LIBERTY, Mo., Feb. 28 /PRNewswire-FirstCall/ -- Ferrellgas Partners, L.P.
(NYSE: FGP), one of the nation's largest retail marketers of propane, today
reported earnings for the second quarter ended January 31, 2002.
Record warm winter temperatures experienced during the quarter resulted in
retail propane sales of 290 million gallons, as compared to last year's record
retail propane sales of 399 million gallons. National temperatures were
20 percent warmer than the prior year's quarter' and 16 percent warmer than
normal, according to the National Oceanic and Atmospheric Administration,
making this three-month period the warmest in the 107 years such records have
been kept.
Gross profit for the quarter of $179.1 million, compared to $234.2 million
reported for the same period last year, was impacted by record warm
temperatures, the continued slowing economy and lower risk management gains.
This was offset somewhat by improved margins from our retail locations.
Operating expense decreased 22 percent from the second quarter of last year to
$70.4 million, primarily as a result of reduced variable expenses related to
lower retail propane sales volumes. Equipment lease expense decreased
30 percent from last year's quarter' to $6.1 million as a result of lower
interest rates.
EBITDA (earnings before interest, taxes, depreciation, amortization and
non-cash charges) for the quarter was $96.1 million, down from a company
record $128.2 million in the previous year's quarter. Net earnings for the
quarter were $68.2 million, compared to a company record $94.9 million in the
second quarter of last year.
"In response to the significantly warmer winter temperatures and the
slowing economy, we continue to focus on improving our cash flow through
effective margin and cost management," said James E. Ferrell, Chairman and
Chief Executive Officer. "We will continue to look for opportunities that
allow us to better react to these kinds of events in the future."
For the six-months ended January 31, 2002, retail propane sales volumes
and gross profit were 480 million gallons and $274.4 million, respectively;
both primarily impacted by this quarter's weather and economic conditions.
Year-to-date, operating expense and equipment lease expense of $137.5 million
and $12.6 million, respectively, decreased from the same period a year ago,
due to lower retail sales volumes and interest rates. EBITDA for the period
was $110.9 million, as compared to $142.4 million for the same six-month
period last year. Net earnings for the period were $54.7 million, as compared
to $77.4 million for the same period last year. Net earnings reflect the
implementation of the accounting pronouncement SFAS No. 142, which reduced
goodwill amortization by $2.7 million for the quarter and $5.4 million for the
six-months ended January 31, 2002.
Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas,
L.P., currently serves more than one million customers in 45 states.
Ferrellgas employees indirectly own more than 17 million units of the
partnership through an employee stock ownership plan. Ferrellgas trades on
the New York Stock Exchange under the ticker symbol FGP. More information
about the company can be found online at http://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 actual results, performance and
expectations to differ materially from anticipated results, performance or
expectations. These risks, uncertainties and other factors are discussed in
the partnership's annual report on Form 10-K for fiscal 2001 dated July 31,
2001, as filed with the Securities and Exchange Commission on October 25,
2001, and other documents filed from time to time with the Securities and
Exchange Commission.
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
Unaudited Audited
ASSETS January 31, 2002 July 31, 2001
Current Assets:
Cash and cash equivalents $26,402 $25,386
Accounts and notes receivable, net 123,851 56,772
Inventories 51,528 65,284
Prepaid expenses and other current
assets 9,889 10,504
Total Current Assets 211,670 157,946
Property, plant and equipment, net 497,416 491,194
Goodwill, net (A) 124,190 124,190
Intangible assets, net (A) 103,572 108,526
Other assets, net (A) 10,609 14,303
Total Assets $947,457 $896,159
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable $70,789 $58,274
Other current liabilities 70,588 77,610
Short-term borrowings 8,102 -
Total Current Liabilities 149,479 135,884
Long-term debt 725,256 704,782
Other liabilities 14,273 15,472
Contingencies and commitments - -
Minority interest 2,217 2,034
Partners' Capital:
Senior unitholder (2,801,622 units
outstanding at January 2002
and July 2001, respectively -
liquidation preference at $40 per
unit) 112,065 112,065
Common unitholders (36,063,953 and
35,908,366 units outstanding
at January 2002 and July 2001,
respectively) 5,173 (12,959)
General partner unitholder (364,273
and 362,711 units outstanding
at January 2002 and July 2001,
respectively) (58,637) (58,738)
Accumulated other comprehensive
income (2,369) (2,381)
Total Partners' Capital 56,232 37,987
Total Liabilities and Partners'
Capital $947,457 $896,159
(A) In accordance with the FASB's SFAS No. 142, Ferrellgas now
separately reports goodwill that was formerly
reported in Intangible assets, net and Other assets, net.
