Ferrellgas Partners ends Q1 with $8.1 million cash, $925 million

By Lisa Kerner

Charlotte, N.C., Dec. 6 - Ferrellgas Partners, LP's fiscal 2014 is "off to a solid start," according to president and chief executive officer Steve Wambold.

On Friday the company released its results for the fiscal 2014 first quarter ended Oct. 31.

Ferrellgas ended the period with cash and cash equivalents of $8.1 million and long-term debt of $934.2 million, according to its form 10-Q filed with the Securities and Exchange Commission.

This compares to cash and cash equivalents of $6.3 million and long-term debt of about $925 million at the end of July.

The company completed an offering of $325 million 6¾% senior notes due 2022, which were used to refinance its existing $300 million 9 1/8% senior notes due 2017. Ferrellgas also refinanced its credit facility.

"These transactions immediately increased our borrowing capacity more than $100 million while at the same time materially reducing interest expense going forward; we expect to save approximately $3 million in fiscal 2014 and approximately $5 million annually thereafter as a result of these transactions," said Wambold.

Also during the quarter, Ferrellgas completed the acquisition of KanGas Corp.

"We will continue to aggressively seek operations that strategically enhance our business operations, while maintaining our strict acquisition criteria," Wambold said.

Financial highlights

The partnership reported adjusted EBITDA of $26.4 million and a 14% year-over-year increase in revenues of $415 million.

Ferrellgas' gross profit was up 2% to a near-record $142.9 million, according to the earnings news release.

A 6% rise in propane sales drove operating expenses to $103 million, from $96.4 million the year before.

The company's seasonal first-quarter loss was $25.1 million, or $0.31 per unit, compared to $17.8 million, or $0.22 per unit, a year ago.

Looking ahead, Wambold expects fiscal 2014 adjusted EBITDA to be in the range of $265 million to $275 million.

Overland Park, Kan.-based Ferrellgas distributes and sells propane and related equipment.

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