Ferrellgas Partners Q3 Profit Rises, But Misses Estimates; Lifts FY EBITDA View

(RTTNews) - Propane distributor Ferrellgas Partners, L.P. (FGP) Monday reported a marginal increase in third-quarter profit, amid higher revenues and increased costs. Earnings per unit, as well as revenues missed analysts' expectations.

The company also lifted its adjusted earnings before interest tax depreciation and amortization or EBITDA outlook for fiscal 2014.

For the third quarter ended April 30, 2014, net earnings attributable to the company increased to $45.39 million from $44.68 million in the previous year. Net earnings per common unit holders' interest were $0.57 per unit, up from $0.56 per unit in the prior-year quarter.

On average, four analysts polled by Thomson Reuters expected earnings per unit of $0.66 for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues grew to $722.12 million from $603.02 million reported last year. Analysts estimated revenues of $746.88 million for the quarter.

Operating expenses advanced to $113.9 million from $107.2 million a year ago, mainly reflecting increased cost associated with meeting customer demand.

The company said its Propane sales volumes for the quarter were 257.92 million gallons, lower than 267.12 million gallons a year ago, but consistent with planned levels.

President and Chief Executive Officer Steve Wambold stated, "While temperatures in the quarter were 5% colder than a year ago, the partnership contended with significant propane supply and infrastructure challenges that negatively impacted our efficiency metrics."

For fiscal 2014, the firm now expects adjusted EBITDA of $285 million to $290 million, up from the previous outlook of $275 million to $285 million. For fiscal 2013, the partnership posted adjusted EBITDA of $272 million.

FGP closed Friday's trading at $26.71.