Ferrellgas L P 8K Ferrellgas Partners, L.P. Reports Second Quarter Fiscal 2023 Results | FGP 10 Mar 23

Exhibit 99.1

FERRELLGAS PARTNERS, L.P. REPORTS

SECOND QUARTER FISCAL 2023 RESULTS

•	Financial Highlights

•

Revenues for the second fiscal quarter were flat with a slight decrease of $1.0 million compared to the prior year period.

•

Gross Profit for the second fiscal quarter increased $34.0 million, or 11%, compared to the prior year period.

•

Margin per gallon for the second fiscal quarter increased $0.13, or 12%, compared to the prior year period.

•

Net earnings attributable to Ferrellgas Partners, L.P. decreased $10.3 million, or 10%, compared to the prior year period.

•

Adjusted EBITDA increased by $4.5 million, or 3%, compared to the prior year period.

•	Company Highlights

•

Ferrellgas welcomed Rez-Bear Propane, located in Harris, New York, as its newest acquisition to the Ferrellgas Family during the second fiscal quarter.

•

Blue Rhino became the official propane sponsor of the Steak Cookoff Association for 2023.

•

In the second fiscal quarter, 113 employees received Ferrellgas Flame Awards for exemplary performance in the areas of Safety, Customer Service, Innovation, and Leadership.

Liberty, MO., March 10, 2023 (GLOBE NEWSWIRE) – Ferrellgas Partners, L.P. (OTC: FGPR) (“Ferrellgas” or the “Company”) today reported financial results for its second fiscal quarter ended January 31, 2023.

“The people of Ferrellgas work together each day to build on more than 80-year-old history of innovation to grow via one of the best logistics infrastructures in the business,” said James E. Ferrell, Chief Executive Officer and President. “There is nothing better than the footsteps of an owner to grow a business, and our almost 4,500 employee-owners are unmatched at finding opportunities to grow demand for clean, portable, and affordable propane.”

Revenues were flat with a slight decrease of $1.0 million for the second fiscal quarter compared to the prior year period. Gallons sold decreased 1%, or 2.6 million gallons, compared to the prior year second fiscal quarter.

Gross profit increased $34.0 million, or 11%, for the second fiscal quarter. Cost of sales was favorable with a decrease of $35.0 million, or 9%, for the second fiscal quarter. Margin per gallon increased by $0.13, or 12%, compared to the prior year period. The Company continues to realize cost savings through its asset utilization management and redeployment of tanks to locations with higher usage statistics.

Operating income per gallon decreased $0.05, or 10%, compared to the prior year period. Operating income for the second fiscal quarter decreased $12.9 million, or 10%, compared to the prior year period. Results were impacted by higher fuel costs and fleet charges related to maintenance and repairs.

For the second fiscal quarter 2023 and 2022, the Company reported net earnings attributable to Ferrellgas Partners, L.P. of $98.1 million and $108.4 million, respectively. Adjusted EBITDA, a non-GAAP financial measure, increased by $4.5 million, or 3%, to $155.9 million in the second fiscal quarter 2023 compared to $151.4 million in the prior year period. The change was primarily due to EBITDA adjustments related to a decrease of $9.6 million in gain on assets sales and disposals and a $6.3 million increase in legal fees related to non-core businesses in addition to a $1.9 million decrease in interest expense.

“Our Company shows its appreciation to its most valuable resource, our employee-owners, in many ways throughout the year. Our employees also choose to appreciate each other. They do this by way of our Ferrellgas Flame award in the categories of Safety, Customer Service, Innovation, and Leadership. Over 113 employees were celebrated this quarter,” Ferrell added. “Additionally, hundreds of our hard working, dedicated employees gathered to celebrate via a facilitated zoom event this holiday season. I could not be more proud of our company and our willingness to come together in work and in appreciation.”

The Company announced Blue Rhino’s propane sponsorship of the Steak Cookoff Association (“SCA”) for 2023. The SCA is the world’s largest grilling competition for backyard chefs with 650 events scheduled this year in 46 states and 15 countries. Partnering with the SCA is a natural fit for Blue Rhino, the tank exchange brand of the Company.

