- Financial Highlights
- Revenues for the first fiscal quarter increased
$18.8 million , or 5% higher, compared to the prior year period. - Gross Profit for the first fiscal quarter increased
$25.1 million , or 15% higher, compared to the prior year period. - Margin per gallon for the first fiscal quarter increased
$0.14 , or 13% higher, compared to the prior year period. - In the first fiscal quarter, operating income increased
$7.4 million , or 60% higher, compared to the prior year period with a corresponding 58% favorable increase of$0.04 in operating income per gallon. - Net loss attributable to
Ferrellgas Partners, L.P. was$4.5 million for the first fiscal quarter compared to a net loss attributable toFerrellgas Partners, L.P. of$8.6 million in the prior year period.
- Revenues for the first fiscal quarter increased
- Company Highlights
Ferrellgas welcomed its newest acquisitions to the Ferrellgas Family during the first fiscal quarter: Brown’s Gas inMarysville, California and Dubben Gas Service inDelhi, New York .- The Company announced its continued partnership with Operation Warm, a national nonprofit organization providing winter coats to children in need across
the United States andCanada . - The Company supported Operation BBQ Relief in response to Hurricane Ian.
- Over 150 employees received Ferrellgas Flame Awards in the first fiscal quarter for exemplary performance in the areas of Safety, Customer Service, Innovation, and Leadership.
"Our employees are the key to our growth. It’s their ideas, innovations and relationships that are key to our continued success and the growth of this company,” said
The Company’s growth strategy drove an increase of 1% in gallons sold in the first fiscal quarter. The growth was additionally aided by weather that was favorable compared to the prior year period. The Company’s inventory position management helps to mitigate its risk from price fluctuations tied to customers’ fixed price purchases of propane. Additionally, as a technology enabled logistics company,
Revenues increased
For the first fiscal quarter, the Company reported a net loss attributable to
“In these times of high inflation and other challenges, the Company chose to show its commitment to its most valuable resource, its employee-owners, through an extensive employee benefit package in which no increase in cost was passed on, but instead was absorbed by the Company,” Ferrell added. “We take care of our hard working, dedicated employee-owners so they in turn can take care of our customers. I could not be more proud.”
In conjunction with the Company’s
As a category 4 hurricane tracked toward
On
About
Forward Looking Statements
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 include those discussed in the Form 10-K of
Contacts
Investor Relations – InvestorRelations@ferrellgas.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
(unaudited)
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents (including | $ | 55,305 | $ | 158,737 | ||||
Accounts and notes receivable, net | 158,674 | 150,395 | ||||||
Inventories | 120,145 | 115,187 | ||||||
Price risk management asset | 24,944 | 43,015 | ||||||
Prepaid expenses and other current assets | 68,530 | 30,764 | ||||||
Total current assets | 427,598 | 498,098 | ||||||
Property, plant and equipment, net | 608,101 | 603,148 | ||||||
257,006 | 257,099 | |||||||
Intangible assets (net of accumulated amortization of | 105,924 | 97,638 | ||||||
Operating lease right-of-use assets | 67,814 | 72,888 | ||||||
Other assets, net | 71,151 | 79,244 | ||||||
Total assets | $ | 1,537,594 | $ | 1,608,115 | ||||
LIABILITIES, MEZZANINE AND EQUITY (DEFICIT) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 60,787 | $ | 57,586 | ||||
Broker margin deposit liability | 20,108 | 32,805 | ||||||
Short-term borrowing | 15,000 | — | ||||||
Current portion of long-term debt | 2,442 | 1,792 | ||||||
Current operating lease liabilities | 25,334 | 25,824 | ||||||
Other current liabilities | 187,696 | 185,805 | ||||||
Total current liabilities | 311,367 | 303,812 | ||||||
Long-term debt | 1,451,659 | 1,450,016 | ||||||
Operating lease liabilities | 43,009 | 47,231 | ||||||
Other liabilities | 37,279 | 43,518 | ||||||
Contingencies and commitments | ||||||||
Mezzanine equity: | ||||||||
Senior preferred units, net of issue discount and other offering costs (700,000 units outstanding at | 651,349 | 651,349 | ||||||
Equity (Deficit): | ||||||||
Limited partner unitholders | ||||||||
Class A (4,857,605 units outstanding at | (1,249,702 | ) | (1,229,823 | ) | ||||
