LIBERTY, Mo., Sept. 24 /PRNewswire/ -- Ferrellgas Partners, L.P.
(NYSE: FGP), today reported record net earnings of $64.1 million for the
fiscal year ended July 31, 2001. These record earnings reflect an increase in
sales volumes attributable to colder winter temperatures and the full year
contribution of Thermogas, which was acquired in December 1999.
"We are extremely pleased to deliver these strong financial results to our
investors," said James E. Ferrell, Chairman and Chief Executive Officer.
"Investor confidence in Ferrellgas has remained strong as our common units
have delivered a total return of about 40 percent since the beginning of the
year, including appreciation and distributions, while the overall market has
declined significantly during the same time frame."
Retail sales volumes of 957 million gallons increased 13 percent from 847
million gallons sold in fiscal 2000. This increased sales volume generated
gross profit of $538.6 million, an increase of 26 percent, and operating
expense of $288.3 million, an increase of 13 percent compared to the prior
year. The resulting EBITDA of $193.8 million represents a 59 percent increase
from $122.1 million reported in the prior year. Net earnings per common unit
was $1.43 compared to a loss per common unit of $0.32 in the prior year.
"I am very proud of our financial and operational successes this year and
believe we have further solidified our position as the nation's leading
propane company," Ferrell commented. "We celebrate our fiscal 2001 successes
while now focusing our efforts on fiscal 2002 and the upcoming winter heating
season. We will build upon our success and continue to improve and streamline
our operations."
The retail propane business is seasonal with peak activity during the
winter months. Our fourth quarter operations typically represent less than 15
percent of our annual sales volume. The partnership historically experiences
losses during the fourth quarter because fixed costs exceed the off-season
cash flow. For the fourth quarter, retail sales of 109 million gallons
produced a seasonal loss of $43.7 million, compared to $42.5 million in the
same quarter of fiscal 2000.
Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas,
L.P., is one of the nation's largest retail marketers of propane, serving more
than one million customers in 45 states. Ferrellgas employees indirectly own
more than 17 million units of the partnership through an Employee Stock
Ownership Plan. Ferrellgas trades on the New York Stock Exchange under the
ticker symbol FGP.
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 actual results, performance and
expectations to differ materially from anticipated results, performance or
expectations. These risks, uncertainties and other factors are discussed in
the partnership's Form 10-K for fiscal 2000 dated July 31, 2000, as filed with
the Securities and Exchange Commission on October 26, 2000, and other
documents filed from time to time with the Securities and Exchange Commission.
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
Unaudited Audited
ASSETS July 31, 2001 July 31, 2000
Current Assets:
Cash and cash equivalents $25,386 $14,838
Accounts and notes receivable, net 56,772 89,801
Inventories 65,284 71,979
Prepaid expenses and other current
assets 10,504 8,275
Total Current Assets 157,946 184,893
Property, plant and equipment, net 491,194 516,183
Intangible assets, net 230,918 256,476
Other assets, net 16,101 10,355
Total Assets $896,159 $967,907
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable $58,274 $95,264
Other current liabilities 77,610 77,631
Short-term borrowings - 18,342
Total Current Liabilities 135,884 191,237
Long-term debt 704,782 718,118
Other liabilities 15,472 16,176
Contingencies and commitments - -
Minority interest 2,034 2,032
Partners' Capital:
Senior unitholder (2,801,622 and
4,652,691 units outstanding at
July 2001 and July 2000,
respectively - liquidation preference
at $40 per unit) 112,065 179,786
Common unitholders (35,908,366 and
31,307,116 units outstanding at
July 2001 and July 2000, respectively) (12,959) (80,931)
General partner unitholder (362,711
and 316,233 units outstanding at July
2001 and July 2000, respectively) (58,738) (58,511)
Accumulated other comprehensive
income (2,381) -
Total Partners' Capital 37,987 40,344
Total Liabilities and Partners'
Capital $896,159 $967,907
Note: The principal difference between the Ferrellgas Partners, L.P.
balance sheet and that of Ferrellgas, L.P., the operating
partnership, is $160 million of 9 3/8% notes, which are a
liability of Ferrellgas Partners, L.P. and not of Ferrellgas,
L.P.
