EX-99.1 4 a15-13180_5ex99d1.htm EX-99.1

Exhibit 99.1

 

Financial results for the nine months ended April 30, 2015 (unaudited)

 

Ferrellgas Partners, L.P.’s consolidated financial statements for the nine months ended April 30, 2015 are not yet available to be filed with the SEC.  Our current expectations with respect to our unaudited results for this period are based upon management estimates.  The preliminary estimates presented below are subject to the completion of our financial closing procedures.  Accordingly, these estimates may change and those changes may be material.  You should not place undue reliance on these estimates.  For additional information regarding the various risks and uncertainties inherent in estimates of this type, see “Forward-looking statements” elsewhere in this prospectus supplement.  We do not expect to file our consolidated financial statements and related notes as of and for the nine months ended April 30, 2015 with the SEC until our next quarterly report on Form 10-Q.

 

The preliminary estimates have been prepared by, and are the responsibility of, our management and have not been reviewed or audited or subject to any other procedures by our independent registered public accounting firm.  Accordingly, our independent registered public accounting firm does not express an opinion or any other form of assurance with respect to these preliminary estimates.

 

We are providing the following preliminary estimates of our financial results and operating metrics for the nine months ended April 30, 2015:

 

 

 

Nine months ended

 

 

 

April 30,

 

(in thousands, except per unit data)

 

2015

 

2014

 

Revenues:

 

 

 

 

 

Propane and other gas liquids sales

 

$

1,400,895

 

$

1,796,786

 

Other

 

240,984

 

210,044

 

Total revenues

 

1,641,879

 

2,006,830

 

Cost of product sold:

 

 

 

 

 

Propane and other gas liquids sales

 

849,190

 

1,232,516

 

Other

 

153,736

 

131,443

 

Gross profit

 

638,953

 

642,871

 

Operating expense

 

316,913

 

333,632

 

Depreciation and amortization expense

 

70,576

 

61,771

 

General and administrative expense

 

29,701

 

35,070

 

Equipment lease expense

 

17,674

 

12,978

 

Non-cash employee stock ownership plan compensation charge

 

16,728

 

10,389

 

Non-cash stock-based compensation charge (a)

 

19,701

 

16,182

 

Loss on disposal of assets

 

4,578

 

3,426

 

Operating income

 

163,082

 

169,423

 

Interest expense

 

(71,797

)

(64,372

)

Loss on extinguishment of debt

 

 

(21,202

)

Other income (expense), net

 

(415

)

498

 

Earnings before income taxes

 

90,870

 

84,347

 

Income tax expense

 

1,448

 

2,391

 

Net earnings

 

89,422

 

81,956

 

Net earnings attributable to noncontrolling interest (b)

 

1,027

 

950

 

Net earnings attributable to Ferrellgas Partners, L.P.

 

88,395

 

81,006

 

Less: General partner’s interest in net earnings

 

884

 

810

 

Common unitholders’ interest in net earnings

 

$

87,511

 

$

80,196

 

Earnings Per Unit:

 

 

 

 

 

Basic and diluted net earnings per common unitholders’ interest

 

$

1.06

 

$

1.01

 

Weighted average common units outstanding

 

82,536.1

 

79,127.1

 

 



 

Supplemental Data and Reconciliation of Non-GAAP Items:

 

 

 

Nine months ended

 

 

 

April 30,

 

(in thousands, except per unit data)

 

2015

 

2014

 

Net earnings attributable to Ferrellgas Partners, L.P.

 

$

88,395

 

$

81,006

 

Income tax expense

 

1,448

 

2,391

 

Interest expense

 

71,797

 

64,372

 

Depreciation and amortization expense

 

70,576

 

61,771

 

EBITDA

 

232,216

 

209,540

 

Loss on extinguishment of debt

 

 

21,202

 

Non-cash employee stock ownership plan compensation charge

 

16,728

 

10,389

 

Non-cash stock-based compensation charge (a)

 

19,701

 

16,182

 

Loss on disposal of assets

 

4,578

 

3,426

 

Other income (expense), net

 

415

 

(498

)

Change in fair value of contingent consideration (included in operating expense)

 

(6,300

)

 

Litigation accrual and related legal fees associated with a class action lawsuit (included in operating expense)

 

806

 

1,422

 

Unrealized (non-cash) gain on changes in fair value of non-hedged derivatives

 

(1,609

)

 

Net earnings attributable to noncontrolling interest (b)

 

1,027

 

950

 

Adjusted EBITDA (c)

 

267,562

 

262,613

 

Net cash interest expense (d)

 

(68,599

)

(61,507

)

Maintenance capital expenditures (e)

 

(14,863

)

(13,345

)

Cash paid for taxes

 

(333

)

(403

)

Proceeds from asset sales

 

4,060

 

3,267

 

Distributable cash flow to equity investors (f)

 

187,827

 

190,625

 

Distributable cash flow attributable to general partner and non-controlling interest

 

3,757

 

3,813

 

Distributable cash flow attributable to common unitholders

 

184,070

 

186,812

 

Less: Distributions paid to common unitholders

 

124,074

 

118,702

 

Distributable cash flow excess/(shortage)

 

$

59,996

 

$

68,110

 

Propane gallons sales

 

 

 

 

 

Retail - Sales to End Users

 

518,726

 

558,142

 

Wholesale - Sales to Resellers

 

211,068

 

233,664

 

Total propane gallons sales

 

729,794

 

791,806

 

Midstream operations (barrels processed)

 

13,234

 

 

 


(a)                     Non-cash stock-based compensation charges consist of the following:

 

 

 

Nine months ended

 

 

 

April 30,

 

 

 

2015

 

2014

 

Operating expense

 

$

4,233

 

$

3,503

 

General and administrative expense

 

15,468

 

12,679

 

Total

 

$

19,701

 

$

16,182

 

 

(b)                     Amounts allocated to the general partner for its 1.0101% interest in the operating partnership, Ferrellgas, L.P.

(c)                      Adjusted EBITDA is calculated as net earnings attributable to Ferrellgas Partners, L.P., income tax expense, interest expense, depreciation and amortization expense, loss on extinguishment of debt, non-cash employee stock ownership plan compensation charge, non-cash stock-based compensation charge, loss on disposal of assets, other income (expense), net, change in fair value of contingent consideration, litigation accrual and related legal fees associated with a class action lawsuit and unrealized (non-cash) gain on changes in fair value of non-hedged derivatives and net earnings attributable to non-controlling interest. 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 makes it easier to compare its results with other companies that have different financing and capital structures. 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 other income (expense), net. This amount 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 equity investors. Distributable cash flow to

 



 

equity investors, as management defines it, may not be comparable to distributable cash flow to equity investors or similarly titled measurements used by other corporations and partnerships. Items added into our calculation of distributable cash flow to equity investors that will not occur on a continuing basis may have associated cash payments. Distributable cash flow to equity investors may not be consistent with that of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP.