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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Ferrellgas Partners LP | NYSE:FGP | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.3701 | 0 | 01:00:00 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended October 31, 2018
|
or
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from to
|
Delaware
Delaware
Delaware
Delaware
|
|
43-1698480
43-1742520
43-1698481
14-1866671
|
(States or other jurisdictions of incorporation or organization)
|
|
(I.R.S. Employer Identification Nos.)
|
|
|
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7500 College Boulevard,
Suite 1000, Overland Park, Kansas
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|
66210
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(Address of principal executive office)
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(Zip Code)
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Ferrellgas Partners, L.P.
|
|
97,152,665
|
|
Common Units
|
Ferrellgas Partners Finance Corp.
|
|
1,000
|
|
Common Stock
|
Ferrellgas, L.P.
|
|
n/a
|
|
n/a
|
Ferrellgas Finance Corp.
|
|
1,000
|
|
Common Stock
|
|
|
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Page
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|||
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|||
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|||
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|
|||
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|
|||
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|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Propane gas and related products
|
|
$
|
93,195
|
|
|
$
|
71,180
|
|
Appliances, parts and supplies, and other
|
|
13,365
|
|
|
12,514
|
|
||
Inventories
|
|
$
|
106,560
|
|
|
$
|
83,694
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Notes receivable, less current portion
|
|
$
|
27,569
|
|
|
$
|
27,491
|
|
Other
|
|
45,273
|
|
|
47,097
|
|
||
Other assets, net
|
|
$
|
72,842
|
|
|
$
|
74,588
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Accrued interest
|
|
$
|
54,210
|
|
|
$
|
22,222
|
|
Customer deposits and advances
|
|
34,056
|
|
|
22,829
|
|
||
Other
|
|
97,702
|
|
|
96,974
|
|
||
Other current liabilities
|
|
$
|
185,968
|
|
|
$
|
142,025
|
|
|
|
For the three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Operating expense
|
|
$
|
47,443
|
|
|
$
|
43,314
|
|
Depreciation and amortization expense
|
|
1,072
|
|
|
1,112
|
|
||
Equipment lease expense
|
|
7,519
|
|
|
6,069
|
|
||
Total shipping and handling expenses
|
|
$
|
56,034
|
|
|
$
|
50,495
|
|
|
|
For the three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Cash paid for:
|
|
|
|
|
||||
Interest
|
|
$
|
8,930
|
|
|
$
|
6,129
|
|
Income taxes
|
|
$
|
2
|
|
|
$
|
6
|
|
Non-cash investing and financing activities:
|
|
|
|
|
||||
Liabilities incurred in connection with acquisitions
|
|
$
|
1,096
|
|
|
$
|
1,232
|
|
Change in accruals for property, plant and equipment additions
|
|
$
|
(315
|
)
|
|
$
|
140
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Accounts receivable pledged as collateral
|
|
$
|
137,560
|
|
|
$
|
120,079
|
|
Accounts receivable
|
|
1,191
|
|
|
8,272
|
|
||
Note receivable - current portion
|
|
132
|
|
|
132
|
|
||
Other
|
|
27
|
|
|
26
|
|
||
Less: Allowance for doubtful accounts
|
|
(2,721
|
)
|
|
(2,455
|
)
|
||
Accounts and notes receivable, net
|
|
$
|
136,189
|
|
|
$
|
126,054
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||
Public common unitholders
|
|
69,612,939
|
|
|
69,612,939
|
|
Ferrell Companies (1)
|
|
22,529,361
|
|
|
22,529,361
|
|
FCI Trading Corp. (2)
|
|
195,686
|
|
|
195,686
|
|
Ferrell Propane, Inc. (3)
|
|
51,204
|
|
|
51,204
|
|
James E. Ferrell (4)
|
|
4,763,475
|
|
|
4,763,475
|
|
|
|
For the three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Public common unitholders
|
|
$
|
6,962
|
|
|
$
|
6,961
|
|
Ferrell Companies
|
|
2,253
|
|
|
2,253
|
|
||
FCI Trading Corp.
|
|
20
|
|
|
20
|
|
||
Ferrell Propane, Inc.
|
|
5
|
|
|
5
|
|
||
James E. Ferrell
|
|
476
|
|
|
476
|
|
||
General partner
|
|
98
|
|
|
98
|
|
||
|
|
$
|
9,814
|
|
|
$
|
9,813
|
|
|
|
For the three months ended October 31, 2018
|
||
Retail - Sales to End Users
|
|
$
|
217,764
|
|
Wholesale - Sales to Resellers
|
|
93,944
|
|
|
Other Gas Sales
|
|
23,258
|
|
|
Other
|
|
17,343
|
|
|
Propane and related equipment revenues
|
|
$
|
352,309
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Accounts receivable
|
|
$
|
125,864
|
|
|
$
|
119,818
|
|
|
|
|
|
|
||||
Contract assets
|
|
$
|
13,046
|
|
|
$
|
8,691
|
|
|
|
|
|
|
||||
Contract liabilities
|
|
|
|
|
||||
Deferred revenue (1)
|
|
$
|
42,880
|
|
|
$
|
29,933
|
|
|
|
Asset (Liability)
|
||||||||||||||
|
|
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Unobservable Inputs (Level 3)
|
|
Total
|
||||||||
October 31, 2018:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
15,302
|
|
|
$
|
—
|
|
|
$
|
15,302
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
(7,331
|
)
|
|
$
|
—
|
|
|
$
|
(7,331
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
July 31, 2018:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
22,470
|
|
|
$
|
—
|
|
|
$
|
22,470
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
(1,910
|
)
|
|
$
|
—
|
|
|
$
|
(1,910
|
)
|
|
|
October 31, 2018
|
||||||||||
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
Derivative Instrument
|
|
Location
|
|
Fair value
|
|
Location
|
|
Fair value
|
||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||
Commodity derivatives-propane
|
|
Prepaid expenses and other current assets
|
|
$
|
12,379
|
|
|
Other current liabilities
|
|
$
|
6,894
|
|
Commodity derivatives-propane
|
|
Other assets, net
|
|
2,923
|
|
|
Other liabilities
|
|
437
|
|
||
|
|
Total
|
|
$
|
15,302
|
|
|
Total
|
|
$
|
7,331
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
|
|
July 31, 2018
|
||||||||||
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
Derivative Instrument
|
|
Location
|
|
Fair value
|
|
Location
|
|
Fair value
|
||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||
Commodity derivatives-propane
|
|
Prepaid expenses and other current assets
|
|
$
|
17,123
|
|
|
Other current liabilities
|
|
$
|
1,832
|
|
Commodity derivatives-propane
|
|
Other assets, net
|
|
5,347
|
|
|
Other liabilities
|
|
78
|
|
||
|
|
Total
|
|
$
|
22,470
|
|
|
Total
|
|
$
|
1,910
|
|
|
|
October 31, 2018
|
||||||||||
|
|
Assets
|
|
Liabilities
|
||||||||
Description
|
|
Location
|
|
Amount
|
|
Location
|
|
Amount
|
||||
Margin Balances
|
|
Prepaid expenses and other current assets
|
|
$
|
4,265
|
|
|
Other current liabilities
|
|
$
|
6,605
|
|
|
|
Other assets, net
|
|
1,083
|
|
|
Other liabilities
|
|
1,778
|
|
||
|
|
|
|
$
|
5,348
|
|
|
|
|
$
|
8,383
|
|
|
|
July 31, 2018
|
||||||||||
|
|
Assets
|
|
Liabilities
|
||||||||
Description
|
|
Location
|
|
Amount
|
|
Location
|
|
Amount
|
||||
Margin Balances
|
|
Prepaid expenses and other current assets
|
|
$
|
2,851
|
|
|
Other current liabilities
|
|
$
|
12,308
|
|
|
|
Other assets, net
|
|
927
|
|
|
Other liabilities
|
|
4,235
|
|
||
|
|
|
|
$
|
3,778
|
|
|
|
|
$
|
16,543
|
|
|
|
For the three months ended October 31, 2018
|
|
|
||||||||||
Derivative Instrument
|
|
Amount of Gain (Loss) Recognized in AOCI
|
|
Location of Gain (Loss) Reclassified from AOCI into Income
