LIBERTY, Mo., Nov. 27 /PRNewswire/ -- Ferrellgas Partners, L.P.
(NYSE: FGP), one of the nation's largest retail marketers of propane, today
reported a 4 percent increase in EBITDA for the first quarter of fiscal 2002,
as compared to the same period last year. The first quarter covers the three-
month period ended October 31, 2001.
Despite the effects of the slowing economy, first quarter gross profit
increased 3 percent to $95.3 million, primarily due to improved retail
margins. First quarter retail propane sales were 190 million gallons, off
slightly as compared to the first quarter of fiscal 2001.
Operating expenses for the quarter were $67.1 million, up slightly from
$65.1 million in the first quarter of 2001. General and administrative
expenses increased to $6.8 million from $4.7 million last year, which were
consistent with recent quarters. Equipment lease expense decreased to
$6.5 million from $8.1 million due to the lower interest rate environment.
The resulting EBITDA, which represents earnings before interest, taxes,
depreciation, amortization and other non-cash charges, increased 4 percent to
$14.8 million from $14.2 million as compared to the same period last year.
"I am pleased with our first quarter performance following our record
earnings in fiscal year 2001," said James E. Ferrell, Chairman and Chief
Executive Officer. "Our performance during the slowing economy is an
indication that our employees remain focused and well prepared to take on the
challenges of the approaching winter season."
The propane business is seasonal with peak activity during the winter
months. First quarter results typically represent about 20 percent of annual
sales volume and 10 percent of EBITDA. The partnership historically
experiences a net loss during the first quarter because certain fixed costs
exceed the off-season cash flow. Fixed costs include depreciation and
amortization, equipment leases and interest. The resulting net earnings for
the first quarter reflect a seasonal loss of $13.5 million, which is an
improvement from a $17.6 million net loss in the same quarter of fiscal 2001.
This improvement reflects the implementation of the accounting pronouncement
SFAS No. 142, which reduced goodwill amortization by $2.7 million for the
quarter.
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 annual report on Form 10-K for fiscal 2001 dated July 31,
2001, as filed with the Securities and Exchange Commission on October 25,
2001, 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, 2001 July 31, 2001
Current Assets:
Cash and cash equivalents $19,367 $25,386
Accounts and notes receivable, net 66,814 56,772
Inventories 79,380 65,284
Prepaid expenses and other current
assets 16,588 10,504
Total Current Assets 182,149 157,946
Property, plant and equipment, net 489,389 491,194
Goodwill, net (A) 124,190 124,190
Intangible assets, net (A) 104,261 108,526
Other assets, net (A) 14,473 14,303
Total Assets $914,462 $896,159
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable $102,969 $58,274
Other current liabilities 62,174 77,610
Short-term borrowings 458 -
Total Current Liabilities 165,601 135,884
Long-term debt (B) 727,815 704,782
Other liabilities 14,550 15,472
Contingencies and commitments - -
Minority interest 1,735 2,034
Partners' Capital:
Senior unitholder (2,801,622 units
outstanding at October 2001 and July 2001,
respectively - liquidation preference at
$40 per unit) 112,065 112,065
Common unitholders (35,939,466 and
35,908,366 units outstanding
at October 2001 and July 2001,
respectively) (45,221) (12,959)
General partner unitholder (363,025
and 362,711 units outstanding
at October 2001 and July 2001,
respectively) (59,124) (58,738)
Accumulated other comprehensive
income (2,959) (2,381)
Total Partners' Capital 4,761 37,987
Total Liabilities and Partners'
Capital $914,462 $896,159
(A) In accordance with the FASB's SFAS No. 142, Ferrellgas now
separately reports goodwill that was formerly
reported in Intangible assets, net and Other assets, net.
(B) 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, 2001 AND 2000
(in thousands, except per unit data)
(Unaudited)
Three months ended October 31
2001 2000
Revenues:
Gas liquids and related product
sales (A) $224,285 $264,558
Other (A) 20,958 23,903
Total revenues 245,243 288,461
Cost of product sold (A) 149,947 196,320
Gross profit 95,296 92,141
Operating expense 67,127 65,143
Depreciation and amortization expense
(B) 11,454 14,031
General and administrative expense 6,825 4,717
Equipment lease expense 6,545 8,107
Employee stock ownership plan
compensation charge 1,309 1,069
Loss on disposal of assets and other 847 1,171
Operating income (loss) 1,189 (2,097)
Interest expense (15,103) (16,168)
Interest income 326 557
Other charges (C) (11) -
Loss before minority interest (13,599) (17,708)
Minority interest (D) (97) (143)
Net loss (13,502) (17,565)
Distribution to senior unitholder 2,802 4,653
Net loss available to general partner (163) (222)
Net loss available to common
unitholders $(16,141) $(21,996)
Net loss per common unit:
Net loss per common unit $(0.45) $(0.70)
Weighted average common units
outstanding 35,919.0 31,307.1
Supplemental Data:
Three months ended October 31
2001 2000
Retail gallons 189,911 200,063
EBITDA (E) $14,799 $14,174
Net cash interest expense (F) (14,612) (15,024)
Maintenance capital expenditures and
other charges (C) (4,712) (1,971)
Accrued and paid cash distribution
to senior unitholder (2,802) -
Accrued and paid cash distribution
to general partner (57) -
Distributable cash flow (7,384) (2,821)
Less: General partner (109) (22)
Distributable cash flow to common
unitholders $(7,275) $(2,799)
(A) In accordance with the FASB's EITF 99-19, certain amounts reported
net in Other revenue included in the three months
ended October 31 of fiscal 2001 consolidated statement of earnings
have been reclassified as gross Revenues and
Cost of product sold to conform to the three months ended of
fiscal 2002 presentation.
(B) In accordance with the FASB's SFAS No. 142, fiscal 2002 amount does
not include amortization of goodwill.
Fiscal 2001 includes $2,675 of goodwill amortization.
(C) Amount relates to amortization of expenses incurred for the
modification of the terms of senior units and common units
on April 6, 2001.
(D) Amounts allocated to the general partner for its 1.0101% interest in
the operating partnership, Ferrellgas, L.P.
(E) 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.
(F) 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, +1-816-792-7998, or Scott
Brockelmeyer, Media Relations, +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: Ryan VanWinkle, Investor Relations, +1-816-792-7998, or Scott Brockelmeyer, Media Relations, +1-816-792-7837, both of Ferrellgas Partners, L.P.
