LIBERTY, Mo., May 29 /PRNewswire-FirstCall/ --
Ferrellgas Partners, L.P. (NYSE: FGP), the nation's second largest retail
marketer of propane, today reported record net earnings of $39.4 million for
the third quarter ended April 30, 2003.
Third quarter retail propane sales volumes were 251 million gallons, an
increase of 4 percent compared to the third quarter of 2002. These strong
sales volumes reflect the impact of acquisitions and national temperatures
that were 2 percent colder than the same period last year, as reported by the
National Oceanic and Atmospheric Administration.
Gross profit and operating expense for the quarter were $161.4 million and
$79.1 million, respectively, an increase of $8.9 million and $4.4 million,
respectively, compared to the same period last year. These increases were
primarily attributable to higher retail sales volumes. General and
administrative expense for the quarter was $7.2 million, down $0.9 million
from the same quarter last year. Third quarter equipment lease expense was
$5.0 million, down $0.8 million from the prior year's quarter, partially
reflecting the partnership's second quarter refinancing of certain operating
tank lease obligations.
EBITDA, as adjusted, was a record $70.1 million for the third quarter, an
increase of 10 percent as compared to $63.9 million in the prior year's record
quarter. Third quarter net earnings were a record $39.4 million, an increase
of 8 percent as compared to previous record net earnings of $36.6 million
realized in the third quarter of last year.
"Our continued focus on improving our operations and the return of more
normal winter weather has had a positive impact on our sales and profitability
this year," said James E. Ferrell, Ferrellgas' Chairman and Chief Executive
Officer. "We are pleased to once again demonstrate our ability to deliver
strong financial results and returns to our investors, despite recent
challenges from the economy, weather and other external factors."
For the nine months ended April 30, 2003, retail propane sales volumes and
gross profit were 783 million gallons and $463.8 million, respectively, and
operating and general and administrative expenses were $227.2 million and
$21.9 million, respectively. Equipment lease expense for the nine-month
period was $16.5 million. As is typically the case, year-to-date results were
primarily impacted by the seasonal performance experienced in our second and
third fiscal quarters. EBITDA, as adjusted, and net earnings for the nine-
month period were $198.2 million and $101.5 million, respectively, compared to
$174.7 million and $91.3 million, respectively, for the same period last year.
Net earnings for the nine-month period include special charges of $7.1 million
related to the early extinguishment of debt and $2.8 million related to a
cumulative effect of a change in accounting principle.
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 common units of the
partnership through an employee stock ownership plan. Ferrellgas trades on
the New York Stock Exchange under the ticker symbol FGP.
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 Form 10-K for the fiscal year ended July 31, 2002, as
amended, 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, 2003 July 31, 2002
Current Assets:
Cash and cash equivalents $14,104 $19,781
Accounts and notes receivable, net 85,015 74,274
Inventories 48,949 48,034
Prepaid expenses and other current assets 7,763 10,724
Total Current Assets 155,831 152,813
Property, plant and equipment, net 684,126 506,531
Goodwill 124,190 124,190
Intangible assets, net 99,908 98,170
Other assets, net 8,900 3,424
Total Assets $1,072,955 $885,128
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable $50,521 $54,316
Other current liabilities (1) 83,367 89,061
Total Current Liabilities 133,888 143,377
Long-term debt (1) 853,327 703,858
Other liabilities 17,701 14,861
Contingencies and commitments - -
Minority interest 3,050 1,871
Partners' Capital:
Senior unitholder (2,743,020 and
2,782,211 units outstanding at
April 2003 and July 2002, respectively -
liquidation preference $109,721
and $111,288 at April 2003 and July 2002,
respectively) 109,721 111,288
Common unitholders (36,213,803 and
36,081,203 units outstanding
at April 2003 and July 2002,
respectively) 16,552 (28,320)
General partner unitholder (393,510
and 392,556 units outstanding
at April 2003 and July 2002,
respectively) (58,664) (59,035)
Accumulated other comprehensive loss (2,620) (2,772)
Total Partners' Capital 64,989 21,161
Total Liabilities and Partners'
Capital $1,072,955 $885,128
(1) The principal difference between the Ferrellgas Partners, L.P. balance
sheet and that of Ferrellgas, L.P., is $218 million of 8 3/4% notes
and a $10 million short-term note payable, which are liabilities of
Ferrellgas Partners, L.P. and not of Ferrellgas, L.P.