|
|
Amount of Gain (Loss) Reclassified from AOCI into Income
|
||||||||
|
|
|
Effective portion
|
|
Ineffective portion
|
|||||||||
Commodity derivatives
|
|
$
|
(8,154
|
)
|
|
Cost of sales-propane and other gas liquids sales
|
|
$
|
4,433
|
|
|
$
|
—
|
|
|
|
$
|
(8,154
|
)
|
|
|
|
$
|
4,433
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the three months ended October 31, 2017
|
|
|
||||||||||
Derivative Instrument
|
|
Amount of Gain (Loss) Recognized in AOCI
|
|
Location of Gain (Loss) Reclassified from AOCI into Income
|
|
Amount of Gain (Loss) Reclassified from AOCI into Income
|
||||||||
|
|
|
Effective portion
|
|
Ineffective portion
|
|||||||||
Commodity derivatives
|
|
$
|
22,323
|
|
|
Cost of sales-propane and other gas liquids sales
|
|
$
|
4,132
|
|
|
$
|
—
|
|
Interest rate swap agreements
|
|
126
|
|
|
Interest expense
|
|
(183
|
)
|
|
—
|
|
|||
|
|
$
|
22,449
|
|
|
|
|
$
|
3,949
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended October 31, 2017
|
||||
Derivatives Not Designated as Hedging Instruments
|
|
Amount of Gain (Loss) Recognized in Income
|
|
Location of Gain (Loss) Recognized in Income
|
||
Commodity derivatives - crude oil
|
|
$
|
(1,390
|
)
|
|
Cost of sales - midstream operations
|
|
|
For the three months ended October 31,
|
||||||
Gains and losses on derivatives included in AOCI
|
|
2018
|
|
2017
|
||||
Beginning balance
|
|
$
|
20,560
|
|
|
$
|
14,648
|
|
Change in value of risk management commodity derivatives
|
|
(8,154
|
)
|
|
22,323
|
|
||
Reclassification of gains on commodity hedges to cost of sales - propane and other gas liquids sales, net
|
|
(4,433
|
)
|
|
(4,132
|
)
|
||
Change in value of risk management interest rate derivatives
|
|
—
|
|
|
126
|
|
||
Reclassification of losses on interest rate hedges to interest expense
|
|
—
|
|
|
183
|
|
||
Ending balance
|
|
$
|
7,973
|
|
|
$
|
33,148
|
|
|
|
For the three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Operating expense
|
|
$
|
59,958
|
|
|
$
|
57,351
|
|
|
|
|
|
|
||||
General and administrative expense
|
|
$
|
6,112
|
|
|
$
|
7,508
|
|
|
|
For the three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(in thousands, except per common unit amounts)
|
||||||
Common unitholders’ interest in net loss
|
|
$
|
(56,445
|
)
|
|
$
|
(47,436
|
)
|
|
|
|
|
|
||||
Weighted average common units outstanding - basic and diluted
|
|
97,152.7
|
|
|
97,152.7
|
|
||
|
|
|
|
|
||||
Basic and diluted net loss per common unit
|
|
$
|
(0.58
|
)
|
|
$
|
(0.49
|
)
|
|
|
Three months ended October 31, 2018
|
||||||||||
|
|
Propane operations and related equipment sales
|
|
Corporate and other
|
|
Total
|
||||||
Segment revenues
|
|
$
|
352,309
|
|
|
$
|
—
|
|
|
$
|
352,309
|
|
Direct costs (1)
|
|
323,594
|
|
|
10,874
|
|
|
334,468
|
|
|||
Adjusted EBITDA
|
|
$
|
28,715
|
|
|
$
|
(10,874
|
)
|
|
$
|
17,841
|
|
|
|
|
|
|
|
|
||||||
|
|
Three months ended October 31, 2017
|
||||||||||
|
|
Propane operations and related equipment sales
|
|
Corporate and other
|
|
Total
|
||||||
Segment revenues
|
|
$
|
333,895
|
|
|
$
|
120,760
|
|
|
$
|
454,655
|
|
Direct costs (1)
|
|
303,329
|
|
|
125,110
|
|
|
428,439
|
|
|||
Adjusted EBITDA
|
|
$
|
30,566
|
|
|
$
|
(4,350
|
)
|
|
$
|
26,216
|
|
|
|
Three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Net loss attributable to Ferrellgas Partners, L.P.
|
|
$
|
(57,015
|
)
|
|
$
|
(47,915
|
)
|
Income tax expense
|
|
158
|
|
|
377
|
|
||
Interest expense
|
|
43,878
|
|
|
40,807
|
|
||
Depreciation and amortization expense
|
|
18,992
|
|
|
25,732
|
|
||
EBITDA
|
|
6,013
|
|
|
19,001
|
|
||
Non-cash employee stock ownership plan compensation charge
|
|
2,748
|
|
|
3,962
|
|
||
Loss on asset sales and disposals
|
|
4,504
|
|
|
895
|
|
||
Other income, net
|
|
(19
|
)
|
|
(511
|
)
|
||
Severance costs
|
|
—
|
|
|
1,663
|
|
||
Legal fees and settlements
|
|
3,564
|
|
|
—
|
|
||
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments
|
|
—
|
|
|
1,607
|
|
||
Multi-employer pension plan withdrawal settlement
|
|
1,524
|
|
|
—
|
|
||
Net loss attributable to noncontrolling interest
|
|
(493
|
)
|
|
(401
|
)
|
||
Adjusted EBITDA
|
|
$
|
17,841
|
|
|
$
|
26,216
|
|
Assets
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Propane operations and related equipment sales
|
|
$
|
1,238,171
|
|
|
$
|
1,196,084
|
|
Corporate and other
|
|
105,619
|
|
|
167,197
|
|
||
Total consolidated assets
|
|
$
|
1,343,790
|
|
|
$
|
1,363,281
|
|
|
|
Three months ended October 31, 2018
|
||||||||||
|
|
Propane operations and related equipment sales
|
|
Corporate and other
|
|
Total
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
||||||
Maintenance
|
|
$
|
4,880
|
|
|
$
|
360
|
|
|
$
|
5,240
|
|
Growth
|
|
16,384
|
|
|
—
|
|
|
16,384
|
|
|||
Total
|
|
$
|
21,264
|
|
|
$
|
360
|
|
|
$
|
21,624
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
Three months ended October 31, 2017
|
||||||||||
|
|
Propane operations and related equipment sales
|
|
Corporate and other
|
|
Total
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
||||||
Maintenance
|
|
$
|
8,351
|
|
|
$
|
242
|
|
|
$
|
8,593
|
|
Growth
|
|
9,688
|
|
|
664
|
|
|
10,352
|
|
|||
Total
|
|
$
|
18,039
|
|
|
$
|
906
|
|
|
$
|
18,945
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Propane gas and related products
|
|
$
|
93,195
|
|
|
$
|
71,180
|
|
Appliances, parts and supplies, and other
|
|
13,365
|
|
|
12,514
|
|
||
Inventories
|
|
$
|
106,560
|
|
|
$
|
83,694
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Notes receivable, less current portion
|
|
$
|
27,569
|
|
|
$
|
27,491
|
|
Other
|
|
45,273
|
|
|
47,097
|
|
||
Other assets, net
|
|
$
|
72,842
|
|
|
$
|
74,588
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Accrued interest
|
|
$
|
42,578
|
|
|
$
|
18,288
|
|
Customer deposits and advances
|
|
34,056
|
|
|
22,829
|
|
||
Other
|
|
97,702
|
|
|
96,974
|
|
||
Other current liabilities
|
|
$
|
174,336
|
|
|
$
|
138,091
|
|
|
|
For the three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Operating expense
|
|
$
|
47,443
|
|
|
$
|
43,314
|
|
Depreciation and amortization expense
|
|
1,072
|
|
|
1,112
|
|
||
Equipment lease expense
|
|
7,519
|
|
|
6,069
|
|
||
Total shipping and handling expenses
|
|
$
|
56,034
|
|
|
$
|
50,495
|
|
|
|
For the three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Cash paid (refunded) for:
|
|
|
|
|
||||
Interest
|
|
$
|
8,930
|
|
|
$
|
6,129
|
|
Income taxes
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
Non-cash investing and financing activities:
|
|
|
|
|
||||
Liabilities incurred in connection with acquisitions
|
|
$
|
1,096
|
|
|
$
|
1,232
|
|
Change in accruals for property, plant and equipment additions
|
|
$
|
(315
|
)
|
|
$
|
140
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Accounts receivable pledged as collateral
|
|
$
|
137,560
|
|
|
$
|
120,079
|
|
Accounts receivable
|
|
1,191
|
|
|
8,272
|
|
||
Note receivable - current portion
|
|
132
|
|
|
132
|
|
||
Other
|
|
27
|
|
|
26
|
|
||
Less: Allowance for doubtful accounts
|
|
(2,721
|
)
|
|
(2,455
|
)
|
||
Accounts and notes receivable, net
|
|
$
|
136,189
|
|
|
$
|
126,054
|
|
|
|
For the three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Ferrellgas Partners
|
|
$
|
9,914
|
|
|
$
|
9,813
|
|
General partner
|
|
101
|
|
|
100
|
|
||
|
|
$
