Q3 2022 Ferrellgas Partners LP Earnings Call

Please standby we're about to begin.

Good day, everyone welcome to the fiscal 2022 Q3 earnings call Today's conference is being recorded.

At this time I'd like to turn the conference over to Mr. Jim Farrell Chief Executive Officer. Please go ahead Sir.

Thanks, Alan and welcome everyone to our third quarter fiscal 'twenty two earnings call. Thank you for joining us.

My name is Jim Farrell, Chief Executive Officer, and President apparel gas before we go over the financial results for the quarter I want to make a couple of points in terms of our performance over the last few months.

First of all.

I will begin by highlighting the employees of our great company.

Well, we are remote workforce and better for it.

Every week contributing a weekly strategy sessions, making our company stronger than ever.

Secondly.

Our successful performance this last quarter, despite the challenging economic environment is directly related to the amazing execution.

But the team of over 4500 employee owners across the whole country.

We believe in investing in our people.

Results.

Please speak for themselves.

We have continued to build upon the strength of this great clean energy source, we call propane.

And the good brings to hundreds of thousands across the country.

I will now turn the floor over to our Chief operating officer, Tim is it temporary is there too cheap.

To go over the financial results for the quarter, and then I'll be back after that.

Thank you, Jim and welcome to our third quarter fiscal year 2022 earnings call. Thank.

Thank you all for joining us.

I'd like to remind all of you that 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-K filed last year 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 the third fiscal quarter ended April.

The 30th 2022.

For the third quarter of 2022 revenues increased $82 8 million or 15% higher than the same period last year gross profit for the quarter also increased $18 million or 7% compared to the prior year period March.

<unk> per gallon for the quarter increased of 11 cents or 10.

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Ladies and gentlemen, please standby while we.

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Once again, ladies and gentlemen, please standby, while our speaker reconnects.

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Operating expenses as a percentage of total revenue were approximately 1% higher than prior year period due to fuel costs fleet maintenance costs and proactive wage increases for the retention of our valuable workforce.

Cost of sales also had an unfavorable increase of $64 8 million or 21% compared to prior year period, driven by inflationary costs for materials and other commodities. Despite the rise in expenses the company increased operating income per gallon by one.

Or 2% higher than prior year period.

For the fiscal third quarter. The company reported net earnings attributable to fail gas L. P of 67 6 million compared to a net loss of $66 8 million in the prior year period, an increase of 134.4 million adjusted EBITA.

Our non-GAAP measure decreased by $2 1 million or 2% to $117 1 million in the third fiscal quarter compared to $119 2 million in the prior year period.

Excluding the impact of approximately 5 million in legal settlements during the third fiscal quarter. Adjusted EBITDA would have increased $2 9 million compared to the prior year period.

As a leading national provider of propane and environmentally friendly fuel Ferrell gas embraced the celebration of Earth day under its dean barrel fuels change employee owners throughout the company gave their time and talent during the month of April two initiatives designed to.

To have a positive long term environmental impact these ranged from planting trees to hosting battery in plastic recycling drive to multiple community service activity.

In addition to previously announced home delivery services and other locations Blue Rhino continues to expand its home delivery services.

New markets include Brooklyn, New York.

Miami, Orlando, and Jacksonville, Florida, and in the Chicago Land area. In addition to exchange and or purchase of our ready to grill tank at a convenient local tank exchange location.

Residents in these areas can avoid an extra trip to the store and choose to have a blue Rhino tank delivered to their doorstep.

The company also recognized 180 employees across the country with Ferrell gas Clean awards. The Flame award initiate is a peer to peer recognition program that celebrates employee achievement in the areas of customer service safety innovation.

And leadership.

As an active acquirer of propane marketers, we are pleased to announce the promotions of Richard May vary to vice President of business development and Joseph the Gorilla to vice president of mergers and acquisitions, they bring a wealth of industry knowledge and much respect for the hardworking professionals and owners in the pro.

Paint industry.

I will now turn the call back over to Jim.

Thanks, Pam are you sorry, you get interrupted there in the middle of it.

One of the hazards of being caught out of the office or out of where you normally RFP stage.

Cambria is doing a terrific job.

Organizing and driving this company forward.

So look for for these calls we encourage the submission of written questions. Several are coming in are.

We try to answer them during the call. Some we can't answer it would be for various reasons. The rest I'll try to try to do now as we stated in the 10-Q, the Edie stone matter. We will proceed to trial and segments beginning in September .

We are fully prepared to vigorously defend against the had a strong claims and are confident in our position.

There was a question about how we're dealing with inflation I think our results in camry. His explanation of them says we're doing all we can.

Job market.

Price of fuel general inflation and also the consequences of whatever the federal reserve is going to do remain worrisome for everyone on this call including nuts.

We are 100% focused on being able to weather whatever comps.

Where we invest in ESG.

We are fully invested in each part our century project is focused on every important social environmental and governance areas in order to serve well our people and our communities over the next two decades.

The world in the United States in particular will be awash in propane as we know it for generations to come and since we are a technology enabled logistics company delivering the finest service possible to our customers.

We're not going to move away from that discipline.

Guarding the search for a CFO that continues in a highly respected executive search firm was engaged.

We'll keep you posted there.

Finally, let me leave you with a bit of the optimism that pervades our company.

While many companies bragging about the job there people are doing it's a shame we cannot let you see deeper into how much is changed internally.

And the pride our people show in measuring up to the new standards.

It all adds up to great results.

That's the end of my remarks, we're looking forward to seeing you all again at the end of our fiscal year will be proud to share our annual results.

Thanks again for joining us.

That does conclude today's conference we thank everyone again for their participation.

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