On Friday, March 10, 2023, the Company will conduct a teleconference on the Internet at https://edge.media-server.com/mmc/p/38jfbo7w to discuss the results of operations for the second fiscal quarter ended January 31, 2023. The webcast of the teleconference will begin at 8:30 a.m. Central Time (9:30 a.m. Eastern Time). Questions may be submitted via the investor relations e-mail box at InvestorRelations@ferrellgas.com.

About Ferrellgas

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. Its Blue Rhino propane exchange brand is sold at more than 60,000 locations nationwide. Ferrellgas employees indirectly own 1.1 million Class A 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 30, 2022. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at www.ferrellgas.com.

Forward Looking Statements

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 include those discussed in the Form 10-K of Ferrellgas Partners, L.P., Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. for the fiscal year ended July 31, 2022, and in other documents filed from time to time by these entities with the Securities and Exchange Commission.

Contacts

Investor Relations – InvestorRelations@ferrellgas.com

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)


ASSETS	January 31, 2023		July 31, 2022

Current assets:
Cash and cash equivalents (including $11,130 and $11,208 of restricted cash at January 31, 2023 and July 31, 2022, respectively)	$	123,777	$	158,737
Accounts and notes receivable, net		233,625		150,395
Inventories		113,382		115,187
Price risk management asset		18,276		43,015
Prepaid expenses and other current assets		47,980		30,764
Total current assets		537,040		498,098

Property, plant and equipment, net		608,340		603,148
Goodwill, net		257,006		257,099
Intangible assets (net of accumulated amortization of $345,261 and $440,121 at January 31, 2023 and July 31, 2022, respectively)		108,407		97,638
Operating lease right-of-use assets		63,438		72,888
Other assets, net		66,762		79,244
Total assets	$	1,640,993	$	1,608,115


LIABILITIES, MEZZANINE AND EQUITY (DEFICIT)

Current liabilities:
Accounts payable	$	87,354	$	57,586
Broker margin deposit liability		11,450		32,805
Current portion of long-term debt		2,152		1,792
Current operating lease liabilities		24,559		25,824
Other current liabilities		210,397		185,805
Total current liabilities		335,912		303,812

Long-term debt		1,453,716		1,450,016
Operating lease liabilities		39,567		47,231
Other liabilities		33,605		43,518

Contingencies and commitments

Mezzanine equity:
Senior preferred units, net of issue discount and other offering costs (700,000 units outstanding at January 31, 2023 and July 31, 2022)		651,349		651,349

Equity (Deficit):
Limited partner unitholders
Class A (4,857,605 units outstanding at January 31, 2023 and July 31, 2022)		(1,167,936)		(1,229,823)
Class B (1,300,000 units outstanding at January 31, 2023 and July 31, 2022)		383,012		383,012
General partner unitholder (49,496 units outstanding at January 31, 2023 and July 31, 2022)		(70,695)		(71,320)
Accumulated other comprehensive (loss) income		(10,098)		37,907
Total Ferrellgas Partners, L.P. deficit		(865,717)		(880,224)
Noncontrolling interest		(7,439)		(7,587)
Total deficit		(873,156)		(887,811)
Total liabilities, mezzanine and deficit	$	1,640,993	$	1,608,115

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit data)

(unaudited)


	Three months ended				Six Months ended				Twelve months ended
	January 31,				January 31,				January 31,
	2023		2022		2023		2022		2023		2022
Revenues:
Propane and other gas liquids sales	$	651,886	$	657,504	$	1,037,730	$	1,030,208	$	2,025,401	$	1,889,577
Other		32,057		27,434		59,502		49,236		106,927		89,723
Total revenues		683,943		684,938		1,097,232		1,079,444		2,132,328		1,979,300

Cost of sales:
Propane and other gas liquids sales		347,492		383,213		560,573		603,751		1,130,826		1,077,283
Other		4,243		3,557		9,019		7,167		14,361		12,724

