PR Newswire
OVERLAND PARK, Kan., March 10, 2014
OVERLAND PARK, Kan., March 10, 2014 /PRNewswire/ -- Ferrellgas Partners, L.P. (NYSE:FGP), one of the nation's largest distributors of propane, today reported a strong performance for the fiscal 2014 second quarter ended January 31, primarily reflecting increased sales volumes and operational efficiencies.
Adjusted EBITDA rose 17% to a record $136.4 million from $116.1 million in the year-earlier quarter. Distributable cash flow grew 20% to $111.9 million from $93.1 million. Distributable cash flow coverage for the trailing 12-month period ended January 31 was 1.2x, the highest level since fiscal 2003.
Second-quarter sales volumes grew 15% to 342.9 million gallons reflecting nationwide temperatures that were 18% colder than in the unusually mild prior-year quarter. Correspondingly, gross profit increased 15% to a record $269.5 million reflecting these increased sales volumes, as margins matched the prior-year quarter at $0.79 per gallon sold.
"The return of more seasonal temperatures drove performance slightly greater than our expectation for the quarter," commented President and Chief Executive Officer Steve Wambold. Temperatures, as reported by the National Oceanic and Atmospheric Administration in the more highly concentrated geographic areas the partnership serves, were 6% colder than normal in the quarter. Wambold further commented "Propane supply challenges dominated the headlines during our fiscal second quarter. I'm proud of the way Ferrellgas employees responded to this challenge, whether it was ensuring our locations had product on hand to meet our many commitments, safely navigating snow- and ice-covered roadways, or patiently answering questions from our customers."
Second-quarter operating expense rose to $116.7 million from $105.6 million resulting from higher sales volumes; however on a cent-per-gallon sold basis improved to $0.34 from $0.35. General and administrative expense increased to $12.1 million from $10.2 million; however, excluding performance-based incentives, was relatively unchanged at $8.5 million. Interest expense declined 2% to $22.1 million from $22.6 million in the prior-year quarter.
Net earnings for the quarter were $61.1 million, or $0.72 per unit, including a loss on the early extinguishment of debt associated with the refinancing of the partnership's senior notes in November 2013. Excluding this nonrecurring expense, net earnings per common unit were $0.87 compared to $0.70 in the prior-year quarter.
Wambold added, "The third quarter is off to a strong start, with February results behind us and seasonably cool temperatures forecasted for the remainder of the heating season. Therefore, we are increasing our Adjusted EBITDA guidance for fiscal 2014 to $275 million to $285 million from $265 million to $275 million." For the trailing 12 months ended January 31, the partnership's Adjusted EBITDA performance was $287.3 million.
Wambold concluded, "Our liquidity for this time of year is very strong, with more than $250 million of borrowing capacity on our credit facility to fund future working capital and growth capital needs. We remain very active in the acquisition market, both inside and outside the retail propane space and are enthusiastic about our growth opportunities in the years to come."
For the first six months of the fiscal year, Adjusted EBITDA rose 10% to $162.8 million on sales volumes that grew 12% to 533.9 million gallons. Gross profit rose 10% to a record $412.4 million on these increased sales volumes, while margins declined slightly to $0.77 per gallon sold as a result of the higher wholesale cost of propane. Consistent with the quarter's results, operating expense rose to $219.7 million on increased sales volumes, but improved on a cent-per-gallon sold basis to $0.41 from $0.42 reflecting operational efficiencies. Distributable cash flow for the six-month period also grew 10% to $115.0 million.
Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., serves customers in all 50 states, the District of Columbia and Puerto Rico. Ferrellgas employees indirectly own more than 21 million common units of the partnership through an employee stock ownership plan. More information about the partnership can be found online at 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 results, performance and expectations to differ materially from anticipated results, performance and expectations. These risks, uncertainties and other factors are 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, 2013, and other documents filed from time to time by these entities with the Securities and Exchange Commission.
Contact:
Tom Colvin, Investor Relations, (913) 661-1530
Scott Brockelmeyer, Media Relations, (913) 661-1830
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||
FOR THE THREE, SIX AND TWELVE MONTHS ENDED JANUARY 31, 2014 AND 2013 | ||||||||||||
(in thousands, except per unit data) | ||||||||||||
(unaudited) | ||||||||||||
| | | | | | | | | | | | |
| | Three months ended | | Six months ended | | Twelve months ended | ||||||
| | January 31 | | January 31 | | January 31 | ||||||
| | 2014 | | 2013 | | 2014 | | 2013 | | 2014 | | 2013 |
Revenues: | | | | | | | | | | | | |
Propane and other gas liquids sales | | $ 789,446 | | $ 583,074 | | $ 1,171,669 | | $ 918,355 | | $ 1,992,581 | | $ 1,785,514 |
Other | | 80,237 | | 75,791 | | 113,044 | | 103,419 | | 245,825 | | 207,654 |
Total revenues | | 869,683 | | 658,865 | | 1,284,713 | | 1,021,774 | | 2,238,406 | | 1,993,168 |
| | | | | | | | | | | | |
Cost of product sold: | | | | | | | | | | | | |
Propane and other gas liquids sales | | 551,506 | | 376,236 | | 810,260 | | 589,893 | | 1,312,628 | | 1,188,057 |
Other | | 48,709 | | 47,437 | | 62,055 | | 56,634 | | 149,877 | | 120,863 |
| | | | | | | | | | | | |
Gross profit | | 269,468 | | 235,192 | | 412,398 | | 375,247 | | 775,901 | | 684,248 |
| | | | | | | | | | | | |
Operating expense (including $626 of non-recurring severance | | | | | | | | | | | | |
charges for the twelve month period ended January 31, 2013) | | 116,743 | | 105,599 | | 219,709 | | 202,033 | | 427,735 | | 397,861 |
Depreciation and amortization expense | | 20,643 | | 20,751 | | 40,858 | | 41,626 | | 82,576 | | 83,751 |
General and administrative expense (including $429 of non-recurring | | | | | | | | | | | | |
severance charges for the twelve month period ended January 31, 2013) | | 12,095 | | 10,190 | | 22,876 | | 18,964 | | 45,939 | | 36,372 |
Equipment lease expense Werbung Mehr Nachrichten zur Ferrellgas Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. |