|
10,015
|
|
|
$
|
9,913
|
|
|
|
For the three months ended October 31, 2018
|
||
Retail - Sales to End Users
|
|
$
|
217,764
|
|
Wholesale - Sales to Resellers
|
|
93,944
|
|
|
Other Gas Sales
|
|
23,258
|
|
|
Other
|
|
17,343
|
|
|
Propane and related equipment revenues
|
|
$
|
352,309
|
|
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Accounts receivable
|
|
$
|
125,864
|
|
|
$
|
119,818
|
|
|
|
|
|
|
||||
Contract assets
|
|
$
|
13,046
|
|
|
$
|
8,691
|
|
|
|
|
|
|
||||
Contract liabilities
|
|
|
|
|
||||
Deferred revenue (1)
|
|
$
|
42,880
|
|
|
$
|
29,933
|
|
|
|
Asset (Liability)
|
||||||||||||||
|
|
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)
|
|
Significant Other Observable Inputs
(Level 2) |
|
Unobservable Inputs (Level 3)
|
|
Total
|
||||||||
October 31, 2018:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
15,302
|
|
|
$
|
—
|
|
|
$
|
15,302
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
(7,331
|
)
|
|
$
|
—
|
|
|
$
|
(7,331
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
July 31, 2018:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
22,470
|
|
|
$
|
—
|
|
|
$
|
22,470
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives
|
|
$
|
—
|
|
|
$
|
(1,910
|
)
|
|
$
|
—
|
|
|
$
|
(1,910
|
)
|
|
|
October 31, 2018
|
||||||||||
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
Derivative Instrument
|
|
Location
|
|
Fair value
|
|
Location
|
|
Fair value
|
||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||
Commodity derivatives-propane
|
|
Prepaid expenses and other current assets
|
|
$
|
12,379
|
|
|
Other current liabilities
|
|
$
|
6,894
|
|
Commodity derivatives-propane
|
|
Other assets, net
|
|
2,923
|
|
|
Other liabilities
|
|
437
|
|
||
|
|
Total
|
|
$
|
15,302
|
|
|
Total
|
|
$
|
7,331
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
July 31, 2018
|
||||||||||
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
Derivative Instrument
|
|
Location
|
|
Fair value
|
|
Location
|
|
Fair value
|
||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||
Commodity derivatives-propane
|
|
Prepaid expenses and other current assets
|
|
$
|
17,123
|
|
|
Other current liabilities
|
|
$
|
1,832
|
|
Commodity derivatives-propane
|
|
Other assets, net
|
|
5,347
|
|
|
Other liabilities
|
|
78
|
|
||
|
|
Total
|
|
$
|
22,470
|
|
|
Total
|
|
$
|
1,910
|
|
|
|
October 31, 2018
|
||||||||||
|
|
Assets
|
|
Liabilities
|
||||||||
Description
|
|
Location
|
|
Amount
|
|
Location
|
|
Amount
|
||||
Margin Balances
|
|
Prepaid expenses and other current assets
|
|
$
|
4,265
|
|
|
Other current liabilities
|
|
$
|
6,605
|
|
|
|
Other assets, net
|
|
1,083
|
|
|
Other liabilities
|
|
1,778
|
|
||
|
|
|
|
$
|
5,348
|
|
|
|
|
$
|
8,383
|
|
|
|
July 31, 2018
|
||||||||||
|
|
Assets
|
|
Liabilities
|
||||||||
Description
|
|
Location
|
|
Amount
|
|
Location
|
|
Amount
|
||||
Margin Balances
|
|
Prepaid expenses and other current assets
|
|
$
|
2,851
|
|
|
Other current liabilities
|
|
$
|
12,308
|
|
|
|
Other assets, net
|
|
927
|
|
|
Other liabilities
|
|
4,235
|
|
||
|
|
|
|
$
|
3,778
|
|
|
|
|
$
|
16,543
|
|
|
|
For the three months ended October 31, 2018
|
|
|
||||||||||
Derivative Instrument
|
|
Amount of Gain (Loss) Recognized in AOCI
|
|
Location of Gain (Loss) Reclassified from AOCI into Income
|
|
Amount of Gain (Loss) Reclassified from AOCI into Income
|
||||||||
|
|
|
Effective portion
|
|
Ineffective portion
|
|||||||||
Commodity derivatives
|
|
$
|
(8,154
|
)
|
|
Cost of sales-propane and other gas liquids sales
|
|
$
|
4,433
|
|
|
$
|
—
|
|
|
|
$
|
(8,154
|
)
|
|
|
|
$
|
4,433
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the three months ended October 31, 2017
|
|
|
||||||||||
Derivative Instrument
|
|
Amount of Gain (Loss) Recognized in AOCI
|
|
Location of Gain (Loss) Reclassified from AOCI into Income
|
|
Amount of Gain (Loss) Reclassified from AOCI into Income
|
||||||||
|
|
|
Effective portion
|
|
Ineffective portion
|
|||||||||
Commodity derivatives
|
|
$
|
22,323
|
|
|
Cost of sales-propane and other gas liquids sales
|
|
$
|
4,132
|
|
|
$
|
—
|
|
Interest rate swap agreements
|
|
126
|
|
|
Interest expense
|
|
(183
|
)
|
|
—
|
|
|||
|
|
$
|
22,449
|
|
|
|
|
$
|
3,949
|
|
|
$
|
—
|
|
|
|
For the three months ended October 31, 2017
|
||||
Derivatives Not Designated as Hedging Instruments
|
|
Amount of Gain (Loss) Recognized in Income
|
|
Location of Gain (Loss) Recognized in Income
|
||
Commodity derivatives - crude oil
|
|
$
|
(1,390
|
)
|
|
Cost of sales - midstream operations
|
|
|
For the three months ended October 31,
|
||||||
Gains and losses on derivatives included in AOCI
|
|
2018
|
|
2017
|
||||
Beginning balance
|
|
$
|
20,560
|
|
|
$
|
14,648
|
|
Change in value of risk management commodity derivatives
|
|
(8,154
|
)
|
|
22,323
|
|
||
Reclassification of gains on commodity hedges to cost of sales - propane and other gas liquids sales, net
|
|
(4,433
|
)
|
|
(4,132
|
)
|
||
Change in value of risk management interest rate derivatives
|
|
—
|
|
|
126
|
|
||
Reclassification of losses on interest rate hedges to interest expense
|
|
—
|
|
|
183
|
|
||
Ending balance
|
|
$
|
7,973
|
|
|
$
|
33,148
|
|
|
|
For the three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Operating expense
|
|
$
|
59,958
|
|
|
$
|
57,351
|
|
|
|
|
|
|
||||
General and administrative expense
|
|
$
|
6,112
|
|
|
$
|
7,508
|
|
|
|
Three months ended October 31, 2018
|
||||||||||
|
|
Propane operations and related equipment sales
|
|
Corporate and other
|
|
Total
|
||||||
Segment revenues
|
|
$
|
352,309
|
|
|
$
|
—
|
|
|
$
|
352,309
|
|
Direct costs (1)
|
|
323,594
|
|
|
10,870
|
|
|
334,464
|
|
|||
Adjusted EBITDA
|
|
$
|
28,715
|
|
|
$
|
(10,870
|
)
|
|
$
|
17,845
|
|
|
|
|
|
|
|
|
||||||
|
|
Three months ended October 31, 2017
|
||||||||||
|
|
Propane operations and related equipment sales
|
|
Corporate and other
|
|
Total
|
||||||
Segment revenues
|
|
$
|
333,895
|
|
|
$
|
120,760
|
|
|
$
|
454,655
|
|
Direct costs (1)
|
|
303,329
|
|
|
125,110
|
|
|
428,439
|
|
|||
Adjusted EBITDA
|
|
$
|
30,566
|
|
|
$
|
(4,350
|
)
|
|
$
|
26,216
|
|
|
|
|
|
|
|
|
|
|
Three months ended October 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Net loss
|
|
$
|
(48,814
|
)
|
|
$
|
(39,699
|
)
|
Income tax expense
|
|
151
|
|
|
371
|
|
||
Interest expense
|
|
35,195
|
|
|
32,196
|
|
||
Depreciation and amortization expense
|
|
18,992
|
|
|
25,732
|
|
||
EBITDA
|
|
5,524
|
|
|
18,600
|
|
||
Non-cash employee stock ownership plan compensation charge
|
|
2,748
|
|
|
3,962
|
|
||
Loss on asset sales and disposals
|
|
4,504
|
|
|
895
|
|
||
Other income, net
|
|
(19
|
)
|
|
(511
|
)
|
||
Severance costs
|
|
—
|
|
|
1,663
|
|
||
Legal fees and settlements
|
|
3,564
|
|
|
—
|
|
||
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments
|
|
—
|
|
|
1,607
|
|
||
Multi-employer pension plan withdrawal settlement
|
|
1,524
|
|
|
—
|
|
||
Adjusted EBITDA
|
|
$
|
17,845
|
|
|
$
|
26,216
|
|
Assets
|
|
October 31, 2018
|
|
July 31, 2018
|
||||
Propane operations and related equipment sales
|
|
$
|
1,238,171
|
|
|
$
|
1,196,084
|
|
Corporate and other
|
|
105,461
|
|
|
167,162
|
|
||
Total consolidated assets
|
|
$
|
1,343,632
|
|
|
$
|
1,363,246
|
|
|
|
Three months ended October 31, 2018
|
||||||||||
|
|
Propane operations and related equipment sales
|
|
Corporate and other
|
|
Total
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
||||||
Maintenance
|
|
$
|
4,880
|
|
|
$
|
360
|
|
|
$
|
5,240
|
|
Growth
|
|
16,384
|
|
|
—
|
|
|
16,384
|
|
|||
Total
|
|
$
|
21,264
|
|
|
$
|
360
|
|
|
$
|
21,624
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
Three months ended October 31, 2017
|
||||||||||
|
|
Propane operations and related equipment sales
|
|
Corporate and other
|
|
Total
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
||||||
Maintenance
|
|
$
|
8,351
|
|
|
$
|
242
|
|
|
$
|
8,593
|
|
Growth
|
|
9,688
|
|
|
664
|
|
|
10,352
|
|
|||
Total
|
|
$
|
18,039
|
|
|
$
|
906
|
|
|
$
|
18,945
|
|
FERRELLGAS, L.P. AND SUBSIDIARIES
|
|||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|||||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||||
|
As of October 31, 2018
|
||||||||||||||||||||||
|
Ferrellgas, L.P. (Parent and Co-Issuer)
|
|
Ferrellgas Finance Corp. (Co-Issuer)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
62,786
|
|
|
$
|
1
|
|
|
$
|
306
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
63,093
|
|
Accounts and notes receivable, net
|
(3,710
|
)
|
|
—
|
|
|
263
|
|
|
139,636
|
|
|
—
|
|
|
136,189
|
|
||||||
Intercompany receivables
|
(8,469
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,469
|
|
|
—
|
|
||||||
Inventories
|
106,560
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106,560
|
|
||||||
Prepaid expenses and other current assets
|
31,491
|
|
|
—
|
|
|
2,446
|
|
|
3
|
|
|
—
|
|
|
33,940
|
|
||||||
Total current assets
|
188,658
|
|
|
1
|
|
|
3,015
|
|
|
139,639
|
|
|
8,469
|
|
|
339,782
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment, net
|
566,044
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
566,078
|
|
||||||
Goodwill, net
|
247,478
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
247,478
|
|
||||||
Intangible assets, net
|
117,452
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117,452
|
|
||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Investments in consolidated subsidiaries
|
59,917
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59,917
|
)
|
|
—
|
|
||||||
Other assets, net
|
68,850
|
|
|
—
|
|
|
2,875
|
|
|
1,117
|
|
|
—
|
|
|
72,842
|
|
||||||
Total assets
|
$
|
1,248,399
|
|
|
$
|
1
|
|
|
$
|
5,924
|
|
|
$
|
140,756
|
|
|
$
|
(51,448
|
)
|
|
$
|
1,343,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
|
|
|
|
|
|
|
|
|
|||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accounts payable
|
$
|
59,552
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
59,664
|
|
Short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Collateralized note payable
|
—
|
|
|
—
|
|
|
—
|
|
|
90,000
|
|
|
—
|
|
|
90,000
|
|
||||||
Intercompany payables
|
—
|
|
|
—
|
|
|
(192
|
)
|
|
(8,277
|
)
|
|
8,469
|
|
|
—
|
|
||||||
Other current liabilities
|
169,282
|
|
|
—
|
|
|
2,660
|
|
|
2,394
|
|
|
—
|
|
|
174,336
|
|
||||||
Total current liabilities
|
228,834
|
|
|
—
|
|
|
2,468
|
|
|
84,229
|
|
|
8,469
|
|
|
324,000
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
1,729,724
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,729,724
|
|
||||||
Other liabilities
|
38,587
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
38,654
|
|
||||||
Contingencies and commitments
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Partners' capital (deficit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Partners' equity
|
(756,892
|
)
|
|
1
|
|
|
3,389
|
|
|
56,527
|
|
|
(59,917
|
)
|
|
(756,892
|
)
|
||||||
Accumulated other comprehensive income
|
8,146
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,146
|
|
||||||
Total partners' capital (deficit)
|
(748,746
|
)
|
|
1
|
|
|
3,389
|
|
|
56,527
|
|
|
(59,917
|
)
|
|
(748,746
|
)
|
||||||
Total liabilities and partners' capital (deficit)
|
$
|
1,248,399
|
|
|
$
|
1
|
|
|
$
|
5,924
|
|
|
$
|
140,756
|
|
|
$
|
(51,448
|
)
|
|
$
|
1,343,632
|
|
|
|
|
|
|
|
|
FERRELLGAS, L.P. AND SUBSIDIARIES
|
|||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS
|
|||||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||||
|
As of July 31, 2018
|
||||||||||||||||||||||
|
Ferrellgas, L.P. (Parent and Co-Issuer)
|
|
Ferrellgas Finance Corp. (Co-Issuer)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
119,133
|
|
|
$
|
1
|
|
|
$
|
174
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
119,308
|
|
Accounts and notes receivable, net
|
(3,420
|
)
|
|
—
|
|
|
9,395
|
|
|
120,079
|
|
|
—
|
|
|
126,054
|
|
||||||
Intercompany receivables
|
15,660
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,660
|
)
|
|
—
|
|
||||||
Inventories
|
83,694
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83,694
|
|
||||||
Prepaid expenses and other current assets
|
34,050
|
|
|
—
|
|
|
775
|
|
|
5
|
|
|
—
|
|
|
34,830
|
|
||||||
Total current assets
|
249,117
|
|
|
1
|
|
|
10,344
|
|
|
120,084
|
|
|
(15,660
|
)
|
|
363,886
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment, net
|
557,689
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
557,723
|
|
||||||
Goodwill, net
|
246,098
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
246,098
|
|
||||||
Intangible assets, net
|
120,951
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120,951
|
|
||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Investments in consolidated subsidiaries
|
59,937
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59,937
|
)
|
|
—
|
|
||||||
Other assets, net
|
63,411
|
|
|
—
|
|
|
9,961
|
|
|
1,216
|
|
|
—
|
|
|
74,588
|
|
||||||
Total assets
|
$
|
1,297,203
|
|
|
$
|
1
|
|
|
$
|
20,339
|
|
|
$
|
121,300
|
|
|
$
|
(75,597
|
)
|
|
$
|
1,363,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
|
|
|
|
|
|
|
|
|
|||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accounts payable
|
$
|
45,171
|
|
|
$
|
—
|
|
|
$
|
1,547
|
|
|
$
|
102
|
|
|
$
|
—
|
|
|
$
|
46,820
|
|
Short-term borrowings
|
32,800
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,800
|
|
||||||
Collateralized note payable
|
—
|
|
|
—
|
|
|
—
|
|
|
58,000
|
|
|
—
|
|
|
58,000
|
|
||||||
Intercompany payables
|
—
|
|
|
—
|
|
|
(143
|
)
|
|
15,803
|
|
|
(15,660
|
)
|
|
—
|
|
||||||
Other current liabilities
|
131,702
|
|
|
—
|
|
|
6,036
|
|
|
353
|
|
|
—
|
|
|
138,091
|
|
||||||
Total current liabilities
|
209,673
|
|
|
—
|
|
|
7,440
|
|
|
74,258
|
|
|
(15,660
|
)
|
|
275,711
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
1,728,137
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,728,137
|
|
||||||
Other liabilities
|
39,471
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
39,476
|
|
||||||
Contingencies and commitments
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Partners' capital (deficit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Partners' equity
|
(700,811
|
)
|
|
1
|
|
|
12,894
|
|
|
47,042
|
|
|
(59,937
|
)
|
|
(700,811
|
)
|
||||||
Accumulated other comprehensive income
|
20,733
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,733
|
|
||||||
Total partners' capital (deficit)
|
(680,078
|
)
|
|
1
|
|
|
12,894
|
|
|
47,042
|
|
|
(59,937
|
)
|
|
(680,078
|
)
|
||||||
Total liabilities and partners' capital (deficit)
|
$
|
1,297,203
|
|
|
$
|
1
|
|
|
$
|
20,339
|
|
|
$
|
121,300
|
|
|
$
|
(75,597
|
)
|
|
$
|
1,363,246
|
|
|
|
|
|
|
|
|
FERRELLGAS, L.P. AND SUBSIDIARIES
|
