LIBERTY, Mo., June 06, 2025 (GLOBE NEWSWIRE) -- Ferrellgas Partners, L.P. (OTC: FGPR) ("Ferrellgas" or the "Company") today reported financial results for its 2025 third fiscal quarter ended April 30, 2025.

Tamria Zertuche, President and Chief Executive Officer, commented, "We are very pleased to have delivered strong third quarter sales growth of 9%, which translated into solid gross profit, and net earnings growth of 12%. This growth was driven by our strong field performance in inclement weather and residential market growth."

Ms. Zertuche continued, "The Company has been named once again by Newsweek as one of the Most Trustworthy Companies in America. The dedication and commitment our employee-owners make to our customers is a key driver in our growth. We are grateful for the outstanding efforts of our employees who continue to deliver operational excellence through efficiencies, and solid results. Our drivers braced against the elements to safely meet the needs of our customers. Safe driving by our experienced and highly tenured employees, aided by proven planning practices helped achieve opportunities for growth in Retail and solid Blue Rhino performance. I could not be prouder of the way our teams performed. We are well positioned to capitalize on the upcoming peak grilling season, and our prudent expansion efforts are paying off with the addition of several new national accounts with multi-year contracts."

Financial Highlights:

Revenue growth, of 9% versus the prior year, was driven by positive demand in all customer segments in the third fiscal quarter. Retail and wholesale sales increased 9% and 8%, respectively, as noted below.

Gross profit increased $16.9 million, or 6%, in the third fiscal quarter compared to the prior year. The increase was driven by an increase of $45.1 million, or 9%, in revenues, which was partially offset by an increase of $28.1 million, or 12%, in cost of product. Higher costs were driven by propane pricing increases.

The Company recognized net earnings attributable to Ferrellgas Partners, L.P. of $59.1 million and $52.8 million in the third fiscal quarter of fiscal 2025 and 2024, respectively. The $6.3 million increase was primarily due to the $16.9 million increase in gross profit, described above, which was partially offset by an $8.8 million increase in operating expenses and $3.5 million increase in interest expense.

The $8.8 million increase in operating expense was due to increases of $7.8 million in plant and other, $0.7 million in personnel, and $0.3 million in vehicle expense. The increase in plant and other was primarily due to increases of $3.5 million in legal costs, $1.6 million in software expense, $1.0 million for capitalized tank installations and plant supplies, and $0.8 million for property maintenance.

The $3.5 million increase in interest expense was primarily driven by increases of $1.9 million for amortization of debt issuance costs, related to amendments to the Company's revolving credit facility, $0.7 million for letters of credit fees, and $0.7 million for interest charges for a lease related to a growth initiative.

For the third fiscal quarter, Adjusted EBITDA, a non-GAAP financial measure, increased by $10.8 million, or 10%, to $114.8 million, compared to $104.0 million in the prior year quarter. The $16.9 million increase in gross profit and a $1.1 million decrease in general and administrative expense, after adjusting for a $0.6 million increase in EBITDA adjustments, drove the increase in Adjusted EBITDA for the third fiscal quarter as compared to the prior year period. This increase was partially offset by the $8.8 million increase in operating expenses noted above.

Operational Highlights:

The third fiscal quarter 2025 was warmer than normal by 4% but 12% cooler than the third fiscal quarter 2024, which aligns with a 12% increase in gallons sold to residential customers. Propane sales volumes during the third fiscal quarter increased 13.4 million gallons, or 6%, compared to the prior year period. Additionally, increases of 6.0% and 2.6% in wholesale propane prices at our two major supply points contributed to the increase in revenues.

Retail sales increased $32.7 million, or 9%, compared to the prior year quarter and partially aligns with the increase in retail gallons sold of 8.8 million gallons, or 5%. Residential sales volume growth of 12% over the prior year quarter drove the majority of the increase, with other retail volume for industrial commercial, national, and agricultural customers growing at 2%.

Wholesale sales increased $9.9 million, or 8%, compared to the prior year period with a corresponding increase of 4.6 million gallons, or 10%, compared to the prior year period. The favorable increase was driven by a $4.7 million increase in wholesale gallons sold and a $3.1 million increase in tank exchange sales due to organic growth and preparation for peak season.

Blue Rhino, the Company's tank exchange business, focused this quarter on preparing for its peak summer selling season, which aligns with the next fiscal quarter. Impactful capital projects began at several Blue Rhino production plants to improve efficiency and expand capabilities as we modernize operations and make investments to serve customer demands. During periods of economic uncertainty, we have historically observed a shift in consumer behavior toward more cost-effective, home-based leisure activities like grilling. The Company is well-positioned to meet increases in demand through our robust supply network and customer-focused service model.

The Company gained six new national account customers through a three-year deal, which is expected to add a cumulative 1.6 million gallons of new business. In another win, the national sales team signed four additional multi-year contracts, adding a cumulative 0.8 million gallons.

The Company's new telematic technology has been in place for a full year and has proven to enhance our customer delivery. Metrics related to unproductive deliveries, fill rates, zero gallon and cylinder deliveries have all shown improvement during the third fiscal quarter as compared to the prior year period. Leveraging the technology, the Company's North Central region experienced a generational ice storm in March, employees worked tirelessly, without a single safety incident, to ensure customers had a critical supply of propane.

The Company continues to closely monitor global trade developments, including the imposition of tariffs on steel tanks and cylinders, and changes in trade policies that may affect our supply chain, cost structure, and overall business operations. The Company is exploring numerous potential actions to mitigate the effects of these developments as we strengthen and diversify our supplier relationships in addition to leveraging the company's buying power as a national logistics company. We remain committed to proactively adapt to evolving trade conditions with a focus on minimizing disruption and improving financial performance.

Debt Refinancing

As previously disclosed, the Company is working with Moelis & Company, LLC, a global investment bank, on refinancing efforts with respect to the $308.8 million revolving credit facility maturing on December 31, 2025, and the $650.0 million senior unsecured notes due April 1, 2026. The Company anticipates completing a refinancing in a timely manner.

On Friday, June 6, 2025, the Company will conduct a teleconference on the Internet at https://edge.media-server.com/mmc/p/jvdtqz33 to discuss the results of operations for the third fiscal quarter ended April 30, 2025. The 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 Ferrellgas

Ferrellgas 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. Its Blue Rhino propane exchange brand is sold at over 66,000 locations nationwide. Ferrellgas employees indirectly own 1.1 million Class A Units of the partnership, through an employee stock ownership plan. Ferrellgas Partners, L.P. filed an Annual Report on Form 10-K for the fiscal year ended July 31, 2024, with the Securities and Exchange Commission on September 27, 2024. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at www.ferrellgas.com. For more information, follow Ferrellgas on Facebook, X, LinkedIn, and Instagram.

Cautionary Note Regarding Forward-Looking Statements

Statements included in this release concerning current estimates, expectations, projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are forward-looking statements as defined under federal securities laws. These statements often use words such as "anticipate," "believe," "intend," "plan," "projection," "forecast," "strategy," "position," "continue," "estimate," "expect," "may," "will," or the negative of those terms or other variations of them or comparable terminology. 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, including 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; 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; inherent operating and litigation risks in gathering, transporting, handling and storing propane; costs of

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