Three months ended Twelve months ended
July 31 July 31
Unaudited Unaudited Audited
2001 2000 2001 2000
Revenues:
Gas liquids and related
product sales (A) $134,421 $135,171 $1,381,940 $879,380
Other (A) 19,578 18,982 86,730 79,643
Total revenues 153,999 154,153 1,468,670 959,023
Cost of product sold (A) 94,538 90,456 930,117 530,979
Gross profit 59,461 63,697 538,553 428,044
Operating expense 59,412 58,764 288,258 255,838
Depreciation and
amortization expense 14,061 18,252 56,523 61,633
General and administrative
expense 7,262 6,374 25,508 24,587
Equipment lease expense 6,600 7,906 30,986 25,518
Employee stock ownership
plan compensation charge 1,333 840 4,843 3,733
Loss (gain) on disposal of
assets and other 983 (386) 5,744 (356)
Operating income (loss) (30,190) (28,053) 126,691 57,091
Interest expense (14,386) (15,489) (61,544) (58,298)
Interest income 607 661 3,027 2,229
Other charges (B) (159) - (3,277) -
Earnings (loss) before
minority interest (44,128) (42,881) 64,897 1,022
Minority interest (C) (411) (399) 829 162
Net earnings (loss) (43,717) (42,482) 64,068 860
Distribution to senior
unitholder 3,703 4,539 18,013 11,108
Net earnings (loss)
available to general
partner (474) (470) 461 (102)
Net earnings (loss)
available to common
unitholders $(46,946) $(46,551) $45,594 $(10,146)
Net earnings (loss) per
common unit:
Net earnings (loss) per
common unit $(1.38) $(1.49) $1.43 $(0.32)
Weighted average common
units outstanding 34,005.8 31,307.1 31,987.3 31,306.6
Supplemental Data (unaudited):
Three months ended Twelve months ended
July 31 July 31
2001 2000 2001 2000
Retail gallons 108,810 117,197 956,718 846,664
EBITDA (D) $(13,813) $(9,347) $193,801 $122,101
Net cash interest
expense (E) (13,985) (14,257) (59,263) (53,541)
Maintenance capital
expenditures and
other charges (B) (5,291) (755) (15,373) (8,917)
Accrued and paid
cash distribution
to senior
unitholder (2,802) - (5,642) -
Accrued and paid
cash distribution
to general partner (57) - (115) -
Distributable cash
flow (35,948) (24,359) 113,408 59,643
Less: General
partner (682) (454) 2,435 1,338
Distributable cash
flow to common
unitholders $(35,266) $(23,905) $110,973 $58,305
(A) In accordance with the FASB's EITF 99-19, certain amounts reported
net in Other Revenue included in the three and twelve months ended
July 31 of fiscal 2000 consolidated statement of earnings have
been reclassified as gross Revenues and Cost of product sold to
conform
to the three and twelve months ended of fiscal 2001 presentation.
(B) Amount relates to expenses incurred for the modification of the terms
of senior units and common units on April 6, 2001.
(C) Amounts allocated to the general partner for its 1.0101% interest in
the operating partnership, Ferrellgas, L.P.
(D) EBITDA is calculated as earnings before interest, taxes,
depreciation, amortization, other charges and non-cash items such as
employee stock ownership plan compensation charge and (gain) loss
on disposal of assets and other. EBITDA is not intended to
represent cash flow and does not represent the measure of cash
available for distribution. EBITDA is a non-GAAP measure, but
provides additional information for evaluating the partnership's
ability to make the Minimum Quarterly Distribution. In
addition, EBITDA is not intended as an alternative to operating
income or net earnings.
(E) Net cash interest expense is the sum of interest expense less non-
cash interest expense and interest income. This amount
also includes interest expense related to the accounts receivable
securitization.
CONTACT: Investor Relations, Ryan VanWinkle, +1-816-792-7998, or Media
Relations, Scott Brockelmeyer, +1-816-792-7837, both of
Ferrellgas Partners, L.P.
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SOURCE Ferrellgas Partners, L.P.
Web site: http: //www.ferrellgas.com
CONTACT: Investor Relations, Ryan VanWinkle, +1-816-792-7998, or Media Relations, Scott Brockelmeyer, +1-816-792-7837, both of Ferrellgas Partners