|||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||||
|
|
||||||||||||||||||||||
|
For the three months ended October 31, 2018
|
||||||||||||||||||||||
|
Ferrellgas, L.P. (Parent and Co-Issuer)
|
|
Ferrellgas Finance Corp. (Co-Issuer)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Propane and other gas liquids sales
|
$
|
334,966
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
334,966
|
|
Other
|
17,343
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,343
|
|
||||||
Total revenues
|
352,309
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
352,309
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales - propane and other gas liquids sales
|
204,136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204,136
|
|
||||||
Cost of sales - other
|
3,047
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,047
|
|
||||||
Operating expense
|
110,331
|
|
|
—
|
|
|
—
|
|
|
1,017
|
|
|
(1,017
|
)
|
|
110,331
|
|
||||||
Depreciation and amortization expense
|
18,881
|
|
|
—
|
|
|
—
|
|
|
111
|
|
|
—
|
|
|
18,992
|
|
||||||
General and administrative expense
|
14,173
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,175
|
|
||||||
Equipment lease expense
|
7,863
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,863
|
|
||||||
Non-cash employee stock ownership plan compensation charge
|
2,748
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,748
|
|
||||||
Loss on asset sales and disposals
|
1,996
|
|
|
—
|
|
|
2,508
|
|
|
—
|
|
|
—
|
|
|
4,504
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating loss
|
(10,866
|
)
|
|
(2
|
)
|
|
(2,508
|
)
|
|
(1,128
|
)
|
|
1,017
|
|
|
(13,487
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
(34,348
|
)
|
|
—
|
|
|
—
|
|
|
(847
|
)
|
|
—
|
|
|
(35,195
|
)
|
||||||
Other income, net
|
19
|
|
|
—
|
|
|
—
|
|
|
2,203
|
|
|
(2,203
|
)
|
|
19
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) before income taxes
|
(45,195
|
)
|
|
(2
|
)
|
|
(2,508
|
)
|
|
228
|
|
|
(1,186
|
)
|
|
(48,663
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax expense
|
151
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151
|
|
||||||
Equity in earnings of subsidiary
|
(2,282
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,282
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net earnings (loss)
|
(47,628
|
)
|
|
(2
|
)
|
|
(2,508
|
)
|
|
228
|
|
|
1,096
|
|
|
(48,814
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive loss
|
(12,587
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,587
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
(60,215
|
)
|
|
$
|
(2
|
)
|
|
$
|
(2,508
|
)
|
|
$
|
228
|
|
|
$
|
1,096
|
|
|
$
|
(61,401
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
FERRELLGAS, L.P. AND SUBSIDIARIES
|
|||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
|
|||||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||||
|
|
||||||||||||||||||||||
|
For the three months ended October 31, 2017
|
||||||||||||||||||||||
|
Ferrellgas, L.P. (Parent and Co-Issuer)
|
|
Ferrellgas Finance Corp. (Co-Issuer)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Propane and other gas liquids sales
|
$
|
302,117
|
|
|
$
|
—
|
|
|
$
|
641
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
302,758
|
|
Midstream operations
|
—
|
|
|
—
|
|
|
120,760
|
|
|
—
|
|
|
—
|
|
|
120,760
|
|
||||||
Other
|
16,677
|
|
|
—
|
|
|
14,460
|
|
|
—
|
|
|
—
|
|
|
31,137
|
|
||||||
Total revenues
|
318,794
|
|
|
—
|
|
|
135,861
|
|
|
—
|
|
|
—
|
|
|
454,655
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales - propane and other gas liquids sales
|
178,819
|
|
|
—
|
|
|
696
|
|
|
—
|
|
|
—
|
|
|
179,515
|
|
||||||
Cost of sales - midstream operations
|
—
|
|
|
—
|
|
|
108,125
|
|
|
—
|
|
|
—
|
|
|
108,125
|
|
||||||
Cost of sales - other
|
2,709
|
|
|
—
|
|
|
10,993
|
|
|
—
|
|
|
—
|
|
|
13,702
|
|
||||||
Operating expense
|
101,232
|
|
|
—
|
|
|
9,263
|
|
|
1,182
|
|
|
(1,215
|
)
|
|
110,462
|
|
||||||
Depreciation and amortization expense
|
18,347
|
|
|
—
|
|
|
7,313
|
|
|
72
|
|
|
—
|
|
|
25,732
|
|
||||||
General and administrative expense
|
10,755
|
|
|
2
|
|
|
2,407
|
|
|
—
|
|
|
—
|
|
|
13,164
|
|
||||||
Equipment lease expense
|
6,648
|
|
|
—
|
|
|
93
|
|
|
—
|
|
|
—
|
|
|
6,741
|
|
||||||
Non-cash employee stock ownership plan compensation charge
|
3,962
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,962
|
|
||||||
Loss on asset sales and disposals
|
908
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
895
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating loss
|
(4,586
|
)
|
|
(2
|
)
|
|
(3,016
|
)
|
|
(1,254
|
)
|
|
1,215
|
|
|
(7,643
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
(20,394
|
)
|
|
—
|
|
|
(11,185
|
)
|
|
(617
|
)
|
|
—
|
|
|
(32,196
|
)
|
||||||
Other income, net
|
215
|
|
|
—
|
|
|
296
|
|
|
1,215
|
|
|
(1,215
|
)
|
|
511
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss before income taxes
|
(24,765
|
)
|
|
(2
|
)
|
|
(13,905
|
)
|
|
(656
|
)
|
|
—
|
|
|
(39,328
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax expense (benefit)
|
(10
|
)
|
|
—
|
|
|
381
|
|
|
—
|
|
|
—
|
|
|
371
|
|
||||||
Equity in loss of subsidiary
|
(14,944
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,944
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss
|
(39,699
|
)
|
|
(2
|
)
|
|
(14,286
|
)
|
|
(656
|
)
|
|
14,944
|
|
|
(39,699
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income
|
18,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,500
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive loss
|
$
|
(21,199
|
)
|
|
$
|
(2
|
)
|
|
$
|
(14,286
|
)
|
|
$
|
(656
|
)
|
|
$
|
14,944
|
|
|
$
|
(21,199
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
FERRELLGAS, L.P. AND SUBSIDIARIES
|
|||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
For the three months ended October 31, 2018
|
||||||||||||||||||||||
|
Ferrellgas, L.P. (Parent and Co-Issuer)
|
|
Ferrellgas Finance Corp. (Co-Issuer)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities
|
$
|
11,666
|
|
|
$
|
(2
|
)
|
|
$
|
19,961
|
|
|
$
|
(17,231
|
)
|
|
$
|
(32,000
|
)
|
|
$
|
(17,606
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Business acquisitions, net of cash acquired
|
(4,625
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,625
|
)
|
||||||
Capital expenditures
|
(23,433
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,433
|
)
|
||||||
Proceeds from sale of assets
|
1,061
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,061
|
|
||||||
Cash collected for purchase of interest in accounts receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
242,912
|
|
|
(242,912
|
)
|
|
—
|
|
||||||
Cash remitted to Ferrellgas, L.P. for accounts receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
(274,912
|
)
|
|
274,912
|
|
|
—
|
|
||||||
Net changes in advances with consolidated entities
|
2,585
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,585
|
)
|
|
—
|
|
||||||
Other
|
(292
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(292
|
)
|
||||||
Net cash used in investing activities
|
(24,704
|
)
|
|
—
|
|
|
—
|
|
|
(32,000
|
)
|
|
29,415
|
|
|
(27,289
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Distributions
|
(10,015
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,015
|
)
|
||||||
Payments on long-term debt
|
(281
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(281
|
)
|
||||||
Net reductions in short-term borrowings
|
(32,800
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(32,800
|
)
|
||||||
Net additions to collateralized short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
32,000
|
|
|
—
|
|
|
32,000
|
|
||||||
Net changes in advances with parent
|
—
|
|
|
2
|
|
|
(19,829
|
)
|
|
17,242
|
|
|
2,585
|
|
|
—
|
|
||||||
Cash paid for financing costs
|
(213
|
)
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(224
|
)
|
||||||
Net cash provided by (used in) financing activities
|
(43,309
|
)
|
|
2
|
|
|
(19,829
|
)
|
|
49,231
|
|
|
2,585
|
|
|
(11,320
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net change in cash and cash equivalents
|
(56,347
|
)
|
|
—
|
|
|
132
|
|
|
—
|
|
|
—
|
|
|
(56,215
|
)
|
||||||
Cash and cash equivalents - beginning of year
|
119,133
|
|
|
1
|
|
|
174
|
|
|
—
|
|
|
—
|
|
|
119,308
|
|
||||||
Cash and cash equivalents - end of year
|
$
|
62,786
|
|
|
$
|
1
|
|
|
$
|
306
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
63,093
|
|
|
|
|
|
|
|
|
FERRELLGAS, L.P. AND SUBSIDIARIES
|
|||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
|
|||||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
For the three months ended October 31, 2017
|
||||||||||||||||||||||
|
Ferrellgas, L.P. (Parent and Co-Issuer)
|
|
Ferrellgas Finance Corp. (Co-Issuer)
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities
|
$
|
23,305
|
|
|
$
|
(2
|
)
|
|
$
|
(22,294
|
)
|
|
$
|
25,981
|
|
|
$
|
(19,000
|
)
|
|
$
|
7,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Business acquisitions, net of cash acquired
|
(13,867
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,867
|
)
|
||||||
Capital expenditures
|
(19,429
|
)
|
|
—
|
|
|
(725
|
)
|
|
—
|
|
|
—
|
|
|
(20,154
|
)
|
||||||
Proceeds from sale of assets
|
1,208
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,208
|
|
||||||
Cash collected for purchase of interest in accounts receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
203,291
|
|
|
(203,291
|
)
|
|
—
|
|
||||||
Cash remitted to Ferrellgas, L.P. for accounts receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
(222,291
|
)
|
|
222,291
|
|
|
—
|
|
||||||
Net changes in advances with consolidated entities
|
3,088
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,088
|
)
|
|
—
|
|
||||||
Net cash provided by (used in) investing activities
|
(29,000
|
)
|
|
—
|
|
|
(725
|
)
|
|
(19,000
|
)
|
|
15,912
|
|
|
(32,813
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Distributions
|
(9,913
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,913
|
)
|
||||||
Proceeds from increase in long-term debt
|
23,580
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,580
|
|
||||||
Payments on long-term debt
|
(281
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(281
|
)
|
||||||
Net reductions in short-term borrowings
|
(5,879
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,879
|
)
|
||||||
Net additions to collateralized short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
19,000
|
|
|
—
|
|
|
19,000
|
|
||||||
Net changes in advances with parent
|
—
|
|
|
2
|
|
|
22,891
|
|
|
(25,981
|
)
|
|
3,088
|
|
|
—
|
|
||||||
Cash paid for financing costs
|
(287
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(287
|
)
|
||||||
Net cash provided by (used in) financing activities
|
7,220
|
|
|
2
|
|
|
22,891
|
|
|
(6,981
|
)
|
|
3,088
|
|
|
26,220
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net change in cash and cash equivalents
|
1,525
|
|
|
—
|
|
|
(128
|
)
|
|
—
|
|
|
—
|
|
|
1,397
|
|
||||||
Cash and cash equivalents - beginning of year
|
5,327
|
|
|
1
|
|
|
373
|
|
|
—
|
|
|
—
|
|
|
5,701
|
|
||||||
Cash and cash equivalents - end of year
|
$
|
6,852
|
|
|
$
|
1
|
|
|
$
|
245
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,098
|
|
|
|
|
|
|
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
“us,” “we,” “our,” “ours,” “consolidated,” or "Ferrellgas" are references exclusively to Ferrellgas Partners, L.P. together with its consolidated subsidiaries, including Ferrellgas Partners Finance Corp., Ferrellgas, L.P. and Ferrellgas Finance Corp., except when used in connection with “common units,” in which case these terms refer to Ferrellgas Partners, L.P. without its consolidated subsidiaries;
|
•
|
“Ferrellgas Partners” refers to Ferrellgas Partners, L.P. itself, without its consolidated subsidiaries;
|
•
|
the “operating partnership” refers to Ferrellgas, L.P., together with its consolidated subsidiaries, including Ferrellgas Finance Corp.;
|
•
|
our “general partner” refers to Ferrellgas, Inc.;
|
•
|
“Ferrell Companies” refers to Ferrell Companies, Inc., the sole shareholder of our general partner;
|
•
|
“unitholders” refers to holders of common units of Ferrellgas Partners;
|
•
|
"GAAP" refers to accounting principles generally accepted in the United States;
|
•
|
“retail sales” refers to Propane and other gas liquid sales: Retail - Sales to End Users or the volume of propane sold primarily to our residential, industrial/commercial and agricultural customers;
|
•
|
“wholesale sales” refers to Propane and other gas liquid sales: Wholesale - Sales to Resellers or the volume of propane sold primarily to our portable tank exchange customers and bulk propane sold to wholesale customers;
|
•
|
“other gas sales” refers to Propane and other gas liquid sales: Other Gas Sales or the volume of bulk propane sold to other third party propane distributors or marketers and the volume of refined fuel sold;
|
•
|
“propane sales volume” refers to the volume of propane sold to our retail sales and wholesale sales customers;
|
•
|
"Jamex" refers to Jamex Marketing, LLC;
|
•
|
“Notes” refers to the notes of the condensed consolidated financial statements of Ferrellgas Partners or the operating partnership, as applicable;
|
•
|
the effect of weather conditions on the demand for propane;
|
•
|
the prices of wholesale propane, motor fuel and crude oil;
|
•
|
disruptions to the supply of propane;
|
•
|
competition from other industry participants and other energy sources;
|
•
|
energy efficiency and technology advances;
|
•
|
adverse changes in our relationships with our national tank exchange customers;
|
•
|
significant delays in the collection of accounts or notes receivable;
|
•
|
customer, counterparty, supplier or vendor defaults;
|
•
|
changes in demand for, and production of, hydrocarbon products;
|
•
|
increased trucking and rail regulations;
|
•
|
inherent operating and litigation risks in gathering, transporting, handling and storing propane;
|
•
|
our inability to complete acquisitions or to successfully integrate acquired operations;
|
•
|
costs of complying with, or liabilities imposed under, environmental, health and safety laws;
|
•
|
the impact of pending and future legal proceedings;
|
•
|
the interruption, disruption, failure or malfunction of our information technology systems including due to cyber attack;
|
•
|
the impact of changes in tax law that could adversely affect the tax treatment of Ferrellgas Partners for federal income tax purposes;
|
•
|
economic and political instability, particularly in areas of the world tied to the energy industry; and
|
•
|
disruptions in the capital and credit markets.
