Cornerstone Propane Partners, L.P. Reports 11% Increase in Earnings; Before Interest, Taxes, Depreciation and Amortization for FY 2000 Third Quarter.Business Editors WATSONVILLE Watsonville, city (1990 pop. 31,099), Santa Cruz co., W Calif., on the Pajaro River near Monterey Bay; founded 1852, inc. 1868. It is a growing trade and processing center for vegetables, fruits, and flowers. , Calif.--(BUSINESS WIRE)--May 3, 2000 Cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to Propane Partners, L.P. (NYSE NYSE See: New York Stock Exchange :CNO CNO abbr. chief of naval operations ) reported today that Fiscal 2000 third quarter earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Keith Keith may refer to: People with the given name Keith:
Revenue for the quarter increased $771 million to $1.1 billion compared with revenue of $339 million for the third quarter of last year. This increase was due primarily to incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. Coast Energy Group ("CEG (Continuous Edge Graphics) A VGA RAMDAC chip from Edsun Labs that adds anti-aliasing on the fly. It can also calculate intermediate shades, thus providing thousands of colors on an 8-bit board that normally generates only 256 colors. ") energy product and service sales volume increases and retail propane revenues related to higher energy prices and acquisitions completed over the past year. "Expanding our market share through strategic acquisitions in important geographic markets and internal growth initiatives positions the company to significantly profit from increased retail volumes resulting from normal weather patterns and creates a large, stable customer base to sell after market products and services related to our core business," Baxter said. During the quarter, Cornerstone joined with Daniele & Rogers (Martha's Vineyard Martha's Vineyard (vĭn`yərd), island (1990 est. pop. 8,900), c.100 sq mi (260 sq km), SE Mass., separated from the Elizabeth Islands and Cape Cod by Vineyard and Nantucket sounds. , Mass.) adding approximately 5,500 new customers. Since its inception in December 1996, Cornerstone has added approximately 140,000 customers through its acquisition efforts, and 48,500 customers through internal growth initiatives. During the first three quarters of fiscal 2000 Cornerstone added over 18,650 net new customers from internal growth, representing an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. internal growth rate of just over 5.0%. "Another key goal is to balance our retail operations with incremental cash flow from less weather sensitive non-retail sales activities. In the third quarter, retail sales increased 26 percent or $27.7 million to $133.1 million compared to the same period last year. While the total earnings contribution from non-weather related propane sales is still modest, we are rapidly expanding this segment of our overall retail focus through new products and services and acquisitions," Baxter continued. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter totaled $39.2 million, an increase of $4.8 million over the same quarter last year. Depreciation and amortization expense increased $2.0 million to $9.8 million compared with $7.8 million for the same period last year, and interest expense increased to $9.4 million compared with $6.9 million for last year's third quarter. These increases reflect higher expenses associated with acquisitions completed over the last twelve months and recent increases in interest rates on floating rate working capital lines. Net income for the quarter decreased slightly to $20.5 million or $.86 per common unit from $21.2 million or $.89 per unit in the third quarter of fiscal 1999. Cornerstone Propane Partners, L.P. and consolidated subsidiaries condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of operations for the quarters and nine months ended March 31, 2000 and 1999, are presented below. Figures are in thousands of dollars, except per unit figures.
Cornerstone Propane Partners, L.P.
Financial Results of Operations for the Quarters ended
March 31, 2000 and 1999
(Unaudited)
Quarter Ended Nine Months Ended
Mar. 31, Mar. 31,
2000 1999 2000 1999
--------- --------- --------- ---------
Revenues $1,109,585 $338,536 $2,595,421 $732,579
Cost and expenses:
Cost of sales 1,030,613 268,189 2,417,044 589,273
Operating, SG&A expenses 39,190 34,406 109,280 90,372
Depreciation and
amortization 9,767 7,848 27,125 18,657
--------- --------- --------- ---------
Income from operations 30,015 28,093 41,972 34,277
Interest expense 9,435 6,863 27,504 17,788
--------- --------- --------- ---------
Pre-tax income 20,580 21,230 14,468 16,489
Income tax provision 48 0 144 67
--------- --------- --------- ---------
Net income 20,532 21,230 14,324 16,422
General Partner's
interest in net Income 411 425 286 328
--------- --------- --------- ---------
Limited Partner's
interest in net Income $20,121 $20,805 $14,038 $16,094
========= ========= ========= =========
Limited Partners' Net
Income per Unit $.86 $.89 $.60 $.76
Supplemental Information
------------------------
Weighted Average Units
Outstanding 23,417 23,378 23,397 21,280
EBITDA (a) $39,783 $35,943 $69,098 $52,937
EBITDA per Unit $1.70 $1.54 $2.95 $2.49
Retail Gallons Sold 104,132 107,845 237,009 220,846
(a) EBITDA is defined as earnings before interest, income taxes,
depreciation and amortization. EBITDA should not be considered as
an alternative to net income (as an indicator of operating
performance) or as an alternative to cash flow (as a measure of
liquidity or ability to service debt obligations). EBITDA is not
in accordance with, nor superior to, generally accepted accounting
principles, but provides additional information for evaluating the
Partnership's ability to pay its Minimum Quarterly Distributions
("MQD").
Cornerstone Propane Partners, L.P. is a master limited partnership. The Partnership is the nation's fourth largest retail propane marketer serving over 460,000 customers with annual sales of approximately 335 million retail gallons, doing business in 34 states through 299 customer service centers. Its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. energy solutions service division, Coast Energy Group (CEG), supplies, purchases, processes and markets over 48,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of natural gas liquids to resellers and major end users. CEG also sells approximately 1.0 Bcf per day of natural gas and 100,000 barrels per day of crude oil in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada. For more information, please visit our websites at www.cornerstonepropane.com and www.coastenergy.com. The information presented herein may contain certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the federal securities laws. The Partnership's actual future performance will be affected by a number of factors, risks and uncertainties, including without limitation, weather conditions, regulatory changes, competitive factors, the Partnership's success in dealing with Year 2000 issues and the operations of vendors, suppliers and customers, many of which are beyond the Partnership's control. Future events and results may vary substantially from what the Partnership currently foresees, and there can be no assurance that the Partnership's actual results will not differ materially from its expectations. The Partnership undertakes no obligation to publicly release any revision to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statements or reflect the occurrence of anticipated or unanticipated events. |
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