Inergy L.P. (NRGY, Financial) filed Quarterly Report for the period ended 2009-06-30.
Inergy L.P. owns and operates a rapidly growing retail and wholesale propane marketing and distribution business. Their retail business includes the retail marketing sale and distribution of propane to residential commercial industrial and agricultural customers. Inergy L.P. has a market cap of $1.68 billion; its shares were traded at around $30.25 with a P/E ratio of 23.7 and P/S ratio of 0.9. The dividend yield of Inergy L.P. stocks is 8.7%. Inergy L.P. had an annual average earning growth of 7.5% over the past 5 years.
Retail propane cost of product sold was $37.9 million for the three months ended June 30, 2009 compared to $78.2 million for the same three-month period in 2008. This $40.3 million, or 51.5%, decrease in retail cost of product sold was driven by an approximate 46.0% decline in the average per gallon cost of propane along with lower volume sales at our existing locations as discussed above, which together reduced costs by approximately $40.6 million. Also contributing to the decline in retail propane cost of product sold was a $0.6 million decrease due to changes in non-cash charges on derivative contracts associated with retail propane fixed price sales contracts. These factors were partially offset by a $0.9 million increase in retail propane cost of product sold associated with acquisition-related volume.
Other retail cost of product sold was $19.6 million for the three months ended June 30, 2009 compared to $38.8 million during the same three-month period in 2008. This $19.2 million, or 49.5%, decrease was primarily due to lower costs from distillate sales at existing locations of $18.3 million and a decline in costs for other products and services of $1.0 million, partially offset by a $0.1
Retail propane gross profit was $49.6 million for the three months ended June 30, 2009 compared to $43.5 million in the same three-month period in 2008. This $6.1 million, or 14.0%, increase in retail propane gross profit was mostly attributable to a higher cash margin per gallon, which contributed to a $9.4 million increase, a $1.5 million increase associated with acquisitions, and a $0.6 million increase related to changes in non-cash charges on derivative contracts associated with retail propane fixed price sales contracts as discussed above. These increases to retail propane gross profit were partially offset by a $5.4 million decline resulting from lower retail gallon sales at existing locations as discussed above. The increase in cash margin per gallon was primarily the result of maintaining higher selling prices in certain markets while cost of propane declined.
Other retail gross profit was $17.3 million for the three months ended June 30, 2009 compared to $17.5 million for the same three-month period in 2008. This $0.2 million, or 1.1%, decrease was due primarily to lower gross profit on other products and services of $1.8 million, partially offset by a $1.3 million increase in gross profit from distillate sales and a $0.3 million increase from acquisitions.
Operating and Administrative Expenses. Operating and administrative expenses were $66.4 million for the three months ended June 30, 2009 compared to $67.1 million in the same three-month period in 2008. This $0.7 million, or 1.0%, decrease in operating expenses was due primarily to lower operating expenses from existing operations of approximately $2.6 million comprised predominantly of lower vehicle expenses and other operating expenses. Partially offsetting these decreases was an increase of approximately $1.9 million due to acquisitions.
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Inergy L.P. owns and operates a rapidly growing retail and wholesale propane marketing and distribution business. Their retail business includes the retail marketing sale and distribution of propane to residential commercial industrial and agricultural customers. Inergy L.P. has a market cap of $1.68 billion; its shares were traded at around $30.25 with a P/E ratio of 23.7 and P/S ratio of 0.9. The dividend yield of Inergy L.P. stocks is 8.7%. Inergy L.P. had an annual average earning growth of 7.5% over the past 5 years.
Highlight of Business Operations:
Revenues from other retail sales, which primarily includes distillates, service, rental, appliance sales and transportation services, were $36.9 million for the three months ended June 30, 2009, a decrease of $19.4 million, or 34.5%, from $56.3 million during the same three-month period in 2008. Revenue from other retail sales declined $17.0 million as a result of lower average selling prices of distillates at existing locations and $2.8 million due to a decline in revenues from other products and services, partially offset by a $0.4 million increase from acquisition-related sales. Distillate revenues from existing locations decreased as a result of lower volume sold coupled with a decline in the comparable average selling price of the distillates resulting from a lower wholesale cost.Retail propane cost of product sold was $37.9 million for the three months ended June 30, 2009 compared to $78.2 million for the same three-month period in 2008. This $40.3 million, or 51.5%, decrease in retail cost of product sold was driven by an approximate 46.0% decline in the average per gallon cost of propane along with lower volume sales at our existing locations as discussed above, which together reduced costs by approximately $40.6 million. Also contributing to the decline in retail propane cost of product sold was a $0.6 million decrease due to changes in non-cash charges on derivative contracts associated with retail propane fixed price sales contracts. These factors were partially offset by a $0.9 million increase in retail propane cost of product sold associated with acquisition-related volume.
Other retail cost of product sold was $19.6 million for the three months ended June 30, 2009 compared to $38.8 million during the same three-month period in 2008. This $19.2 million, or 49.5%, decrease was primarily due to lower costs from distillate sales at existing locations of $18.3 million and a decline in costs for other products and services of $1.0 million, partially offset by a $0.1
Retail propane gross profit was $49.6 million for the three months ended June 30, 2009 compared to $43.5 million in the same three-month period in 2008. This $6.1 million, or 14.0%, increase in retail propane gross profit was mostly attributable to a higher cash margin per gallon, which contributed to a $9.4 million increase, a $1.5 million increase associated with acquisitions, and a $0.6 million increase related to changes in non-cash charges on derivative contracts associated with retail propane fixed price sales contracts as discussed above. These increases to retail propane gross profit were partially offset by a $5.4 million decline resulting from lower retail gallon sales at existing locations as discussed above. The increase in cash margin per gallon was primarily the result of maintaining higher selling prices in certain markets while cost of propane declined.
Other retail gross profit was $17.3 million for the three months ended June 30, 2009 compared to $17.5 million for the same three-month period in 2008. This $0.2 million, or 1.1%, decrease was due primarily to lower gross profit on other products and services of $1.8 million, partially offset by a $1.3 million increase in gross profit from distillate sales and a $0.3 million increase from acquisitions.
Operating and Administrative Expenses. Operating and administrative expenses were $66.4 million for the three months ended June 30, 2009 compared to $67.1 million in the same three-month period in 2008. This $0.7 million, or 1.0%, decrease in operating expenses was due primarily to lower operating expenses from existing operations of approximately $2.6 million comprised predominantly of lower vehicle expenses and other operating expenses. Partially offsetting these decreases was an increase of approximately $1.9 million due to acquisitions.
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