Fri, Sep 27, 12:45 PM (85 days ago)
Ferrellgas Partners, L.P. reported a decrease in total revenues to $1,837,116 in FY 2024, down from $2,026,465 in FY 2023, attributed primarily to a 5% decline in propane sales volumes and warmer weather conditions. Net income fell to $110,216 from $136,881, influenced by a $24.1 million drop in gross margin and rising operating expenses, particularly in personnel and vehicle costs. Adjusted EBITDA also decreased by 12% to $317,388. The company’s liquidity as of July 31, 2024, was $231 million, with $113.5 million in cash and $117.5 million available under its credit facility. However, the company faces substantial debt obligations, totaling $1.48 billion, with significant concerns about its ability to continue as a going concern due to upcoming maturity dates and reliance on cash distributions from its operating partnership. Risks include reliance on weather patterns affecting propane demand, competition, and regulatory changes. The company’s strategic focus includes disciplined acquisitions and leveraging its national presence for operational efficiencies. No distributions were made to Class A unitholders in FY 2024, and the company continues to prioritize servicing its debt and preferred unit obligations.