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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2023

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file numbers: 001-11331, 000-50182, 333-06693-02 and 000-50183

Ferrellgas Partners, L.P.

Ferrellgas, L.P.

Ferrellgas Partners Finance Corp.

Ferrellgas Finance Corp.

(Exact name of registrants as specified in their charters)

Delaware

43-1698480

Delaware

43-1698481

Delaware

43-1742520

Delaware

14-1866671

(States or other jurisdictions of incorporation or organization)

(I.R.S. Employer Identification Nos.)

One Liberty Plaza,
Liberty, Missouri

64068

(Address of principal executive office)

(Zip Code)

Registrants’ telephone number, including area code: (816792-1600

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “Large Accelerated Filer,” “Accelerated Filer,” “Smaller Reporting Company,” and “Emerging Growth Company” in Rule 12b-2 of the Exchange Act.

Ferrellgas Partners, L.P.:

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

Ferrellgas, L.P., Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp.:

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Ferrellgas Partners, L.P. and Ferrellgas, L.P.

Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp.

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

Ferrellgas Partners, L.P. and Ferrellgas, L.P. Yes  No 

Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp. Yes  No 

Indicate by check mark whether the registrants have filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Ferrellgas Partners, L.P. and Ferrellgas Partners Finance Corp. Yes  No 

Ferrellgas, L.P. and Ferrellgas Finance Corp. N/A

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

    

Trading Symbol

    

Name of each exchange on which registered:

N/A

N/A

N/A

At November 30, 2023, the registrants had Class A Units, Class B Units or shares of common stock outstanding as follows:

Ferrellgas Partners, L.P.

4,857,605

Class A Units

1,300,000

Class B Units

Ferrellgas, L.P.

n/a

n/a

Ferrellgas Partners Finance Corp.

1,000

Common Stock

Ferrellgas Finance Corp.

1,000

Common Stock

Documents Incorporated by Reference: None

EACH OF FERRELLGAS PARTNERS FINANCE CORP. AND FERRELLGAS FINANCE CORP. MEET THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(A) AND (B) OF FORM 10-Q AND ARE THEREFORE, WITH RESPECT TO EACH SUCH REGISTRANT, FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the quarter ended October 31, 2023 of Ferrellgas Partners, L.P. together with its consolidated subsidiaries, including Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. Unless stated otherwise or the context otherwise requires, references to “Ferrellgas Partners” refers to Ferrellgas Partners, L.P. itself, with its consolidated subsidiaries. References to the “operating partnership” mean Ferrellgas, L.P., together (except where the context indicates otherwise) with its consolidated subsidiaries, including Ferrellgas Finance Corp. The terms “us,” “we,” “our,” “ours,” “consolidated,” the “Company” or “Ferrellgas” refer to Ferrellgas Partners, L.P. together with its consolidated subsidiaries, including Ferrellgas, L.P., Ferrellgas Partners Finance Corp. and Ferrellgas Finance Corp., except when used in connection with “Class A Units” or “Class B Units,” in which case these terms refer to Ferrellgas Partners, L.P. without its consolidated subsidiaries.

Ferrellgas Partners is a publicly traded Delaware limited partnership formed in 1994 and is primarily engaged in the retail distribution of propane and related equipment sales. Our Class A Units are traded on the OTC Pink Market under the symbol “FGPR.” The operating partnership was formed on April 22, 1994, and accounts for substantially all of our consolidated assets, sales and operating earnings.

Ferrellgas Partners is a holding entity that conducts no operations and has two direct subsidiaries, the operating partnership and Ferrellgas Partners Finance Corp. Our activities are primarily conducted through the operating partnership. Ferrellgas Partners and the Preferred Unitholders are the only limited partners of the operating partnership. Ferrellgas, Inc. is the sole general partner of Ferrellgas Partners and the operating partnership and, excluding the economic interests attributable to the Class B Units and the Preferred Units, owns an approximate 1% general partner economic interest in each, and, therefore, an effective 2% general partner economic interest in the operating partnership. Excluding the economic interests attributable to the Preferred Units, Ferrellgas Partners owns an approximate 99% limited partner interest in the operating partnership.

Our general partner performs all management functions for us. The parent company of our general partner, Ferrell Companies, currently beneficially owns approximately 23.4% of our outstanding Class A Units. Ferrell Companies is owned 100% by an employee stock ownership trust.

We believe that combining the quarterly reports on Form 10-Q for these entities provides the following benefits:

enhances investors’ understanding of Ferrellgas Partners and the operating partnership by enabling investors to view the business as a whole in the same manner that management views and operates the business;
eliminates duplicative disclosure and provides a more streamlined and readable presentation, since a substantial portion of the disclosure applies to both Ferrellgas Partners and the operating partnership; and
creates time and cost efficiencies through the preparation of a combined presentation.

To help investors understand the differences between Ferrellgas Partners and the operating partnership, this report provides separate condensed consolidated financial statements for Ferrellgas Partners and the operating partnership. Noncontrolling interests, Class A Units, Class B Units, shareholders' equity (deficit) and partners' deficit are the main areas of difference between the condensed consolidated financial statements of Ferrellgas Partners and those of the operating partnership. A single set of notes to condensed consolidated financial statements is presented that includes separate discussions for Ferrellgas Partners and the operating partnership, when applicable. A combined Management's Discussion and Analysis of Financial Condition and Results of Operations section is also included that presents combined information and discrete information related to each entity, as applicable.

In order to highlight the differences between Ferrellgas Partners and the operating partnership, this report includes the following sections that provide separate financial information for Ferrellgas Partners and the operating partnership:

condensed consolidated financial statements; and
certain accompanying notes to condensed consolidated financial statements, which denote “Ferrellgas Partners” and “The operating partnership” in sections where applicable.

2

FERRELLGAS PARTNERS, L.P.

FERRELLGAS PARTNERS FINANCE CORP.

FERRELLGAS, L.P.

FERRELLGAS FINANCE CORP.

TABLE OF CONTENTS

Page

PART I - FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS (unaudited)

Ferrellgas Partners, L.P. and Subsidiaries

Condensed Consolidated Balance Sheets – October 31, 2023 and July 31, 2023

4

Condensed Consolidated Statements of Operations – Three months ended October 31, 2023 and 2022

5

Condensed Consolidated Statements of Comprehensive Loss – Three months ended October 31, 2023 and 2022

6

Condensed Consolidated Statement of Equity (Deficit) – Three months ended October 31, 2023 and 2022

7

Condensed Consolidated Statements of Cash Flows – Three months ended October 31, 2023 and 2022

8

Ferrellgas, L.P. and Subsidiaries

Condensed Consolidated Balance Sheets – October 31, 2023 and July 31, 2023

9

Condensed Consolidated Statements of Operations – Three months ended October 31, 2023 and 2022

10

Condensed Consolidated Statements of Comprehensive Loss – Three months ended October 31, 2023 and 2022

11

Condensed Consolidated Statement of Partners’ Deficit – Three months ended October 31, 2023 and 2022

12

Condensed Consolidated Statements of Cash Flows – Three months ended October 31, 2023 and 2022

13

Ferrellgas Partners, L.P. and Subsidiaries and Ferrellgas, L.P. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

14

Ferrellgas Partners Finance Corp.

Condensed Balance Sheets – October 31, 2023 and July 31, 2023

33

Condensed Statements of Operations – Three months ended October 31, 2023 and 2022

34

Condensed Statements of Cash Flows – Three months ended October 31, 2023 and 2022

35

Notes to Condensed Financial Statements

36

Ferrellgas Finance Corp.

Condensed Balance Sheets – October 31, 2023 and July 31, 2023

37

Condensed Statements of Operations – Three months ended October 31, 2023 and 2022

38

Condensed Statements of Cash Flows – Three months ended October 31, 2023 and 2022

39

Notes to Condensed Financial Statements

40

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

41

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

55

ITEM 4.

CONTROLS AND PROCEDURES

56

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

57

ITEM 1A.

RISK FACTORS

57

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

57

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

57

ITEM 4.

MINE SAFETY DISCLOSURES

57

ITEM 5.

