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Ferrellgas Partners, L.P. (Form: 8-K)  

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

     
Date of Report (Date of Earliest Event Reported):   September 28, 2007

Ferrellgas Partners, L.P.
__________________________________________
(Exact name of registrant as specified in its charter)

     
Delaware 001-11331 43-1698480
_____________________
(State or other jurisdiction 		_____________
(Commission 		______________
(I.R.S. Employer
of incorporation) File Number) Identification No.)
      
7500 College Blvd., Suite 1000, Overland Park, Kansas   66210
_________________________________
(Address of principal executive offices) 		  ___________
(Zip Code)
     
Registrant’s telephone number, including area code:   913-661-1500

Not Applicable
______________________________________________
Former name or former address, if changed since last report

 

Ferrellgas Partners Finance Corp.
__________________________________________
(Exact name of registrant as specified in its charter)

     
Delaware 333-06693 43-1742520
_____________________
(State or other jurisdiction 		_____________
(Commission 		______________
(I.R.S. Employer
of incorporation) File Number) Identification No.)
      
7500 College Blvd., Suite 1000, Overland Park, Kansas   66210
_________________________________
(Address of principal executive offices) 		  ___________
(Zip Code)
     
Registrant’s telephone number, including area code:   913-661-1500

n/a
______________________________________________
Former name or former address, if changed since last report

 

Ferrellgas, L.P.
__________________________________________
(Exact name of registrant as specified in its charter)

     
Delaware 000-50182 43-1698481
_____________________
(State or other jurisdiction 		_____________
(Commission 		______________
(I.R.S. Employer
of incorporation) File Number) Identification No.)
      
7500 College Blvd., Suite 1000, Overland Park, Kansas   66210
_________________________________
(Address of principal executive offices) 		  ___________
(Zip Code)
     
Registrant’s telephone number, including area code:   913-661-1500

n/a
______________________________________________
Former name or former address, if changed since last report

 

Ferrellgas Finance Corp.
__________________________________________
(Exact name of registrant as specified in its charter)

     
Delaware 000-50183 14-1866671
_____________________
(State or other jurisdiction 		_____________
(Commission 		______________
(I.R.S. Employer
of incorporation) File Number) Identification No.)
      
7500 College Blvd., Suite 1000, Overland Park, Kansas   66210
_________________________________
(Address of principal executive offices) 		  ___________
(Zip Code)
     
Registrant’s telephone number, including area code:   913-661-1500

n/a
______________________________________________
Former name or former address, if changed since last report

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Top of the Form

Item 2.02 Results of Operations and Financial Condition.

The information included in Item 7.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.02 of this Current Report on Form 8-K.





Item 7.01 Regulation FD Disclosure.

On September 28, 2007, Ferrellgas Partners, L.P. issued a press release regarding its financial results for the fourth fiscal quarter and fiscal year ended July 31, 2007. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.





Item 9.01 Financial Statements and Exhibits.

Exhibit 99.1 — Press release of Ferrellgas Partners, L.P. dated September 28, 2007, reporting its financial results for the fourth fiscal quarter and fiscal year ended July 31, 2007.

Limitation on Materiality and Incorporation by Reference
The information in this Current Report on Form 8-K related to Items 2.02 and 7.01, including Exhibit 99.1 furnished herewith, is being furnished to the SEC pursuant to Item 2.02 and Item 7.01 of Form 8-K and is not deemed to be "filed" with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of Section 18. In addition, such information is not to be incorporated by reference into any registration statement of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P. or Ferrellgas Finance Corp. or other filings of such entities made pursuant to the Exchange Act or the Securities Act, unless specifically identified as being incorporated therein by reference.
The furnishing of particular inform ation in this Current Report, including Exhibit 99.1 furnished herewith, pursuant to Item 7.01 of Form 8-K is not intended to, and does not, constitute a determination or admission by Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P. or Ferrellgas Finance Corp. as to the materiality or completeness of any such information that is required to be disclosed soley by Regulation FD of the Exchange Act.





Top of the Form

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

         
    Ferrellgas Partners, L.P.
          
September 28, 2007   By:   /s/ Kevin T. Kelly
       
        Name: Kevin T. Kelly
        Title: Senior Vice President and Chief Financial Officer
         
    Ferrellgas Partners Finance Corp.
          
