Ferrellgas Partners (FGPR) 8 Mar 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Ferrellgas Partners Second Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Tamria Zertuche, Chief Executive Officer and President of Ferrellgas. Please go ahead.

Latif. you, Thank second our XXXX call. earnings Welcome quarter to fiscal Chief and President My name Ferrellgas. Officer Zertuche, Tamria is of Executive In the our base, meaning second diverse those our quarter, non-weather-dependent we took segments of retail advantage business. of customer Rhino in the and seasonal Also new tank propane business. opportunities exchange the market counter Blue headwinds our business the used a warmer advantage to to We by our than diverse offset core created normal QX. of our accomplished second quarter. they team in all proud and very am I the

the call the a over to several want I share from hand Mike, few to observations I past weeks. Before

First, on and Liquid in is by as I attendees propane inspired the at innovations Gas gathered discussed a was of spoke Association many XXX deliver We in across the I Over the the you February, attended and propane, in clean, which, the in great Washington, affordable fuel. that portable D.C. Innovation know, World shared industry. strengths forum. Summit. that from opportunities countries, Innovations

propane. to has distribution there attention the propane that up the The in other distribution also our this I make out always true plenty network. against system is industry, amazing that energy and more. take opportunity brave And propane the networks. elements, drivers built best that distribution the traffic landscape, opportunities for U.S. has is. the and to I call people, of people have that point opportunity that industry They will want our the stand the strong to the the

sources a Remember, there distribution ours. network are very like with few energy

single of lack of a and redundancies points have We failure.

when fail. there might is energy others Our

source. we and We energy great logistics are a company, technology-enabled a proud deliver

to over Chief for financial turn Financial the now the to the will floor quarter. Officer, Mike our Cole, go I Mike? results over

performance. made call. to uncertainties cause for that this joining anticipated risks, and during various and materially that Tamria, call and statements I'd some differ thank today's could actual other you, Thank performance be may forward-looking remind to everyone considered like from on us you factors

forward-looking purpose, this historical call that not are this statements. statements may statements For any made be during fact of to deemed be

from that You and the time other Form the as important these We required XXXX, information, and our documents in any Commission. forth latest discussed statements, to to are XX, by in filed are whether may September with and factors otherwise, and Exchange no on or Exchange of future as publicly filings our result with filed in These law. obligation Commission XX-K a statements time earnings forward-looking Securities undertake events update affected new Securities by except be release. set cautioned factors our

non-generally This to measures. the including accounting call includes most to in included the Exchange measures, financial our and Securities comparable filings with also various are Commission. accepted financial principles, The such GAAP related directly measures reconciliation disclosures non-GAAP

discuss for is this we to purpose that call the Additionally, XX, the of fiscal results note operations quarter second ended January of the XXXX.

was in during prices prior cost quarter were our fiscal this second relative a $XX.X the year which to Wholesale compared partially prior to in XXXX continue propane of product cost prices the revenues and period, offset to $XX.X million in of lower the led as decrease period. by of decrease and Revenues year sales. lower, million a be to

of profit XXXX fiscal for $X.X second or gross prior the decreased year result, million a As to X% quarter period. compared the

price the compared XX.X% year at quarter correlates and XX.X% price to supply points our market of of the the wholesale major propane. to change in Our the X gallon in price The prior partially XXXX period. per market second sales wholesale less wholesale fiscal averaged

As these previously the for both changes the decreases product revenue noted, impacted of cost period. and

prior X% year to XXXX the increased quarter or compared fiscal second the for gallon per period. Margin $X.XX

impact million of Colder or decreased second compared December impacted our temperatures. Propane XX.X January nation weather in fiscal offset experienced XXXX the and temperatures reporting every nearly site A in X% warmer above-average the the November quarter gallons monthly during period. quarterly record the warm sales to year as weather December. results volumes partially prior

We to maintenance $X $X.X of million in fuel due Rhino, $XX.X and customer growth vehicle second percent was costs of in as in a the which XXXX, by other in repairs, was increase attributable refurbishment for in partially increased $XX.X million of L.P. Operating XX% The second installation a respectively. increase fiscal for and an including operating $X.X net of X% Ferrellgas and the total to quarter fiscal an Blue of decrease million vehicle of costs, Partners, and offset million earnings trucks recognized related to the expense support $X.X costs, XXXX million to tank million revenue quarter. increase new expense of or primarily costs.