OTHER INFORMATION

57

ITEM 6.

EXHIBITS

58

3

PART I - FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS (unaudited)

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)

    

October 31, 2023

    

July 31, 2023

ASSETS

Current assets:

Cash and cash equivalents (including $10,789 and $11,126 of restricted cash at October 31, 2023 and July 31, 2023, respectively)

$

76,783

$

137,347

Accounts and notes receivable, net

 

150,504

 

159,379

Inventories

 

105,829

 

98,104

Price risk management asset

6,465

11,966

Prepaid expenses and other current assets

 

43,025

 

29,135

Total current assets

 

382,606

 

435,931

 

  

 

  

Property, plant and equipment, net

 

616,212

 

615,174

Goodwill, net

 

257,006

 

257,006

Intangible assets (net of accumulated amortization of $351,971 and $349,614 at October 31, 2023 and July 31, 2023, respectively)

 

104,257

 

106,615

Operating lease right-of-use assets

55,609

57,839

Other assets, net

 

56,408

 

58,838

Total assets

$

1,472,098

$

1,531,403

 

  

 

  

LIABILITIES, MEZZANINE AND EQUITY (DEFICIT)

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable

$

45,918

$

35,115

Current portion of long-term debt

2,597

2,597

Current operating lease liabilities

24,954

24,600

Other current liabilities

 

175,241

 

197,030

Total current liabilities

248,710

259,342

 

  

 

  

Long-term debt

 

1,456,368

 

1,456,184

Operating lease liabilities

31,804

34,235

Other liabilities

 

26,378

 

29,084

Contingencies and commitments (Note L)

Mezzanine equity:

Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at October 31, 2023 and July 31, 2023)

651,349

651,349

Equity (Deficit):

 

  

 

  

Limited partner unitholders

 

 

Class A (4,857,605 units outstanding at October 31, 2023 and July 31, 2023)

(1,237,866)

(1,205,103)

Class B (1,300,000 units outstanding at October 31, 2023 and July 31, 2023)

383,012

383,012

General partner unitholder (49,496 units outstanding at October 31, 2023 and July 31, 2023)

 

(70,897)

 

(70,566)

Accumulated other comprehensive (loss) income

 

(9,125)

 

1,059

Total Ferrellgas Partners, L.P. deficit

 

(934,876)

 

(891,598)

Noncontrolling interest

 

(7,635)

 

(7,193)

Total deficit

 

(942,511)

 

(898,791)

Total liabilities, mezzanine and deficit

$

1,472,098

$

1,531,403

See notes to condensed consolidated financial statements.

4

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit data)

(unaudited)

For the three months ended October 31, 

    

2023

    

2022

 

Revenues:

Propane and other gas liquids sales

$

338,934

$

385,844

Other

 

32,079

 

27,445

Total revenues

 

371,013

 

413,289

 

  

 

  

Costs and expenses:

 

 

  

Cost of sales - propane and other gas liquids sales

 

172,180

 

213,081

Cost of sales - other

 

4,441

 

4,776

Operating expense - personnel, vehicle, plant and other

 

144,646

 

129,740

Operating expense - equipment lease expense

5,376

 

6,024

Depreciation and amortization expense

 

24,404

 

22,631

General and administrative expense

 

12,825

 

14,833

Non-cash employee stock ownership plan compensation charge

 

720

 

723

Loss on asset sales and disposals

 

1,335

 

1,680

 

  

 

  

Operating income

 

5,086

 

19,801

Interest expense

 

(24,161)

 

(25,009)

Other income, net

 

1,336

 

469

Loss before income taxes

 

(17,739)

 

(4,739)

Income tax expense

 

162

 

18

Net loss

 

(17,901)

 

(4,757)

Net loss attributable to noncontrolling interest

 

(345)

 

(212)

Net loss attributable to Ferrellgas Partners, L.P.

$

(17,556)

$

(4,545)

Class A unitholders’ interest in net loss (Note M)

$

(33,632)

$

(20,751)

Basic and diluted net loss per Class A Unit (Note M)

$

(6.92)

$

(4.27)

See notes to condensed consolidated financial statements.

