- Financial Highlights
- Gross Profit for the fourth fiscal quarter and fiscal 2023 increased
$9.6 million , or 5%, and$79.2 million , or 9%, respectively, compared to the prior year periods. - Margin per gallon for the fourth fiscal quarter and fiscal 2023 increased 10% and 12%, respectively, compared to the prior year periods.
- Net loss attributable to
Ferrellgas Partners, L.P. was$29.1 million for the fourth fiscal quarter compared to a net loss of$19.4 million in the prior year period. Net earnings attributable toFerrellgas Partners, L.P. was$136.9 million and$148.0 million for fiscal 2023 and 2022, respectively. - Adjusted EBITDA for the fourth fiscal quarter decreased by
$5.2 million , or 15%, compared to the prior year period. For fiscal 2023, Adjusted EBITDA increased by$20.1 million , or 6%, compared to fiscal 2022.
- Gross Profit for the fourth fiscal quarter and fiscal 2023 increased
- Company Highlights
- On
July 31, 2023 ,Ferrellgas announced the appointment ofTamria Zertuche as President and CEO, effectiveAugust 1, 2023 . Ferrellgas celebrated the 25th anniversary of its Employee Stock Ownership Plan (ESOP).Ferrellgas honored drivers who had a perfect non-incident year with Incident Free Safety Awards. Additionally, 208 employees received Ferrellgas Flame Awards andBlue Rhino recognized three Golden Rhino Award recipients in the fourth fiscal quarter.
- On
“We are honored to have the very best professional drivers in the industry, and this year we celebrated hundreds of our drivers with an Incident Free Safety Award they will proudly display on their vehicles,” said
Gross profit increased
We recognized a net loss attributable to
Fourth fiscal quarter results were impacted by an increase of
The
Adjusted EBITDA, a non-GAAP financial measure, decreased by
Adjusted EBITDA increased
On
On
The Company had more than 200 nominations for Ferrellgas Flame awards during the fourth fiscal quarter, including 27 in Safety, 87 in Customer Service, 20 in Innovation, and 74 in Leadership. This employee recognition program is yet another way
On
About
Forward-Looking Statements
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 include those discussed in the Form 10-K of
Contacts
Investor Relations – InvestorRelations@ferrellgas.com
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(in thousands, except unit data) | |||||||||
(unaudited) | |||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents (including and 2022, respectively) | $ | 137,347 | $ | 158,737 | |||||
Accounts and notes receivable, net | 159,379 | 150,395 | |||||||
Inventories | 98,104 | 115,187 | |||||||
Price risk management asset | 11,966 | 43,015 | |||||||
Prepaid expenses and other current assets | 29,135 | 30,764 | |||||||
Total current assets | 435,931 | 498,098 | |||||||
Property, plant and equipment, net | 615,174 | 603,148 | |||||||
257,006 | 257,099 | ||||||||
Intangible assets (net of accumulated amortization of 2022, respectively) | 106,615 | 97,638 | |||||||
Operating lease right-of-use assets | 57,839 | 72,888 | |||||||
Other assets, net | 58,838 | 79,244 | |||||||
Total assets | $ | 1,531,403 | $ | 1,608,115 | |||||
LIABILITIES, MEZZANINE AND EQUITY (DEFICIT) | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 35,115 | $ | 57,586 | |||||
Current portion of long-term debt | 2,597 | 1,792 | |||||||
Current operating lease liabilities | 24,600 | 25,824 | |||||||
Other current liabilities | 197,030 | 218,610 | |||||||
Total current liabilities | 259,342 | 303,812 | |||||||
Long-term debt | 1,456,184 | 1,450,016 | |||||||
Operating lease liabilities | 34,235 | 47,231 | |||||||
Other liabilities | 29,084 | 43,518 | |||||||
Contingencies and commitments | |||||||||
Mezzanine equity: | |||||||||
Senior preferred units, net of issue discount and other offering costs (700,000 units outstanding at | 651,349 | 651,349 | |||||||
Equity (Deficit): | |||||||||
Limited partner unitholders | |||||||||
Class A (4,857,605 units outstanding at | (1,205,103 | ) | (1,229,823 | ) | |||||
Class B (1,300,000 units outstanding at | 383,012 | 383,012 | |||||||
General partner unitholder (49,496 units outstanding at | (70,566 | ) | (71,320 | ) | |||||
Accumulated other comprehensive income | 1,059 | 37,907 | |||||||
(891,598 | ) | (880,224 | ) | ||||||
Noncontrolling interest | (7,193 | ) | (7,587 | ) | |||||
Total deficit | (898,791 | ) | (887,811 | ) | |||||
