Ferrellgas Partners' Second-Quarter Results Improve Substantially; Adjusted EBITDA Increases 33%; Distributable Cash Flow Up

 Ferrellgas Partners' Second-Quarter Results Improve Substantially; Adjusted
             EBITDA Increases 33%; Distributable Cash Flow Up 50%

PR Newswire

OVERLAND PARK, Kan., March 7, 2013

OVERLAND PARK, Kan., March 7, 2013 /PRNewswire/ -- Ferrellgas Partners, L.P.
(NYSE: FGP), one of the nation's largest distributors of propane, today
reported that results for the fiscal 2013 second quarter ended January 31
improved substantially, reflecting improved retail margins.

Adjusted EBITDA increased 33% to $116.1 million, from $87.5 million in the
year-earlier quarter. Distributable cash flow to equity investors rose 50% to
$93.1 million, from $62.2 million a year ago.

As expected revenues declined to $658.9 million, from $829.3 million,
primarily attributable to a 39% decrease in the wholesale cost of propane from
the year ago quarter. Benefiting from lower wholesale propane costs, gross
profit rose 15% to $235.2 million or $.79 per gallon sold, in-line with both
the trailing six and 12-month performance. Net earnings climbed 60% to $58.8
million, or $0.73 per unit, from $36.8million, or $0.47 per unit.

During the second quarter, retail propane gallons sales were off less than 1%
to 221.8 million gallons, while total volume sales declined approximately 2%
to 298.5 million. The partnership continues to focus on more efficient and
profitable deliveries of propane to its customers helping to offset the impact
of unfavorable weather and economic conditions.

Operating expenses rose modestly to $105.6 million from $103.7 million, while
general and administrative expense decreased modestly to $10.2 million.
Excluding performance based incentive accruals, net operating and general and
administrative expenses were down nearly $1.0 million, in-line on a
cents-per-gallon sold basis with prior year results. Equipment lease expense
rose to $3.8 million from $3.5 million.

Interest expense continued to reflect the partnership's lower cost of
borrowing, declining to $22.6 million, from $24.0 million the year before.

President and Chief Executive Officer Steve Wambold commented, "Second-quarter
results represented the third consecutive quarter of positive momentum despite
unusually warm weather. Temperatures during the quarter were slightly cooler
than in the prior year, but still substantially warmer than normal. For the
quarter, temperatures were more than 10% warmer than normal and in the key
heating month of December temperatures were 1% warmer than the prior year or
nearly 15% warmer than normal.

"For the trailing 12 month period, our Adjusted EBITDA performance was $237
million. As we continue to meet and exceed our operational objectives this
year, we feel comfortable in increasing our previously forecasted fiscal 2013
Adjusted EBITDA range to $245 million to $260 million." Adjusted EBITDA in
fiscal 2012 was $193.1 million.

The partnership remains focused on growth both through organic and acquisition
efforts, announcing three acquisitions in fiscal 2013 thus far. "The
acquisition environment remains attractive, with strong interest from
sellers," commented Wambold.

For the first half of fiscal 2013, Adjusted EBITDA rose 42% to $147.7 million
from $103.9 million. Net earnings totaled $41.0 million, or $0.51 per unit,
versus $3.9 million, or $0.05 per unit. Revenue declined 25% to $1.0 billion
primarily on lower wholesale propane costs, with gross profit increasing 13%
to $375.2 million on higher retail margins.

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, 2012, 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 BALANCE SHEETS
(in thousands, except unit data)
(unaudited)
ASSETS                           January 31, 2013        July 31, 2012
Current Assets:
 Cash and cash equivalents      $                 $     8,429
                                 12,109
 Accounts and notes receivable,
net (including $224,428 and
$121,812 of
 accounts receivable pledged
as collateral at January 31,
2013
 and July 31, 2012,           238,558                 124,004
respectively)
 Inventories                    130,073                 127,598
 Prepaid expenses and other     30,069                  29,315
current assets
 Total Current Assets         410,809                 289,346
Property, plant and equipment,   610,984                 626,551
net
Goodwill                         248,944                 248,944
Intangible assets, net           183,659                 189,118
Other assets, net                48,603                  43,320
 Total Assets                 $     1,502,999     $ 1,397,279
LIABILITIES AND PARTNERS'
DEFICIT
Current Liabilities:
 Accounts payable               $                  $    47,824
                                 103,379
 Short-term borrowings          72,678                  95,730
 Collateralized note payable    134,000                 74,000
 Other current liabilities      122,915                 122,667
 Total Current Liabilities    432,972                 340,221
Long-term debt (a)               1,081,388               1,059,085
Other liabilities                30,960                  25,499
Contingencies and commitments    -                       -
Partners' Deficit:
Common unitholders (79,015,619
and 79,006,619 units outstanding
at
 January 31, 2013 and July 31, 20,673                  43,701
2012, respectively)
General partner unitholder
(798,138 and 798,047 units
outstanding at
 January 31, 2013 and July 31, (59,863)                (59,630)
2012, respectively)
Accumulated other comprehensive (4,547)                 (13,159)
loss
 Total Ferrellgas Partners,   (43,737)                (29,088)
L.P. Partners' Deficit
 Noncontrolling Interest      1,416                   1,562
 Total Partners' Deficit      (42,321)                (27,526)
 Total Liabilities and        $     1,502,999     $ 1,397,279
Partners' Deficit
(a) The principal difference between the Ferrellgas Partners, L.P. balance
sheet and that of Ferrellgas, L.P., is $182 million of 8.625% notes 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, SIX AND TWELVE MONTHS ENDED JANUARY 31, 2013 AND 2012
(in thousands, except per unit data)
(unaudited)


