Exhibit 99.1

 

NOT FOR IMMEDIATE RELEASE

 

FERRELLGAS PARTNERS, L.P. REPORTS FISCAL

THIRD QUARTER 2019 RESULTS

 

·                  Total Retail propane sales volume for the quarter increased approximately 8 percent leading to almost 7 percent increase in gross margin dollars over the prior year on weather that was approximately 1 percent colder than the prior year

·                  Retail customer growth of nearly 26,000, or 4 percent over prior year

·                  Tank Exchange sale locations now exceed 54,300, up 600 locations from last quarter and 6 percent compared to prior year.

 

LIBERTY, Mo., June 10, 2019 (GLOBE NEWSWIRE) — Ferrellgas Partners, L.P. (NYSE:FGP) (“Ferrellgas” or the “Company”) today reported financial results for its fiscal third quarter ended April 30, 2019.

 

For the quarter, the Company reported a net earnings attributable to Ferrellgas Partners, L.P. of $20.5 million, or $.21 per common unit, compared to prior year period net loss of $10.9 million, or $.11 per common unit.

 

Adjusted EBITDA, a non-GAAP measure, was $88.6 million compared to $86.9 million in the prior year. The following table represents the contribution to adjusted EBITDA from ongoing propane operations as well as from assets that were sold during 2018.

 

(in millions)

 

Q3 2019

 

Q3 2018

 

Propane Operations and Corporate Support

 

$

88.6

 

$

84.6

 

Results from Assets Sold in 2018

 

 

$

2.3

 

Consolidated Adjusted EBITDA

 

$

88.6

 

$

86.9

 

 

On a trailing twelve month basis, adjusted EBITDA from ongoing propane operations and corporate support as of April 30, 2019 is $234.2 million compared to $229.4 million as of January 31, 2019.

 

The Company’s propane operations reported that total gallons sold of 264.1 million were 7% higher than prior year. Margin cents per gallon were 1.7¢, or 2.2 percent higher than the prior year despite increased competitive pressure in the tank exchange business. The Company continues its aggressive approach to gaining market share.  This strategic focus resulted in nearly 26,000 new customers, or approximately 4 percent more than prior year. Additionally, the Company’s current Blue Rhino tank exchange sales locations have increased over 6 percent from prior year to over 54,300 locations. Overall, the increase in sales volume growth and margins per gallon resulted in an increase in gross margin dollars

 

1


 

of $18.3 million.  The Company’s ongoing commitment to investing in the business led to higher operating expenses during the quarter which were largely associated with serving nearly 26,000 new customers and 3,000 new tank exchange locations.  As a result of this investment and the growth in sales volumes, operating, general and administrative expenses in our Propane segment were $9.3 million higher than the prior year.

 

Liquidity of $292.3 million at April 30, 2019 resulted from $246.9 million of available borrowing capacity on the Company’s secured credit facility and accounts receivable securitization facility as well as $45.4 million of cash.

 

As previously announced, the Company indefinitely suspended its quarterly cash distribution as a result of not meeting the required fixed charge coverage ratio contained in the senior unsecured notes due 2020.  Additionally, as the Company continues to evaluate options to address leverage, the Company does not intend to comment further on its progress in this regard or on potential options until further disclosure is appropriate or required by law.  For that reason, and in view of the information the Company otherwise makes available in earnings releases and quarterly and annual reports, the Company is suspending the practice of holding conference calls with investors, analysts and other interested parties in connection with periodic reporting of financial results for completed periods.

 

About Ferrellgas

 

Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., and subsidiaries, serves propane customers in all 50 states, the District of Columbia, and Puerto Rico. Ferrellgas employees indirectly own 22.8 million common units of the partnership, through an employee stock ownership plan. Ferrellgas Partners, L.P. filed a Form 10-K with the Securities and Exchange Commission on September 27, 2018. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at www.ferrellgas.com.

 

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 Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance Corp. for the fiscal year ended July 31, 2018, and in other documents filed from time to time by these entities with the Securities and Exchange Commission.

 

Contacts

 

Investor Relations — InvestorRelations@ferrellgas.com

 

###

 

2


 

FERRELLGAS PARTNERS, L.P.  AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)

 

 

 

April 30, 2019

 

July 31, 2018

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

45,434

 

$

119,311

 

Accounts and notes receivable, net (including $160,959 and $120,079 of accounts receivable pledged as collateral at April 30, 2019 and July 31, 2018, respectively)

 

157,229

 

126,054

 

Inventories

 

78,449

 

83,694

 

Prepaid expenses and other current assets

 

25,489

 

34,862

 

Total Current Assets

 

306,601

 

363,921

 

 

 

 

 

 

 

Property, plant and equipment, net

 

603,923

 

557,723

 

Goodwill, net

 

247,508

 

246,098

 

Intangible assets, net

 

109,634

 

120,951

 

Other assets, net

 

62,326

 

74,588

 

Total Assets

 

$

1,329,992

 

$

1,363,281

 

 

 

 

 

 

 

LIABILITIES AND PARTNERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

41,408

 

$

46,820

 

