8-K - FGPR - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): March 11, 2022

Ferrellgas Partners, L.P.

(Exact name of registrant as specified in its charter)


Delaware	001-11331	43-1698480
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

<br><br>
One Liberty Plaza ,<br><br>Liberty , Missouri		64068
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 816 - 792-1600


Not Applicable
Former name or former address, if changed since last report


Ferrellgas Partners Finance Corp.
(Exact name of registrant as specified in its charter)


Delaware	333-06693-02	43-1742520
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

<br><br>
One Liberty Plaza ,<br><br>Liberty , Missouri		64068
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 816 - 792-1600


n/a
Former name or former address, if changed since last report


Ferrellgas, L.P.
(Exact name of registrant as specified in its charter)


Delaware	000-50182	43-1698481
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

<br><br>
One ** Liberty Plaza ,<br><br>Liberty , Missouri**		64068
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 816 - 792-1600


n/a
Former name or former address, if changed since last report


Ferrellgas Finance Corp.
(Exact name of registrant as specified in its charter)


Delaware	000-50183	14-1866671
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

<br><br>
One L iberty Plaza ,<br><br>Liberty , Missouri		64068
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 816 - 792-1600


n/a
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Ferrellgas Partners, L.P.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Ferrellgas Partners Finance Corp.

Emerging growth company ☐

Ferrellgas, L.P.

Emerging growth company ☐

Ferrellgas Finance Corp.

Emerging growth company ☐

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	****	Trading Symbol(s)	****	Name of each exchange on which registered
N/A		N/A		N/A

Item 2.02 Results of Operations and Financial Condition.

The information included in Item 7.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.02 of this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure.

On March 11, 2022, Ferrellgas Partners, L.P. (OTC Pink: “FGPR”) (“Ferrellgas”) issued a press release regarding its financial results for the second fiscal quarter ended January 31, 2022. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

On Friday, March 11, 2022, the Company will conduct a live teleconference on the Internet at https://edge.media-server.com/mmc/p/bghesqvg to discuss the results of operations for the second fiscal quarter. The live webcast of the teleconference will begin at 8:30 a.m. Central Time (9:30 a.m. Eastern Time). Questions may be submitted via the investor relations e-mail box at InvestorRelations@ferrellgas.com.

Item 9.01 Financial Statements and Exhibits

Exhibit 99.1 — Press release of Ferrellgas Partners, L.P. dated March 11, 2022, reporting its financial results for the second fiscal quarter ended January 31, 2022.

Limitation on Materiality and Incorporation by Reference

The information in this Current Report on Form 8-K related to Items 2.02 and 7.01, including Exhibit 99.1 furnished herewith, is being furnished to the SEC pursuant to Item 2.02 and Item 7.01 of Form 8-K and is not deemed to be "filed" with the SEC for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of Section 18. In addition, such information is not to be incorporated by reference into any registration statement of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P. or Ferrellgas Finance Corp. or other filings of such entities made pursuant to the Exchange Act or the Securities Act, unless specifically identified as being incorporated therein by reference.

The furnishing of particular information in this Current Report, including Exhibit 99.1 furnished herewith, pursuant to Item 7.01 of Form 8-K is not intended to, and does not, constitute a determination or admission by Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P. or Ferrellgas Finance Corp. as to the materiality or completeness of any such information that is required to be disclosed solely by Regulation FD of the Exchange Act.

Exhibit No.	****	Description
99.1		Press release of Ferrellgas Partners, L.P. dated March 11, 2022, reporting its financial results for the second fiscal quarter ended January 31, 2022.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	FERRELLGAS PARTNERS, L.P.
	By:	Ferrellgas, Inc., its general partner

Date: March 11, 2022	By:	/s/ James E. Ferrell
		Chief Executive Officer and President

	FERRELLGAS PARTNERS FINANCE CORP.

Date: March 11, 2022	By:	/s/ James E. Ferrell
		Chief Executive Officer and President

	FERRELLGAS, L.P.
	By:	Ferrellgas, Inc., its general partner

Date: March 11, 2022	By:	/s/ James E. Ferrell
		Chief Executive Officer and President

	FERRELLGAS FINANCE CORP.

Date: March 11, 2022	By:	/s/ James E. Ferrell
		Chief Executive Officer and President

Exhibit 99.1

FERRELLGAS PARTNERS, L.P. REPORTS SECOND QUARTER

FISCAL 2022 RESULTS

•	Financial Highlights
•	Revenues for the second fiscal quarter increased $131.4 million or 24% to $684.9 million, compared to $553.5 million in the prior year period.
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•	Gross Profit increased $18.9 million or 7% to $298.2 million, compared to $279.3 million in the prior year period.
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•	Operating Income increased by $20.3 million or 18% to $134.9 million, compared to $114.6 million in the prior year period.
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•	Company Highlights
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•	Ferrellgas announced the expansion of its partnership with Operation BBQ Relief.
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•	Blue Rhino teamed up with International Rhino Foundation to raise awareness of rhino conservation efforts.
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•	Blue Rhino home delivery entered Long Island market.
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•	The Company celebrated 280 Ferrellgas employees recognized in the areas of: Customer Service, Safety, Innovation and Leadership via the Ferrellgas Flame Awards.
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Liberty, MO., March 11, 2022 (GLOBE NEWSWIRE) – Ferrellgas Partners, L.P. (OTC: FGPR) (“Ferrellgas” or the “Company”) today reported financial results for its second fiscal quarter ended January 31, 2022.

