- Financial Highlights
- Gross Profit for the second fiscal quarter decreased
$3.9 million , or 1%, compared to the prior year period, driven by decreases of$74.1 million and$70.2 million in revenue and cost of sales, respectively. The revenue and cost of sales changes were primarily due to wholesale propane prices that were 10.1% lower from Mt. Belvieu,Texas and 15.0% lower fromConway, Kansas compared to the prior year period. - Margin per gallon for the second fiscal quarter increased
$0.05 , or 4%, compared to the prior year period. Likewise, operating income per gallon also increased$0.02 , or 5%, compared to the prior year period. - Net earnings attributable to
Ferrellgas Partners, L.P. decreased$2.3 million , or 2%, compared to the prior year period. - Adjusted EBITDA for the second fiscal quarter decreased by
$9.0 million , or 6%, compared to the prior year period.
- Gross Profit for the second fiscal quarter decreased
- Company Highlights
- The Company acquired
Eastern Sierra Propane , based inCalifornia , during the second fiscal quarter. - Ferrellgas’ focus on technology continues with a digital welcome package for its customers, installation of tank monitoring equipment and its ongoing Enterprise Resource Planning (“ERP”) system implementation.
Blue Rhino , the Company’s tank exchange brand, celebrated its 30th birthday.Blue Rhino is working with leading influencers in backyard grilling reaching over 17 million people through the second fiscal quarter.
- The Company acquired
“Ferrellgas account managers are one of many high performing teams within
Gross profit decreased by
Gallons sold for the second fiscal quarter of 2024 decreased 13.6 million, or 5%, primarily due to customer attrition related to the impact of continued inflationary conditions across the nation and warmer weather during the quarter as compared to the prior year period.
We recognized net earnings attributable to
Adjusted EBITDA, a non-GAAP financial measure, decreased by
In conjunction with our focus on growth, we acquired
Technology remains a strategic priority as we advance various business initiatives such as the design and implementation of the ERP system noted above. Our digital welcome package and tank monitoring installations are other customer service enhancements. As a nationwide logistics company, we will benefit from having better data, miles and minutes management and pricing tools which in turn will allow us to deliver product to our customers timely and efficiently.
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 Annual Report on 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 | $ | 139,154 | $ | 137,347 | ||||
Accounts and notes receivable, net | 226,920 | 159,379 | ||||||
Inventories | 100,253 | 98,104 | ||||||
Price risk management asset | 15,276 | 11,966 | ||||||
Prepaid expenses and other current assets | 33,729 | 29,135 | ||||||
Total current assets | 515,332 | 435,931 | ||||||
Property, plant and equipment, net | 622,935 | 615,174 | ||||||
257,006 | 257,006 | |||||||
Intangible assets (net of accumulated amortization of | 116,911 | 106,615 | ||||||
Operating lease right-of-use assets | 54,034 | 57,839 | ||||||
Other assets, net | 54,735 | 58,838 | ||||||
Total assets | $ | 1,620,953 | $ | 1,531,403 | ||||
LIABILITIES, MEZZANINE AND EQUITY (DEFICIT) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 67,912 | $ | 35,115 | ||||
Current portion of long-term debt | 2,977 | 2,597 | ||||||
Current operating lease liabilities | 24,983 | 24,600 | ||||||
Other current liabilities | 203,785 | 197,030 | ||||||
Total current liabilities | 299,657 | 259,342 | ||||||
Long-term debt | 1,458,693 | 1,456,184 | ||||||
Operating lease liabilities | 30,345 | 34,235 | ||||||
Other liabilities | 25,563 | 29,084 | ||||||
Contingencies and commitments | ||||||||
Mezzanine equity: | ||||||||
Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at | 651,349 | 651,349 | ||||||
Equity (Deficit): | ||||||||
Limited partner unitholders | ||||||||
