Ferrellgas Partners LP FGP reported a first-quarter fiscal 2016 adjusted loss of 33 cents per unit, wider than the Zacks Consensus Estimate of a loss of 8 cents per unit. The quarterly loss was narrower than a 40 cent loss incurred a year ago.
GAAP loss per share was 79 cents compared with a loss of 40 cents in the year-ago quarter. The difference between GAAP and operating loss in the reported quarter was due to a one-time, non-cash goodwill write-off related to the partnership’s midstream water solutions operations and a one-time loss on trucks held for sale.
Total Revenue
During the quarter, Ferrellgas Partners’ total revenues came in at $471.1 million, topping the Zacks Consensus Estimate of $452 million. On a year-over-year basis, the partnership’s top line improved 6.3%, primarily due to a higher contribution from its midstream operations.
Operational Highlights
In the fiscal first quarter, total propane sales volume declined 13.2% year over year to 161.5 million gallons due to lower wholesale and retail sales. Sales decreased due to warmer temperature throughout the fiscal first quarter in most of the highly concentrated geographic areas it serves.
Operating expenses in the reported quarter were $114.9 million, up 11.7% from the prior-year level. The rise in expenses was primarily due to additional operating expenses associated with the Bridger acquisition.
General and administrative expenses rose to $12.2 million from $10.8 million in the fiscal first quarter of 2015, also as a result of the acquisition
Interest expenses increased to $33.8 million for the fiscal first quarter from $23.9 million a year ago, reflecting increased borrowings to fund acquisitions and growth capital expenditures.
Financial Position
Ferrellgas Partners’ cash and cash equivalents were $8.9 million as of Oct 31, 2015 compared with $7.6 million as of Jul 31, 2015. Long-term debt was $1,823.1 million as of Oct 31, 2015, up from $1,804.4 million as of Jul 31, 2015.
Upcoming Releases
Valero Energy Corporation VLO is slated to report fourth quarter earnings on Feb 4, 2016. The Zacks Consensus Estimate is $ 1.39.
Tesoro Corporation TSO is slated to report fourth quarter earnings on Feb 10, 2016. The Zacks Consensus Estimate is $1.62.
PBF Energy Inc. PBF is slated to report fourth quarter earnings on Feb 11, 2016. The Zacks Consensus Estimate is 51 cents.
Ferrellgas Partners carries a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment