OREANDA-NEWS. Ferrellgas Partners, L.P. today reported financial results for its third fiscal quarter ended April 30, 2016. The Company reported Net earnings attributable to Ferrellgas Partners, L.P. of $18.7 million, compared to $35.8 million for the quarter ended April 30, 2015.

Adjusted EBITDA was $108.0 million, an increase of 12% over the same quarter last year, including $25.2 million of Adjusted EBITDA from the Bridger Logistics acquisition which was completed in June of 2015. 

“Like many in our industry, we continue to be impacted by the extremely warm temperatures nationwide, and the downturn in the commodities market, including lower crude oil prices and project delays and cancellations,” said Stephen L. Wambold, President and Chief Executive Officer. “We experienced an average of 18% warmer weather than normal during the quarter, which reduced heating needs across all our geographies and significantly drove down propane segment volumes and revenues. Notwithstanding these operating conditions, we are pleased to have delivered a 12% year-over-year increase in Adjusted EBITDA.”

Mr. Wambold continued, “Bridger continues to perform well, providing gross profits and adjusted EBITDA in our third quarter that more than offset decreases in our water solutions and propane segments. Importantly, we remain focused on reducing expenses and continue to evaluate value-enhancing organic and external growth opportunities to drive growth and mitigate the impact of the challenging operating environment. We expect our distributable cash flow coverage to rebound to more than 1.0x by the end of 2016, with leverage dropping below 5.0x. We continue to execute against our strategic plan and remain confident that we have the initiatives in place to create value for all Ferrellgas unitholders.”

Continued strong expense controls in the Propane and related equipment sales segment and strong results from the Midstream Crude Oil segment helped offset the impact of elevated temperatures, which were 18% warmer than normal and 21% warmer than the prior year period.

Even though there were strong expense controls, due to the Bridger Transaction, Operating expense and General and administrative expense for the third fiscal quarter increased to $115.1 million and $12.4 million respectively.

Interest expense totaled $34.4 million for the third fiscal quarter, compared to $23.5 in the prior year period, primarily due to $500 million of notes issued in connection with the Bridger acquisition in June 2015.

Net earnings for the quarter were $18.9 million, or $0.19 per common unit, compared to net earnings of $36.2 million, or $0.43 per common unit, in the prior year period. The decrease in net earnings is primarily related to the impact of warm weather on our propane and related equipment sales segment and the increases in Depreciation and amortization expense and interest expense both primarily related to the acquisition of Bridger.

Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., and subsidiaries, serves propane customers in all 50 states, the District of Columbia, and Puerto Rico, and provides midstream services to major energy companies in the United States. Ferrellgas employees indirectly own 22.8 million common units of the partnership, through an employee stock ownership plan. Ferrellgas Partners, L.P. filed a Form 10-K with the Securities and Exchange Commission on September 29, 2015. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at www.ferrellgas.com.

 

   
FERRELLGAS PARTNERS, L.P.  AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
(in thousands, except unit data)  
(unaudited)  
           
           
ASSETS   April 30, 2016   July 31, 2015  
           
Current Assets:          
Cash and cash equivalents   $   6,266     $   7,652    
Accounts and notes receivable, net (including $134,538 and 123,791 of          
accounts receivable pledged as collateral at April 30, 2016          
and July 31, 2015, respectively)     192,704       196,918    
Inventories     87,739       96,754    
Prepaid expenses and other current assets     35,857       64,285    
Total Current Assets     322,566       365,609    
           
Property, plant and equipment, net     981,453       965,217    
Goodwill     446,333       478,747    
Intangible assets, net     551,372       580,043    
Other assets, net     70,280       74,440    
Assets held for sale     845         -    
Total Assets   $   2,372,849     $   2,464,056    
           
           
LIABILITIES AND PARTNERS' CAPITAL          
           
Current Liabilities:          
Accounts payable   $   78,063     $   83,974    
Short-term borrowings     9,071         75,319    
Collateralized note payable     77,000       70,000    
Other current liabilities     161,394       180,687    
Total Current Liabilities     325,528       409,980    
           
Long-term debt (a)     1,960,331       1,804,392    
Other liabilities     33,347       41,975    
Contingencies and commitments          
           
Partners' Capital:           
Common unitholders (98,002,665 and 100,376,789 units outstanding at           
April 30, 2016 and July 31, 2015)     122,740       299,730    
General partner unitholder (989,926 and 1,013,907 units outstanding at          
April 30, 2016 and July 31, 2015)     (58,829 )     (57,042 )  
 Accumulated other comprehensive loss     (12,709 )     (38,934 )  
Total Ferrellgas Partners, L.P. Partners' Capital     51,202       203,754    
Noncontrolling Interest     2,441       3,955    
Total Partners' Capital     53,643       207,709    
Total Liabilities and Partners' Capital   $   2,372,849     $   2,464,056    
           
(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.