EX-99.1 2 a13-21233_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FERRELLGAS PARTNERS REPORTS RECORD

FOURTH QUARTER AND FISCAL 2013 RESULTS

 

OVERLAND PARK, KAN., September 26, 2013/PR Newswire/ — Ferrellgas Partners, L.P. (NYSE:FGP), one of the nation’s largest distributors of propane, today reported record Gross Profit, Adjusted EBITDA and Distributable Cash Flow to equity investors for fiscal 2013, as well as for the fiscal fourth quarter.  For both periods, gains were primarily driven by improved margins, increased propane sales volumes and operating efficiencies.

 

Adjusted EBITDA climbed 41% for the year to a record $272.2 million from $193.1 million the year before.  Distributable Cash Flow to equity investors nearly doubled to a record $183.1 million from $94.4 million, representing cash distribution coverage of 1.13x on all outstanding common units.

 

Gross profit for the year was up 15% to a record $738.8 million, with margins improving to $0.82 per gallon from $0.73 per gallon in fiscal 2012.  Propane gallon sales increased to 901.4 million from 878.1 million.  Net earnings totaled $55.9 million, or $0.71 per unit, versus a loss of $10.8 million, or $0.14 per unit, in fiscal 2012.

 

Fourth-quarter results basically mirrored the full year’s trends, as Adjusted EBITDA increased 44% to a record $26.0 million; Distributable Cash Flow was a record $2.8 million, versus a loss of $6.5 million in fiscal 2012; gross profit rose 8% to a record $140.4 million; and gross profit margins improved to $0.90 per gallon from $0.86 per gallon. Propane gallon sales rose 3.6% to 156.3 million.  The seasonal net loss was trimmed to $28.5 million, or $0.36 per unit, from $35.2 million, or $0.45 per unit, the year before.

 

Operating expense for the year rose 2.8% to $410.1 million on increased sales volumes.  Excluding performance-based incentives, on a cost-per-gallon basis, operations were slightly more efficient improving to $0.44 per gallon from $0.45 per gallon, in fiscal 2012.

 

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General and administrative expense for the year rose to $42.0 million from $37.1 million, but excluding performance-based incentives was down $2.4 million.  Equipment lease expense rose to $16.0 million from $14.6 million, in line with expectations.  Interest expense for the year decreased to $89.1 million from $93.3 million, reflecting lower rates.

 

President and CEO Steve Wambold pointed out, “We are proud to deliver these much improved, yet anticipated results to our investors with our fourth quarter performance marking our third record quarter in the last five.  While it is too early to provide specific guidance for the new fiscal year, we believe that fiscal 2013 demonstrated the impact that executing our strategy can make in a near-normal weather and commodity price environment.  Under similar conditions, we would expect to sustain a similar financial performance. Moreover, we hope that our growth strategy will allow us to build upon these results in the years to come.”

 

Wambold continued, “We will continue to stick to our game plan focusing on profitable growth through organic sales, marketing and acquisitions, while remaining diligent with regard to expense control.  We remain focused on propane acquisitions as well as diversified assets that make sense within our operations.  For example, our acquisition of Mr. Bar-B-Q this year provided measurable financial returns while opening new opportunities for our outdoor living and tank exchange operations.”

 

“Also contributing to our optimism are the steps Blue Rhino has taken to significantly improve its market-leading position with more than 46,000 selling locations,” Wambold added.  “Consolidating our Blue Rhino and traditional retail operations has resulted in cost savings and allowed for further cross-marketing of products to consumers.  Further, Blue Rhino mitigates the seasonality of our traditional retail propane business.”

 

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Ferrellgas Partners, L.P., through its operating partnership Ferrellgas L.P., serves customers in all 50 states, the District of Columbia and Puerto Rico.  Ferrellgas employees indirectly own more than 21 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 ended July 31, 2013, and other documents filed from time to time by these entities with the Securities and Exchange Commission.

