LIBERTY, Mo., Sept. 26 /PRNewswire/ -- Ferrellgas Partners, L.P.
(NYSE: FGP), the nation's largest retail marketer of propane, today reported a
26 percent increase in both retail gallon sales and gross profit for the
fourth quarter, as compared to the same period last year. The fourth quarter
covers the three-month period ended July 31, 2000.
Fourth quarter gross profit was $63.7 million on retail propane sales of
117 million gallons, as compared to last year's fourth quarter gross profit of
$50.7 million on retail propane sales of 93 million gallons. The acquisition
of Thermogas in December 1999 resulted in the partnership's increased gross
profit and gallon sales which more than offset the impact of higher product
costs experienced during the quarter. Operating expenses of $58.8 million
increased from $45.0 million for the same quarter last year primarily due to
the addition of Thermogas.
"We are very pleased with the contribution our Thermogas acquisition
provided in fiscal 2000," said Danley K. Sheldon, Ferrellgas' President and
Chief Executive Officer. "The fourth quarter is our off-peak season which
allowed us to focus on cost reductions through further integration of
Ferrellgas and Thermogas operations. We look forward to the upcoming heating
season and capitalizing on cost savings achieved through our integration
efforts."
EBITDA (earnings before interest, taxes, non-cash compensation,
depreciation and amortization) for the fourth quarter reflected a seasonal
loss of $9.3 million, increasing from $2.7 million in the same quarter last
year. Net earnings for the quarter reflected a seasonal loss of $42.5 million
increasing from $27.5 million in the same quarter of fiscal 1999. The
increased seasonal loss reflects the additional depreciation, equipment lease
and interest expense from Thermogas operations.
"Fiscal 2000 presented many operating challenges including record warm
temperatures, high product costs and the integration of Thermogas which was
our largest acquisition ever," said Sheldon. "I am proud of our performance
given this year's tough operating environment and am confident that we are
strategically positioned for the future."
For the fiscal year ended July 31, 2000, EBITDA was $122.1 million, up
from $112.9 million in fiscal 1999. Net earnings before extraordinary items
was $.9 million compared to $14.8 million in fiscal 1999. Retail sales
volumes were 847 million gallons in fiscal 2000 compared with 680 million
gallons sold in fiscal 1999. Gross profit increased 22 percent, from
$350.8 million in fiscal 1999 to $428.0 million in fiscal 2000. The increases
in fiscal 2000 were primarily attributable to the addition of Thermogas plus a
strong performance from the company's Houston-based risk management operation
which more than offset the impact from increased product costs.
Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas,
L.P., currently serves more than one million customers in 45 states.
Ferrellgas employees own approximately 50 percent of the company 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 1999 dated July 31, 1999, as filed with
the Securities and Exchange Commission on October 29, 1999, and other
documents filed from time to time with the Securities and Exchange Commission.
FERRELLGAS PARTNERS, L.P.
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
ASSETS July 31, 2000 July 31, 1999
Current Assets:
Cash and cash equivalents $ 14,838 $ 35,134
Accounts and notes receivable, net 89,801 58,380
Inventories 71,979 24,645
Prepaid expenses and other current assets 8,275 6,780
Total Current Assets 184,893 124,939
Property, plant and equipment, net 516,183 405,292
Intangible assets, net 256,476 118,117
Other assets, net 10,355 8,397
Total Assets $ 967,907 $ 656,745
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable $ 95,264 $ 60,754
Other current liabilities 77,631 48,266
Short-term borrowing 18,342 20,486
Total Current Liabilities 191,237 129,506
Long-term debt 718,118 583,840
Other liabilities 16,176 12,144
Minority interest 2,032 906
Partners' Capital:
Senior common unitholders (4,652,691 units
outstanding at July 2000 -liquidation
preference $40 per unit) 179,786 --
Common unitholders (31,307,116 and
14,710,765 units outstanding at July 2000
and July 1999, respectively) (80,931) 1,215
Subordinated unitholders (16,593,721 units
outstanding at July 1999) -- (10,516)
General partner (58,511) (59,553)
Accumulated other comprehensive income -- (797)
Total Partners' Capital 40,344 (69,651)
Total Liabilities and Partners' Capital $ 967,907 $ 656,745
(A) The principal difference between Ferrellgas Partners, L.P.'s balance
sheet and that of Ferrellgas, L.P.'s, the operating partnership, is
$160 million of 9 3/8% notes, which are a liability of Ferrellgas
Partners, L.P. and not of the operating partnership.
