þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended July 31, | ||
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period fromto |
Delaware | 43-1698480 | |
Delaware | 43-1742520 | |
Delaware | 43-1698481 | |
Delaware | 14-1866671 | |
(States or other jurisdictions of incorporation or organization) | (I.R.S. Employer Identification Nos.) | |
7500 College Boulevard, Suite 1000, Overland Park, Kansas | 66210 (Zip Code) | |
(Address of principal executive office) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Units of Ferrellgas Partners, L.P. | New York Stock Exchange | |
Large accelerated filer þ | Non-accelerated filer o | Smaller reporting company o |
Large accelerated filer o | Accelerated filer o | Non-accelerated | Smaller reporting company o |
Ferrellgas Partners, L.P. | 62,961,674 | Common Units | ||||||
Ferrellgas Partners Finance Corp. | 1,000 | Common Stock | ||||||
Ferrellgas, L.P. | n/a | n/a | ||||||
Ferrellgas Finance Corp. | 1,000 | Common Stock |
ITEM 1. | BUSINESS. |
• | “us,” “we,” “our,” “ours,” or | |
• | “Ferrellgas Partners” refers to Ferrellgas Partners, L.P. itself, without its consolidated subsidiaries; | |
• | the “operating partnership” refers to Ferrellgas, L.P. | |
• | our “general partner” refers to Ferrellgas, Inc.; | |
• | “Ferrell Companies” refers to Ferrell Companies, Inc., the sole shareholder of our general partner; | |
• | “unitholders” refers to holders of common units of Ferrellgas Partners; | |
• | “customers” refers to customers other than our wholesale customers or our other bulk propane distributors or marketers; | |
• | “retail sales” refers to Propane and other gas liquid sales: Retail — Sales to End Users, the volume of propane sold primarily to our residential, industrial/commercial and agricultural customers; | |
• | “wholesale sales” refers to Propane and other gas liquid sales: Wholesale — Sales to Resellers, the volume of propane sold primarily to our portable tank exchange customers and bulk propane sold to wholesale customers; | |
• | “other gas sales” refers to Propane and other gas liquid sales: Other Gas Sales, primarily the volume of bulk propane sold to other third party propane distributors or marketers; | |
• | “propane sales | |
• | “Notes” refers to the notes of the consolidated financial statements of Ferrellgas Partners or the operating partnership, as applicable. |
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Propane Sales | ||||
Fiscal Year Ended | Volumes | |||
(In millions) | ||||
July 31, 2008 | 839 | |||
July 31, 2007 | ||||
July 31, 2006 | ||||
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• | maximize operating efficiencies through the utilization of our technology platform; | |
• | capitalize on our national presence and economies of scale; | |
• | expand our operations through disciplined acquisitions and internal growth; and | |
• | align employee |
• | product procurement; | |
• | transportation; | |
• | fleet purchases; |
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• | propane customer administration; and | |
• | general administration. |
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• | our efficiency in delivering propane to customers; | |
• | our employee training and safety programs; |
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• | our enhanced customer service, facilitated by our technology platform and our | |
• | our national distributor network for our commercial and portable tank exchange customers. |
• | residential; | |
• | industrial/commercial; | |
• | portable tank exchange; | |
• | agricultural; | |
• | wholesale; and | |
• | other. |
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• | common carrier services; | |
• | the sale of carbon dioxide; | |
• | wholesale | |
• | the sale of refined fuels. |
Propane distribution locations | ||||
Risk management, transportation and wholesale | ||||
Centralized corporate functions | ||||
Total | ||||
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ITEM 1A. | RISK FACTORS. |
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• | impair our ability to effectively market or acquire propane; or | |
• | impair our ability to raise equity or debt capital for acquisitions, capital expenditures or ongoing operations. |
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• | we had total indebtedness of approximately | |
• | Ferrellgas Partners had partners’ capital of approximately | |
• | we had availability under our | |
• | we had aggregate future minimum rental commitments under non-cancelable operating leases of approximately |
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• | $ | |
• | $ |
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• | $83.0 million — 2011; | |
• | $268.9 million — 2012; | |
• | $0.4 million — 2013; and | |
• | $ |
• | make it more difficult for us to satisfy our obligations with respect to our securities; | |
• | impair our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes; | |
• | result in higher interest expense in the event of increases in interest rates since some of our debt is, and will continue to be, at variable rates of interest; |
• | impair our operating capacity and cash flows if we fail to comply with financial and restrictive covenants in our debt agreements and an event of default occurs as a result of that failure that is not cured or waived; |
• | require us to dedicate a substantial portion of our cash flow to payments on our indebtedness and other financial obligations, thereby reducing the availability of our cash flow to fund distributions, working capital, capital expenditures and other general partnership requirements; | |
• | limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and | |
• | place us at a competitive disadvantage compared to our competitors that have proportionately less debt. |
• | restructure or refinance their indebtedness; | |
• | enter into other necessary financial transactions; | |
• | seek additional equity capital; or | |
• |
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• | incur additional indebtedness; | |
• | make distributions to our unitholders; | |
• | purchase or redeem our outstanding equity interests or subordinated debt; | |
• | make specified investments; | |
• | create or incur liens; | |
• | sell assets; | |
• | engage in specified transactions with affiliates; | |
• | restrict the ability of our subsidiaries to make specified payments, loans, guarantees and transfers of assets or interests in assets; | |
• | engage in sale-leaseback transactions; | |
• | effect a merger or consolidation with or into other companies or a sale of all or substantially all of our properties or assets; and | |
• | engage in other lines of business. |
• | to obtain future financings; | |
• | to make needed capital expenditures; | |
• | to withstand a future downturn in our business or the economy in general; or | |
• | to conduct operations or otherwise take advantage of business opportunities that may arise. |
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• | a significant increase in the cost of propane; | |
• | a significant delay in the collections of accounts receivable; | |
• | increased volatility in energy commodity prices related to risk management activities; | |
• | increased liquidity requirements imposed by insurance providers; | |
• | a significant downgrade in our credit | |
rating leading to decreased trade credit; or | ||
• | a significant acquisition. |
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• | we will be able to acquire any of these candidates on economically acceptable terms; | |
• | we will be able to successfully integrate acquired operations with any expected cost savings; |
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• | any acquisitions made will not be dilutive to our earnings and distributions; | |
• | any additional equity we issue as consideration for an acquisition will not be dilutive to our unitholders; or | |
• | any additional debt we incur to finance an acquisition will not affect the operating partnership’s ability to make distributions to Ferrellgas Partners or service the operating partnership’s existing debt. |
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• | the lenders under the operating partnership’s indebtedness; | |
• | the claims of lessors under the operating partnership’s operating leases; | |
• | the claims of the lenders and their affiliates under the operating partnership’s accounts receivable securitization facility; |
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• | debt securities, including any subordinated debt securities, issued by the operating partnership; and | |
• | all other possible future creditors of the operating partnership and its subsidiaries. |
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• | a liquid market for the debt securities will develop; | |
• | a debt holder will be able to sell its debt securities; or | |
• | a debt holder will receive any specific price upon any sale of its debt securities. |
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• | cash flow generated by operations; | |
• | weather in our areas of operation; | |
• | borrowing capacity under our credit facilities; | |
• | principal and interest payments made on our debt; |
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• | the costs of acquisitions, including related debt service payments; | |
• | restrictions contained in debt instruments; | |
• | issuances of debt and equity securities; | |
• | fluctuations in working capital; | |
• | capital expenditures; | |
• | adjustments in reserves made by our general partner in its discretion; | |
• | prevailing economic conditions; and | |
• | financial, business and other factors, a number of which will be beyond our control. |
• | to comply with the terms of any of our agreements or obligations, including the establishment of reserves to fund the payment of interest and principal in the future of any debt securities of Ferrellgas Partners or the operating partnership; | |
• | to provide for level distributions of cash notwithstanding the seasonality of our business; and | |
• | to provide for future capital expenditures and other payments deemed by our general partner to be necessary or advisable. |
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• | making any distributions to unitholders if an event of default exists or would exist when such distribution is made; |
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• | distributing amounts in excess of 100% of available cash for the immediately preceding fiscal quarter if its consolidated fixed charge coverage ratio as defined in the indenture is | |
• | distributing amounts in excess of $25.0 million less any restricted payments made for the prior sixteen fiscal quarters plus the aggregate cash contributions made to us during that period if its consolidated fixed charge coverage ratio as defined in the indenture is less than or equal to 1.75 to 1.00. |
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• | discourage a person or group from attempting to remove our general partner or otherwise change management; and | |
• | reduce the price at which our common units will trade under various circumstances. |
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• | incur additional indebtedness; | |
• | engage in transactions with affiliates; | |
• | create or incur liens; | |
• | sell assets; | |
• | make restricted payments, loans and investments; | |
• | enter into business combinations and asset sale transactions; and | |
• | engage in other lines of business. |
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• | the vote of the holders of at least 662/3% of the outstanding units entitled to vote thereon, which includes the common units owned by our general partner and its affiliates; and | |
• | upon the election of a successor general partner by the vote of the holders of not less than a majority of the outstanding common units entitled to vote. |
• | remove or replace our general partner; | |
• | make specified amendments to our partnership agreements; or |
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• | take other action pursuant to our partnership agreements that constitutes participation in the “control” of our business, |
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• | the general partner does not breach any duty to us or our unitholders by borrowing funds or approving any borrowing; our general partner is protected even if the purpose or effect of the borrowing is to increase incentive distributions to our general partner; | |
• | our general partner does not breach any duty to us or our unitholders by taking any actions consistent with the standards of reasonable discretion outlined in the definitions of available cash and cash from operations contained in our partnership agreements; and | |
• | our general partner does not breach any standard of care or duty by resolving conflicts of interest unless our general partner acts in bad faith. |
• | decisions of our general partner with respect to the amount and timing of our cash expenditures, borrowings, acquisitions, issuances of additional securities and changes in reserves in any quarter may affect the amount of incentive distributions we are obligated to pay our general partner; |
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• | borrowings do not constitute a breach of any duty owed by our general partner to our unitholders even if these borrowings have the purpose or effect of directly or indirectly enabling us to make distributions to the holder of our incentive distribution rights, currently our general partner, or to hasten the expiration of the deferral period with respect to the common units held by Ferrell Companies; | |
• | we do not have any employees and rely solely on employees of our general partner and its affiliates; | |
• | under the terms of our partnership agreements, we must reimburse our general partner and its affiliates for costs incurred in managing and operating us, including costs incurred in rendering corporate staff and support services to us; | |
• | our general partner is not restricted from causing us to pay it or its affiliates for any services rendered on terms that are fair and reasonable to us or causing us to enter into additional contractual arrangements with any of such entities; |
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• | neither our partnership agreements nor any of the other agreements, contracts and arrangements between us, on the one hand, and our general partner and its affiliates, on the other, are or will be the result of arms-length negotiations; | |
• | whenever possible, our general partner limits our liability under contractual arrangements to all or a portion of our assets, with the other party thereto having no recourse against our general partner or its assets; | |
• | our partnership agreements permit our general partner to make these limitations even if we could have obtained more favorable terms if our general partner had not limited its liability; | |
• | any agreements between us and our general partner or its affiliates will not grant to our unitholders, separate and apart from us, the right to enforce the obligations of our general partner or such affiliates in favor of us; therefore, our general partner will be primarily responsible for enforcing those obligations; | |
• | our general partner may exercise its right to call for and purchase common units as provided in the partnership agreement of Ferrellgas Partners or assign that right to one of its affiliates or to us; | |
• | our partnership agreements provide that it will not constitute a breach of our general partner’s fiduciary duties to us for its affiliates to engage in activities of the type conducted by us, other than retail propane sales to end users in the continental United States in the manner engaged in by our general partner immediately prior to our initial public offering, even if these activities are in direct competition with us; | |
• | our general partner and its affiliates have no obligation to present business opportunities to us; | |
• | our general partner selects the attorneys, accountants and others who perform services for us. These persons may also perform services for our general partner and its affiliates. Our general partner is authorized to retain separate counsel for us or our unitholders, depending on the nature of the conflict that arises; and | |
• |
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• | decisions of our general partner with respect to the amount and timing of our cash expenditures, borrowings, acquisitions, issuances of additional securities and changes in reserves in any quarter may affect the amount of incentive distributions we are obligated to pay our general partner; | |
• | borrowings do not constitute a breach of any duty owed by our general partner to our unitholders even if these borrowings have the purpose or effect of directly or indirectly enabling us to make distributions to the holder of our incentive distribution rights, currently our general partner, or to hasten the expiration of the deferral period with respect to the common units held by Ferrell Companies; |
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• | we do not have any employees and rely solely on employees of our general partner and its affiliates; | |
• | under the terms of our partnership agreements, we must reimburse our general partner and its affiliates for costs incurred in managing and operating us, including costs incurred in rendering corporate staff and support services to us; | |
• | our general partner is not restricted from causing us to pay it or its affiliates for any services rendered on terms that are fair and reasonable to us or causing us to enter into additional contractual arrangements with any of such entities; | |
• | neither our partnership agreements nor any of the other agreements, contracts and arrangements between us, on the one hand, and our general partner and its affiliates, on the other, are or will be the result of arms-length negotiations; | |
• | whenever possible, our general partner limits our liability under contractual arrangements to all or a portion of our assets, with the other party thereto having no recourse against our general partner or its assets; | |
• | our partnership agreements permit our general partner to make these limitations even if we could have obtained more favorable terms if our general partner had not limited its liability; | |
• | any agreements between us and our general partner or its affiliates will not grant to our unitholders, separate and apart from us, the right to enforce the obligations of our general partner or such affiliates in favor of us; therefore, our general partner will be primarily responsible for enforcing those obligations; | |
• | our general partner may exercise its right to call for and purchase common units as provided in the partnership agreement of Ferrellgas Partners or assign that right to one of its affiliates or to us; | |
• | our partnership agreements provide that it will not constitute a breach of our general partner’s fiduciary duties to us for its affiliates to engage in activities of the type conducted by us, other than retail propane sales to end users in the continental United States in the manner engaged in by our general partner immediately prior to our initial public offering, even if these activities are in direct competition with us; |
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• | our general partner and its affiliates have no obligation to present business opportunities to us; | |
• | our general partner selects the attorneys, accountants and others who perform services for us. These persons may also perform services for our general partner and its affiliates. Our general partner is authorized to retain separate counsel for us or our unitholders, depending on the nature of the conflict that arises; and | |
• |
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ITEM 1B. | UNRESOLVED STAFF COMMENTS. |
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ITEM 2. | PROPERTIES. |
Owned | Leased | Total | Owned | Leased | Total | |||||||||||||||||||
Truck tractors | 59 | 121 | 180 | 84 | 87 | 171 | ||||||||||||||||||
Propane transport trailers | 259 | 48 | 307 | 251 | 48 | 299 | ||||||||||||||||||
Portable tank delivery trucks | 268 | 211 | 479 | 256 | 227 | 483 | ||||||||||||||||||
Portable tank exchange delivery trailers | 149 | 47 | 196 | 160 | 46 | 206 | ||||||||||||||||||
Bulk propane delivery trucks | 1,142 | 763 | 1,905 | 1,028 | 757 | 1,785 | ||||||||||||||||||
Pickup and service trucks | 1,010 | 381 | 1,391 | 961 | 345 | 1,306 | ||||||||||||||||||
Railroad tank cars | — | 98 | 98 | — | 97 | 97 |
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ITEM 3. | LEGAL PROCEEDINGS. |
ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
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ITEM 5. | MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED UNITHOLDER AND STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. |
Common Unit | Distributions | |||||||||||
Price Range | Declared | |||||||||||
High | Low | per Unit | ||||||||||
2006 | ||||||||||||
First Quarter | $ | 22.49 | $ | 20.75 | $ | 0.50 | ||||||
Second Quarter | 21.95 | 20.18 | 0.50 | |||||||||
Third Quarter | 22.49 | 21.00 | 0.50 | |||||||||
Fourth Quarter | 22.50 | 20.99 | 0.50 |
2007 | Common Unit Price Range | Distributions | ||||||||||||||||||||||
High | Low | Declared per Unit | ||||||||||||||||||||||
2007 | ||||||||||||||||||||||||
First Quarter | $ | 23.65 | $ | 21.41 | $ | 0.50 | $ | 23.65 | $ | 21.41 | $ | 0.50 | ||||||||||||
Second Quarter | 23.84 | 20.85 | 0.50 | 23.84 | 20.85 | 0.50 | ||||||||||||||||||
Third Quarter | 23.83 | 22.03 | 0.50 | 23.83 | 22.03 | 0.50 | ||||||||||||||||||
Fourth Quarter | 25.28 | 23.33 | 0.50 | 25.28 | 23.33 | 0.50 | ||||||||||||||||||
2008 | ||||||||||||||||||||||||
First Quarter | $ | 24.20 | $ | 21.37 | $ | 0.50 | ||||||||||||||||||
Second Quarter | 23.10 | 20.13 | 0.50 | |||||||||||||||||||||
Third Quarter | 22.96 | 20.36 | 0.50 | |||||||||||||||||||||
Fourth Quarter | 22.28 | 18.35 | 0.50 |
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ITEM 6. | SELECTED FINANCIAL DATA. |
Ferrellgas Partners, L.P. | ||||||||||||||||||||
Year Ended July 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
(In thousands, except per unit data) | ||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Total revenues | $ | 1,992,440 | $ | 1,895,470 | $ | 1,754,114 | $ | 1,308,386 | $ | 1,165,678 | ||||||||||
Interest expense | 87,953 | 84,235 | 91,518 | 74,467 | 63,664 | |||||||||||||||
Earnings (loss) from continuing operations before discontinued operations and cumulative effect of change in accounting principle | 34,800 | 25,009 | (15,375 | ) | 20,501 | 52,970 | ||||||||||||||
Basic and diluted earnings (loss) per common unit from continuing operations before discontinued operations and cumulative effect of change in accounting principle | $ | 0.55 | $ | 0.41 | $ | (0.41 | ) | $ | 0.30 | $ | 1.15 | |||||||||
Cash distributions declared per common unit | $ | 2.00 | $ | 2.00 | $ | 2.00 | $ | 2.00 | $ | 2.00 | ||||||||||
Balance Sheet Data at end of period: | ||||||||||||||||||||
Working capital (deficit)(1) | $ | 42,503 | $ | 27,244 | $ | 38,885 | $ | 46,137 | $ | (3,862 | ) | |||||||||
Total assets | 1,503,403 | 1,549,500 | 1,508,973 | 1,578,175 | 1,061,396 | |||||||||||||||
Long-term debt | 1,011,751 | 983,545 | 948,977 | 1,153,652 | 888,226 | |||||||||||||||
Partners’ capital | 236,657 | 265,745 | 333,678 | 202,099 | 2,919 | |||||||||||||||
Operating Data: | ||||||||||||||||||||
Propane sales volumes (in thousands of gallons) | 804,732 | 808,890 | 897,606 | 873,711 | 898,622 | |||||||||||||||
Capital expenditures : | ||||||||||||||||||||
Maintenance | $ | 16,935 | $ | 13,003 | $ | 17,259 | $ | 20,422 | $ | 14,187 | ||||||||||
Growth | 29,732 | 29,448 | 25,089 | 12,270 | 4,123 | |||||||||||||||
Technology initiative | — | 915 | 10,466 | 8,688 | 14,699 | |||||||||||||||
Tank lease buyout | — | — | — | 154,129 | ||||||||||||||||
Acquisition | 35,466 | 38,057 | 31,699 | 438,326 | 41,310 | |||||||||||||||
Total | $ | 82,133 | $ | 81,423 | $ | 84,513 | $ | 479,706 | $ | 228,448 | ||||||||||
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Ferrellgas Partners, L.P. | ||||||||||||||||||||||||||||||||||||||||
Ferrellgas, L.P. | Year Ended July 31, | |||||||||||||||||||||||||||||||||||||||
Year Ended July 31, | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | (In thousands, except per unit data) | |||||||||||||||||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,992,440 | $ | 1,895,470 | $ | 1,754,114 | $ | 1,308,386 | $ | 1,165,678 | $ | 2,290,689 | $ | 1,992,440 | $ | 1,895,470 | $ | 1,754,114 | $ | 1,308,386 | ||||||||||||||||||||
Interest expense | 64,201 | 60,537 | 67,430 | 54,242 | 45,317 | 86,712 | 87,953 | 84,235 | 91,518 | 74,467 | ||||||||||||||||||||||||||||||
Earnings from continuing operations before discontinued operations and cumulative effect of change in accounting principle | 59,427 | 49,465 | 9,128 | 41,410 | 79,598 | |||||||||||||||||||||||||||||||||||
Balance Sheet Data at end of period: | ||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | 24,689 | 34,800 | 25,009 | (15,375 | ) | 20,501 | ||||||||||||||||||||||||||||||||||
Basic and diluted earnings (loss) per common unit from continuing operations | $ | 0.39 | $ | 0.55 | $ | 0.41 | $ | (0.41 | ) | $ | 0.30 | |||||||||||||||||||||||||||||
Cash distributions declared per common unit | $ | 2.00 | $ | 2.00 | $ | 2.00 | $ | 2.00 | $ | 2.00 | ||||||||||||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||||||||||||||||||||||
Working capital(1) | $ | 44,737 | $ | 28,874 | $ | 41,078 | $ | 48,593 | $ | 7,792 | $ | 46,075 | $ | 42,503 | $ | 27,244 | $ | 38,885 | $ | 46,137 | ||||||||||||||||||||
Total assets | 1,499,951 | 1,544,051 | 1,504,271 | 1,570,990 | 1,055,691 | 1,529,231 | 1,503,403 | 1,549,500 | 1,508,973 | 1,578,175 | ||||||||||||||||||||||||||||||
Long-term debt | 741,900 | 713,316 | 678,367 | 882,662 | 668,657 | 1,034,719 | 1,011,751 | 983,545 | 948,977 | 1,153,652 | ||||||||||||||||||||||||||||||
Partners’ capital | 511,356 | 539,910 | 608,987 | 475,567 | 231,815 | 162,124 | 236,657 | 265,745 | 333,678 | 202,099 | ||||||||||||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||||||||||||||||||
Propane sales volumes (in thousands of gallons) | 804,732 | 808,890 | 897,606 | 873,711 | 898,622 | 838,847 | 891,888 | 910,755 | 1,063,107 | 994,487 | ||||||||||||||||||||||||||||||
Capital expenditures: | ||||||||||||||||||||||||||||||||||||||||
Capital expenditures : | ||||||||||||||||||||||||||||||||||||||||
Maintenance | $ | 16,935 | $ | 13,003 | $ | 17,259 | $ | 20,422 | $ | 14,187 | $ | 21,139 | $ | 16,935 | $ | 13,003 | $ | 17,259 | $ | 20,422 | ||||||||||||||||||||
Growth | 29,732 | 29,448 | 25,089 | 12,270 | 4,123 | 23,407 | 29,732 | 29,448 | 25,089 | 12,270 | ||||||||||||||||||||||||||||||
Technology initiative | — | 915 | 10,466 | 8,688 | 14,699 | — | — | 915 | 10,466 | 8,688 | ||||||||||||||||||||||||||||||
Tank lease buyout | — | — | — | 154,129 | ||||||||||||||||||||||||||||||||||||
Acquisition | 35,466 | 38,057 | 32,430 | 438,326 | 41,310 | 191 | 35,466 | 38,057 | 31,699 | 438,326 | ||||||||||||||||||||||||||||||
Total | $ | 82,133 | $ | 81,423 | $ | 85,244 | $ | 479,706 | $ | 228,448 | $ | 44,737 | $ | 82,133 | $ | 81,423 | $ | 84,513 | $ | 479,706 | ||||||||||||||||||||
(1) | Working capital is the sum of current assets less current liabilities. |
Ferrellgas, L.P. | ||||||||||||||||||||
Year Ended July 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(In thousands, except per unit data) | ||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Total revenues | $ | 2,290,689 | $ | 1,992,440 | $ | 1,895,470 | $ | 1,754,114 | $ | 1,308,386 | ||||||||||
Interest expense | 63,001 | 64,201 | 60,537 | 67,430 | 54,242 | |||||||||||||||
Earnings from continuing operations | 49,232 | 59,427 | 49,465 | 9,128 | 41,410 | |||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Working capital(1) | $ | 48,397 | $ | 44,737 | $ | 28,874 | $ | 41,078 | $ | 48,593 | ||||||||||
Total assets | 1,526,621 | 1,499,951 | 1,544,051 | 1,504,271 | 1,570,990 | |||||||||||||||
Long-term debt | 765,248 | 741,900 | 713,316 | 678,367 | 882,662 | |||||||||||||||
Partners’ capital | 436,269 | 511,356 | 539,910 | 608,987 | 475,567 | |||||||||||||||
Operating Data: | ||||||||||||||||||||
Propane sales volumes (in thousands of gallons) | 838,847 | 891,888 | 910,755 | 1,063,107 | 994,487 | |||||||||||||||
Capital expenditures: | ||||||||||||||||||||
Maintenance | $ | 21,139 | $ | 16,935 | $ | 13,003 | $ | 17,259 | $ | 20,422 | ||||||||||
Growth | 23,407 | 29,732 | 29,448 | 25,089 | 12,270 | |||||||||||||||
Technology initiative | — | — | 915 | 10,466 | 8,688 | |||||||||||||||
Acquisition | 191 | 35,466 | 38,057 | 32,430 | 438,326 | |||||||||||||||
Total | $ | 44,737 | $ | 82,133 | $ | 81,423 | $ | 85,244 | $ | 479,706 | ||||||||||
(1) | Working capital is the sum of current assets less current liabilities. |
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• | maintenance capital expenditures, which include capitalized expenditures for betterment and replacement of property, plant and equipment; | |
• | growth capital expenditures, which include expenditures for purchases of both bulk and portable propane tanks and other equipment to facilitate expansion of our customer base and operating capacity; | |
• | technology initiative capital expenditures, which include expenditures for purchases of computer hardware and software | |
• | acquisition capital expenditures, which include expenditures related to the acquisition of retail distribution propane operations; acquisition capital expenditures represent the total cost of acquisitions less working capital acquired. |
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ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
• | because Ferrellgas Partners has issued $268.0 million in aggregate principal amount of 83/4% senior notes due fiscal 2012, the two partnerships incur different amounts of interest expense on their outstanding indebtedness; see the statements of earnings in their respective consolidated financial statements and | |
• | Ferrellgas Partners issued common units in several transactions during |
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• | maximize operating efficiencies through utilization of our technology platform; | |
• | capitalize on our national presence and economies of scale; | |
• | expand our operations through disciplined acquisitions and internal growth; and | |
• | align employee |
• | ||
• |
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• | ||
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• | whether the operating partnership will have sufficient funds to meet its obligations, including its obligations under its debt securities, and to enable it to distribute to Ferrellgas Partners sufficient funds to permit Ferrellgas Partners to meet its obligations with respect to its existing debt and equity securities; | |
• | whether Ferrellgas Partners and the operating partnership will continue to meet all of the quarterly financial tests required by the agreements governing their indebtedness; and | |
• |
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Increase | Percentage | |||||||||||||||
2007 | 2006 | (Decrease) | Change | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Propane sales volumes (gallons) | 804,732 | 808,890 | (4,158 | ) | (0.5 | )% | ||||||||||
Propane and other gas liquids sales | $ | 1,757,423 | $ | 1,697,940 | 59,483 | 3.5 | % | |||||||||
Gross margin from propane and other gas liquids sales(a) | 610,254 | 588,763 | 21,491 | 3.7 | % | |||||||||||
Operating income | 126,768 | 111,222 | 15,546 | 14.0 | % | |||||||||||
Interest expense | 87,953 | 84,235 | 3,718 | 4.4 | % |
Favorable | ||||||||||||||||
(Unfavorable) | ||||||||||||||||
Fiscal Year Ended July 31, | 2008 | 2007 | Variance | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Propane sales volumes (gallons): | ||||||||||||||||
Retail — Sales to End Users | 656,832 | 702,716 | (45,884 | ) | (7 | )% | ||||||||||
Wholesale — Sales to Resellers | 182,015 | 189,172 | (7,157 | ) | (4 | )% | ||||||||||
838,847 | 891,888 | (53,041 | ) | (6 | )% | |||||||||||
Revenues — | ||||||||||||||||
Propane and other gas liquids sales: | ||||||||||||||||
Retail — Sales to End Users | $ | 1,451,054 | $ | 1,279,975 | $ | 171,079 | 13 | % | ||||||||
Wholesale — Sales to Resellers | 455,794 | 396,185 | 59,609 | 15 | % | |||||||||||
Other Gas Sales | 148,433 | 81,263 | 67,170 | 83 | % | |||||||||||
$ | 2,055,281 | $ | 1,757,423 | $ | 297,858 | 17 | % | |||||||||
Gross margin — | ||||||||||||||||
Propane and other gas liquids sales:(a) | ||||||||||||||||
Retail — Sales to End Users | $ | 427,701 | $ | 482,878 | $ | (55,177 | ) | (11 | )% | |||||||
Wholesale — Sales to Resellers | 132,858 | 133,109 | (251 | ) | — | % | ||||||||||
Other Gas Sales | 2,804 | (5,733 | ) | 8,537 | NM | |||||||||||
$ | 563,363 | $ | 610,254 | $ | (46,891 | ) | (8 | )% | ||||||||
Operating income | $ | 110,941 | $ | 126,768 | $ | (15,827 | ) | (12 | )% | |||||||
Interest expense | $ | 86,712 | $ | 87,953 | $ | 1,241 | 1 | % | ||||||||
Interest expense — operating partnership | $ | 63,001 | $ | 64,201 | $ | 1,200 | 2 | % |
(a) | Gross margin from propane and other gas liquids sales represents |
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• | our assumption that interest rates will remain relatively stable in fiscal 2009; | |
• | our assumption that weather will remain close to normal during fiscal 2009; and | |
• | our assumption that propane sales volumes will increase in fiscal 2009. |
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Favorable | ||||||||||||||||
(Unfavorable) | ||||||||||||||||
Fiscal Year Ended July 31, | 2007 | 2006 | Variance | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Propane sales volumes (gallons): | ||||||||||||||||
Retail — Sales to End Users | 702,716 | 707,896 | (5,180 | ) | (1 | )% | ||||||||||
Wholesale — Sales to Resellers | 189,172 | 202,859 | (13,687 | ) | (7 | )% | ||||||||||
891,888 | 910,755 | (18,867 | ) | (2 | )% | |||||||||||
Revenues — | ||||||||||||||||
Propane and other gas liquids sales: | ||||||||||||||||
Retail — Sales to End Users | $ | 1,279,975 | $ | 1,243,650 | $ | 36,325 | 3 | % | ||||||||
Wholesale — Sales to Resellers | 396,185 | 405,553 | (9,368 | ) | (2 | )% | ||||||||||
Other Gas Sales | 81,263 | 48,737 | 32,526 | 67 | % | |||||||||||
$ | 1,757,423 | $ | 1,697,940 | $ | 59,483 | 4 | % | |||||||||
Gross margin — | ||||||||||||||||
Propane and other gas liquids sales:(a) | ||||||||||||||||
Retail — Sales to End Users | $ | 482,878 | $ | 458,736 | $ | 24,142 | 5 | % | ||||||||
Wholesale — Sales to Resellers | 133,109 | 129,956 | 3,153 | 2 | % | |||||||||||
Other Gas Sales | (5,733 | ) | 71 | (5,804 | ) | NM | ||||||||||
$ | 610,254 | $ | 588,763 | $ | 21,491 | 4 | % | |||||||||
Operating income | $ | 126,768 | $ | 111,222 | $ | 15,546 | 14 | % | ||||||||
Interest expense | $ | 87,953 | $ | 84,235 | $ | (3,718 | ) | (4 | )% | |||||||
Interest expense — operating partnership | $ | 64,201 | $ | 60,537 | $ | (3,664 | ) | (6 | )% |
(a) | Gross margin from propane and other gas liquids sales represents “Propane and other gas liquids sales” less “Cost of product sold — propane and other gas liquids sales.” |
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Increase | Percentage | |||||||||||||||
2006 | 2005 | (Decrease) | Change | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Propane sales volumes (gallons) | 808,890 | 897,606 | (88,716 | ) | (9.9 | )% | ||||||||||
Propane and other gas liquids sales | $ | 1,697,940 | $ | 1,592,325 | 105,615 | 6.6 | % | |||||||||
Gross margin from propane and other gas liquids sales(a) | 588,763 | 540,320 | 48,443 | 9.0 | % | |||||||||||
Operating income | 111,222 | 75,788 | 35,434 | 46.8 | % | |||||||||||
Interest expense | 84,235 | 91,518 | (7,283 | ) | (8.0 | )% |
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For the Year Ended | ||||
July 31, 2005 | ||||
(Amounts in thousands) | ||||
Total revenues | $ | 89,339 | ||
Cost of product sold-propane and gas liquids sales | 77,407 | |||
Operating expense | 2,506 | |||
Depreciation and amortization expense | 1,189 | |||
Equipment lease expense | 22 | |||
Loss on disposal of assets and other | (36 | ) | ||
Earnings before income taxes, minority interest and discontinued operations | 8,251 | |||
Minority interest | 1,063 | |||
Gain on sale of discontinued operations | 97,001 | |||
Earnings from discontinued operations, net of minority interest | $ | 104,189 | ||
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• | significantly warmer than normal winter temperatures; | |
• | a continued volatile energy commodity cost environment; | |
• | an unexpected downturn in business operations; or | |
• | a general economic downturn in the United States. |
• | a shelf registration statement for the periodic sale of common units, debt securitiesand/or other |
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• | an “acquisition” shelf registration statement for the periodic sale of up to $250.0 million of common units to fund | |
• | a shelf registration statement for the periodic sale of up to $200.0 million of common units in connection with the Ferrellgas Partners’ direct purchase and distribution reinvestment |
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• | a base rate, which is defined as the higher of the federal funds rate plus 0.50% or Bank of America’s prime rate (as of July 31, |
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• | the Eurodollar Rate plus a margin varying from 1.50% to 2.50% (as of July 31, |
• | a significant increase in the wholesale cost of propane; | |
• | a significant delay in the collections of accounts receivable; |
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• | increased volatility in energy commodity prices related to risk management activities; | |
• | increased liquidity requirements imposed by insurance providers; | |
• | a significant downgrade in our credit | |
rating leading to decreased trade credit; or | ||
• | a significant acquisition. |
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Common Unit | Distributions Paid | Common Unit | Distributions Paid | |||||||||||||
Ownership at | For the Year Ended | Ownership at | During the Year Ended | |||||||||||||
July 31, 2007 | July 31, 2007 | July 31, 2008 | July 31, 2008 | |||||||||||||
Ferrell Companies(1) | 20,080.8 | $ | 40,162 | 20,081 | $ | 40,160 | ||||||||||
FCI Trading Corp.(2) | 195.7 | 391 | 196 | $ | 392 | |||||||||||
Ferrell Propane, Inc.(3) | 51.2 | 102 | 51 | $ | 104 | |||||||||||
James E. Ferrell(4) | 4,292.0 | 8,584 | 4,333 | $ | 8,616 |
(1) | Ferrell Companies is the sole shareholder of our general partner. | |
(2) | FCI Trading Corp. is an affiliate of the general partner and is wholly-owned by Ferrell Companies. | |
(3) | Ferrell Propane, Inc. is wholly-owned by our general partner. | |
(4) | James E. Ferrell |
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4748
Payment or Settlement Due by Fiscal Year | Payment or Settlement Due by Fiscal Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | Thereafter | Total | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, including current portion(1) | $ | 92,932 | $ | 54,413 | $ | 194,167 | $ | 82,995 | $ | 268,955 | $ | 321,601 | $ | 1,015,063 | $ | 54,397 | $ | 169,145 | $ | 82,995 | $ | 268,915 | $ | 360 | $ | 461,511 | $ | 1,037,323 | ||||||||||||||||||||||||||||
Capital lease obligation | 25 | 25 | — | — | — | — | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate interest obligations(2) | 66,374 | 60,497 | 55,222 | 48,995 | 46,023 | 42,749 | 319,860 | 58,489 | 55,125 | 48,905 | 45,934 | 22,346 | 22,827 | 253,626 | ||||||||||||||||||||||||||||||||||||||||||
Operating lease obligations(3) | 34,107 | 23,378 | 16,110 | 11,076 | 5,354 | 16,262 | 106,287 | 27,462 | 17,314 | 12,337 | 6,307 | 3,964 | 12,790 | 80,174 | ||||||||||||||||||||||||||||||||||||||||||
Operating lease buyouts(4) | 2,478 | 11,498 | 3,166 | 4,853 | 2,533 | 859 | 25,387 | 11,730 | 3,443 | 4,850 | 2,779 | 357 | 1,185 | 24,344 | ||||||||||||||||||||||||||||||||||||||||||
Purchase obligations:(5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product purchase commitments:(6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated payment obligations | 915,760 | 133,543 | — | — | — | — | 1,049,303 | 1,451,033 | 60,784 | — | — | — | — | 1,511,817 | ||||||||||||||||||||||||||||||||||||||||||
Employment agreements(7) | — | — | — | — | — | 1,088 | 1,088 | — | — | — | — | — | 1,088 | 1,088 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,111,676 | $ | 283,354 | $ | 268,665 | $ | 147,919 | $ | 322,865 | $ | 382,559 | $ | 2,517,038 | $ | 1,603,111 | $ | 305,811 | $ | 149,087 | $ | 323,935 | $ | 27,027 | $ | 499,401 | $ | 2,908,372 | ||||||||||||||||||||||||||||
Underlying product purchase volume commitments (in gallons) | 744,870 | 118,681 | — | — | — | — | 863,551 | 833,395 | 39,060 | — | — | — | — | 872,455 |
(1) | We have long and short-term payment obligations under agreements such as our senior notes and credit facilities. Amounts shown in the table represent our scheduled future maturities of long-term debt (including current maturities thereof) for the periods indicated. For additional information regarding our debt obligations, please see “— Liquidity and Capital Resources — Financing Activities.” | |
(2) | Fixed rate interest obligations represent the amount of interest due on fixed rate long-term debt. These amounts do not include interest on our | |
(3) | We lease certain property, plant and equipment under noncancelable and cancelable operating leases. Amounts shown in the table represent minimum lease payment obligations under our third-party operating leases for the periods indicated. | |
(4) | Operating lease buyouts represent the maximum amount we would pay if we were to exercise our right to buyout the assets at the end of their lease term. Historically, we have been successful in renewing certain leases that are subject to buyouts. However, there is no assurance we will be successful in the future. | |
(5) | We define a purchase obligation as an agreement to purchase goods or services that is enforceable and legally binding (unconditional) on us that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transactions. | |
(6) | We have long and short-term product purchase obligations for propane and energy commodities with third-party suppliers. These purchase obligations are entered into at either variable or fixed prices. The purchase prices that we are obligated to pay under variable price contracts approximate market prices at the time we take delivery of the volumes. Our estimated future variable price contract payment obligations are based on the July 31, |
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payment obligations may vary depending on market prices at the time of delivery. The purchase prices that we are obligated to pay under fixed price contracts are established at the inception of the contract. Our estimated future fixed price contract payment obligations are based on the contracted fixed price under each commodity contract. Quantities shown in the table represent our volume commitments and estimated payment obligations under these contracts for the periods indicated. | ||
(7) | We have an incentive bonus payable to |
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Payment or Settlement Due by Fiscal Year | Payment or Settlement Due by Fiscal Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | Thereafter | Total | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, including current portion(1) | $ | 92,932 | $ | 54,413 | $ | 194,167 | $ | 82,995 | $ | 955 | $ | 321,601 | $ | 747,063 | $ | 54,397 | $ | 169,145 | $ | 82,995 | $ | 915 | $ | 360 | $ | 461,511 | $ | 769,323 | ||||||||||||||||||||||||||||
Fixed rate interest obligations(2) | 42,924 | 37,047 | 31,772 | 25,545 | 22,573 | 42,749 | 202,610 | 35,039 | 31,675 | 25,455 | 22,484 | 22,346 | 22,827 | 159,826 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 135,856 | $ | 91,460 | $ | 225,939 | $ | 108,540 | $ | 23,528 | $ | 364,350 | $ | 949,673 | $ | 89,436 | $ | 200,820 | $ | 108,450 | $ | 23,399 | $ | 22,706 | $ | 484,338 | $ | 929,149 | ||||||||||||||||||||||||||||
(1) | The operating partnership has long and short-term payment obligations under agreements such as the operating partnership’s senior notes and credit facilities. Amounts shown in the table represent the operating partnership’s scheduled future maturities of long-term debt (including current maturities thereof) for the periods indicated. For additional information regarding the operating partnership’s debt obligations, please see “— Liquidity and Capital Resources — Financing Activities.” | |
(2) | Fixed rate interest obligations represent the amount of interest due on fixed rate long-term debt. These amounts do not include interest on our |
• | made guarantees; | |
• | a retained or a contingent interest in transferred assets; | |
• | an obligation under derivative instruments classified as equity; or | |
• | any obligation arising out of a material variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the company, or that engages in leasing, hedging or research and development arrangements with the company. |
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Title of Guidance | Effective Date | |
SFAS No. 157, “Fair Value Measurements” | Fiscal years beginning after November 15, 2007 | |
SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” | Fiscal years beginning after November 15, 2007 | |
Fiscal years beginning after December 15, 2008 | ||
SFAS No. 160, “Noncontrolling Interests in | Fiscal years December 15, | |
Fiscal years beginning after November 15, 2008 | ||
EITF No. 07-4, “Application of the Two-Class Method Under FASB Statement No. 128, Earnings Per Share, to Master Limited Partnerships” | Fiscal years beginning after December 15, |
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• | Our stock-based awards plan grants stock awards out of Ferrell Companies. Ferrell Companies is not a publicly-traded company and management does not believe it | |
• | Due to the limited number of employees eligible to participate in our unit and stock-based compensation plans, management believes we have only one group of employees. If a determination were made that we have multiple groups of employees, that determination could significantly change the expected term and forfeiture rate assigned to our unit and stock-based awards. | |
• | ||
• | We utilize historical forfeiture rates to estimate the expected forfeiture rates on our unit and stock-based awards grant dates. If actual forfeiture rates were to differ significantly from our estimates, it could result in significant differences between actual and reported compensation expense for our unit and stock-based awards. |
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ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. |
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ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. |
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ITEM 9B. | OTHER INFORMATION. |
ITEM 10. | DIRECTORS, |
Executive | ||||||||||||||||||||||||||||
Director | Officer | Director | Executive | |||||||||||||||||||||||||
Name | Age | Since | Since | Position | Age | Since | Officer Since | Position | ||||||||||||||||||||
James E. Ferrell | 67 | 1984 | 2000 | Chairman and Chief Executive Officer | 68 | 1984 | 2000 | Chairman and Chief Executive Officer | ||||||||||||||||||||
Stephen L. Wambold | 39 | N/a | 2005 | President and Chief Operating Officer | 40 | N/A | 2005 | President and Chief Operating Officer | ||||||||||||||||||||
Kevin T. Kelly | 42 | N/a | 1998 | Senior Vice President and Chief Financial Officer | ||||||||||||||||||||||||
J. Ryan VanWinkle | 35 | N/A | 2008 | Chief Financial Officer, Vice President, Corporate Development and Treasurer | ||||||||||||||||||||||||
Jennifer A. Boren | 39 | N/A | 2008 | Vice President, Information Technology | ||||||||||||||||||||||||
Tod D. Brown | 44 | N/a | 2006 | Vice President, Blue Rhino | 45 | N/A | 2006 | Senior Vice President, Sales and Marketing and President, Blue Rhino | ||||||||||||||||||||
Eugene D. Caresia | 43 | N/a | 2006 | Vice President, Human Resources | 44 | N/A | 2006 | Vice President, Human Resources | ||||||||||||||||||||
Brian J. Kline | 43 | N/a | 2006 | Vice President, Corporate Development | ||||||||||||||||||||||||
George L. Koloroutis | 47 | N/A | 2006 | Vice President, Ferrell North America | ||||||||||||||||||||||||
William K. Hoskins | 72 | 2003 | N/a | Director | 73 | 2003 | N/A | Director | ||||||||||||||||||||
A. Andrew Levison | 51 | 1994 | N/a | Director | 52 | 1994 | N/A | Director | ||||||||||||||||||||
John R. Lowden | 50 | 2003 | N/a | Director | 51 | 2003 | N/A | Director | ||||||||||||||||||||
Michael F. Morrissey | 65 | 1999 | N/a | Director | 66 | 1999 | N/A | Director | ||||||||||||||||||||
Billy D. Prim | 51 | 2004 | 2004 | Director | 52 | 2004 | N/A | Director | ||||||||||||||||||||
Elizabeth T. Solberg | 68 | 1998 | N/a | Director | 69 | 1998 | N/A | Director |
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• | distributions on its combined approximate 2% general partner interest in Ferrellgas Partners and the operating partnership; and |
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• | reimbursement for: |
• | all direct and indirect costs and expenses incurred on our behalf; | |
• | all selling, general and administrative expenses incurred by our general partner on our behalf; and | |
• | all other expenses necessary or appropriate to the conduct of our business and allocable to us. |
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ITEM 11. | EXECUTIVE COMPENSATION. |
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• | companies in our industry or related industries (oil and gas, gas utilities, master limited partnerships); | |
• | companies identified as our peer group of competitors; |
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• | companies with similar total sales; | |
• | companies with similar net income; and | |
• | companies with similar market value. |
• | WPS Resources Corp. | |
• | Enbridge Energy Partners | |
• | Energy Transfer Partners | |
• | UGI Corp. | |
• | Sunoco Logistics Partners | |
• | New Jersey Resources Corp. | |
• | Amerigas Partners | |
• | Piedmont Natural Gas Co. | |
• | Suburban Propane Partners | |
• | Laclede Group Inc. | |
• | WGL Holdings Inc. | |
• | Star Gas Partners | |
• | Inergy L.P. | |
• | South Jersey Industries Inc. | |
• | Alliance Resource Partners | |
• | Oneok Partners |
• | base salary; | |
• | discretionary bonus; | |
• | non-equity incentive plan; | |
• | stock and unit option plans; | |
• | employee stock ownership plan; | |
• | deferred compensation plans; and | |
• | employment andchange-in-control agreements. |
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% of Salary | ||||
Named Executive Officer | Incentive Target | |||
James E. Ferrell | ||||
Stephen L. Wambold | 100% | |||
J. Ryan VanWinkle | ||||
Kevin T. Kelly | 55% | |||
Tod D. Brown | ||||
George L. Koloroutis | ||||
Percent of Planned | Incentive Target | |||
OCF achieved | Potential | |||
85% | 12.5 | % | ||
90% | 25.0 | % | ||
95% | 50.0 | % | ||
100% | 100.0 | % | ||
105% | 125.0 | % | ||
110% and above | 150.0 | % |
Percent of Planned | Incentive Target | |||
OCF achieved | Potential | |||
95% | 50 | % | ||
100% | 100 | % | ||
110% | 125 | % | ||
120% | 150 | % | ||
130% | 175 | % | ||
140% and above | 225 | % |
Percent of Planned | Incentive Target | |||
Incentive OCF Achieved | Potential | |||
85% | 12.5 | % | ||
90% | 25.0 | % | ||
95% | 50.0 | % | ||
100% | 100.0 | % | ||
105% | 125.0 | % | ||
110% and above | 150.0 | % |
6465
(In thousands) | ||||||||
(In thousands) | ||||||||
Net Earnings | $ | 34,800 | ||||||
Net earnings | $ | 24,689 | ||||||
Add: | ||||||||
Depreciation & Amortization expense | 87,383 | |||||||
Depreciation & amortization expense | 85,521 | |||||||
Interest expense & income | 84,808 | 85,673 | ||||||
Employee Stock Ownership Plan charge | 11,225 | |||||||
Employee stock ownership plan compensation charge | 12,413 | |||||||
Loss on disposal of assets and other | 10,822 | 11,250 | ||||||
Unit and stock based compensation charge | 889 | 1,816 | ||||||
Income tax expense | 6,560 | 82 | ||||||
Minority interest | 600 | 497 | ||||||
Operating Cash Flow (OCF) | $ | 237,087 | ||||||
Operating cash flow | 221,941 | |||||||
Incentive expense | 2,948 | |||||||
Incentive OCF | $ | 224,889 | ||||||
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Recommended Range | ||||
Executive Position Description | of Options | |||
Chairman and Chief Executive Officer | 500,000 | |||
President | 250,000 | |||
Executive Officers | 125,000 |
Number of Completed | ||||
Years of Service | Vested Percent | |||
Less than 3 years | 0 | % | ||
3 years | 20 | % | ||
4 years | 40 | % | ||
5 years | 60 | % | ||
6 years | 80 | % | ||
7 years or more | 100 | % |
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Non-Equity | (2) | (1) | Non-Equity | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) | Incentive Plan | All Other | Option | Incentive Plan | All Other | |||||||||||||||||||||||||||||||||||||||||||||||||||
Name and | Salary | Bonus | Option Awards | Compensation | Compensation | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Principal Position | Year | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||||||||||||||||||
Salary | Bonus | Awards | Compensation | Compensation | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Principal Position | Year | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||||||||||||||||||
James E. Ferrell | 2007 | 648,775 | (3) | — | 114,417 | — | 60,773 | 823,965 | 2008 | 810,448 | (3) | — | 85,752 | — | 5,500 | 901,700 | ||||||||||||||||||||||||||||||||||||||||
Chairman and Chief | 2007 | 648,775 | (3) | — | 114,417 | — | 60,773 | 823,965 | ||||||||||||||||||||||||||||||||||||||||||||||||
Executive Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
J. Ryan VanWinkle | 2008 | 227,492 | 100,000 | 117,889 | — | 27,826 | 473,207 | |||||||||||||||||||||||||||||||||||||||||||||||||
Chief Financial Officer, Vice President, Corporate Development and Treasurer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kevin T. Kelly(4) | 2008 | 433,083 | — | 288,503 | — | 28,025 | 749,611 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Vice President and | 2007 | 332,929 | 107,875 | 74,310 | 92,125 | 27,999 | 635,238 | |||||||||||||||||||||||||||||||||||||||||||||||||
Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stephen L. Wambold | 2007 | 407,115 | 150,000 | 307,467 | 150,000 | 19,282 | 1,033,864 | 2008 | 491,685 | 300,000 | 424,742 | — | 42,159 | 1,258,586 | ||||||||||||||||||||||||||||||||||||||||||
President and Chief | 2007 | 407,115 | 150,000 | 307,467 | 150,000 | 19,282 | 1,033,864 | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kevin T. Kelly | 2007 | 332,929 | 107,875 | 74,310 | 92,125 | 27,999 | 635,238 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Vice President and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tod D. Brown | 2008 | 242,115 | 125,000 | 306,500 | — | 37,837 | 711,452 | |||||||||||||||||||||||||||||||||||||||||||||||||
Senior Vice President, | 2007 | 215,446 | 50,500 | 116,095 | 49,500 | 22,982 | 454,523 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sales and Marketing and President, Blue Rhino | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
George L. Koloroutis | 2007 | 226,253 | 16,113 | 73,855 | 233,888 | 65,035 | 615,144 | 2008 | 248,426 | 100,000 | 244,394 | — | 30,565 | 623,385 | ||||||||||||||||||||||||||||||||||||||||||
Vice President, Ferrell | 2007 | 226,253 | 16,113 | 73,855 | 233,888 | 65,035 | 615,144 | |||||||||||||||||||||||||||||||||||||||||||||||||
North America | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tod D. Brown | 2007 | 215,446 | 50,500 | 116,095 | 49,500 | 22,982 | 454,523 | |||||||||||||||||||||||||||||||||||||||||||||||||
Vice President, Blue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rhino | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brian J. Kline | 2007 | 223,759 | 75,000 | 73,431 | 45,000 | 19,895 | 437,085 | |||||||||||||||||||||||||||||||||||||||||||||||||
Vice President, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Development |
(1) | See Note | |
(2) | All Other Compensation consisted of the following: |
ESOP | 401(k) | Relocation | Total All Other | ESOP | 401(k) Plan | Relocation | Total All Other | |||||||||||||||||||||||||||||||||||||
Contributions | Plan Match | SSP Match | Reimbursements | Compensation | Allocations | Match | SSP Match | Reimbursements | Compensation | |||||||||||||||||||||||||||||||||||
Name | ($) | ($) | ($) | ($) | ($) | Year | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||
James E. Ferrell | — | 5,417 | 55,356 | — | 60,773 | 2008 | — | 5,500 | — | — | 5,500 | |||||||||||||||||||||||||||||||||
2007 | — | 5,417 | 55,356 | — | 60,773 | |||||||||||||||||||||||||||||||||||||||
J. Ryan VanWinkle | 2008 | 18,047 | 6,112 | 3,667 | — | 27,826 | ||||||||||||||||||||||||||||||||||||||
Kevin T. Kelly | 2008 | 26,975 | 1,050 | — | — | 28,025 | ||||||||||||||||||||||||||||||||||||||
2007 | 9,782 | 6,717 | 11,500 | — | 27,999 | |||||||||||||||||||||||||||||||||||||||
Stephen L. Wambold | 9,782 | 7,500 | 2,000 | — | 19,282 | 2008 | 25,075 | 9,250 | 7,834 | — | 42,159 | |||||||||||||||||||||||||||||||||
Kevin T. Kelly | 9,782 | 6,717 | 11,500 | — | 27,999 | |||||||||||||||||||||||||||||||||||||||
2007 | 9,782 | 7,500 | 2,000 | — | 19,282 | |||||||||||||||||||||||||||||||||||||||
Tod D. Brown | 2008 | 22,666 | 8,063 | 7,108 | — | 37,837 | ||||||||||||||||||||||||||||||||||||||
2007 | 9,197 | 7,619 | 6,166 | — | 22,982 | |||||||||||||||||||||||||||||||||||||||
George L. Koloroutis | 9,613 | 2,981 | 4,025 | 48,416 | 65,035 | 2008 | 25,669 | 3,646 | 1,250 | — | 30,565 | |||||||||||||||||||||||||||||||||
Tod D. Brown | 9,197 | 7,619 | 6,166 | — | 22,982 | |||||||||||||||||||||||||||||||||||||||
Brian J. Kline | 9,367 | 7,281 | 3,247 | — | 19,895 | |||||||||||||||||||||||||||||||||||||||
2007 | 9,613 | 2,981 | 4,025 | 48,416 | 65,035 |
(3) | Included in this amount is $120,000 of compensation for | |
(4) | Kevin T. Kelly resigned from his position as Senior Vice President and Chief Financial Officer effective March 28, 2008. |
6869
All Other | ||||||||||||||||
Option | ||||||||||||||||
Awards: | ||||||||||||||||
Number of | Exercise or | |||||||||||||||
Securities | Base Price of | |||||||||||||||
Underlying | Option | Grant Date Fair | ||||||||||||||
Grant | Options | Awards | Value of Award | |||||||||||||
Name | Date | (#) | ($/Sh) | ($) | ||||||||||||
Stephen L. Wambold | (1)8/1/2006 | 200,000 | 14.87 | 496,000 | ||||||||||||
Tod D. Brown | (1)8/1/2006 | 46,000 | 14.87 | 114,080 | ||||||||||||
(1)2/1/2007 | 50,000 | 15.04 | 179,500 | |||||||||||||
Brian J. Kline | (1)8/1/2006 | 50,000 | 14.87 | 124,000 | ||||||||||||
George L. Koloroutis | (1)8/1/2006 | 55,000 | 14.87 | 136,400 |
All Other | ||||||||||||||||
Option | ||||||||||||||||
Awards: | ||||||||||||||||
Number of | Exercise or | |||||||||||||||
Securities | Base Price | |||||||||||||||
Underlying | of Option | Grant Date Fair | ||||||||||||||
Grant | Options | Awards | Value of Award | |||||||||||||
Name | Date | (#) | ($/Share) | ($) | ||||||||||||
J. Ryan VanWinkle (1) | 9/1/2007 | 25,000 | 16.60 | 87,250 | ||||||||||||
(1) | 3/1/2008 | 100,000 | 17.01 | 305,516 | ||||||||||||
Kevin T. Kelly (1) | 9/1/2007 | 150,000 | 16.60 | 523,500 | ||||||||||||
Stephen L. Wambold (1) | 9/1/2007 | 150,000 | 16.60 | 523,500 | ||||||||||||
Tod D. Brown (1) | 9/1/2007 | 125,000 | 16.60 | 436,250 | ||||||||||||
George L. Koloroutis (1) | 9/1/2007 | 125,000 | 16.60 | 436,250 |
(1) | Grant vests ratably over five years and expires in ten years. |
6970
Option Awards | ||||||||||||||||||||||||||||||||
Option Awards | Number of | Number of | ||||||||||||||||||||||||||||||
Number of | Number of | Securities | Securities | |||||||||||||||||||||||||||||
Securities | Securities | Underlying | Underlying | |||||||||||||||||||||||||||||
Underlying | Underlying | Unexercised | Unexercised | Option | ||||||||||||||||||||||||||||
Unexercised Options | Unexercised Options | Option Exercise | Option | Options | Options | Exercise | Option | |||||||||||||||||||||||||
Name | (#) Exercisable | (#) Unexercisable | Price | Expiration Date | (#) Exercisable | (#) Unexercisable | Price ($) | Expiration Date | ||||||||||||||||||||||||
James E. Ferrell | 0 | 750,000 | 4.28 | 12/15/2015 | 750,000 | — | 4.28 | 12/15/2015 | ||||||||||||||||||||||||
0 | 200,000 | 12.80 | 8/15/2015 | 200,000 | — | 12.80 | 8/15/2015 | |||||||||||||||||||||||||
Stephen L. Wambold | 0 | 17,500 | 4.10 | 12/2/2013 | ||||||||||||||||||||||||||||
J. Ryan VanWinkle | — | 10,000 | 8.02 | 3/12/2018 | ||||||||||||||||||||||||||||
0 | 5,000 | 8.02 | 1/31/2018 | — | 7,500 | 11.78 | 9/15/2019 | |||||||||||||||||||||||||
0 | 52,500 | 11.78 | 5/1/2019 | — | 10,000 | 12.80 | 8/15/2015 | |||||||||||||||||||||||||
0 | 131,250 | 12.80 | 8/15/2015 | — | 25,000 | 16.60 | 9/1/2017 | |||||||||||||||||||||||||
0 | 200,000 | 14.87 | 9/15/2016 | — | 100,000 | 17.01 | 3/1/2018 | |||||||||||||||||||||||||
Kevin T. Kelly | 0 | 150,000 | 4.10 | 8/19/2013 | 97,500 | 52,500 | 4.10 | 8/19/2013 | ||||||||||||||||||||||||
0 | 65,000 | 4.12 | 5/1/2015 | 6,500 | 3,500 | 4.75 | 7/31/2014 | |||||||||||||||||||||||||
0 | 25,000 | 4.28 | 12/15/2015 | 35,750 | 29,250 | 4.12 | 5/1/2015 | |||||||||||||||||||||||||
0 | 10,000 | 4.75 | 7/31/2014 | 11,250 | 13,750 | 4.28 | 12/15/2015 | |||||||||||||||||||||||||
0 | 112,500 | 12.80 | 8/15/2015 | 52,500 | 60,000 | 12.80 | 8/15/2015 | |||||||||||||||||||||||||
Tod D. Brown | 0 | 4,000 | 11.78 | 9/15/2014 | ||||||||||||||||||||||||||||
— | 150,000 | 16.60 | 9/1/2017 | |||||||||||||||||||||||||||||
Stephen L. Wambold | 11,375 | 6,125 | 4.10 | 12/2/2013 | ||||||||||||||||||||||||||||
0 | 10,000 | 12.80 | 8/15/2015 | 1,250 | 3,750 | 8.02 | 1/31/2018 | |||||||||||||||||||||||||
0 | 15,000 | 14.04 | 4/15/2016 | 10,500 | 42,000 | 11.78 | 5/1/2019 | |||||||||||||||||||||||||
0 | 46,000 | 14.87 | 9/15/2016 | 56,250 | 75,000 | 12.80 | 8/15/2015 | |||||||||||||||||||||||||
0 | 50,000 | 15.04 | 2/1/2017 | 40,000 | 160,000 | 14.87 | 9/15/2016 | |||||||||||||||||||||||||
Brian J. Kline | 20,625 | 54,375 | 4.10 | 8/19/2013 | ||||||||||||||||||||||||||||
— | 150,000 | 16.60 | 9/1/2017 | |||||||||||||||||||||||||||||
Tod D. Brown | 2,400 | 1,600 | 11.78 | 9/15/2014 | ||||||||||||||||||||||||||||
4,000 | 6,000 | 12.80 | 8/15/2015 | |||||||||||||||||||||||||||||
6,000 | 9,000 | 14.04 | 4/15/2016 | |||||||||||||||||||||||||||||
1,125 | 3,875 | 4.75 | 7/31/2014 | 9,200 | 36,800 | 14.87 | 9/15/2016 | |||||||||||||||||||||||||
2,000 | 18,000 | 12.80 | 8/15/2015 | 10,000 | 40,000 | 15.04 | 2/1/2017 | |||||||||||||||||||||||||
0 | 50,000 | 14.87 | 9/15/2016 | — | 125,000 | 16.60 | 9/1/2017 | |||||||||||||||||||||||||
George L. Koloroutis | 9,625 | 25,375 | 4.10 | 8/19/2013 | — | 35,000 | 4.10 | 8/19/2013 | ||||||||||||||||||||||||
2,250 | 7,750 | 4.75 | 7/31/2014 | — | 10,000 | 4.75 | 7/31/2014 | |||||||||||||||||||||||||
2,500 | 22,500 | 8.02 | 1/31/2018 | — | 25,000 | 8.02 | 1/31/2018 | |||||||||||||||||||||||||
0 | 55,000 | 14.87 | 9/15/2016 | — | 55,000 | 14.87 | 9/15/2016 | |||||||||||||||||||||||||
— | 125,000 | 16.60 | 9/1/2017 |
Option Awards | ||||||||||||||||||||||||||||||||
Option Awards | Number of | Number of | ||||||||||||||||||||||||||||||
Number of | Number of | Securities | Securities | |||||||||||||||||||||||||||||
Securities | Securities | Underlying | Underlying | |||||||||||||||||||||||||||||
Underlying | Underlying | Unexercised | Unexercised | Option | ||||||||||||||||||||||||||||
Unexercised Options | Unexercised Options | Option Exercise | Option | Options | Options | Exercise | Option | |||||||||||||||||||||||||
Name | (#) Exercisable | (#) Unexercisable | Price | Expiration Date | (#) Exercisable | (#) Unexercisable | Price ($) | Expiration Date | ||||||||||||||||||||||||
Kevin T. Kelly | 57,000 | — | 17.90 | 4/19/2011 | 57,000 | — | 17.90 | 4/19/2011 |
71
70
Registrant | Aggregate | Aggregate | ||||||||||||||||||||||||||||||||||||||
Executive | Contributions in | Aggregate | Aggregate | Balance | Executive | Registrant | Aggregate | Aggregate | Balance at | |||||||||||||||||||||||||||||||
Contributions in | Last FY | Earnings | Withdrawals/ | at Last FYE | Contributions | Contributions | Earnings | Withdrawals/ | Last FYE | |||||||||||||||||||||||||||||||
Last FY | ($) | in Last FY | Distributions | ($) | in Last FY | in Last FY(1) | in Last FY | Distributions | (2) | |||||||||||||||||||||||||||||||
Name | ($) | (1) | ($) | ($) | (2) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||
James E. Ferrell | 274,538 | 55,356 | 87,389 | — | 834,269 | 200,789 | — | 75,545 | — | 1,110,603 | ||||||||||||||||||||||||||||||
J. Ryan VanWinkle | 7,500 | 3,667 | (580 | ) | — | 21,356 | ||||||||||||||||||||||||||||||||||
Kevin T. Kelly | 50,353 | — | (31,112 | ) | — | 510,007 | ||||||||||||||||||||||||||||||||||
Stephen L. Wambold | 10,834 | 2,000 | 58 | — | 12,892 | 42,084 | 7,834 | 551 | — | 63,361 | ||||||||||||||||||||||||||||||
Kevin T. Kelly | 38,551 | 11,500 | 81,024 | — | 490,765 | |||||||||||||||||||||||||||||||||||
Tod D. Brown | 17,106 | 7,108 | (2,305 | ) | — | 48,086 | ||||||||||||||||||||||||||||||||||
George L. Koloroutis | 10,949 | 4,025 | 16,108 | — | 133,389 | 16,283 | 1,250 | (7,789 | ) | — | 143,133 | |||||||||||||||||||||||||||||
Tod D. Brown | 13,287 | 6,166 | 1,807 | — | 26,178 | |||||||||||||||||||||||||||||||||||
Brian J. Kline | 8,907 | 3,247 | 6,016 | — | 39,847 |
(1) | Amounts are included in the Summary Compensation Table above. | |
(2) | The portion of this amount representing registrant contributions made in years prior was previously reported as compensation to the NEO in the |
• | his annual salary; | |
• | an annual bonus, the amount to be determined at the sole discretion of the independent members of the Board of Directors of our general partner; and | |
• | an incentive bonus equal to 0.5% of the increase in the equity value of Ferrell Companies from July 31, 1998 to July 31, 2005. |
72
71
Two Times Annual | Two Times | Two Times Annual | Two Times Target | |||||||||||||
NEO | Base Salary | Target Bonus | Base Salary ($) | Bonus ($) | ||||||||||||
James E. Ferrell(1) | $ | 1,300,000 | $ | 1,300,000 | 1,650,000 | 1,650,000 | ||||||||||
J. Ryan VanWinkle | 550,000 | 302,500 | ||||||||||||||
Stephen L. Wambold | 800,000 | 600,000 | 1,000,000 | 1,000,000 | ||||||||||||
Kevin T. Kelly | 670,000 | 368,500 | ||||||||||||||
Tod D. Brown | 490,000 | 220,500 | ||||||||||||||
George L. Koloroutis | 462,000 | 207,900 | 500,000 | 225,000 | ||||||||||||
Tod D. Brown | 440,000 | 198,000 | ||||||||||||||
Brian J. Kline | 450,000 | 180,000 |
(1) | As discussed above, James E. Ferrell’s employment agreement contains a separate |
• | non-management, non-board committee chairpersons have the option to receive either $4,000 of additional cash compensation annually or 5,000 fully vested options; |
73
• | the chairperson of the Audit Committee has the option to receive either $14,000 of additional cash compensation annually or 15,000 fully vested options; | |
• | the chairpersons of the Compensation and Governance Committees have the option to receive either $9,000 of additional cash compensation annually or 10,000 fully vested options; and | |
• | additional option awards may be granted for other activities. |
72
Fees | ||||||||||||||||||||||||||||||||
Earned or | ||||||||||||||||||||||||||||||||
Fees Earned or Paid | Option Awards | All Other | Paid in | Option | All Other | |||||||||||||||||||||||||||
in Cash | ($) | Compensation | Total | Cash | Awards(4) | Compensation | Total | |||||||||||||||||||||||||
Name | ($) | (7) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||
William K. Hoskins(1) | 36,000 | 35,900 | 71,900 | 61,192 | — | — | 61,192 | |||||||||||||||||||||||||
A. Andrew Levison(2) | 36,000 | 25,830 | 30,883 | (6) | 92,713 | 40,500 | 3,152 | — | 43,652 | |||||||||||||||||||||||
John R. Lowden(2) | 36,000 | 25,830 | 61,830 | 63,442 | 3,152 | — | 66,594 | |||||||||||||||||||||||||
Michael F. Morrissey(3) | 46,000 | 61,730 | 107,730 | 98,517 | 3,152 | — | 101,669 | |||||||||||||||||||||||||
Billy D. Prim(4) | 36,000 | 967,630 | (5) | 1,003,630 | ||||||||||||||||||||||||||||
Billy D. Prim(2) | 40,500 | 7,969 | — | 48,469 | ||||||||||||||||||||||||||||
Elizabeth T. Solberg(1) | 36,000 | 35,900 | 71,900 | 40,500 | — | — | 40,500 |
(1) | At July 31, | |
(2) | At July 31, | |
(3) | At July 31, | |
(4) | ||
See Note |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED UNITHOLDER MATTERS. |
• | persons that own more than 5% of our common units; | |
• | persons that are directors, nominees or named executive officers of our general partner; and | |
• | all directors and executive officers of our general partner as a group. |
7374
Units | ||||||||||||
Beneficially | Percentage | |||||||||||
Title of Class | Name and Address of Beneficial Owner | Owned | of Class | |||||||||
Common units | Ferrell Companies Inc. Employee Stock Ownership Trust 125 S. LaSalle Street, 17th Floor Chicago, Ill. 60603 | 20,327,666 | 32.3 | |||||||||
James E. Ferrell 7500 College Blvd. Suite 1000 Overland Park, KS. 66210 | 4,292,025 | 6.8 | ||||||||||
Stephen L. Wambold | — | * | ||||||||||
Eugene D. Caresia | — | * | ||||||||||
Kevin T. Kelly | 38,700 | * | ||||||||||
Brian J. Kline | — | * | ||||||||||
George L. Koloroutis | — | * | ||||||||||
Tod D Brown | — | * | ||||||||||
William K. Hoskins | 18,000 | * | ||||||||||
A. Andrew Levison | 39,300 | * | ||||||||||
John R. Lowden | — | * | ||||||||||
Michael F. Morrissey | 1,000 | * | ||||||||||
Billy D. Prim | 412,155 | * | ||||||||||
Elizabeth T. Solberg | 8,431 | * | ||||||||||
* | ||||||||||||
All Directors and Executive Officers as a Group | 4,809,611 | 7.6 |
Units | ||||||||||
Beneficially | Percentage | |||||||||
Title of Class | Name and Address of Beneficial Owner | Owned | of Class | |||||||
Common units | Ferrell Companies, Inc. Employee Stock Ownership Trust 125 S. LaSalle Street, 17th Floor Chicago, Ill. 60603 | 20,327,666 | 32.3 | |||||||
James E. Ferrell 7500 College Blvd. Suite 1000 Overland Park, KS. 66210 | 4,333,475 | 6.9 | ||||||||
J. Ryan VanWinkle | — | * | ||||||||
Kevin T. Kelly | 57,000 | * | ||||||||
Stephen L. Wambold | — | * | ||||||||
Tod D. Brown | — | * | ||||||||
George L. Koloroutis | — | * | ||||||||
William K. Hoskins | 22,000 | * | ||||||||
A. Andrew Levison | 39,300 | * | ||||||||
John R. Lowden | 5,000 | * | ||||||||
Michael F. Morrissey | 1,000 | * | ||||||||
Billy D. Prim | 412,155 | * | ||||||||
Elizabeth T. Solberg | 8,431 | * | ||||||||
All Directors and Executive Officers as a Group | 4,821,361 | 7.7 |
* | Less than one percent |
75
74
Number of Common Units | Number of Common Units | |||||||||||||||||||||||
Number of Common | Weighted-Average | Remaining Available for Future | Number of Common | Weighted-Average | Remaining Available for Future | |||||||||||||||||||
Units to be Issued | Exercise Price of | Issuance Under Equity | Units to be Issued | Exercise Price of | Issuance Under Equity | |||||||||||||||||||
Upon Exercise of | Outstanding | Compensation Plans | Upon Exercise of | Outstanding | Compensation Plans | |||||||||||||||||||
Outstanding Options, | Options, Warrants | (Excluding Securities | Outstanding Options, | Options, Warrants | (Excluding Securities | |||||||||||||||||||
Warrants and Rights | and Rights | Reflected in the First Column) | Warrants and Rights | and Rights | Reflected in the First Column) | |||||||||||||||||||
Equity compensation plans approved by security holders | — | — | — | — | — | — | ||||||||||||||||||
Equity compensation plans not approved by security holders(1) | 81,550 | $ | 18.31 | 258,076 | (2) | 61,700 | $ | 17.92 | 273,926 | (2) | ||||||||||||||
Total | 81,550 | $ | 18.31 | 258,076 | 61,700 | $ | 17.92 | 273,926 | ||||||||||||||||
(1) | The Second Amended and Restated Ferrellgas Unit Option Plan did not require approval by the security holders. | |
(2) | This number may be increased upon the occurrence of particular events. See narrative below. |
• | develop a proprietary interest in our growth and performance; | |
• | generate an increased incentive to contribute to our future success and prosperity, thereby enhancing our value for the benefit of our common unitholders; and | |
• | enhance our ability to attract and retain key individuals who are essential to our progress, growth and profitability, by giving these individuals the opportunity to acquire our common units. |
• | designate the employees who are to be participants in the plan; | |
• | determine the number of unit options to be granted to an employee; | |
• | determine the terms and conditions of any unit option; | |
• | interpret, construe and administer the plan and any instrument or agreement relating to a unit option granted under the plan; | |
• | establish, amend, suspend, or waive such rules and regulations and appoint such agents as it deems appropriate for the proper administration of the plan; |
76
• | make a determination as to the right of any person to receive payment of (or with respect to) a unit option; and | |
• | make any other determinations and take any other actions that the administrator deems necessary or desirable for the administration of the plan. |
75
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, |
77
76
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND |
For the Fiscal Year Ended July 31, | 2007 | 2006 | ||||||||||||||
2008 | 2007 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Audit fees(1) | $ | 1,506 | $ | 1,519 | $ | 1,539 | $ | 1,506 | ||||||||
Audit related fees(2) | 38 | 15 | 52 | 38 | ||||||||||||
Tax fees(3) | — | 6 | ||||||||||||||
All other fees(4) | 7 | 7 | ||||||||||||||
All other fees(3) | 7 | 7 | ||||||||||||||
Total | $ | 1,551 | $ | 1,547 | $ | 1,598 | $ | 1,551 | ||||||||
(1) | Audit fees consist of the aggregate fees billed for each of the last two fiscal years for professional services rendered by Deloitte & Touche LLP in connection with the audit of our annual financial statements and the review of financial statements included in our quarterly reports onForm 10-Q. In addition, these fees also covered those services that are normally provided by an accountant in connection with statutory and regulatory filings or engagements and services related to the audit of our internal controls over financial reporting. | |
(2) | Audit-related fees consist of the aggregate fees billed in each of the last two fiscal years for assurance and related services by Deloitte & Touche LLP that we believe are reasonably related to the performance of the audit or review of our financial statements and that would not normally be reported under Item 9(e)(1) of Schedule 14A. These services generally consisted of financial accounting and reporting consultations and benefit plans audits. |
78
(3) | ||
All other fees consist of the aggregate fees billed in each of the last two fiscal years for products and services provided by Deloitte & Touche LLP, other than the services that would normally be reported in Items 9(e)(1) through 9(e)(3) of Schedule 14A. These services consisted of subscription fees related to a web-based research tool provided by Deloitte & Touche LLP. |
77
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. |
1. | Financial Statements. |
2. | Financial Statement Schedules. |
7879
By | /s/ James. E. Ferrell |
Signature | Title | Date | ||||
/s/ James E. Ferrell James E. Ferrell | Chairman and Chief Executive Officer (Principal Executive Officer) | 09/ | ||||
/s/ William K. Hoskins William K. Hoskins | Director | 09/ | ||||
/s/ A. Andrew Levison A. Andrew Levison | Director | 09/ | ||||
/s/ John R. Lowden John R. Lowden | Director | 09/ | ||||
/s/ Michael F. Morrissey Michael F. Morrissey | Director | 09/ | ||||
/s/ Billy D. Prim Billy D. Prim | Director | 09/ | ||||
/s/ Elizabeth T. Solberg Elizabeth T. Solberg | Director | 09/ | ||||
/s/ | Financial Officer (Principal Financial and Accounting Officer) | 09/ |
By | /s/ James. E. Ferrell |
Signature | Title | Date | ||||
/s/ | Chief Executive Officer (Principal Executive Officer) | 09/ | ||||
/s/ | Financial Officer and (Principal Financial and Accounting Officer) | 09/ |
By | /s/ James. E. Ferrell |
Signature | Title | Date | ||||
/s/ James E. Ferrell James E. Ferrell | Chairman and Chief Executive Officer (Principal Executive Officer) | 09/ | ||||
/s/ William K. Hoskins William K. Hoskins | Director | 09/ | ||||
/s/ A. Andrew Levison A. Andrew Levison | Director | 09/ | ||||
/s/ John R. Lowden John R. Lowden | Director | 09/ | ||||
/s/ Michael F. Morrissey Michael F. Morrissey | Director | 09/ | ||||
/s/ Billy D. Prim Billy D. Prim | Director | 09/ | ||||
/s/ Elizabeth T. Solberg Elizabeth T. Solberg | Director | 09/ | ||||
/s/ | Chief Financial Officer (Principal Financial and Accounting Officer) | 09/ |
By | /s/ James. E. Ferrell |
Signature | Title | Date | ||||
/s/ James E. Ferrell James E. Ferrell | Chief Executive Officer (Principal Executive Officer) | 09/ | ||||
/s/ | Chief Financial Officer and (Principal Financial and Accounting Officer) | 09/ |
Page | ||||
Ferrellgas Partners, L.P. and Subsidiaries | ||||
F-2 | ||||
2007 | F-3 | |||
2006 | F-4 | |||
2006 | F-5 | |||
2006 | F-6 | |||
F-7 | ||||
Ferrellgas Partners Finance Corp. | ||||
2007 | ||||
2006 | ||||
2006 | ||||
2006 | ||||
F-33 | ||||
Ferrellgas, L.P. and Subsidiaries | ||||
2007 | ||||
2006 | ||||
2006 | ||||
2006 | ||||
F-39 | ||||
Ferrellgas Finance Corp. | ||||
2007 | ||||
2006 | ||||
2006 | ||||
2006 | ||||
F-1
F-2
July 31, | ||||||||||||||||
2007 | 2006 | July 31, | ||||||||||||||
(In thousands, except | 2008 | 2007 | ||||||||||||||
unit data) | (In thousands, except unit data) | |||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 20,685 | $ | 16,525 | $ | 16,614 | $ | 20,685 | ||||||||
Accounts and notes receivable (net of allowance for doubtful accounts of $4,358 and $5,628 in 2007 and 2006, respectively) | 118,320 | 116,369 | ||||||||||||||
Accounts and notes receivable (net of allowance for doubtful accounts of $5,977 and $4,358 at 2008 and 2007, respectively) | 145,081 | 118,320 | ||||||||||||||
Inventories | 113,807 | 154,613 | 152,301 | 113,807 | ||||||||||||
Price risk management assets | 26,086 | 5,097 | ||||||||||||||
Prepaid expenses and other current assets | 16,772 | 15,334 | 10,924 | 11,675 | ||||||||||||
Total current assets | 269,584 | 302,841 | 351,006 | 269,584 | ||||||||||||
Property, plant and equipment, net | 720,190 | 740,101 | 685,328 | 720,190 | ||||||||||||
Goodwill | 249,481 | 246,050 | 248,939 | 249,481 | ||||||||||||
Intangible assets, net | 246,283 | 248,546 | 225,273 | 246,283 | ||||||||||||
Other assets, net | 17,865 | 11,962 | 18,685 | 17,865 | ||||||||||||
Total assets | $ | 1,503,403 | $ | 1,549,500 | $ | 1,529,231 | $ | 1,503,403 | ||||||||
LIABILITIES AND PARTNERS’ CAPITAL | LIABILITIES AND PARTNERS’ CAPITAL | LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 62,103 | $ | 82,212 | $ | 71,348 | $ | 62,103 | ||||||||
Short-term borrowings | 57,779 | 52,647 | 125,729 | 57,779 | ||||||||||||
Other current liabilities | 107,199 | 140,738 | 107,854 | 107,199 | ||||||||||||
Total current liabilities | 227,081 | 275,597 | 304,931 | 227,081 | ||||||||||||
Long-term debt | 1,011,751 | 983,545 | 1,034,719 | 1,011,751 | ||||||||||||
Other liabilities | 22,795 | 19,178 | 23,237 | 22,795 | ||||||||||||
Contingencies and commitments (Note N) | — | — | ||||||||||||||
Contingencies and commitments (Note L) | — | — | ||||||||||||||
Minority interest | 5,119 | 5,435 | 4,220 | 5,119 | ||||||||||||
Partners’ capital: | ||||||||||||||||
Common unitholders (62,957,674 and 60,885,784 units outstanding at 2007 and 2006, respectively) | 289,075 | 321,194 | ||||||||||||||
General partner (635,936 and 615,008 units outstanding at 2007 and 2006, respectively) | (57,154 | ) | (56,829 | ) | ||||||||||||
Common unitholders (62,961,674 and 62,957,674 units outstanding at 2008 and 2007, respectively) | 201,618 | 289,075 | ||||||||||||||
General partner unitholder (635,977 and 635,936 units outstanding at 2008 and 2007, respectively) | (58,036 | ) | (57,154 | ) | ||||||||||||
Accumulated other comprehensive income | 4,736 | 1,380 | 18,542 | 4,736 | ||||||||||||
Total partners’ capital | 236,657 | 265,745 | 162,124 | 236,657 | ||||||||||||
Total liabilities and partners’ capital | $ | 1,503,403 | $ | 1,549,500 | $ | 1,529,231 | $ | 1,503,403 | ||||||||
F-3
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
(In thousands, except per unit data) | (In thousands, except per unit data) | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Propane and other gas liquids sales | $ | 1,757,423 | $ | 1,697,940 | $ | 1,592,325 | $ | 2,055,281 | $ | 1,757,423 | $ | 1,697,940 | ||||||||||||
Other | 235,017 | 197,530 | 161,789 | 235,408 | 235,017 | 197,530 | ||||||||||||||||||
Total revenues | 1,992,440 | 1,895,470 | 1,754,114 | 2,290,689 | 1,992,440 | 1,895,470 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of product sold — propane and other gas liquids sales | 1,147,169 | 1,109,177 | 1,052,005 | 1,491,918 | 1,147,169 | 1,109,177 | ||||||||||||||||||
Cost of product sold — other | 157,223 | 122,450 | 88,293 | 136,478 | 157,223 | 122,450 | ||||||||||||||||||
Operating expense | 380,838 | 374,843 | 366,192 | 372,078 | 380,838 | 374,843 | ||||||||||||||||||
Depreciation and amortization expense | 87,383 | 84,953 | 83,060 | 85,521 | 87,383 | 84,953 | ||||||||||||||||||
General and administrative expense | 44,870 | 47,689 | 42,342 | 45,612 | 44,870 | 47,689 | ||||||||||||||||||
Equipment lease expense | 26,142 | 27,320 | 25,495 | 24,478 | 26,142 | 27,320 | ||||||||||||||||||
Employee stock ownership plan compensation charge | 11,225 | 10,277 | 12,266 | 12,413 | 11,225 | 10,277 | ||||||||||||||||||
Loss on disposal of assets and other | 10,822 | 7,539 | 8,673 | 11,250 | 10,822 | 7,539 | ||||||||||||||||||
Operating income | 126,768 | 111,222 | 75,788 | 110,941 | 126,768 | 111,222 | ||||||||||||||||||
Interest expense | (87,953 | ) | (84,235 | ) | (91,518 | ) | (86,712 | ) | (87,953 | ) | (84,235 | ) | ||||||||||||
Interest income | 3,145 | 2,046 | 1,894 | |||||||||||||||||||||
Other interest income | 1,039 | 3,145 | 2,046 | |||||||||||||||||||||
Earnings (loss) before income taxes, minority interest and discontinued operations | 41,960 | 29,033 | (13,836 | ) | ||||||||||||||||||||
Earnings before income taxes and minority interest | 25,268 | 41,960 | 29,033 | |||||||||||||||||||||
Income tax expense | 6,560 | 3,524 | 1,447 | 82 | 6,560 | 3,524 | ||||||||||||||||||
Minority interest | 600 | 500 | 92 | 497 | 600 | 500 | ||||||||||||||||||
Earnings (loss) from continuing operations before discontinued operations | 34,800 | 25,009 | (15,375 | ) | ||||||||||||||||||||
Earnings from discontinued operations (including gain on sale in 2005 of $97,001), net of minority interest of $1,063 in 2005 | — | — | 104,189 | |||||||||||||||||||||
Net earnings | 34,800 | 25,009 | 88,814 | 24,689 | 34,800 | 25,009 | ||||||||||||||||||
Distributions to senior unitholder | — | — | 7,305 | |||||||||||||||||||||
Net earnings available to general partner unitholder | 348 | 250 | 815 | 247 | 348 | 250 | ||||||||||||||||||
Net earnings available to common unitholders | $ | 34,452 | $ | 24,759 | $ | 80,694 | $ | 24,442 | $ | 34,452 | $ | 24,759 | ||||||||||||
Basic and diluted earnings per common unit: | ||||||||||||||||||||||||
Earnings (loss) from continuing operations available to common unitholders before discontinued operations | $ | 0.55 | $ | 0.41 | $ | (0.41 | ) | |||||||||||||||||
Earnings from discontinued operations | — | — | 1.91 | |||||||||||||||||||||
Basic and diluted net earnings available per common unit | $ | 0.39 | $ | 0.55 | $ | 0.41 | ||||||||||||||||||
Net earnings available to common unitholders | $ | 0.55 | $ | 0.41 | $ | 1.50 | ||||||||||||||||||
F-4
Accumulated Other | Accumulated Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Units | Comprehensive Income | Number of Units | Comprehensive Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General | General | Currency | Total | General | General | Currency | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior | Common | Partner | Senior | Common | Partner | Risk | Translation | Pension | Partners’ | Common | Partner | Common | Partner | Risk | Translation | Pension | Partners’ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unitholder | Unitholders | Unitholder | Unitholder | Unitholders | Unitholder | Management | Adjustments | Liability | Capital | Unitholders | Unitholder | Unitholders | Unitholder | Management | Adjustments | Liability | Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 31, 2004 | 1,994.1 | 48,772.9 | 512.8 | $ | 79,766 | $ | 178,994 | $ | (57,391 | ) | $ | 1,772 | $ | 16 | $ | (1,058 | ) | $ | 202,099 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution in connection with ESOP compensation charge | — | — | — | — | 12,021 | 121 | — | — | — | 12,142 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common unit distributions | — | — | — | — | (106,872 | ) | (1,079 | ) | — | — | — | (107,951 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior unit distributions | — | 63.5 | 0.6 | — | (5,909 | ) | (133 | ) | — | — | — | (6,042 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common units issued in public offerings | — | 5,002.0 | 50.5 | — | 97,230 | 981 | — | — | — | 98,211 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common units issued in private offerings | — | 2,098.6 | 21.2 | — | 39,800 | 405 | — | — | — | 40,205 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common unit options exercised | — | 26.5 | 0.3 | — | 472 | 5 | — | — | — | 477 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common units issued in connection with acquisitions, net of issuance costs | — | 341.2 | 3.5 | — | 6,994 | 71 | — | — | — | 7,065 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of senior units to common units | (1,994.1 | ) | 3,829.4 | 18.5 | (79,766 | ) | 79,766 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | 87,926 | 888 | — | — | — | 88,814 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | — | — | — | — | 70 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of derivatives to earnings | — | — | — | — | — | — | (1,772 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | 49 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | — | — | — | — | 311 | (1,342 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 87,472 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 31, 2005 | — | 60,134.1 | 607.4 | — | 390,422 | (56,132 | ) | 70 | 65 | (747 | ) | 333,678 | 60,134.1 | 607.4 | $ | 390,422 | $ | (56,132 | ) | $ | 70 | $ | 65 | $ | (747 | ) | $ | 333,678 | ||||||||||||||||||||||||||||||||||||||||||||
Contribution in connection with ESOP and stock-based compensation charges | — | — | — | — | 11,897 | 119 | — | — | — | 12,016 | — | — | 11,897 | 119 | — | — | — | 12,016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common unit distributions | — | — | — | — | (120,976 | ) | (1,221 | ) | — | — | — | (122,197 | ) | — | — | (120,976 | ) | (1,221 | ) | — | — | — | (122,197 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Common unit options exercised | — | 169.0 | 1.7 | — | 3,092 | 32 | — | — | — | 3,124 | 169.0 | 1.7 | 3,092 | 32 | — | — | — | 3,124 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common units issued in connection with acquisitions, net of issuance costs | — | 582.7 | 5.9 | — | 12,000 | 123 | — | — | — | 12,123 | 582.7 | 5.9 | 12,000 | 123 | — | — | — | 12,123 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 24,759 | 250 | — | — | — | 25,009 | — | — | 24,759 | 250 | — | — | — | 25,009 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | — | — | — | — | 2,540 | — | — | — | — | — | — | 2,540 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of derivatives to earnings | — | — | — | — | — | — | (484 | ) | — | — | — | — | — | — | (484 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | (29 | ) | — | — | — | — | — | — | (29 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect on foreign currency translation adjustments | — | — | — | — | — | — | — | (15 | ) | — | — | — | — | — | — | (15 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | — | — | — | — | (20 | ) | 1,992 | — | — | — | — | — | — | (20 | ) | 1,992 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 27,001 | 27,001 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 31, 2006 | — | 60,885.8 | 615.0 | — | 321,194 | (56,829 | ) | 2,126 | 21 | (767 | ) | 265,745 | 60,885.8 | 615.0 | 321,194 | (56,829 | ) | 2,126 | 21 | (767 | ) | 265,745 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution in connection with ESOP and stock-based compensation charges | — | — | — | — | 11,872 | 120 | — | — | — | 11,992 | — | — | 11,872 | 120 | — | — | — | 11,992 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common unit distributions | — | — | — | — | (125,802 | ) | (1,270 | ) | — | — | — | (127,072 | ) | — | — | (125,802 | ) | (1,270 | ) | — | — | — | (127,072 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Common units issued in private offering | — | 1,891.9 | 19.1 | — | 43,765 | 442 | — | — | — | 44,207 | 1,891.9 | 19.1 | 43,765 | 442 | — | — | — | 44,207 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common unit options exercised | — | 55.5 | 0.6 | — | 1,014 | 11 | — | — | — | 1,025 | 55.5 | 0.6 | 1,014 | 11 | — | — | — | 1,025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common units issued in connection with acquisitions, net of issuance costs | — | 124.5 | 1.2 | — | 2,580 | 24 | — | — | — | 2,604 | 124.5 | 1.2 | 2,580 | 24 | — | — | — | 2,604 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 34,452 | 348 | — | — | — | 34,800 | — | — | 34,452 | 348 | — | — | — | 34,800 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | — | — | — | — | 5,055 | — | — | — | — | — | — | 5,055 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of derivatives to earnings | — | — | — | — | — | — | (2,126 | ) | — | — | — | — | — | — | (2,126 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | 14 | — | — | — | — | — | — | 14 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect on foreign currency translation adjustments | — | — | — | — | — | — | — | (5 | ) | — | — | — | — | — | — | (5 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | — | — | — | — | 418 | 3,356 | — | — | — | — | — | — | 418 | 3,356 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 38,156 | 38,156 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 31, 2007 | — | 62,957.7 | 635.9 | $ | — | $ | 289,075 | $ | (57,154 | ) | $ | 5,055 | $ | 30 | $ | (349 | ) | $ | 236,657 | 62,957.7 | 635.9 | 289,075 | (57,154 | ) | 5,055 | 30 | (349 | ) | 236,657 | |||||||||||||||||||||||||||||||||||||||||||
Contribution in connection with ESOP and stock-based compensation charges | — | — | 13,945 | 141 | — | — | — | 14,086 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common unit distributions | — | — | (125,919 | ) | (1,271 | ) | — | — | — | (127,190 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common unit options exercised | 4.0 | 0.1 | 75 | 1 | — | — | — | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | 24,442 | 247 | — | — | — | 24,689 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | — | — | 18,749 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of derivatives to earnings | — | — | — | — | (5,055 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | (10 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect on foreign currency translation adjustments | — | — | — | — | — | 6 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | — | — | 116 | 13,806 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 38,495 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 31, 2008 | 62,961.7 | 636.0 | $ | 201,618 | $ | (58,036 | ) | $ | 18,749 | $ | 26 | $ | (233 | ) | $ | 162,124 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
F-5
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net earnings | $ | 34,800 | $ | 25,009 | $ | 88,814 | $ | 24,689 | $ | 34,800 | $ | 25,009 | ||||||||||||
Reconciliation of net earnings to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation and amortization expense | 87,383 | 84,953 | 84,249 | 85,521 | 87,383 | 84,953 | ||||||||||||||||||
Employee stock ownership plan compensation charge | 11,225 | 10,277 | 12,266 | 12,413 | 11,225 | 10,277 | ||||||||||||||||||
Stock-based compensation charge | 889 | 1,863 | — | 1,816 | 889 | 1,863 | ||||||||||||||||||
Loss (gain) on disposal of assets and discontinued operations | 4,232 | 1,188 | (91,494 | ) | ||||||||||||||||||||
Loss on disposal of assets | 4,820 | 4,232 | 1,188 | |||||||||||||||||||||
Loss on transfer of accounts receivable related to the accounts receivable securitization | 10,384 | 10,075 | 5,894 | 10,548 | 10,384 | 10,075 | ||||||||||||||||||
Minority interest | 600 | 500 | 1,155 | 497 | 600 | 500 | ||||||||||||||||||
Deferred tax expense (benefit) | 3,099 | 662 | (768 | ) | (1,650 | ) | 3,099 | 662 | ||||||||||||||||
Other | 4,431 | 5,803 | 2,535 | 6,408 | 4,431 | 5,803 | ||||||||||||||||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | ||||||||||||||||||||||||
Accounts and notes receivable, net of securitization | 1,105 | (20,412 | ) | (43,246 | ) | (48,606 | ) | 1,105 | (20,412 | ) | ||||||||||||||
Inventories | 40,984 | (57,334 | ) | (2,421 | ) | (40,920 | ) | 40,984 | (57,334 | ) | ||||||||||||||
Prepaid expenses and other current assets | 1,529 | (2,330 | ) | (2,443 | ) | 751 | 1,529 | (2,330 | ) | |||||||||||||||
Accounts payable | (21,295 | ) | 18,491 | (17,104 | ) | 8,523 | (21,295 | ) | 18,491 | |||||||||||||||
Accrued interest expense | (1,353 | ) | 472 | (4,662 | ) | (3,572 | ) | (1,353 | ) | 472 | ||||||||||||||
Other current liabilities | (26,218 | ) | 8,750 | 16,535 | (2,497 | ) | (26,218 | ) | 8,750 | |||||||||||||||
Other liabilities | 819 | 1,061 | 323 | 151 | 819 | 1,061 | ||||||||||||||||||
Accounts receivable securitization: | ||||||||||||||||||||||||
Proceeds from new accounts receivable securitizations | 100,000 | 107,000 | 114,400 | 103,000 | 100,000 | 107,000 | ||||||||||||||||||
Proceeds from collections reinvested in revolving period accounts receivable securitizations | 1,156,214 | 1,184,987 | 981,256 | 1,365,655 | 1,156,214 | 1,184,987 | ||||||||||||||||||
Remittances of amounts collected as servicer of accounts receivable securitizations | (1,265,214 | ) | (1,287,987 | ) | (1,051,356 | ) | (1,456,655 | ) | (1,265,214 | ) | (1,287,987 | ) | ||||||||||||
Net cash provided by operating activities | 143,614 | 93,028 | 93,933 | 70,892 | 143,614 | 93,028 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Business acquisitions, net of cash acquired | (31,688 | ) | (21,231 | ) | (23,904 | ) | (191 | ) | (31,688 | ) | (21,231 | ) | ||||||||||||
Capital expenditures — technology initiative | — | (915 | ) | (10,466 | ) | — | — | (915 | ) | |||||||||||||||
Capital expenditures — other | (46,667 | ) | (42,451 | ) | (42,348 | ) | (43,823 | ) | (46,667 | ) | (42,451 | ) | ||||||||||||
Proceeds from sale of discontinued operations | — | — | 144,000 | |||||||||||||||||||||
Proceeds from sale of assets | 9,830 | 18,950 | 11,948 | 10,874 | 9,830 | 18,950 | ||||||||||||||||||
Other | (6,540 | ) | (5,661 | ) | (4,030 | ) | (2,991 | ) | (6,540 | ) | (5,661 | ) | ||||||||||||
Net cash provided by (used in) investing activities | (75,065 | ) | (51,308 | ) | 75,200 | |||||||||||||||||||
Net cash used in investing activities | (36,131 | ) | (75,065 | ) | (51,308 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Distributions | (127,072 | ) | (122,197 | ) | (116,007 | ) | (127,190 | ) | (127,072 | ) | (122,197 | ) | ||||||||||||
Issuance of common units, net of issuance costs of $226 and $569 in 2007 and 2005, respectively | 44,319 | — | 136,824 | |||||||||||||||||||||
Issuance of common units, net of issuance costs of $226 | — | 44,319 | — | |||||||||||||||||||||
Proceeds from increase in long-term debt | 74,568 | 45,453 | — | 115,249 | 74,568 | 45,453 | ||||||||||||||||||
Reductions in long-term debt | (60,942 | ) | (3,050 | ) | (205,354 | ) | (92,985 | ) | (60,942 | ) | (3,050 | ) | ||||||||||||
Net additions to short-term borrowings | 5,132 | 32,847 | 19,800 | 67,950 | 5,132 | 32,847 | ||||||||||||||||||
Cash paid for financing costs | (367 | ) | (375 | ) | (1,405 | ) | (383 | ) | (367 | ) | (375 | ) | ||||||||||||
Minority interest activity | (1,536 | ) | (1,489 | ) | 60 | (1,539 | ) | (1,536 | ) | (1,489 | ) | |||||||||||||
Proceeds from exercise of common unit options | 1,025 | 3,124 | 472 | 76 | 1,025 | 3,124 | ||||||||||||||||||
Cash contribution from general partner | 470 | 16 | 1,461 | — | 470 | 16 | ||||||||||||||||||
Other | — | — | 44 | |||||||||||||||||||||
Net cash used in financing activities | (64,403 | ) | (45,671 | ) | (164,105 | ) | (38,822 | ) | (64,403 | ) | (45,671 | ) | ||||||||||||
Effect of exchange rate changes on cash | 14 | (29 | ) | 49 | (10 | ) | 14 | (29 | ) | |||||||||||||||
Increase (decrease) in cash and cash equivalents | 4,160 | (3,980 | ) | 5,077 | (4,071 | ) | 4,160 | (3,980 | ) | |||||||||||||||
Cash and cash equivalents — beginning of year | 16,525 | 20,505 | 15,428 | 20,685 | 16,525 | 20,505 | ||||||||||||||||||
Cash and cash equivalents — end of year | $ | 20,685 | $ | 16,525 | $ | 20,505 | $ | 16,614 | $ | 20,685 | $ | 16,525 | ||||||||||||
F-6
A. | Partnership organization and formation |
B. | Summary of significant accounting policies |
F-7
F-7
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
CASH PAID FOR: | ||||||||||||||||||||||||
Interest | $ | 87,035 | $ | 81,592 | $ | 93,298 | $ | 88,380 | $ | 87,035 | $ | 81,592 | ||||||||||||
Income taxes | $ | 3,742 | $ | 990 | $ | 1,359 | $ | 3,841 | $ | 3,742 | $ | 990 | ||||||||||||
NON-CASH INVESTING ACTIVITIES: | ||||||||||||||||||||||||
Issuance of common units in connection with acquisitions | $ | 2,751 | $ | 12,372 | $ | 7,011 | $ | — | $ | 2,751 | $ | 12,372 | ||||||||||||
Issuance of liabilities in connection with acquisitions | $ | 2,426 | $ | 4,883 | $ | 768 | ||||||||||||||||||
Assumption of liabilities in connection with acquisitions | $ | — | $ | 2,426 | $ | 4,883 | ||||||||||||||||||
Property, plant and equipment additions | $ | 1,187 | $ | 1,443 | $ | 1,041 | $ | 1,970 | $ | 1,187 | $ | 1,443 |
F-8
F-9
F-9
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Current expense | $ | 3,461 | $ | 2,862 | $ | 2,215 | ||||||
Deferred expense | 3,099 | 662 | (768 | ) | ||||||||
Total income tax expense | $ | 6,560 | $ | 3,524 | $ | 1,447 | ||||||
Deferred taxes consisted of the following: |
2007 | 2006 | |||||||
Deferred tax assets | $ | 1,718 | $ | 1,440 | ||||
Deferred tax liabilities | (4,000 | ) | (650 | ) |
F-10
F-11
For the Year Ended July 31, | ||||||||
2007 | 2006 | |||||||
Operating expense | $ | 273 | $ | 438 | ||||
General and administrative expense | 616 | 1,425 | ||||||
$ | 889 | $ | 1,863 | |||||
For the Year | ||||
Ended July 31, | ||||
2005 | ||||
Net earnings available to common unitholders, as reported | $ | 80,694 | ||
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards | (247 | ) | ||
Pro forma net earnings available to common unitholders | $ | 80,447 | ||
Basic and diluted earnings per common unit: | ||||
Earnings (loss) from continuing operations available to common unitholders before discontinued operations, as reported | $ | (0.41 | ) | |
Net earnings available to common unit holders, as reported | $ | 1.50 | ||
Earnings (loss) from continuing operations available to common unitholders before discontinued operations, pro forma | $ | (0.42 | ) | |
Net earnings available to common unitholders, pro forma | $ | 1.49 |
F-12
Weighted- | ||||||||||||||||
Average | ||||||||||||||||
Weighted | Remaining | Aggregate | ||||||||||||||
Number of | Average | Contractual | Intrinsic | |||||||||||||
Units | Exercise Price | Term | Value | |||||||||||||
(In years) | (In thousands) | |||||||||||||||
Outstanding, August 1, 2006 | 148,200 | $ | 18.43 | |||||||||||||
Exercised | (55,500 | ) | 18.23 | |||||||||||||
Forfeited | (11,150 | ) | 20.32 | |||||||||||||
Outstanding, July 31, 2007 | 81,550 | 18.31 | 2.81 | $ | 443 | |||||||||||
Options exercisable, July 31, 2007 | 81,550 | 18.31 | 2.81 | $ | 443 |
F-10
For the Year Ended July 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Current expense | $ | 1,732 | $ | 3,461 | $ | 2,862 | ||||||
Deferred expense (benefit) | (1,650 | ) | 3,099 | 662 | ||||||||
Total income tax expense | $ | 82 | $ | 6,560 | $ | 3,524 | ||||||
2008 | 2007 | |||||||
Deferred tax assets | $ | 4,065 | $ | 1,718 | ||||
Deferred tax liabilities | (4,689 | ) | (4,000 | ) | ||||
Net deferred tax liability | $ | (624 | ) | $ | (2,282 | ) | ||
F-11
F-12
Business combinations |
F-13
• | Pacer-Valley Propane, LLC, based in California, acquired August 2006; | |
• | Lake Propane, based in California, acquired August 2006; | |
• | Pacific Propane Service, Inc., based in California, acquired August 2006; | |
• | Twin Ports Energy, Inc., based in Wisconsin, acquired October 2006; | |
• | Getman’s Gas Company, Inc., based in New York, acquired October 2006; | |
• | Yankee Gas, LLC, based in Massachusetts, acquired October 2006; | |
• | Great Dane Propane, Inc., based in Florida, acquired October 2006; | |
• | Puget Sound Propane, based in Washington, acquired December 2006; and | |
• | Reliance Bottle Gas, Inc., based in Ohio, acquired June 2007. |
Customer tanks, buildings, land and other | $ | 11,567 | ||
Non-compete agreements | 2,072 | |||
Customer lists | 18,178 | |||
Goodwill | 3,649 | |||
Working capital | 712 | |||
$ | 36,178 | |||
• | Norwest Propane, Inc., based in Washington, acquired September 2005; | |
• | Eastern Fuels, Inc., based in North Carolina, acquired November 2005; | |
• | Petro Star, Corp., based in New York, acquired December 2005; |
F-13
• | Titan Propane, LLC (selected cylinder exchange assets), based in New York and New Jersey, acquired February 2006; | |
• | Empire Propane Cylinder, Inc., based in New York, acquired | |
• | United Energy, Inc., based in Ohio, acquired March 2006; | |
• | Cal’s Propane Service, Inc., based in Oregon, acquired April 2006; | |
• | Gaines Propane, Inc., based in Tennessee, acquired April 2006; | |
• | Hometown Gas, Inc., based in Florida, acquired April 2006; |
F-14
• | Denman Cylinder Exchange, Ltd. and The Denman Company, Ltd., based in Texas, acquired May 2006; and | |
• | Hampton Gas Company, Inc., based in South Carolina, acquired May 2006. |
Current assets | $ | 689 | ||
Customer tanks, buildings, land and other | 9,640 | |||
Non-compete agreements | 5,598 | |||
Customer lists | 9,586 | |||
Goodwill | 13,218 | |||
Other assets | 15 | |||
$ | 38,746 | |||
Customer tanks, buildings, land and other | $ | 12,358 | ||
Non-compete agreements | 2,914 | |||
Customer lists | 12,690 | |||
Goodwill | 4,016 | |||
Other assets | 453 | |||
Current liabilities | (749 | ) | ||
$ | 31,682 | |||
F-15
For the Year | ||||
Ended July 31, | ||||
2005 | ||||
Total revenues | $ | 89,339 | ||
Cost of product sold — Propane and other gas liquids sales | 77,407 | |||
Operating expense | 2,506 | |||
Depreciation and amortization expense | 1,189 | |||
Equipment lease expense | 22 | |||
Loss on disposal of assets and other | (36 | ) | ||
Earnings before income taxes, minority interest, and discontinued operations | 8,251 | |||
Minority interest | 1,063 | |||
Gain on sale of discontinued operations | 97,001 | |||
Earnings from discontinued operations, net of minority interest | $ | 104,189 | ||
Quarterly distributions of available cash |
F-14
F-16
Supplemental financial statement information |
2007 | 2006 | 2008 | 2007 | |||||||||||||
Propane gas and related products | $ | 89,769 | $ | 130,644 | $ | 128,776 | $ | 89,769 | ||||||||
Appliances, parts and supplies | 24,038 | 23,969 | 23,525 | 24,038 | ||||||||||||
$ | 113,807 | $ | 154,613 | $ | 152,301 | $ | 113,807 | |||||||||
Estimated | Estimated | |||||||||||||||||||
Useful Lives | 2007 | 2006 | Useful lives | 2008 | 2007 | |||||||||||||||
Land | Indefinite | $ | 31,463 | $ | 31,963 | Indefinite | $ | 30,840 | $ | 31,463 | ||||||||||
Land improvements | 2-20 | 10,091 | 10,313 | 2-20 | 10,585 | 10,091 | ||||||||||||||
Buildings and improvements | 20 | 63,472 | 60,548 | 20 | 63,777 | 63,472 | ||||||||||||||
Vehicles, including transport trailers | 8-20 | 91,529 | 86,787 | 8-20 | 96,351 | 91,529 | ||||||||||||||
Bulk equipment and district facilities | 5-30 | 95,908 | 95,986 | 5-30 | 97,489 | 95,908 | ||||||||||||||
Tanks and customer equipment | 2-30 | 767,096 | 756,134 | |||||||||||||||||
Tanks, cylinders and customer equipment | 2-30 | 761,065 | 767,096 | |||||||||||||||||
Computer and office equipment | 2-5 | 111,735 | 108,102 | 2-5 | 116,873 | 111,735 | ||||||||||||||
Construction in progress | n/a | 9,281 | 6,608 | n/a | 9,575 | 9,281 | ||||||||||||||
1,180,575 | 1,156,441 | 1,186,555 | 1,180,575 | |||||||||||||||||
Less: accumulated depreciation | 460,385 | 416,340 | 501,227 | 460,385 | ||||||||||||||||
$ | 720,190 | $ | 740,101 | $ | 685,328 | $ | 720,190 | |||||||||||||
F-17F-15
2007 | 2006 | 2008 | 2007 | |||||||||||||
Accrued interest | $ | 23,447 | $ | 24,800 | $ | 19,875 | $ | 23,447 | ||||||||
Accrued payroll | 16,680 | 18,724 | 12,621 | 16,680 | ||||||||||||
Accrued insurance | 11,602 | 10,062 | 10,987 | 11,602 | ||||||||||||
Current portion of long-term debt | 2,957 | 14,758 | ||||||||||||||
Customer deposits and advances | 21,018 | 45,837 | 25,065 | 21,018 | ||||||||||||
Other | 31,495 | 26,557 | 39,306 | 34,452 | ||||||||||||
$ | 107,199 | $ | 140,738 | $ | 107,854 | $ | 107,199 | |||||||||
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Loss on disposal of assets | $ | 4,232 | $ | 1,188 | $ | 5,543 | $ | 4,820 | $ | 4,232 | $ | 1,188 | ||||||||||||
Loss on transfer of accounts receivable related to the accounts receivable securitization | 10,384 | 10,075 | 5,894 | 10,548 | 10,384 | 10,075 | ||||||||||||||||||
Service income related to the accounts receivable securitization | (3,794 | ) | (3,724 | ) | (2,764 | ) | (4,118 | ) | (3,794 | ) | (3,724 | ) | ||||||||||||
Loss on disposal of assets and other | $ | 10,822 | $ | 7,539 | $ | 8,673 | $ | 11,250 | $ | 10,822 | $ | 7,539 | ||||||||||||
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Operating expense | $ | 163,193 | $ | 148,125 | $ | 156,072 | $ | 171,938 | $ | 163,193 | $ | 148,125 | ||||||||||||
Depreciation and amortization expense | 5,308 | 5,837 | 6,427 | 5,096 | 5,308 | 5,837 | ||||||||||||||||||
Equipment lease expense | 23,465 | 24,356 | 23,313 | 22,703 | 23,465 | 24,356 | ||||||||||||||||||
$ | 191,966 | $ | 178,318 | $ | 185,812 | $ | 199,737 | $ | 191,966 | $ | 178,318 | |||||||||||||
Accounts receivable securitization |
F-18F-16
2007 | 2006 | 2008 | 2007 | |||||||||||||
Retained interest | $ | 14,022 | $ | 16,373 | $ | 22,753 | $ | 14,022 | ||||||||
Accounts receivable transferred | $ | 76,250 | $ | 87,500 | $ | 97,333 | $ | 76,250 |
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Net non-cash activity | $ | 2,964 | $ | 2,579 | $ | 1,101 | $ | 6,430 | $ | 2,964 | $ | 2,579 | ||||||||||||
Bad debt expense | $ | 202 | $ | 618 | $ | 466 | $ | — | $ | 202 | $ | 618 |
Goodwill and intangible assets, net |
July 31, 2007 | July 31, 2006 | July 31, 2008 | July 31, 2007 | |||||||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | Carrying | Accumulated | Carrying | Accumulated | |||||||||||||||||||||||||||||||||||||||||
Amount | Amortization | Net | Amount | Amortization | Net | Amount | Amortization | Net | Amount | Amortization | Net | |||||||||||||||||||||||||||||||||||||
GOODWILL, NET | $ | 249,481 | — | $ | 249,481 | $ | 246,050 | — | $ | 246,050 | ||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS, NET | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, net | $ | 248,939 | $ | — | $ | 248,939 | $ | 249,481 | $ | — | $ | 249,481 | ||||||||||||||||||||||||||||||||||||
Intangible Assets, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortized intangible assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Customer lists | $ | 363,285 | $ | (189,314 | ) | $ | 173,971 | $ | 345,103 | $ | (171,721 | ) | $ | 173,382 | $ | 363,242 | $ | (207,107 | ) | $ | 156,135 | $ | 363,285 | $ | (189,314 | ) | $ | 173,971 | ||||||||||||||||||||
Non-compete agreements | 43,043 | (32,260 | ) | 10,783 | 40,921 | (27,605 | ) | 13,316 | 43,042 | (35,081 | ) | 7,961 | 43,043 | (32,260 | ) | 10,783 | ||||||||||||||||||||||||||||||||
Other | 5,368 | (2,945 | ) | 2,423 | 5,340 | (2,590 | ) | 2,750 | 3,572 | (1,502 | ) | 2,070 | 5,368 | (2,945 | ) | 2,423 | ||||||||||||||||||||||||||||||||
411,696 | (224,519 | ) | 187,177 | 391,364 | (201,916 | ) | 189,448 | 409,856 | (243,690 | ) | 166,166 | 411,696 | (224,519 | ) | 187,177 | |||||||||||||||||||||||||||||||||
Unamortized intangible assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Tradenames & trademarks | 59,106 | — | 59,106 | 59,098 | — | 59,098 | ||||||||||||||||||||||||||||||||||||||||||
Trade names & trademarks | 59,107 | — | 59,107 | 59,106 | — | 59,106 | ||||||||||||||||||||||||||||||||||||||||||
Total intangible assets, net | $ | 470,802 | $ | (224,519 | ) | $ | 246,283 | $ | 450,462 | $ | (201,916 | ) | $ | 248,546 | $ | 468,963 | $ | (243,690 | ) | $ | 225,273 | $ | 470,802 | $ | (224,519 | ) | $ | 246,283 | ||||||||||||||||||||
F-19
F-17
For the Year Ended July 31, | ||||||||
For the year ended July 31, | ||||||||
2008 | $ | 20,970 | ||||||
2007 | $ | 22,553 | 22,553 | |||||
2006 | 22,256 | 22,256 | ||||||
2005 | 22,987 |
For the Year Ended July 31, | ||||||||
2008 | $ | 20,890 | ||||||
For the year ended July 31, | ||||||||
2009 | 19,859 | $ | 19,855 | |||||
2010 | 18,788 | 18,784 | ||||||
2011 | 18,631 | 18,627 | ||||||
2012 | 18,183 | 18,179 | ||||||
2013 | 17,628 |
Long-term debt |
2007 | 2006 | |||||||
Senior notes | ||||||||
Fixed rate,Series C-E, ranging from 7.12% to 7.42% due2008-2013(1) | $ | 204,000 | $ | 241,000 | ||||
Fixed rate, 8.75%, due 2012, net of unamortized premium of $1,851 and $2,229 at 2007 and 2006, respectively(2) | 269,851 | 270,229 | ||||||
Fixed rate,Series B-C, ranging from 8.78% to 8.87%, due2007-2009(3) | 163,000 | 184,000 | ||||||
Fixed rate, 6.75% due 2014, net of unamortized discount of $609 and $700 at 2007 and 2006, respectively(4) | 249,391 | 249,300 | ||||||
Credit facilities, variable interest rates, expiring 2009 and 2010 (net of $57.8 million and $52.6 million classified as short-term borrowings at 2007 and 2006, respectively) | 120,021 | 45,453 | ||||||
Notes payable, 7.9% and 7.4% weighted average interest rates in 2007 and 2006, respectively, due 2006 to 2016, net of unamortized discount of $1,647 and $1,436 at 2007 and 2006, respectively | 8,395 | 8,238 | ||||||
Capital lease obligations | 50 | 83 | ||||||
1,014,708 | 998,303 | |||||||
Less: current portion, included in other current liabilities on the consolidated balance sheets | 2,957 | 14,758 | ||||||
$ | 1,011,751 | $ | 983,545 | |||||
2008 | 2007 | |||||||
Senior notes | ||||||||
Fixed rate,Series C-E, ranging from 7.12% to 7.42% due2008-2013(1) | $ | 204,000 | $ | 204,000 | ||||
Fixed rate, 8.75%, due 2012, net of unamortized premium of $1,471 and $1,851 at July 31, 2008 and 2007, respectively(2) | 269,471 | 269,851 | ||||||
Fixed rate, Series C, 8.87%, due 2009(3) | 73,000 | 163,000 | ||||||
Fixed rate, 6.75% due 2014, net of unamortized discount of $518 and $609 at July 31, 2008 and 2007, respectively(4) | 249,482 | 249,391 | ||||||
Credit facilities, variable interest rates, expiring 2009 and 2010 (net of $125.7 million and $57.8 million classified as short-term borrowings at July 31, 2008 and 2007, respectively) | 235,270 | 120,021 | ||||||
Notes payable, 7.9% weighted average interest rate in 2008 and 2007, due 2008 to 2016, net of unamortized discount of $1,160 and $1,647 at 2008 and 2007, respectively | 5,864 | 8,395 | ||||||
Capital lease obligations | 29 | 50 | ||||||
1,037,116 | 1,014,708 | |||||||
Less: current portion, included in other current liabilities on the consolidated balance sheets | 2,397 | 2,957 | ||||||
$ | 1,034,719 | $ | 1,011,751 | |||||
(1) | The operating partnership’s fixed rate senior notes issued in August 1998 are general unsecured obligations of the operating partnership and rank on an equal basis in right of payment with all senior indebtedness of the |
F-20
operating partnership and are senior to all subordinated indebtedness of the operating partnership. The outstanding principal amount of the series C, D and E notes are due on August 1, 2008, 2010, and 2013, respectively. In general, the operating partnership does not have the option to prepay the notes prior to maturity without incurring prepayment penalties. |
F-18
(2) | On September 24, 2002, Ferrellgas Partners issued $170.0 million of its fixed rate senior notes. On December 18, 2002, Ferrellgas Partners issued $48.0 million of its fixed rate senior notes with a debt premium of $1.7 million that will be amortized to interest expense through 2012. On June 10, 2004 Ferrellgas Partners issued $50.0 million of its fixed rate senior notes with a debt premium of $1.6 million that will be amortized to interest expense through 2012. The senior notes bear interest from the date of issuance, payable semi-annually in arrears on June 15 and December 15 of each year. | |
(3) | The operating partnership’s fixed rate senior notes issued in February 2000 are general unsecured obligations of the operating partnership and rank on an equal basis in right of payment with all senior indebtedness of the operating partnership and are senior to all subordinated indebtedness of the operating partnership. The outstanding principal amount of the | |
(4) | The operating partnership’s fixed rate senior notes issued in April 2004 are general unsecured obligations of the operating partnership and rank on an equal basis in right of payment with all senior indebtedness of the operating partnership and are senior to all subordinated indebtedness of the operating partnership. The outstanding principal amount is due on May 1, 2014. In general, the operating partnership does not have the option to prepay the notes prior to maturity without incurring prepayment penalties. |
F-19
F-21
• | the base rate, which is defined as the higher of the federal funds rate plus 0.50% or Bank of America’s prime rate (as of July 31, | |
• | the Eurodollar Rate plus a margin varying from 1.50% to 2.50% (as of July 31, |
Scheduled | Scheduled | |||||||
Annual Principal | Annual | |||||||
For the Year Ended July 31, | Payments | |||||||
Principal | ||||||||
2008 | $ | 92,957 | ||||||
Payments | ||||||||
For the year ended July 31, | ||||||||
2009 | 54,438 | $ | 54,397 | |||||
2010 | 194,167 | 169,145 | ||||||
2011 | 82,995 | 82,995 | ||||||
2012 | 268,955 | 268,915 | ||||||
2013 | 360 | |||||||
Thereafter | 321,601 | 461,511 | ||||||
Total | $ | 1,015,113 | $ | 1,037,323 | ||||
F-22F-20
Partners’ capital |
2007 | 2006 | 2008 | 2007 | |||||||||||||
Third parties(1) | 38,337,983 | 38,157,986 | 38,300,533 | 38,337,983 | ||||||||||||
Ferrell Companies(2) | 20,080,776 | 18,188,883 | 20,080,776 | 20,080,776 | ||||||||||||
FCI Trading Corp.(3) | 195,686 | 195,686 | 195,686 | 195,686 | ||||||||||||
Ferrell Propane, Inc.(4) | 51,204 | 51,204 | 51,204 | 51,204 | ||||||||||||
James E. Ferrell(5) | 4,292,025 | 4,292,025 | 4,333,475 | 4,292,025 |
(1) | These common units are listed on the New York Stock Exchange under the symbol “FGP.” | |
(2) | Ferrell Companies is the owner of the general partner and a 32% owner of Ferrellgas’ common units and thus a related party. | |
(3) | FCI Trading Corp. (“FCI Trading”) is an affiliate of the general partner and thus a related party. | |
(4) | Ferrell Propane, Inc. (“Ferrell Propane”) is controlled by the general partner and thus a related party. | |
(5) | James E. Ferrell (“Mr. Ferrell”) is the Chairman and Chief Executive Officer of the general partner and thus a related party. |
F-23F-21
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Third parties | $ | 76,562 | $ | 75,641 | $ | 70,352 | $ | 76,646 | $ | 76,562 | $ | 75,641 | ||||||||||||
Ferrell Companies | 40,162 | 36,378 | 35,608 | 40,160 | 40,162 | 36,378 | ||||||||||||||||||
FCI Trading | 391 | 391 | 391 | 392 | 391 | 391 | ||||||||||||||||||
Ferrell Propane | 102 | 102 | 102 | 104 | 102 | 102 | ||||||||||||||||||
Mr. Ferrell | 8,584 | 8,464 | 419 | 8,616 | 8,584 | 8,464 | ||||||||||||||||||
General partner | 1,271 | 1,221 | 1,079 | 1,272 | 1,271 | 1,221 | ||||||||||||||||||
$ | 127,072 | $ | 122,197 | $ | 107,951 | $ | 127,190 | $ | 127,072 | $ | 122,197 | |||||||||||||
Ferrell Companies | $ | 10,040 | $ | 10,040 | ||||
FCI Trading | 98 | 98 | ||||||
Ferrell Propane | 26 | 26 | ||||||
Mr. Ferrell | 2,146 | 2,167 | ||||||
General partner | 318 | 318 |
F-24
Derivatives |
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Fair value adjustment classified as OCI | $ | 5,055 | $ | 2,540 | $ | 70 | $ | 18,749 | $ | 5,055 | $ | 2,540 | ||||||||||||
Reclassification of net gains to statement of earnings | $ | (2,126 | ) | $ | (484 | ) | $ | (1,772 | ) | $ | (5,055 | ) | $ | (2,126 | ) | $ | (484 | ) |
F-22
F-25
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Net fair value of contracts outstanding at the beginning of the period | $ | 0 | $ | 116 | $ | 424 | ||||||
Contracts outstanding at the beginning of the period that were realized or otherwise settled during the period | 0 | (116 | ) | (9,672 | ) | |||||||
Fair value of new contracts entered into during the period | 4 | — | 9,364 | |||||||||
Unrealized gains in fair value of contracts outstanding at the end of the period | $ | 4 | $ | — | $ | 116 | ||||||
Transactions with related parties |
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Operating expense | $ | 202,824 | $ | 202,790 | $ | 207,393 | $ | 185,576 | $ | 202,824 | $ | 202,790 | ||||||||||||
General and administrative expense | $ | 26,542 | $ | 24,614 | $ | 24,242 | $ | 27,203 | $ | 26,542 | $ | 24,614 |
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Net receipts (disbursements) | $ | — | $ | — | $ | (2,699 | ) | |||||
Receipts from providing accounting services | — | 37 | 40 |
F-26
Contingencies and commitments |
F-23
F-27
Future Minimum Rental and Buyout Amounts by Fiscal Year | Future Minimum Rental and Buyout Amounts by Fiscal Year | |||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | Thereafter | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | |||||||||||||||||||||||||||||||||||||
Operating lease obligations | $ | 34,107 | $ | 23,378 | $ | 16,110 | $ | 11,076 | $ | 5,354 | $ | 16,262 | $ | 27,462 | $ | 17,314 | $ | 12,337 | $ | 6,307 | $ | 3,964 | $ | 12,790 | ||||||||||||||||||||||||
Operating lease buyouts | $ | 2,478 | $ | 11,498 | $ | 3,166 | $ | 4,853 | $ | 2,533 | $ | 859 | $ | 11,730 | $ | 3,443 | $ | 4,850 | $ | 2,779 | $ | 357 | $ | 1,185 |
Employee benefits |
F-24
F-28
Earnings per common unit |
F-25
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Net earnings (loss) available to common unitholders before discontinued operations | $ | 34,452 | $ | 24,759 | $ | (22,453 | ) | |||||
Earnings from discontinued operations (including gain on sale in 2005 of $97,001), net of minority interest and general partner interest of $2,105 in 2005 | — | — | 103,147 | |||||||||
Net earnings available to common unitholders | $ | 34,452 | $ | 24,759 | $ | 80,694 | ||||||
Weighted average common units outstanding (in thousands) | 62,755.8 | 60,459.5 | 53,945.4 | |||||||||
Basic and diluted earnings per common unit: | ||||||||||||
Net earnings (loss) available to common unitholders before discontinued operations | $ | 0.55 | $ | 0.41 | $ | (0.41 | ) | |||||
Earnings from discontinued operations (including gain sale in 2005 of $97,001), net of minority interest and general partner interest of $2,105 in 2005 | — | — | 1.91 | |||||||||
Net earnings available to common unitholders | $ | 0.55 | $ | 0.41 | $ | 1.50 | ||||||
For the Year Ended July 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Net earnings available to common unitholders | $ | 24,442 | $ | 34,452 | $ | 24,759 | ||||||
Weighted average common units outstanding (in thousands) | 62,959.5 | 62,755.8 | 60,459.5 | |||||||||
Basic and diluted net earnings available per common unit | $ | 0.39 | $ | 0.55 | $ | 0.41 |
F-29
Quarterly data (unaudited) |
For the Year Ended July 31, 2007 | For the Year Ended July 31, 2008 | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||
Revenues | $ | 376,413 | $ | 662,773 | $ | 624,162 | $ | 329,092 | $ | 394,916 | $ | 763,968 | $ | 712,090 | $ | 419,715 | ||||||||||||||||
Gross margin from propane and other gas liquids sales(a) | 110,233 | 201,988 | 190,223 | 107,810 | 106,416 | 179,932 | 165,968 | 111,047 | ||||||||||||||||||||||||
Net earnings (loss) | (29,513 | ) | 59,189 | 43,703 | (38,579 | ) | (22,900 | ) | 51,198 | 35,171 | (38,780 | ) | ||||||||||||||||||||
Net earnings (loss) available to common unitholders | (29,218 | ) | 52,932 | 41,843 | (38,193 | ) | (22,671 | ) | 47,541 | 34,819 | (38,392 | ) | ||||||||||||||||||||
Basic and diluted earnings (loss) per common unit available to common unitholders | $ | (0.47 | ) | $ | 0.84 | $ | 0.66 | $ | (0.61 | ) | $ | (0.36 | ) | $ | 0.76 | $ | 0.55 | $ | (0.61 | ) |
For the Year Ended July 31, 2006 | For the Year Ended July 31, 2007 | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||
Revenues | $ | 385,598 | $ | 652,568 | $ | 526,026 | $ | 331,278 | $ | 376,413 | $ | 662,773 | $ | 624,162 | $ | 329,092 | ||||||||||||||||
Gross margin from propane and other gas liquids sales(a) | 107,771 | 194,766 | 178,468 | 107,758 | 110,233 | 201,988 | 190,223 | 107,810 | ||||||||||||||||||||||||
Net earnings (loss) | (25,768 | ) | 58,064 | 30,941 | (38,228 | ) | (29,513 | ) | 59,189 | 43,703 | (38,579 | ) | ||||||||||||||||||||
Net earnings (loss) available to common unitholders | (25,510 | ) | 51,459 | 30,632 | (37,846 | ) | (29,218 | ) | 52,932 | 41,843 | (38,193 | ) | ||||||||||||||||||||
Basic and diluted earnings (loss) per common unit available to common unitholders | $ | (0.42 | ) | $ | 0.85 | $ | 0.51 | $ | (0.62 | ) | $ | (0.47 | ) | $ | 0.84 | $ | 0.66 | $ | (0.61 | ) |
(a) | Gross margin from |
F-30F-26
P. | Subsequent events |
F-27
F-31F-28
July 31, | July 31, | |||||||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
Cash | $ | 1,000 | $ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||||
Total assets | $ | 1,000 | $ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||||
STOCKHOLDER’S EQUITY | STOCKHOLDER’S EQUITY | STOCKHOLDER’S EQUITY | ||||||||||||||
Common stock, $1 par value; 2,000 shares authorized; 1,000 shares issued and outstanding | $ | 1,000 | $ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||||
Additional paid in capital | 4,157 | 3,713 | 5,149 | 4,157 | ||||||||||||
Accumulated deficit | (4,157 | ) | (3,713 | ) | (5,149 | ) | (4,157 | ) | ||||||||
Total stockholder’s equity | $ | 1,000 | $ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||||
F-29
For the Year Ended July 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
General and administrative expense | $ | 992 | $ | 444 | $ | 431 | ||||||
Net loss | $ | (992 | ) | $ | (444 | ) | $ | (431 | ) | |||
F-30
Additional | Total | |||||||||||||||||||
Common Stock | Paid in | Accumulated | Stockholder’s | |||||||||||||||||
Shares | Dollars | Capital | Deficit | Equity | ||||||||||||||||
July 31, 2005 | 1,000 | $ | 1,000 | $ | 3,282 | $ | (3,282 | ) | $ | 1,000 | ||||||||||
Capital contribution | — | — | 431 | — | 431 | |||||||||||||||
Net loss | — | — | — | (431 | ) | (431 | ) | |||||||||||||
July 31, 2006 | 1,000 | 1,000 | 3,713 | (3,713 | ) | 1,000 | ||||||||||||||
Capital contribution | — | — | 444 | — | 444 | |||||||||||||||
Net loss | — | — | — | (444 | ) | (444 | ) | |||||||||||||
July 31, 2007 | 1,000 | 1,000 | 4,157 | (4,157 | ) | 1,000 | ||||||||||||||
Capital contribution | — | — | 992 | — | 992 | |||||||||||||||
Net loss | — | — | — | (992 | ) | (992 | ) | |||||||||||||
July 31, 2008 | 1,000 | $ | 1,000 | $ | 5,149 | $ | (5,149 | ) | $ | 1,000 | ||||||||||
F-31
For the Year Ended July 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (992 | ) | $ | (444 | ) | $ | (431 | ) | |||
Cash used by operating activities | (992 | ) | (444 | ) | (431 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Capital contribution | 992 | 444 | 431 | |||||||||
Cash provided by financing activities | 992 | 444 | 431 | |||||||||
Change in cash | — | — | — | |||||||||
Cash — beginning of year | 1,000 | 1,000 | 1,000 | |||||||||
Cash — end of year | $ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||
F-32
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Revenues | $ | — | $ | — | $ | — | ||||||
General and administrative expense | 444 | 431 | 416 | |||||||||
Net loss | $ | (444 | ) | $ | (431 | ) | $ | (416 | ) | |||
F-33
Additional | Total | |||||||||||||||||||
Common Stock | Paid in | Accumulated | Stockholder’s | |||||||||||||||||
Shares | Dollars | Capital | Deficit | Equity | ||||||||||||||||
July 31, 2004 | 1,000 | $ | 1,000 | $ | 2,866 | $ | (2,866 | ) | $ | 1,000 | ||||||||||
Capital contribution | — | — | 416 | — | 416 | |||||||||||||||
Net loss | — | — | — | (416 | ) | (416 | ) | |||||||||||||
July 31, 2005 | 1,000 | 1,000 | 3,282 | (3,282 | ) | 1,000 | ||||||||||||||
Capital contribution | — | — | 431 | — | 431 | |||||||||||||||
Net loss | — | — | — | (431 | ) | (431 | ) | |||||||||||||
July 31, 2006 | 1,000 | 1,000 | 3,713 | (3,713 | ) | 1,000 | ||||||||||||||
Capital contribution | — | — | 444 | — | 444 | |||||||||||||||
Net loss | — | — | — | (444 | ) | (444 | ) | |||||||||||||
July 31, 2007 | 1,000 | $ | 1,000 | $ | 4,157 | $ | (4,157 | ) | $ | 1,000 | ||||||||||
F-34
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (444 | ) | $ | (431 | ) | $ | (416 | ) | |||
Cash used by operating activities | (444 | ) | (431 | ) | (416 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Capital contribution | 444 | 431 | 416 | |||||||||
Cash provided by financing activities | 444 | 431 | 416 | |||||||||
Change in cash | — | — | — | |||||||||
Cash — beginning of year | 1,000 | 1,000 | 1,000 | |||||||||
Cash — end of year | $ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||
F-35
A. | Formation |
B. | Commitment |
C. | Income taxes |
F-36F-33
F-37F-34
July 31, | July 31, | |||||||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 20,407 | $ | 14,875 | $ | 16,545 | $ | 20,407 | ||||||||
Accounts and notes receivable (net of allowance for doubtful accounts of $4,358 and $5,628 in 2007 and 2006, respectively) | 118,320 | 116,369 | ||||||||||||||
Accounts and notes receivable (net of allowance for doubtful accounts of $5,977 and $4,358 at 2008 and 2007, respectively) | 145,081 | 118,320 | ||||||||||||||
Inventories | 113,807 | 154,613 | 152,301 | 113,807 | ||||||||||||
Price risk management assets | 26,086 | 5,097 | ||||||||||||||
Prepaid expenses and other current assets | 16,103 | 14,664 | 10,251 | 11,006 | ||||||||||||
Total current assets | 268,637 | 300,521 | 350,264 | 268,637 | ||||||||||||
Property, plant and equipment, net | 720,190 | 740,101 | 685,328 | 720,190 | ||||||||||||
Goodwill | 249,481 | 246,050 | 248,939 | 249,481 | ||||||||||||
Intangible assets, net | 246,283 | 248,546 | 225,273 | 246,283 | ||||||||||||
Other assets, net | 15,360 | 8,833 | 16,817 | 15,360 | ||||||||||||
Total assets | $ | 1,499,951 | $ | 1,544,051 | $ | 1,526,621 | $ | 1,499,951 | ||||||||
LIABILITIES AND PARTNERS’ CAPITAL | LIABILITIES AND PARTNERS’ CAPITAL | LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 62,103 | $ | 82,212 | $ | 71,348 | $ | 62,103 | ||||||||
Short-term borrowings | 57,779 | 52,647 | 125,729 | 57,779 | ||||||||||||
Other current liabilities | 104,018 | 136,788 | 104,790 | 104,018 | ||||||||||||
Total current liabilities | 223,900 | 271,647 | 301,867 | 223,900 | ||||||||||||
Long-term debt | 741,900 | 713,316 | 765,248 | 741,900 | ||||||||||||
Other liabilities | 22,795 | 19,178 | 23,237 | 22,795 | ||||||||||||
Contingencies and commitments (Note N) | — | — | ||||||||||||||
Partners’ capital | ||||||||||||||||
Contingencies and commitments (Note L) | — | — | ||||||||||||||
Partners’ capital: | ||||||||||||||||
Limited partner | 501,501 | 533,095 | 413,507 | 501,501 | ||||||||||||
General partner | 5,119 | 5,435 | 4,220 | 5,119 | ||||||||||||
Accumulated other comprehensive income | 4,736 | 1,380 | 18,542 | 4,736 | ||||||||||||
Total partners’ capital | 511,356 | 539,910 | 436,269 | 511,356 | ||||||||||||
Total liabilities and partners’ capital | $ | 1,499,951 | $ | 1,544,051 | $ | 1,526,621 | $ | 1,499,951 | ||||||||
F-35
For the Year Ended July 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
Propane and other gas liquids sales | $ | 2,055,281 | $ | 1,757,423 | $ | 1,697,940 | ||||||
Other | 235,408 | 235,017 | 197,530 | |||||||||
Total revenues | 2,290,689 | 1,992,440 | 1,895,470 | |||||||||
Costs and expenses: | ||||||||||||
Cost of product sold — propane and other gas liquids sales | 1,491,918 | 1,147,169 | 1,109,177 | |||||||||
Cost of product sold — other | 136,478 | 157,223 | 122,450 | |||||||||
Operating expense | 371,819 | 380,563 | 374,585 | |||||||||
Depreciation and amortization expense | 85,521 | 87,383 | 84,953 | |||||||||
General and administrative expense | 45,612 | 44,870 | 47,689 | |||||||||
Equipment lease expense | 24,478 | 26,142 | 27,320 | |||||||||
Employee stock ownership plan compensation charge | 12,413 | 11,225 | 10,277 | |||||||||
Loss on disposal of assets and other | 11,250 | 10,822 | 7,539 | |||||||||
Operating income | 111,200 | 127,043 | 111,480 | |||||||||
Interest expense | (63,001 | ) | (64,201 | ) | (60,537 | ) | ||||||
Other interest income | 1,039 | 3,145 | 2,046 | |||||||||
Earnings before income taxes | 49,238 | 65,987 | 52,989 | |||||||||
Income tax expense | 6 | 6,560 | 3,524 | |||||||||
Net earnings | $ | 49,232 | $ | 59,427 | $ | 49,465 | ||||||
F-36
Accumulated Other | ||||||||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||
Currency | Total | |||||||||||||||||||||||
Limited | General | Risk | Translation | Pension | Partners’ | |||||||||||||||||||
Partner | Partner | Management | Adjustments | Liability | Capital | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance at July 31, 2005 | $ | 603,448 | $ | 6,151 | $ | 70 | $ | 65 | $ | (747 | ) | $ | 608,987 | |||||||||||
Contributions in connection with ESOP and stock-based compensation charges | 12,016 | 124 | — | — | — | 12,140 | ||||||||||||||||||
Quarterly distributions | (145,938 | ) | (1,489 | ) | — | — | — | (147,427 | ) | |||||||||||||||
Cash contributed by Ferrellgas Partners and the general partner | 1,538 | 16 | — | — | — | 1,554 | ||||||||||||||||||
Net assets contributed by Ferrellgas Partners and cash contributed by the general partner in connection with acquisitions | 13,066 | 133 | — | — | — | 13,199 | ||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||
Net earnings | 48,965 | 500 | — | — | — | 49,465 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | 2,540 | — | — | |||||||||||||||||||
Reclassification of derivatives to earnings | — | — | (484 | ) | — | — | ||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (29 | ) | — | ||||||||||||||||||
Tax effect on foreign currency translation adjustments | (15 | ) | ||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | (20 | ) | 1,992 | |||||||||||||||||
Comprehensive income | 51,457 | |||||||||||||||||||||||
Balance at July 31, 2006 | 533,095 | 5,435 | 2,126 | 21 | (767 | ) | 539,910 | |||||||||||||||||
Contributions in connection with ESOP and stock-based compensation charges | 11,992 | 122 | — | — | — | 12,114 | ||||||||||||||||||
Quarterly distributions | (150,522 | ) | (1,536 | ) | — | — | — | (152,058 | ) | |||||||||||||||
Cash contributed by Ferrellgas Partners and the general partner | 46,100 | 470 | — | — | — | 46,570 | ||||||||||||||||||
Net assets contributed by Ferrellgas Partners and cash contributed by the general partner in connection with acquisitions | 2,009 | 28 | — | — | — | 2,037 | ||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||
Net earnings | 58,827 | 600 | — | — | — | 59,427 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | 5,055 | — | — | |||||||||||||||||||
Reclassification of derivatives to earnings | — | — | (2,126 | ) | — | — | ||||||||||||||||||
Foreign currency translation adjustments | — | — | — | 14 | — | |||||||||||||||||||
Tax effect on foreign currency translation adjustments | (5 | ) | ||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | 418 | 3,356 | ||||||||||||||||||
Comprehensive income | 62,783 | |||||||||||||||||||||||
Balance at July 31, 2007 | 501,501 | 5,119 | 5,055 | 30 | (349 | ) | 511,356 | |||||||||||||||||
Contributions in connection with ESOP and stock-based compensation charges | 14,086 | 143 | — | — | — | 14,229 | ||||||||||||||||||
Quarterly distributions | (150,815 | ) | (1,539 | ) | — | — | — | (152,354 | ) | |||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||
Net earnings | 48,735 | 497 | — | — | — | 49,232 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | 18,749 | — | — | |||||||||||||||||||
Reclassification of derivatives to earnings | — | — | (5,055 | ) | — | — | ||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (10 | ) | — | ||||||||||||||||||
Tax effect on foreign currency translation adjustments | 6 | |||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | 116 | 13,806 | ||||||||||||||||||
Comprehensive income | 63,038 | |||||||||||||||||||||||
Balance at July 31, 2008 | $ | 413,507 | $ | 4,220 | $ | 18,749 | $ | 26 | $ | (233 | ) | $ | 436,269 | |||||||||||
F-37
For the Year Ended July 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net earnings | $ | 49,232 | $ | 59,427 | $ | 49,465 | ||||||
Reconciliation of net earnings to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization expense | 85,521 | 87,383 | 84,953 | |||||||||
Employee stock ownership plan compensation charge | 12,413 | 11,225 | 10,277 | |||||||||
Stock-based compensation charge | 1,816 | 889 | 1,863 | |||||||||
Loss on disposal of assets | 4,820 | 4,232 | 1,188 | |||||||||
Loss on transfer of accounts receivable related to the accounts receivable securitization | 10,548 | 10,384 | 10,075 | |||||||||
Deferred tax expense (benefit) | (1,650 | ) | 3,099 | 662 | ||||||||
Other | 6,151 | 4,185 | 5,542 | |||||||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | ||||||||||||
Accounts and notes receivable, net of securitization | (48,606 | ) | 1,105 | (20,412 | ) | |||||||
Inventories | (40,920 | ) | 40,984 | (57,334 | ) | |||||||
Prepaid expenses and other current assets | 755 | 1,528 | (2,293 | ) | ||||||||
Accounts payable | 8,523 | (21,295 | ) | 18,491 | ||||||||
Accrued interest expense | (3,572 | ) | (1,353 | ) | 472 | |||||||
Other current liabilities | (2,380 | ) | (26,186 | ) | 8,740 | |||||||
Other liabilities | 151 | 819 | 1,061 | |||||||||
Accounts receivable securitization: | ||||||||||||
Proceeds from new accounts receivable securitizations | 103,000 | 100,000 | 107,000 | |||||||||
Proceeds from collections reinvested in revolving period accounts receivable securitizations | 1,365,655 | 1,156,214 | 1,184,987 | |||||||||
Remittances of amounts collected as servicer of accounts receivable securitizations | (1,456,655 | ) | (1,265,214 | ) | (1,287,987 | ) | ||||||
Net cash provided by operating activities | 94,802 | 167,426 | 116,750 | |||||||||
Cash flows from investing activities: | ||||||||||||
Business acquisitions, net of cash acquired | (191 | ) | (31,715 | ) | (21,342 | ) | ||||||
Capital expenditures — technology initiative | — | — | (915 | ) | ||||||||
Capital expenditures — other | (43,823 | ) | (46,667 | ) | (42,451 | ) | ||||||
Proceeds from sale of assets | 10,874 | 9,830 | 18,950 | |||||||||
Other | (2,991 | ) | (6,540 | ) | (5,656 | ) | ||||||
Net cash used in investing activities | (36,131 | ) | (75,092 | ) | (51,414 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Distributions | (152,354 | ) | (152,058 | ) | (147,427 | ) | ||||||
Contributions from partners | — | 46,570 | 1,554 | |||||||||
Proceeds from increase in long-term debt | 115,249 | 74,568 | 45,453 | |||||||||
Reductions in long-term debt | (92,985 | ) | (60,942 | ) | (3,050 | ) | ||||||
Net additions to short-term borrowings | 67,950 | 5,132 | 32,847 | |||||||||
Cash paid for financing costs | (383 | ) | (86 | ) | — | |||||||
Net cash used in financing activities | (62,523 | ) | (86,816 | ) | (70,623 | ) | ||||||
Effect of exchange rate changes on cash | (10 | ) | 14 | (29 | ) | |||||||
Increase (decrease) in cash and cash equivalents | (3,862 | ) | 5,532 | (5,316 | ) | |||||||
Cash and cash equivalents — beginning of year | 20,407 | 14,875 | 20,191 | |||||||||
Cash and cash equivalents — end of year | $ | 16,545 | $ | 20,407 | $ | 14,875 | ||||||
F-38
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
Propane and other gas liquids sales | $ | 1,757,423 | $ | 1,697,940 | $ | 1,592,325 | ||||||
Other | 235,017 | 197,530 | 161,789 | |||||||||
Total revenues | 1,992,440 | 1,895,470 | 1,754,114 | |||||||||
Costs and expenses: | ||||||||||||
Cost of product sold — propane and other gas liquids sales | 1,147,169 | 1,109,177 | 1,052,005 | |||||||||
Cost of product sold — other | 157,223 | 122,450 | 88,293 | |||||||||
Operating expense | 380,563 | 374,585 | 365,866 | |||||||||
Depreciation and amortization expense | 87,383 | 84,953 | 83,060 | |||||||||
General and administrative expense | 44,870 | 47,689 | 42,342 | |||||||||
Equipment lease expense | 26,142 | 27,320 | 25,495 | |||||||||
Employee stock ownership plan compensation charge | 11,225 | 10,277 | 12,266 | |||||||||
Loss on disposal of assets and other | 10,822 | 7,539 | 8,673 | |||||||||
Operating income | 127,043 | 111,480 | 76,114 | |||||||||
Interest expense | (64,201 | ) | (60,537 | ) | (67,430 | ) | ||||||
Interest income | 3,145 | 2,046 | 1,891 | |||||||||
Earnings before income taxes and discontinued operations | 65,987 | 52,989 | 10,575 | |||||||||
Income tax expense | 6,560 | 3,524 | 1,447 | |||||||||
Earnings from continuing operations before discontinued operations | 59,427 | 49,465 | 9,128 | |||||||||
Earnings from discontinued operations (including gain on sale in 2005 of $97,001) | — | — | 105,252 | |||||||||
Net earnings | $ | 59,427 | $ | 49,465 | $ | 114,380 | ||||||
F-39
Accumulated Other | ||||||||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||
Currency | Total | |||||||||||||||||||||||
Limited | General | Risk | Translation | Pension | Partners’ | |||||||||||||||||||
Partner | Partner | Management | Adjustments | Liability | Capital | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance at July 31, 2004 | $ | 470,046 | $ | 4,791 | $ | 1,772 | $ | 16 | $ | (1,058 | ) | $ | 475,567 | |||||||||||
Contributions in connection with ESOP compensation charge | 12,142 | 124 | — | — | — | 12,266 | ||||||||||||||||||
Quarterly distributions | (137,643 | ) | (1,406 | ) | — | — | — | (139,049 | ) | |||||||||||||||
Cash contributed by Ferrellgas Partners and the general partner | 138,540 | 1,413 | — | — | — | 139,953 | ||||||||||||||||||
Net assets contributed by Ferrellgas Partners and the general partner in connection with acquisitions | 7,138 | 74 | — | — | — | 7,212 | ||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||
Net earnings | 113,225 | 1,155 | — | — | — | 114,380 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | 70 | — | — | |||||||||||||||||||
Reclassification of derivatives to earnings | — | — | (1,772 | ) | — | — | ||||||||||||||||||
Foreign currency translation adjustments | 49 | |||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | 311 | (1,342 | ) | |||||||||||||||||
Comprehensive income | 113,038 | |||||||||||||||||||||||
Balance at July 31, 2005 | 603,448 | 6,151 | 70 | 65 | (747 | ) | 608,987 | |||||||||||||||||
Contributions in connection with ESOP and stock-based compensation charges | 12,016 | 124 | — | — | — | 12,140 | ||||||||||||||||||
Quarterly distributions | (145,938 | ) | (1,489 | ) | — | — | — | (147,427 | ) | |||||||||||||||
Cash contributed by Ferrellgas Partners and the general partner | 1,538 | 16 | — | — | — | 1,554 | ||||||||||||||||||
Net assets contributed by Ferrellgas Partners and cash contributed by the general partner in connection with acquisitions | 13,066 | 133 | — | — | — | 13,199 | ||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||
Net earnings | 48,965 | 500 | — | — | — | 49,465 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | 2,540 | — | — | |||||||||||||||||||
Reclassification of derivatives to earnings | — | — | (484 | ) | — | — | ||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (29 | ) | — | ||||||||||||||||||
Tax effect on foreign currency translation adjustments | (15 | ) | ||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | (20 | ) | 1,992 | |||||||||||||||||
Comprehensive income | 51,457 | |||||||||||||||||||||||
Balance at July 31, 2006 | 533,095 | 5,435 | 2,126 | 21 | (767 | ) | 539,910 | |||||||||||||||||
Contributions in connection with ESOP and stock-based compensation charges | 11,992 | 122 | — | — | — | 12,114 | ||||||||||||||||||
Quarterly distributions | (150,522 | ) | (1,536 | ) | — | — | — | (152,058 | ) | |||||||||||||||
Cash contributed by Ferrellgas Partners and the general partner | 46,100 | 470 | — | — | — | 46,570 | ||||||||||||||||||
Net assets contributed by Ferrellgas Partners and cash contributed by the general partner in connection with acquisitions | 2,009 | 28 | — | — | — | 2,037 | ||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||
Net earnings | 58,827 | 600 | — | — | — | 59,427 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Net earnings on risk management derivatives | — | — | 5,055 | — | — | |||||||||||||||||||
Reclassification of derivatives to earnings | — | — | (2,126 | ) | — | — | ||||||||||||||||||
Foreign currency translation adjustments | — | — | — | 14 | — | |||||||||||||||||||
Tax effect on foreign currency translation adjustments | (5 | ) | ||||||||||||||||||||||
Pension liability adjustment | — | — | — | — | 418 | 3,356 | ||||||||||||||||||
Comprehensive income | 62,783 | |||||||||||||||||||||||
Balance at July 31, 2007 | $ | 501,501 | $ | 5,119 | $ | 5,055 | $ | 30 | $ | (349 | ) | $ | 511,356 | |||||||||||
F-40
For the Year Ended July 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net earnings | $ | 59,427 | $ | 49,465 | $ | 114,380 | ||||||||||||||
Reconciliation of net earnings to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization expense | 87,383 | 84,953 | 84,249 | |||||||||||||||||
Employee stock ownership plan compensation charge | 11,225 | 10,277 | 12,266 | |||||||||||||||||
Stock-based compensation charge | 889 | 1,863 | — | |||||||||||||||||
Loss (gain) on disposal of assets and discontinued operations | 4,232 | 1,188 | (91,494 | ) | ||||||||||||||||
Loss on transfer of accounts receivable related to the accounts receivable securitization | 10,384 | 10,075 | 5,894 | |||||||||||||||||
Deferred tax expense (benefit) | 3,099 | 662 | (768 | ) | ||||||||||||||||
Other | 4,185 | 5,542 | 1,898 | |||||||||||||||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | ||||||||||||||||||||
Accounts and notes receivable, net of securitization | 1,105 | (20,412 | ) | (43,246 | ) | |||||||||||||||
Inventories | 40,984 | (57,334 | ) | (2,421 | ) | |||||||||||||||
Prepaid expenses and other current assets | 1,528 | (2,293 | ) | (2,443 | ) | |||||||||||||||
Accounts payable | (21,295 | ) | 18,491 | (17,104 | ) | |||||||||||||||
Accrued interest expense | (1,353 | ) | 472 | (4,662 | ) | |||||||||||||||
Other current liabilities | (26,186 | ) | 8,740 | 16,646 | ||||||||||||||||
Other liabilities | 819 | 1,061 | 323 | |||||||||||||||||
Accounts receivable securitization: | ||||||||||||||||||||
Proceeds from new accounts receivable securitizations | 100,000 | 107,000 | 114,400 | |||||||||||||||||
Proceeds from collections reinvested in revolving period accounts receivable securitizations | 1,156,214 | 1,184,987 | 981,256 | |||||||||||||||||
Remittances of amounts collected as servicer of accounts receivable securitizations | (1,265,214 | ) | (1,287,987 | ) | (1,051,356 | ) | ||||||||||||||
Net cash provided by operating activities | 167,426 | 116,750 | 117,818 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Business acquisitions, net of cash acquired | (31,715 | ) | (21,342 | ) | (23,779 | ) | ||||||||||||||
Capital expenditures — technology initiative | — | (915 | ) | (10,466 | ) | |||||||||||||||
Capital expenditures — other | (46,667 | ) | (42,451 | ) | (42,348 | ) | ||||||||||||||
Proceeds from sale of discontinued operations | — | — | 144,000 | |||||||||||||||||
Proceeds from asset sales | 9,830 | 18,950 | 11,948 | |||||||||||||||||
Other | (6,540 | ) | (5,656 | ) | (2,891 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | (75,092 | ) | (51,414 | ) | 76,464 | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Distributions | (152,058 | ) | (147,427 | ) | (141,084 | ) | ||||||||||||||
Contributions from partners | 46,570 | 1,554 | 140,026 | |||||||||||||||||
Proceeds from increase in long-term debt | 74,568 | 45,453 | — | |||||||||||||||||
Reductions in long-term debt | (60,942 | ) | (3,050 | ) | (205,354 | ) | ||||||||||||||
Net additions to short-term borrowings | 5,132 | 32,847 | 19,800 | |||||||||||||||||
Cash paid for financing costs | (86 | ) | — | (1,323 | ) | |||||||||||||||
Other | — | — | 44 | |||||||||||||||||
Net cash used in financing activities | (86,816 | ) | (70,623 | ) | (187,891 | ) | ||||||||||||||
Effect of exchange rate changes on cash | 14 | (29 | ) | 49 | ||||||||||||||||
Increase (decrease) in cash and cash equivalents | 5,532 | (5,316 | ) | 6,440 | ||||||||||||||||
Cash and cash equivalents — beginning of period | 14,875 | 20,191 | 13,751 | |||||||||||||||||
Cash and cash equivalents — end of period | $ | 20,407 | $ | 14,875 | $ | 20,191 | ||||||||||||||
F-41
A. | Partnership organization and formation |
B. | Summary of significant accounting policies |
F-42F-39
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
CASH PAID FOR: | ||||||||||||||||||||||||
Interest | $ | 63,584 | $ | 58,141 | $ | 69,847 | $ | 64,922 | $ | 63,584 | $ | 58,141 | ||||||||||||
Income taxes | $ | 3,742 | $ | 990 | $ | 1,359 | $ | 3,766 | $ | 3,742 | $ | 990 | ||||||||||||
NON-CASH INVESTING ACTIVITIES: | ||||||||||||||||||||||||
Assets contributed from Ferrellgas Partners in connection with acquisitions | $ | 2,009 | $ | 13,198 | $ | 7,136 | $ | — | $ | 2,009 | $ | 13,198 | ||||||||||||
Issuance of liabilities in connection with acquisitions | $ | 2,426 | $ | 4,189 | $ | 768 | $ | — | $ | 2,426 | $ | 4,189 | ||||||||||||
Property, plant and equipment additions | $ | 1,187 | $ | 1,443 | $ | 1,041 | $ | 1,970 | $ | 1,187 | $ | 1,443 |
F-43F-40
F-41
F-44
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Current expense | $ | 3,461 | $ | 2,862 | $ | 2,215 | ||||||
Deferred expense | 3,099 | 662 | (768 | ) | ||||||||
Total income tax expense | $ | 6,560 | $ | 3,524 | $ | 1,447 | ||||||
2007 | 2006 | |||||||
Deferred tax assets | $ | 1,718 | $ | 1,440 | ||||
Deferred tax liabilities | (4,000 | ) | (650 | ) |
F-45
For the Year Ended July 31, | ||||||||
2007 | 2006 | |||||||
Operating expense | $ | 273 | $ | 438 | ||||
General and administrative expense | 616 | 1,425 | ||||||
$ | 889 | $ | 1,863 | |||||
F-46
For the Year | ||||
Ended July 31, | ||||
2005 | ||||
Net earnings, as reported | $ | 114,380 | ||
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards | (250 | ) | ||
Pro forma net earnings | $ | 114,130 | ||
F-42
For the Year Ended July 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Current expense | $ | 1,656 | $ | 3,461 | $ | 2,862 | ||||||
Deferred expense (benefit) | (1,650 | ) | 3,099 | 662 | ||||||||
Total income tax expense | $ | 6 | $ | 6,560 | $ | 3,524 | ||||||
2008 | 2007 | |||||||
Deferred tax assets | $ | 4,065 | $ | 1,718 | ||||
Deferred tax liabilities | (4,689 | ) | (4,000 | ) | ||||
Net deferred tax liability | $ | (624 | ) | $ | (2,282 | ) | ||
F-43
Business combinations |
F-47
• | Pacer-Valley Propane, LLC, based in California, acquired August 2006; | |
• | Lake Propane, based in California, acquired August 2006; |
F-44
• | Pacific Propane Service, Inc., based in California, acquired August 2006; | |
• | Twin Ports Energy, Inc., based in Wisconsin, acquired October 2006; | |
• | Getman’s Gas Company, Inc., based in New York, acquired October 2006; | |
• | Yankee Gas, LLC, based in Massachusetts, acquired October 2006; | |
• | Great Dane Propane, Inc., based in Florida, acquired October 2006; | |
• | Puget Sound Propane, based in Washington, acquired December 2006; and | |
• | Reliance Bottle Gas, Inc., based in Ohio, acquired June 2007. |
Customer tanks, buildings, land and other | $ | 11,567 | ||
Non-compete agreements | 2,072 | |||
Customer lists | 18,178 | |||
Goodwill | 3,649 | |||
Working capital | 712 | |||
$ | 36,178 | |||
• | Norwest Propane, Inc., based in Washington, acquired September 2005; | |
• | Eastern Fuels, Inc., based in North Carolina, acquired November 2005; | |
• | Petro Star, Corp., based in New York, acquired December 2005; | |
• | Titan Propane, LLC (selected cylinder exchange assets), based in New York and New Jersey, acquired February 2006; | |
• | Empire Propane Cylinder, Inc., based in New York, acquired | |
• | United Energy, Inc., based in Ohio, acquired March 2006; | |
• | Cal’s Propane Service, Inc., based in Oregon, acquired April 2006; | |
• | Gaines Propane, Inc., based in Tennessee, acquired April 2006; | |
• | Hometown Gas, Inc., based in Florida, acquired April 2006; |
F-48
• | Denman Cylinder Exchange, Ltd. and The Denman Company, Ltd. based in Texas, acquired May 2006; and | |
• | Hampton Gas Company, Inc., based in South Carolina, acquired May 2006. |
F-45
Current assets | $ | 689 | ||
Customer tanks, buildings, land and other | 9,640 | |||
Non-compete agreements | 5,598 | |||
Customer lists | 9,586 | |||
Goodwill | 13,218 | |||
Other assets | 15 | |||
$ | 38,746 | |||
Customer tanks, buildings, land and other | $ | 12,358 | ||
Non-compete agreements | 2,914 | |||
Customer lists | 12,690 | |||
Goodwill | 4,016 | |||
Other assets | 453 | |||
Current liabilities | (749 | ) | ||
$ | 31,682 | |||
F-49
For the Year | ||||
Ended July 31, | ||||
2005 | ||||
Total revenues | $ | 89,339 | ||
Cost of product sold — Propane and other gas liquids sales | 77,407 | |||
Operating expense | 2,506 | |||
Depreciation and amortization expense | 1,189 | |||
Equipment lease expense | 22 | |||
Loss on disposal of assets and other | (36 | ) | ||
Earnings before income taxes and discontinued operations | 8,251 | |||
Gain on sale of discontinued operations | 97,001 | |||
Earnings from discontinued operations | $ | 105,252 | ||
Quarterly distributions of available cash |
Supplemental financial statement information |
2007 | 2006 | 2008 | 2007 | |||||||||||||
Propane gas and related products | $ | 89,769 | $ | 130,644 | $ | 128,776 | $ | 89,769 | ||||||||
Appliances, parts and supplies | 24,038 | 23,969 | 23,525 | 24,038 | ||||||||||||
$ | 113,807 | $ | 154,613 | $ | 152,301 | $ | 113,807 | |||||||||
F-50F-46
Estimated | Estimated | |||||||||||||||||||
Useful Lives | 2007 | 2006 | Useful Lives | 2008 | 2007 | |||||||||||||||
Land | Indefinite | $ | 31,463 | $ | 31,963 | Indefinite | $ | 30,840 | $ | 31,463 | ||||||||||
Land improvements | 2-20 | 10,091 | 10,313 | 2-20 | 10,585 | 10,091 | ||||||||||||||
Buildings and improvements | 20 | 63,472 | 60,548 | 20 | 63,777 | 63,472 | ||||||||||||||
Vehicles, including transport trailers | 8-20 | 91,529 | 86,787 | 8-20 | 96,351 | 91,529 | ||||||||||||||
Bulk equipment and district facilities | 5-30 | 95,908 | 95,986 | 5-30 | 97,489 | 95,908 | ||||||||||||||
Tanks and customer equipment | 2-30 | 767,096 | 756,134 | |||||||||||||||||
Tanks, cylinders and customer equipment | 2-30 | 761,065 | 767,096 | |||||||||||||||||
Computer and office equipment | 2-5 | 111,735 | 108,102 | 2-5 | 116,873 | 111,735 | ||||||||||||||
Construction in progress | n/a | 9,281 | 6,608 | n/a | 9,575 | 9,281 | ||||||||||||||
1,180,575 | 1,156,441 | 1,186,555 | 1,180,575 | |||||||||||||||||
Less: accumulated depreciation | 460,385 | 416,340 | 501,227 | 460,385 | ||||||||||||||||
$ | 720,190 | $ | 740,101 | $ | 685,328 | $ | 720,190 | |||||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||||
Accrued interest | $ | 20,451 | $ | 21,804 | $ | 16,879 | $ | 20,451 | ||||||||
Accrued payroll | 16,680 | 18,724 | 12,621 | 16,680 | ||||||||||||
Accrued insurance | 11,602 | 10,062 | 10,987 | 11,602 | ||||||||||||
Current portion of long-term debt | 2,957 | 14,758 | ||||||||||||||
Customer deposits and advances | 21,018 | 45,837 | 25,065 | 21,018 | ||||||||||||
Other | 31,310 | 25,603 | 39,238 | 34,267 | ||||||||||||
$ | 104,018 | $ | 136,788 | $ | 104,790 | $ | 104,018 | |||||||||
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Loss on disposal of assets | $ | 4,232 | $ | 1,188 | $ | 5,543 | $ | 4,820 | $ | 4,232 | $ | 1,188 | ||||||||||||
Loss on transfer of accounts receivable related to the accounts receivable securitization | 10,384 | 10,075 | 5,894 | 10,548 | 10,384 | 10,075 | ||||||||||||||||||
Service income related to the accounts receivable Securitization | (3,794 | ) | (3,724 | ) | (2,764 | ) | ||||||||||||||||||
