LIBERTY, Mo., May 29 /PRNewswire-FirstCall/ -- Ferrellgas Partners, L.P.
(NYSE: FGP), one of the nation's largest retail marketers of propane, today
reported near record EBITDA and record net earnings for the third quarter
ended April 30, 2002.
EBITDA (earnings before interest, taxes, depreciation, amortization and
non-cash charges) for the quarter was $63.9 million, slightly less than the
record performance of $65.2 million in the previous year's quarter. Net
earnings for the quarter were a record-setting $36.6 million, an increase of
$6.2 million from the previous year's third quarter record results.
Retail propane sales for the quarter were 240 million gallons, compared to
record propane sales of 249 million retail gallons in the previous year's
quarter. Current quarter sales reflect national temperatures that were 3
percent warmer than normal, according to the National Oceanic and Atmospheric
Administration.
Third quarter gross profit of $152.5 million matched results of
$152.8 million reported in the prior year's quarter, as strong margins
realized in retail locations offset lower risk management gains and the impact
of warmer winter temperatures. Operating and general and administrative
expenses for the quarter were $82.8 million, up from $80.0 million in the
prior year period primarily due to the timing of performance-based incentive
compensation. Equipment lease expense for the quarter decreased by $1.8
million to $5.8 million as a result of the lower interest rate environment.
Net earnings for the quarter were favorably impacted by the implementation of
the accounting pronouncement SFAS No. 142.
"I believe Ferrellgas is positioned well to continue to deliver its
investors superior returns on their investment," said James E. Ferrell,
Chairman and Chief Executive Officer. "For the trailing twelve-month period,
distributable cash flow available to equity investors was $89.4 million,
providing public and total common unit cash distribution coverage of 1.8 times
and 1.1 times, respectively."
For the nine-months ended April 30, 2002, retail propane sales volumes and
gross profit were 721 million gallons and $427.0 million, respectively. These
results were primarily impacted by this heating season's unfavorable
temperatures and economic conditions compared to last year's period. Year-to-
date, operating and general and administrative expenses were $233.8 million,
down from the prior year period due to lower retail sales volumes. Equipment
lease expense of $18.5 million, decreased from the same period last year as a
result of lower interest rates. EBITDA for the period was $174.7 million, as
compared to a company record $207.6 million for the same nine-month period
last year. Net earnings for the period of $91.3 million, as compared to
$107.8 million for the same period last year, were favorably impacted by the
implementation of the accounting pronouncement SFAS No. 142.
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 April 30, 2002 July 31, 2001
Current Assets:
Cash and cash equivalents $23,899 $25,386
Accounts and notes receivable, net 110,347 56,772
Inventories 41,738 65,284
Prepaid expenses and other current assets 7,566 10,504
Total Current Assets 183,550 157,946
Property, plant and equipment, net 502,710 491,194
Goodwill, net (A) 124,190 124,190
Intangible assets, net (A) 100,555 108,526
Other assets, net (A) 5,875 14,303
Total Assets $916,880 $896,159
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable $50,410 $58,274
Other current liabilities 72,593 77,610
Short-term borrowings - -
Total Current Liabilities 123,003 135,884
Long-term debt 705,044 704,782
Other liabilities 13,628 15,472
Contingencies and commitments - -
Minority interest 2,429 2,034
Partners' Capital:
Senior unitholder (2,782,211 and
2,801,622 units outstanding at April 2002
and July 2001, respectively - liquidation
preference at $40 per unit) 111,288 112,065
Common unitholders (36,074,703 and
35,908,366 units outstanding at April 2002
and July 2001, respectively) 22,077 (12,959)
General partner unitholder (364,391 and
362,711 units outstanding at April 2002
and July 2001, respectively) (58,497) (58,738)
Accumulated other comprehensive income (2,092) (2,381)
Total Partners' Capital 72,776 37,987
Total Liabilities and Partners' Capital $916,880 $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 NINE MONTHS ENDED APRIL 30, 2002 AND 2001
(in thousands, except per unit data)
(Unaudited)
Three months ended Nine months ended
April 30 April 30
2002 2001 2002 2001
Revenues:
Gas liquids and related
product sales (A) $269,825 $367,503 $825,239 $1,247,519
Other (A) 17,336 16,891 62,903 67,153
Total revenues 287,161 384,394 888,142 1,314,672
Cost of product sold (A) 134,640 231,593 461,178 835,580
Gross profit 152,521 152,801 426,964 479,092
Operating expense 74,686 73,358 212,186 228,846
Depreciation and amortization
expense (B) 10,625 14,484 32,844 42,462
General and administrative
expense 8,117 6,619 21,574 18,246
Equipment lease expense 5,825 7,618 18,456 24,386
Employee stock ownership plan
compensation charge 1,273 1,316 3,856 3,510
Loss on disposal of assets and
other 552 1,607 1,830 4,761
Operating income 51,443 47,799 136,218 156,881
Interest expense (14,717) (14,884) (45,039) (47,158)
Interest income 323 981 1,194 2,420
Other charges (C) - (3,118) - (3,118)
Earnings before minority
interest 37,049 30,778 92,373 109,025
Minority interest 414 376 1,052 1,240
Net earnings 36,635 30,402 91,321 107,785
Distribution to senior
unitholder 2,786 4,888 8,390 14,310
Net earnings available to
general partner 338 255 829 935
Net earnings available to common
unitholders $33,511 $25,259 $82,102 $92,540
Net earnings per common unit:
Net earnings per common unit $0.93 $0.81 $2.28 $2.96
Weighted average common units
outstanding 36,072.0 31,307.1 36,003.3 31,307.1
Supplemental Data:
Three months ended Nine months ended
April 30 April 30
2002 2001 2002 2001
Retail gallons 240,385 248,785 720,690 847,908
Operating income $51,443 $47,799 $136,218 $156,881
Depreciation and
amortization expense (B) 10,625 14,484 32,844 42,462
Employee stock ownership
plan compensation charge 1,273 1,316 3,856 3,510
Loss on disposal of assets
and other 552 1,607 1,830 4,761
EBITDA (D) $63,893 $65,206 $174,748 $207,614
Net cash interest expense (E) (13,959) (14,590) (42,923) (45,278)
Maintenance capital
expenditures and other
charges (C) (2,759) (5,492) (9,316) (10,082)
Distributable cash flow to
equity investors $47,175 $45,124 $122,509 $152,254
(A) In accordance with the FASB's EITF 99-19, certain amounts reported
net in Other revenue included in the three and nine months ended
April 30 of fiscal 2001 consolidated statement of earnings have been
reclassified as gross Revenues and Cost of product sold to conform to
the three and nine months ended April 30 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 $8,025 of goodwill amortization for
the three and nine months ended April 30, 2001.
(C) Other charges refer to expenses incurred for the modification of the
terms of senior units and common units on April 6, 2001.
(D) 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.
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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