Gross profit		332,208		298,168		527,640		468,526		987,141		889,293

Operating expense - personnel, vehicle, plant & other		157,355		128,013		287,095		245,125		562,573		486,667
Operating expense - equipment lease expense		5,586		6,022		11,610		11,712		22,992		25,082
Depreciation and amortization expense		23,069		21,944		45,700		42,239		93,358		84,982
General and administrative expense		23,115		15,784		37,948		28,359		62,369		54,869
Non-cash employee stock ownership plan compensation charge		722		751		1,445		1,660		2,955		3,405
Loss (gain) on asset sales and disposals		290		(9,275)		1,970		(7,865)		3,217		(6,927)

Operating income		122,071		134,929		141,872		147,296		239,677		241,215

Interest expense		(23,177)		(25,139)		(48,186)		(50,534)		(97,745)		(117,329)
Loss on extinguishment of debt		—		—		—		—		—		(104,834)
Other income, net		544		43		1,013		4,307		1,539		4,937
Reorganization expense - professional fees		—		—		—		—		—		(9,243)

Earnings before income tax expense		99,438		109,833		94,699		101,069		143,471		14,746

Income tax expense		503		481		521		577		925		905

Net earnings		98,935		109,352		94,178		100,492		142,546		13,841

Net earnings (loss) attributable to noncontrolling interest^(a)		835		947		623		693		797		(342)

Net earnings attributable to Ferrellgas Partners, L.P.	$	98,100	$	108,405	$	93,555	$	99,799	$	141,749	$	14,183

Class A unitholders' interest in net earnings (loss)	$	11,557	$	13,001	$	8,592	$	9,354	$	(19,532)	$	(99,430)

Net earnings (loss) per unitholders' interest
Basic and diluted net earnings (loss) per Class A Unit	$	2.38	$	2.68	$	1.77	$	1.93	$	(4.02)	$	(20.47)
Weighted average Class A Units outstanding - basic and diluted		4,858		4,858		4,858		4,858		4,858		4,858

Supplemental Data and Reconciliation of Non-GAAP Items:


	Three months ended				Six Months ended				Twelve months ended
	January 31,				January 31,				January 31,
	2023		2022		2023		2022		2023		2022
Net earnings attributable to Ferrellgas Partners, L.P.	$	98,100	$	108,405	$	93,555	$	99,799	$	141,749	$	14,183
Income tax expense		503		481		521		577		925		905
Interest expense		23,177		25,139		48,186		50,534		97,745		117,329
Depreciation and amortization expense		23,069		21,944		45,700		42,239		93,358		84,982
EBITDA		144,849		155,969		187,962		193,149		333,777		217,399
Non-cash employee stock ownership plan compensation charge		722		751		1,445		1,660		2,955		3,405
Loss (gain) loss on asset sales and disposal		290		(9,275)		1,970		(7,865)		3,217		(6,927)
Loss on extinguishment of debt		—		—		—		—		—		104,834
Other income, net		(544)		(43)		(1,013)		(4,307)		(1,539)		(4,937)
Reorganization expense - professional fees		—		—		—		—		—		9,243
Severance costs include $49, $51 and $115 in operating expense for the three, six and twelve months ended January 31, 2023, respectively. Also includes $585, $593 and $610 in general and administrative expense for the three, six and twelve months ended January 31, 2023, respectively.		634		281		644		497		725		497
Legal fees and settlements related to non-core businesses		9,107		2,807		13,979		4,938		16,979		8,931
Net earnings (loss) attributable to noncontrolling interest ^(a)		835		947		623		693		797		(342)
Adjusted EBITDA ^(b)		155,893		151,437		205,610		188,765		356,911		332,103
Net cash interest expense^(c)		(20,265)		(27,620)		(42,871)		(46,739)		(95,498)		(106,933)
Maintenance capital expenditures^(d)		(4,375)		(4,060)		(10,207)		(7,639)		(19,587)		(23,348)
Cash paid for income taxes		(447)		(407)		(496)		(407)		(1,107)		(808)
Proceeds from certain asset sales		736		2,085		1,488		2,726		2,875		4,877
Distributable cash flow attributable to equity investors^(e)		131,542		121,435		153,524		136,706		243,594		205,891
Less: Distributions accrued or paid to preferred unitholders		16,222		17,989		32,473		33,322		64,438		57,346
Distributable cash flow attributable to general partner and non-controlling interest		(2,631)		(2,437)		(3,070)		(2,742)		(4,872)		(4,126)
Distributable cash flow attributable to Class A and B Unitholders ^(f)		112,689		101,009		117,981		100,642		174,284		144,419
Less: Distributions paid to Class A and B Unitholders ^(g)		—		—		—		49,998		49,998		49,998
Distributable cash flow excess ^(h)	$	112,689	$	101,009	$	117,981	$	50,644	$	124,286	$	94,421