5

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(unaudited)

For the three months ended October 31, 

    

2023

    

2022

Net loss

$

(17,901)

$

(4,757)

Other comprehensive loss:

Change in value of risk management derivatives

 

(13,472)

 

(36,185)

Reclassification of losses (gains) on derivatives to earnings, net

 

3,184

 

(12,788)

Other comprehensive loss

 

(10,288)

 

(48,973)

Comprehensive loss

 

(28,189)

 

(53,730)

Comprehensive loss attributable to noncontrolling interest

 

449

 

707

Comprehensive loss attributable to Ferrellgas Partners, L.P.

$

(27,740)

$

(53,023)

See notes to condensed consolidated financial statements.

6

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EQUITY (DEFICIT)

(in thousands)

(unaudited)

Number of units

Accumulated

Total Ferrellgas

General

General

other

Partners, L.P.

Class A

Class B

partner

Class A

Class B

partner

comprehensive

partners’

Non-controlling

Total partners’

   

unitholders 

   

unitholders

   

unitholder

   

unitholders

   

unitholders

   

unitholder

   

income (loss)

   

deficit

   

interest

   

deficit

Balance at July 31, 2023

 

4,857.6

 

1,300.0

49.5

$

(1,205,103)

$

383,012

$

(70,566)

$

1,059

$

(891,598)

$

(7,193)

$

(898,791)

Contributions in connection with non-cash ESOP compensation charges

706

7

713

7

$

720

Net earnings allocated to preferred units

(16,088)

(163)

(16,251)

(16,251)

Net loss

(17,381)

(175)

(17,556)

(345)

(17,901)

Other comprehensive loss

(10,184)

(10,184)

(104)

(10,288)

Balance at October 31, 2023

 

4,857.6

 

1,300.0

49.5

$

(1,237,866)

$

383,012

$

(70,897)

$

(9,125)

$

(934,876)

$

(7,635)

$

(942,511)

    

Number of units

    

    

Accumulated

Total Ferrellgas

    

    

General

General

other

Partners, L.P.

Class A

Class B

partner

Class A

Class B

partner

comprehensive

partners’

Non-controlling

Total partners’

   

unitholders 

   

unitholders

   

unitholder

   

unitholders

   

unitholders

   

unitholder

   

income (loss)

   

deficit

   

interest

   

deficit

Balance at July 31, 2022

 

4,857.6

 

1,300.0

49.5

$

(1,229,823)

$

383,012

$

(71,320)

$

37,907

$

(880,224)

$

(7,587)

$

(887,811)

Contributions in connection with non-cash ESOP compensation charges

 

709

7

716

7

723

Net earnings allocated to preferred units

 

 

 

(16,088)

 

(163)

 

 

(16,251)

 

 

(16,251)

Net loss

 

 

 

(4,500)

 

(45)

 

 

(4,545)

 

(212)

 

(4,757)

Other comprehensive loss

 

 

 

 

 

(48,478)

 

(48,478)

 

(495)

 

(48,973)

Balance at October 31, 2022

 

4,857.6

 

1,300.0

49.5

$

(1,249,702)

$

383,012

$

(71,521)

$

(10,571)

$

(948,782)

$

(8,287)

$

(957,069)

See notes to condensed consolidated financial statements.

7

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

For the three months ended October 31, 

    

2023

    

2022

Cash flows from operating activities:

  

  

Net loss

$

(17,901)

$

(4,757)

Reconciliation of net loss to net cash used in operating activities:

 

  

 

  

Depreciation and amortization expense

 

24,404

 

22,631

Non-cash employee stock ownership plan compensation charge

 

720

 

723

Loss on asset sales and disposals

 

1,335

 

1,680

Provision for expected credit losses

 

676

 

321

Other

 

2,114

 

2,000

Changes in operating assets and liabilities, net of effects from business acquisitions:

 

 

  

Accounts and notes receivable

 

8,199

 

(8,600)

Inventories

 

(7,725)

 

(4,958)

Prepaid expenses and other current assets

 

(13,890)

 

(37,766)

Accounts payable

 

11,185

 

3,373

Accrued interest expense

 