Short-term borrowings

 

 

32,800

 

Collateralized note payable

 

62,000

 

58,000

 

Other current liabilities

 

160,507

 

142,025

 

Total Current Liabilities

 

263,915

 

279,645

 

 

 

 

 

 

 

Long-term debt (a)

 

2,084,506

 

2,078,637

 

Other liabilities

 

35,879

 

39,476

 

Contingencies and commitments

 

 

 

 

 

 

 

 

 

 

 

Partners’ Deficit:

 

 

 

 

 

Common unitholders (97,152,665 units outstanding at April 30, 2019 and July 31, 2018)

 

(976,902

)

(978,503

)

General partner unitholder (989,926 units outstanding at April 30, 2019 and July 31, 2018)

 

(69,776

)

(69,792

)

Accumulated other comprehensive income (loss)

 

(846

)

20,510

 

Total Ferrellgas Partners, L.P. Partners’ Deficit

 

(1,047,524

)

(1,027,785

)

Noncontrolling interest

 

(6,784

)

(6,692

)

Total Partners’ Deficit

 

(1,054,308

)

(1,034,477

)

Total Liabilities and Partners’ Deficit

 

$

1,329,992

 

$

1,363,281

 

 


(a) The principal difference between the Ferrellgas Partners, L.P. balance sheet and that of Ferrellgas, L.P., is $357 million of 8.625% notes which are liabilities of Ferrellgas Partners, L.P. and not of Ferrellgas, L.P.

 


 

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands, except per unit data)

(unaudited)

 

 

 

Three months ended

 

Nine months ended

 

Twelve months ended

 

 

 

April 30

 

April 30

 

April 30

 

 

 

2019

 

2018

 

2019

 

2018

 

2019

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Propane and other gas liquids sales

 

$

459,556

 

$

451,302

 

$

1,344,634

 

$

1,346,299

 

$

1,641,311

 

$

1,615,500

 

Midstream operations

 

 

22,595

 

 

260,631

 

21,688

 

395,827

 

Other

 

20,069

 

41,913

 

60,677

 

118,691

 

89,833

 

147,670

 

Total revenues

 

479,625

 

515,810

 

1,405,311

 

1,725,621

 

1,752,832

 

2,158,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

Propane and other gas liquids sales

 

250,389

 

260,419

 

766,056

 

802,852

 

936,618

 

945,279

 

Midstream operations

 

 

14,518

 

 

229,710

 

25,849

 

358,716

 

Other

 

2,320

 

19,850

 

8,789

 

54,339

 

23,104

 

68,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

226,916

 

221,023

 

630,466

 

638,720

 

767,261

 

786,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

119,991

 

116,579

 

351,541

 

350,757

 

472,532

 

460,234

 

Depreciation and amortization expense

 

20,617

 

25,348

 

59,214

 

76,565

 

84,444

 

102,370

 

General and administrative expense

 

11,516

 

11,678

 

42,037

 

39,733

 

56,705

 

52,824

 

Equipment lease expense

 

8,319

 

7,133

 

24,597

 

20,828

 

32,041

 

27,917

 

Non-cash employee stock ownership plan compensation charge

 

(4

)

2,738

 

4,688

 

10,731

 

7,816

 

14,423

 

Asset impairments

 

 

 

 

10,005

 

 

10,005

 

Loss on asset sales and disposals

 

1,683

 

6,270

 

8,403

 

46,414

 

149,388

 

52,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

64,794

 

51,277

 

139,986

 

83,687

 

(35,665

)

66,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(44,162

)

(40,375

)

(132,931

)

(123,855

)

(177,543

)

(164,233

)

Other income (expense), net

 

251

 

227

 

356

 

1,422

 

(138

)

1,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) before income tax benefit

 

20,883

 

11,129

 

7,411

 

(38,746

)

(213,346

)

(95,944

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

123

 

67

 

284

 

282

 

(2,676

)

(667

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

20,760

 

11,062

 

7,127

 

(39,028

)

(210,670

)

(95,277

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

299

 

201

 

337

 

(131

)

(1,776

)

(612

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

20,461

 

10,861

 

6,790

 

(38,897

)

(208,894

)

(94,665

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

205

 

109

 

68

 

(389

)

(2,089

)

(947

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common unitholders’ interest in net earnings (loss)

 

$

20,256

 

$

10,752

 

$

6,722

 

$

(38,508

)

$

(206,805

)

$

(93,718

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) Per Common Unit

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.21

 

$

0.11

 

$

0.07

 

$

(0.40

)

$

(2.13

)

$

(0.96

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common units outstanding - basic

 

97,152.7

 

97,152.7

 

97,152.7

 

97,152.7

 

97,152.7

 

97,152.7

 

 

Supplemental Data and Reconciliation of Non-GAAP Items:

 

 

 

Three months ended

 

Nine months ended

 

Twelve months ended

 

 

 

April 30

 

April 30

 

April 30

 

 

 

2019

 

2018

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

20,461

 

$

10,861

 

$

6,790

 

$

(38,897

)

$

(208,894

)

