Ferrellgas Partners, L.P. (NYSE: FGP), one of the largest distributors of propane, today reported that Adjusted EBITDA for the fiscal first quarter ended October 31 was $33.3 million compared to the exceptionally strong, year-earlier record of $35.2 million. Moreover, the partnership noted that results in this year's quarter were ahead of plan.
The seasonal net loss for the first quarter, adversely affected by one-time charges for debt prepayment premiums, was $32.9 million, or $0.47 per unit, compared with $15.0 million, or $0.23 per unit a year ago. However, excluding these one-time charges, the net loss for this year's quarter was $15.6 million, or $0.22 per unit.
President and Chief Executive Officer Steve Wambold explained, "The most significant performance in the first quarter was the ongoing momentum of propane sales which increased 4.3% to 179.5 million gallons, again primarily reflecting organic growth." Wambold pointed out, "More impressive was the 4.7% gain in retail sales to end users, with strength in our residential sales more than offsetting anticipated weakness in the commercial/industrial consumer base."
Wambold also noted, "We maintained our discipline of keeping a tight rein on costs, as operating expense, despite higher propane volume, remained practically unchanged, reducing our operating expense per gallon. In addition, equipment lease expense declined nearly 30%." Wambold further explained, "The first quarter's general and administrative expense of $13.8 million reflects a $2.8 million non-cash stock option issuance charge from our parent company. As this is not a cash obligation of the partnership it is not reflected in our presentation of Adjusted EBITDA and we anticipate G&A expense for the remainder of the fiscal year to return to a more normal pattern."
During the first quarter, revenues, as expected, declined, to $352.1 million from $480.9 million a year ago reflecting lower wholesale propane costs. However, gross profit for the quarter was practically unchanged.
Turning to the near-term outlook, Wambold observed, "It's too early to forecast results for the second quarter, but so far agricultural sales are well ahead of the year-ago pace and we are encouraged to see the first signs of winter weather across the country." He concluded, "We remain focused on executing our strategies and are confident there is potential for growth organically and by acquisition."
Statements in this release concerning expectations for the future are forward-looking statements. A variety of known and unknown risks, uncertainties and other factors could cause results, performance and expectations to differ materially from anticipated results, performance and expectations. These risks, uncertainties and other factors are discussed in the Form 10-K of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance Corp. for the fiscal year ended July 31, 2009, and other documents filed from time to time by these entities with the Securities and Exchange Commission.