Q3 2024 Ferrellgas Partners LP Earnings Call Transcript
Key Points
- Ferrellgas Partners LP (FGPR) successfully reduced fleet expenses by over 8% compared to the prior year.
- The company has made significant progress in growing its weather-agnostic customer base, particularly in Tank Exchange, Autogas, and Industrial Commercial segments.
- Blue Rhino's EBITDA increased by 19% during the third fiscal quarter, driven by higher consumer demand and strategic initiatives.
- The company has installed over 500 self-service kiosks for Blue Rhino, enhancing customer convenience and accessibility.
- Investments in technology, such as tank monitoring and telematics, have reduced costs and improved delivery efficiency, contributing to an estimated $1.2 million in annual cost reductions.
- Warm weather negatively impacted financial results, with heating degree days 15.7% warmer than normal and 9.8% warmer than the prior year quarter.
- Revenues decreased by $71.6 million due to a reduction in gallons sold, partially offset by a $52 million decrease in the cost of the product.
- Operating income per gallon decreased by 10% compared to the prior year period, primarily due to the decrease in gross profit.
- Operating expenses as a percent of total revenue increased by 16%, driven by higher personnel expenses and medical claims.
- Adjusted EBITDA decreased by $21.6 million or 17% to $104 million in the third fiscal quarter compared to the prior year quarter.
Good day, and thank you for standing by, welcome to the Ferrellgas Partners third quarter fiscal 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Tamria Zertuche, please go ahead.
Good morning. My name is Tamria Zertuche, Chief Executive Officer and President of Ferrellgas. I want to start by saying how proud I am of our more than 4,000 Ferrellgas employees. Our experienced operations professionals. They planned well and they executed even better against the weather anomaly we experienced this quarter. They managed expenses in key areas of operations, including driving fleet expenses down by over 8% when compared to prior year.
Regarding weather impacting we have taken positive steps over the last four years to create balance in our demand across the different customer segments of our business. Our focus has been on growing our
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