LIBERTY, Mo., June 06, 2025 (GLOBE NEWSWIRE) -- Ferrellgas Partners, L.P. (OTC: FGPR) ("Ferrellgas" or the "Company") today reported financial results for its 2025 third fiscal quarter ended April 30, 2025.
Tamria Zertuche, President and Chief Executive Officer, commented, "We are very pleased to have delivered strong third quarter sales growth of 9%, which translated into solid gross profit, and net earnings growth of 12%. This growth was driven by our strong field performance in inclement weather and residential market growth."
Ms. Zertuche continued, "The Company has been named once again by Newsweek as one of the Most Trustworthy Companies in America. The dedication and commitment our employee-owners make to our customers is a key driver in our growth. We are grateful for the outstanding efforts of our employees who continue to deliver operational excellence through efficiencies, and solid results. Our drivers braced against the elements to safely meet the needs of our customers. Safe driving by our experienced and highly tenured employees, aided by proven planning practices helped achieve opportunities for growth in Retail and solid Blue Rhino performance. I could not be prouder of the way our teams performed. We are well positioned to capitalize on the upcoming peak grilling season, and our prudent expansion efforts are paying off with the addition of several new national accounts with multi-year contracts."
Financial Highlights:
Revenue growth, of 9% versus the prior year, was driven by positive demand in all customer segments in the third fiscal quarter. Retail and wholesale sales increased 9% and 8%, respectively, as noted below.
Gross profit increased $16.9 million, or 6%, in the third fiscal quarter compared to the prior year. The increase was driven by an increase of $45.1 million, or 9%, in revenues, which was partially offset by an increase of $28.1 million, or 12%, in cost of product. Higher costs were driven by propane pricing increases.
The Company recognized net earnings attributable to Ferrellgas Partners, L.P. of $59.1 million and $52.8 million in the third fiscal quarter of fiscal 2025 and 2024, respectively. The $6.3 million increase was primarily due to the $16.9 million increase in gross profit, described above, which was partially offset by an $8.8 million increase in operating expenses and $3.5 million increase in interest expense.
The $8.8 million increase in operating expense was due to increases of $7.8 million in plant and other, $0.7 million in personnel, and $0.3 million in vehicle expense. The increase in plant and other was primarily due to increases of $3.5 million in legal costs, $1.6 million in software expense, $1.0 million for capitalized tank installations and plant supplies, and $0.8 million for property maintenance.
The $3.5 million increase in interest expense was primarily driven by increases of $1.9 million for amortization of debt issuance costs, related to amendments to the Company's revolving credit facility, $0.7 million for letters of credit fees, and $0.7 million for interest charges for a lease related to a growth initiative.
For the third fiscal quarter, Adjusted EBITDA, a non-GAAP financial measure, increased by $10.8 million, or 10%, to $114.8 million, compared to $104.0 million in the prior year quarter. The $16.9 million increase in gross profit and a $1.1 million decrease in general and administrative expense, after adjusting for a $0.6 million increase in EBITDA adjustments, drove the increase in Adjusted EBITDA for the third fiscal quarter as compared to the prior year period. This increase was partially offset by the $8.8 million increase in operating expenses noted above.
Operational Highlights:
The third fiscal quarter 2025 was warmer than normal by 4% but 12% cooler than the third fiscal quarter 2024, which aligns with a 12% increase in gallons sold to residential customers. Propane sales volumes during the third fiscal quarter increased 13.4 million gallons, or 6%, compared to the prior year period. Additionally, increases of 6.0% and 2.6% in wholesale propane prices at our two major supply points contributed to the increase in revenues.
Retail sales increased $32.7 million, or 9%, compared to the prior year quarter and partially aligns with the increase in retail gallons sold of 8.8 million gallons, or 5%. Residential sales volume growth of 12% over the prior year quarter drove the majority of the increase, with other retail volume for industrial commercial, national, and agricultural customers growing at 2%.
