Cornerstone Propane Partners, L.P. Reports 152% Increase in EBITDA For the Fourth Quarter of Fiscal 1999.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)--Aug. 4, 1999-- 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 ), ("Cornerstone" or the "Partnership"), today reported 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.
For the fourth quarter, which is traditionally not a significant quarter for retail sales and therefore usually a loss quarter, Cornerstone reported an after tax net loss of $11.2 million ($.48 per equivalent unit). This was greater than the $7.4 million loss ($.37 per equivalent unit) recorded for the same quarter of fiscal 1998 primarily due to higher depreciation, amortization and interest expenses associated with acquisitions consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. during the past year. "I am extremely proud of the Cornerstone team as we completed our second full year as a Partnership," said Keith Keith may refer to: People with the given name Keith:
Revenue for the quarter increased to $422.0 million, up $277.1 million over the $144.9 reported for the same 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. wholesale sales volumes, revenues and associated earnings contributions for the quarter. It has been part of the Partnership's on-going strategic focus to increase its wholesale sales activities. This provides incremental cash flow and a better balance of business with the retail operations which have a high earnings dependence on a normal winter heating season. 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 $33.4 million, an increase of $8.9 million (approximately 37%) over the same period in 1998. This increase was related primarily to acquisitions, which included the purchase of Propane Continental, Inc., the nation's nineteenth largest propane company, in December 1998. Acquisitions and internal growth contributed positively to the increase in EBITDA, which as noted above, was up 152% and 22% respectively for the quarter and fiscal year ended June 30, 1999. Fourth quarter retail sales volumes of 40.8 million gallons represented an increase of 5.5 million gallons (about 16%) over the 35.3 million gallons reported for the same period last year. This increase reflects the continuing contributions from acquisitions and the Partnership's internal customer growth successes. During this low volume retail sales quarter, Cornerstone was able to increase the average EBITDA per retail gallon gallon: see English units of measurement. by $.06 (approximately 120%) to $.11 per gallon from $.05 per gallon for the same June quarter of 1998. Additionally, the Partnership has continued to increase its higher margin residential sales volume mix from 57% for fiscal 1998 to just over 60% for fiscal 1999. This achievement was accomplished despite the abnormally mild heating season. In the fourth quarter of fiscal 1999, the Partnership continued its acquisition activity completing four acquisitions, which will add approximately 6.3 million retail gallons and 10,600 retail customers. During fiscal 1999, Cornerstone consummated fifteen retail acquisitions, which in aggregate will add approximately 65.0 million annual retail gallons and 83,700 customers. The most recent retail additions to the Cornerstone family were located in Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. (McKinney Propane, Mid Georgia Propane and Central Georgia Propane) and North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. (Robbins Rob·bins , Frederick Chapman 1916-2003. American microbiologist. He shared a 1954 Nobel Prize for work on the cultivation of the polio virus. Oil Company). The winter of 1998/1999 was the warmest winter on record 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. . In the U.S. markets served by the Partnership, weather conditions during the majority of this past heating season (November through February) were substantially warmer than both normal and last year, 17.8% and 12.1%, respectively. This adversely impacted retail sales and profits to residential customers for normal winter home heating requirements. 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 fiscal years ended June 30, 1999 and 1998, and the consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. at June 30, 1999 and 1998 are presented below. Figures are in thousands of dollars, except per unit figures. -0-
Cornerstone Propane Partners, L.P.
Financial Results of Operations
for the Quarters and Fiscal Years Ended June 30,
(Unaudited, Except for the Fiscal Year ended June 30, 1998)
Quarter Fiscal Year
1999 1998 1999 1998
Revenues $ 422,029 $ 144,862 $1,154,608 $ 768,129
Cost and expenses:
Cost of sales 384,094 118,622 973,362 623,924
Operating, SG&A
expenses 33,363 24,427 123,735 97,184
Depreciation and
amortization 8,596 4,631 27,253 18,246
---------- ---------- ---------- ----------
Income (loss) from
operations (4,024) (2,818) 30,253 28,775
Interest expense 7,245 4,581 25,033 19,222
---------- ---------- ---------- ----------
Pre-tax (loss) income (11,269) (7,399) 5,220 9,553
Income tax (benefit)
provision (20) 32 47 127
---------- ---------- ---------- ----------
Net income (loss) (11,249) (7,431) 5,173 9,426
General Partner's
interest in net (loss)
Income (225) (149) 103 189
---------- ---------- ---------- ----------
Limited Partner's
interest in net (loss)
Income $ (11,024) $ (7,282) $ 5,070 $ 9,237
Supplemental
Information
Weighted Average
Units Outstanding 23,386 19,831 21,805 18,429
Net Income (Loss) per
Unit ($.47) ($.37) $.23 $.50
EBITDA(a) $4,572 $1,813 $57,506 $47,021
EBITDA per Unit $.20 $.09 $2.64 $2.55
Retail Gallons Sold 40,818 35,330 261,624 235,030
(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) and 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.
Consolidated Balance Sheets as of June 30, 1999 and 1998
(Unaudited) (Audited)
1999 1998
Current assets $ 87,547 $ 53,221
Property, plant & equipment, net 334,563 275,288
Goodwill, net 321,540 224,064
Other assets, net 35,580 19,938
-------- --------
$779,230 $572,511
Current liabilities $ 71,033 $ 51,595
Notes payable 387,332 237,138
Other non-current liabilities 5,338 4,184
Partners' capital 315,527 279,594
-------- --------
$779,230 $572,511
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 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. sales of approximately 335 million retail gallons, doing business in 34 states through 304 customer service centers. Through 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 team, Coast Energy Group, the Partnership also supplies, purchases, processes and markets over 43,000 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 an average of approximately .8 Bcf per day in natural gas sales and 95,000 barrels per day in crude oil sales in the United States and Canada. For more information, please visit the Partnership's websites at www.cornerstonepropane.com and www.coastenergygroup.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 the 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion