Ferrellgas Partners Q4 Loss Narrows, But Misses Estimates

(RTTNews) - Propane distributor Ferrellgas Partners, L.P. (FGP) reported Thursday a narrower year-over-year loss for the fourth quarter, reflecting improved margins and increased propane sales volumes. However, loss per unit for the quarter came in wider than analysts' expectations, while quarterly revenues topped their estimates by a whisker.

Separately, Ferrellgas Partners announced the appointment of Pamela Breuckmann to serve on the Board of Directors of its general partner, Ferrellgas, Inc., effective September 26, 2013. She is also the President of Leawood, Kansas-based Ferrell Capital and President and COO of Samson Capital Management.

"We are proud to deliver these much improved, yet anticipated results to our investors with our fourth quarter performance marking our third record quarter in the last five.," President and CEO Steve Wambold said in a statement.

The Overland Park, Kansas-based company reported a seasonal net loss of $28.52 million or $0.36 per unit for the fourth quarter, narrower than $35.17 million or $0.45 per unit in the prior-year quarter.

On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.31 per unit for the fourth quarter. Analysts' estimates typically exclude special items.

"Consolidating our Blue Rhino and traditional retail operations has resulted in cost savings and allowed for further cross-marketing of products to consumers. Further, Blue Rhino mitigates the seasonality of our traditional retail propane business," Wambold stated.

Total revenues for the quarter grew to $350.67 million from $341.78 million in the same quarter last year, and topped three Wall Street analysts' consensus estimate of $349.88 million by a whisker.

Propane and other gas liquid sales increased to $312.50 million from $310.52 million last year, and other revenues were $38.17 million, up from $31.26 million in the year-ago quarter.

Operating loss for the quarter was $7.92 million, narrower than $13.92 million in the prior-year quarter. Gross profit totaled $140.40 million, higher than $130.02 million in the year-ago quarter, and while gross profit margins improved to $0.90 per gallon from last year's $0.86 per gallon.

Total propane gallons sales for the quarter increased 3.6 percent to 156,286 from 150,872 a year ago. Retail propane gallon sales edges up 0.2 percent, and wholesale propane gallon sales grew 9.3 percent from last year.

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

For fiscal 2013, the company reported net earnings of $55.86 million or $0.71 per unit, compared to a net loss $10.84 million or $0.14 per unit in the prior year. Analysts expected the company to report earnings of $0.72 per unit for fiscal 2013.

Total revenues for the full year declined to $1.98 billion from $2.34 billion in the previous year. Street was looking for full-year 2013 revenues of $1.97 billion.

"While it is too early to provide specific guidance for the new fiscal year, we believe that fiscal 2013 demonstrated the impact that executing our strategy can make in a near-normal weather and commodity price environment. Under similar conditions, we would expect to sustain a similar financial performance. Moreover, we hope that our growth strategy will allow us to build upon these results in the years to come" Wambold added.

FGP closed Wednesday's regular trading session at $21.82, down $0.12 on a volume of 0.14 million shares.