Ferrellgas Partners (FGPR) 27 Sep 242024 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Ferrellgas Fourth Quarter 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 host today, Tamria Zertuche, President and CEO. Please go ahead.

quarter earnings fourth our to fiscal call. XXXX Welcome our and against their fourth overall fiscal to owners showcased quarter execute The ability employee manage initiatives. strategic our and we are It people year. responsible had this for is quarter that the our this and wins will quarter, our about growth you and the increase Tank due have experienced Like to business in the hear last Exchange we overall locations.

season, especially side was focused We this prep the next prior heating seasonal of segment. on for commercial year. the business, quarter team all fourth operations grew growing retail fourth in as Our Autogas fiscal our while compared the in quarter to

So our how focus we hear you business counter-seasonal able opportunities. will to through on do that were

also our You hear before, emergency about during support recent will response storms. and after

we normal serve only those communities not energy disrupt during also the business but when clear, during weather times events sources. other is to commitment operations, Our

proven Propane safety, our our Ferrellgas people, again and other not. available be are their company, the has it sources all results. to customers time energy on proud focus of and and and I am advantages committed when is our its to propane customers. provides

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

risks, I you and for thank various and some Tamria, you, other Thank Commission. factors performance. with to joining September actual time filed discussed cause and would time us factors XX, remind made this documents uncertainties all forward-looking materially call other These our Securities are and that considered from and today. Form during like could the differ anticipated from filed Exchange statements that XXXX, everyone performance in XX-K on may to to be

than XXXX. X the operations warm X% the that the weather is compared higher XX, than correlates fiscal to note or XX% decrease insurance drivers the fiscal sold full medical biggest and fiscal in fiscal July year was XX.X results year. XXXX this call fourth million and Weather we our normal to were with impacting the prior the of and decrease. quarter claims warmer Additionally, Unseasonably of warmer X% XXXX, gallons XXXX EBITDA ended for purpose in discuss which

to Additionally, in we claims compared paid million XXXX. medical fiscal insurance more $XX.X

will progress business we our become extent more efforts be an agnostic. by our weather, impacted are Although to in always weather making to

continues priority As owners a for the medical through encourages we cost wellness which health of program, escalate, to claims our strive employee make care. a preventative to

medical help performance. plan, a We recently and to planned broker also top ensure our continually evaluate selected we

types fiscal weather These We in continue the in side to side. more agnostic. strategically on and our tank respectively. increases investments exchange exchange investments of quarter on initiatives EBITDA brand our and specific Blue become Blue XXXX, business include Rhino and XX% focus to tank retail wholesale Strategic on efforts targeting locations fourth reflect the fiscal customer and Rhino for XX% in the

We locations compared added year over to for a XX% increase X,XXX tank exchange prior period. the

these from last a we contributed decreases with in areas and year. were which national our business see of inflation, gains of during more retail to fully As customer some customers the closings the to decrease continued effects by not offset fiscal footprint, in quarter,

of in locations X regions our did of coastal the and retail we opportunities. growing customers, augmentation autogas from However, our benefit in opening both of are business, which weather-agnostic

quarter fourth for the to decrease for flat of both X% quarter the fiscal was compared XXXX gallon the acumen. per due to respective XXXX fourth Margin million $X.X fiscal for pricing a an fiscal or of $XX.X segment was increase favorable year periods. prior million mix and profit Gross fiscal with and and

X% or of decreased the partially sold fourth of offset the as quarter. customers. in some or a in contributed additional million to gallons to and a by the we sold products closings million effects quarter $X.X continue Gallons fiscal during inflation, of or which X%, business for Cost retail $X.X X.X% was decrease decreased decrease see revenues by X.X which million

For Partners, In and fourth attributable $XXX.X million loss fiscal than to and XX% major we due attributable our recognized decreased supply Ferrellgas fiscal had XXXX, which XXXX, products or in This and $XX.X weather, as net cost $XXX.X the L.P. prices in normal previously propane retail was by quarter of and respectively. We of primarily respectively. $XXX.X $XX.X sold. of million, decrease points. revenues of decrease a $XXX.X L.P. was million X%, million fiscal partially wholesale net a XXXX customers in to X offset million to and warmer million 'XX lower earnings Partners, a of discussed, Ferrellgas or XXXX, at

a personnel administrative in increase expense. to other expense financial decrease The a non-GAAP adjustments incentive $X XX% in $XX in $X.X of a and increase For and of quarter. of million increases plant consisted decrease the adjusting in partially reduction $X.X compared a EBITDA, to million a million $XX.X the adjusted general decrease operating by in in the costs vehicle after year million operating in was $X.X for prior prior was million $X.X to in EBITDA increased or approximately decrease and to million administrative year primarily change in due million expense, and measure, accruals by expense $X costs. expense general period. $X.X million $X.X million quarter, primarily to offset million The in due in compared The

compared by $XX.X in million year million or For million EBITDA $XXX.X adjusted XXXX, fiscal XXXX. XX% to fiscal to $XXX.X decreased

adjusting in in EBITDA decrease. in and a and $XX.X $XX.X In addition increase administrative million general the expense decrease decrease million in for $XX.X contributed adjustments to million decrease previously after a the expense to a $X.X profit gross operating noted, million