September 28, 2007   By:   /s/ Kevin T. Kelly
       
        Name: Kevin T. Kelly
        Title: Senior Vice President and Chief Financial Officer
         
    Ferrellgas, L.P.
          
September 28, 2007   By:   /s/ Kevin T. Kelly
       
        Name: Kevin T. Kelly
        Title: Senior Vice President and Chief Financial Officer
         
    Ferrellgas Finance Corp.
          
September 28, 2007   By:   /s/ Kevin T. Kelly
       
        Name: Kevin T. Kelly
        Title: Senior Vice President and Chief Financial Officer

Top of the Form

Exhibit Index


     
Exhibit No.   Description
 
99.1
  Press release of Ferrellgas Partners, L.P. dated September 28, 2007, reporting its financial results for the fourth fiscal quarter and fiscal year ended July 31, 2007
EX-99.1

For immediate release
Contact:

Ryan VanWinkle, Investor Relations, 913-661-1528

Scott Brockelmeyer, Media Relations, 913-661-1830

Ferrellgas Partners, L.P. Reports
Record Fiscal 2007 Results

Overland Park, KS (September 28, 2007)—Ferrellgas Partners, L.P. (NYSE:FGP), one of the nation’s largest propane distributors, today reported record results, including a nearly 40% increase in net earnings and a gain of nearly 10% in Adjusted EBITDA for the fiscal year ended July 31.

“We are pleased with our strong fourth quarter performance, achieving our earnings guidance for the fiscal year,” said Steve Wambold, President and Chief Operating Officer. “These anticipated, record financial results spotlight the significant contributions realized from investments made in our retail operating platform in recent years. We will continue to find opportunities to leverage our state-of-the-art logistics system, continuing the positive momentum we’ve generated over the last several years.”

Net earnings for the fiscal year rose to $34.8 million and Adjusted EBITDA grew by more than $21 million to a record $237.1 million, each as compared to the prior year results.

Gross profit for the fiscal year climbed to a record $688.0 million, a $24.2 million increase as compared to $663.8 million achieved in fiscal 2006, reflecting improved margins from improved customer visibility. Propane sales for the fiscal year were 805 million gallons, materially unchanged from the prior year sales volume on Nationwide temperatures that were 6% warmer than normal, while 6% cooler than in the prior fiscal year.

-more-

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Ferrellgas
Page 2 of 2

Operating and general and administrative expenses for the fiscal year were $380.8 million and $44.9 million, respectively, compared to $374.8 million and $47.7 million, respectively, while equipment lease expense was $26.1 million, down from $27.3 in fiscal 2006. Interest expense for the fiscal year was $88.0 million, up from $84.2 million in fiscal 2006.

Net earnings for the fiscal year was negatively impacted with the adoption by the Michigan legislature in July of a new Michigan Business Tax that replaced the state’s existing Single Business Tax. The financial impact of this change in taxation was an obligation of the partnership to record a $2.8 million non-cash charge to its earnings in the fourth quarter to establish a new state deferred income tax liability. Currently bills are being considered in the Michigan legislature that, if passed, would reverse much of this deferred income tax/non-cash impact to the partnership’s financial statements.

For the fourth quarter, propane sales volumes and gross profit were 123 million gallons and $123.0 million, respectively. Operating and general and administrative expenses were $93.6 million and $12.0 million, respectively. Interest expense and equipment lease expense were $21.7 million and $6.4 million, respectively. These results produced an expected Adjusted EBITDA of $10.8 million and a seasonal net loss of $38.6 million for the fourth fiscal quarter.

Ferrellgas Partners, L.P., through its operating partnership. Ferrellgas, L.P., serves more than one million customers in all 50 states, the District of Columbia and Puerto Rico. Ferrellgas employees indirectly own more than 20 million common units of the partnership through an employee stock ownership plan. More information about the partnership can be found online at www.ferrellgas.com.

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 results, performance and expectations to differ materially from anticipated results, performance and expectations. These risks, uncertainties and other factors are discussed in the Form 10-K of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P. and Ferrellgas Finance Corp. for the fiscal year end July 31, 2007, and other documents filed from time to time by these entities with the Securities and Exchange Commission.