Total liabilities, mezzanine and deficit | $ | 1,531,403 | $ | 1,608,115 | |||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(in thousands, except per unit data) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||
Revenues: | ||||||||||||||||||
Propane and other gas liquids sales | $ | 320,115 | $ | 365,460 | $ | 1,916,892 | $ | 2,017,879 | ||||||||||
Other | 21,771 | 22,093 | 109,573 | 96,661 | ||||||||||||||
Total revenues | 341,886 | 387,553 | 2,026,465 | 2,114,540 | ||||||||||||||
Cost of sales: | ||||||||||||||||||
Propane and other gas liquids sales | 150,958 | 207,295 | 1,003,357 | 1,174,004 | ||||||||||||||
Other | 3,221 | 2,166 | 15,913 | 12,509 | ||||||||||||||
Gross profit | 187,707 | 178,092 | 1,007,195 | 928,027 | ||||||||||||||
Operating expense - personnel, vehicle, plant & other | 142,948 | 128,185 | 577,520 | 520,603 | ||||||||||||||
Operating expense - equipment lease expense | 5,781 | 5,607 | 23,252 | 23,094 | ||||||||||||||
Depreciation and amortization expense | 23,917 | 24,591 | 93,370 | 89,897 | ||||||||||||||
General and administrative expense | 16,577 | 13,459 | 70,738 | 52,780 | ||||||||||||||
Non-cash employee stock ownership plan compensation charge | 723 | 734 | 2,935 | 3,170 | ||||||||||||||
Loss (gain) on asset sales and disposals | 2,763 | (52 | ) | 5,691 | (6,618 | ) | ||||||||||||
Operating (loss) income | (5,002 | ) | 5,568 | 233,689 | 245,101 | |||||||||||||
Interest expense | (25,229 | ) | (25,594 | ) | (97,712 | ) | (100,093 | ) | ||||||||||
Other income, net | 760 | 427 | 2,625 | 4,833 | ||||||||||||||
(Loss) earnings before income tax expense | (29,471 | ) | (19,599 | ) | 138,602 | 149,841 | ||||||||||||
Income tax expense | 93 | 156 | 981 | 981 | ||||||||||||||
Net (loss) earnings | (29,564 | ) | (19,755 | ) | 137,621 | 148,860 | ||||||||||||
Net (loss) earnings attributable to noncontrolling interest (1) | (463 | ) | (363 | ) | 740 | 867 | ||||||||||||
Net (loss) earnings attributable to | $ | (29,101 | ) | $ | (19,392 | ) | $ | 136,881 | $ | 147,993 | ||||||||
Class A unitholders' interest in net (loss) earnings | $ | (45,060 | ) | $ | (83,283 | ) | $ | 10,171 | $ | (18,770 | ) | |||||||
Net (loss) earnings per unitholders' interest | ||||||||||||||||||
Basic and diluted net (loss) earnings per Class A Unit | $ | (9.28 | ) | $ | (17.14 | ) | $ | 2.09 | $ | (3.86 | ) | |||||||
Weighted average Class A Units outstanding - basic and diluted | 4,858 | 4,858 | 4,858 | 4,858 | ||||||||||||||
(1) | Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, | |||||||||||||||||
Supplemental Data and Reconciliation of Non-GAAP Items: | ||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||
| ||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||
Net (loss) earnings attributable to | $ | (29,101 | ) | $ | (19,392 | ) | $ | 136,881 | $ | 147,993 | ||||||||
Income tax expense | 93 | 156 | 981 | 981 | ||||||||||||||
Interest expense | 25,229 | 25,594 | 97,712 | 100,093 | ||||||||||||||
Depreciation and amortization expense | 23,917 | 24,591 | 93,370 | 89,897 | ||||||||||||||
EBITDA | 20,138 | 30,949 | 328,944 | 338,964 | ||||||||||||||
Non-cash employee stock ownership plan compensation charge | 723 | 734 | 2,935 | 3,170 | ||||||||||||||
Loss (gain) loss on asset sales and disposal | 2,763 | (52 | ) | 5,691 | (6,618 | ) | ||||||||||||
Other income, net | (760 | ) | (427 | ) | (2,625 | ) | (4,833 | ) | ||||||||||
Severance costs includes and administrative expense for the year ended | — | 32 | 644 | 578 | ||||||||||||||
Legal fees and settlements related to non-core businesses | 4,477 | 3,303 | 21,751 | 7,938 | ||||||||||||||
Business transformation costs (1) | 2,088 | — | 2,088 | — | ||||||||||||||
Net (loss) earnings attributable to noncontrolling interest (2) | (463 | ) | (363 | ) | 740 | 867 | ||||||||||||
Adjusted EBITDA (3) | 28,966 | 34,176 | 360,168 | 340,066 | ||||||||||||||
Net cash interest expense (4) | (22,398 | ) | (26,973 | ) | (86,695 | ) | (99,366 | ) | ||||||||||
Maintenance capital expenditures (5) | (4,754 | ) | (3,903 | ) | (20,169 | ) | (17,019 | ) | ||||||||||
Cash paid for income taxes | (379 | ) | (368 | ) | (1,092 | ) | (1,018 | ) | ||||||||||
Proceeds from certain asset sales | 73 | 745 | 2,152 | 4,113 | ||||||||||||||
Distributable cash flow attributable to equity investors (6) | 1,508 | 3,677 | 254,364 | 226,776 | ||||||||||||||