 

 

Contact:

Tom Colvin, Investor Relations, (913) 661-1530

Scott Brockelmeyer, Media Relations, (913) 661-1830

 

# # #

 


 

FERRELLGAS PARTNERS, L.P.  AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE AND TWELVE MONTHS ENDED JULY 31, 2013 AND 2012

(in thousands, except per unit data)

(unaudited)

 

 

 

Three months ended

 

Twelve months ended

 

 

 

July 31

 

July 31

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

Propane and other gas liquids sales

 

$

312,504

 

$

310,515

 

$

1,739,267

 

$

2,160,945

 

Other

 

38,169

 

31,260

 

236,200

 

178,147

 

Total revenues

 

350,673

 

341,775

 

1,975,467

 

2,339,092

 

 

 

 

 

 

 

 

 

 

 

Cost of product sold:

 

 

 

 

 

 

 

 

 

Propane and other gas liquids sales

 

189,161

 

196,643

 

1,092,261

 

1,601,886

 

Other

 

21,108

 

15,112

 

144,456

 

95,323

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

140,404

 

130,020

 

738,750

 

641,883

 

 

 

 

 

 

 

 

 

 

 

Operating expense (including $126 and $626 of severance charges for the three and twelve months ended July 31, 2012, respectively)

 

100,838

 

100,006

 

410,059

 

398,980

 

Depreciation and amortization expense

 

20,822

 

21,002

 

83,344

 

83,841

 

General and administrative expense (including $166 and $429 of serverance charges for the three and twelve months ended July 31, 2012, respectively)

 

9,631

 

8,445

 

42,027

 

37,116

 

Equipment lease expense

 

4,135

 

3,802

 

15,983

 

14,648

 

Non-cash employee stock ownership plan compensation charge

 

3,096

 

2,721

 

15,769

 

9,440

 

Non-cash stock and unit-based compensation charge (a)

 

5,111

 

3,976

 

13,545

 

8,843

 

Loss on disposal of assets

 

4,693

 

3,983

 

10,421

 

6,035

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(7,922

)

(13,915

)

147,602

 

82,980

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(22,007

)

(22,350

)

(89,145

)

(93,254

)

Other income, net

 

48

 

258

 

565

 

506

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) before income taxes

 

(29,881

)

(36,007

)

59,022

 

(9,768

)

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

(821

)

(157

)

1,855

 

1,128

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

(29,060

)

(35,850

)

57,167

 

(10,896

)

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to noncontrolling interest (b)

 

(256

)

(321

)

741

 

56

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Ferrellgas Partners, L.P.

 

(28,804

)

(35,529

)

56,426

 

(10,952

)

 

 

 

 

 

 

 

 

 

 

Less: General partner’s interest in net earnings (loss)

 

(288

)

(356

)

564

 

(110

)

 

 

 

 

 

 

 

 

 

 

Common unitholders’ interest in net earnings (loss)

 

$

(28,516

)

$

(35,173

)

$

55,862

 

$

(10,842

)

 

 

 

 

 

 

 

 

 

 

Earnings (loss) Per Unit

 

 

 

 

 

 

 

 

 

Basic and diluted net earnings (loss) per common unitholders’ interest

 

$

(0.36

)

$

(0.45

)

$

0.71

 

$

(0.14

)

 

 

 

 

 

 

 

 

 

 

Weighted average common units outstanding

 

79,071.8

 

78,992.0

 

79,038.6

 

77,572.4

 

 


 

Supplemental Data and Reconciliation of Non-GAAP Items:

 

 

 

Three months ended

 

Twelve months ended

 

 

 

July 31

 

July 31

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Ferrellgas Partners, L.P.

 

$

(28,804

)

$

(35,529

)

$

56,426

 

$

(10,952

)

Income tax expense (benefit)

 

(821

)

(157

)

1,855

 

1,128

 

Interest expense

 

22,007

 

22,350

 

89,145

 

93,254

 

Depreciation and amortization expense

 

20,822

 

21,002

 

83,344

 

83,841

 

EBITDA

 

13,204

 

7,666

 

230,770

 

167,271

 

Non-cash employee stock ownership plan compensation charge

 

3,096

 

2,721

 

15,769

 

9,440

 

Non-cash stock and unit-based compensation charge (a)

 

5,111

 

3,976

 

13,545

 

8,843

 

Loss on disposal of assets

 

4,693

 

3,983

 

10,421

 

6,035

 

Other income, net

 

(48

)

(258

)

(565

)

(506

)

Severance costs

 

—

 

292

 

—

 

1,055

 

Nonrecurring litigation reserve and related legal fees

 

230

 

—

 

1,568

 

892

 

Net earnings (loss) attributable to noncontrolling interest

 

(256

)

(321

)

