Q3 2021 Ferrellgas Partners LP Earnings Call

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Ladies and gentlemen, thank you for standing by and welcome to the third quarter over.

Third quarter fiscal 'twenty 'twenty, 1 earnings call for Ferrell gas partners L. P. At this time all participants lines are in a listen only mode. Please.

Please be advised that today's conference is being recorded.

If you require in assistance during todays call. Please press star zero.

I would not to hand, the conference over to your speaker today, Jim Ferrell. Thank you. Please go ahead Sir.

Good morning, you walk into the Ferro gas third quarter earnings call. My name is Jim Ferrell and I'm the CEO of the company.

On behalf of for men and women, who make this company work I want to say how proud we are of the financial performance, we continued to achieve.

The primary reason for the pride that our strong showing continues to be due to increasingly sound operating practices as we transform ourselves into a technology enabled logistics company.

It has only been a short time since we completed 1 of the more complicated balance sheet restructurings ever.

We are keenly aware of the portions of debt refinancing and we're much more expenses than we wanted and based on our future financial performance, we intend to do something about that.

I will remind you that our aesop bill.

<unk> owns a sizeable portion of common units.

And that the owners of that Aesop are the very people, who work so hard to make our company successful.

The Aesop will flourish once where you were able to restore distribution to all common unitholders.

So we all have adequate incentive to make that happen.

When it is right to do so in fact I'm myself on some 5% for the comments.

I will now turn you over to Brian Herman.

Our interim CFO, who will then hand, you over to Tim Tim are you there tucci.

Our chief operating officer.

Thank you, Jim and welcome to our third quarter of 2021 earnings call.

Thank you all for joining us I'd like to remind all of you that some statements made during this call may be considered forward looking.

Various risks uncertainties and other factors could cause actual performance to differ materially from anticipated performance. These factors are discussed on our form 10-K, and other documents filed from time to time with the Securities and Exchange Commission.

Additionally, we note that the purpose of this call is to discuss the results of operations for for the third fiscal quarter ended April 32021.

The company produced exceptionally strong results in the third quarter of fiscal 2021, leading to a $25.4 million increase in operating income for a 37, 3% growth over the prior year quarter and continuing our strong performance in fiscal 2021 for.

For gallons of propane sold for the quarter were $260.2 million compared to $246.8 million last year or a $13.9 million increase.

Margin per gallon for the quarter was $6.4 or 7% higher than the prior year quarter attributable to strategic product placement sound supply chain logistics strategies, and a growing customer base, where Ryan or tank exchange sales continue to increase due to further.

Market share penetration national markets marketing strategies and continued growth in backyard on outdoor appliance usage.

Also contributing to the strong gallon performance on a right time deliveries that shifted gallons into this quarter additional marketing.

Platforms improved use of our marketing analytics, and whether that was 8% colder than prior year quarter. This has resulted in an increase in gross margin dollars of $30.2 million or 13% higher than prior year quarter, highlighting the company's delivery efficiency strategies in response to increased volumes operating.

Expenses increased a nominal 2.5%, while decreasing $2.7 per cent per gallon.

The third quarter continues to demonstrate ferrell gas strength as a high performing customer centric technology enabled logistics company strong execution by a leaner and more agile workforce of essential workers is driving high performance throughout the company both in the field and in corporate locations with focus on being a propane.

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The successful transition of the essential workers from a corporate workplace towards technology centric work from home environment decreased various general and administrative expenses as well as travel expense throughout the company.

Lastly, our continued commitment to safely serving our over 700000 customers, while adapting to the ever changing circumstances and new operating protocols to help protect the health and safety of our customers employees remains our top priority.

For the quarter, the net loss attributable to <unk> partners L. P was $66.8 million or 15.

$15.25 per common unit compared to prior year's third quarter net loss of $15.4 million or $3.14 per common unit.

Current quarter losses, primarily attributable to the $109.9 million loss on extinguishment of debt incurred for our successful restructuring transactions.

As compared to $37.4 million in prior year quarter.

Adjusted EBITDA, a non-GAAP measure increased by $34.9 million or 37, 8% compared to prior year quarter for the third quarter. Adjusted EBITDA was $127.2 million compared to $92.4 million on last year's quarter, resulting from the previously discussed initiatives.

As previously announced the.

Apparel gas partners on Ferrellgas Partners Finance Corp emerged from bankruptcy on March 32021, we are extremely excited about our emergence on the restructuring transactions that recapitalized, our balance sheet. We now have solid financial footing on our balance sheet debt, we will leverage for future growth at.

At this time I'd like to hand over the call to <unk> <unk>, our chief operating officer to discuss several other exciting developments in our company.

Thank you Brian.

Our retail and take exchange businesses continued to grow we have strategically added to our customer base with new locations that positively impacted our route density.

1 of the keys to our success lies in our high performing employees and having a strong operations team throughout the country.

We created the Pharaoh gas management development program last year to create a pipeline for diverse leadership and to provide management development and Mentorship program.

Proudly placed on 11 graduates for my first class and operations management positions across the country in the third quarter, our second class, which just recently placed and yesterday marked the first day of our third class for largest yet.

They also launched fairly university to serve as a professional development program for our current apparel gas employees. These programs work together to continually develop our people while also providing a new influx of talent that will better position ourselves to further successful execution of our strategic.

Ferrell.

<unk> continued to partner with operations barbecue to provide relief to storm impacted areas in the southern United States.

I will now turn the call back to our moderator, but before I do that as mentioned in the announcement for this call any additional questions may be submitted via our Investor Relations E Mail box at Investor relation at Ferrell gas Dot com. Thank you.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.

Net.

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