Service income related to the accounts receivable securitization | (4,118 | ) | (3,794 | ) | (3,724 | ) | ||||||||||||||||||
Loss on disposal of assets and other | $ | 10,822 | $ | 7,539 | $ | 8,673 | $ | 11,250 | $ | 10,822 | $ | 7,539 | ||||||||||||
For the Year Ended July 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Operating expense | $ | 171,938 | $ | 163,193 | $ | 148,125 | ||||||
Depreciation and amortization expense | 5,096 | 5,308 | 5,837 | |||||||||
Equipment lease expense | 22,703 | 23,465 | 24,356 | |||||||||
$ | 199,737 | $ | 191,966 | $ | 178,318 | |||||||
F-51F-47
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Operating expense | $ | 163,193 | $ | 148,125 | $ | 156,072 | ||||||
Depreciation and amortization expense | 5,308 | 5,837 | 6,427 | |||||||||
Equipment lease expense | 23,465 | 24,356 | 23,313 | |||||||||
$ | 191,966 | $ | 178,318 | $ | 185,812 | |||||||
Accounts receivable securitization |
2007 | 2006 | 2008 | 2007 | |||||||||||||
Retained interest | $ | 14,022 | $ | 16,373 | $ | 22,753 | $ | 14,022 | ||||||||
Accounts receivable transferred | $ | 76,250 | $ | 87,500 | $ | 97,333 | $ | 76,250 |
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Net non-cash activity | $ | 2,964 | $ | 2,579 | $ | 1,101 | $ | 6,430 | $ | 2,964 | $ | 2,579 | ||||||||||||
Bad debt expense | $ | 202 | $ | 618 | $ | 466 | $ | — | $ | 202 | $ | 618 |
F-52F-48
Goodwill and intangible assets, net |
July 31, 2007 | July 31, 2006 | July 31, 2008 | July 31, 2007 | |||||||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | Carrying | Accumulated | Carrying | Accumulated | |||||||||||||||||||||||||||||||||||||||||
Amount | Amortization | Net | Amount | Amortization | Net | Amount | Amortization | Net | Amount | Amortization | Net | |||||||||||||||||||||||||||||||||||||
GOODWILL, NET | $ | 249,481 | — | $ | 249,481 | $ | 246,050 | — | $ | 246,050 | ||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS, NET | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, net | $ | 248,939 | $ | — | $ | 248,939 | $ | 249,481 | $ | — | $ | 249,481 | ||||||||||||||||||||||||||||||||||||
Intangible assets, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortized intangible assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Customer lists | $ | 363,285 | $ | (189,314 | ) | $ | 173,971 | $ | 345,103 | $ | (171,721 | ) | $ | 173,382 | $ | 363,242 | $ | (207,107 | ) | $ | 156,135 | $ | 363,285 | $ | (189,314 | ) | $ | 173,971 | ||||||||||||||||||||
Non-compete agreements | 43,043 | (32,260 | ) | 10,783 | 40,921 | (27,605 | ) | 13,316 | 43,042 | (35,081 | ) | 7,961 | 43,043 | (32,260 | ) | 10,783 | ||||||||||||||||||||||||||||||||
Other | 5,368 | (2,945 | ) | 2,423 | 5,340 | (2,590 | ) | 2,750 | 3,572 | (1,502 | ) | 2,070 | 5,368 | (2,945 | ) | 2,423 | ||||||||||||||||||||||||||||||||
411,696 | (224,519 | ) | 187,177 | 391,364 | (201,916 | ) | 189,448 | 409,856 | (243,690 | ) | 166,166 | 411,696 | (224,519 | ) | 187,177 | |||||||||||||||||||||||||||||||||
Unamortized intangible assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Tradenames & trademarks | 59,106 | — | 59,106 | 59,098 | — | 59,098 | ||||||||||||||||||||||||||||||||||||||||||
Trade names & trademarks | 59,107 | — | 59,107 | 59,106 | — | 59,106 | ||||||||||||||||||||||||||||||||||||||||||
Total intangible assets, net | $ | 470,802 | $ | (224,519 | ) | $ | 246,283 | $ | 450,462 | $ | (201,916 | ) | $ | 248,546 | $ | 468,963 | $ | (243,690 | ) | $ | 225,273 | $ | 470,802 | $ | (224,519 | ) | $ | 246,283 | ||||||||||||||||||||
For the Year Ended July 31, | ||||
2007 | $ | 22,553 | ||
2006 | 22,256 | |||
2005 | 22,987 |
2008 | $ | 20,970 | ||
2007 | 22,553 | |||
2006 | 22,256 |
For the Year Ended July 31, | ||||
2008 | $ | 20,890 | ||
2009 | 19,859 | |||
2010 | 18,788 | |||
2011 | 18,631 | |||
2012 | 18,183 |
2009 | $ | 19,855 | ||
2010 | 18,784 | |||
2011 | 18,627 | |||
2012 | 18,179 | |||
2013 | 17,628 |
F-53F-49
Long-term debt |
2007 | 2006 | 2008 | 2007 | |||||||||||||
Senior notes | ||||||||||||||||
Fixed rate,Series C-E, ranging from 7.12% to 7.42%, due2008-2013(1) | $ | 204,000 | $ | 241,000 | $ | 204,000 | $ | 204,000 | ||||||||
Fixed rate,Series B-C, ranging from 8.78% to 8.87%, due2007-2009(2) | 163,000 | 184,000 | ||||||||||||||
Fixed rate, 6.75% due 2014, net of unamortized discount of $609 and $700 at 2007 and 2006, respectively(3) | 249,391 | 249,300 | ||||||||||||||
Credit facilities, variable interest rates, expiring 2009 and 2010 (net of $57.8 million and $52.6 million classified as short-term borrowings at 2007 and 2006, respectively) | 120,021 | 45,453 | ||||||||||||||
Notes payable, 7.9% and 7.4% weighted average interest rates in 2007 and 2006, respectively, due 2006 to 2016, net of unamortized discount of $1,647 and $1,436 at 2007 and 2006, respectively | 8,395 | 8,238 | ||||||||||||||
Fixed rate, Series C, 8.87%, due 2009(2) | 73,000 | 163,000 | ||||||||||||||
Fixed rate, 6.75% due 2014, net of unamortized discount of $518 and $609 at July 31, 2008 and 2007, respectively(3) | 249,482 | 249,391 | ||||||||||||||
Credit facilities, variable interest rates, expiring 2009 and 2010 (net of $125.7 million and $57.8 million classified as short-term borrowings at 2008 and 2007, respectively) | 235,270 | 120,021 | ||||||||||||||
Notes payable, 7.9% weighted average interest rate in 2008 and 2007, due 2008 to 2016, net of unamortized discount of $1,160 and $1,647 at 2008 and 2007, respectively | 5,864 | 8,395 | ||||||||||||||
Capital lease obligations | 50 | 83 | 29 | 50 | ||||||||||||
744,857 | 728,074 | 767,645 | 744,857 | |||||||||||||
Less: current portion, included in other current liabilities on the consolidated balance sheets | 2,957 | 14,758 | 2,397 | 2,957 | ||||||||||||
$ | 741,900 | $ | 713,316 | $ | 765,248 | $ | 741,900 | |||||||||
(1) | Ferrellgas, L.P.’s fixed rate senior notes issued in August 1998 are general unsecured obligations of Ferrellgas, L.P. and rank on an equal basis in right of payment with all senior indebtedness of Ferrellgas, L.P. and senior to all subordinated indebtedness of Ferrellgas, L.P. The outstanding principal amount of the series C, D and E notes are due on August 1, 2008, 2010, and 2013, respectively. In general, Ferrellgas, L.P. does not have the option to prepay the notes prior to maturity without incurring prepayment penalties. | |
(2) | Ferrellgas, L.P.’s fixed rate senior notes issued in February 2000 are general unsecured obligations of Ferrellgas, L.P. and rank on an equal basis in right of payment with all senior indebtedness of Ferrellgas, L.P. and are senior to all subordinated indebtedness of Ferrellgas, L.P. The outstanding principal amount of the series | |
(3) | Ferrellgas, L.P.’s fixed rate senior notes issued in April 2004 are general unsecured obligations of |
F-50
F-54
• | the base rate, which is defined as the higher of the federal funds rate plus 0.50% or Bank of America’s prime rate (as of July 31, | |
• | the Eurodollar Rate plus a margin varying from 1.50% to 2.50% (as of July 31, |
F-55F-51
Scheduled | Scheduled | |||||||
Annual Principal | Annual Principal | |||||||
For the Year Ended July 31, | Payments | Payments | ||||||
2008 | $ | 92,957 | ||||||
2009 | 54,438 | $ | 54,397 | |||||
2010 | 194,167 | 169,145 | ||||||
2011 | 82,995 | 82,995 | ||||||
2012 | 955 | 915 | ||||||
2013 | 360 | |||||||
Thereafter | 321,601 | 461,511 | ||||||
Total | $ | 747,113 | $ | 769,323 | ||||
Partner’s capital |
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Ferrellgas Partners | $ | 150,522 | $ | 145,938 | $ | 139,659 | $ | 150,815 | $ | 150,522 | $ | 145,938 | ||||||||||||
general partner | $ | 1,536 | $ | 1,489 | $ | 1,425 | ||||||||||||||||||
General partner | $ | 1,539 | $ | 1,536 | $ | 1,489 |
F-56
Derivatives |
F-52
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Fair value adjustment classified as OCI | $ | 5,055 | $ | 2,540 | $ | 70 | $ | 18,749 | $ | 5,055 | $ | 2,540 | ||||||||||||
Reclassification of net gains to statement of earnings | $ | (2,126 | ) | $ | (484 | ) | $ | (1,772 | ) | $ | (5,055 | ) | $ | (2,126 | ) | $ | (484 | ) |
F-57
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Net fair value of contracts outstanding at the beginning of the period | $ | — | $ | 116 | $ | 424 | ||||||
Contracts outstanding at the beginning of the period that were realized or otherwise settled during the period | — | (116 | ) | (9,672 | ) | |||||||
Fair value of new contracts entered into during the period | 4 | — | 9,364 | |||||||||
Unrealized gains in fair value of contracts at the end of the period | $ | 4 | $ | — | $ | 116 | ||||||
Transactions with related parties |
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Operating expense | $ | 202,824 | $ | 202,790 | $ | 207,393 | $ | 185,576 | $ | 202,824 | $ | 202,790 | ||||||||||||
General and administrative expense | $ | 26,542 | $ | 24,614 | $ | 24,242 | $ | 27,203 | $ | 26,542 | $ | 24,614 |
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Net receipts (disbursements) | $ | — | $ | — | $ | (2,699 | ) | |||||
Receipts from providing accounting services | — | 37 | 40 |
F-58
F-53
Contingencies and commitments |
F-59F-54
Future Minimum Rental and Buyout Amounts by Fiscal Year | Future Minimum Rental and Buyout Amounts by Fiscal Year | |||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | Thereafter | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | |||||||||||||||||||||||||||||||||||||
Operating lease obligations | $ | 34,107 | $ | 23,378 | $ | 16,110 | $ | 11,076 | $ | 5,354 | $ | 16,262 | $ | 27,462 | $ | 17,314 | $ | 12,337 | $ | 6,307 | $ | 3,964 | $ | 12,790 | ||||||||||||||||||||||||
Operating lease buyouts | $ | 2,478 | $ | 11,498 | $ | 3,166 | $ | 4,853 | $ | 2,533 | $ | 859 | $ | 11,730 | $ | 3,443 | $ | 4,850 | $ | 2,779 | $ | 357 | $ | 1,185 |
Employee benefits |
F-60
Quarterly data (unaudited) |
F-55
For the Year Ended July 31, 2007 | ||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | For the Year Ended July 31, 2008 | ||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||
Revenues | $ | 376,413 | $ | 662,773 | $ | 624,162 | $ | 329,092 | $ | 394,916 | $ | 763,968 | $ | 712,090 | $ | 419,715 | ||||||||||||||||
Gross margin from propane and other gas liquids sales(a) | 110,233 | 201,988 | 190,223 | 107,810 | 106,416 | 179,932 | 165,968 | 111,047 | ||||||||||||||||||||||||
Net earnings (loss) | (23,716 | ) | 65,843 | 50,211 | (32,911 | ) | (17,084 | ) | 57,854 | 41,588 | (33,126 | ) |
For the Year Ended July 31, 2006 | ||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | For the Year Ended July 31, 2007 | ||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||
Revenues | $ | 385,598 | $ | 652,568 | $ | 526,026 | $ | 331,278 | $ | 376,413 | $ | 662,773 | $ | 624,162 | $ | 329,092 | ||||||||||||||||
Gross margin from propane and other gas liquids sales(a) | 107,771 | 194,766 | 178,468 | 107,758 | 110,233 | 201,988 | 190,223 | 107,810 | ||||||||||||||||||||||||
Net earnings (loss) | (19,982 | ) | 64,702 | 37,306 | (32,561 | ) | (23,716 | ) | 65,843 | 50,211 | (32,911 | ) |
(a) | Gross margin from |
O. | Subsequent Events |
F-61F-56
F-62F-57
July 31, | July 31, | |||||||||||||||
2007 | 2006 | 2008 | 2007 | |||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
Cash | $ | 1,000 | $ | 1,000 | $ | 1,100 | $ | 1,000 | ||||||||
Total assets | $ | 1,000 | $ | 1,000 | $ | 1,100 | $ | 1,000 | ||||||||
STOCKHOLDER’S EQUITY | STOCKHOLDER’S EQUITY | STOCKHOLDER’S EQUITY | ||||||||||||||
Common stock, $1 par value; 2,000 shares authorized; 1,000 shares issued and outstanding | $ | 1,000 | $ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||||
Additional paid in capital | 2,220 | 1,776 | 3,312 | 2,220 | ||||||||||||
Accumulated deficit | (2,220 | ) | (1,776 | ) | (3,212 | ) | (2,220 | ) | ||||||||
Total stockholder’s equity | $ | 1,000 | $ | 1,000 | $ | 1,100 | $ | 1,000 | ||||||||
F-63F-58
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | ||||||||||||||||||
General and administrative expense | 444 | 431 | 416 | $ | 992 | $ | 444 | $ | 431 | |||||||||||||||
Net loss | $ | (444 | ) | $ | (431 | ) | $ | (416 | ) | $ | (992 | ) | $ | (444 | ) | $ | (431 | ) | ||||||
F-64F-59
Additional | Total | Additional | Total | |||||||||||||||||||||||||||||||||||||
Common Stock | Paid in | Accumulated | Stockholder’s | Common Stock | Paid in | Accumulated | Stockholder’s | |||||||||||||||||||||||||||||||||
Shares | Dollars | Capital | Deficit | Equity | Shares | Dollars | Capital | Deficit | Equity | |||||||||||||||||||||||||||||||
July 31, 2004 | 1,000 | $ | 1,000 | $ | 929 | $ | (929 | ) | $ | 1,000 | ||||||||||||||||||||||||||||||
Capital contribution | — | — | 416 | — | 416 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (416 | ) | (416 | ) | |||||||||||||||||||||||||||||||||
July 31, 2005 | 1,000 | 1,000 | 1,345 | (1,345 | ) | $ | 1,000 | 1,000 | $ | 1,000 | $ | 1,345 | $ | (1,345 | ) | $ | 1,000 | |||||||||||||||||||||||
Capital contribution | — | — | 431 | — | 431 | — | — | 431 | — | 431 | ||||||||||||||||||||||||||||||
Net loss | — | — | — | (431 | ) | (431 | ) | — | — | — | (431 | ) | (431 | ) | ||||||||||||||||||||||||||
July 31, 2006 | 1,000 | $ | 1,000 | $ | 1,776 | $ | (1,776 | ) | $ | 1,000 | 1,000 | 1,000 | 1,776 | (1,776 | ) | 1,000 | ||||||||||||||||||||||||
Capital contribution | — | — | 444 | — | 444 | — | — | 444 | — | 444 | ||||||||||||||||||||||||||||||
Net loss | — | — | — | (444 | ) | (444 | ) | — | — | — | (444 | ) | (444 | ) | ||||||||||||||||||||||||||
July 31, 2007 | 1,000 | $ | 1,000 | $ | 2,220 | $ | (2,220 | ) | $ | 1,000 | 1,000 | 1,000 | 2,220 | (2,220 | ) | 1,000 | ||||||||||||||||||||||||
Capital contribution | — | — | 1,092 | — | 1,092 | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (992 | ) | (992 | ) | |||||||||||||||||||||||||||||||||
July 31, 2008 | 1,000 | $ | 1,000 | $ | 3,312 | $ | (3,212 | ) | $ | 1,100 | ||||||||||||||||||||||||||||||
F-65
For the Year Ended July 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (444 | ) | $ | (431 | ) | $ | (416 | ) | |||
Cash used by operating activities | (444 | ) | (431 | ) | (416 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Capital contribution | 444 | 431 | 416 | |||||||||
Cash provided by financing activities | 444 | 431 | 416 | |||||||||
Change in cash | — | — | — | |||||||||
Cash — beginning of year | 1,000 | 1,000 | 1,000 | |||||||||
Cash — end of year | $ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||
F-66F-60
For the Year Ended July 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (992 | ) | $ | (444 | ) | $ | (431 | ) | |||
Cash used by operating activities | (992 | ) | (444 | ) | (431 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Capital contribution | 1,092 | 444 | 431 | |||||||||
Cash provided by financing activities | 1,092 | 444 | 431 | |||||||||
Change in cash | 100 | — | — | |||||||||
Cash — beginning of year | 1,000 | 1,000 | 1,000 | |||||||||
Cash — end of year | $ | 1,100 | $ | 1,000 | $ | 1,000 | ||||||
F-61
A. | Formation |
B. | Commitment |
C. | Income |
F-67F-62
Page | ||||||
Ferrellgas Partners, L.P. and Subsidiaries | ||||||
Schedule I | Parent Only Balance Sheets as of July 31, | S-2 | ||||
Schedule II | Valuation and Qualifying Accounts for the years ended July 31, 2008, 2007 | S-5 | ||||
Ferrellgas, L.P. and Subsidiaries | ||||||
Schedule II | Valuation and Qualifying Accounts for the years ended July 31, 2008, 2007 | S-6 |
S-1
July 31, | ||||||||||||||||
2007 | 2006 | July 31, | ||||||||||||||
(In thousands, except | 2008 | 2007 | ||||||||||||||
unit data) | (In thousands, except unit data) | |||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
Cash and cash equivalents | $ | 278 | $ | 1,650 | $ | 69 | $ | 278 | ||||||||
Prepaid expenses and other current assets | 669 | 670 | 673 | 669 | ||||||||||||
Investment in Ferrellgas, L.P. | 506,237 | 534,475 | 432,049 | 506,237 | ||||||||||||
Other assets, net | 2,505 | 3,129 | 1,868 | 2,505 | ||||||||||||
Total assets | $ | 509,689 | $ | 539,924 | $ | 434,659 | $ | 509,689 | ||||||||
LIABILITIES AND PARTNERS’ CAPITAL | LIABILITIES AND PARTNERS’ CAPITAL | LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||||
Other current liabilities | $ | 3,181 | $ | 3,950 | $ | 3,064 | $ | 3,181 | ||||||||
Long term debt | 269,851 | 270,229 | 269,471 | 269,851 | ||||||||||||
Other liabilities | — | |||||||||||||||
Partners’ capital | ||||||||||||||||
Common unitholders (62,957,674 and 60,885,784 units outstanding at 2007 and 2006, respectively) | 289,075 | 321,194 | ||||||||||||||
General partner (635,936 and 615,008 units outstanding at 2007 and 2006, respectively) | (57,154 | ) | (56,829 | ) | ||||||||||||
Common unitholders (62,961,674 and 62,957,674 units outstanding at 2008 and 2007, respectively) | 201,618 | 289,075 | ||||||||||||||
General partner (635,977 and 635,936 units outstanding at 2008 and 2007, respectively) | (58,036 | ) | (57,154 | ) | ||||||||||||
Accumulated other comprehensive income | 4,736 | 1,380 | 18,542 | 4,736 | ||||||||||||
Total partners’ capital | 236,657 | 265,745 | 162,124 | 236,657 | ||||||||||||
Total liabilities and partners’ capital | $ | 509,689 | 539,924 | $ | 434,659 | $ | 509,689 | |||||||||
S-2
For the Year Ended July 31, | For the Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Equity in earnings of Ferrellgas, L.P. | $ | 58,827 | $ | 49,465 | $ | 114,380 | $ | 48,735 | $ | 58,827 | $ | 49,465 | ||||||||||||
Operating expense | 275 | 258 | 326 | 259 | 275 | 258 | ||||||||||||||||||
Operating income | 58,552 | 49,207 | 114,054 | 48,476 | 58,552 | 49,207 | ||||||||||||||||||
Interest expense | (23,752 | ) | (23,698 | ) | (23,798 | ) | (23,711 | ) | (23,752 | ) | (23,698 | ) | ||||||||||||
Interest income | — | — | 3 | |||||||||||||||||||||
Other expense | — | — | (290 | ) | ||||||||||||||||||||
Income tax expense | (76 | ) | — | — | ||||||||||||||||||||
Net earnings | $ | 34,800 | $ | 25,509 | $ | 89,969 | $ | 24,689 | $ | 34,800 | $ | 25,509 | ||||||||||||
S-3
For the Year Ended July 31, | For The Year Ended July 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2008 | 2007 | 2006 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net earnings | $ | 34,800 | $ | 25,509 | $ | 89,969 | $ | 24,689 | $ | 34,800 | $ | 25,509 | ||||||||||||
Reconciliation of net earnings to net cash used in operating activities: | ||||||||||||||||||||||||
Other | (142 | ) | 340 | (613 | ) | 519 | (142 | ) | 340 | |||||||||||||||
Equity in earnings of Ferrellgas, L.P. | (58,827 | ) | (49,465 | ) | (114,380 | ) | (48,735 | ) | (58,827 | ) | (49,465 | ) | ||||||||||||
Net cash used in operating activities | (24,169 | ) | (23,616 | ) | (25,024 | ) | (23,527 | ) | (24,169 | ) | (23,616 | ) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Distributions received from Ferrellgas, L.P. | 150,522 | 145,938 | 139,657 | 150,815 | 150,522 | 145,938 | ||||||||||||||||||
Business acquisitions, net of cash acquired | — | — | (125 | ) | ||||||||||||||||||||
Cash contributed to Ferrellgas, L.P. | (46,100 | ) | (1,554 | ) | (138,539 | ) | — | (46,100 | ) | (1,554 | ) | |||||||||||||
Net cash provided by investing activities | 104,422 | 144,384 | 993 | 150,815 | 104,422 | 144,384 | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Distributions | (127,072 | ) | (122,197 | ) | (116,007 | ) | (127,190 | ) | (127,072 | ) | (122,197 | ) | ||||||||||||
Cash paid for financing costs | (367 | ) | (375 | ) | (82 | ) | (383 | ) | (367 | ) | (375 | ) | ||||||||||||
Issuance of common units, net of issuance costs of $226 and $569 in 2007 and 2005 | 44,319 | — | 136,824 | |||||||||||||||||||||
Issuance of common units (net of issuance costs of $226) | — | 44,319 | — | |||||||||||||||||||||
Proceeds from exercise of common unit options | 1,025 | 3,124 | 472 | 76 | 1,025 | 3,124 | ||||||||||||||||||
Other | 470 | 16 | 1,461 | — | 470 | 16 | ||||||||||||||||||
Net cash provided by (used in) financing activities | (81,625 | ) | (119,432 | ) | 22,668 | |||||||||||||||||||
Net cash used in financing activities | (127,497 | ) | (81,625 | ) | (119,432 | ) | ||||||||||||||||||
Increase (decrease) in cash and cash equivalents | (1,372 | ) | 1,336 | (1,363 | ) | (209 | ) | (1,372 | ) | 1,336 | ||||||||||||||
Cash and cash equivalents — beginning of year | 1,650 | 314 | 1,677 | 278 | 1,650 | 314 | ||||||||||||||||||
Cash and cash equivalents — end of year | $ | 278 | $ | 1,650 | $ | 314 | $ | 69 | $ | 278 | $ | 1,650 | ||||||||||||
S-4
Additions | Additions | |||||||||||||||||||||||||||||||||||||||
Balance at | Charged to | Deductions | Balance at | Balance at | Charged to | Deductions | Balance | |||||||||||||||||||||||||||||||||
Beginning of | Cost/ | Other | (Amounts | End of | Beginning | Cost/ | Other | (Amounts | at End | |||||||||||||||||||||||||||||||
Description | Period | Expenses | Additions | Charged-Off) | Period | of Period | Expenses | Additions | Charged-Off) | of Period | ||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||
Year ended July 31, 2008 | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 4,358 | $ | 8,092 | $ | 643 | $ | (7,116 | ) | $ | 5,977 | |||||||||||||||||||||||||||||
Year ended July 31, 2007 | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 5,628 | $ | 4,745 | $ | 419 | (6,434 | ) | $ | 4,358 | $ | 5,628 | $ | 4,745 | $ | 419 | $ | (6,434 | ) | $ | 4,358 | |||||||||||||||||||
Year ended July 31, 2006 | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 3,764 | $ | 5,141 | $ | 0 | (3,277 | ) | $ | 5,628 | $ | 3,764 | $ | 5,141 | $ | — | $ | (3,277 | ) | $ | 5,628 | |||||||||||||||||||
Year ended July 31, 2005 | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,523 | $ | 2,850 | $ | 0 | (1,609 | ) | $ | 3,764 |
S-5
Additions | Additions | |||||||||||||||||||||||||||||||||||||||
Balance at | Charged to | Deductions | Balance at | Balance at | Charged to | Deductions | Balance | |||||||||||||||||||||||||||||||||
Beginning of | Cost/ | Other | (Amounts | End of | Beginning | Cost/ | Other | (Amounts | at End | |||||||||||||||||||||||||||||||
Description | Period | Expenses | Additions | Charged-Off) | Period | of Period | Expenses | Additions | Charged-Off) | of Period | ||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||
Year ended July 31, 2008 | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 4,358 | $ | 8,092 | $ | 643 | $ | (7,116 | ) | $ | 5,977 | |||||||||||||||||||||||||||||
Year ended July 31, 2007 | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 5,628 | $ | 4,745 | $ | 419 | (6,434 | ) | $ | 4,358 | $ | 5,628 | $ | 4,745 | $ | 419 | $ | (6,434 | ) | $ | 4,358 | |||||||||||||||||||
Year ended July 31, 2006 | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 3,764 | $ | 5,141 | $ | 0 | (3,277 | ) | $ | 5,628 | $ | 3,764 | $ | 5,141 | $ | — | $ | (3,277 | ) | $ | 5,628 | |||||||||||||||||||
Year ended July 31, 2005 | ||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,523 | $ | 2,850 | $ | 0 | (1,609 | ) | $ | 3,764 |
S-6
Exhibit | Exhibit | Exhibit | ||||||
Number | Number | Description | Number | Description | ||||
2 | .1 | Contribution Agreement dated February 8, 2004, by and among FCI Trading Corp., Ferrellgas, Inc., Ferrellgas Partners, L.P. and Ferrellgas, L.P. Incorporated by reference to Exhibit 2.1 to our Current Report onForm 8-K filed February 13, 2004. | 3 | .1 | Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P., dated as of February 18, 2003. Incorporated by reference to Exhibit 4.3 to our Current Report onForm 8-K filed February 18, 2003. | |||
3 | .1 | Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P., dated as of February 18, 2003. Incorporated by reference to Exhibit 4.3 to our Current Report onForm 8-K filed February 18, 2003. | 3 | .2 | First Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P., dated as of March 8, 2003. Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed March 8, 2005. | |||
3 | .2 | First Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P., dated as of March 8, 2003. Incorporated by reference to Exhibit 3.1 to our Current Report onForm 8-K filed March 8, 2005. | 3 | .3 | Second Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P., dated as of June 29, 2005. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed June 30, 2005. | |||
3 | .3 | Second Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P., dated as of June 29, 2005. Incorporated by reference to Exhibit 4.1 to our Current Report onForm 8-K filed June 30, 2005. | 3 | .4 | Third Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. dated as of October 11, 2006. Incorporated by reference to Exhibit 3.4 to our Annual Report on Form 10-K filed October 12, 2006. | |||
3 | .4 | Third Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of Ferrellgas Partners, L.P. dated as of October 11, 2006. Incorporated by reference to Exhibit 3.4 to our Annual Report onForm 10-K filed October 12, 2006. | 3 | .5 | Certificate of Incorporation for Ferrellgas Partners Finance Corp. Incorporated by reference to Exhibit 3.2 to our Quarterly Report on Form 10-Q filed December 16, 1996. | |||
3 | .5 | Certificate of Incorporation for Ferrellgas Partners Finance Corp. Incorporated by reference to Exhibit 3.2 to our Quarterly Report onForm 10-Q filed December 16, 1996. | 3 | .6 | Bylaws of Ferrellgas Partners Finance Corp. Incorporated by reference to Exhibit 3.3 to our Quarterly Report on Form 10-Q filed June 13, 1997. | |||
3 | .6 | Bylaws of Ferrellgas Partners Finance Corp. Incorporated by reference to Exhibit 3.3 to our Quarterly Report onForm 10-Q filed June 13, 1997. | 3 | .7 | Third Amended and Restated Agreement of Limited Partnership of Ferrellgas, L.P., dated as of April 7, 2004. Incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed April 22, 2004. | |||