|
•
|
During July 2018, we completed the sale of a subsidiary and a group of assets within the Midstream operations segment. The subsidiary sold was Bridger Environmental LLC, which encompassed all saltwater disposal activities previously operated by us. The group of assets sold included all assets, excluding working capital, associated with the crude oil trucking operations previously operated by us. Additionally, the sale included two crude oil injection terminals.
|
•
|
During the third quarter of fiscal 2018, we sold all 1,292 rail tank cars utilized in our Midstream operations segment.
|
•
|
During the second quarter of fiscal 2018, we completed the sale of Bridger Energy, LLC, included in our Midstream operations segment.
|
•
|
During July 2018, we completed the sale of a group of assets encompassing an immaterial reporting unit within our Propane operations segment that sold lower margin propane related equipment.
|
•
|
Operating loss and adjusted EBITDA associated with these divestitures in the first quarter of fiscal 2018 was $3.0 million and $7.2 million, respectively.
|
|
|
Three months ended October 31,
|
||||||
(amounts in thousands)
|
|
2018
|
|
2017
|
||||
Total revenues
|
|
$
|
352,309
|
|
|
$
|
454,655
|
|
|
|
|
|
|
||||
Total cost of sales
|
|
207,183
|
|
|
301,342
|
|
||
|
|
|
|
|
||||
Operating expense
|
|
110,331
|
|
|
110,462
|
|
||
Depreciation and amortization expense
|
|
18,992
|
|
|
25,732
|
|
||
General and administrative expense
|
|
14,179
|
|
|
13,164
|
|
||
Equipment lease expense
|
|
7,863
|
|
|
6,741
|
|
||
Non-cash employee stock ownership plan compensation charge
|
|
2,748
|
|
|
3,962
|
|
||
Loss on asset sales and disposals
|
|
4,504
|
|
|
895
|
|
||
Operating loss
|
|
(13,491
|
)
|
|
(7,643
|
)
|
||
Interest expense
|
|
(43,878
|
)
|
|
(40,807
|
)
|
||
Other income, net
|
|
19
|
|
|
511
|
|
||
Loss before income taxes
|
|
(57,350
|
)
|
|
(47,939
|
)
|
||
Income tax expense
|
|
158
|
|
|
377
|
|
||
Net loss
|
|
(57,508
|
)
|
|
(48,316
|
)
|
||
Net loss attributable to noncontrolling interest
|
|
(493
|
)
|
|
(401
|
)
|
||
Net loss attributable to Ferrellgas Partners, L.P.
|
|
(57,015
|
)
|
|
(47,915
|
)
|
||
Less: General partner's interest in net loss
|
|
(570
|
)
|
|
(479
|
)
|
||
Common unitholders' interest in net loss
|
|
$
|
(56,445
|
)
|
|
$
|
(47,436
|
)
|
|
|
Three months ended October 31,
|
||||||
(amounts in thousands)
|
|
2018
|
|
2017
|
||||
Net loss attributable to Ferrellgas Partners, L.P.
|
|
$
|
(57,015
|
)
|
|
$
|
(47,915
|
)
|
Income tax expense
|
|
158
|
|
|
377
|
|
||
Interest expense
|
|
43,878
|
|
|
40,807
|
|
||
Depreciation and amortization expense
|
|
18,992
|
|
|
25,732
|
|
||
EBITDA
|
|
6,013
|
|
|
19,001
|
|
||
Non-cash employee stock ownership plan compensation charge
|
|
2,748
|
|
|
3,962
|
|
||
Loss on asset sales and disposals
|
|
4,504
|
|
|
895
|
|
||
Other income, net
|
|
(19
|
)
|
|
(511
|
)
|
||
Severance costs
|
|
—
|
|
|
1,663
|
|
||
Legal fees and settlements
|
|
3,564
|
|
|
—
|
|
||
Multi-employer pension plan withdrawal settlement
|
|
1,524
|
|
|
—
|
|
||
Unrealized (non-cash) loss on changes in fair value of derivatives not designated as hedging instruments
|
|
—
|
|
|
1,607
|
|
||
Net loss attributable to noncontrolling interest
|
|
(493
|
)
|
|
(401
|
)
|
||
Adjusted EBITDA
|
|
17,841
|
|
|
26,216
|
|
||
Net cash interest expense (a)
|
|
(40,899
|
)
|
|
(38,057
|
)
|
||
Maintenance capital expenditures (b)
|
|
(5,385
|
)
|
|
(8,704
|
)
|
||
Cash paid for taxes
|
|
(2
|
)
|
|
(6
|
)
|
||
Proceeds from asset sales
|
|
1,061
|
|
|
1,208
|
|
||
Distributable cash flow shortage attributable to equity investors
|
|
(27,384
|
)
|
|
(19,343
|
)
|
||
Distributable cash flow shortage attributable to general partner and non-controlling interest
|
|
(548
|
)
|
|
(387
|
)
|
||
Distributable cash flow shortage attributable to common unitholders
|
|
(26,836
|
)
|
|
(18,956
|
)
|
||
Less: Distributions paid to common unitholders
|
|
9,715
|
|
|
9,715
|
|
||
Distributable cash flow shortage (c)
|
|
$
|
(36,551
|
)
|
|
$
|
(28,671
|
)
|
(a)
|
Net cash interest expense is the sum of interest expense less non-cash interest expense and other income (expense), net. This amount includes interest expense related to the accounts receivable securitization facility.
|
(b)
|
Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment.
|
(c)
|
Distributable cash flow shortages are funded from previously established reserves, cash on hand or borrowings under our secured credit facility or accounts receivable securitization facility. Distributable cash flow excess, if any, is retained to establish reserves for future distributions, reduce debt, fund capital expenditures and for other partnership purposes.
