GlobeNewswire Inc | Dec 15, 2021 08:30AM EST

December 15, 2021

-- Financial HighlightsGross Profit for the first fiscal quarter increased by $10.8 million compared to the prior year period. Operating Income for the first fiscal quarter increased by 60% compared to the prior year period. -- Company HighlightsFerrellgas began its partnership with Operation Warm bringing warmth through winter coats to families in need across the United States.Ferrellgas welcomed its newest acquisitions to the Ferrellgas Family: Starlite, located on Long Island, New York, and Northern Cascades, in Washington state.Ferrellgas Management Development Program began its second year and continues to contribute to our performance. This leadership initiative provides an opportunity for excellence in leadership, logistics, and operations management.Ferrellgas acquired a new service mark, Fuel Life Simply.

OVERLAND PARK, Kan., Dec. 15, 2021 (GLOBE NEWSWIRE) -- Ferrellgas Partners,L.P. (OTC: FGPR) (Ferrellgas or the Company) today reported financial results for its first fiscal quarter ended October 31, 2021.

"At Ferrellgas, we believe in being easy to do business with. It starts with our people. Our proud employee owners are passionately committed to the highest standards of professionalism and safety, and truly believe in helping customers have a wonderful experience. We call that Fuel Life Simply, said James E. Ferrell, Chief Executive Officer and President.

The Company delivered $4.6 million higher operating income in the first fiscal quarter versus the same period last year. Contributing to the increase is cost management, which led to continued margin performance.

Overall gallon performance contributed to an increase in the first fiscal quarter gross profit of $10.8 million, or 6.7%, higher than the prior year period. Operating expenses as a percentage of total revenue were approximately 7.4% lower than the prior year period. Margin per gallon for the quarter increased by $0.11, or 12% higher than the prior year period. 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 meant less fleet required and fewer miles driven resulting in less fuel consumed by trucks.

The first fiscal quarter continues to demonstrate Ferrellgas strength as a technology enabled, logistics company providing a clean, desirable fuel to a tenured customer base. A favorable credit position over the prior year period continues to position Ferrellgas well with suppliers. The Companys continued emphasis on leadership development, excellence in operational expense management, and implementation of logistics fundamentals continues to increase efficiency and profitability. We are focused on continuous improvement by dedicated distribution managers, safety-minded delivery professionals and a committed customer service organization that continues to provide the foundation for the Company to build on.

For the first fiscal quarter, the Company reported net loss attributable to Ferrellgas Partners, L.P. of $8.6 million, or $5.25 per Class A Unit, compared to prior year period net loss of $46.1 million, or $9.39 per Class A Unit. Adjusted EBITDA, a non-GAAP measure, increased by $3.4 million to $37.3 million in the first fiscal quarter compared to $33.9 million in the prior year period.

Our performance is made possible through our over 2,700 delivery and customer service professionals. Their commitment to our customers and Company enable our continued high performance, Ferrell added. Our success is further strengthened by the incredibly dedicated employees of Ferrellgas, across our corporate operations and the field. Our management teams have demonstrated excellence in the areas of growth all while managing a challenging supply chain environment. I could not be more proud of our people and how they have succeeded.

Commitment by Ferrellgas employees to communities they work and live in took on a new meaning this quarter as Ferrellgas began a partnership with Operation Warm. Ferrellgas supports communities in two ways: with great service and by giving back. The partnership with Operation Warm will provide new winter coats to underserved children in Ferrellgas-serviced communities across the country.

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 Friday, December 17, 2021, James E. Ferrell, Chief Executive Officer and President, and Tamria Zertuche, Chief Operating Officer, will conduct a live teleconference on the Internet at https://edge.media-server.com/mmc/p/cvhpm3d9 to discuss the results of operations for the first fiscal quarter. The live webcast of the teleconference will begin at 8:00 a.m. Central Time (9:00 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 October31,2021 July31,2021 Current Assets: Cash and cash equivalents(including $11,500 of $ 168,851 $ 281,952 restricted cash at October 31,2021 and July 31, 2021)Accounts and notes receivable, 163,473 131,574 netInventories 131,280 88,379 Price risk management asset 129,389 78,001 Prepaid expenses and other 59,600 39,092 current assetsTotal Current Assets 652,593 618,998 Property, plant and equipment, 585,993 582,118 netGoodwill, net 251,065 246,946 Intangible assets (net ofaccumulated amortization of$434,166 and $432,032 at 103,277 100,743 October 31, 2021 and July 31,2021, respectively)Operating lease right-of-use 87,379 87,611 assetOther assets, net 96,318 93,228 Total Assets $ 1,776,625 $ 1,729,644 LIABILITIES, MEZZANINE AND EQUITY Current Liabilities: Accounts payable $ 80,233 $ 47,913 Broker margin deposit liability 126,325 79,178 Current portion of long-term 2,079 1,670 debtCurrent operating lease 27,207 25,363 liabilitiesOther current liabilities 154,309 166,822 Total Current Liabilities 390,153 320,946 Long-term debt 1,446,895 1,444,890 Operating lease liabilities 72,117 74,349 Other liabilities 63,822 61,189 Contingencies and commitments Mezzanine Equity: Senior preferred units, net ofissue discount and otheroffering costs (700,000 units 651,349 651,349 outstanding at October 31, 2021and July 31, 2021) Equity: Limited partner Unitholders Class A (4,857,605 Unitsoutstanding at October 31, 2021 (1,239,276 ) (1,214,813 )and July 31, 2021)Class B (1,300,000 Unitsoutstanding at October 31, 2021 333,014 383,012 and July 31, 2021)General partner Unitholder(49,496 Units outstanding at (72,426 ) (72,178 )October 31, 2021 and July 31,2021)Accumulated other comprehensive 138,679 88,866 incomeTotal Ferrellgas Partners, L.P. (840,009 ) (815,113 )EquityNoncontrolling interest (7,702 ) (7,966 )Total Equity (847,711 ) (823,079 )Total Liabilities, Mezzanine $ 1,776,625 $ 1,729,644 and Equity

