Ferrellgas Partners, L.P. · OTC:FGPR
Ferrellgas Partners, L.P — J.P. Morgan Global High Yield & Leveraged Finance Conference (March 2011)
23 slides from Ferrellgas Partners, L.P's conference presentation, March 2011
Slide 1: J.P. Morgan Global High Yield & Leveraged Finance Conference
J.P. Morgan Global High Yield & Leveraged Finance Conference
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer The following information contains, or may be deemed to contain, forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the fut
Slide 3: Management Presenter
Management Presenter Ryan VanWinkle Senior Vice President and Chief Financial Officer; Treasurer 3
Slide 4: Key Investment Highlights
Key Investment Highlights 9 Strong and Growing Cash Flows ¾ Historical Add-on Margin Distribution Business 9 Vast Geographic Presence/Economies of Scale 9 State of the Art Technology Platform/Operational Excellence 9 Captive/Growing Customer Base 9 Strong Management Ownership 9 Diversification Throu
Slide 5: Business Overview
Business Overview
Slide 6: Overview of Ferrellgas
Overview of Ferrellgas 9 Founded in 1939; Ferrellgas Partners, L.P. has been a publicly traded master limited partnership since 1994 (NYSE: FGP) with an equity market value of approximately $1.8 billion 9 Leading distributor of retail propane and related equipment and supplies primarily in the Unite
Slide 7: Our Brands Are Household Names In Propane
Our Brands Are Household Names In Propane Retail Propane Operations Tank Exchange Operations Logistics and Wholesale Operations 7
Slide 8: Significant Recent Events
Significant Recent Events 9 Strong/improving operational and financial performance ¾ 6% increase in Adjusted EBITDA performance – Fiscal 2010 ¾ Adjusted EBITDA performance of $266.9 million marks another record performance…a record performance 4 of the last 5 years ¾ 48% increase in Adjusted EBITDA
Slide 9: Significant Recent Events, cont’d
Significant Recent Events, cont’d 9 On November 9th, successfully priced 10-yr notes offering of $500 million refinancing partnership maturities due 2014 ¾ No material debt maturities until November 2012 and no public debt maturities until 2017 9 On November 9th, issued $30 million in partnership co
Slide 10: Ferrellgas’ Keys To Continued Success
Ferrellgas’ Keys To Continued Success 9 Capitalize on organic growth opportunities ¾ Blue Rhino tank exchange volume continues to grow – significant growth opportunity still exists with increased customer acceptance/usage ¾ Retail technology platform gives us unique ability to track success of new s
Slide 11: Keys To Continued Success (cont’d)
Keys To Continued Success (cont’d) 9 Achieve operating efficiencies through the utilization of our unique technology platforms ¾ Significant improvement in cash flow has already occurred related to enhanced margins from better pricing controls and lower operating expenses from better routing and sch
Slide 12: Nationwide Footprint – A True Competitive Advantage
Nationwide Footprint – A True Competitive Advantage 12
Slide 13: Diversification Through Tank Exchange Market
Diversification Through Tank Exchange Market 9 Blue Rhino activity helps to mitigate seasonality and provides a catalyst for growth 9 Blue Rhino tank exchange is the undisputed leader in brand awareness by customers – nearly 46,000 distribution locations nationwide 9 Tank exchange operations help to
Slide 14: Retail Propane – An Industry Ripe for Consolidation
Retail Propane – An Industry Ripe for Consolidation United 1% MFA 5,000+ Independent 1% Retailers Cenex 62% 2% Growmark 2% Inergy 4% Suburban 4% Heritage 6% Ferrellgas Amerigas 8% 10% Top 10 Propane Retailers control 38% of Market Share (1) ____________________ (1) Source: LPGas Magazine. (pro-forma
Slide 15: Centralized Operating Platform/Operational Excellence
Centralized Operating Platform/Operational Excellence 9 Enhanced operational capabilities include substantially improved customer administration, customer demand forecasting and routing and scheduling of deliveries 9 “Renaissance” technology model was fully implemented nationwide in August 2005 9 Si
Slide 16: Significant Management Ownership; Nearly 40% by Long-term Investors
Significant Management Ownership; Nearly 40% by Long-term Investors Employee Stock Ownership Trust 9 31% employee ownership Stable, Long-term (“ESOT”) through ESOP 100% Ownership Base 9 6% ownership by Ferrell Companies, Inc. (“FCI”) Chairman James E. Ferrell 20,327,666Common Units 9 Healthy distrib
Slide 17: Financial Overview
Financial Overview
Slide 18: Strong and Consistent Operating Performance
Strong and Consistent Operating Performance Fiscal year ended July 31, ($ and gallons in millions) 2007 2008 2009 2010 Gallons Retail - Sales to End Users 702.7 656.8 652.8 681.0 Wholesale - Sales to Resellers 189.2 182.0 222.0 241.6 Total 891.9 838.8 874.8 922.6 Total revenues $1,992.4 $2,290.7 $2,
Slide 19: Historical Financial Performance
Historical Financial Performance Gross Profit ($ and CPG) Adjusted EBITDA ($ and CPG) ($ in millions) ($ in millions) 26.6¢ 26.5¢ 28.7¢ 28.9¢ $1,200 100¢ $400 30¢ 81.1¢ 23.7¢ 77.1¢ 79.0¢ 79.4¢ $350 $1,000 72.9¢ 80¢ $300 16.9¢ $266.9 $800 57.7¢ $709.3 $732.9 $237.4 $251.4 $663.8 $688.0 $662.3 $250 $2
Slide 20: Another Record Year for Ferrellgas!
Another Record Year for Ferrellgas! 97% 98% 98% 94% 94% 89% $266.9 $251.4 $237.4 $216.1 $222.2 $180.2 2005 2006 2007 2008 2009 2010 Adjusted EBITDA Total Degree Days As % of Normal Degree Days Improvements driven by increased sales efforts, margin enhancements and back-office/lease expense reduction
Slide 21: Current Debt Maturity Schedule
Current Debt Maturity Schedule Debt maturity schedule ($ in millions) Principal Amount 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Ferrellgas, L.P. Credit Facility $400.0 ******* Accounts Receivable Securitization $145.0 ******** 9.125% Senior notes due 2017 300.0 300.0 New Senior notes d
Slide 22: Key Investment Highlights
Key Investment Highlights 9 Strong and Growing Cash Flows ¾ Historical Add-on Margin Distribution Business 9 Vast Geographic Presence/Economies of Scale 9 State of the Art Technology Platform/Operational Excellence 9 Captive/Growing Customer Base 9 Strong Management Ownership 9 Diversification Throu
Slide 23: Questions and Answers
Questions and Answers