Wholesale sales increased $9.9 million, or 8%, compared to the prior year period with a corresponding increase of 4.6 million gallons, or 10%, compared to the prior year period. The favorable increase was driven by a $4.7 million increase in wholesale gallons sold and a $3.1 million increase in tank exchange sales due to organic growth and preparation for peak season.
Blue Rhino, the Company's tank exchange business, focused this quarter on preparing for its peak summer selling season, which aligns with the next fiscal quarter. Impactful capital projects began at several Blue Rhino production plants to improve efficiency and expand capabilities as we modernize operations and make investments to serve customer demands. During periods of economic uncertainty, we have historically observed a shift in consumer behavior toward more cost-effective, home-based leisure activities like grilling. The Company is well-positioned to meet increases in demand through our robust supply network and customer-focused service model.
The Company gained six new national account customers through a three-year deal, which is expected to add a cumulative 1.6 million gallons of new business. In another win, the national sales team signed four additional multi-year contracts, adding a cumulative 0.8 million gallons.
The Company's new telematic technology has been in place for a full year and has proven to enhance our customer delivery. Metrics related to unproductive deliveries, fill rates, zero gallon and cylinder deliveries have all shown improvement during the third fiscal quarter as compared to the prior year period. Leveraging the technology, the Company's North Central region experienced a generational ice storm in March, employees worked tirelessly, without a single safety incident, to ensure customers had a critical supply of propane.
The Company continues to closely monitor global trade developments, including the imposition of tariffs on steel tanks and cylinders, and changes in trade policies that may affect our supply chain, cost structure, and overall business operations. The Company is exploring numerous potential actions to mitigate the effects of these developments as we strengthen and diversify our supplier relationships in addition to leveraging the company's buying power as a national logistics company. We remain committed to proactively adapt to evolving trade conditions with a focus on minimizing disruption and improving financial performance.
Debt Refinancing
As previously disclosed, the Company is working with Moelis & Company, LLC, a global investment bank, on refinancing efforts with respect to the $308.8 million revolving credit facility maturing on December 31, 2025, and the $650.0 million senior unsecured notes due April 1, 2026. The Company anticipates completing a refinancing in a timely manner.
On Friday, June 6, 2025, the Company will conduct a teleconference on the Internet at https://edge.media-server.com/mmc/p/jvdtqz33 to discuss the results of operations for the third fiscal quarter ended April 30, 2025. The webcast of the teleconference will begin at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Questions may be submitted via the investor relations e-mail box at InvestorRelations@ferrellgas.com.
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. Its Blue Rhino propane exchange brand is sold at over 66,000 locations nationwide. Ferrellgas employees indirectly own 1.1 million Class A Units of the partnership, through an employee stock ownership plan. Ferrellgas Partners, L.P. filed an Annual Report on Form 10-K for the fiscal year ended July 31, 2024, with the Securities and Exchange Commission on September 27, 2024. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at www.ferrellgas.com. For more information, follow Ferrellgas on Facebook, X, LinkedIn, and Instagram.