                Three months        Six months ended      Twelve months ended
                ended
                January 31          January 31            January 31
                2013      2012      2013       2012       2013       2012
Revenues:
 Propane and   $         $                    $          $          $
other gas       583,074   779,567   $ 918,355  1,293,786  1,785,514  2,363,241
liquids sales
 Other         75,791    49,705    103,419    73,912     207,654    186,488
 Total       658,865   829,272   1,021,774  1,367,698  1,993,168  2,549,729
revenues
Cost of
product sold:
 Propane and
other gas       376,236   600,600   589,893    1,003,722  1,188,057  1,797,164
liquids sales
 Other         47,437    24,468    56,634     31,094     120,863    104,206
Gross profit   235,192   204,204   375,247    332,882    684,248    648,359
Operating
expense
(including
$403 of
non-recurring
severance
 charges for
the twelve
month period    105,599   103,741   202,033    203,152    397,861    407,611
ended January
31, 2013)
Depreciation
and             20,751    21,042    41,626     41,716     83,751     83,837
amortization
expense
General and
administrative
expense
(including
$279 of
non-recurring
 severance
charges for
the twelve      10,190    10,344    18,964     19,708     36,372     50,476
month period
ended January
31, 2013)
Equipment       3,827     3,528     7,750      7,057      15,341     14,300
lease expense
Non-cash
employee stock
ownership plan  7,447     1,937     9,849      4,516      14,773     9,297
compensation
charge
Non-cash stock
and unit-based  3,120     1,565     6,212      4,482      10,573     5,889
compensation
charge (b)
Loss (gain) on
disposal of     2,120     523       2,391      832        7,594      4,094
assets and
other
Operating       82,138    61,524    86,422     51,419     117,983    72,855
income
Interest        (22,619)  (24,046)  (45,054)   (47,433)   (90,875)   (96,046)
expense
Loss on
extinguishment  -         -         -          -          -          (10,513)
of debt
Other income    241       80        332        47         791        348
(expense), net
Earnings
(loss) before   59,760    37,558    41,700     4,033      27,899     (33,356)
income taxes
Income tax      917       771       653        141        1,640      666
expense
Net earnings    58,843    36,787    41,047     3,892      26,259     (34,022)
(loss)
Net earnings
(loss)
attributable    636       413       498        122        432        (58)
to
noncontrolling
interest (a)
Net earnings
(loss)
attributable    58,207    36,374    40,549     3,770      25,827     (33,964)
to Ferrellgas
Partners, L.P.
Less: General
partner's
interest in     3,138     364       405        38         258        (339)
net earnings
(loss)
Common
unitholders'    $        $        $         $       $        $ 
interest in     55,069    36,010    40,144     3,732     25,569    (33,625)
net earnings
(loss)
Earnings
(loss) Per
Unit
Basic and
diluted net
earnings        $      $      $       $      $      $   
(loss) per      0.70      0.47      0.51       0.05      0.32      (0.45)
common
unitholders'
interest
Dilutive
effect of       0.03      -         -          -          -          -
two-class
method (c)
Adjusted net
earnings
(loss) per      $      $      $       $      $       $    
unit available  0.73      0.47      0.51       0.05      (0.04)    1.05
to common
unitholders
Weighted
average common  79,015.6  76,401.6  79,014.4   76,184.0   78,995.4   75,373.4
units
outstanding