Class B (1,300,000 units outstanding at | 383,012 | 383,012 | ||||||
General partner unitholder (49,496 units outstanding at | (71,521 | ) | (71,320 | ) | ||||
Accumulated other comprehensive (loss) income | (10,571 | ) | 37,907 | |||||
(948,782 | ) | (880,224 | ) | |||||
Noncontrolling interest | (8,287 | ) | (7,587 | ) | ||||
Total deficit | (957,069 | ) | (887,811 | ) | ||||
Total liabilities, mezzanine and deficit | $ | 1,537,594 | $ | 1,608,115 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit data)
(unaudited)
Three months ended | Twelve months ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenues: | |||||||||||||||
Propane and other gas liquids sales | $ | 385,844 | $ | 372,704 | $ | 2,031,019 | $ | 1,760,507 | |||||||
Other | 27,445 | 21,802 | 102,304 | 87,415 | |||||||||||
Total revenues | 413,289 | 394,506 | 2,133,323 | 1,847,922 | |||||||||||
Cost of sales: | |||||||||||||||
Propane and other gas liquids sales | 213,081 | 220,538 | 1,166,547 | 964,847 | |||||||||||
Other | 4,776 | 3,610 | 13,675 | 12,671 | |||||||||||
Gross profit | 195,432 | 170,358 | 953,101 | 870,404 | |||||||||||
Operating expense - personnel, vehicle, plant & other | 129,740 | 117,112 | 533,231 | 473,902 | |||||||||||
Operating expense - equipment lease expense | 6,024 | 5,690 | 23,428 | 25,922 | |||||||||||
Depreciation and amortization expense | 22,631 | 20,295 | 92,233 | 84,286 | |||||||||||
General and administrative expense | 14,833 | 12,575 | 55,038 | 59,560 | |||||||||||
Non-cash employee stock ownership plan compensation charge | 723 | 909 | 2,984 | 3,416 | |||||||||||
(Gain) loss on asset sales and disposals | 1,680 | 1,410 | (6,348 | ) | 2,428 | ||||||||||
Operating income | 19,801 | 12,367 | 252,535 | 220,890 | |||||||||||
Interest expense | (25,009 | ) | (25,395 | ) | (99,707 | ) | (144,785 | ) | |||||||
Loss on extinguishment of debt | — | — | — | (104,834 | ) | ||||||||||
Other income, net | 469 | 4,264 | 1,038 | 8,426 | |||||||||||
Reorganization expense - professional fees | — | — | — | (10,467 | ) | ||||||||||
Earnings (loss) before income tax expense | (4,739 | ) | (8,764 | ) | 153,866 | (30,770 | ) | ||||||||
Income tax expense | 18 | 96 | 903 | 750 | |||||||||||
Net earnings (loss) | (4,757 | ) | (8,860 | ) | 152,963 | (31,520 | ) | ||||||||
Net earnings (loss) attributable to noncontrolling interest(a) | (212 | ) | (254 | ) | 909 | (565 | ) | ||||||||
Net earnings (loss) attributable to | $ | (4,545 | ) | $ | (8,606 | ) | $ | 152,054 | $ | (30,955 | ) | ||||
Class A unitholders' interest in net loss | $ | (20,751 | ) | $ | (25,525 | ) | $ | (13,996 | ) | $ | (71,675 | ) | |||
Net loss per unitholders' interest | |||||||||||||||
Basic and diluted net loss per Class A Unit | $ | (4.27 | ) | $ | (5.25 | ) | $ | (2.88 | ) | $ | (14.76 | ) | |||
Weighted average Class A Units outstanding - basic and diluted | 4,858 | 4,858 | 4,858 | 4,858 |
Supplemental Data and Reconciliation of Non-GAAP Items:
Three months ended | Twelve months ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net earnings (loss) attributable to | $ | (4,545 | ) | $ | (8,606 | ) | $ | 152,054 | $ | (30,955 | ) | ||||
Income tax expense | 18 | 96 | 903 | 750 | |||||||||||
Interest expense | 25,009 | 25,395 | 99,707 | 144,785 | |||||||||||
Depreciation and amortization expense | 22,631 | 20,295 | 92,233 | 84,286 | |||||||||||
EBITDA | 43,113 | 37,180 | 344,897 | 198,866 | |||||||||||
Non-cash employee stock ownership plan compensation charge | 723 | 909 | 2,984 | 3,416 | |||||||||||
(Gain) loss on asset sales and disposal | 1,680 | 1,410 | (6,348 | ) | 2,428 | ||||||||||
Loss on extinguishment of debt | — | — | — | 104,834 | |||||||||||
Other income, net | (469 | ) | (4,264 | ) | (1,038 | ) | (8,426 | ) | |||||||
Reorganization expense - professional fees | — | — | — | 10,467 | |||||||||||
Severance costs include | 10 | 216 | 372 | 1,293 | |||||||||||
Legal fees and settlements related to non-core businesses | 4,872 | 2,131 | 10,679 | 9,806 | |||||||||||
Provision for doubtful accounts related to non-core businesses | — | — | — | (500 | ) | ||||||||||
Net earnings (loss) attributable to noncontrolling interest(a) | (212 | ) | (254 | ) | 909 | (565 | ) | ||||||||
Adjusted EBITDA(b) | 49,717 | 37,328 | 352,455 | 321,619 | |||||||||||
Net cash interest expense(c) | (22,606 | ) | (19,119 | ) | (102,853 | ) | (127,556 | ) | |||||||
Maintenance capital expenditures(d) | (5,832 | ) | (3,579 | ) | (19,272 | ) | (24,570 | ) | |||||||
Cash paid for income taxes | (49 | ) | — | (1,067 | ) | (671 | ) | ||||||||
Proceeds from certain asset sales | 752 | 641 | 4,224 | 4,529 | |||||||||||
