GlobeNewswire Inc | Jun 14, 2021 04:30PM EDT

June 14, 2021

-- Financial HighlightsGross Profit increased by $30.2 million, or almost 13%, compared to the prior year period as a result of a $.06 increase in gross margin per gallon and 13.3 million higher gallon volumes.Operating Income for the quarter increased by $25.4 million.Tank Exchange selling locations now total 62,400, up over 4,000 from prior year, contributing to a 22% growth in volumes.Ferrellgas Partners, L.P. and Ferrellgas Partners Finance Corp. successfully emerge from bankruptcy and completed the financial restructuring plan. -- Company HighlightsThe Ferrellgas Management Development Program, a diverse leadership, management and mentorship program, proudly placed 11 graduates in operations management positions across the country.Ferrellgas launched Ferrell University, a professional development program for current Ferrellgas employees in all roles throughout the company.Ferrellgas partnered with Operation BBQ to provide relief to storm impacted areas in southern United States.Ferrellgas joins newly formed The World LPG Association Youth Council Steering Committee.

OVERLAND PARK, Kan., June 14, 2021 (GLOBE NEWSWIRE) -- Ferrellgas Partners,L.P. (OTC: FGPR) (Ferrellgas or the Company) today reported financial results for its third quarter ended April30, 2021.

"At Ferrellgas, we continue to focus on the disciplined execution of our operating strategy and delivering a memorable customer experience. By investing in our employees and technology we continue to place customer service at the center of our growth strategy, said James E. Ferrell, Chief Executive Officer and President. We are excited for the recent graduates of our unique Management Development Program, who are now joining our high-performing field operations across the company. These new leaders, like our tenured managers, are committed to creating value for our customers and the communities we serve.

The Companys strong performance continues and strengthened during the third quarter of fiscal 2021, leading to a $25.4 million increase in operating income. The Company sold 260.2 million propane gallons for the quarter, compared to 246.8 million in the same quarter last year. Sales volumes grew by 13.9 million gallons. Margin per gallon for the quarter was $.064, or 7% higher than the prior year, attributable to strategic product positioning, sound supply chain logistics, and a growing customer base. The National Accounts channel performed 10.8% higher in volume than the prior year quarter. Also contributing to a strong gallon performance are right-timed deliveries that shifted gallons into this quarter, additional marketing on key consumer platforms, improved use of marketing analytics, and weather that was 8% colder than the prior-year quarter. Blue Rhino tank exchange sales continued to grow due to further market share penetration, national marketing strategies, and continued growth in backyard and outdoor appliance usage.

Overall gallon performance contributed to an increase in gross margin of $30.2 million, or 13% higher than prior year. Highlighting the Companys delivery efficiency strategies, in response to increased volumes, operating expenses increased a nominal 2.5% while decreasing 2.7% per unit. The Company demonstrated continued operational excellence on its strategic initiative of delivering gallons more efficiently, which led to a significant containment of operating expenses during the quarter. Decreased labor expense, less miles driven to deliver more volume, and better utilization of our fleet resulted in less fuel consumed and fewer repairs and maintenance.

The third quarter continues to demonstrate Ferrellgas strength as a high-performing, customer-centric, technology enabled, logistics company. As the Company continues to transform, an emphasis on leadership development, excellence in operational expense management, and implementation of logistics fundamentals continue to increase efficiency and profitability. Strong execution by high-performing managers and an agile workforce of essential workers is driving morale and high performance throughout the Company, both in the field and in corporate locations.

For this quarter, the Company reported a net loss attributable to Ferrellgas Partners, L.P. of $66.8 million, or $15.25 per common unit, compared to the prior year quarter of a net loss of $15.4 million, or $3.14 per common unit. The current quarter loss is primarily attributable to the $109.9 million loss on extinguishment of debt incurred through our successful restructuring transactions, as compared to $37.4 million in the prior year quarter. Adjusted EBITDA, a non-GAAP measure, increased by $26.9 million, or 29.0%, to $119.2 million in the current quarter compared to $92.4 million in the prior year quarter.

Our performance is made possible through our focus on customer service and being a trusted partner for warmth, support of agriculture, autogas, and other critical needs, Ferrell added. Performance is further strengthen by the incredibly dedicated employees of Ferrellgas and their unwavering commitment to our customers, partners, and communities. Our people continue to generate strong results, while spending less on controllable costs. We are also investing in our customers, employees, and cutting edge technology. I could not be more proud of our people and the continued transformation of the company.

As previously announced, on January 11, 2021, Ferrellgas Partners and Ferrellgas Partners Finance Corp. commenced the Chapter 11 Cases by filing voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the Bankruptcy Court. On March 5, 2021, the Bankruptcy Court entered an order confirming the restructuring plan. On March 30, 2021, Ferrellgas Partners and Ferrellgas Partners Finance Corp. emerged from bankruptcy. The Company also completed its financial restructuring greatly improving the health of its balance sheet and paving the way for future prosperity.

About FerrellgasFerrellgas Partners,L.P., through its operating partnership, Ferrellgas,L.P., and subsidiaries, serves propane customers in all 50 states, the District of Columbia, and Puerto Rico. Ferrellgas employees indirectly own 1.1 million common units of the partnership, through an employee stock ownership plan. Ferrellgas Partners,L.P. filed a Form10-K with the Securities and Exchange Commission on October15, 2020. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at www.ferrellgas.com.

Forward Looking StatementsStatements 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 include those discussed in the Form10-K of Ferrellgas Partners,L.P., Ferrellgas Partners Finance Corp., Ferrellgas,L.P., and Ferrellgas Finance Corp. for the fiscalyear ended July31, 2020, and in other documents filed from time to time by these entities with the Securities and Exchange Commission.

Contacts

Investor Relations InvestorRelations@ferrellgas.com

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except unit data)

(unaudited)

ASSETS April 30, 2021 July 31, 2020 Current Assets: Cash and cash equivalents (including$11,500 and $95,759 of restricted cash at $ 222,849 $ 333,761 April 30, 2021 and July 31, 2020,respectively) Accounts and notes receivable, net(including $103,703 of accounts receivable 170,516 101,438 pledged as collateral at July 31, 2020)Inventories 69,742 72,664 Prepaid expenses and other current assets 73,984 35,944 Total Current Assets 537,091 543,807 Property, plant and equipment, net 582,838 591,042 Goodwill, net 246,946 247,195 Intangible assets, net 97,560 104,049 Operating lease right-of-use asset 93,341 107,349 Other assets, net 86,914 74,748 Total Assets $ 1,644,690 $ 1,668,190 LIABILITIES, MEZZANINE AND EQUITY Current Liabilities: Accounts payable $ 54,320 $ 33,944 Current portion of long-term debt 1,565 859,095 Current operating lease liabilities 26,669 29,345 Other current liabilities 178,514 167,466 Total Current Liabilities 261,068 1,089,850 Long-term debt 1,443,095 1,646,396 Operating lease liabilities 78,498 89,022 Other liabilities 51,427 51,190 Contingencies and commitments Mezzanine Equity: Senior preferred units (700,000 units 651,854 ? outstanding at April 30, 2021) Equity: Common unitholders Class A (4,857,605 units outstanding at (1,181,241 ) (1,126,452 )April 30, 2021 and July 31, 2020)Class B (1,300,000 units outstanding at 388,147 ? April 30, 2021)General partner unitholder (49,496 unitsoutstanding at April 30, 2021 and July 31, (71,840 ) (71,287 )2020)Accumulated other comprehensive income 31,845 (2,303 )(loss)Total Ferrellgas Partners, L.P. Equity (833,089 ) (1,200,042 )Noncontrolling interest (8,163 ) (8,226 )Total Equity (841,252 ) (1,208,268 )Total Liabilities, Mezzanine and Equity $ 1,644,690 $ 1,668,190

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit data)(unaudited)

Three months ended Nine months ended Twelve months ended April 30 April 30 April 30 2021 2020 2021 2020 2021 2020Revenues: Propane andother gas $ 542,036 $ 391,745 $ 1,351,519 $ 1,150,377 $ 1,616,933 $ 1,414,601 liquids salesOther 22,694 20,385 67,665 65,800 83,900 80,657 Total revenues 564,730 412,130 1,419,184 1,216,177 1,700,833 1,495,258 Cost of sales: Propane andother gas 298,386 176,265 706,790 548,136 831,707 684,596 liquids salesOther 2,985 2,740 10,156 9,774 13,385 12,391 Gross profit 263,359 233,125 702,238 658,267 855,741 798,271 Operatingexpense -personnel, 124,624 121,558 348,898 364,334 477,619 481,661 vehicle, plant& otherDepreciationand 21,281 20,366 63,920 59,380 85,021 79,012 amortizationexpenseGeneral andadministrative 15,205 12,560 48,760 36,447 58,065 54,404 expenseOperatingexpense - 6,770 8,075 20,462 24,724 28,755 33,200 equipmentlease expenseNon-cashemployee stockownership plan 811 757 2,281 2,182 2,970 3,187 compensationchargeLoss on assetsales and 1,345 1,859 2,238 6,242 3,920 8,807 disposals Operating 93,323 67,950 215,679 164,958 199,391 138,000 income Interest (42,189 ) (45,703 ) (149,010 ) (138,948 ) (203,024 ) (183,636 )expenseLoss onextinguishment (109,922 ) (37,399 ) (109,922 ) (37,399 ) (109,922 ) (37,399 )of debtOther income 553 (158 ) 4,169 (214 ) 3,923 (201 )(expense), netReorganization (9,007 ) ? (10,207 ) ? (10,207 ) ? items, net Loss beforeincome tax (67,242 ) (15,310 ) (49,291 ) (11,603 ) (119,839 ) (83,236 )expense Income tax 193 161 606 794 663 833 expense Net loss (67,435 ) (15,471 ) (49,897 ) (12,397 ) (120,502 ) (84,069 ) Net earnings(loss)attributable (641 ) (78 ) (308 ) 133 (944 ) (502 )tononcontrollinginterest (a) Net lossattributable (66,794 ) (15,393 ) (49,589 ) (12,530 ) (119,558 ) (83,567 )to FerrellgasPartners, L.P. Distributionto preferred 8,011 ? 8,011 ? 8,011 ? unitholders Less: Generalpartner's (748 ) (154 ) (576 ) (125 ) (1,276 ) (835 )interest innet loss Class Aunitholders' $ (74,057 ) $ (15,239 ) $ (57,024 ) $ (12,405 ) $ (126,293 ) $ (82,732 )interest innet loss Loss Per Class A UnitBasic anddiluted net $ (15 ) $ (3 ) $ (12 ) $ (3 ) $ (26 ) $ (17 )loss percommon unit Weightedaverage commonunits 4,858 4,858 4,858 4,858 4,858 4,858 outstanding -basic

Supplemental Data and Reconciliation of Non-GAAP Items:

Three months ended Nine months ended Twelve months ended April 30 April 30 April 30 2021 2020 2021 2020 2021 2020Net lossattributable to $ (66,794 ) $ (15,393 ) $ (49,589 ) $ (12,530 ) $ (119,558 ) $ (83,567 )FerrellgasPartners, L.P.Income tax 193 161 606 794 663 833 expenseInterest 42,189 45,703 149,010 138,948 203,024 183,636 expenseDepreciationand 21,281 20,366 63,920 59,380 85,021 79,012 amortizationexpenseEBITDA (3,131 ) 50,837 163,947 186,592 169,150 179,914 Non-cashemployee stockownership plan 811 757 2,281 2,182 2,970 3,187 compensationchargeLoss on assetsales and 1,345 1,859 2,238 6,242 3,920 8,807 disposalLoss onextinguishment 109,922 37,399 109,922 37,399 109,922 37,399 of debtOther income (553 ) 158 (4,169 ) 214 (3,923 ) 201 (expense), netReorganization 9,007 ? 10,207 ? 10,207 ? items, netSeveranceexpenseincludes $0,$927 and $1,667in operatingexpense for thethree, nine andtwelve monthsended April 30,2021. Also ? ? 1,761 ? 2,501 ? includes $0,$834 and $834in general andadministrativeexpense for thethree, nine andtwelve monthsended April 30,2021.Legal fees andsettlementsrelated to 2,436 1,325 8,572 5,887 9,993 13,608 non-corebusinessesProvision fordoubtfulaccounts ? ? (500 ) 16,825 ? related tonon-corebusinessesLeaseaccountingstandard ? 80 ? 134 27 134 adjustment andotherNet earnings(loss)attributable to (641 ) (78 ) (308 ) 133 (944 ) (502 )noncontrollinginterest (b)Adjusted EBITDA 119,196 92,337 293,951 238,783 320,648 242,748 (b)Net cashinterest (37,757 ) (43,442 ) (137,716 ) (129,341 ) (190,621 ) (170,806 )expense (c)Maintenancecapital (4,058 ) (6,803 ) (14,517 ) (18,700 ) (19,057 ) (20,436 )expenditures(d)Cash paid for (133 ) (49 ) (438 ) (50 ) (677 ) (170 )income taxesProceeds fromcertain asset 1,270 851 3,707 2,510 5,194 4,343 salesDistributablecash flowattributable to 78,518 42,894 144,987 93,202 115,487 55,679 equityinvestors (e)Less:Distributionsaccrued or paid 8,011 ? 8,011 ? 8,011 ? to preferredunitholdersDistributablecash flowattributable togeneral partner 1,571 (858 ) 2,900 (1,864 ) 6,038 1,113 andnon-controllinginterestDistributablecash flowattributable to 68,936 42,036 134,076 91,338 109,449 54,566 Class A and Bunitholders (f)Less:Distributionsaccrued or paid ? ? ? ? ? ? to Class A andB unitholdersDistributablecash flow $ 68,936 $ 42,036 $ 134,076 $ 91,338 $ 109,449 $ 54,566 excess Propane gallons salesRetail - Sales 200,028 186,175 536,124 552,340 621,801 651,454 to End UsersWholesale -Sales to 60,128 60,660 176,970 179,695 232,804 233,005 ResellersTotal propane 260,156 246,835 713,094 732,035 854,605 884,459 gallons sales

(a) Amounts allocated to the general partner for its 1.0101% interest in the operating partnership, Ferrellgas, L.P.(b) Adjusted EBITDA is calculated as net earnings (loss) attributable to Ferrellgas Partners, L.P., less the sum of the following: income tax expense, interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, loss on asset sales and disposals, loss on extinguishment of debt, other income (expense), net, reorganization items, net, severance expense, legal fees and settlements related to non-core businesses, provision for doubtful accounts related to non-core businesses, lease accounting standard adjustment and other and net earnings (loss) attributable to noncontrolling interest. Management believes the presentation of this measure is relevant and useful, because it allows investors to view the partnership's performance in a manner similar to the method management uses, adjusted for items management believes makes it easier to compare its results with other companies that have different financing and capital structures.This method of calculating Adjusted EBITDA may not be consistent with that of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP.(c) 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 terminated accounts receivable securitization facility.(d) Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment.(e) Distributable cash flow attributable to equity investors is calculated as Adjusted EBITDA minus net cash interest expense, maintenance capital expenditures and cash paid for income taxes plus proceeds from certain asset sales. Management considers distributable cash flow attributable to equity investors a meaningful measure of the partnerships ability to declare and pay quarterly distributions to equity investors, including holders of the operating partnerships Preferred Units. Distributable cash flow attributable to equity investors, as management defines it, may not be comparable to distributable cash flow attributable to equity investors or similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow attributable to equity investors that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to equity investors may not be consistent with that of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP.(f) Distributable cash flow attributable to Class A and B unitholders is calculated as Distributable cash flow attributable to equity investors minus distributions accrued or paid on the Preferred Units and distributable cash flow attributable to general partner and noncontrolling interest. Management considers distributable cash flow attributable to Class A and B unitholders a meaningful measure of the partnerships ability to declare and pay quarterly distributions to Class A and B unitholders. Distributable cash flow attributable to Class A and B unitholders, as management defines it, may not be comparable to distributable cash flow attributable to Class A and B unitholders or similarly titled measurements used by other companies. Items added to our calculation of distributable cash flow attributable to Class A and B unitholders that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to Class A and B unitholders should be viewed in conjunction with measurements that are computed in accordance with GAAP.