Ferrellgas Partners (FGPR) 20 Dec 242025 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Ferrellgas Partners First Quarter Fiscal 2025 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, please go ahead.

Welcome to our First Quarter Fiscal 2025 Earnings Call.

The first fiscal quarter again showcased our employee owners and their ability to manage and execute against our overall strategic initiatives, safety, strategic growth, operational excellence, and consolidation continues to be the bedrock of our strategy.

and our our team and market latest all our quarter, the focused storm share first looks while of managers the onboarding acquisition, sales today the and retail to future. was operations on response, for for In ways accounts grow national seasonal prep

serve, to continues the been want expenses has down and profit. we I On many side, in maybe first is result showcased this communities drive customers density we remarks ways the Blue the to commitment of to the our take areas. highlight a moment which best to that Rhino year-over-year our location growth highlighted but these from have quarter storm-impacted received in in that the increase

are in of we it dependable propane plentiful Their is to resilient infrastructure and clean-burning most. how to the network This and words propane showcases an quickly where needed propane able fortunate amounts U.S. move have efficiently confirm

second when are As the propane, assist energy systems other customers we fail. to able grid largest marketer of nationwide

advantage propane to looking and affordable the across these energy a is consideration key Ferrellgas are Energy to choice for existing needs. the consumers We nation, look take We a opportunities safe for and answer. to provides and support entire future. of new forward

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

today. thank Tamria, all you, joining and and morning, us you Good thank for

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

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

of price the in Coast addition per several $X.X The or in sold, decrease $X.X million due increase X% customers, gains. driven or gross revenues was volume offset million retail increased X% increased X% was increased gallons profit in decrease offset $X.X first partially for by West X.X% by primarily to key quarter. accounts gallon or wholesale cost the cost of or of increase Margin X%, Gallons a the fiscal Gross million by million profit X% or of and sold business $X.X $X.X program quarter fixed million residential quarter. products national our new in of the first X% decreased which a during $X.X for fiscal gallons in million sold. or decreased an sold by as on

severe and than was weather decrease prior an customer The driven to weather quarter, customers. inflation sales X% warmer driven of favorable to decrease contributed the addition increase to primarily small increase retail related wins. was in by exchange tank $X.X and million due growth, year new closings in organic XX% events business in wholesale that to resulting retail impact The in in the sold gallons by

nearly also this new as and year in of quarters preparations accounts net of selling $XX.X to X% prior fiscal tank an growth. Storm major a $XXX.X the Ferrellgas increased loss fiscal the million drove first exchange prior XXXX million attributable respectively. and XXXX, locations and quarter. quarter recognized LP to response exchange selling to the compared to quarter increase We locations during the year Partners compared first contributed of Tank X,XXX

in expense. and in adjusting core was for settlements operating After The $XXX operating $X.X million the legal fees businesses, expense was and quarter. in ongoing the had interest driven to expense $XXX.X due we for $X.X million expense related million The related million and change $X.X a million in administrative to increases administrative general expense, change of general litigation. to primarily $XXX.X Eddystone in and accrual million in by a $X decrease million

personnel Lower drove $X.X of vehicle expense in in in and due offset with decreases decrease technology benefits a our propane of cost million was in vacation cost million $X to was $X.X offset a in by million $X.X benefits cost. related and costs. $X.X in as to Personnel fuel benefits of increase variances telematics The plant expense and million compensation personnel prepare an and of primarily and Hurricanes adjustments. time tandem by Milton. in impacted rebate planned supply favorable a cost customers growth decrease and as million by million were The Helene well payroll due expense, workers' accrual payroll vehicle expense $X.X and partially increase expense consisted a the in increase over in other. to pharmacy increase to The for partially

in extended will of the liability the expenses, $X.X million the March On million $XXX in level of March in in related $X XX, $X.X a credit $X.X repairs, and December The increases the to million. the $X.X credit facility rent changes, XX, increase million conjunction debt XXXX, a we software was facility for and legal in in fourth million issuance credit XXXX. XXXX, with increase consists date facility, decrease the XX, fees The $XXX.X increase interest the credit $X.X consists amortization for from of million other cost to XXXX. million the credit reduced of million by commencement in telephone revolving change million related expense our letters commitment July to among amendment, be entered $X.X for general costs. On in into December of for fifth for that amendment to XXXX, of the revolving of fifth maturity X, facility and partially and which, offset effective expense a $X.X facility million amendment company's

in measure, million Adjusted or to operations for decrease primarily $X.X economic adequate increased cash a and gross company. weather-related will quarter. year revolving Tamria due counterbalance from after over in amended $XX.X to along with million in liquidity increase expense EBITDA financial safety, is $X.X $XXX.X a adjusting The next. was for to profit. million our million million in $XX.X provide increase technology, generation the credit expected, by intentionally We a operations non-GAAP The X% with investments prior general compared administrative which increase a to $X.X to factors adjustments and and facility million manage and people in and the cash EBITDA, go

will back Tamria. the I turn call now to

We that do historically Mike. this to quarter navigate, during first have the you, we Thank quarter and weather experienced no exception. events was

