Yahoo Finance

Q & A Highlights

Q: Can you provide an update on the Eddystone case? A: In July, we appealed the District Court's judgment to the Third Circuit court of appeals. We have no further updates to provide at this time, and we direct you to the disclosures in our 10-K. (Michael Cole, CFO)

Q: With the current revolving credit facility expiring in March of 2025, can you provide an update as to when it will be renewed? A: We do not have a specific date targeted for the extension. We've been working with our existing bank group, and they remain supportive. We will continue to work with them to amend and extend the existing revolving credit facility. It is one of the top priorities for the company over the coming weeks. (Michael Cole, CFO)

Q: How is the company planning to handle the refinancing of the 2026 senior notes, the B units, the preferred units, and the capital structure? A: We have engaged an outside investment bank to help us review and make recommendations regarding our capital structure. We will take their recommendations into account as we continue discussions with our bank group and holders of those capital securities. (Michael Cole, CFO)

Q: In the Fourth Amendment to the credit facility, Ferrellgas was restricted from moving funds to MLP, which means the company can no longer make distributions to the Class A or Class B units. Will the amendment facility address this issue or remove this restriction? A: We will work with the bank group, and that will be determined as we work through the amendment and extension process. The third-party investment bank will assist in that process. (Michael Cole, CFO)

Q: In light of the Eddystone ruling, how has your thinking or timing of Class B redemption changed, if at all? A: The Class B units can be converted at any time up until March of 2026. Our position has not changed regarding the Class B units and the redemption and conversion dynamics. The Eddystone ruling adds another variable, but we have strong grounds for the appeal. (Michael Cole, CFO)

Q: How is Blue Rhino and the generator supply business preparing for Hurricane Helene? A: Both retail and Blue Rhino have been preparing for the storm since the beginning of the weekend. We prioritize our routes and restock displays, getting them ready for the communities. Safety of our drivers is prioritized, and we will assess damage and road conditions post-landfall. (Tamria Zertuche, CEO)

Q: How might the domestic propane supply markets be impacted based on the increase in exports over the next 12 to 18 months? A: We do not expect any impact on the domestic markets. The US has plenty of propane. (Tamria Zertuche, CEO)

Q: How is the company planning to address the recent downgrade from Moody's? What actions are being taken? A: We expect concerns cited by Moody's to be addressed as we work with our outside investment banker and through the amendment and extension process with the banks. The Eddystone appeal process will take time, and we are addressing the complex capital structure and liquidity concerns. (Michael Cole, CFO)

Q: How do you think about 2025 capital expenditures in comparison to 2024? A: We expect the supply chain performance demonstrated by Blue Rhino this year to continue and create future positive opportunities. We are managing operating expenses and repositioning assets in our autogas and large construction segments. (Tamria Zertuche, CEO)

Q: What are the expectations around fiscal year 2025 EBITDA? A: We don't provide EBITDA forecasts to the market, but key performance drivers are identified in our 10-K and 10-Q filings. You can use those disclosures and historical performance to estimate a normalized EBITDA number for the company. (Michael Cole, CFO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.