Cautionary Note Regarding Forward-Looking Statements
Statements included in this release concerning current estimates, expectations, projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are forward-looking statements as defined under federal securities laws. These statements often use words such as "anticipate," "believe," "intend," "plan," "projection," "forecast," "strategy," "position," "continue," "estimate," "expect," "may," "will," or the negative of those terms or other variations of them or comparable terminology. 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, including the effect of weather conditions on the demand for propane; the prices of wholesale propane, motor fuel and crude oil; disruptions to the supply of propane; competition from other industry participants and other energy sources; energy efficiency and technology advances; significant delays in the collection of accounts or notes receivable; customer, counterparty, supplier or vendor defaults; changes in demand for, and production of, hydrocarbon products; inherent operating and litigation risks in gathering, transporting, handling and storing propane; costs of
complying with, or liabilities imposed under, environmental, health and safety laws; the impact of pending and future legal proceedings; the interruption, disruption, failure or malfunction of our information technology systems including due to cyber-attack; economic and political instability, particularly in areas of the world tied to the energy industry, including the ongoing conflicts between Russia and Ukraine and in the Middle East; disruptions in the capital and credit markets; and access to available capital to meet our operating and debt-service requirements; and the anticipated completion of a refinancing. These risks, uncertainties, and other factors also include those discussed in the Annual Report on Form 10-K of Ferrellgas Partners, L.P., Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. for the fiscal year ended July 31, 2024, in the Quarterly Report on Form 10-Q of Ferrellgas Partners, L.P., Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. for the quarters ended January 31, 2025 and April 30, 2025, and in other documents filed from time to time by these entities with the Securities and Exchange Commission. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof. Ferrellgas disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
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,
-------------------- ------------------------ --------------------------
2025 2024 2025 2024 2025 2024
-------- -------- ---------- ---------- ---------- ----------
Revenues:
Propane and
other gas
liquids
sales $533,546 $490,057 $1,507,371 $1,413,200 $1,825,610 $1,733,315
Other 27,301 25,717 87,337 83,464 109,550 105,235
------- ------- --------- --------- --------- ---------
Total
revenues 560,847 515,774 1,594,708 1,496,664 1,935,160 1,838,550
Cost of sales:
Propane and
other gas
liquids sales 267,891 240,281 750,953 690,299 902,144 841,257
Other 3,727 3,195 11,838 11,366 12,953 14,587
------- ------- --------- --------- --------- ---------
Gross profit 289,229 272,298 831,917 794,999 1,020,063 982,706
Operating
expense -
personnel,
vehicle, plant
& other 159,392 150,629 478,306 454,913 624,995 597,861
Operating
expense -
equipment lease
expense 3,833 5,275 14,333 15,994 19,924 21,775
Depreciation and
amortization
expense 24,336 25,340 73,006 74,179 97,298 98,096
General and
administrative
expense 12,721 13,305 167,361 43,321 174,379 59,898
Non-cash
employee stock
ownership plan
compensation
charge 802 880 2,358 2,500 3,092 3,223
Loss on asset
sales and
disposals 855 130 4,546 1,847 5,518 4,610
------- ------- --------- --------- --------- ---------
Operating income 87,290 76,739 92,007 202,245 94,857 197,243
Interest expense (28,142) (24,685) (82,116) (73,205) (107,134) (98,434)
Other income,
net 779 1,324 1,957 3,509 2,939 4,269
------- ------- --------- --------- --------- ---------
Earnings (loss)
before income
tax expense 59,927 53,378 11,848 132,549 (9,338) 103,078
Income tax
expense 378 240 943 711 918 804
------- ------- --------- --------- --------- ---------
Net earnings
(loss) 59,549 53,138 10,905 131,838 (10,256) 102,274
Net earnings
(loss)
attributable to
noncontrolling
interest(1) 444 372 (375) 839 (753) 376
------- ------- --------- --------- --------- ---------
Net earnings
(loss)
attributable to
Ferrellgas
Partners, L.P. $ 59,105 $ 52,766 $ 11,280 $ 130,999 $ (9,503) $ 101,898
======= ======= ========= ========= ========= =========
Class A
unitholders'
interest in net
earnings
(loss) $ 6,127 $(63,802) $ (36,919) $ (18,853) $ (73,726) $ (25,290)
======= ======= ========= ========= ========= =========
Net earnings
(loss) per
unitholders'
interest
---------------
Basic and
diluted net
earnings (loss)
per Class A
Unit $ 1.26 $ (13.13) $ (7.60) $ (3.88) $ (15.18) $ (5.21)
Weighted average
Class A Units
outstanding -
basic and
diluted 4,858 4,858 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,
Ferrellgas, L.P.