Supplemental Data and Reconciliation of Non-GAAP Items:
                 Three months ended   Six months ended    Twelve months ended
                 January 31            January 31          January 31
                 2012       2011       2012      2011      2013      2012
Net earnings
(loss)           $         $         $        $      $       $ 
attributable to  58,207     36,374     40,549    3,770    25,827   (33,964)
Ferrellgas
Partners, L.P.
 Income tax     917        771        653       141       1,640     666
expense
 Interest       22,619     24,046     45,054    47,433    90,875    96,046
expense
 Depreciation
and              20,751     21,042     41,626    41,716    83,751    83,837
amortization
expense
EBITDA           102,494    82,233     127,882   93,060    202,093   146,585
 Loss on
extinguishment   -          -          -         -         -         10,513
of debt
 Non-cash
employee stock
ownership plan   7,447      1,937      9,849     4,516     14,773    9,297
compensation
charge
 Non-cash
stock and
unit-based       3,120      1,565      6,212     4,482     10,573    5,889
compensation
charge (b)
 Loss (gain)
on disposal of   2,12     523        2,391     832       7,594     4,094
assets and       0
other
 Other
(income)         (241)      (80)       (332)     (47)      (791)     (348)
expense, net
 Nonrecurring   -          -          -         -         1,055     -
severance costs
 Nonrecurring
litigation
reserve and      537        892        1,225     892       1,225     12,345
related legal
fees
 Net earnings
(loss)
attributable to  636        413        498       122       432       (58)
noncontrolling
interest
Adjusted EBITDA  116,113    87,483     147,725   103,857   236,954   188,317
(d)
 Net cash
interest         (21,123)   (22,724)   (42,198)  (44,755)  (85,043)  (89,726)
expense (e)
 Maintenance
capital          (3,255)    (3,511)    (7,530)   (8,838)   (14,736)  (16,427)
expenditures
(f)
 Cash paid for  (27)       (87)       (45)      (90)      (719)     (766)
taxes
 Proceeds from  1,392      1,011      6,163     2,374     9,531     5,168
asset sales
Distributable
cash flow to     $         $         $         $       $        $  
equity           93,100     62,172     104,115   52,548   145,987  86,566
investors (g)
Propane gallons
sales
 Retail -
Sales to End     221,796    223,977    346,679   356,825   609,172   642,445
Users
 Wholesale -
Sales to         76,728     81,129     131,283   144,550   245,545   261,893
Resellers
 Total propane  298,524    305,106    477,962   501,375   854,717   904,338
gallons sales
(a) Amounts allocated to the general partner for its 1.0101% interest in the
operating partnership, Ferrellgas, L.P.
(b) Non-cash stock and unit-based compensation charges
consist of the following:
                 Three months ended   Six months ended    Twelve months ended
                 January 31            January 31          January 31
                 2013       2012       2013      2012      2013      2012
 Operating  $      $      $       $      $      $    
expense          593        673        1,304     1,840    2,211   2,335
 General
and              2,527      892        4,908     2,642     8,362     3,554
administrative
expense
 Total      $        $        $       $      $      $    
                 3,120     1,565     6,212     4,482   10,573    5,889

    FASB guidance regarding participating securities and the two-class method
    requires the calculation of net earnings (loss) per common unitholders'
    interestfor each period presented according to distributions declared and
    participation rights in undistributed earnings, as if all of the earnings
    or loss for the period had been distributed. In periods with undistributed
    earnings above certain levels, the calculation according to the two-class
(c) method results in an increased allocation of undistributed earnings to the
    general partner and a dilution of the earnings to the limited partners.
    Due to the seasonality of the propane business, the dilution effect of the
    guidance on the two-class method typically impacts only the three months
    ending January 31. This guidance did not result in a dilutive effect for
    the three months ended January 31, 2012 or for the six and twelve months
    ended January 31, 2013 and 2012.
    Adjusted EBITDA is calculated as earnings (loss) before income tax
    expense, interest expense, depreciation and amortization expense, loss on
    extinguishment of debt, non-cash employee stock ownership plan
    compensation charge, non-cash stock and unit-based compensation charge,
    loss (gain) on disposal of assets and other, other income (expense), net,
    nonrecuring serverance costs, nonrecurring litigation reserve and related
    legal fees and net earnings (loss) attributable to noncontrolling
(d) 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 makes it easier to compare its results with
    other companies that have different financing and capital structures. This
    method of calculating Adjusted EBITDA may not be consistent with that of
    other companies and should be viewed in conjunction with measurements that
    are computed inaccordance with GAAP.
    Net cash interest expense is the sum of interest expense less non-cash
(e) interest expense and other income (expense), net. This amount includes
    interest expense related to the accounts receivable securitization
    facility.
(f) Maintenance capital expenditures include capitalized expenditures for
    betterment and replacement of property, plant and equipment.
    Management considers Distributable cash flow to equity investors a
    meaningful non-GAAP measure of the partnership's ability to declare and
(g) pay quarterly distributions to common unitholders. Distributable cash flow
    to equity investors, as management defines it, may not be comparable to
    distributable cash flow or similarly titled measures used by other
    corporations and partnerships.

SOURCE Ferrellgas Partners, L.P.

Website: http://www.ferrellgas.com
 
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