
|
|
|
|
|
|
|
29,300 |
|
|
|
Adjusted EBITDA
(h) |
|
|
|
|
|
|
|
|
|
|
|
|
367,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
Represents estimated net earnings attributable to Ferrellgas
Partners, L.P. after adjusting for change in fair value of gains
and losses on commodity and interest rate derivative
instruments not associated with current-period transactions. It is
impracticable to determine actual gains and losses on
these instruments not associated with current-period
transactions that will be reported in GAAP net income as such gains
and losses will depend upon future changes in commodity prices
and interest rates which cannot be forecasted. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h)
Represents the midpoint of Adjusted EBITDA guidance range for
fiscal 2016. |
|
|
|
|
|
|
|
|
Contacts
Jack Herrold, Investor Relations – jackherrold@ferrellgas.com or (913) 661-1851
Jim Saladin, Media Relations – jimsaladin@ferrellgas.com or (913) 661-1833
Scott Brockelmeyer, Media Relations – scottbrockelmeyer@ferrellgas.com or (913) 661-1830
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