Q3 2020 Ferrellgas Partners LP Earnings Call

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I would now let's turn the call over to Mr. Bill was singer. Please go ahead.

Thank you Amy.

Welcome to our third quarter 2020 earnings call. Thanks for joining us before we get started though I'd like to remind all of you. That's some statements made during this call maybe considered forward looking and that various risks uncertainties and other factors could cause actual performance to differ materially from anticipated performance.

These factors are discussed in our form 10-Q, and other documents filed from time to time with the SEC.

Additionally, we note that the purpose of this call is to discuss the results of operations for the third fiscal quarter ended April 30 to 40 20 as required by our senior secured bonds due 2025.

Therefore, we will not be discussing or responding to questions regarding our leverage situation or debt maturities.

As detailed in our earnings release and form 10-Q that were filed on June 4th.

Third quarter consolidated adjusted EBITDA was 92.3 million compared to last year's 88.6 million.

Trailing 12 months adjusted EBITDA now stands at 242.7 million up from 239 million reported last last quarter.

For the quarter total gallons sales of $246.8 million were down from the 264.1 million gallons in the prior year.

Due to 10% warmer temperatures than prior year, and the widespread slow down or the economy due to covert 19.

Partially offset however by customer growth.

Margins were higher than prior year by eight cents per gallon due to wholesale propane prices that were approximately 50% lower than the prior year.

Total gross profit for third quarter, 2020 was 233.1 million compared to 226.9 million for the prior year, reflecting the increase in gross margin per gallon, partially offset by the decline in volumes as previously discussed.

Operating expenses for the third quarter increased to 121.6 million from 121 million in the prior year.

This slight increase was primarily due to an increase in personnel costs.

For third quarter 2020.

Gionee expense was 12.6 million compared to $11.5 million in the prior year.

The increase is primarily associated with legal fees.

Interest expense for the quarter was 45.7 million compared to 44.2 million in the prior year.

The increase is due primarily to higher rates associated with our 700 million dollar.

Senior secured bond issuance completed in April of 2020, which replaced our senior secured credit facility.

At April 32020, we held a 177.5 million of unrestricted cash and had 91 million of available borrowing capacity under our accounts receivable securitization facility.

Which provides total liquidity at April 30 of 268.5 million.

Lastly, our non acquisition capital expenditures were 22.7 million for the third quarter compared to $35.1 million in the prior year.

This decrease was primarily attributed to a decision in the prior year to utilize excess cash to purchase new propane delivery vehicles that would historically have been lease.

As mentioned in the announcement for this call questions may be submitted via our Investor Relations E Mail box.

At Investor Relations at Ferrellgas Dotcom.

I'll now turn the call back to Amy if there are any questions in the Q.

Hi, This mine, ladies and gentlemen, if you would like to ask a question. Please go ahead. Please press Star then the number one on your telephone keypad.

Again not to Star then one to ask a question.

We'll pause for just a moment to compile the DNA roster.

At this time there are no question.

I turn the call back to the presenters.

Okay. Thank you Amy that concludes our third quarter 2020 earnings call. Appreciate all your time.

Thank you.

This concludes today's conference call. Thank you for your participation you may now disconnect.

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