Class A (4,857,605 Units outstanding at | (1,158,241 | ) | (1,205,103 | ) | ||||
Class B (1,300,000 Units outstanding at | 383,012 | 383,012 | ||||||
General partner Unitholder (49,496 Units outstanding at | (70,092 | ) | (70,566 | ) | ||||
Accumulated other comprehensive income | 7,313 | 1,059 | ||||||
(838,008 | ) | (891,598 | ) | |||||
Noncontrolling interest | (6,646 | ) | (7,193 | ) | ||||
Total deficit | (844,654 | ) | (898,791 | ) | ||||
Total liabilities, mezzanine and deficit | $ | 1,620,953 | $ | 1,531,403 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||
(in thousands, except per unit data) (unaudited) | ||||||||||||||||||||||||
Three months ended | Six months ended | Twelve months ended | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Propane and other gas liquids sales | $ | 584,209 | $ | 651,886 | $ | 923,143 | $ | 1,037,730 | $ | 1,802,305 | $ | 2,025,401 | ||||||||||||
Other | 25,668 | 32,057 | 57,747 | 59,502 | 107,818 | 106,927 | ||||||||||||||||||
Total revenues | 609,877 | 683,943 | 980,890 | 1,097,232 | 1,910,123 | 2,132,328 | ||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||
Propane and other gas liquids sales | 277,838 | 347,492 | 450,018 | 560,573 | 892,802 | 1,130,826 | ||||||||||||||||||
Other | 3,730 | 4,243 | 8,171 | 9,019 | 15,065 | 14,361 | ||||||||||||||||||
Gross profit | 328,309 | 332,208 | 522,701 | 527,640 | 1,002,256 | 987,141 | ||||||||||||||||||
Operating expense - personnel, vehicle, plant & other | 159,638 | 157,355 | 304,284 | 287,095 | 594,709 | 562,573 | ||||||||||||||||||
Operating expense - equipment lease expense | 5,343 | 5,586 | 10,719 | 11,610 | 22,361 | 22,992 | ||||||||||||||||||
Depreciation and amortization expense | 24,435 | 23,069 | 48,839 | 45,700 | 96,509 | 93,358 | ||||||||||||||||||
General and administrative expense | 17,191 | 23,115 | 30,016 | 37,948 | 62,806 | 62,369 | ||||||||||||||||||
Non-cash employee stock ownership plan compensation charge | 900 | 722 | 1,620 | 1,445 | 3,110 | 2,955 | ||||||||||||||||||
Loss on asset sales and disposals | 382 | 290 | 1,717 | 1,970 | 5,438 | 3,217 | ||||||||||||||||||
Operating income | 120,420 | 122,071 | 125,506 | 141,872 | 217,323 | 239,677 | ||||||||||||||||||
Interest expense | (24,359 | ) | (23,177 | ) | (48,520 | ) | (48,186 | ) | (98,046 | ) | (97,745 | ) | ||||||||||||
Other income, net | 849 | 544 | 2,185 | 1,013 | 3,797 | 1,539 | ||||||||||||||||||
Earnings before income tax expense | 96,910 | 99,438 | 79,171 | 94,699 | 123,074 | 143,471 | ||||||||||||||||||
Income tax expense | 309 | 503 | 471 | 521 | 931 | 925 | ||||||||||||||||||
Net earnings | 96,601 | 98,935 | 78,700 | 94,178 | 122,143 | 142,546 | ||||||||||||||||||
Net earnings attributable to noncontrolling interest (1) | 812 | 835 | 467 | 623 | 584 | 797 | ||||||||||||||||||
Net earnings attributable to | $ | 95,789 | $ | 98,100 | $ | 78,233 | $ | 93,555 | $ | 121,559 | $ | 141,749 | ||||||||||||
Class A unitholders' interest in net earnings (loss) | $ | 11,226 | $ | 11,557 | $ | 6,421 | $ | 8,592 | $ | 8,000 | $ | (19,532 | ) | |||||||||||
Net loss per unitholders' interest | ||||||||||||||||||||||||
Basic and diluted net earnings (loss) per Class A Unit | $ | 2.31 | $ | 2.38 | $ | 1.32 | $ | 1.77 | $ | 1.65 | $ | (4.02 | ) | |||||||||||
Weighted average Class A Units outstanding - basic and diluted | 4,858 | 4,858 | 4,858 | 4,858 | 4,858 | 4,858 |
(1) | Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, |
Supplemental Data and Reconciliation of Non-GAAP Items: | ||||||||||||||||||||||||
Three months ended | Six months ended | Twelve months ended | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net earnings attributable to | $ | 95,789 | $ | 98,100 | $ | 78,233 | $ | 93,555 | $ | 121,559 | $ | 141,749 | ||||||||||||
Income tax expense | 309 | 503 | 471 | 521 | 931 | 925 | ||||||||||||||||||
Interest expense | 24,359 | 23,177 | 48,520 | 48,186 | 98,046 | 97,745 | ||||||||||||||||||