EBITDA, above, in noted $X.X million non-GAAP million million gross expense. administrative or primarily of by in attributable businesses, adjusting benefits the to relates to decreased for increase increase X% increase in million in administrative the decrease and $XXX.X due $X.X and $X Adjusted quarter. decrease the general ERP expense. operating compared a expense increase, [ prior $X.X $XXX.X profit million our the ] fiscal measure, and ongoing $X expense, second to to million fees and primarily in with implementation in general to The Of noted remaining million change system the million a was $X.X to operating, related financial quarter after the as settlements noncore and million above, legal this $X.X year

the turn over Tamria. now I'll to call

all has the our and one general the remarking we In record. Technology provided millions relationship ERP priority on advance as Ferrellgas navigating our a EBITDA, business feel Mike. really you, owners the that Thank of warmest employee business. managers. remains winters of and account new between strategic system. managers fiscal as quarter, such built while of implementation They new really gallons I been the second on our grew initiatives of And various design

efficiencies. to monitoring customer enhance use and We tank have course, our of and really of service digital welcome packets ongoing the

data management, manner. which minutes timely and As a allow for in having nationwide us miles a benefit turn customers our to deliver logistics product from company, we to and better really in efficient

the Tom benefit growth, fiscal quarter on over gas mountains by was XXX-mile Sierra our and through units. Eastern end advising acquired XX Propane years from propane in second at the Sierra In existing our support Matrix cultivated service acquired Sigler, owner, also storage strategic we additional This network. our complements conjunction Eastern California distribution area focus sale Group. with seller service will our the of great Markets The Capital with

the sleeve a become nationwide We commemorate grilling fans XXth birthday on celebration Chief honorary and rolling to addition XX sweepstakes our in ]. master out barbecue its anniversary participating this edition e-cookbook a Blue to an also other want receive XXth this opportunity recipes to [ Officer to fronts can enter Grilling Rhino in events. a up class to special recognize enthusiasts Blue to Rhino tank have is nationally view favorite of Grilling year, for occasion.

have hand questions Relations the basic over question. We of mailbox, it going to themes. a I'm Investor Mike some in received for have to our And and they couple first

Thank you, Tamria.

the to company. components. stronger plans specifically, its complex create and and our continues Tamria improve the are derisked to perform One address profile, our company of that to the or delivered capital about favorable more upon the inquiring structure referencing market conditions capital people to company's with and to relative structure. of combined The improvements credit capital some structure. And capital restrictive financial condition themes related have is XXXX. This opportunities These all financial may relates

any, X have about X% range to X to levels versus higher, Ferrellgas assessing created Ferrellgas' are trading current are ago. X% Secondary currently created the yields XX% notes what is market or opportunities, senior by that if on in restructuring the conditions. months

turn mailbox. it back up I'll you for topic the brought Tamria, that's the to in investor other

questions and expenses. think addressing And good Sure. There of job Mike did really both I a were of gallons some those. around

question So we answer fleet QX one a did quarter. highlight of implementations I'll they more last specific expenses because around the

we As need dependable vehicles people customer demand. know a to company, against our execute logistics our

investment the We the expense a maintenance, as to telematics back mitigation you. solution. fleet optimization submitted fleet the as have our any industry-wide now call box QX the a across We expenses. With to see that, this end of be logistics will to in It's via at back with our Latif, to do implemented But and assist entire in as our goals higher that, preventative may efficiencies. fleet I best-in-class to turn investorrelations@ferrellgas.com. for questions e-mail additional Relations call, before you, I Investor this mentioned announcement thank now Thank moderator. And you. fleet

today's you conference concludes participating. Thank This for call.

You disconnect. now may