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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
(unaudited)

                 
ASSETS   July 31, 2007   July 31, 2006
Current Assets:
                
Cash and cash equivalents
   $ 20,685   $ 16,525
Accounts and notes receivable, net
   118,320   116,369
Inventories
   113,807   154,613
Prepaid expenses and other current assets
   16,772   15,334
 
                
Total Current Assets
   269,584   302,841
Property, plant and equipment, net
   720,190   740,101
Goodwill
   249,481   246,050
Intangible assets, net
   246,283   248,546
Other assets, net
   17,865   11,962
 
                
Total Assets
   $ 1,503,403   $ 1,549,500
 
                
LIABILITIES AND PARTNERS’ CAPITAL
                
 
                
Current Liabilities:
                
Accounts payable
   $ 62,103   $ 82,212
Short term borrowings
   57,779   52,647
Other current liabilities (a)
   107,199   140,738
 
                
Total Current Liabilities
   227,081   275,597
Long-term debt (a)
   1,011,751   983,545
Other liabilities
   22,795   19,178
Contingencies and commitments
   —   —
Minority interest
   5,119   5,435
Partners’ Capital:
                
Common unitholders (62,957,674 and 60,885,784 units
                
outstanding at July 2007 and July 2006, respectively)
   289,075   321,194
General partner unitholder (635,936 and 615,008 units
                
outstanding at July 2007 and July 2006, respectively)
   (57,154 )   (56,829 )
Accumulated other comprehensive income
   4,736   1,380
 
                
Total Partners’ Capital
   236,657   265,745
 
                
Total Liabilities and Partners’ Capital
   $ 1,503,403   $ 1,549,500
 
                
(a) The principal difference between the Ferrellgas Partners, L.P. balance sheet and that of Ferrellgas,
L.P., is $268 million of 8 3/4% notes which are liabilities of Ferrellgas Partners, L.P. and not of
Ferrellgas, L.P.
                

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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND TWELVE MONTHS ENDED JULY 31, 2007 AND 2006
(in thousands, except per unit data)
(unaudited)

                                         
            Three months ended July 31,   Twelve months ended July 31
            2007   2006   2007   2006
Revenues:
                                        
Propane and other gas liquids sales
           $ 298,691     $ 297,309     $ 1,757,423     $ 1,697,940  
Other
             30,401       33,969       235,017       197,530  
 
                                        
Total revenues
             329,092       331,278       1,992,440       1,895,470  
Cost of product sold:
                                        
Propane and other gas liquids sales
             190,881       189,551       1,147,169       1,109,177  
Other
             15,184       20,662       157,223       122,450  
 
                                        
Gross profit
             123,027       121,065       688,048       663,843  
Operating expense
             93,614       92,949       380,838       374,843  
Depreciation and amortization expense
             21,447       21,089       87,383       84,953  
General and administrative expense
             11,993       12,896       44,870       47,689  
Equipment lease expense
             6,369       6,597       26,142       27,320  
Employee stock ownership plan compensation charge
             2,924       2,756       11,225       10,277  
Loss on disposal of assets and other
             1,230       2,021       10,822       7,539  
 
                                        
Operating income (loss)
             (14,550 )     (17,243 )     126,768       111,222  
Interest expense
             (21,710 )     (21,342 )     (87,953 )     (84,235 )
Interest income
             274       581       3,145       2,046  
 
                                        
Earnings (loss) before income taxes and minority interest
             (35,986 )     (38,004 )     41,960       29,033  
Income tax expense — current
             (25 )     406       3,461       2,862  
Income tax expense — deferred (g)
             2,951       147       3,099       662  
Minority interest (a)
             (333 )     (329 )     600       500  
 
                                        
Net earnings (loss)
             (38,579 )     (38,228 )     34,800       25,009  
Net earnings (loss) available to general partner
             (386 )     (382 )     348       250  
 
                                        
Net earnings (loss) available to common unitholders
           $ (38,193 )   $ (37,846 )   $ 34,452     $ 24,759  
 
                                        
Earnings Per Unit
                                        
 
                                        
Basic earnings (loss) per common unit available to common unitholders
   $ (0.61 )   $ (0.62 )   $ 0.55     $ 0.41  
 
                                
Weighted average common units outstanding
             62,956.4       60,795.4       62,755.8       60,459.5  
 
                                        

 Supplemental Data and Reconciliation of Non-GAAP Items:

