Ferrellgas Partners Q1 Loss Widens On Higher Costs, But Revenues Climb - Update

(RTTNews) - Propane distributor Ferrellgas Partners, L.P. (FGP) Friday reported a wider loss for its first quarter, reflecting higher wholesale cost of propane that rose 20 percent over the prior year. However, total revenues for the period climbed 14 percent helped by improved sales volumes, and beat analysts' expectations.

For the quarter, common unitholders' interest in net loss was $24.60 million or $0.31 per unit, wider than $17.48 million or $0.22 per unit last year.

On average, seven analysts polled by Thomson Reuters expected the company to report loss per share of $0.20 for the quarter. Analysts' estimates typically exclude one-time items.

The partnership reported adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA of $26.4 million for the period.

Total revenues for the three-month period climbed 14 percent to $415.03 million from $362.91 million in the preceding year. Analysts expected the company to generate revenues of $390.41 million for the quarter.

According to the firm, increased sales volumes were partially offset by lower retail margins, which were adversely affected by higher wholesale cost of propane that rose 20 percent over the prior year.

The company said Propane sales grew 6 percent to 191 million gallons, reflecting increased wholesale and agricultural demand in the quarter.

Operating expenses increased to $102.9 million from $96.4 million a year earlier, including $626 of severance costs for the year ended October 31.

Looking ahead, Steve Wambold, president and chief executive officer of the company said, "Fiscal 2014 is off to a solid start with nationwide winter temperatures forecasted near normal levels this coming season. Based on these weather forecasts, our first-quarter results and the strength of our underlying fundamentals, we project Adjusted EBITDA between $265 million and $275 million for fiscal 2014."

Last month end, Ferrellgas Partners acquired KanGas Corp., an independent propane company based in Basehor, Kansas. Commenting on the company's acquisition, Wambold said, "We will continue to aggressively seek operations that strategically enhance our business operations, while maintaining our strict acquisition criteria."

Ferrellgas Partners, L.P., through its operating partnership Ferrellgas L.P., serves customers in all 50 states, the District of Columbia and Puerto Rico.

FGP closed Thursday's regular trading session at $23.41 on the NYSE.