Ferrellgas Partners (FGPR) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 was impacted by unseasonably warm weather, higher medical insurance claims, and inflationary pressures, resulting in lower gallons sold and decreased EBITDA year-over-year.

• Strategic focus on weather-agnostic business lines, including Blue Rhino tank exchange and Autogas, drove growth in these segments.

• Largest acquisition in a decade completed with Eastern Sierra Propane, expanding presence in California.

• Operational improvements in supply chain and technology enhanced efficiency, reduced capital expenditures, and improved free cash flow.

• Blue Rhino segment EBITDA grew 26% year-over-year in Q4, with over 6,000 new locations added and supply chain improvements boosting performance.

Financial highlights

• Revenues for fiscal 2024 decreased by $189.3 million (9%) year-over-year, primarily due to warmer weather and lower retail customer counts.

• Adjusted EBITDA for fiscal 2024 fell by $42.8 million (12%) to $317.4 million; Q4 Adjusted EBITDA rose 16% year-over-year to $33.6 million.

• Net loss attributable to partners was $20.8 million in Q4 2024, compared to $29.1 million in Q4 2023; full-year net earnings were $110.2 million, down from $136.9 million.

• Gross profit was flat in Q4 at $188.1 million but down $24.1 million (2%) for the year; margin per gallon improved due to favorable segment mix and pricing.

• Operating income for FY2024 was $205.1 million, down from $233.7 million in FY2023.

Outlook and guidance

• No formal EBITDA guidance for fiscal 2025 provided; key performance drivers and historical trends are available in regulatory filings.

• Continued focus on expanding weather-agnostic segments and operational efficiency expected to drive future performance.

• Asset redeployment from closed businesses expected to support future gallon growth.

• Blue Rhino and retail operations are preparing for increased demand in the upcoming La Nina winter.