Ferrellgas Partners L.P. (NYSE: FGP) is the nation's second largest propane distributor with more than 1 million customers all over the country. The company recently released first quarter (Q1) fiscal year (FY) 2008 results, always a difficult quarter in the company's seasonal heating cycle. Q1 gross profit set a record of $131.4 million, and adjusted EBITDA rose 18% to a record $23.2 million. These numbers are quite impressive given the fact that Ferrellgas faced record wholesale costs for propane and October temperatures that were 24% above normal, reducing the need for propane heating usage by 20 million gallons.

Ferrellgas did post a seasonal net loss for Q1, but it was $6 million smaller than last year's seasonal net loss, indicating that Ferrellgas has made serious efforts to control other types of fixed costs to compensate for reduced off-season cash flow. While operating expenses edged up slightly, this increase was offset by a decrease in equipment leasing expenses. Ferrellgas is well positioned to return to its typical profit pattern in the winter heating season in Q2 FY 2008.

Ferrellgas posts record first quarter gross profit originally appeared on BloggingStocks on Thu, 13 Dec 2007 17:52:00 EST. Please see our terms for use of feeds.