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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.
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.
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.
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.
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 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.
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.
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.