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2003 AND 2002
(in thousands, except per unit data)
(Unaudited)
Three months ended Nine months ended
April 30 April 30
2003 2002 2003 2002
Revenues:
Propane and other gas liquids
sales $351,338 $269,825 $985,539 $825,239
Other 18,027 17,336 64,606 62,903
Total revenues 369,365 287,161 1,050,145 888,142
Cost of product sold 207,934 134,640 586,324 461,178
Gross profit 161,431 152,521 463,821 426,964
Operating expense 79,121 74,686 227,226 212,186
Depreciation and amortization
expense 10,563 10,625 30,719 32,844
General and administrative
expense 7,202 8,117 21,863 21,574
Equipment lease expense 4,990 5,825 16,510 18,456
Employee stock ownership plan
compensation charge 1,619 1,273 4,653 3,856
Loss on disposal of assets and
other 1,985 552 3,781 1,830
Operating income 55,951 51,443 159,069 136,218
Interest expense (16,548) (14,717) (47,328) (45,039)
Interest income 424 323 850 1,194
Early extinguishment of debt
expense (a) - - (7,052) -
Earnings before minority interest
and cumulative effect of change
in accounting principle 39,827 37,049 105,539 92,373
Minority interest (b) 454 414 1,276 1,052
Earnings before cumulative effect
of change in accounting principle 39,373 36,635 104,263 91,321
Cumulative effect of change in
accounting principle, net of
minority interest of $28 (c) - - (2,754) -
Net earnings 39,373 36,635 101,509 91,321
Distribution to senior unitholder 2,775 2,786 8,300 8,390
Net earnings available to general
partner 366 338 932 829
Net earnings available to common
unitholders $36,232 $33,511 $92,277 $82,102
Basic earnings per common unit:
Earnings before cumulative effect
of change in accounting
principle (d) $1.00 $0.93 $2.62 $2.28
Net earnings available to common
unitholders $1.00 $0.93 $2.55 $2.28
Weighted average common units
outstanding 36,197.3 36,072.0 36,142.5 36,003.3
Supplemental Data and Reconciliation of Non-GAAP Item:
Three months ended April 30 Nine months ended April 30
2003 2002 2003 2002
Retail
gallons 250,620 240,385 783,034 720,690
Net earnings $39,373 $36,635 $101,509 $91,321
Interest
expense 16,548 14,717 47,328 45,039
Depreciation
and
amortization
expense 10,563 10,625 30,719 32,844
Early
extinguishment
of debt
expense(a) - - 7,052 -
Employee
stock
ownership
plan
compensation
charge 1,619 1,273 4,653 3,856
Cumulative
effect of
change in
accounting
principle(c) - - 2,754 -
Loss on
disposal
of assets
and other 1,985 552 3,781 1,830
Minority
interest(b) 454 414 1,276 1,052
Interest
income (424) (323) (850) (1,194)
EBITDA, as
adjusted (e) $70,118 $63,893 $198,222 $174,748
(a) Expenses related to the refinancing of the $160 million Ferrellgas
Partners, L.P. senior secured debt in September 2002.
(b) Amounts allocated to the general partner for its 1.0101% interest in
the operating partnership, Ferrellgas, L.P.
(c) Amount related to recognition of liabilities for future retirements
of underground storage facilities, as required by the recently issued
SFAS No. 143.
(d) Amount calculated as 99% of the earnings before cumulative effect of
change in accounting principle less distribution to senior
unitholder; the result then divided by the weighted average common
units outstanding.
(e) EBITDA, as adjusted, is calculated as earnings before interest,
taxes, depreciation, amortization, early extinguishment of debt
expense and non-cash items such as employee stock ownership plan
compensation charge, cumulative effect of change in accounting
principle, loss on disposal of assets and other and minority
interest. EBITDA, as adjusted, is not intended to represent cash flow
and does not represent the measure of cash available for distribution
and is not intended as an alternative to operating income or net
earnings. EBITDA, as adjusted, is a non-GAAP measure, but provides
our management with additional information for evaluating our
operating performance and is a factor in determining our compliance
with debt covenants. Our calculation of EBITDA, as adjusted, may
differ from similarly titled items reported by other companies.
EBITDA, as adjusted, for the periods described herein is calculated
in the same manner as presented by the Partnership in the past,
and is intended to allow investors to compare performance with prior
periods.
CONTACT: Ryan VanWinkle, Investor Relations of Ferrellgas Partners, L.P.,
+1-816-792-7998.
SOURCE Ferrellgas Partners, L.P.
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Related links:
http://www.ferrellgas.com
CONTACT:
Ryan VanWinkle, Investor Relations of
Ferrellgas Partners, L.P., +1-816-792-7998
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