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|||||||||
As of October 31,
|
|
|
|
|
|
|
|
|
|||||||
Retail customers
|
|
678,209
|
|
|
653,719
|
|
|
24,490
|
|
|
4
|
%
|
|||
Tank exchange selling locations
|
|
53,809
|
|
|
47,985
|
|
|
5,824
|
|
|
12
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
(amounts in thousands)
|
|
|
|
|
|
|
|
|
|||||||
Three months ended October 31,
|
|
|
|
|
|
|
|
|
|||||||
Propane sales volumes (gallons):
|
|
|
|
|
|
|
|
|
|||||||
Retail - Sales to End Users
|
|
129,667
|
|
|
119,294
|
|
|
10,373
|
|
|
9
|
%
|
|||
Wholesale - Sales to Resellers
|
|
48,960
|
|
|
53,429
|
|
|
(4,469
|
)
|
|
(8
|
)%
|
|||
|
|
178,627
|
|
|
172,723
|
|
|
5,904
|
|
|
3
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Revenues -
|
|
|
|
|
|
|
|
|
|||||||
Propane and other gas liquids sales:
|
|
|
|
|
|
|
|
|
|||||||
Retail - Sales to End Users
|
|
$
|
217,764
|
|
|
$
|
183,794
|
|
|
$
|
33,970
|
|
|
18
|
%
|
Wholesale - Sales to Resellers
|
|
93,944
|
|
|
98,429
|
|
|
(4,485
|
)
|
|
(5
|
)%
|
|||
Other Gas Sales (a)
|
|
23,258
|
|
|
20,535
|
|
|
2,723
|
|
|
13
|
%
|
|||
Other (b)
|
|
17,343
|
|
|
31,137
|
|
|
(13,794
|
)
|
|
(44
|
)%
|
|||
Propane and related equipment revenues
|
|
$
|
352,309
|
|
|
$
|
333,895
|
|
|
$
|
18,414
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Gross Margin -
|
|
|
|
|
|
|
|
|
|||||||
Propane and other gas liquids sales: (c)
|
|
|
|
|
|
|
|
|
|||||||
Retail - Sales to End Users (a)
|
|
$
|
90,475
|
|
|
$
|
78,431
|
|
|
$
|
12,044
|
|
|
15
|
%
|
Wholesale - Sales to Resellers (a)
|
|
40,355
|
|
|
44,812
|
|
|
(4,457
|
)
|
|
(10
|
)%
|
|||
Other (b)
|
|
14,296
|
|
|
17,435
|
|
|
(3,139
|
)
|
|
(18
|
)%
|
|||
Propane and related equipment gross margin
|
|
$
|
145,126
|
|
|
$
|
140,678
|
|
|
$
|
4,448
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Operating, general and administrative expense (d)
|
|
$
|
110,331
|
|
|
$
|
104,265
|
|
|
$
|
6,066
|
|
|
6
|
%
|
Equipment lease expense
|
|
7,604
|
|
|
6,205
|
|
|
1,399
|
|
|
23
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Operating income
|
|
$
|
6,867
|
|
|
$
|
11,212
|
|
|
$
|
(4,345
|
)
|
|
(39
|
)%
|
Depreciation and amortization expense
|
|
18,341
|
|
|
18,088
|
|
|
253
|
|
|
1
|
%
|
|||
Loss on asset sales and disposals
|
|
1,983
|
|
|
908
|
|
|
1,075
|
|
|
118
|
%
|
|||
Severance costs
|
|
—
|
|
|
358
|
|
|
(358
|
)
|
|
(100
|
)%
|
|||
Multi-employer pension plan withdrawal settlement
|
|
1,524
|
|
|
—
|
|
|
1,524
|
|
|
NM
|
|
|||
Adjusted EBITDA
|
|
$
|
28,715
|
|
|
$
|
30,566
|
|
|
$
|
(1,851
|
)
|
|
(6
|
)%
|
•
|
significantly warmer than normal temperatures during the winter heating season;
|
•
|
significant and sustained increases in the wholesale cost of propane that we are unable to pass along to our customers;
|
•
|
a more volatile energy commodity cost environment;
|
•
|
an unexpected downturn in business operations;
|
•
|
a significant delay in the collection of accounts or notes receivable;
|
•
|
a failure to execute our debt and interest expense reduction and refinancing initiatives;
|
•
|
a change in customer retention or purchasing patterns due to economic or other factors in the United States;
|
•
|
a material downturn in the credit and/or equity markets; or
|
•
|
a large uninsured, unfavorable lawsuit judgment or settlement.
|
|
Distributable Cash Flow to equity investors
|
|
Cash reserves (deficiency) approved by our General Partner
|
|
Cash distributions paid to equity investors
|
|
DCF ratio
|
|||||||
Three months ended October 31, 2018
|
$
|
(27,384
|
)
|
|
$
|
(37,299
|
)
|
|
$
|
9,915
|
|
|
|
|
For the year ended July 31, 2018
|
62,904
|
|
|
22,934
|
|
|
39,970
|
|
|
|
||||
Less: Three months ended October 31, 2017
|
(19,343
|
)
|
|
(29,256
|
)
|
|
9,913
|
|
|
|
||||
Twelve months ended October 31, 2018
|
$
|
54,863
|
|
|
$
|
14,891
|
|
|
$
|
39,972
|
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|||||||
Twelve months ended July 31, 2018
|
62,904
|
|
|
22,934
|
|
|
39,970
|
|
|
1.57
|
|
|||
Change
|
$
|
(8,041
|
)
|
|
$
|
(8,043
|
)
|
|
$
|
2
|
|
|
(0.20
|
)
|
•
|
Maintenance capital expenditures. These capital expenditures include expenditures for betterment and replacement of property, plant and equipment rather than to generate incremental distributable cash flow. Examples of maintenance capital expenditures include a routine replacement of a worn-out asset or replacement of major vehicle components; and
|
•
|
Growth capital expenditures. These expenditures are undertaken primarily to generate incremental distributable cash flow. Examples include expenditures for purchases of both bulk and portable propane tanks and other equipment to facilitate expansion of our customer base and operating capacity.
|
|
|
Common unit ownership at
|
|
Distributions (in thousands) paid during the three months ended
|
|||
|
|
October 31, 2018
|
|
October 31, 2018
|
|||
Ferrell Companies (1)
|
|
22,529,361
|
|
|
$
|
2,253
|
|
FCI Trading Corp. (2)
|
|
195,686
|
|
|
20
|
|
|
Ferrell Propane, Inc. (3)
|
|
51,204
|
|
|
5
|
|
|
James E. Ferrell (4)
|
|
4,763,475
|
|
|
476
|
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
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Exhibit
Number
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Description
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3.1
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3.2
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3.3
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3.4
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3.5
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3.6
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3.7
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3.8
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4.1
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4.2
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4.3
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4.4
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4.5
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4.6
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4.7
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4.8
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4.9
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4.10
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4.11
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4.12
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10.1
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10.2
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10.3
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10.4
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10.5
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10.6
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10.7
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+
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10.8
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10.9
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10.10
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10.11
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10.12
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10.13
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10.14
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10.15
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+
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10.16
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#
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10.17
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#
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10.18
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#
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10.19
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#
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10.20
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#
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10.21
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#
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10.22
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#
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10.23
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#
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10.24
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#
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10.25
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10.26
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#
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10.27
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#
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10.28
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*
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31.1
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*
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31.2
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*
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31.3
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*
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31.4
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*
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32.1
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*
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32.2
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*
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32.3
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*
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32.4
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*
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101.INS
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XBRL Instance Document.
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*
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101.SCH
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XBRL Taxonomy Extension Schema Document.
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*
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document.
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*
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document.
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*
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document.
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*
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document.
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*
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Filed herewith
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#
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Management contracts or compensatory plans.
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+
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Confidential treatment has been granted with respect to certain portions of this exhibit. Omitted portions have been filed separately with the SEC.
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FERRELLGAS PARTNERS, L.P.
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By Ferrellgas, Inc. (General Partner)
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Date:
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December 6, 2018
|
By
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/s/ William E. Ruisinger
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William E. Ruisinger
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Interim Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer)
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FERRELLGAS PARTNERS FINANCE CORP.
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Date:
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December 6, 2018
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By
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/s/ William E. Ruisinger
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William E. Ruisinger
|
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Interim Chief Financial Officer and Sole Director
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FERRELLGAS, L.P.
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By Ferrellgas, Inc. (General Partner)
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Date:
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December 6, 2018
|
By
|
/s/ William E. Ruisinger
|
|
|
|
William E. Ruisinger
|
|
|
|
Interim Chief Financial Officer; Treasurer (Principal Financial and Accounting Officer)
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FERRELLGAS FINANCE CORP.
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Date:
|
December 6, 2018
|
By
|
/s/ William E. Ruisinger
|
|
|
|
William E. Ruisinger
|
|
|
|
Interim Chief Financial Officer and Sole Director
|
1 Year Ferrellgas Partners Chart |
1 Month Ferrellgas Partners Chart |
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