LIBERTY, Mo., May 23 /PRNewswire/ -- Ferrellgas Partners, L.P.
(NYSE: FGP), the nation's largest retail marketer of propane, today reported
record third quarter net earnings of $30.4 million, an increase from
$5.4 million in the third quarter of the prior year. Third quarter results
are reported for the three-month period ended April 30, 2001.
Retail propane sales for the quarter were 249 million gallons, a slight
decline compared with the same quarter last year. The favorable impact of
colder temperatures on retail gallon sales for the quarter was offset by
customer conservation that resulted from higher product prices. Gross profit
for the quarter of $152.8 million was up 23 percent over the same quarter last
year, while operating expense of $73.4 million was up only 4 percent.
The company reported EBITDA (earnings before interest, taxes,
depreciation, amortization, other charges and non-cash items) for the quarter
of $65.2 million, a 71 percent increase from $38.2 million reported in the
same quarter last year.
"Our renewed focus on business operations and the return of normal winter
weather has had a very positive impact on our profitability this year," said
James E. Ferrell, Ferrellgas' Chairman and Chief Executive Officer. "We are
pleased to deliver strong financial results again this quarter following the
market's favorable reaction to our announced equity restructuring in April."
On April 6, the company announced the completion of a series of
transactions that increased the cash distribution coverage to its public
unitholders and modified the terms of its outstanding senior units.
For the nine-month period ended April 30, 2001, colder national
temperatures and the addition of Thermogas operations generated an increase in
sales volumes to 848 million retail gallons, a 16 percent increase from 729
million gallons in the prior-year period. Gross profit for the nine-month
period of $479.1 million was up 31 percent over the same period last year
while operating expense of $228.8 million was up 16 percent. Year-to-date
operations generated EBITDA of $207.6 million, a 58 percent increase from
$131.4 million reported for the same period of the prior year.
Net earnings for the nine-month period were $107.8 million, or $2.96 per
common unit, as compared to $43.3 million, or $1.16 per common unit, in the
prior year nine-month results.
Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas,
L.P., currently serves 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)
ASSETS April 30, 2001 July 31, 2000
Current Assets:
Cash and cash equivalents $21,264 $14,838
Accounts and notes receivable, net 109,980 89,801
Inventories 60,170 71,979
Prepaid expenses and other current assets 12,801 8,275
Total Current Assets 204,215 184,893
Property, plant and equipment, net 493,838 516,183
Intangible assets, net 237,634 256,476
Other assets, net 18,687 10,355
Total Assets $954,374 $967,907
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable $60,679 $95,264
Other current liabilities 67,754 77,631
Short-term borrowings -- 18,342
Total Current Liabilities 128,433 191,237
Long-term debt 707,844 718,118
Other liabilities 16,196 16,176
Minority interest 2,671 2,032
Partners' Capital:
Senior common unitholder (4,888,234 and
4,652,691 units outstanding at
April 2001 and July 2000, respectively
-- liquidation preference at $40 per unit) 195,529 179,786
Common unitholders (31,307,116 units
outstanding at both April 2001 and
July 2000) (38,221) (80,931)
General partner unitholder (316,233 units
outstanding at both April 2001 and
July 2000) (58,078) (58,511)
Accumulated other comprehensive income -- --
Total Partners' Capital 99,230 40,344
Total Liabilities and Partners'
Capital $954,374 $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.
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2001 AND 2000
(in thousands, except per unit data)
(Unaudited)
Three months ended Nine months ended
April 30 April 30
2001 2000 2001 2000
Revenues:
Gas liquids and
related product
sales $364,723 $279,043 $1,237,572 $736,575
Other 28,112 21,197 74,845 67,399
Total revenues 392,835 300,240 1,312,417 803,974
Cost of product sold 240,034 176,274 833,325 439,627
Gross profit 152,801 123,966 479,092 364,347
Operating expense 73,358 70,556 228,846 197,074
Depreciation and
amortization expense 14,484 17,382 42,462 43,381
General and
administrative
expense 6,619 7,070 18,246 18,213
Equipment lease
expense 7,618 8,173 24,386 17,612
Employee stock
ownership plan
compensation charge 1,316 840 3,510 2,893
(Gain) loss on
disposal of assets
and other 1,607 (99) 4,761 30
Operating income 47,799 20,044 156,881 85,144
Interest expense (14,884) (15,531) (47,158) (42,809)
Interest income 981 959 2,420 1,568
Other charges (a) (3,118) -- (3,118) --
Earnings before
minority interest 30,778 5,472 109,025 43,903
Minority interest (b) 376 94 1,240 561
Net earnings 30,402 5,378 107,785 43,342
Distribution to senior
common unitholder 4,888 4,428 14,310 6,568
Net earnings available
to general partner 255 10 935 368
Net earnings available
to common unitholders $25,259 $940 $92,540 $36,406
Net earnings per
common unit:
Net earnings per
common unit $0.81 $0.03 $2.96 $1.16
Weighted average
common units
outstanding 31,307.1 31,307.1 31,307.1 31,306.6
Supplemental Data:
Three months ended Nine months ended
April 30 April 30
2001 2000 2001 2000
Retail gallons 248,785 261,994 847,908 729,467
EBITDA (c) $65,206 $38,167 $207,614 $131,448
Net cash interest
expense (d) (14,590) (13,911) (45,278) (39,284)
Maintenance capital
expenditures and
other charges (a) (5,492) (2,212) (10,082) (8,162)
Distributable cash
flow 45,124 22,044 152,254 84,002
Less: General
partner 966 478 3,176 1,793
Distributable cash
flow to common
unitholders $44,158 $21,566 $149,078 $82,209
(a) Amount relates to expenses incurred for the modification of the terms
of senior common units and common units on April 6, 2001.
(b) Amounts allocated to the general partner for its 1.0101% interest in
the operating partnership, Ferrellgas, L.P.
(c) 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.
(d) 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: Ryan VanWinkle, Investor Relations, 816-792-7998, or
Scott Brockelmeyer, Media Relations, 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: Ryan VanWinkle, Investor Relations, 816-792-7998, or Scott Brockelmeyer, Media Relations, 816-792-7837, both of Ferrellgas Partners, L.P.