                                 
    Three months ended July 31,   Twelve months ended July 31,
    2007   2006   2007   2006
Propane gallons
     123,165       127,005       804,732       808,890  
 
                                
Net earnings (loss)
   $ (38,579 )   $ (38,228 )   $ 34,800     $ 25,009  
Income tax expense
     2,926       553       6,560       3,524  
Interest expense
     21,710       21,342       87,953       84,235  
Depreciation and amortization expense
     21,447       21,089       87,383       84,953  
Interest income
     (274 )     (581 )     (3,145 )     (2,046 )
 
                                
EBITDA
     7,230       4,175       213,551       195,675  
Employee stock ownership plan compensation charge
     2,924       2,756       11,225       10,277  
Unit and stock-based compensation charge (b)
     (276 )     282       889       1,863  
Loss on disposal of assets and other
     1,230       2,021       10,822       7,539  
Minority interest
     (333 )     (329 )     600       500  
 
                                
Adjusted EBITDA (c)
     10,775       8,905       237,087       215,854  
Net cash interest expense (d)
     (22,297 )     (21,432 )     (88,878 )     (85,769 )
Maintenance capital expenditures (e)
     (3,190 )     (3,545 )     (16,935 )     (13,003 )
Cash paid for taxes
     (865 )     (381 )     (3,742 )     (990 )
 
                                
Distributable cash flow to equity investors (f)
   $ (15,577 )   $ (16,453 )   $ 127,532     $ 116,092  
 
                                
 
(a) Amounts allocated to the general partner for its 1.0101% interest in the operating partnership, Ferrellgas, L.P.
(b) Statement of Financial Accounting Standards (“SFAS”) No. 123( R), “Share-Based Payment” requires that the cost resulting from all
share-based payment transactions be recognized in the financial statements. Share-based payment transactions resulted in a non-cash
compensation charge of $(0.1) million and $0.1 million to operating expense, for the three months ended July 31, 2007 and 2006,
respectively, and $0.3 million and $0.4 million to operating expense for the twelve months ended July 31, 2007 and 2006, respectively.
A non-cash compensation charge of $(0.2) million and $0.2 million was recorded to general and administrative expense for the three
months ended July 31, 2007 and 2006, respectively, and $0.6 million and $1.5 million for the twelve months ended July 31, 2007 and
2006 respectively.
(c) Management considers Adjusted EBITDA to be a chief measurement of the partnership’s overall economic performance and return on
invested capital. Adjusted EBITDA is calculated as earnings before interest, income taxes, depreciation and amortization, employee
stock ownership plan compensation charge, unit and stock-based compensation charge, loss on disposal of assets and other, minority
interest, and other non-cash and non-operating charges. Management believes the presentation of this measure is relevant and useful
because it allows investors to view the partnership’s performance in a manner similar to the method management uses, adjusted for
items management believes are unusual or non-recurring, and makes it easier to compare its results with other companies that have
different financing and capital structures. In addition, management believes this measure is consistent with the manner in which the
partnership’s lenders and investors measure its overall performance and liquidity, including its ability to pay quarterly equity
distributions, service its long-term debt and other fixed obligations and fund its capital expenditures and working capital
requirements. This method of calculating Adjusted EBITDA may not be consistent with that of other companies and should be viewed in
conjunction with measurements that are computed in accordance with GAAP.
(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 facility.
(e) Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment.
(f) Management considers Distributable cash flow to equity investors a meaningful non-GAAP measure of the partnership’s ability to
declare and pay quarterly distributions to common unitholders. Distributable cash flow to equity investors, as management defines it,
may not be comparable to distributable cash flow or similarly titled measures used by other corporations and partnerships.
(g) On July 12, 2007, the Governor of the State of Michigan signed into law a new Michigan Business Tax (the “MBT Act”), which
provides a comprehensive restructuring of Michigan’s principal business tax regime. The main provision of the MBT Act imposes a new
two-part tax on business income and modified gross receipts that is accounted for as an income tax in accordance with SFAS No. 109
“Accounting for Income Taxes” (“SFAS 109”). Although the effective date of the MBT is January 1, 2008, SFAS 109 requires all effects
of a tax law change be accounted for in the period of the law’s enactment. As a result, during the fourth quarter of fiscal 2007,
Ferrellgas recognized a one time increase to its deferred tax expense of $2.8 million.

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