(21,734)

 

(20,268)

Other current liabilities

 

(7,543)

 

(16,344)

Other assets and liabilities

 

1,306

 

(4,821)

Net cash used in operating activities

 

(18,854)

 

(66,786)

 

  

 

  

Cash flows from investing activities:

 

  

 

  

Business acquisitions, net of cash acquired

 

 

(13,290)

Capital expenditures

 

(23,547)

 

(22,247)

Proceeds from sale of assets

 

480

 

752

Net cash used in investing activities

 

(23,067)

 

(34,785)

 

  

 

  

Cash flows from financing activities:

 

  

 

  

Preferred unit distributions

(15,610)

(15,580)

Payments on long-term debt

 

(1,224)

 

(979)

Proceeds from short-term borrowings

30,000

Repayments of short-term borrowings

 

 

(15,000)

Cash payments for principal portion of lease liability

 

(1,809)

 

(302)

Net cash used in financing activities

 

(18,643)

 

(1,861)

 

  

 

  

Net change in cash, cash equivalents and restricted cash

 

(60,564)

 

(103,432)

Cash, cash equivalents and restricted cash - beginning of period

 

137,347

 

158,737

Cash, cash equivalents and restricted cash - end of period

$

76,783

$

55,305

See notes to condensed consolidated financial statements.

8

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

    

October 31, 2023

    

July 31, 2023

ASSETS

Current assets:

 

  

 

  

Cash and cash equivalents (including $10,789 and $11,126 of restricted cash at October 31, 2023 and July 31, 2023, respectively)

$

76,679

$

137,245

Accounts and notes receivable, net

 

150,504

 

159,379

Inventories

 

105,829

 

98,104

Price risk management asset

6,465

11,966

Prepaid expenses and other current assets

 

43,004

 

29,113

Total current assets

 

382,481

 

435,807

Property, plant and equipment, net

 

616,212

 

615,174

Goodwill, net

 

257,006

 

257,006

Intangible assets (net of accumulated amortization of $351,971 and $349,614 at October 31, 2023 and July 31, 2023, respectively)

 

104,257

 

106,615

Operating lease right-of-use assets

55,609

57,839

Other assets, net

 

56,408

 

58,838

Total assets

$

1,471,973

$

1,531,279

LIABILITIES, MEZZANINE AND DEFICIT

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable

$

45,918

$

35,115

Current portion of long-term debt

2,597

2,597

Current operating lease liabilities

24,954

24,600

Other current liabilities

 

175,158

 

196,966

Total current liabilities

248,627

259,278

Long-term debt

 

1,456,368

 

1,456,184

Operating lease liabilities

31,804

34,235

Other liabilities

 

26,378

 

29,084

Contingencies and commitments (Note L)

 

 

Mezzanine equity:

Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at October 31, 2023 and July 31, 2023)

651,349

651,349

Deficit:

 

  

 

  

Limited partners

 

(925,793)

 

(892,717)

General partner

 

(7,555)

 

(7,217)

Accumulated other comprehensive (loss) income

 

(9,205)

 

1,083

Total deficit

 

(942,553)

 

(898,851)

Total liabilities, mezzanine and deficit

$

1,471,973

$

1,531,279

See notes to condensed consolidated financial statements.

9

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands)

(unaudited)

For the three months ended October 31, 

    

2023

    

2022

Revenues:

Propane and other gas liquids sales

$

338,934

$

385,844

Other

 

32,079

 

27,445

Total revenues

 

371,013

 

413,289

Costs and expenses:

 

  

 

  

Cost of sales - propane and other gas liquids sales

 

172,180

 

213,081

Cost of sales - other

 

4,441

 

4,776

Operating expense - personnel, vehicle, plant and other

 

144,646

 

129,740

Operating expense - equipment lease expense

 

5,376

 

6,024

Depreciation and amortization expense

 

24,404

 

22,631

General and administrative expense

 

12,826

 

14,831

Non-cash employee stock ownership plan compensation charge

 

720

 

723

Loss on asset sales and disposals

 

1,335

 

1,680

Operating income

 

5,085

19,803

Interest expense

 

(24,161)

 

(25,009)

Other income, net

 

1,337

 

468

Loss before income taxes

 

(17,739)

(4,738)

Income tax expense

 

144

 

18

Net loss

$

(17,883)

$

(4,756)

See notes to condensed consolidated financial statements.