FERRELLGAS PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE TWELVE MONTHS ENDED JULY 31, 2000 AND 1999
(in thousands, except per unit data)
Three months ended July 31 Twelve months ended July 31
2000 1999 2000 1999
Revenues:
Gas liquids and
related sales $ 131,204 $ 82,290 $ 867,779 $ 578,025
Other 17,021 11,551 84,420 46,124
Total revenues 148,225 93,841 952,199 624,149
Cost of product sold 84,528 43,177 524,155 273,388
Gross profit 63,697 50,664 428,044 350,761
Operating expense 58,764 44,957 255,838 205,720
Depreciation and
amortization expense 18,252 11,984 61,633 47,257
Non-cash ESOP
compensation expense 840 805 3,733 3,295
General and
administrative
expense 6,374 4,943 24,587 19,174
Equipment lease expense 7,906 3,484 25,518 12,976
Operating income (28,439) (15,509) 56,735 62,339
Interest expense (15,489) (11,779) (58,298) (46,621)
Interest income 661 342 2,229 1,216
Gain (loss) on
disposal of assets 386 (835) 356 (1,842)
Earnings before
minority interest and
extraordinary loss (42,881) (27,781) 1,022 15,092
Minority interest (A) 399 241 (162) (309)
Earnings before
extraordinary loss (42,482) (27,540) 860 14,783
Extraordinary loss
on early
extinguishments of
debt, net of minority
interest -- -- -- (12,786)
Net earnings $ (42,482) $ (27,540) $ 860 $ 1,997
Paid in kind
distribution to
senior common
unitholders 4,539 N/A 11,108 N/A
Net earnings
available to general
partner (470) (275) (102) 20
Net earnings
available to common
unitholders $ (46,551) $ (27,265) $ (10,146) $ 1,977
Net earnings per
common unit:
Net earnings before
extraordinary loss $ (1.49) $ (0.87) $ (0.32) $ 0.47
Net earnings
per unit $ (1.49) $ (0.87) $ (0.32) $ 0.06
Weighted average
units
outstanding 31,307.1 31,304.5 31,306.7 31,304.5
Supplemental Data:
Three months ended July 31 Twelve months ended July 31
2000 1999 2000 1999
Retail gallons 117,197 92,766 846,664 680,477
EBITDA (B) $ (9,347) $ (2,720) $ 122,101 $ 112,891
Net cash interest
expense (C) (14,257) (10,859) (53,541) (43,245)
Maintenance capital
expenditures (755) (1,993) (8,917) (10,505)
Distributable cash
flow (24,359) (15,572) 59,643 59,141
Less: General partner
interest 454 274 (1,338) (1,333)
Distributable
cash flow to
unitholders $(23,905) $(15,298) $58,305 $57,808
(A) Amounts allocated to the general partner for its 1.0101% interest in
the Operating Partnership, Ferrellgas, L.P.
(B) EBITDA is calculated as operating income plus depreciation,
amortization and non-cash ESOP compensation expense. 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.
(C) Net cash interest expense is interest expense less non-cash interest
expense and interest income.
CONTACT: Kenneth A. Heinz, Investor Relations, 816-792-6907, or
Pam Blase, Media Relations, 816-792-7902, both of Ferrellgas
Partners, L.P., web site, www.ferrellgas.com
SOURCE Ferrellgas Partners, L.P.
Web site: http: //www.ferrellgas.com
CONTACT: Kenneth A. Heinz, Investor Relations, 816-792-6907, or Pam Blase, Media Relations, 816-792-7902, both of Ferrellgas Partners