741

 

56

 

Adjusted EBITDA (c)

 

26,030

 

18,059

 

272,249

 

193,086

 

Net cash interest expense (d)

 

(20,666

)

(20,827

)

(83,495

)

(87,600

)

Maintenance capital expenditures (e)

 

(4,074

)

(4,526

)

(15,070

)

(16,044

)

Cash paid for taxes

 

(462

)

(664

)

(550

)

(764

)

Proceeds from asset sales

 

1,967

 

1,428

 

9,980

 

5,742

 

Distributable cash flow to equity investors (f)

 

$

2,795

 

$

(6,530

)

$

183,114

 

$

94,420

 

 

 

 

 

 

 

 

 

 

 

Propane gallons sales

 

 

 

 

 

 

 

 

 

Retail - Sales to End Users

 

95,235

 

95,031

 

637,923

 

619,318

 

Wholesale - Sales to Resellers

 

61,051

 

55,841

 

263,447

 

258,812

 

Total propane gallons sales

 

156,286

 

150,872

 

901,370

 

878,130

 

 

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

 

 

 

Three months ended

 

Twelve months ended

 

 

 

July 31

 

July 31

 

 

 

2013

 

2012

 

2013

 

2012

 

Operating expense

 

$

665

 

$

795

 

$

2,391

 

$

2,747

 

General and administrative expense

 

4,446

 

3,181

 

11,154

 

6,096

 

Total

 

$

5,111

 

$

3,976

 

$

13,545

 

$

8,843

 

 

(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 earnings (loss) attributable to Ferrellgas Partners, L.P.  before income tax expense(benefit), interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, non-cash stock and unit-based compensation charge, loss on disposal of assets, other income, net, severance costs, nonrecurring litigation reserve and related legal fees and net earnings (loss) attributable to noncontrolling 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, 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 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.

 


 

FERRELLGAS PARTNERS, L.P.  AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)

 

 

 

July 31, 2013

 

July 31, 2012

 

ASSETS

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

6,464

 

$

8,429

 

Accounts and notes receivable, net (including $130,025 and $121,812 of accounts receivable pledged as collateral at July 31, 2013 and July 31, 2012, respectively)

 

131,791

 

124,004

 

Inventories

 

117,116

 

127,598

 

Prepaid expenses and other current assets

 

25,608

 

29,315

 

Total Current Assets

 

280,979

 

289,346

 

 

 

 

 

 

 

Property, plant and equipment, net

 

589,727

 

626,551

 

Goodwill

 

253,362

 

248,944

 

Intangible assets, net

 

189,516

 

189,118

 

Other assets, net

 

42,444

 

43,320

 

Total Assets

 

$

1,356,028

 

$

1,397,279

 

 

 

 

 

 

 

LIABILITIES AND PARTNERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

49,128

 

$

47,824

 

Short-term borrowings

 

50,054

 

95,730

 

Collateralized note payable

 

82,000

 

74,000

 

Other current liabilities

 

121,102

 

122,667

 

Total Current Liabilities

 

302,284

 

340,221

 

 

 

 

 

 

 

Long-term debt (a)

 

1,106,940

 

1,059,085

 

Other liabilities

 

33,431

 

25,499

 

Contingencies and commitments

 

—

 

—

 

 

 

 

 

 

 

Partners’ Deficit:

 

 

 

 

 

Common unitholders (79,072,819 and 79,006,619 units outstanding at July 31, 2013 and July 31, 2012, respectively)

 

(28,931

)

43,701

 

General partner unitholder (798,715 and 798,047 units outstanding at July 31, 2013 and July 31, 2012, respectively)

 

(60,362

)

(59,630

)

Accumulated other comprehensive income (loss)

 

1,697

 

(13,159

)

Total Ferrellgas Partners, L.P. Partners’ Deficit

 

(87,596

)

(29,088

)

Noncontrolling Interest

 

969

 

1,562

 

Total Partners’ Deficit

 

(86,627

)

(27,526

)

Total Liabilities and Partners’ Deficit

 

$

1,356,028

 

$

1,397,279

 

 

(a)         The principal difference between the Ferrellgas Partners, L.P. balance sheet and that of Ferrellgas, L.P., is $182 million of 8.625% notes which are liabilities of Ferrellgas Partners, L.P. and not of Ferrellgas, L.P.