Milton impacted employee of behalf impacted both support afterwards. network, provide to our worked XXX owners and Helene within Hurricane Southeast. in Southeast, preparation upcoming the the on That's service the communities As across growth were areas. our and driving impacted double-digit in units Over storms extended these for

partnership This by served supply charitable and history organization with our hot propane X.X our our of these and first all there Operation cooks we part storms. be and commitment through Barbecue meals million were customers. almost our people that It's touched XX-year to Relief. Additionally, responders for to

Our delivered results. solid operational and initiatives excellence strategic

across We before our This to nation. to we driving in have are safety really highlight, strong regulatory highlighted, stated investments is skills workforce. logistics and it and technology, technology bolster our telematics and to leverage perform to I the and improve safety in fortunate that the will the continue allowing professional As platform Mike infrastructure, technology it best-in-class enhances fleet, outcomes we that our manage already and compliance. our us ensure

reduction needed as and where turns the route fuel they're reduced Telematics in idling to actionable us assets allows most. costs insights, into efficiencies, boosted focus data real-time such which time. This has our

continue team, deliver our We nationwide the opportunities Oklahoma however, footprint the continues to our to in strategic of Propane organic such core, base our as 'XX. development outside of realizing in our in customer Southeast, October acquisition Kilhoffer business growth of located and West in expand Midwest

the annually. from from Our Standing gallons key retail XXX,XXX accounts quarter national wins providing its wins, national team. their more business out strength than X of also are this account benefits

to storm well. tank response they as customer growth, prep quarter sales year, positive business fleet favorable organic the maintenance, optimized business returns added primarily and logistics, Blue the in are driven idling delivering also growth realized of exchange first during new improved Our Yes, wins. impacts this Rhino by compared but prior reductions,

made been EBITDA company's persistent have noted cylinder Blue as help above, extensive this management improvements our quarter Rhino's consistent last positive the investments adjusted inventory in These as and in into these and fiscal telematic initiatives the technology results. quarter well. Again, factored quarter. We highlighted favorably first

Ferrellgas. to In like call to closing, of employees the I'd attention

energy create one most of country. employees dependable networks in the Our the

the that company XX to an storms, our we Thank employees built for we infrastructure Ferrellgas put or more making X,XXX than our first For have logistics of you ice. of years, are. dependable regardless snow people customers

call. be We Q&A will this again taking

your read to pause a a and take will bit. We questions organize

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

Instructions] [Operator

you, reading Michelle. as in. kind they Thank We're these and organizing just of come

think is note I I'll Eddystone. with where start just a though on quick

So policy, everyone company you in including to we disclosure litigation. pertaining Eddystone, Q&A other this section, respect to our be comment want do discussing we our in will to public Eddystone to really that we Therefore, filings. we remind the questions to the direct pursuant really on with pending and not litigation, related XX-Q not accrual

So my acquisitions, about. is speak we to have actually questions topic around favorite absolute a few which

to Mike, going So I'm go first.

for it our looks on here really we're to different. a couple really focused Ferrellgas, the and acquisition We as acquisitions. have goals. little fit, the of that strategic And align questions to always needs a acquisition year, pipeline, on Each

year, years. our XX past This in acquisition made largest we actually

Eastern necessarily So past acquisitions The about you the about the it acquisition this been that quick can larger haven't strong of the successful more our It's that and Propane. West see really was onboarding the focus. in performance been happened is where quarter, really Sierra located.

team to assess and new operations our quickly onboard So all acquisitions. knows really how

we and for And really closed employees those Kilhoffer, and and quarter, of with this X well. and perfect starts areas really area. was tuck-in us different a that us, customers, fit care acquisition XX% great in The a take it it that no it's customers past for residential we

engaged still to opportunities And market. are the in We we as continue acquisition arise, assess.

couple it you. amendment. a There's hand the to going I'm Mike, on to fifth questions of back

year of going XX date A of you, X year, next XX-K. revolving the of this least closed September next questions X and about have fifth XX December the concern the come substantial The Thank amendment to of Tamria. company's it XX, XX from to continue as doubt The the for maturity our the regarding December XXXX few date ability the credit facility year on March of to maturity agreement. from date March created company's revolver XXXX year. at extended amendment a issuance of the fifth in of was credit

fund LP, amendment XX-Q. this about concern year also and changes. as and of continue from least also Importantly, other fifth X-K to restrict pricing, Ferrellgas The to this ability for terms movements to date continues additional amendment to resolutions our company's going December from such revises revolver extension to fifth X extension. a also alleviated cash to for at Ferrellgas XX, this the Eddystone. the of related allows refer the commercial substantial conditions, Please on doubt LP XXXX filing for issuance us certain potential to it as information among The Partners

the Tamria, on Would like in it looks those? handle like there coming you to questions are some operations.

