(Source: PRNewswire-FirstCall)OVERLAND PARK, Kan., June 8 /PRNewswire-FirstCall/ -- Ferrellgas Partners, L.P. , one of the largest distributors of propane, today reported Adjusted EBITDA of $82.2 million for the third fiscal quarter ended April 30, compared with $85.1 million the year before for the same fiscal quarter, with the decrease primarily attributable to warmer weather. The partnership pointed out that despite warmer temperatures in the quarter, Adjusted EBITDA approached planned levels.

For the nine months, Adjusted EBITDA increased 13% to $238.9 million from $211.5 million a year ago. "Looking ahead, we anticipate improvement in the fourth fiscal quarter over the year-earlier Adjusted EBITDA of $10.4 million," noted Chairman and Chief Executive Officer James Ferrell. "Consequently, our Adjusted EBITDA target for the full fiscal year, ending July 31, is in the range of $250 million." Adjusted EBITDA last fiscal year was $222 million and was a record $237 million in fiscal 2007.

Mr. Ferrell explained, "In light of the third quarter's weather, which was four percent warmer than normal and five percent warmer than last year, our results were certainly gratifying. Moreover, temperatures in February, the most important month in the quarter, were seven percent warmer than normal and a year ago."

Third quarter revenues decreased 21 percent to $561.1 million from $712.1 million, reflecting the 35 percent decrease in the cost of propane and other gas liquids to $295.9 million from $455.4 million. As such, margins expanded in the quarter significantly, addressing weather impacted propane sales volumes that were off 5 percent to 239.2 million gallons, versus 252.1 million gallons in the prior-year quarter.

President and Chief Operating Officer Steve Wambold pointed out, "Further offsetting the impact of warm weather was our continued tight rein on costs." For instance, during the third fiscal quarter, general and administrative expense and equipment lease expense declined 22 percent and 29 percent, respectively. "In fact, operating income for the quarter was up modestly, to $57.3 million from $57.0 million the year before." Net income for the quarter decreased to $32.9 million or $0.48 per unit, from $35.2 million, or $0.55 per unit.

Commenting on the fourth-quarter outlook, Mr. Wambold emphasized, "Our Blue Rhino brand is expected to be the key driver toward higher earnings. With the grilling season well under way, its initial results have been very encouraging. Blue Rhino's units increased at a double-digit clip during May and is well positioned for further growth, with more than 43,000 locations." He added, "We also expect to continue to benefit from our deeply ingrained cost-control initiatives."

Mr. Wambold concluded, "We are also encouraged by the execution of our commitment to profitable growth, both organically and through acquisitions. Organic growth continues to be fueled by our opening more offices and providing first-class customer service. As far as acquisitions, we are seeing more opportunities, but we will maintain a disciplined approach that demands that those opportunities meet strict criteria."

Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., serves approximately one million customers in all 50 states, the District of Columbia, and Puerto Rico. Ferrellgas employees indirectly own more than 20 million common units of the partnership through an employee stock ownership plan. More information about the partnership can be found online at http://www.ferrellgas.com/.

Statements in this release concerning expectations for the future are forward-looking statements. A variety of known and unknown risks, uncertainties and other factors could cause results, performance, and expectations to differ materially from anticipated results, performance and expectations. These risks, uncertainties and other factors are discussed in the Form 10-K of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance Corp. for the fiscal year ended July 31, 2008, and other documents filed from time to time by these entities with the Securities and Exchange Commission.