Less: Distributions accrued or paid to preferred unitholders | 16,251 | 16,250 | 64,314 | 65,287 | ||||||||||||||
Distributable cash flow attributable to general partner and non-controlling interest | (31 | ) | (74 | ) | (5,087 | ) | (4,536 | ) | ||||||||||
Distributable cash flow attributable to Class A and B Unitholders (7) | (14,774 | ) | (12,647 | ) | 184,963 | 156,953 | ||||||||||||
Less: Distributions paid to Class A and B Unitholders (8) | — | 49,998 | 49,998 | 99,996 | ||||||||||||||
Distributable cash flow (shortage) excess (9) | $ | (14,774 | ) | $ | (62,645 | ) | $ | 134,965 | $ | 56,957 | ||||||||
Propane gallons sales | ||||||||||||||||||
Retail - Sales to End Users | 87,148 | 94,432 | 602,143 | 624,316 | ||||||||||||||
Wholesale - Sales to Resellers | 50,061 | 47,561 | 205,890 | 206,516 | ||||||||||||||
Total propane gallons sales | 137,209 | 141,993 | 808,033 | 830,832 | ||||||||||||||
(1) | Non-recurring costs included in “Operating, general and administrative expense” primarily related to the implementation of an ERP system as part of our business transformation initiatives. | |||||||||||||||||
(2) | Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, | |||||||||||||||||
(3) | Adjusted EBITDA is calculated as net (loss) earnings attributable to | |||||||||||||||||
(4) | Net cash interest expense is the sum of interest expense less non-cash interest expense and other income, net. | |||||||||||||||||
(5) | Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment, and may from time to time include the purchase of assets that are typically leased. | |||||||||||||||||
(6) | Distributable cash flow attributable to equity investors is calculated as Adjusted EBITDA minus net cash interest expense, maintenance capital expenditures and cash paid for income taxes plus proceeds from certain asset sales. Management considers distributable cash flow attributable to equity investors a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to equity investors, including holders of the operating partnership’s Preferred Units. Distributable cash flow attributable to equity investors, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow attributable to equity investors that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to equity investors should be viewed in conjunction with measurements that are computed in accordance with GAAP. | |||||||||||||||||
(7) | Distributable cash flow attributable to Class A and B Unitholders is calculated as Distributable cash flow attributable to equity investors minus distributions accrued or paid on the Preferred Units and distributable cash flow attributable to general partner and noncontrolling interest. Management considers distributable cash flow attributable to Class A and B Unitholders a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to Class A and B Unitholders. Distributable cash flow attributable to Class A and B Unitholders, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added to our calculation of distributable cash flow attributable to Class A and B Unitholders that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to Class A and B Unitholders should be viewed in conjunction with measurements that are computed in accordance with GAAP. | |||||||||||||||||
(8) | The Company did not pay any distributions to Class A Unitholders during any of the periods in fiscal 2023 or fiscal 2022. | |||||||||||||||||
(9) | Distributable cash flow (shortage) excess is calculated as Distributable cash flow attributable to Class A and B Unitholders minus Distributions paid to Class A and B Unitholders. Distributable cash flow excess, if any, is retained to establish reserves, to reduce debt, to fund capital expenditures and for other partnership purposes, and any shortage is funded from previously established reserves, cash on hand or borrowings under our Credit Facility. Management considers Distributable cash flow (shortage) excess a meaningful measure of the partnership’s ability to effectuate those purposes. Distributable cash flow (shortage) excess, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow (shortage) excess that will not occur on a continuing basis may have associated cash payments. Distributable cash flow (shortage) excess should be viewed in conjunction with measurements that are computed in accordance with GAAP. |
Source:
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