Ferrellgas Partners, L.P. (FGP) has reported a 33.31 percent plunge in profit for the quarter ended Jan. 31, 2017. The company has earned $38.10 million, or $0.39 a share in the quarter, compared with $57.13 million, or $0.58 a share for the same period last year.
Revenue during the quarter dropped 10.78 percent to $579.25 million from $649.24 million in the previous year period. Gross margin for the quarter contracted 78 basis points over the previous year period to 40.84 percent. Total expenses were 87.02 percent of quarterly revenues, up from 85.55 percent for the same period last year. That has resulted in a contraction of 147 basis points in operating margin to 12.98 percent.
Operating income for the quarter was $75.17 million, compared with $93.81 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $105.03 million compared with $138.33 million in the prior year period. At the same time, adjusted EBITDA margin contracted 317 basis points in the quarter to 18.13 percent from 21.31 percent in the last year period.
"Weather for the second fiscal quarter was 4% colder than last year but a stunning 14% warmer than normal," said James E. Ferrell, the Company's interim President and chief executive officer. "Our efforts to increase market share resulted in gallons increasing approximately 7%, but resulted in overall margins lower than the prior year period, due to customer mix and location."
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