LIBERTY, Mo., Feb. 27 /PRNewswire/ -- Ferrellgas Partners, L.P.
(NYSE: FGP), the nation's largest retail marketer of propane, today reported a
27 percent increase in retail gallon sales and an 82 percent increase in net
earnings for the second quarter, as compared to the same period last year.
These results reflect the positive impact of colder winter temperatures and
acquisitions.
Second quarter retail propane sales were a record 399 million gallons, an
increase of 85 million gallons as compared to the second quarter of 2000.
These strong sales reflect national temperatures that were 19 percent colder
than the same quarter last year, and the additional gallons from the Thermogas
operations acquired in December 1999. Second quarter sales were offset by
customer conservation that resulted from higher product prices.
Operating expense for the quarter was $90.3 million, up from $69.3 million
in the second quarter of 2000, reflecting the full quarter impact of Thermogas
operations and increased retail gallon sales resulting from colder winter
temperatures.
"Our successful integration of acquisitions and renewed focus on operating
efficiencies have allowed us to benefit from the return of cold temperatures,"
said James E. Ferrell, Ferrellgas' Chairman and Chief Executive Officer. "We
will continue to execute our strategies throughout this winter heating season,
remaining sensitive to our customers during this time of high product costs."
General and administrative expenses for the quarter were $6.9 million, up
$1.0 million from the prior year. EBITDA (earnings before interest, taxes,
depreciation, amortization and other non-cash items) for the second quarter
was $128.2 million, an increase of $46.2 million from the same quarter last
year. Equipment lease and interest expenses increased for the quarter
primarily as a result of the Thermogas acquisition. Net earnings for the
quarter were $94.9 million, an increase from $52.2 million in the second
quarter of fiscal 2000.
For the six-month period ending January 31, 2001, colder national
temperatures and the addition of Thermogas operations generated an increase in
sales volumes to 599 million retail gallons, an increase of 132 million
gallons as compared to the same prior year period. Operating expense for the
six-month period was $155.5 million, a decrease of more than one cent per
gallon as compared to the same period last year primarily resulting from
operating efficiencies created with the Thermogas acquisition. General and
administrative expenses for the period were $11.6 million, an increase of
$0.5 million compared to the prior year period. These year-to-date results
generated EBITDA of $142.4 million, an increase of $49.1 million from the
prior year's six-month period. Equipment lease, depreciation, amortization
and interest expenses all increased primarily as a result of the Thermogas
acquisition. Net earnings for the six-month period were $77.4 million, or
$2.15 per share as compared to $38.0 million or $1.13 per share in the prior
year's six-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)
Unaudited Audited
ASSETS January 31, July 31,
2001 2000
Current Assets:
Cash and cash equivalents $34,938 $14,838
Accounts and notes receivable, net 162,113 89,801
Inventories 95,321 71,979
Prepaid expenses and other current assets 12,623 8,275
Total Current Assets 304,995 184,893
Property, plant and equipment, net 499,875 516,183
Intangible assets, net 244,673 256,476
Other assets, net 33,141 10,355
Total Assets $1,082,684 $967,907
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable $156,876 $95,264
Other current liabilities 81,654 77,631
Short-term borrowings 11,745 18,342
Total Current Liabilities 250,275 191,237
Long-term debt 724,153 718,118
Other liabilities 16,914 16,176
Minority interest 2,527 2,032
Partners' Capital:
Senior common unitholder (4,888,234
and 4,652,691 units outstanding at
January 2001 and July 2000, respectively
-- liquidation preference at $40 per unit) 191,439 179,786
Common unitholders (31,307,116 units
outstanding at both January 2001 and
July 2000) (45,017) (80,931)
General partner unitholder (316,233 units
outstanding at both January 2001 and
July 2000) (58,148) (58,511)
Accumulated other comprehensive income 541 -
Total Partners' Capital 88,815 40,344
Total Liabilities and Partners'
Capital $1,082,684 $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 SIX MONTHS ENDED JANUARY 31, 2001 AND 2000
(in thousands, except per unit data)
(Unaudited)
Three months ended Jan. 31 Six months ended Jan. 31
2001 2000 2001 2000
Revenues:
Gas liquids and
related product
sales $612,752 $316,025 $872,849 $457,532
Other 36,446 24,970 46,733 46,202
Total revenues 649,198 340,995 919,582 503,734
Cost of product
sold 415,048 178,028 593,291 263,353
Gross profit 234,150 162,967 326,291 240,381
Operating expense 90,345 69,341 155,488 126,518
Depreciation and
amortization
expense 13,947 13,916 27,978 25,999
General and
administrative
expense 6,910 5,960 11,627 11,143
Equipment lease
expense 8,661 5,586 16,768 9,439
Employee stock
ownership plan
compensation charge 1,125 1,026 2,194 2,053
Loss on disposal of
assets and other 1,983 33 3,154 129
Operating income 111,179 67,105 109,082 65,100
Interest expense (16,106) (14,697) (32,274) (27,278)
Interest income 882 351 1,439 609
Earnings before
minority interest 95,955 52,759 78,247 38,431
Minority
interest (A) 1,007 573 864 467
Net earnings 94,948 52,186 77,383 37,964
Paid in kind
distribution to
senior common
unitholder 4,769 2,140 9,422 2,140
Net earnings
available to
general partner 902 500 680 358
Net earnings
available to
common unitholders $89,277 $49,546 $67,281 $35,466
Net earnings per
common unit:
Net earnings per
common unit $2.85 $1.58 $2.15 $1.13
Weighted average
common units
outstanding 31,307.1 31,307.1 31,307.1 31,306.3
Supplemental Data:
Three months ended Jan. 31 Six months ended Jan. 31
2001 2000 2001 2000
Retail gallons 399,060 314,044 599,123 467,473
EBITDA (B) $128,234 $82,080 $142,408 $93,281
Net cash interest
expense (C) (15,465) (13,638) (30,688) (25,373)
Maintenance capital
expenditures (2,619) (3,660) (4,590) (5,950)
Distributable cash
flow 110,150 64,782 107,130 61,958
Less: General
partner 2,228 1,333 2,210 1,314
Distributable cash
flow to common
unitholders $107,922 $63,449 $104,920 $60,644
(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 charge and 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.
(C) 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.
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.