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

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

Three months ended Twelve months ended October 31 October 31 2021 2020 2021 2020 Revenues: Propane andother gas $ 372,704 $ 281,049 $ 1,760,507 $ 1,423,455 liquids salesOther 21,802 19,845 87,415 82,051 Total revenues 394,506 300,894 1,847,922 1,505,506 Cost of sales: Propane andother gas 220,538 137,627 964,847 676,652 liquids salesOther 3,610 3,667 12,671 12,989 Gross profit 170,358 159,600 870,404 815,865 Operatingexpense -personnel, 117,112 109,027 473,902 487,539 vehicle, plant& otherOperatingexpense - 5,690 6,830 25,922 31,459 equipment leaseexpenseDepreciationand 20,295 21,390 84,286 82,652 amortizationexpenseGeneral andadministrative 12,575 13,080 59,560 49,137 expenseNon-cashemployee stockownership plan 909 708 3,416 2,784 compensationchargeLoss on assetsales and 1,410 813 2,428 6,502 disposals Operating 12,367 7,752 220,890 155,792 income Interest (25,395 ) (54,226 ) (144,785 ) (201,491 )expenseLoss onextinguishment ? ? (104,834 ) (37,399 )of debtOther income 4,264 108 8,426 (220 )(expense), netReorganization ? ? (10,467 ) ? items, net Loss beforeincome tax (8,764 ) (46,366 ) (30,770 ) (83,318 )expense Income tax 96 87 750 420 expense Net loss (8,860 ) (46,453 ) (31,520 ) (83,738 ) Net lossattributable to (254 ) (391 ) (565 ) (535 )noncontrollinginterest (a) Net lossattributable to (8,606 ) (46,062 ) (30,955 ) (83,203 )FerrellgasPartners, L.P. Distribution topreferred 17,005 ? 41,029 ? unitholders Less: Generalpartner's (86 ) (461 ) (309 ) (832 )interest in netloss Class AUnitholders' $ (25,525 ) $ (45,601 ) $ (71,675 ) $ (82,371 )interest in netloss Loss Per Class A UnitBasic anddiluted net $ (5.25 ) $ (9.39 ) $ (14.76 ) $ (16.96 )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 October 31 October 31 2021 2020 2021 2020 Net lossattributable to $ (8,606 ) $ (46,062 ) $ (30,955 ) $ (83,203 )FerrellgasPartners, L.P.Income tax 96 87 750 420 expenseInterest expense 25,395 54,226 144,785 201,491 Depreciation andamortization 20,295 21,390 84,286 82,652 expenseEBITDA 37,180 29,641 198,866 201,360 Non-cash employeestock ownership 909 708 3,416 2,784 plan compensationchargeLoss on assetsales and 1,410 813 2,428 6,502 disposalLoss onextinguishment of ? ? 104,834 37,399 debtOther (income) (4,264 ) (108 ) (8,426 ) 220 expense, netReorganizationexpense - ? ? 10,467 ? professional feesSeverance expenseincludes $60 and$449 in operatingexpense for thethree and twelvemonths endedOctober 31, 2021,respectively.Also includes 216 684 1,293 1,424 $156 and $844 ingeneral andadministrativeexpense for thethree and twelvemonths endedOctober 31, 2021,respectively.Legal fees andsettlementsrelated to 2,131 2,508 9,806 6,871 non-corebusinessesProvision fordoubtful accountsrelated to ? ? (500 ) 17,325 non-corebusinessesLease accountingstandard ? ? ? 161 adjustment andotherNet lossattributable to (254 ) (391 ) (565 ) (535 )noncontrollinginterest (a)Adjusted EBITDA 37,328 33,855 321,619 273,511 (b)Net cash interest (19,119 ) (51,716 ) (127,556 ) (191,379 )expense (c)Maintenancecapital (3,579 ) (5,177 ) (24,570 ) (21,950 )expenditures (d)Cash paid for ? (35 ) (671 ) (324 )income taxesProceeds fromcertain asset 641 700 4,529 3,862 salesDistributablecash flowattributable to 15,271 (22,373 ) 173,351 63,720 equity investors(e)Less:Distributionsaccrued or paid 17,345 ? 41,369 ? to preferredunitholdersDistributablecash flowattributable togeneral partner (340 ) 575 (1,395 ) (1,289 )andnon-controllinginterestDistributablecash flowattributable to (2,414 ) (21,798 ) 130,587 62,431 Class A and BUnitholders (f)Less:Distributions ? ? ? ? paid to Class Aand B UnitholdersDistributablecash flow excess $ (2,414 ) $ (21,798 ) $ 130,587 $ 62,431 (g) Propane gallons salesRetail - Sales to 115,825 118,018 629,864 626,134 End UsersWholesale - Sales 44,055 49,590 222,490 235,080 to ResellersTotal propane 159,880 167,608 852,354 861,214 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.Adjusted EBITDA, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of Adjusted EBITDA that will not occur on a continuing basis may have associated cash payments. Adjusted EBITDA 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, and may from time to time include the purchase of assets that are typically leased.(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 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 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.