$X.X offset expense, decrease and million and plan comprised operating in paid million incentive and a the self-insured claims million in of million increase costs. change $XX.X costs, The payroll Increases for of accruals, in increases was in driven $XX.X partially in $X.X expense medical vehicle our personnel in million expense plant by expense. other in $X.X under insurance benefits personnel by

million and reduction The incentive processing in million increase was costs. in telematics in in primarily increases was platform, vehicle costs and was a network less accruals. costs payment of by due increases by related partially were and general $X.X to decrease decrease to card repairs million property related and The and increases and plant increase partially a administrative fees other charges new in in to a offset primarily decrease due in These for which million in fees. general fuel due legal expense miscellaneous expense, maintenance technology, liability offset of to credit The $X.X expense million in to $X.X repairs $X.X cost. primarily for $X.X a and

will Tamria. I call back turn the now over to

their improvements chain. nationwide to excelled That This areas want highlighting improved I really by across of flow supply of capital network. our management expenditures. chain the team and supply efficiencies in in start days Rhino free decreased its in creating cash the made and multiple has supply removed Blue

As Category victims we were see the Blue first provide without Relief storm to national and power. providing to tanks steps up in for for easily help landfall readily the Barbecue Texas made power July hand events, and responders energy those meals X in support Rhino in a with accessible those network propane an source storm, outages storms to Ferrellgas Hurricane and Beryl, other providing company to distribution addition fuel and portable by Operation on in storm which from its fuel. Both by of response to and impacted XXXX,

used of the to Another of installation help year. school example to become the 'XX, great is pumps, our completed XXX,XXX be July this progress business. In in nearly we tank weather-agnostic autogas gallon students growth an of more in our will transport Autogas which to XX,XXX

business weather the of the customers such safe acquisitions California. our Eastern other in for last mitigate of years. and This invest technology Sierra Propane 'XX propane the specific acquisition regions. we the acquisition have company areas fiscal We work country made our continue our to initiatives outside expand proud throughout of I'm to efficient to XX and country the our to to of of Strategic is largest as in and in in in owners we Midwest, employee a and conditions the timely helped ways many manner. deliver its the in impact

strategic very to improve. our to partnerships, best serve customers continually telematics, Our our our vendor monitors, tank we do and to

moderator turn I over move call now the call. section back our we to as the to will our live of Q&A

into inbox this through some our questions our in Mike Tamria is Zertuche, that and inbox. received received We've and will morning. we my we questions have Cole of Good go and the

update the on question, case. can Eddystone provide first an you The

appealed the District of court to July, appeals. we Court's Circuit the Third In judgment

to updates time, further at to XX-K. no you provide disclosures our have the direct we and this in We

an provide March when the renewed. XXXX, to current credit be expiring you With in it of revolving update as will facility can

remain date our the specific bank working a supportive. existing targeted and have group, do We We've been not they extension. with for

credit will certainly We them recognize and March the to and coming to facility. appreciate of with the maturity, revolving the amend one weeks. the does and it continue top XXXX that have We work is for priorities company it over the extend existing

XXXX units, came And structure? the the senior handle B how related the the the our notes. question is the that question to capital notes, of that, senior Another to the units relates in is, and preferred refinancing company 'XX to planning

with those talked past, lot we've one a are have intertwined of capital complex provisions are As they about and the securities securities, in that another.

regarding help outside capital those review us with for an bank We'll our their to capital into securities. be to We recommendations structure. our recommendations we holders have account engaged and investment and taking make group bank discussions continue as of them

the question the which amendment on the facility, Class question make for and a Class or fourth moving remove address funds the amendment MLP, between and this amendment facility distributions the issue was to can OLP. is, received MLP funds to Will no about credit or restriction the the company the to longer We A means the this units. between B in restriction? Ferrellgas the restricted units, fourth moving The

-- will group. the that bank is, through with the the Our response with that be process extension we'll And and work as it's determined work amendment bank we group. to

that we we'll view we And been -- restrictions whether take be to moment through not as we company, process. amendment work supportive through of a the to MLP on they bank just on will The consideration OLP that expect third-party the continue I group to or the too or those investment the in a mentioned and assist early eliminated. I know our from ago, or supportive make the note cash as bank into take But has process. revised work recommendations to that will it's to be them distributions will process. again,

of timing there an question The changed, units. Eddystone that is, B ruling how thinking question our ruling, came and all? -- Class has the In or on Class light whether was in a regarding has impact Eddystone your B not or the thinking light at in redemption it if the around of