   Contact:        Tom Colvin, Investor Relations, (913) 661-1530        Jim Saladin, Media Relations, (913) 661-1833                      FERRELLGAS PARTNERS, L.P.  AND SUBSIDIARIES                           CONSOLIDATED BALANCE SHEETS                        (in thousands, except unit data)                                   (unaudited)    ASSETS                                      April 30, 2009  July 31, 2008   ------                                      --------------  -------------    Current Assets:     Cash and cash equivalents                        $12,691        $16,614     Accounts and notes receivable, net               168,934        145,081     Inventories                                      109,998        152,301     Price risk management assets                          57         26,086     Prepaid expenses and other current assets         14,626         10,924                                                       ------         ------       Total Current Assets                           306,306        351,006    Property, plant and equipment, net                 673,353        685,328   Goodwill                                           248,939        248,939   Intangible assets, net                             214,243        225,273   Other assets, net                                   18,612         18,685                                                       ------         ------       Total Assets                                $1,461,453     $1,529,231                                                   ==========     ==========     LIABILITIES AND PARTNERS' CAPITAL   ---------------------------------    Current Liabilities:     Accounts payable                                 $81,991        $71,348     Short term borrowings                             41,580        125,729     Price risk management liabilities                 33,835          7,337     Other current liabilities (a)                    252,086        100,517                                                      -------        -------       Total Current Liabilities                      409,492        304,931    Long-term debt (a)                                 848,295      1,034,719   Other liabilities                                   19,019         23,237   Contingencies and commitments                                           -   Minority interest                                    5,000          4,220    Partners' Capital:    Common unitholders (68,178,103 and     62,961,674 units outstanding at     April 2009 and July 2008, respectively)          270,972        201,618    General partner unitholder (688,668     and 635,977 units outstanding at     April 2009 and July 2008, respectively)          (57,335)       (58,036)    Accumulated other comprehensive     income (loss)                                    (33,990)        18,542                                                      -------         ------       Total Partners' Capital                        179,647        162,124                                                      -------        -------       Total Liabilities and Partners' Capital     $1,461,453     $1,529,231                                                   ==========     ==========    (a)  The principal difference between the Ferrellgas Partners, L.P.        balance sheet and that of Ferrellgas, L.P., is $268 million of        8 3/4% notes which are liabilities of Ferrellgas Partners, L.P. and        not of Ferrellgas, L.P.                    FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES                    CONSOLIDATED STATEMENTS OF EARNINGS    FOR THE THREE, NINE AND TWELVE MONTHS ENDED APRIL 30, 2009 AND 2008                    (in thousands, except per unit data)                               (unaudited)                  Three months         Nine months           Twelve months                ended April 30,      ended April 30,       ended April 30,                ----      ----       ----      ----        ----      ----                2009      2008       2009      2008        2009      2008                ----      ----       ----      ----        ----      ----   Revenues:     Propane      and other      gas      liquids      sales   $461,850 $621,343 $1,546,274 $1,664,734 $1,936,821 $1,963,425     Other      99,283   90,747    210,558    206,240    239,726    236,641                ------   ------    -------    -------    -------    -------     Total      revenues 561,133  712,090  1,756,832  1,870,974  2,176,547  2,200,066    Cost of    product sold:     Propane      and other      gas      liquids      sales    295,881  455,375  1,042,153  1,212,418  1,321,653  1,403,299     Other      75,714   61,850    136,153    121,232    151,399    136,416                ------   ------    -------    -------    -------    -------    Gross    profit     189,538  194,865    578,526    537,324    703,495    660,351    Operating    expense     94,993   93,349    296,920    274,828    394,170    368,442   Depreci-    ation    and    amortiz-    ation    expense     20,635   21,443     62,170     63,883     83,808     85,330   General    and    admini-    strative    expense      8,520   10,947     29,367     33,855     41,124     45,848   Equipment    lease    expense      4,282    5,990     14,418     18,484     20,412     24,853   Employee    stock    ownership    plan    compen-    sation    charge       1,460    3,447      4,865      9,693      7,585     12,617   Loss on    disposal    of assets    and other    2,323    2,662      8,924      8,729     11,445      9,959                 -----    -----      -----      -----     ------      -----    Operating    income      57,325   57,027    161,862    127,852    144,951    113,302    Interest    expense    (22,027) (21,214)   (69,090)   (66,351)   (89,451)   (88,061)   Other    income    (expense),    net           (190)     350     (1,351)     1,348     (1,660)     1,622                  ----      ---     ------      -----     ------      -----    Earnings    before    income    taxes and    minority    interest    35,108   36,163     91,421     62,849     53,840     26,863    Income tax    expense -    current      1,572      243      2,309        600      3,441        575   Income tax    expense    (benefit)    - deferred     275      329        404     (2,052)       806        899   Minority    interest (a)   397      420      1,079        832        744        499                   ---      ---      -----        ---        ---        ---    Net earnings 32,864   35,171     87,629     63,469     48,849     24,890    Net earnings    available    to general    partner        329      352        876        635        488        249                   ---      ---        ---        ---        ---        ---    Net earnings    available    to common    unit-    holders    $32,535  $34,819    $86,753    $62,834    $48,361    $24,641               =======  =======    =======    =======    =======    =======    Earnings    