3 | .7 | Third Amended and Restated Agreement of Limited Partnership of Ferrellgas, L.P., dated as of April 7, 2004. Incorporated by reference to Exhibit 3.1 to our Current Report onForm 8-K filed April 22, 2004. | 3 | .8 | Certificate of Incorporation of Ferrellgas Finance Corp. Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of Ferrellgas Partners, L.P. filed February 18, 2003. | |||
3 | .8 | Certificate of Incorporation of Ferrellgas Finance Corp. Incorporated by reference to Exhibit 4.1 to the Current Report onForm 8-K of Ferrellgas Partners, L.P. filed February 18, 2003. | 3 | .9 | Bylaws of Ferrellgas Finance Corp. Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K of Ferrellgas Partners, L.P. filed February 18, 2003. | |||
3 | .9 | Bylaws of Ferrellgas Finance Corp. Incorporated by reference to Exhibit 4.2 to the Current Report onForm 8-K of Ferrellgas Partners, L.P. filed February 18, 2003. | 4 | .1 | Specimen Certificate evidencing Common Units representing Limited Partner Interests. Incorporated by reference to Exhibit A of Exhibit 4.3 to the Current Report on Form 8-K of Ferrellgas Partners, L.P. filed February 18, 2003. | |||
4 | .1 | Specimen Certificate evidencing Common Units representing Limited Partner Interests. Incorporated by reference to Exhibit A of Exhibit 4.3 to the Current Report onForm 8-K of Ferrellgas Partners, L.P. filed February 18, 2003. | 4 | .2 | Indenture dated as of September 24, 2002, with form of Note attached, among Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., and U.S. Bank National Association, as trustee, relating to $170,000,000 aggregate principal amount of the Registrant’s 83/4% Senior Notes due 2012. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed September 24, 2002. | |||
4 | .2 | Indenture dated as of September 24, 2002, with form of Note attached, among Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., and U.S. Bank National Association, as trustee, relating to $170,000,000 aggregate principal amount of the Registrants 83/4% Senior Notes due 2012. Incorporated by reference to Exhibit 4.1 to our Current Report onForm 8-K filed September 24, 2002. | 4 | .3 | Indenture dated as of April 20, 2004, with form of Note attached, among Ferrellgas Escrow LLC and Ferrellgas Finance Escrow Corporation and U.S. Bank National Association, as trustee, relating to 63/4% Senior Notes due 2014. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed April 22, 2004. | |||
4 | .3 | Indenture dated as of April 20, 2004, with form of Note attached, among Ferrellgas Escrow LLC and Ferrellgas Finance Escrow Corporation and U.S. Bank National Association, as trustee, relating to 63/4% Senior Notes due 2014. Incorporated by reference to Exhibit 4.1 to our Current Report onForm 8-K filed April 22, 2004. | 4 | .4 | Ferrellgas, L.P. Note Purchase Agreement, dated as of July 1, 1998, relating to: $109,000,000 6.99% Senior Notes, Series A, due August 1, 2005, $37,000,000 7.08% Senior Notes, Series B, due August 1, 2006, $52,000,000 7.12% Senior Notes, Series C, due August 1, 2008, $82,000,000 7.24% Senior Notes, Series D, due August 1, 2010, and $70,000,000 7.42% Senior Notes, Series E, due August 1, 2013. Incorporated by reference to Exhibit 4.4 to our Annual Report on Form 10-K filed October 29, 1998. | |||
4 | .4 | Ferrellgas, L.P. Note Purchase Agreement, dated as of July 1, 1998, relating to: $109,000,000 6.99% Senior Notes, Series A, due August 1, 2005, $37,000,000 7.08% Senior Notes, Series B, due August 1, 2006, $52,000,000 7.12% Senior Notes, Series C, due August 1, 2008, $82,000,000 7.24% Senior Notes, Series D, due August 1, 2010, and $70,000,000 7.42% Senior Notes, Series E, due August 1, 2013. Incorporated by reference to Exhibit 4.4 to our Annual Report onForm 10-K filed October 29, 1998. | 4 | .5 | Ferrellgas, L.P. Note Purchase Agreement, dated as of February 28, 2000, relating to: $21,000,000 8.68% Senior Notes, Series A, due August 1, 2006, $90,000,000 8.78% Senior Notes, Series B, due August 1, 2007, and $73,000,000 8.87% Senior Notes, Series C, due August 1, 2009. Incorporated by reference to Exhibit 4.2 to our Quarterly Report on Form 10-Q filed March 16, 2000. | |||
4 | .5 | Ferrellgas, L.P. Note Purchase Agreement, dated as of February 28, 2000, relating to: $21,000,000 8.68% Senior Notes, Series A, due August 1, 2006, $90,000,000 8.78% Senior Notes, Series B, due August 1, 2007, and $73,000,000 8.87% Senior Notes, Series C, due August 1, 2009. Incorporated by reference to Exhibit 4.2 to our Quarterly Report onForm 10-Q filed March 16, 2000. | 4 | .6 | Indenture, dated August 4, 2008, among Ferrellgas, L.P., Ferrellgas Finance Corp. and U.S. Bank National Association, as trustee. Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed August 5, 2008. | |||
4 | .6 | Registration Rights Agreement dated as of December 17, 1999, by and between Ferrellgas Partners, L.P. and Williams Natural Gas Liquids, Inc. Incorporated by reference to Exhibit 4.2 to our Current Report onForm 8-K filed December 29, 1999. |
Exhibit | Exhibit | Exhibit | ||||||
Number | Number | Description | Number | Description | ||||
4 | .7 | First Amendment to the Registration Rights Agreement dated as of March 14, 2000, by and between Ferrellgas Partners, L.P. and Williams Natural Gas Liquids, Inc. Incorporated by reference to Exhibit 4.1 to our Quarterly Report onForm 10-Q filed March 16, 2000. | 4 | .7 | Registration Rights Agreement, dated August 4, 2008, among Ferrellgas, L.P., Ferrellgas Finance Corp. and the initial purchasers named therein. Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed August 5, 2008. | |||
4 | .8 | Second Amendment to the Registration Rights Agreement dated as of April 6, 2001, by and between Ferrellgas Partners, L.P. and The Williams Companies, Inc. Incorporated by reference to Exhibit 10.3 to our Current Report onForm 8-K filed April 6, 2001. | 4 | .8 | Registration Rights Agreement dated as of December 17, 1999, by and between Ferrellgas Partners, L.P. and Williams Natural Gas Liquids, Inc. Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed December 29, 1999. | |||
4 | .9 | Third Amendment to the Registration Rights Agreement dated as of June 29, 2005, between JEF Capital Management, Inc. and Ferrellgas Partners, L.P. Incorporated by reference to Exhibit 10.1 to our Current Report ofForm 8-K filed June 30, 2005. | 4 | .9 | First Amendment to the Registration Rights Agreement dated as of March 14, 2000, by and between Ferrellgas Partners, L.P. and Williams Natural Gas Liquids, Inc. Incorporated by reference to Exhibit 4.1 to our Quarterly Report on Form 10-Q filed March 16, 2000. | |||
10 | .1 | Fifth Amended and Restated Credit Agreement dated as of April 22, 2005, by and among Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. as the general partner of the borrower, Bank of America N.A., as administrative agent and swing line lender, and the lenders and L/C issuers party hereto. Incorporated by reference to Exhibit 10.5 to our Quarterly Report onForm 10-Q filed June 8, 2005. | 4 | .10 | Second Amendment to the Registration Rights Agreement dated as of April 6, 2001, by and between Ferrellgas Partners, L.P. and The Williams Companies, Inc. Incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K filed April 6, 2001. | |||
10 | .2 | Credit Agreement dated as of May 1, 2007, by and among Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. as the general partner of the borrower, and Bank of America N.A., as administrative agent. Incorporated by reference to Exhibit 10.1 to our Current Report onForm 8-K filed May 4, 2007. | 4 | .11 | Third Amendment to the Registration Rights Agreement dated as of June 29, 2005, between JEF Capital Management, Inc. and Ferrellgas Partners, L.P. Incorporated by reference to Exhibit 10.1 to our Current Report of Form 8-K filed June 30, 2005. | |||
10 | .3 | Lender Addendum dated as of June 6, 2006, by and among Deutsche Bank Trust Company Americas as the new lender, Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. and Bank of America, N.A., as Administrative Agent. Incorporated by reference to Exhibit 10.2 to our Annual Report onForm 10-K filed October 12, 2006. | 10 | .1 | Fifth Amended and Restated Credit Agreement dated as of April 22, 2005, by and among Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. as the general partner of the borrower, Bank of America N.A., as administrative agent and swing line lender, and the lenders and L/C issuers party hereto. Incorporated by reference to Exhibit 10.5 to our Quarterly Report on Form 10-Q filed June 8, 2005. | |||
10 | .4 | Commitment Increase Agreement dated as of August 28, 2006, by and among Fifth Third Bank as the lender, Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. and Bank of America, N.A. as Administrative Agent. Incorporated by reference to Exhibit 10.3 to our Annual Report onForm 10-K filed October 12, 2006. | 10 | .2 | First Amendment to Fifth Amended and Restated Credit Agreement dated as of April 11, 2008, by and among Ferrellgas, L.P., a Delaware limited partnership (the “Borrower”), Ferrellgas Inc., a Delaware corporation and sole general partner of the Borrower (the “General Partner”), Bank of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”), Swing Line Lender and L/C Issuer, and the Lenders party hereto. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed April 14, 2008. | |||
10 | .5 | Amended and Restated Receivable Interest Sale Agreement dated June 7, 2005 between Ferrellgas, L.P., as originator, and Ferrellgas Receivables, L.L.C., as buyer. Incorporated by reference to Exhibit 10.9 to our Quarterly Report onForm 10-Q filed June 8, 2005. | 10 | .3 | Credit Agreement dated as of May 1, 2007, by and among Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. as the general partner of the borrower, Bank of America N.A., as administrative agent. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed May 4, 2007. | |||
10 | .6 | Amendment No. 1 to the Amended and Restated Receivable Interest Sale Agreement and Subordinated Note dated June 6, 2006 between Ferrellgas, L.P., as originator, and Ferrellgas Receivables, LLC, as buyer. Incorporated by reference to Exhibit 10.11 to our Quarterly Report onForm 10-Q filed on June 8, 2006. | 10 | .4 | Lender Addendum dated as of June 6, 2006, by and among Deutsche Bank Trust Company Americas as the new lender, Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. and Bank of America, N.A., as Administrative Agent. Incorporated by reference to Exhibit 10.2 to our Annual Report on Form 10-K filed October 12, 2006. | |||
10 | .7 | Amendment No. 2 to the Amended and Restated Receivable Interest Sale Agreement dated June 6, 2006 between Ferrellgas, L.P., as originator, and Ferrellgas Receivables, LLC, as buyer. . Incorporated by reference to Exhibit 10.6 to our Annual Report onForm 10-K filed October 12, 2006. | 10 | .5 | Commitment Increase Agreement dated as of August 28, 2006, by and among Fifth Third Bank as the lender, Ferrellgas, L.P. as the borrower, Ferrellgas, Inc. and Bank of America, N.A. as Administrative Agent. Incorporated by reference to Exhibit 10.3 to our Annual Report onForm 10-K filed October 12, 2006. | |||
10 | .8 | Amendment No. 3 to the Amended and Restated Receivable Interest Sale Agreement dated May 31, 2007 between Ferrellgas, L.P., as originator, and Ferrellgas Receivables, LLC, as buyer. Incorporated by reference to Exhibit 10.1 to our Current Report onForm 8-K Filed June 1, 2007. | 10 | .6 | Amended and Restated Receivable Interest Sale Agreement dated June 7, 2005 between Ferrellgas, L.P., as originator, and Ferrellgas Receivables, L.L.C., as buyer. Incorporated by reference to Exhibit 10.9 to our Quarterly Report on Form 10-Q filed June 8, 2005. | |||
10 | .9 | Second Amended and Restated Receivables Purchase Agreement dated as of June 6, 2006, by and among Ferrellgas Receivables, L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter Securitization Corporation, the financial institutions from time to time party hereto, Fifth Third Bank and JPMorgan Chase Bank, NA, as agent. Incorporated by reference to Exhibit 10.19 to our Quarterly Report onForm 10-Q filed June 8, 2006. | 10 | .7 | Amendment No. 1 to the Amended and Restated Receivable Interest Sale Agreement and Subordinated Note dated June 6, 2006 between Ferrellgas, L.P., as originator, and Ferrellgas Receivables, LLC, as buyer. Incorporated by reference to Exhibit 10.11 to our Quarterly Report on Form 10-Q filed on June 8, 2006. | |||
10 | .10 | Amendment No. 1 to Second Amended and Restated Receivables Purchase Agreement dated August 18, 2006, by and among Ferrellgas Receivables, LLC, as seller, Ferrellgas, L.P., as servicer, Jupiter Securitization Corporation, the financial institutions from time to time party hereto, Fifth Third Bank and JPMorgan Chase Bank, NA, as agent. Incorporated by reference to Exhibit 99.2 to our Current Report onForm 8-K filed August 18, 2006. | 10 | .8 | Amendment No. 2 to the Amended and Restated Receivable Interest Sale Agreement dated June 6, 2006 between Ferrellgas, L.P., as originator, and Ferrellgas Receivables, LLC, as buyer. Incorporated by reference to Exhibit 10.6 to our Annual Report on Form 10-K filed October 12, 2006. | |||
10 | .11 | Amendment No. 2 to Second Amended and Restated Receivables Purchase Agreement dated May 31, 2007, by and among Ferrellgas Receivables, LLC, as seller, Ferrellgas, L.P., as servicer, Jupiter Securitization Corporation, the financial institutions from time to time party hereto, Fifth Third Bank and JPMorgan Chase Bank, NA, as agent. Incorporated by reference to Exhibit 10.2 to our Current Report onForm 8-K filed June 1, 2007. | 10 | .9 | Amendment No. 3 to the Amended and Restated Receivable Interest Sale Agreement dated May 31, 2007 between Ferrellgas, L.P., as originator, and Ferrellgas Receivables, LLC, as buyer. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K Filed June 1, 2007. | |||
10 | .10 | Amendment No. 4 to the Amended and Restated Receivable Interest Sale Agreement dated May 5, 2008 between Ferrellgas, L.P., as originator, and Ferrellgas Receivables, LLC, as buyer. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K Filed May 6, 2008. |
Exhibit | Exhibit | Exhibit | ||||||
Number | Number | Description | Number | Description | ||||
10 | .12 | Agreement and Plan of Merger dated as of February 8, 2004, by and among Blue Rhino Corporation, FCI Trading Corp., Diesel Acquisition, LLC and Ferrell Companies, Inc. Incorporated by reference to Exhibit 99.2 to our Current Report onForm 8-K filed February 13, 2004. | 10 | .11 | Second Amended and Restated Receivables Purchase Agreement dated as of June 6, 2006, by and among Ferrellgas Receivables, L.L.C., as seller, Ferrellgas, L.P., as servicer, Jupiter Securitization Corporation, the financial institutions from time to time party hereto, Fifth Third Bank and JPMorgan Chase Bank, NA, as agent. Incorporated by reference to Exhibit 10.19 to our Quarterly Report on Form 10-Q filed June 8, 2006. | |||
10 | .13 | First amendment to the Agreement and Plan of Merger dated as of March 16, 2004, by and among Blue Rhino Corporation, FCI Trading Corp., Diesel Acquisition, LLC, and Ferrell Companies, Inc. Incorporated by reference to Exhibit 99.1 to our Current Report onForm 8-K filed April 2, 2004. | 10 | .12 | Amendment No. 1 to Second Amended and Restated Receivables Purchase Agreement dated August 18, 2006, by and among Ferrellgas Receivables, LLC, as seller, Ferrellgas, L.P., as servicer, Jupiter Securitization Corporation, the financial institutions from time to time party hereto, Fifth Third Bank and JPMorgan Chase Bank, NA, as agent. Incorporated by reference to Exhibit 99.2 to our Current Report on Form 8-K filed August 18, 2006. | |||
10 | .14 | Asset Purchase Agreement dated as of June 22, 2005 by and among Ferrellgas, L.P., Ferrellgas, Inc. and Enterprise Products Operating L.P. Incorporated by reference to Exhibit 10.1 to our Current Report onForm 8-K filed on June 23, 2005. | 10 | .13 | Amendment No. 2 to Second Amended and Restated Receivables Purchase Agreement dated May 31, 2007, by and among Ferrellgas Receivables, LLC, as seller, Ferrellgas, L.P., as servicer, Jupiter Securitization Corporation, the financial institutions from time to time party hereto, Fifth Third Bank and JPMorgan Chase Bank, NA, as agent. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed June 1, 2007. | |||
10 | .15 | Real Property Contribution Agreement dated February 8, 2004, between Ferrellgas Partners, L.P. and Billy D. Prim. Incorporated by reference to Exhibit 10.15 to our Quarterly Report onForm 10-Q filed June 14, 2004. | 10 | .14 | Amendment No. 3 to Second Amended and Restated Receivables Purchase Agreement dated May 5, 2008, by and among Ferrellgas Receivables, LLC, as seller, Ferrellgas, L.P., as servicer, Jupiter Securitization Corporation, the financial institutions from time to time party hereto, Fifth Third Bank and JPMorgan Chase Bank, NA, as agent. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed May 6, 2008. | |||
10 | .16 | Unit Purchase Agreement dated February 8, 2004, between Ferrellgas Partners, L.P. and Billy D. Prim. Incorporated by reference to Exhibit 4.5 to ourForm S-3 filed May 21, 2004. | #10 | .15 | Ferrell Companies, Inc. Supplemental Savings Plan, restated January 1, 2000. Incorporated by reference to Exhibit 99.1 to our Current Report on Form 8-K filed February 18, 2003. | |||
10 | .17 | Unit Purchase Agreement dated February 8, 2004, between Ferrellgas Partners, L.P. and James E. Ferrell. Incorporated by reference to Exhibit 99.3 to our Current Report onForm 8-K filed February 13, 2004 | #10 | .16 | Second Amended and Restated Ferrellgas Unit Option Plan. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed June 5, 2001. | |||
#10 | .18 | Ferrell Companies, Inc. Supplemental Savings Plan, restated January 1, 2000. Incorporated by reference to Exhibit 99.1 to our Current Report onForm 8-K filed February 18, 2003. | #10 | .17 | Ferrell Companies, Inc. 1998 Incentive Compensation Plan, as amended and restated effective October 11, 2004. Incorporated by reference to Exhibit 10.23 to our Annual Report on Form 10-K filed October 13, 2004. | |||
#10 | .19 | Second Amended and Restated Ferrellgas Unit Option Plan. Incorporated by reference to Exhibit 10.1 to our Current Report onForm 8-K filed June 5, 2001. | #10 | .18 | Employment Agreement between James E. Ferrell and Ferrellgas, Inc., dated July 31, 1998. Incorporated by reference to Exhibit 10.13 to our Annual Report on Form 10-K filed October 29, 1998. | |||
#10 | .20 | Ferrell Companies, Inc. 1998 Incentive Compensation Plan, as amended and restated effective October 11, 2004. Incorporated by reference to Exhibit 10.23 to our Annual Report onForm 10-K filed October 13, 2004. | #10 | .19 | Waiver to Employment, Confidentiality, and Non-Compete Agreement by and among Ferrell Companies, Inc., Ferrellgas, Inc., James E. Ferrell and Greatbanc Trust Company, dated as of December 19, 2006. Incorporated by reference to Exhibit 10.19 to our Quarterly Report on Form 10-Q filed March 9, 2007. | |||
#10 | .21 | Employment agreement between James E. Ferrell and Ferrellgas, Inc., dated July 31, 1998. Incorporated by reference to Exhibit 10.13 to our Annual Report onForm 10-K filed October 29, 1998. | #10 | .20 | Amended and Restated Employment Agreement dated October 11, 2004, by and among Ferrellgas, Inc., Ferrell Companies, Inc. and Billy D. Prim. Incorporated by reference to Exhibit 10.25 to our Annual Report on Form 10-K filed October 13, 2004. | |||
#10 | .22 | Waiver to Employment, Confidentiality, and Non-Compete Agreement by and among Ferrell Companies, Inc., Ferrellgas, Inc., James E. Ferrell and Greatbanc Trust Company, dated as of December 19, 2006. Incorporated by reference to Exhibit 10.19 to our Quarterly Report onForm 10-Q filed March 9, 2007. | #10 | .21 | Agreement and Release dated as of August 15, 2006 by and among Kenneth A. Heinz, Ferrellgas, Inc., Ferrell Companies, Inc., Ferrellgas Partners, L.P. and Ferrellgas, L.P. Incorporated by reference to Exhibit 99.1 to our Current Report on Form 8-K filed August 18, 2006. | |||
#10 | .23 | Amended and Restated Employment Agreement dated October 11, 2004, by and among Ferrellgas, Inc., Ferrell Companies, Inc. and Billy D. Prim. Incorporated by reference to Exhibit 10.25 to our Annual Report onForm 10-K filed October 13, 2004. | #10 | .22 | Amended and Restated Change In Control Agreement dated as of March 5, 2008 by and between Stephen L. Wambold and Ferrellgas, Inc. Incorporated by reference to exhibit 10.21 to our Quarterly Report on Form 10-Q filed March 7, 2008. | |||
#10 | .24 | Separation Agreement and Release dated March 9, 2006 between Timothy E. Scronce and Ferrellgas, Inc. Incorporated by reference to Exhibit 10.28 to our Quarterly Report onForm 10-Q filed March 10, 2006. | #10 | .23 | Amended and Restated Change In Control Agreement dated as of March 5, 2008 by and between Eugene D. Caresia and Ferrellgas, Inc. Incorporated by reference to exhibit 10.22 to our Quarterly Report on Form 10-Q filed March 7, 2008. | |||
#10 | .25 | Agreement and Release dated as of May 11, 2006 by and among Jeffrey B. Ward, Ferrellgas, Inc., Ferrell Companies, Inc., Ferrellgas Partners, L.P. and Ferrellgas, L.P. Incorporated by reference to Exhibit 10.1 to our Current Report onForm 8-K filed June 22, 2006. | #10 | .24 | Amended and Restated Change In Control Agreement dated as of March 5, 2008 by and between George L. Koloroutis and Ferrellgas, Inc. Incorporated by reference to exhibit 10.24 to our Quarterly Report on Form 10-Q filed March 7, 2008. | |||
#10 | .26 | Agreement and Release dated as of August 15, 2006 by and among Kenneth A. Heinz, Ferrellgas, Inc., Ferrell Companies, Inc., Ferrellgas Partners, L.P. and Ferrellgas, L.P. Incorporated by reference to Exhibit 99.1 to our Current Report onForm 8-K filed August 18, 2006. | #10 | .25 | Amended and Restated Change In Control Agreement dated as of March 5, 2008 by and between Patrick J. Walsh and Ferrellgas, Inc. Incorporated by reference to exhibit 10.25 to our Quarterly Report on Form 10-Q filed March 7, 2008. | |||
#10 | .27 | Change In Control Agreement dated as of October 9, 2006 by and between Stephen L. Wambold and Ferrellgas, Inc. Incorporated by reference to Exhibit 10.23 to our Annual Report onForm 10-K filed October 12, 2006. | ||||||
#10 | .28 | Change In Control Agreement dated as of October 9, 2006 by and between Eugene D. Caresia and Ferrellgas, Inc. Incorporated by reference to Exhibit 10.24 to our Annual Report onForm 10-K filed October 12, 2006. | ||||||
#10 | .29 | Change In Control Agreement dated as of October 9, 2006 by and between Kevin T. Kelly and Ferrellgas, Inc. . Incorporated by reference to Exhibit 10.26 to our Annual Report onForm 10-K filed October 12, 2006. | ||||||
#10 | .30 | Change In Control Agreement dated as of October 9, 2006 by and between Brian J. Kline and Ferrellgas, Inc. . Incorporated by reference to Exhibit 10.27 to our Annual Report onForm 10-K filed October 12, 2006. |
Exhibit | ||||
Number | Description | |||
#10 | Amended and Restated Change In Control Agreement dated as of | |||
#10 | Change In Control Agreement dated as of | |||
#10 | Change In Control Agreement dated as of March 5, 2008 by and between Richard V. Mayberry and Ferrellgas, Inc. Incorporated by reference to exhibit 10.28 to our Quarterly Report on Form 10-Q filed March 7, 2008. | |||
#10 | .29 | Change In Control Agreement dated as of October 9, 2006 by and between James E. Ferrell and Ferrellgas, Inc. | ||
#10 | ||||
#10 | .31 | Agreement and release dated as of March 28, 2008 by and among Kevin T. Kelly, Ferrellgas, Inc., Ferrell Companies, Inc., Ferrellgas Partners L.P. and Ferrellgas L.P. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed March 28, 2008. | ||
*#10 | .32 | First Amendment to the Ferrell Companies, Inc. Supplemental Savings Plan, restated January 1, 2000 dated as of September 26, 2008. | ||
*#10 | .33 | Services Agreement between Samson Dental Practice Management, LLC and Ferrellgas, L.P dated as of September 26, 2008. | ||
*21 | .1 | List of subsidiaries | ||
*23 | .1 | Consent of Deloitte & Touche, LLP, independent registered public accounting firm, for the certain use of its report appearing in the Annual Report onForm 10-K of Ferrellgas Partners, L.P. for the year-ended July 31, | ||
*23 | .2 | Consent of Deloitte & Touche, LLP, independent registered public accounting firm, for the certain use of its report appearing in the Annual Report onForm 10-K of Ferrellgas Partners Finance Corp. for the year-ended July 31, | ||
*31 | .1 | Certification of Ferrellgas Partners, L.P. pursuant toRule 13a-14(a) orRule 15d-14(a) of the Exchange Act. | ||
*31 | .2 | Certification of Ferrellgas Partners Finance Corp. pursuant toRule 13a-14(a) orRule 15d-14(a) of the Exchange Act. | ||
*31 | .3 | Certification of Ferrellgas, L.P. pursuant toRule 13a-14(a) orRule 15d-14(a) of the Exchange Act. | ||
*31 | .4 | Certification of Ferrellgas Finance Corp. pursuant toRule 13a-14(a) orRule 15d-14(a) of the Exchange Act. | ||
*32 | .1 | Certification of Ferrellgas Partners, L.P. pursuant to 18 U.S.C. Section 1350. | ||
*32 | .2 | Certification of Ferrellgas Partners Finance Corp. pursuant to 18 U.S.C. Section 1350. | ||
*32 | .3 | Certification of Ferrellgas, L.P. pursuant to 18 U.S.C. Section 1350. | ||
*32 | .4 | Certification of Ferrellgas Finance Corp. pursuant to 18 U.S.C. Section 1350. |
* | Filed herewith | |
# | Management contracts or compensatory plans. |