Ferrellgas Partners LP (FGP) reported first-quarter fiscal 2015 adjusted loss of 40 cents per unit, significantly wider than the Zacks Consensus Estimate of a loss of 23 cents. The partnership’s loss had stood at 31 cents per unit a year ago.
An increase in units outstanding, cost of product sold, and depreciation and amortization expenses primarily impacted quarterly results negatively.
Units of Ferrellgas Partners fell around 5% on Dec 10 following the partnership’s unfavorable bottom-line performance.
Total Revenue
In the first quarter of fiscal 2015, Ferrellgas Partners reported total revenue of around $443.4 million, beating the Zacks Consensus Estimate of $443 million marginally. On a year-over-year basis, the partnership’s top line surged 6.8% primarily on higher propane and other gas liquids sales. Other sales also increased in the reported quarter.
Operational Highlights
In the reported quarter, total propane sales volume dropped 2.6% year over year to 186.1 million gallons, primarily due to lower sales to resellers. Warmer temperatures during the winter impacted sales volumes to end users marginally.
Ferrellgas Partners’ gross profit stood at around $154.7 million, up 8.2% from the prior-year level due to improved retail propane margins and contributions from the acquired midstream assets.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the reported quarter soared around 30% year over year to $34.4 million.
The partnership’s operating expenses was $102.9 million, down marginally from the prior-year figure.
Interest expenses rose 8.2% year over year to $23.9 million, primarily due to debt of merger and acquisition activities.
Financial Highlights
Ferrellgas Partners’ cash and cash equivalents as of Oct 31, 2014 were $9.9 million versus $8.3 million as of Jul 31, 2014.
Long-term debt as of Oct 31, 2014 was $1,332.1 million, up from $1,292.2 million as of Jul 31, 2014.
In the first three months of fiscal 2015, the partnership’s net cash used in operating activities was $19.4 million compared with $34.4 million a year ago.
Capital expenditures in the first quarter came in at $17.6 million versus $13.3 million in the prior-year quarter.
Guidance
Ferrellgas Partners reiterated its fiscal 2015 EBITDA guidance in the range of $300 million to $320 million.
At its Peers
Delek US Holdings, Inc. (DK) reported earnings of $1.22 per share in the third quarter of 2014, surpassing the Zacks Consensus Estimate by 3.4%.
CVR Refining, LP (CVRR) posted adjusted third-quarter 2014 earnings of 15 cents per unit, lagging the Zacks Consensus Estimate of 61 cents.
Global Partners LP (GLP) announced second-quarter 2014 adjusted earnings of $1.50 per unit, surpassing the Zacks Consensus Estimate of 17 cents significantly.
Zacks Rank
Ferrellgas Partners currently has a Zacks Rank #3 (Hold).
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