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND SIX MONTHS ENDED JANUARY 31, 2002 AND 2001
(in thousands, except per unit data)
(Unaudited)
Three months ended Six months ended
January 31 January 31
2002 2001 2002 2001
Revenues:
Gas liquids and related product
sales (A) $331,129 $615,458 $555,414 $880,016
Other (A) 24,609 26,359 45,567 50,262
Total revenues 355,738 641,817 600,981 930,278
Cost of product sold (A) 176,591 407,667 326,538 603,987
Gross profit 179,147 234,150 274,443 326,291
Operating expense 70,373 90,345 137,500 155,488
Depreciation and amortization
expense (B) 10,765 13,947 22,219 27,978
General and administrative expense 6,632 6,910 13,457 11,627
Equipment lease expense 6,086 8,661 12,631 16,768
Employee stock ownership plan
compensation charge 1,274 1,125 2,583 2,194
Loss on disposal of assets and
other 431 1,983 1,278 3,154
Operating income 83,586 111,179 84,775 109,082
Interest expense (15,208) (16,106) (30,322) (32,274)
Interest income 545 882 871 1,439
Earnings before minority interest 68,923 95,955 55,324 78,247
Minority interest (C) 735 1,007 638 864
Net earnings 68,188 94,948 54,686 77,383
Distribution to senior unitholder 2,802 4,769 5,604 9,422
Net earnings available to general
partner 654 902 491 680
Net earnings available to common
unitholders $64,732 $89,277 $48,591 $67,281
Net earnings per common unit:
Net earnings per common unit $1.80 $2.85 $1.35 $2.15
Weighted average common units
outstanding 36,022.7 31,307.1 35,970.9 31,307.1
Supplemental Data
Three months ended January 31 Six months ended January 31
2002 2001 2002 2001
Retail gallons 290,394 399,060 480,305 599,123
Operating income $83,586 $111,179 $84,775 $109,082
Depreciation and
amortization
expense (B) 10,765 13,947 22,219 27,978
Employee stock
ownership plan
compensation charge 1,274 1,125 2,583 2,194
Loss on disposal of
assets and other 431 1,983 1,278 3,154
EBITDA (D) 96,056 128,234 110,855 142,408
Net cash interest
expense (E) (14,352) (15,465) (28,964) (30,688)
Maintenance capital
expenditures and
other charges (F) (5,457) (2,619) (10,169) (4,590)
Distributable cash
flow to equity
investors 76,247 110,150 71,722 107,130
(A) In accordance with the FASB's EITF 99-19, certain amounts reported net
in Other revenue included in the three and six months
ended January 31 of fiscal 2001 consolidated statement of earnings
have been reclassified as gross Revenues and Cost of product
sold to conform to the three and six months ended of January 31 fiscal
2002 presentation.
(B) In accordance with the FASB's SFAS No. 142, fiscal 2002 amounts do not
include amortization of goodwill.
Fiscal 2001 includes $2,675 and $5,350 of goodwill amortization for
the three and six months ended January 31, 2001.
(C) Amounts allocated to the general partner for its 1.0101% interest in
the operating partnership, Ferrellgas, L.P.
(D) EBITDA is calculated as earnings before interest, taxes, depreciation,
amortization, other charges and non-cash items
such as employee stock ownership plan compensation charge and (gain)
loss on disposal of assets and other. EBITDA
is not intended to represent cash flow and does not represent the
measure of cash available for distribution. EBITDA
is a non-GAAP measure, but provides additional information for
evaluating the partnership's ability to make the Minimum
Quarterly Distribution. In addition, EBITDA is not intended as an
alternative to operating income or net earnings.
(E) Net cash interest expense includes interest expense and other related
charges, net of interest income and non-cash interest expense.
(F) Other charges refer to amortization of expenses incurred for the
modification of the terms of senior units and common
units on April 6, 2001.
CONTACT: Ryan VanWinkle, Investor Relations, +1-816-792-7998, or Scott
Brockelmeyer, Media Relations, +1-816-792-7837, both of
Ferrellgas Partners, L.P.
SOURCE Ferrellgas Partners, L.P.
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Related links:
http://www.ferrellgas.com
CONTACT:
Ryan VanWinkle, Investor Relations,
+1-816-792-7998, or Scott Brockelmeyer, Media Relations,
+1-816-792-7837, both of Ferrellgas Partners, L.P.
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