$

(94,665

)

Income tax expense (benefit)

 

123

 

67

 

284

 

282

 

(2,676

)

(667

)

Interest expense

 

44,162

 

40,375

 

132,931

 

123,855

 

177,543

 

164,233

 

Depreciation and amortization expense

 

20,617

 

25,348

 

59,214

 

76,565

 

84,444

 

102,370

 

EBITDA

 

85,363

 

76,651

 

199,219

 

161,805

 

50,417

 

171,271

 

Non-cash employee stock ownership plan compensation charge

 

(4

)

2,738

 

4,688

 

10,731

 

7,816

 

14,423

 

Asset impairments

 

 

 

 

10,005

 

 

10,005

 

Loss on asset sales and disposal

 

1,683

 

6,270

 

8,403

 

46,414

 

149,388

 

52,010

 

Other income (expense), net

 

(251

)

(227

)

(356

)

(1,422

)

138

 

(1,463

)

Severance costs $690 included in operating costs for the nine and twelve months ended period April 30, 2019 and $910 included in general and administrative costs for the nine and twelve months ended April 30, 2019. Also includes $358 in operating costs for the nine and twelve months ended period April 30, 2018 and $1,305 included in general and administrative costs for the nine and twelve months ended April 30, 2018.

 

 

 

1,600

 

1,663

 

1,600

 

1,663

 

Legal fees and settlements

 

1,471

 

1,289

 

10,643

 

3,407

 

13,301

 

3,407

 

Multi-employer pension plan withdrawal settlement

 

 

 

1,524

 

 

1,524

 

 

Exit costs associated with contracts - Midstream dispositions

 

 

 

 

 

11,804

 

 

Unrealized (non-cash) losses (gains) on changes in fair value of derivatives $(759) included in operating expense for the twelve months ended April 30, 2018. Also includes $1,293 and $3,044 included in midstream operations cost of sales for the nine and twelve months ended April 30, 2018, respectively.

 

 

 

 

1,293

 

 

2,285

 

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

 

299

 

201

 

337

 

(131

)

(1,776

)

(612

)

Adjusted EBITDA (c)

 

88,561

 

86,922

 

226,058

 

233,765

 

234,212

 

252,989

 

Net cash interest expense (d)

 

(40,747

)

(37,873

)

(123,325

)

(115,664

)

(168,553

)

(153,782

)

Maintenance capital expenditures (e)

 

(13,506

)

(5,741

)

(45,038

)

(19,085

)

(53,570

)

(25,502

)

Cash refund from (paid for) taxes

 

(23

)

470

 

(21

)

458

 

(188

)

176

 

Proceeds from certain asset sales

 

456

 

148

 

2,416

 

4,355

 

7,264

 

8,144

 

Distributable cash flow attributable to equity investors (f)

 

34,741

 

43,926

 

60,090

 

103,829

 

19,165

 

82,025

 

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

 

695

 

879

 

1,202

 

2,077

 

383

 

1,641

 

Distributable cash flow attributable to common unitholders (g)

 

34,046

 

43,047

 

58,888

 

101,752

 

18,782

 

80,384

 

Less: Distributions paid to common unitholders

 

 

9,715

 

9,715

 

29,146

 

19,430

 

38,861

 

Distributable cash flow excess/(shortage)

 

$

34,046

 

$

33,332

 

$

49,173

 

$

72,606

 

$

(648

)

$

41,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Propane gallons sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail - Sales to End Users

 

204,441

 

189,183

 

573,152

 

543,548

 

666,572

 

635,326

 

Wholesale - Sales to Resellers

 

59,641

 

57,121

 

179,256

 

185,492

 

233,974

 

241,710

 

Total propane gallons sales

 

264,082

 

246,304

 

752,408

 

729,040

 

900,546

 

877,036

 

 


(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 (loss) attributable to Ferrellgas Partners, L.P., less the sum of the following: income tax expense (benefit), interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, asset impairments, loss on asset sales and disposal, other income (expense), net, severance costs, legal fees and settlements, multi-employer pension plan withdrawal settlement, exit costs associated with contracts - Midstream dispositions, unrealized (non-cash) losses (gains) on changes in fair value of derivatives, 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 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)       Distributable cash flow attributable to equity investors is calculated as Adjusted EBITDA minus net cash interest expense, maintenance capital expenditures and cash paid for 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. Distributable cash flow attributable to equity investors, as management defines it, may not be comparable to distributable cash flow attributable to equity investors or similarly titled measurements used by other corporations and partnerships. 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 may not be consistent with that of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP.

(g)     Distributable cash flow attributable to common unitholders is calculated as Distributable cash flow attributable to equity investors minus distributable cash flow attributable to general partner and noncontrolling interest. Management considers distributable cash flow attributable to common unitholders a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to common unitholders. Distributable cash flow attributable to common unitholders, as management defines it, may not be comparable to distributable cash flow attributable to common unitholders or similarly titled measurements used by other corporations and partnerships. Items added to our calculation of distributable cash flow attributable to common unit holders that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to common unitholders may not be consistent with that of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP .

 


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