Ferrellgas Partners L P (FGP) has reported a 65.02 percent plunge in profit for the quarter ended Apr. 30, 2017. The company has earned $6.54 million, or $0.07 a share in the quarter, compared with $18.68 million, or $0.19 a share for the same period last year. Revenue during the quarter grew 5.62 percent to $538.11 million from $509.47 million in the previous year period. Gross margin for the quarter contracted 1056 basis points over the previous year period to 37.36 percent. Total expenses were 91.41 percent of quarterly revenues, up from 89.36 percent for the same period last year. That has resulted in a contraction of 206 basis points in operating margin to 8.59 percent.
Operating income for the quarter was $46.20 million, compared with $54.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $76.79 million compared with $107.99 million in the prior year period. At the same time, adjusted EBITDA margin contracted 693 basis points in the quarter to 14.27 percent from 21.20 percent in the last year period.
"Weather for the third fiscal quarter was 2.7% warmer than last year, but more importantly 19.5% warmer than normal," said James E. Ferrell, the Company's interim president and chief executive officer. "Our retail gallons were consistent with those of the prior year on a weather adjusted basis, but overall margins were lower than the prior year period due to customer mix." Mr. Ferrell continued, "Further, we continue to move forward with plans to drive growth and improve results at Blue Rhino and are analyzing ways to become more operationally efficient."
Working capital remains negative
Working capital of Ferrellgas Partners L P was negative $26.15 million on Apr. 30, 2017 compared with negative $2.96 million on Apr. 30, 2016. Current ratio was at 0.93 as on Apr. 30, 2017, down from 0.99 on Apr. 30, 2016. Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 35 days for the last year period. Days sales outstanding went down to 39 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 12 days for the quarter compared with 31 days for the previous year period. At the same time, days payable outstanding went down to 29 days for the quarter from 36 for the same period last year.
Debt moves up marginally
Ferrellgas Partners L P has witnessed an increase in total debt over the last one year. It stood at $2,113.61 million as on Apr. 30, 2017, up 3.28 percent or $67.20 million from $2,046.40 million on Apr. 30, 2016. Total debt was 125.86 percent of total assets as on Apr. 30, 2017, compared with 86.24 percent on Apr. 30, 2016. Interest coverage ratio deteriorated to 1.16 for the quarter from 1.58 for the same period last year.
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