GlobeNewswire Inc | Oct 15, 2021 08:30AM EDT

October 15, 2021

-- Financial HighlightsGross Profit for the year increased by $47.9 million as compared to the prior year.Gross Profit increased by $3.9 million in the fourth fiscal quarter compared to the prior year fourth fiscal quarter. Approximately 5.5 million more gallons were sold in the fourth fiscal quarter than in the prior year fourth fiscal quarter. Operating Income for the year increased by $67.6 million or 45% as compared to prior year.Operating Income for the fourth fiscal quarter increased by 104%. -- Company HighlightsFerrellgas Corporate Internship Experience, a program offered to current undergraduates in the areas of Supply Chain, Finance, Marketing, and Technology, successfully fostered 5 interns through the 12-week program.The Ferrellgas Management Development Program, a diverse leadership, management and mentorship program, welcomed 22 new operations management candidates to its program from across the country.Home Delivery for Tank Exchange is now found in 12 markets across the United States.Ferrellgas continues its partnership with Operation BBQ Relief to provide relief to disaster areas in the United States.Ferrellgas welcomes its newest acquisition, Proflame, to the Ferrellgas Family.

OVERLAND PARK, Kan., Oct. 15, 2021 (GLOBE NEWSWIRE) -- Ferrellgas Partners,L.P. (OTC: FGPR) (Ferrellgas or the Company) today reported financial results for its fiscal year (fiscal 2021) and fourth fiscal quarter ended July31, 2021.

"At Ferrellgas, our employees are at the center of our growth strategy. We invest in our employees and in turn they have delivered a strong financial performance. Technology, which allows us to be easy to do business with, is the perfect complement to our dedicated, customer service focused employees, said James E. Ferrell, Chief Executive Officer and President. We are very proud of our people and of the consistent results they produced all throughout the year.

The Companys strong performance continued during the fourth quarter of fiscal 2021, leading to a $67.6 million increase in operating income for the fiscal year. Also contributing to a strong performance are marketing initiatives, consumer centric buying programs, and improved use of consumer analytics. Additionally, the reseller segment grew 12% in fiscal 2021. Performance was also aided by growth of Blue Rhino tank exchange sales, which grew due to further market share penetration and consistent growth in backyard and outdoor appliance usage.

Overall gallon performance contributed to an increase in gross margin of $47.9 million, or 6% higher than prior year. Highlighting the Companys delivery efficiency strategies, operating expenses decreased a nominal 5.5% while decreasing by 4.1% per unit. The Company demonstrated continued operational excellence on its strategic initiative of delivering gallons more efficiently, which led to significant containment of operating expenses during the quarter. These tighter controls by management demonstrated less fleet needed to deliver those gallons, fewer miles driven to deliver more gallons, and less fuel consumed by trucks. Also contributing to expense management was a 36% increase in gallons per stop, as measured in fiscal 2021.

The fourth fiscal quarter continues to demonstrate Ferrellgas strength as a technology enabled, logistics company providing a clean fuel to a tenured customer base. Following the debt restructuring, the Companys performance was aided by a favorable credit position with suppliers. A sustained emphasis on leadership development, excellence in operational expense management, and implementation of logistics fundamentals continue to increase efficiency and profitability. Strong execution by safety-focused and dedicated delivery professionals, recognized as essential workers, is driving high performance throughout the Company.

For the fourth fiscal quarter, the Company reported net loss attributable to Ferrellgas Partners, L.P. of $18.8 million, or $7.13 per Class A Unit, compared to prior year period net loss of $70.0 million, or $14.26 per Class A Unit. Adjusted EBITDA, a non-GAAP measure, decreased by $2.6 million to $24.1 million in the fourth fiscal quarter compared to $26.7 million in the prior year quarter. However, Adjusted EBITDA increased by $52.6 million to $318.1 million in fiscal 2021 compared to $265.5 million in the prior year.

Our performance is made possible through our focus on performance and dependability, Ferrell added. Performance is further strengthened by the incredibly dedicated employees of Ferrellgas, in particular the over 2,300 delivery professionals and their unwavering commitment to our customers and company. Our valuable employees, across our corporate operations and the field, continue to generate strong results while managing the balance of growth and expense management. I could not be more proud of our people and what they accomplished this year.

As previously announced, Ferrellgas Partners, L.P.andFerrellgas Partners Finance Corp., entities with no operations or employees,emerged from bankruptcy onMarch 30, 2021and we completed our financial restructuring, greatly improving the health of our balance sheet and paving the way for future prosperity.Also as previously announced,on October 8, 2021, we paid a $49.9 million distributionto holders of record of the Class B Units as of September 24, 2021 an activity made possible by the continued strong performance of the Company.

On Wednesday October 22, 2021, James E. Ferrell, Chief Executive Officer and President, Tamria Zertuche, Chief Operating Officer, and Dhiraj Cherian, Chief Financial Officer and Treasurer, will conduct a live teleconference on the Internet at https://edge.media-server.com/mmc/p/mqbzp2wt to discuss the results of operations for the fiscal year ended July 31, 2021. The live webcast of the teleconference will begin at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Questions may be submitted via the investor relations e-mail box at InvestorRelations@ferrellgas.com.

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 Class A 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, 2021. 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, 2021, 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 July 31, 2021 July 31, 2020 Current Assets: Cash and cash equivalents (including$11,500 and $95,759 of restricted cash at $ 281,952 $ 333,761 July 31, 2021 and July 31, 2020,respectively)Accounts and notes receivable, net(including $103,703 of accounts receivable 131,574 101,438 pledged as collateral at July 31, 2020)Inventories 88,379 72,664 Price risk management asset 78,001 2,846 Prepaid expenses and other current assets 39,092 33,098 Total Current Assets 618,998 543,807 Property, plant and equipment, net 582,118 591,042 Goodwill, net 246,946 247,195 Intangible assets (net of accumulatedamortization of $432,032 and $423,290 at 100,743 104,049 July 31, 2021 and July 31, 2020,respectively)Operating lease right-of-use asset 87,611 107,349 Other assets, net 93,228 74,748 Total Assets $ 1,729,644 $ 1,668,190 LIABILITIES, MEZZANINE AND EQUITY Current Liabilities: Accounts payable $ 47,913 $ 33,944 Current portion of long-term debt 1,670 859,095 Current operating lease liabilities 25,363 29,345 Other current liabilities 246,000 167,466 Total Current Liabilities 320,946 1,089,850 Long-term debt 1,444,890 1,646,396 Operating lease liabilities 74,349 89,022 Other liabilities 61,189 51,190 Contingencies and commitments Mezzanine Equity: Senior preferred units, net of issuediscount and other offering costs (700,000 651,349 ? units outstanding at July 31, 2021) Equity: Limited partner Unitholders Class A (4,857,605 Units outstanding at (1,214,813 ) (1,126,452 )July 31, 2021 and July 31, 2020)Class B (1,300,000 Units outstanding at 383,012 ? July 31, 2021)General partner Unitholder (49,496 Unitsoutstanding at July 31, 2021 and July 31, (72,178 ) (71,287 )2020)Accumulated other comprehensive income 88,866 (2,303 )(loss)Total Ferrellgas Partners, L.P. Equity (815,113 ) (1,200,042 )Noncontrolling interest (7,966 ) (8,226 )Total Equity (823,079 ) (1,208,268 )Total Liabilities, Mezzanine and Equity $ 1,729,644 $ 1,668,190

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

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

Three months ended Twelve months ended July 31 July 31 2021 2020 2021 2020Revenues: Propane andother gas $ 317,333 $ 265,414 $ 1,668,852 $ 1,415,791 liquids salesOther 17,793 16,235 85,458 82,035 Total revenues 335,126 281,649 1,754,310 1,497,826 Cost of sales: Propane andother gas 175,146 124,917 881,936 673,053 liquids salesOther 2,572 3,229 12,728 13,003 Gross profit 157,408 153,503 859,646 811,770 Operatingexpense -personnel, 116,918 128,721 465,816 493,055 vehicle, plant& otherOperatingexpense - 6,600 8,293 27,062 33,017 equipment leaseexpenseDepreciationand 21,462 21,101 85,382 80,481 amortizationexpenseGeneral andadministrative 11,305 9,305 60,065 45,752 expenseNon-cashemployee stockownership plan 934 689 3,215 2,871 compensationchargeLoss on assetsales and (407 ) 1,682 1,831 7,924 disposals Operating 596 (16,288 ) 216,275 148,670 income Interest (24,606 ) (54,014 ) (173,616 ) (192,962 )expenseGain (loss) onextinguishment 5,088 ? (104,834 ) (37,399 )of debtOther income 77 (246 ) 4,246 (460 )(expense), netReorganization (236 ) ? (10,443 ) ? items, net Loss beforeincome tax (19,081 ) (70,548 ) (68,372 ) (82,151 )expense Income tax 135 57 741 851 expense Net loss (19,216 ) (70,605 ) (69,113 ) (83,002 ) Net lossattributable to (394 ) (636 ) (702 ) (503 )noncontrollinginterest (a) Net lossattributable to (18,822 ) (69,969 ) (68,411 ) (82,499 )FerrellgasPartners, L.P. Distribution topreferred 16,013 ? 24,024 ? unitholders Less: Generalpartner's (108 ) (700 ) (684 ) (825 )interest in netloss Class AUnitholders' $ (34,727 ) $ (69,269 ) $ (91,751 ) $ (81,674 )interest in netloss Loss Per Class A UnitBasic anddiluted net $ (7.15 ) $ (14.26 ) $ (18.89 ) $ (16.81 )loss per ClassA Unit Weightedaverage Class AUnits 4,858 4,858 4,858 4,858 outstanding -basic

Supplemental Data and Reconciliation of Non-GAAP Items:

Three months ended Twelve months ended July 31 July 31 2021 2020 2021 2020Net lossattributable to $ (18,822 ) $ (69,969 ) $ (68,411 ) $ (82,499 )FerrellgasPartners, L.P.Income tax 135 57 741 851 expenseInterest expense 24,606 54,014 173,616 192,962 Depreciation andamortization 21,462 21,101 85,382 80,481 expenseEBITDA 27,381 5,203 191,328 191,795 Non-cash employeestock ownership 934 689 3,215 2,871 plan compensationchargeLoss on assetsales and (407 ) 1,682 1,831 7,924 disposalLoss onextinguishment of (5,088 ) ? 104,834 37,399 debtOther (income) (77 ) 246 (4,246 ) 460 expense, netReorganizationexpense - 236 ? 10,443 ? professional feesSeverance expenseincludes $0 and$927 in operatingexpense for thethree and twelvemonths ended July31, 2021. Alsoincludes $0 and ? 740 1,761 740 $834 in generalandadministrativeexpense for thethree and twelvemonths ended July31, 2021.Legal fees andsettlementsrelated to 1,557 1,421 10,129 7,308 non-corebusinessesProvision fordoubtful accountsrelated to ? 17,325 (500 ) 17,325 non-corebusinessesLease accountingstandard ? 27 ? 161 adjustment andotherNet lossattributable to (394 ) (636 ) (702 ) (503 )noncontrollinginterest (a)Adjusted EBITDA 24,142 26,697 318,093 265,480 (b)Net cash interest (22,437 ) (52,905 ) (160,153 ) (182,246 )expense (c)Maintenancecapital (11,651 ) (4,540 ) (26,168 ) (23,240 )expenditures (d)Cash paid for (268 ) (239 ) (706 ) (289 )income taxesProceeds fromcertain asset 881 1,487 4,588 3,997 salesDistributablecash flowattributable to (9,333 ) (29,500 ) 135,654 63,702 equity investors(e)Less:Distributionsaccrued or paid 16,013 ? 24,024 ? to preferredunitholdersDistributablecash flowattributable togeneral partner (2,420 ) (590 ) (480 ) (1,274 )andnon-controllinginterestDistributablecash flowattributable to (22,926 ) (28,910 ) 111,150 62,428 Class A and BUnitholders (f)Less:Distributions ? ? ? ? paid to Class Aand B UnitholdersDistributablecash flow excess $ (22,926 ) $ (28,910 ) $ 111,150 $ 62,428 (g) Propane gallons salesRetail - Sales to 95,933 85,677 632,057 638,017 End UsersWholesale - Sales 51,055 55,834 228,025 235,529 to ResellersTotal propane 146,988 141,511 860,082 873,546 gallons sales

(a)Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, Ferrellgas, L.P.(b)Adjusted EBITDA is calculated as net loss attributable to Ferrellgas Partners, L.P., plus 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 expense professional fees, 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 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 make 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 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.(g)Distributable cash flow excess is calculated as Distributable cash flow attributable to Class A and B Unitholders minus Distributions paid to Class A and B Unitholders. Distributable cash flow excess, if any, is retained to establish reserves, to reduce debt, to fund capital expenditures and for other partnership purposes, and any shortage is funded from previously established reserves, cash on hand or borrowings under our Credit Facility or, previously, under our terminated accounts receivable securitization facility. Management considers Distributable cash flow excess a meaningful measure of the partnerships ability to effectuate those purposes. Distributable cash flow excess, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow excess that will not occur on a continuing basis may have associated cash payments. Distributable cash flow excess should be viewed in conjunction with measurements that are computed in accordance with GAAP.