Ferrellgas Partners LP
) reported first quarter fiscal 2014 loss per unit of 31 cents,
wider than the Zacks Consensus Estimate of a loss of 17 cents.
Quarterly loss per unit widened by 9 cents from 22 cents a year
ago, primarily due to higher operating expenses, an increase in
depreciation expenses and a marginal rise in units outstanding.
Ferrellgas Partners reported first quarter fiscal 2014 total
revenue of $415 million, beating the Zacks Consensus Estimate by
11.6%. On a year-over-year basis, the partnership's sales
The improvement in revenues was primarily due to a 14.0%
year-over-year rise in sales at the
Propane and other gas liquids sales
segment on the back of higher propane gallon sales and strong
contribution from the
In the quarter under review, Ferrellgas Partners' propane sales
volume increased 6.5% year over year to 191 million gallons,
primarily due to a significant rise in wholesale sales level and
higher agricultural demand.
The partnership's gross profit edged up 2% to $142.9 million from
$140.1 million in the year-ago quarter, primarily due to higher
Operating expenses increased 6.8% year over year to $103.0
million. This was driven by a rise in general liability and
workers' compensation costs, and higher costs associated with
The partnership incurred an operating loss of $2.9 million
compared with an operating profit of $4.3 million a year ago
quarter. Weak operating results were mainly due to higher costs
of product sold, depreciation and amortization expenses, and
general and administrative expenses.
Interest expenses edged down 1.5% year over year to $22.1
million, benefiting from a lower cost of borrowing.
Quarterly adjusted earnings before interest, tax, depreciation
and amortization ("EBITDA") were $26.4 million, down 16.5% from
the year-ago figure.
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FERRELLGAS -LP (FGP): Free Stock Analysis
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Cash and cash equivalents as of Oct 31, 2013 were $8.4 million
versus $6.5 million as of Jul 31, 2013.
The partnership's long-term debt as of Oct 31, 2013 was $1,116.2
million, up from $1,106.9 million as of Jul 31, 2013.
Ferrellgas Partners invested $13.3 million during the first three
months of fiscal 2014 as capital expenditure, higher than the
year-ago spending of $9.9 million.
The partnership provided fiscal 2014 EBITDA guidance in the range
of $265 - $275 million, taking into account a normal winter
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share, wider than the Zacks Consensus Estimate of a loss of 28
CVR Refining, LP
) reported third-quarter 2013 operating earnings of 58 cents per
unit, beating the Zacks Consensus Estimate by 9 cents.
Delek US Holdings, Inc.
) announced third-quarter 2013 operating earnings of 4 cents per
share, missing the Zacks Consensus Estimate by a penny.
Ferrellgas Partners follows a strategic inorganic growth plan. We
note that the partnership's acquisition strategy involves buying
up assets having the same line of business, which are immediately
accretive. Recently, the partnership acquired Kan.-based KanGas
These acquisitions will enable the partnership to expand its
operations besides enhancing product offering. The successful
integration of new assets will enable Ferrellgas Partners to
reduce operating expenses, thereby improving margins.
Overland Park, Kan.-based Ferrellgas Partners is a leading
distributor of propane gas solutions and related equipment in the
U.S. The partnership provides propane services to residential,
industrial, portable tank exchange, agricultural and wholesale
customers. Ferrellgas Partners currently has a Zacks Rank #2