Distributable cash flow attributable to equity investors(e) | 21,982 | 15,271 | 233,487 | 173,351 | |||||||||||
Less: Distributions accrued or paid to preferred unitholders | 17,966 | 17,345 | 65,908 | 41,369 | |||||||||||
Distributable cash flow attributable to general partner and non-controlling interest | (440 | ) | (305 | ) | (4,671 | ) | (3,467 | ) | |||||||
Distributable cash flow attributable to Class A and B Unitholders(f) | 3,576 | (2,379 | ) | 162,908 | 128,515 | ||||||||||
Less: Distributions paid to Class A and B Unitholders(g) | — | — | 99,996 | — | |||||||||||
Distributable cash flow excess (shortage)(h) | $ | 3,576 | $ | (2,379 | ) | $ | 62,912 | $ | 128,515 | ||||||
Propane gallons sales | |||||||||||||||
Retail - Sales to End Users | 118,396 | 115,825 | 626,887 | 629,864 | |||||||||||
Wholesale - Sales to Resellers | 43,869 | 44,055 | 206,330 | 222,490 | |||||||||||
Total propane gallons sales | 162,265 | 159,880 | 833,217 | 852,354 | |||||||||||
(a) | Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, |
(b) | Adjusted EBITDA is calculated as net earnings (loss) attributable to |
Adjusted EBITDA, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of Adjusted EBITDA that will not occur on a continuing basis may have associated cash payments. Adjusted EBITDA should be viewed in conjunction with measurements that are computed in accordance with GAAP. | |
(c) | Net cash interest expense is the sum of interest expense less non-cash interest expense and other income, net. This amount includes interest expense related to the terminated accounts receivable securitization facility. |
(d) | Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment, and may from time to time include the purchase of assets that are typically leased. |
(e) | Distributable cash flow attributable to equity investors is calculated as Adjusted EBITDA minus net cash interest expense, maintenance capital expenditures and cash paid for income taxes plus proceeds from certain asset sales. Management considers distributable cash flow attributable to equity investors a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to equity investors, including holders of the operating partnership’s Preferred Units. Distributable cash flow attributable to equity investors, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow attributable to equity investors that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to equity investors should be viewed in conjunction with measurements that are computed in accordance with GAAP. |
(f) | Distributable cash flow attributable to Class A and B Unitholders is calculated as Distributable cash flow attributable to equity investors minus distributions accrued or paid on the Preferred Units and distributable cash flow attributable to general partner and noncontrolling interest. Management considers distributable cash flow attributable to Class A and B Unitholders a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to Class A and B Unitholders. Distributable cash flow attributable to Class A and B Unitholders, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added to our calculation of distributable cash flow attributable to Class A and B Unitholders that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to Class A and B Unitholders should be viewed in conjunction with measurements that are computed in accordance with GAAP. |
(g) | The Company did not pay any distributions to Class A Unitholders during any of the periods in fiscal 2023 or fiscal 2022. |
(h) | Distributable cash flow excess (shortage) is calculated as Distributable cash flow attributable to Class A and B Unitholders minus Distributions paid to Class A and B Unitholders. Distributable cash flow excess, if any, is retained to establish reserves, to reduce debt, to fund capital expenditures and for other partnership purposes, and any shortage is funded from previously established reserves, cash on hand or borrowings under our Credit Facility or, previously, under our terminated accounts receivable securitization facility. Management considers Distributable cash flow excess (shortage) a meaningful measure of the partnership’s ability to effectuate those purposes. Distributable cash flow excess (shortage), as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow excess (shortage) that will not occur on a continuing basis may have associated cash payments. Distributable cash flow excess (shortage) should be viewed in conjunction with measurements that are computed in accordance with GAAP. |
Source:
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