• Revenues for the third fiscal quarter increased $82.8 million or 15% to $647.5 million, compared to $564.7 million in the prior year period.
• Gross Profit for the third fiscal quarter increased $18.0 million or 7% to $281.4 million, compared to $263.4 million in the prior year period.
• Operating Income per gallon for the third fiscal quarter increased $0.01 or 2% compared to the prior year period.
• Net earnings attributable to Ferrellgas Partners, L.P. were $67.6 million for the third fiscal quarter compared to a net loss attributable to Ferrellgas Partners, L.P. of $66.8 million in the prior year period.
• Ferrellgas celebrated Earth Day with a month-long community service initiative.
• Blue Rhino home delivery expansion continued to five new markets: Brooklyn, New York; Miami, Orlando, and Jacksonville, Florida; and the Chicagoland area.
• The Company recognized 180 Ferrellgas employees in the areas of: Customer Service, Safety, Innovation and Leadership via the Ferrellgas Flame Awards.
• The Company promoted Richard Mayberry to Vice President of Business Development and Joseph Figueroa to Vice President of Mergers and Acquisitions.
Ferrellgas Partners, L.P. reported financial results for its third fiscal quarter ended April 30, 2022.
"At Ferrellgas, we believe in our people and our people believe in and support the communities they live and work in. I am very proud of the time and energy the employees of Ferrellgas gave back through community service in the month of April,” said James E. Ferrell, Chief Executive Officer and President. “Our mission is to Fuel Life Simply for our customers, and we know that begins with our almost 4,500 employees who care so much about the Ferrellgas customer.”
The Company continues to demonstrate its resilience in the face of ongoing macroeconomic headwinds with historically high commodity prices. Overall gallons sold were down 3% for the third fiscal quarter compared to the prior period, primarily due to the prior year favorable impact of outdoor living. These negative trends were offset by the Company’s management of the business, which includes its risk management activities as well as other previously announced strategic initiatives to achieve efficiencies in delivery of gallons and cost containment. The Company’s inventory position management assists in mitigating the risk from price fluctuations tied to fixed price purchases of propane.
The Company has positioned itself for long-term growth with a positive quarter in the midst of the challenging environment noted above.
Revenues increased $82.8 million or 15% and gross profit increased $18.0 million or 7% for the third fiscal quarter compared to the prior year period. Margin per gallon for the quarter increased by $0.11, or 10% higher than the prior year period. Operating expenses as a percentage of total revenue were approximately 1% higher than the prior year period due to fuel costs, fleet costs, and wage increases. Cost of sales also had an unfavorable increase of $64.8 million or 21% compared to the prior year period driven by inflationary costs for materials and other commodities. Despite the rise in expenses, the Company increased operating income per gallon by $0.01, or 2% higher than the prior year period.
As a technology enabled logistics company, Ferrellgas continues to benefit from its nationwide footprint and focus on continuous improvement. Its dedicated and professional team of distribution managers, safety-minded delivery professionals, and a committed customer service organization provide the foundation for the Company to build on. A favorable credit position over the prior year period continues to position Ferrellgas well with suppliers. The Company’s continued emphasis on leadership development, excellence in operational expense management, and implementation of logistics fundamentals continues to increase efficiency and profitability.
For the third fiscal quarter, the Company reported net earnings attributable to Ferrellgas Partners, L.P. of $67.6 million compared to a net loss of $66.8 million in the prior year period, an increase of $134.4 million. Adjusted EBITDA, a non-GAAP measure, decreased by $2.1 million or 2% to $117.1 million in the third fiscal quarter compared to $119.2 million in the prior year period. Excluding the impact of approximately $5.0 million in legal settlements during the third fiscal quarter, adjusted EBITDA would have increased $2.9 million compared to the prior year period.
“The commitment to excellence by our high performing operations teams has been key to our continued success,” Ferrell added. “Our management teams have continued to leverage technology and relationships to win in challenging environments. The dedicated employee-owners of Ferrellgas work together creating opportunities out of challenges. All across our company, hard working production specialists, material handlers, delivery professionals, and customer service specialists are making a difference in the lives of the Ferrellgas customer. I could not be more proud.”
As a leading national provider of propane, an environmentally friendly fuel, Ferrellgas embraced the celebration of Earth Day as under its theme #FerrellFuelsChange. Employee-owners throughout the Company committed during the month of April to initiatives designed to have a positive long-term environmental impact. These ranged from planting trees to hosting battery and plastic recycling drives to multiple community service activities.
In addition to previously announced home delivery services in other locations, Blue Rhino continues to expand its home delivery services. New markets include Brooklyn, New York; Miami, Orlando, and Jacksonville, Florida; and the Chicagoland area. In addition to the exchange and/or purchase of a ready-to-grill tank at convenient local tank exchange locations, residents of these areas can avoid an extra trip to the store and choose to have a Blue Rhino tank delivered to their doorstep.
As an active acquirer of propane marketers, Ferrellgas was pleased to announce the promotions of Richard Mayberry to Vice President of Business Development, and Joseph Figueroa to Vice President of Mergers and Acquisitions. Both are current employees of Ferrellgas and bring a wealth of industry knowledge and respect for the hard working professionals and owners in the propane industry.
On Friday, June 10, 2022, the Company will conduct a live teleconference on the Internet at https://edge.media-server.com/mmc/p/3urrfkcb to discuss the results of operations for the third fiscal quarter. The live webcast of the teleconference will begin at 12:30 p.m. Central Time (1:30 p.m. Eastern Time). Questions may be submitted via the investor relations e-mail box at InvestorRelations@ferrellgas.com.