On September 29, 2023, Ferrellgas Partners LP (FGPR, Financial) released its financial results for the fiscal year and fourth quarter ended July 31, 2023. Despite a decrease in revenues, the company saw an increase in gross profit and margin per gallon, indicating a positive change primarily driven by favorable margins.
Financial Performance and Challenges
Ferrellgas Partners LP (FGPR, Financial) reported a gross profit increase of $9.6 million, or 5%, for the fourth fiscal quarter, and $79.2 million, or 9%, for fiscal 2023 compared to the respective prior year periods. This positive change was primarily driven by favorable margins, and partially offset by a decrease in wholesale gross profit attributable to an increase in cost of sales related to the company's tank exchange business.
However, the company faced challenges as revenues decreased $45.7 million, or 12%, for the fourth fiscal quarter related to lower overall cost of product as compared to the prior year period. For fiscal 2023, revenues decreased $88.1 million, or 4%. This decrease in revenues was driven by a 3% decrease in gallons sold both for the fourth fiscal quarter and fiscal 2023 as well as warmer weather trends when considering fiscal 2023.
Net Loss and Earnings
Ferrellgas Partners LP (FGPR, Financial) recognized a net loss of $29.1 million and $19.4 million in the fourth fiscal quarter of fiscal 2023 and 2022, respectively. In fiscal 2023 and 2022, the company had net earnings attributable to Ferrellgas Partners, L.P. of $136.9 million and $148.0 million, respectively.
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP financial measure, decreased by $5.2 million, or 15%, to $29.0 million in the fourth fiscal quarter compared to $34.2 million in the prior year quarter. However, Adjusted EBITDA increased $20.1 million, or 6%, to $360.2 million for fiscal 2023 compared to $340.1 million in fiscal 2022.
Leadership Changes and Employee Recognition
On July 31, 2023, the company announced the appointment of Tamria Zertuche as President and CEO, and the appointment of Mr. Ferrell to Executive Chairman of the Board, both effective August 1, 2023. The company also highlighted its employee recognition program, Ferrellgas Flame awards, with more than 200 nominations during the fourth fiscal quarter.
Future Outlook
Despite the challenges faced in fiscal 2023, Ferrellgas Partners LP (FGPR, Financial) remains committed to its growth projects, including increased acquisitions and the expansion of its tank exchange brand, Blue Rhino, into self-service vending. The company's focus on safety, customer service, innovation, and leadership, as well as its commitment to education and continuous improvement, will continue to drive its future success.