Per Unit   ---------   Basic and    diluted    net earnings    available    per common    unit         $0.48    $0.55      $1.34      $1.00      $0.75      $0.39    Weighted    average    common    units    out-    standing  67,809.3 62,958.9   64,650.2   62,958.7   64,224.6   62,958.1                 Supplemental Data and Reconciliation of Non-GAAP Items:                     Three months        Nine months         Twelve months                   ended April 30,     ended April 30,     ended April 30,                    ----     ----      ----      ----      ----      ----                    2009     2008      2009      2008      2009      2008                    ----     ----      ----      ----      ----      ----     Net earnings    $32,864  $35,171   $87,629   $63,469   $48,849   $24,890     Income tax      expense      (benefit)      1,847      572     2,713    (1,452)    4,247     1,474     Interest       expense      22,027   21,214    69,090    66,351    89,451    88,061     Depreciation      and      amortization      expense       20,635   21,443    62,170    63,883    83,808    85,330     Other      income      (expense),      net              190     (350)    1,351    (1,348)    1,660    (1,622)                       ---     ----     -----    ------     -----    ------   EBITDA           77,563   78,050   222,953   190,903   228,015   198,133     Employee      stock      ownership      plan      compensation      charge         1,460    3,447     4,865     9,693     7,585    12,617     Unit and      stock-based      compensation      charge (b)       452      483     1,109     1,383     1,542     1,107     Loss on      disposal of      assets and      other          2,323    2,662     8,924     8,729    11,445     9,959     Minority       interest        397      420     1,079       832       744       499                       ---      ---     -----       ---       ---       ---   Adjusted     EBITDA (c)     82,195   85,062   238,930   211,540   249,331   222,315     Net cash      interest      expense (d)  (21,547) (22,098)  (68,476)  (68,196)  (90,061)  (90,351)     Maintenance      capital      expenditures      (e)           (4,785)  (5,590)  (17,327)  (15,058)  (22,863)  (18,248)     Cash paid      for taxes       (537)     (48)     (869)   (1,327)   (3,383)   (2,192)     Proceeds      from asset      sales          1,973    2,415     6,878     8,665     9,087    11,426                     -----    -----     -----     -----     -----    ------   Distributable    cash flow to    equity    investors (f)  $57,299  $59,741  $159,136  $135,624  $142,111  $122,950                   =======  =======  ========  ========  ========  ========    Propane gallons    sales     Retail -      Sales to      End Users    183,683  204,683   556,078   567,247   645,663   658,808     Wholesale -      Sales to      Resellers     55,523   47,427   169,293   131,412   219,896   176,350                    ------   ------   -------   -------   -------   -------     Total propane      gallons      sales        239,206  252,110   725,371   698,659   865,559   835,158                   =======  =======   =======   =======   =======   =======    (a)  Amounts allocated to the general partner for its 1.0101% interest in        the operating partnership, Ferrellgas, L.P.   (b)  Statement of Financial Accounting Standards ("SFAS") No. 123( R),        "Share-Based Payment" requires that the cost resulting from all        share-based payment transactions be recognized in the financial        statements. Share-based payment transactions resulted in a non-cash        compensation charge of $0.2 million and $0.1 million to operating        expense for the three months ended April 30, 2009 and 2008,        respectively, $0.4 million and $0.4 million for the nine months        ending April 30, 2009 and 2008, respectively, and $0.5 million and        $0.4 million for the twelve months ending April 30, 2009 and 2008,        respectively. A non-cash compensation charge of $0.3 million and $0.3        million was recorded to general and administrative expense for the        three months ended April 30, 2009 and 2008, respectively, $0.7        million and $1.0 million for the nine months ended April 30, 2009 and        2008, respectively, and $1.0 million and $0.7 million        for the twelve months ended April 30, 2009 and 2008, respectively,   (c)  Management considers Adjusted EBITDA to be a chief measurement of the        partnership's overall economic performance and return on invested        capital. Adjusted EBITDA is calculated as earnings before interest,        income taxes, depreciation and amortization, employee stock ownership        plan compensation charge, unit and stock-based compensation charge,        loss on disposal of assets and other, minority interest, and other        non-cash and non-operating charges. Management believes the        presentation of this measure is relevant and useful because it allows        investors to view the partnership's performance in a manner        similar to the method management uses, adjusted for items management        believes are unusual or non-recurring, and makes it easier to compare        its results with other companies that have different financing and        capital structures. In addition, management believes this measure is        consistent with the manner in which the partnership's lenders and        investors measure its overall performance and liquidity, including        its ability to pay quarterly equity distributions, service its long-        term debt and other fixed obligations and fund its capital        expenditures and working capital requirements. This method of        calculating Adjusted EBITDA may not be consistent with that of other        companies and should be viewed in conjunction with measurements that        are computed in accordance with GAAP.   (d)  Net cash interest expense is the sum of interest expense less        non-cash interest expense and other income (expense), net. This        amount also includes interest expense related to the accounts        receivable securitization facility.   (e)  Maintenance capital expenditures include capitalized expenditures        for betterment and replacement of property, plant and equipment.   (f)  Management considers Distributable cash flow to equity investors a        meaningful non-GAAP measure of the partnership's ability to declare        and pay quarterly distributions to common unitholders. Distributable        cash flow to equity investors, as management defines it, may not be        comparable to distributable cash flow or similarly titled measures        used by other corporations and partnerships.  

Ferrellgas Partners, L.P.

CONTACT: Tom Colvin, Investor Relations, +1-913-661-1530, or JimSaladin, Media Relations, +1-913-661-1833, both of Ferrellgas Partners, L.P.

Web Site: http://www.ferrellgas.com/

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