LIBERTY, Mo., Nov. 28 /PRNewswire/ -- Ferrellgas Partners, L.P.
(NYSE: FGP), the nation's largest retail marketer of propane, today reported a
30 percent increase in retail gallon sales and a 27 percent increase in EBITDA
(earnings before interest, taxes, depreciation, amortization and other
non-cash items) for the first quarter, as compared to the same period last
year. The first quarter covers the three-month period ended October 31, 2000.
First quarter retail propane sales of 200 million gallons produced a gross
profit of $92.1 million as compared to last year's first quarter retail
propane sales of 153 million gallons, which produced a gross profit of
$77.4 million. The primary contributor to the increased gallon sales was the
acquisition of Thermogas in December 1999. Gross profit increased due to the
increased sales volumes and improved retail margins, partially offset by
significant gains in risk management recognized in the first quarter of last
year that were not repeated this quarter.
Operating expense of $65.1 million reflects a 4.7 cent per gallon decrease
in operating expense as compared to the same quarter last year primarily due
to the successful integration of Thermogas' operations and other operating
efficiency programs put in place over the past several months.
"Over the past couple years we focused on growing the business through
acquisitions. More recently, we have intensified our focus on operating
profitably," said James E. Ferrell, Ferrellgas' President and Chief Executive
Officer. "During this off-peak season we have taken decisive steps to improve
our operating efficiency, which removed significant operating and overhead
costs from our business."
General and administrative expenses remained relatively flat at
$4.7 million for the quarter compared to $5.2 million for the same period last
year despite increased administrative burden from the addition of Thermogas.
The resulting EBITDA for the first quarter was $14.2 million, an increase from
$11.2 million in the same quarter last year.
The propane business is seasonal with peak activity during the winter.
First quarter operations typically represent about 20 percent of annual sales
volume and 10 percent of EBITDA. The partnership historically experiences
losses during the first quarter because certain annualized fixed costs exceed
seasonal EBITDA. Annualized fixed costs include depreciation and
amortization, equipment leases, and interest; all of which increased over the
first quarter of last year primarily due to the addition of Thermogas'
operations. The resulting net earnings for the quarter reflect a seasonal
loss of $17.6 million, which is an increase from $14.2 million in the same
quarter of fiscal 2000.
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)
Unaudited Audited
ASSETS October 31, 2000 July 31, 2000
Current Assets:
Cash and cash equivalents $22,129 $14,838
Accounts and notes receivable, net 49,438 89,801
Inventories 79,072 71,979
Prepaid expenses and other current assets 9,559 8,275
Total Current Assets 160,198 184,893
Property, plant and equipment, net 510,062 516,183
Intangible assets, net 250,461 256,476
Other assets, net 23,327 10,355
Total Assets $944,048 $967,907
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable $128,577 $95,264
Other current liabilities 57,951 77,631
Short-term borrowings 5,428 18,342
Total Current Liabilities 191,956 191,237
Long-term debt 724,930 718,118
Other liabilities 15,322 16,176
Minority interest 1,703 2,032
Partners' Capital:
Senior common unitholder (4,769,009 and
4,652,691 units outstanding at October 2000
and July 2000, respectively - liquidation
preference at $40 per unit) 185,555 179,786
Common unitholders (31,307,116 units
outstanding at both October 2000 and
July 2000) (118,637) (80,931)
General partner unitholder (316,233 units
outstanding at both October 2000 and
July 2000) (58,892) (58,511)
Accumulated other comprehensive income 2,111 -
Total Partners' Capital 10,137 40,344
Total Liabilities and Partners' Capital $944,048 $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 MONTHS ENDED OCTOBER 31, 2000 AND 1999
(in thousands, except per unit data)
(Unaudited)
Three months ended October 31
2000 1999
Revenues:
Gas liquids and related sales $260,097 $141,507
Other 10,287 21,232
Total revenues 270,384 162,739
Cost of product sold 178,243 85,325
Gross profit 92,141 77,414
Operating expense 65,143 57,177
Depreciation and amortization expense 14,031 12,083
General and administrative expense 4,717 5,183
Equipment lease expense 8,107 3,853
Employee stock ownership plan compensation and
other 886 1,027
Loss on disposal of assets 1,354 96
Operating loss (2,097) (2,005)
Interest expense (16,168) (12,581)
Interest income 557 258
Loss before minority interest (17,708) (14,328)
Minority interest (A) (143) (106)
Net loss (17,565) (14,222)
Paid in kind distribution to senior common
unitholder 4,653 N/A
Net loss available to general partner (222) (142)
Net loss available to common unitholders $(21,996) $(14,080)
Net loss per common unit:
Net loss per common unit $(0.70) $(0.45)
Weighted average common units outstanding 31,307.1 31,305.5
Supplemental Data:
Three months ended October 31
2000 1999
Retail gallons 200,063 153,429
EBITDA (B) $14,174 $11,201
Net cash interest expense (C) (15,024) (11,735)
Maintenance capital expenditures (1,971) (2,290)
Distributable cash flow (2,821) (2,824)
Less: General partner (22) (19)
Distributable cash flow to common unitholders $(2,799) $(2,805)
(A) Amounts allocated to the general partner for its 1.0101% interest in
the operating partnership, Ferrellgas, L.P.
(B) EBITDA is calculated as earnings before interest, taxes,
depreciation, amortization and non-cash items such as employee stock
ownership plan compensation and loss on disposal of assets. 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 loss
or net loss.
(C) Net cash interest expense is the sum of interest expense less non-
cash interest expense and interest income.
CONTACT: Ken Heinz, Investor Relations, 816-792-6907, or Pam Blase, Media
Relations, 816-792-7902, both of Ferrellgas Partners, L.P.
SOURCE Ferrellgas Partners, L.P.
Web site: http: //www.ferrellgas.com
CONTACT: Ken Heinz, Investor Relations, 816-792-6907, or Pam Blase, Media Relations, 816-792-7902, both of Ferrellgas Partners, L.P.