10

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(unaudited)

For the three months ended October 31, 

    

2023

    

2022

Net loss

$

(17,883)

$

(4,756)

Other comprehensive loss:

 

  

 

  

Change in value of risk management derivatives

(13,472)

 

(36,185)

Reclassification of losses (gains) on derivatives to earnings, net

 

3,184

 

(12,788)

Other comprehensive loss

 

(10,288)

 

(48,973)

Comprehensive loss

$

(28,171)

$

(53,729)

See notes to condensed consolidated financial statements.

11

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF PARTNERS’ DEFICIT

(in thousands)

(unaudited)

Accumulated

other

Total

Limited

General

comprehensive

partners’

    

partner

    

partner

    

income (loss)

    

deficit

Balance at July 31, 2023

$

(892,717)

$

(7,217)

$

1,083

$

(898,851)

Contributions in connection with non-cash ESOP compensation charges

 

713

 

7

 

 

720

Net earnings allocated to preferred units

 

(16,251)

(16,251)

Net loss

 

(17,538)

 

(345)

 

 

(17,883)

Other comprehensive loss

 

 

 

(10,288)

 

(10,288)

Balance at October 31, 2023

$

(925,793)

$

(7,555)

$

(9,205)

$

(942,553)

Accumulated

other

Total

Limited

General

comprehensive

partners’

    

partner

    

partner

    

income (loss)

    

deficit

Balance at July 31, 2022

$

(918,146)

$

(7,987)

$

38,307

$

(887,826)

Contributions in connection with non-cash ESOP compensation charges

 

716

 

7

 

 

723

Net earnings allocated to preferred units

 

(16,251)

 

 

 

(16,251)

Net loss

 

(4,544)

 

(212)

 

 

(4,756)

Other comprehensive loss

 

 

 

(48,973)

 

(48,973)

Balance at October 31, 2022

$

(938,225)

$

(8,192)

$

(10,666)

$

(957,083)

See notes to condensed consolidated financial statements.

12

FERRELLGAS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

For the three months ended October 31, 

    

2023

    

2022

Cash flows from operating activities:

Net loss

$

(17,883)

$

(4,756)

Reconciliation of net loss to net cash used in operating activities:

 

  

 

  

Depreciation and amortization expense

 

24,404

 

22,631

Non-cash employee stock ownership plan compensation charge

 

720

 

723

Loss on asset sales and disposals

 

1,335

 

1,680

Provision for expected credit losses

 

676

 

321

Other

 

2,114

 

2,000

Changes in operating assets and liabilities, net of effects from business acquisitions:

 

  

 

  

Accounts and notes receivable

 

8,199

 

(8,600)

Inventories

 

(7,725)

 

(4,958)

Prepaid expenses and other current assets

 

(13,891)

 

(37,765)

Accounts payable

 

11,185

 

3,373

Accrued interest expense

 

(21,734)

 

(20,268)

Other current liabilities

 

(7,562)

 

(16,346)

Other assets and liabilities

 

1,306

 

(4,822)

Net cash used in operating activities

 

(18,856)

 

(66,787)

Cash flows from investing activities:

 

  

 

  

Business acquisitions, net of cash acquired

 

 

(13,290)

Capital expenditures

 

(23,547)

 

(22,247)

Proceeds from sale of assets

 

480

 

752

Net cash used in investing activities

 

(23,067)

 

(34,785)

Cash flows from financing activities:

 

  

 

  

Preferred unit distributions

(15,610)

(15,580)

Payments on long-term debt

 

(1,224)

 

(979)

Proceeds from short-term borrowings

30,000

Repayments of short-term borrowings

 

 

(15,000)

Cash paid for principal portion of finance lease liability

 

(1,809)

 

(302)

Net cash used in financing activities

 

(18,643)

 

(1,861)

Net change in cash, cash equivalents and restricted cash

 

(