Yes.

have We in our press information much so release.

comes X Rhino they did record Rhino, the maybe -- still best what job with Blue season free and core is it Blue quarter really on really with But had this quarter that, good is when since their I'll cash I'll Mike. flow. a You for start to do is

and just the exactly company chain to we've the management supply phenomenal, expense for been of as our X on volume really and initiatives fleet. numbers, years just while it's all focus Their hitting we've high the around working acumen what was strategic transitioned on past

So exactly they're that seasonal supposed they very to and EBITDA proud team. performance, provide that. I'm counter of did

some and to Our also in propane related to events exports. September in some wholesale supply saw business volatility price due

group the opportunities performance of there, of entire they're so team on you advantage the And to of seasoned wholesale based really that and full take our see sort that. the the able presents, market

just highlight retail, on in on I'll much call this areas. Finally, couple retail, of a discussed we've but

teams showed retail storm management our the prep seasonal response and while of expenses great First, management. really excellence demand. areas I say October and expense managing really executed warmer because was And than operational to expense in normal,

fleet. just us this management area, to get our on that to investment, our really is our it's implementation, down one allowing of most of -- level most to is Adding expense cost-intensive which another telematics

was the those where Regarding growth areas response storms, we in greatest. storm achieved the

some service we you imagine, noted and growth Carolina As had business Florida had of and year, there double-digit can North over some prior units our closing. EBITDA in

work, they recover. pause open do, storms rebuild -- But obviously we and sort elect doors. that to be And the the destruction not a about they will they persistent. if understand may we then have cause put on and here, think by those But business you some that way businesses of their that QX demand can as --

sales Finally, approach. our

we We and gas continue core. in expanding disappoint, new footprint And on the of teams sales and simply they have focus installation this auto to definitely is and one growing the Midwest the our best business never segment. in outside industry

Mike. I said a it because in back you Why lot I we see again. there, don't finance questions to some pass coming

Yes. Thank you, Tamria.

are We not disappointed.

have listeners plans. financing of posted questions Some our to related the

our and various I us previously help As engaged alternatives. an we capital structure evaluate investment discussed, bank to analyze refinancing

refinancing investment the bank are We evaluating closely making and opportunities. capital the are progress working good our and structure with

the have convert March of A of the Class units units remaining permitted XXXX, is we stated, financing XXXX. agreements. March into the or previously converting units Class redeem After Class Class have until we to B into B to documented those the Class options only to tied units under or A units As B do option

at par. March In senior then the do terms of of at end they the notes, callable and XXXX become of go they current XXXX

the bank new monitoring market for high-yield current issuances. and receive on pricing our periodic indicative from we are We updates debt group

refinance monitor capital there's to opportunities spending. the conditions address the to questions continue that? to you senior like will Tamria, the notes. We been Would and market some around 'XX

Yes.

see. So let's CapEx,

achieved really just Ferrellgas. since supply the has generally flow. really X components also team professionals is of it. expense sorry, it's a the largest general, only on the of chain number. So has -- been putting kind spend. favorably been kind been one supply Rhino a CapEx days those speak in part really years this are And so turns cash performance that they've Rhino are XX just really of Blue unmatched impacting that's of I'll the about cap inventory things of of an cash and our Blue And not of but

that So favorably impacting they're that.

new leveraged the investing I maybe in market that of kind we event there's assets matters they for growth between and so really over just and CapEx use from say during Retail response, looking of seasoned I'm QX we're so additional can business questions, -- balanced and these I do that, as at expansion. future always have hit some share that think before. in be But that really is understand questions really XXX our And properties Mike, maintaining storm to storm on we those execution, safety I'll which have it professionals, a and exactly that. growth

They to we response. nationwide And post company. the how storm prep a navigate to from knew are

and focus bring the nationwide outside to families area an just that we example, so on their drivers provide local of So in kind tax from can teams our being and provider remains and then so come storms. experience pre-post those is area in, on, storm really that affords this that they're And fifth us this opportunity. outside their or sixth employees helping the a

to areas. is in Carolina really what and double-digit North led to alluded those growth, as I the Florida before that And

through questions. I'm of see Mike, As looking these in rest don't I any else other anything the category.

holiday We those I continued conclude to joining wish but say call, will to Leverage truly that. JPMorgan today's excited really do -- today. your Conference we're happy we we a this support. the So season. be for and you spring appreciate Thank -- planning to We and safe will everyone Global attend before you

So moderator, I'll pass it back you. to

you call. Everyone, now concludes participating, a have you This disconnect. for you. great Thank day. conference today's Thank and may