Supplemental Data and Reconciliation of Non-GAAP Items:
Three months ended Nine months ended Twelve months ended
April 30, April 30, April 30,
-------------------- -------------------- ----------------------
2025 2024 2025 2024 2025 2024
-------- -------- -------- -------- -------- --------
Net earnings (loss)
attributable to
Ferrellgas
Partners, L.P. $ 59,105 $ 52,766 $ 11,280 $130,999 $ (9,503) $101,898
Income tax
expense 378 240 943 711 918 804
Interest expense 28,142 24,685 82,116 73,205 107,134 98,434
Depreciation and
amortization
expense 24,336 25,340 73,006 74,179 97,298 98,096
------- ------- ------- ------- ------- -------
EBITDA 111,961 103,031 167,345 279,094 195,847 299,232
Non-cash employee
stock ownership
plan
compensation
charge 802 880 2,358 2,500 3,092 3,223
Loss on asset
sales and
disposal 855 130 4,546 1,847 5,518 4,610
Other income, net (779) (1,324) (1,957) (3,509) (2,939) (4,269)
Legal fees and
settlements
related to
non-core
businesses 1,479 323 130,633 1,480 132,143 5,957
Legal fees and
settlements
related to core
businesses -- -- 4,540 -- 4,540 --
Acquisition and
related
costs(1) -- -- (798) -- 1,371 --
Business
transformation
costs(2) 17 591 1,338 1,556 2,392 3,644
Net earnings
(loss)
attributable to
noncontrolling
interest(3) 444 372 (375) 839 (753) 376
------- ------- ------- ------- ------- -------
Adjusted EBITDA(4) 114,779 104,003 307,630 283,807 341,211 312,773
Net cash interest
expense(5) (23,384) (21,240) (69,288) (63,411) (90,922) (85,809)
Maintenance
capital
expenditures(6) (6,365) (5,383) (25,506) (13,952) (33,243) (18,706)
Cash paid for
income taxes (298) (136) (708) (495) (912) (874)
Proceeds from
certain asset
sales 904 589 2,115 1,969 2,456 2,042
------- ------- ------- ------- ------- -------
Distributable cash
flow attributable
to equity
investors(7) 85,636 77,833 214,243 207,918 218,590 209,426
Less: Distributions
accrued or paid to
preferred
unitholders 15,623 16,045 48,086 48,546 64,318 64,797
Distributable cash
flow attributable
to general partner
and non-controlling
interest (1,713) (1,557) (4,285) (4,159) (4,371) (4,190)
------- ------- ------- ------- ------- -------
Distributable cash
flow attributable
to Class A and B
Unitholders(8) 68,300 60,231 161,872 155,213 149,901 140,439
Less: Distributions
paid to Class A and
B Unitholders(9) -- 99,996 -- 99,996 -- 99,996
------- ------- ------- ------- ------- -------
Distributable cash
flow excess
(shortage)(10) $ 68,300 $(39,765) $161,872 $ 55,217 $149,901 $ 40,443
======= ======= ======= ======= ======= =======
Propane gallons
sales
Retail - Sales to
End Users 171,084 162,282 483,790 479,776 567,899 566,924
Wholesale - Sales
to Resellers 51,723 47,102 172,453 152,845 219,478 202,906
------- ------- ------- ------- ------- -------
Total propane
gallons sales 222,807 209,384 656,243 632,621 787,377 769,830
======= ======= ======= ======= ======= =======
(1 ) Non-recurring due diligence related to potential acquisition
activities, restructuring costs, and other adjustments.
(2 ) Non-recurring costs included in "Operating, general
and administrative expense" related to the implementation
of business transformation initiatives.
(3 ) Amounts allocated to the general partner for its 1.0101%
interest (excluding the economic interest attributable
to the preferred unitholders) in the operating partnership,
Ferrellgas, L.P.