be meet at could our B time, pursuant XXXX. to at Class up units. into time XXXX. of units be The converted until sorry, the be any can of Class provided Well, converted we of redeemed any can March to they financing they redemption March conversion March 'XX, threshold up After A I'm documents,

and Our have the strong pending we noted noted you comment we been for to in B advised I variable position regarding another And we and policy changed Eddystone disclosures. conversion has adds XX-Q process. redemption that dynamics. to our the is I'll Class our not certainly XX-K, litigant, the units earlier, as as and not grounds that to appeal. ruling the The But have on refer

beginning displays, all communities do on employees ready only the little routes. break the of We our weekend they for communities the to landfall Blue Both questions the and that question proud for had our assessments, were prioritize been a preparing we and our our the and answer I'm business Rhino for we'll Blue not preparing can take around yards storm generator preparing of supply the also of and storm. good restock prepare really about very the retail for business. some Helene. Hurricane environment. and getting maybe Rhino the the A of all based them also since but that So work

community assess were routes really first drivers, foremost. our road storm our damage we landfall safety of and areas and our Obviously, of made as later up all the prioritized impacted open out the morning, address conditions to there then as running. get yesterday of we'll As landfall, today, back needs. the And and

XX how a and had the impacted exports propane months they on that question in also next We forecasted? be based increase the markets might around the supply XX domestic over to are

not expect any plenty U.S. We the of the impact markets. on do propane. has domestic The

from company regarding On September Ferrellgas, recent is X, received Moody's? taken? downgrade. address we downgrade the the How downgraded a actions What Moody's planning being and question to the are

we process the potential Moody's as as amendment capital don't there to concerns and structure, do cite concerns, for and contributing of that you like banker be costs outside any bonds, posting to The work with Eddystone, extension the continue from to When take complex noted, on that and our some as banks. We with process They our with factors the that -- liquidity the to the courts. for through as addressed be the go credit associated opinion. we immediate appeal those with the won't will we time we the appeal Eddystone work and things expect investment through downgrade. expect the decisions any appeal work

tied is structure, the credit we're In cited addressing terms of our that XXXX I again, believe, maturity. the primarily to the tied other concerns Moody's, banker. complex facility the capital with in revolving investment March issues liquidity to, And by

regarding That not the viability. question downgrade an has concern the company's and that or financial ties a company's into or we revolver whether impact the that going maturity received on

our Again, discussions that access auditors revolver or as markets. result as and guidance and whether XX-month the provided bank we company. the in cash, I capital We company liquidity a let maturity, gets to as we accounting back and we need well XX-K, the in our a a say assess me feel is and with support and -- that noted with me support continue we the when within the through access We the work up, in feel confident our through to risk let process comfortable market the banks. going financial are and concern. to ability about to based they've auditors, the good to had jeopardizes discussions that about not And a on concern creates going to the to first talked

our a there acquisitions -- question I also think around on that was acquisition. and impact

is So and always opportunities that as market obviously, Ferrellgas arise, we're for the acquisition still engaged fit. in looking

acquisitions, unfolding as the We're them XX are year, this very good very in that. proud Again, we past acquisition of Our we finding we last at our made synergies. today, and announced years. largest

around comparison to Blue capital create was continue do to this expect again And opportunities. There's kind want in performance about future we And been a few chain in this we questions demonstrated out think Rhino by expenditures 'XX. that of the really XXXX call and year. acumen how positive to supply I this seeded year

to think there's want 'XX 'XX questions just talk kind to I it of 'XX. summarize about compared about up several because around we to how as

summarize autogas are who as weather medical and inflationary believe we then we've assets segments. heat In X headwinds, And this is we 'XX impacted kind basically in their a issues, or regional which construction pressures, closed call our of anomaly; large which previous, in doors. were anomalies; few accounts repositioning earnings claim those and our discussed main also and

instrumental And saved we in expense I we managing program. They're diesel want skip operating out reduction expense. instance, from techs XX to stops. growth over our are we training call our for graduated And to due service in that strategy.

we we Finally, that. there. or X in our you I back to side? Southeast major region think growth sorry, that opened and go had answers offices to Southwest Michael, financial the I a region, want

Yes, 'XX been regarding expectations around EBITDA. some questions there year fiscal has

to you filings key the would discuss we don't As previously, done drivers. EBITDA to identify direct and our but I market, we where XX-Q and provide forecast we've XX-K performance

is variables normalized those disclosures, and your company. I to use identify up the a can performance do the in on EBITDA You you think estimates the look the at with you prior they key historical the and those what performance periods. for number think come

mind 'XX fiscal get around your year you help should for like. should outlook look the what that So

through. And thanks for looking

think we are I all comments. we that they what of addressed we've additional previously to What some done, have about. talked comments the come have there but are related in,

So to and we not going back those. are go repeat

we're done. think I

support. in. it Ferrellgas. you. appreciate employees And Thanks I'll very back I the We of think for joining much you proud we're done. your all the to over to so We're moderator. Thank turn of

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

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