Propane gallons sales
Retail - Sales to End Users		213,662		215,276		332,058		331,101		625,273		627,062
Wholesale - Sales to Resellers		60,945		61,957		104,814		106,012		205,318		217,195
Total propane gallons sales		274,607		277,233		436,872		437,113		830,591		844,257

(a)	Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, Ferrellgas, L.P.

(b)

Adjusted EBITDA is calculated as net earnings attributable to Ferrellgas Partners, L.P., plus the sum of the following: income tax expense, interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, loss (gain) on asset sales and disposals, loss on extinguishment of debt, other income, net, reorganization expense – professional fees, severance costs, legal fees and settlements related to non-core businesses, and net earnings (loss) attributable to noncontrolling 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 make it easier to compare its results with other companies that have different financing and capital structures.

Adjusted EBITDA, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of Adjusted EBITDA that will not occur on a continuing basis may have associated cash payments. Adjusted EBITDA should be viewed in conjunction with measurements that are computed in accordance with GAAP.

(c)	Net cash interest expense is the sum of interest expense less non-cash interest expense and other income, net. This amount includes interest expense related to the terminated accounts receivable securitization facility.

(d)	Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment, and may from time to time include the purchase of assets that are typically leased.

(e)

Distributable cash flow attributable to equity investors is calculated as Adjusted EBITDA minus net cash interest expense, maintenance capital expenditures and cash paid for income taxes plus proceeds from certain asset sales. Management considers distributable cash flow attributable to equity investors a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to equity investors, including holders of the operating partnership’s Preferred Units. Distributable cash flow attributable to equity investors, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow attributable to equity investors that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to equity investors should be viewed in conjunction with measurements that are computed in accordance with GAAP.

(f)

Distributable cash flow attributable to Class A and B Unitholders is calculated as Distributable cash flow attributable to equity investors minus distributions accrued or paid on the Preferred Units and distributable cash flow attributable to general partner and noncontrolling interest. Management considers distributable cash flow attributable to Class A and B Unitholders a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to Class A and B Unitholders. Distributable cash flow attributable to Class A and B Unitholders, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added to our calculation of distributable cash flow attributable to Class A and B Unitholders that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to Class A and B Unitholders should be viewed in conjunction with measurements that are computed in accordance with GAAP.

(g)	The Company did not pay any distributions to Class A Unitholders during any of the periods in fiscal 2023 or fiscal 2022.

(h)

Distributable cash flow excess is calculated as Distributable cash flow attributable to Class A and B Unitholders minus Distributions paid to Class A and B Unitholders. Distributable cash flow excess, if any, is retained to establish reserves, to reduce debt, to fund capital expenditures and for other partnership purposes, and any shortage is funded from previously established reserves, cash on hand or borrowings under our Credit Facility or, previously, under our terminated accounts receivable securitization facility. Management considers Distributable cash flow excess a meaningful measure of the partnership’s ability to effectuate those purposes. Distributable cash flow excess, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow excess that will not occur on a continuing basis may have associated cash payments. Distributable cash flow excess should be viewed in conjunction with measurements that are computed in accordance with GAAP.

Ferrellgas L P (FGP) 8-KFerrellgas Partners, L.P. Reports Second Quarter Fiscal 2023 Results