Depreciation and amortization expense | 24,435 | 23,069 | 48,839 | 45,700 | 96,509 | 93,358 | ||||||||||||||||||
EBITDA | 144,892 | 144,849 | 176,063 | 187,962 | 317,045 | 333,777 | ||||||||||||||||||
Non-cash employee stock ownership plan compensation charge | 900 | 722 | 1,620 | 1,445 | 3,110 | 2,955 | ||||||||||||||||||
Loss on asset sales and disposal | 382 | 290 | 1,717 | 1,970 | 5,438 | 3,217 | ||||||||||||||||||
Other income, net | (849 | ) | (544 | ) | (2,185 | ) | (1,013 | ) | (3,797 | ) | (1,539 | ) | ||||||||||||
Severance costs | — | 634 | — | 644 | - | 725 | ||||||||||||||||||
Legal fees and settlements related to non-core businesses | 103 | 9,107 | 1,157 | 13,979 | 8,929 | 16,979 | ||||||||||||||||||
Business transformation costs (1) | 691 | — | 965 | — | 3,053 | - | ||||||||||||||||||
Net earnings attributable to noncontrolling interest (2) | 812 | 835 | 467 | 623 | 584 | 797 | ||||||||||||||||||
Adjusted EBITDA (3) | 146,931 | 155,893 | 179,804 | 205,610 | 334,362 | 356,911 | ||||||||||||||||||
Net cash interest expense (4) | (21,424 | ) | (20,265 | ) | (42,171 | ) | (42,871 | ) | (85,995 | ) | (95,498 | ) | ||||||||||||
Maintenance capital expenditures (5) | (4,039 | ) | (4,375 | ) | (8,569 | ) | (10,207 | ) | (18,531 | ) | (19,587 | ) | ||||||||||||
Cash paid for income taxes | (256 | ) | (447 | ) | (359 | ) | (496 | ) | (955 | ) | (1,107 | ) | ||||||||||||
Proceeds from certain asset sales | 900 | 736 | 1,380 | 1,488 | 2,044 | 2,875 | ||||||||||||||||||
Distributable cash flow attributable to equity investors (6) | 122,112 | 131,542 | 130,085 | 153,524 | 230,925 | 243,594 | ||||||||||||||||||
Less: Distributions accrued or paid to preferred unitholders | 16,250 | 16,222 | 32,501 | 32,473 | 64,342 | 64,438 | ||||||||||||||||||
Distributable cash flow attributable to general partner and non-controlling interest | (2,443 | ) | (2,631 | ) | (2,602 | ) | (3,070 | ) | (4,619 | ) | (4,872 | ) | ||||||||||||
Distributable cash flow attributable to Class A and B Unitholders (7) | 103,419 | 112,689 | 94,982 | 117,981 | 161,964 | 174,284 | ||||||||||||||||||
Less: Distributions paid to Class A and B Unitholders (8) | — | — | — | — | 49,998 | 49,998 | ||||||||||||||||||
Distributable cash flow excess (9) | $ | 103,419 | $ | 112,689 | $ | 94,982 | $ | 117,981 | $ | 111,966 | $ | 124,286 | ||||||||||||
Propane gallons sales | ||||||||||||||||||||||||
Retail - Sales to End Users | 203,054 | 213,662 | 317,494 | 332,058 | 587,579 | 625,273 | ||||||||||||||||||
Wholesale - Sales to Resellers | 57,978 | 60,945 | 105,743 | 104,814 | 206,819 | 205,318 | ||||||||||||||||||
Total propane gallons sales | 261,032 | 274,607 | 423,237 | 436,872 | 794,398 | 830,591 |
(1) | Non-recurring costs included in “Operating, general and administrative expense” primarily related to the implementation of an ERP system as part of our business transformation initiatives. |
(2) | Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, |
(3) | Adjusted EBITDA is calculated as net earnings attributable to |
(4) | Net cash interest expense is the sum of interest expense less non-cash interest expense and other income, net. |
(5) | 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. |
(6) | 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. |
(7) | 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. |
(8) | The Company did not pay any distributions to Class A Unitholders during any of the periods in fiscal 2024 or fiscal 2023. |
(9) | Distributable cash flow excess 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. Management considers Distributable cash flow excess a meaningful measure of the partnership’s ability to effectuate those purposes. Distributable cash flow excess, 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 that will not occur on a continuing basis may have associated cash payments. Distributable cash flow excess should be viewed in conjunction with measurements that are computed in accordance with GAAP. |
Source:
2024 GlobeNewswire, Inc., source