Ferrellgas Partners' Q2 revenue falls 4%

Overview

• Propane supplier's fiscal Q2 revenue fell 4% but gross profit rose 1%

• Net earnings for fiscal Q2 rose 3% to $102.2 mln

• Adjusted EBITDA for fiscal Q2 increased 6% to $166.1 mln

Outlook

• Ferrellgas plans to accelerate strategic growth and expand customer base

• Ferrellgas expects consistent earnings growth and sustainable cash flow generation

Result Drivers

• WEATHER IMPACT - Extended cold weather in the east and warm conditions in the west created challenges and opportunities, leading to resource reallocation to meet demand, per CEO Tamria Zertuche

• COST REDUCTION - A 21.7% decline in average propane prices and a 10% reduction in product costs offset revenue decline, boosting gross profit

• OPERATIONAL EFFICIENCIES - Improved route density and reduced unproductive deliveries increased margin per gallon by 6%

Company press release: ID:nGNX1QtPxq

Key Details

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