(4 ) Adjusted EBITDA is calculated as net earnings (loss)
attributable to Ferrellgas Partners, L.P., plus the
sum of the following: income tax expense, interest
expense, depreciation and amortization expense, non-cash
employee stock ownership plan compensation charge,
loss on asset sales and disposals, other income, net,
legal fees and settlements related to non-core businesses,
legal fees and settlements related to core businesses,
acquisition and related costs, business transformation
costs, 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 make it easier to compare
its results with other companies that have different
financing and capital structures. Adjusted EBITDA,
as management defines it, may not be comparable to
similarly titled measurements used by other companies.
Items added into our calculation of Adjusted EBITDA
that will not occur on a continuing basis may have
associated cash payments. Adjusted EBITDA should be
viewed in conjunction with measurements that are computed
in accordance with GAAP.
(5 ) Net cash interest expense is the sum of interest expense
less non-cash interest expense and other income, net.
(6 ) 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.
(7 ) 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.
(8 ) 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.
(9 ) The Company did not pay any distributions to Class
A Unitholders during any of the periods in fiscal
2025 or fiscal 2024.
(10 ) Distributable cash flow excess (shortage) 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 excess (shortage) a meaningful measure of
the partnership's ability to effectuate those purposes.
Distributable cash flow excess (shortage), 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 excess
(shortage) that will not occur on a continuing basis
may have associated cash payments. Distributable cash
flow excess (shortage) should be viewed in conjunction
with measurements that are computed in accordance
with GAAP.
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
(unaudited)
ASSETS April 30, 2025 July 31, 2024
---------------------------------- ---------------- -----------------
Current assets:
Cash and cash equivalents
(including $10,678 of
restricted cash at July 31,
2024) $ 109,325 $ 124,160
Accounts and notes receivable,
net 183,115 120,627
Inventories 86,109 96,032
Prepaid expenses and other
current assets 29,795 34,383
----------- ----------
Total current assets 408,344 375,202
Property, plant and equipment, net 609,827 604,954
Goodwill, net 257,155 257,006
Intangible assets (net of
accumulated amortization of
$364,949 and $358,895 at April 30,
2025 and July 31, 2024,
respectively) 108,318 112,155
Operating lease right-of-use assets 40,963 47,620
Other assets, net 71,112 61,813
----------- ----------
Total assets $ 1,495,719 $ 1,458,750
=========== ==========
LIABILITIES, MEZZANINE AND EQUITY
(DEFICIT)
----------------------------------
Current liabilities:
Accounts payable $ 49,087 $ 33,829
Current portion of long-term
debt 652,382 2,510
Current operating lease
liabilities 17,141 22,448
Other current liabilities 229,211 184,021
----------- ----------
Total current liabilities 947,821 242,808
Long-term debt 814,050 1,461,008
Operating lease liabilities 24,840 26,006
Other liabilities 42,766 27,267
Contingencies and commitments
Mezzanine equity:
Senior preferred units, net of
issue discount and offering costs
(700,000 units outstanding at
April 30, 2025 and July 31, 2024) 651,349 651,349
Equity (Deficit):
Limited partner unitholders
Class A (4,857,605 Units
outstanding at April 30,
2025 and July 31, 2024) (1,291,074) (1,256,946)
Class B (1,300,000 Units
outstanding at April 30,
2025 and July 31, 2024) 383,012 383,012
General partner Unitholder
(49,496 Units outstanding at
April 30, 2025 and July 31,
2024) (70,425) (70,080)
Accumulated other comprehensive
income 1,435 2,025
----------- ----------
Total Ferrellgas Partners,
L.P. deficit (977,052) (941,989)
Noncontrolling interest (8,055) (7,699)
----------- ----------
Total deficit (985,107) (949,688)
----------- ----------
Total liabilities, mezzanine
and deficit $ 1,495,719 $ 1,458,750
=========== ==========
Contacts
Investor Relations -- InvestorRelations@ferrellgas.com
(END) Dow Jones Newswires
June 06, 2025 06:30 ET (10:30 GMT)
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