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Ferrellgas Partners L.P. Common Units Reports Operating Results (10-Q)

June 05, 2009 | About:
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Ferrellgas Partners L.P. Common Units (FGP) filed Quarterly Report for the period ended 2009-04-30.

FERRELLGAS PARTNERS L.P. is engaged in the sale distribution marketing and trading of propane and other natural gas liquids. Ferrellgas Partners L.P. Common Units has a market cap of $1.16 billion; its shares were traded at around $17 with a P/E ratio of 24.7 and P/S ratio of 0.5. The dividend yield of Ferrellgas Partners L.P. Common Units stocks is 11.7%.

Highlight of Business Operations:

Retail sales decreased $117.5 million compared to the prior year period. This decrease resulted primarily from a $70.2 million decrease in sales price per gallon resulting from a significant reduction in the wholesale market price of propane and a $47.3 million decrease due to lower propane sales volumes, both as discussed above.

Other gas sales decreased $40.5 million compared to the prior year period. This decrease resulted primarily from a $31.7 million decrease due to lower propane sales volumes and a $7.1 million decrease in sales price per gallon.

Retail sales gross margin decreased $9.6 million compared to the prior year period. This decrease resulted primarily from a $13.8 million decrease due to lower propane sales volumes, as discussed above, partially offset by a $4.2 million increase in gross margin. Gross margin increased primarily due to our ability to maintain a slower pace of decreasing sales prices despite a significant decrease in the wholesale market price of propane, as discussed above.

Operating income increased $0.3 million compared to the prior year period primarily due to a $2.4 million decrease in General and administrative expense a $2.0 million decrease in Employee stock ownership plan ownership charges and a $1.7 million decrease in Equipment lease expense. These favorable results were partially offset by a $5.3 million decrease in gross margin from Revenues: Other and a $1.6 million increase in Operating expense. General and administrative expense decreased primarily due to $1.7 million in personnel and performance based incentive expenses savings. Employee stock ownership plan ownership charges decreased primarily due to the effect of lower Ferrellgas common unit prices during the current year period. Equipment lease expense decreased primarily due to $1.1 million in computer related lease expense. Revenue: Other decreased primarily due to $10.5 million of miscellaneous fees billed to customers in the prior year period that were not repeated during the current year period, which were somewhat offset by a $1.6 million increase in appliance sales gross margin. Operating expenses increased primarily due to $3.8 million in personnel expenses that were partially offset by a $2.5 million decrease in fuel costs and a $1.0 million decrease in bad debt expense.

Interest expense for the three months ended April 30, 2009 increased $0.8 million due to a $1.7 million increase in interest rates primarily from the debt issuance in August 2008 and a $1.4 million increase in discount amortization on the debt issuance in August 2008 at 85% of par. These increases were partially offset by a $3.1 million reduction in expense due to decreased borrowings on our unsecured credit facility.

Interest expense for the three months ended April 30, 2009 increased $0.8 million due to a $1.7 million increase in interest rates primarily from the debt issuance in August 2008 and a $1.4 million increase in discount amortization on the debt issuance in August 2008 at 85% of par. These increases were partially offset by a $3.1 million reduction in expense due to decreased borrowings on our unsecured credit facility.

Read the The complete Report

Rating: 3.1/5 (8 votes)

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