UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Earliest Event Reported: June 8, 2004
Date of Report: June 8, 2004
Ferrellgas Partners, L.P.
Ferrellgas Partners Finance Corp.
Ferrellgas, L.P.
Ferrellgas Finance Corp.
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(Exact name of registrants as specified in their charters)
Delaware 001-11331 43-1698480
Delaware 333-06693 43-1742520
Delaware 000-50182 43-1698481
Delaware 000-50183 14-1866671
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(States or other Commission file (I.R.S. Employer
jurisdictions of numbers IdentificationNos.)
incorporation or
organization)
One Liberty Plaza, Liberty, Missouri 64068
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(Address of principal executive offices) (Zip Code)
Registrants' telephone number, including area code: (816) 792-1600
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE
On June 4, 2004, Ferrellgas Partners, L.P. and Ferrellgas Partners Finance
Corp., acting as co-obligors and co-issuers, priced a public debt offering of
$50.0 million in aggregate principal amount of 8-3/4% Senior Notes due 2012. The
Senior Notes will be issued under the issuers' effective shelf registration
statement and, subject to particular closing conditions, is expected to close on
June 10, 2004. The net proceeds received by the issuers will be contributed to
Ferrellgas, L.P. to enable it to reduce borrowings outstanding under its bank
credit facility.
The issuers anticipate receiving net proceeds of approximately $51.1 million
from the public offering, based on an offering price of 103.25% per note and
after deducting underwriting discounts and commissions. A consent from Ernst &
Young LLP related to this offering is filed as Exhibit 23.1 to this Current
Report.
This filing does not constitute an offer to sell nor the solicitation of an
offer to buy these securities. No offer, solicitaion or sale of these securities
will occur in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qulaification under the
securities laws of such state or jurisdiction.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
The Exhibit listed in the Index to Exhibits is filed as part
of this Current Report on Form 8-K.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Financial Results for the Third Fiscal Quarter ended April 30, 2004
The following are selected financial results of Ferrellgas Partners, L.P.
and its subsidiaries, on a consolidated basis, for its third quarter ended April
30, 2004:
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
(unaudited)
ASSETS April 30, 2004 July 31, 2003
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Current Assets:
Cash and cash equivalents $ 21,027 $ 11,154
Accounts and notes receivable, net 147,211 56,742
Inventories 78,871 69,077
Prepaid expenses and other current assets 12,942 8,306
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Total Current Assets 260,051 145,279
Property, plant and equipment, net 785,050 684,917
Goodwill 259,391 124,190
Intangible assets, net 270,910 98,157
Other assets 14,608 8,853
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Total Assets $1,590,010 $1,061,396
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LIABILITIES AND PARTNERS' CAPITAL
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Current Liabilities:
Accounts payable $ 94,314 $ 59,454
Other current liabilities 83,572 89,687
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Total Current Liabilities 177,886 149,141
Long-term debt 1,113,762 888,226
Other liabilities 21,216 18,747
Contingencies and commitments - -
Minority interest 5,051 2,363
Partners' Capital:
Senior unitholder (1,994,146 units outstanding at both April 2004
and July 2003 - liquidation preference $79,766 at both 79,766 79,766
April 2004 and July 2003)
Common unitholders (48,771,875 and 37,673,455 units outstanding 250,767 (15,602)
at April 2004 and July 2003, respectively)
General partner unitholder (512,788 and 400,683 units outstanding
at April 2004 and July 2003, respectively) (56,647) (59,277)
Accumulated other comprehensive loss (1,791) (1,968)
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Total Partners' Capital 272,095 2,919
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Total Liabilities and Partners' Capital $ 1,590,010 $ 1,061,396
=================== ===================
FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per unit data)
(Unaudited)
Three months ended April 30 Nine months ended April 30
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2004 2003 2004 2003
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Revenues:
Propane and other gas liquids sales $ 368,264 $ 351,338 $1,057,751 $ 985,539
Other 21,883 18,027 69,591 64,606
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Total revenues 390,147 369,365 1,127,342 1,050,145
Cost of product sold 234,331 207,934 680,479 586,324
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Gross profit 155,816 161,431 446,863 463,821
Operating expense 80,858 79,121 233,141 227,226
Depreciation and amortization expense 13,270 10,563 37,130 30,719
General and administrative expense 7,888 7,202 23,761 21,863
Equipment lease expense 5,029 4,990 14,272 16,510
Employee stock ownership plan compensation charge 2,042 1,619 5,990 4,653
Loss on disposal of assets and other 925 1,985 4,477 3,781
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Operating income 45,804 55,951 128,092 159,069
Interest expense (17,998) (16,548) (52,083) (47,328)
Interest income 459 424 1,260 850
Early extinguishment of debt expense - - - (7,052)
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Earnings before income taxes,
minority interest and cumulative
effect of change in accounting principle 28,265 39,827 77,269 105,539
Income taxes 17 - 17 -
Minority interest 336 454 931 1,276
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Earnings before cumulative effect of
change in accounting principle 27,912 39,373 76,321 104,263
Cumulative effect of change in
accounting principle, net of
minority interest of $28 - - - (2,754)
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Net earnings 27,912 39,373 76,321 101,509
Distribution to senior unitholder 1,994 2,775 5,982 8,300
Net earnings available to general partner 259 366 703 932
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Net earnings available to common unitholders $ 25,659 $ 36,232 $ 69,636 $ 92,277
============ ============= ============ ============
Basic earnings per common unit:
Earnings before cumulative effect of change
in accounting principle $ 0.63 $ 1.00 $ 1.78 $ 2.62
Net earnings available to common unitholders $ 0.63 $ 1.00 $ 1.78 $ 2.55
The information contained in this Item 12 is to be deemed "filed" with the
SEC under the Exchange Act and is intended to be incorporated by reference into
the Securities Act filings of Ferrellgas Partners, L.P., Ferrellgas Partners
Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance Corp.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FERRELLGAS PARTNERS, L.P.
By Ferrellgas, Inc., its general partner
June 8, 2004 By /s/ Kevin T. Kelly
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Kevin T. Kelly
Senior Vice President and
Chief Financial Officier
FERRELLGAS PARTNERS FINANCE CORP.
June 8, 2004 By /s/ Kevin T. Kelly
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Kevin T. Kelly
Senior Vice President and
Chief Financial Officier
FERRELLGAS, L.P.
By Ferrellgas, Inc., its general partner
June 8, 2004 By /s/ Kevin T. Kelly
------------------------------------
Kevin T. Kelly
Senior Vice President and
Chief Financial Officier
FERRELLGAS FINANCE CORP.
June 8, 2004 By /s/ Kevin T. Kelly
------------------------------------
Kevin T. Kelly
Senior Vice President and
Chief Financial Officier
INDEX TO EXHIBITS
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Exhibit No. Description of Exhibit
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23.1 Consent of Ernst & Young LLP, independent auditors, for the
certain use of its report appearing in the Current Report on
Form 8-K of Ferrellgas Partners, L.P., Ferrellgas Partners
Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance Corp.
as filed with the SEC on April 22, 2004.