Ferrellgas Partners Reports Net Loss of $29.1 Million in Fiscal Year 2023
Annual Revenue Drops to $2.03 Billion Amidst Challenging Conditions
Ferrellgas Partners, L.P.(FGPR) and its subsidiaries, a promin ent player in the propane and gas liquids industry, recently released their condensed consolidated financial statements for the fiscal year ending July 31, 2023. The company reported a significant net loss of $29.1 million for the year, down from a net loss of $19.4 million in the previous fiscal year. This news comes as Ferrellgas faced challenging market conditions that impacted its bottom line. Additionally, the annual revenue for the company dropped to $2.03 billion from $2.11 billion in the previous year. Let's delve deeper into the financial data and explore the factors behind this performance.
Current Assets Decline
Ferrellgas Partners' balance sheet for July 31, 2023, shows a decline in current assets compared to the previous year. Cash and cash equivalents, including restricted cash, decreased to $137.3 million from $158.7 million in 2022. Accounts and notes receivable also saw a minor increase to $159.4 million from $150.4 million. However, inventories decreased to $98.1 million from $115.2 million, indicating changes in the company's liquidity.
Long-Term Assets Remain Stable
While current assets saw a decline, the company's long-term assets remained relatively stable. Property, plant, and equipment, net increased slightly to $615.2 million from $603.1 million. Goodwill and intangible assets also showed minor fluctuations, with goodwill remaining at $257 million, and intangible assets reaching $106.6 million, reflecting accumulated amortization.
Rising Liabilities
Ferrellgas Partners' current liabilities saw a reduction from $303.8 million in 2022 to $259.3 million in 2023. This reduction may indicate some efforts to manage short-term obligations more efficiently. However, long-term debt increased to $1.46 billion from $1.45 billion. Operating lease liabilities and other liabilities also showed an increase.
Mezzanine Equity and Deficit
The financial report highlights the presence of mezzanine equity in the form of senior preferred units, which remained consistent at $651.3 million. In contrast, the company's equity (deficit) section revealed mixed results. Limited partner unitholders saw a decrease from $1.23 billion to $1.20 billion, while general partner unitholder equity also dipped slightly. Accumulated other comprehensive income increased marginally to $1.1 million.
Revenue Decline
Ferrellgas Partners reported a decline in revenue for the fiscal year 2023. Total revenues dropped from $2.11 billion in the previous fiscal year to $2.03 billion. The decline in revenue is attributed to factors impacting the propane and gas liquids sales segment, which decreased from $365.5 million to $320.1 million. Other revenue sources, however, increased from $96.7 million to $109.6 million.
Cost of Sales and Operating Expenses
Cost of sales in the propane and gas liquids segment saw a decrease from $1.17 billion to $1.00 billion, indicating some cost-saving efforts. Operating expenses in personnel, vehicle, plant, and other areas increased to $577.5 million, while equipment lease expenses remained relatively stable. Depreciation and amortization expenses also showed a minor increase.
Operating Loss and Interest Expenses
The company reported an operating loss of $5 million, a significant drop from the previous year's operating income of $5.6 million. Interest expenses amounted to $97.7 million, down from $100.1 million in the previous year. Other income, however, increased to $2.6 million from $4.8 million.
Net Loss and Earnings per Unit
Ferrellgas Partners reported a net loss of $29.1 million for the fiscal year 2023. This translated to a basic and diluted net loss per Class A Unit of $9.28, compared to a loss of $17.14 per unit in the previous fiscal year.
Ferrellgas Partners, L.P. faced a challenging fiscal year 2023, reporting a net loss and a decline in revenue. The company will need to address these challenges and seek opportunities for growth and cost reduction to improve its financial performance in the upcoming fiscal year.