"At Ferrellgas, we believe in our people. The company continues to perform because of the almost 4,500 outstanding professionals who work so hard each day on behalf of the Ferrellgas customer. We believe it is important to recognize and invest in our people” said James E. Ferrell, Chief Executive Officer and President. “Our mission is to Fuel Life Simply for our customers, we know that begins with great employees.”

The Company delivered $20.3 million higher operating income in the second fiscal quarter versus the same period last year. Overall gallon performance and the Company’s strategic initiatives contributed to an increase in the second fiscal quarter gross profit of $18.9 million, or 7% higher than the prior year period. Operating expenses as a percentage of total revenue were approximately 2% lower than the prior year period. Margin per gallon for the quarter increased by $0.10, or 10% higher than the prior year period. The Company realized cost savings through better utilization of assets as it redeployed existing tanks to locations with higher usage statistics, which also alleviated the need to purchase additional tanks at higher market prices. The savings on providing more propane at each delivery was partially offset by overtime costs.

The Company’s strong performance in the second quarter of fiscal 2022 directly correlates with its strategic initiatives to achieve efficiencies in the right-timed delivery of gallons. This includes using new monitoring technology that allows the Company to provide more gallons at each stop thereby optimizing the use of its labor force and vehicle fleet and its fuel efficiency. While a warmer December 2021 factored into the 3% decline in gallons sold during the second fiscal quarter compared to the prior year period, the recent winter weather favorably impacted the remainder of its quarterly results when coupled with the Company’s strategic initiatives.

Ferrellgas continues to benefit from its position as a technology enabled logistics company with a nationwide footprint. We are focused on continuous improvement by dedicated distribution managers, safety-minded delivery professionals and a committed customer service organization that continues to provide the foundation for the Company to build on. A favorable credit position over the prior year period continues to position Ferrellgas well with suppliers. The Company’s continued emphasis on leadership development, excellence in operational expense management, and implementation of logistics fundamentals continues to increase efficiency and profitability.

For the second fiscal quarter, the Company reported net earnings attributable to Ferrellgas Partners, L.P. of $108.4 million compared to $63.3 million in the prior year period, an increase of $45.1 million or 71%. Adjusted EBITDA, a non-GAAP measure, increased by $10.5 million or 7% to $151.4 million in the second fiscal quarter compared to $140.9 million in the prior year period.

“Our highly tenured supply and operations teams leveraged relationships with valued vendors and supply partners to enable our continued high performance,” Ferrell added. “Our management teams have demonstrated excellence in key areas all while managing a challenging environment. Our success is further strengthened by the incredibly dedicated employees of Ferrellgas. All across our company, I witnessed innovation and collaboration by our hard working distribution managers, delivery professionals, and customer service specialists. I could not be more proud.”

The Company recently announced an expansion of its partnership with Operation BBQ Relief, an organization which has served nearly 10 million meals in the United States and internationally to communities impacted by natural disasters. The Company’s nationwide footprint allows it to help victims and first responders throughout the United States by supplying the necessary propane to fuel industrial-sized smokers in addition to Blue Rhino tanks.

The Company’s tank exchange brand Blue Rhino announced a partnership with the International Rhino Foundation, a global wildlife conservation organization, to raise awareness of rhino conservation efforts around the world. As part of the initiative, Blue Rhino will draw attention to conservation efforts through both marketing campaigns and on tanks sold at retail exchange locations throughout the country.

About Ferrellgas

Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., and subsidiaries, serves propane customers in all 50 states, the District of Columbia, and Puerto Rico. Ferrellgas employees indirectly own 1.1 million Class A Units of the partnership, through an employee stock ownership plan. Ferrellgas Partners, L.P. filed a Form 10-K with the Securities and Exchange Commission on October 15, 2021. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at www.ferrellgas.com. 2

Forward Looking Statements

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 include those 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, 2021, and in other documents filed from time to time by these entities with the Securities and Exchange Commission.

Contacts

Investor Relations – InvestorRelations@ferrellgas.com

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

(unaudited)


ASSETS	****	January 31, 2022		July 31, 2021

Current assets:
Cash and cash equivalents (including $11,267 and $11,500 of restricted cash at January 31, 2022 and July 31, 2021, respectively)		$	199,635	$	281,952
Accounts and notes receivable, net			253,885		131,574
Inventories			118,143		88,379
Price risk management asset			93,827		78,001
Prepaid expenses and other current assets			47,526		39,092
Total current assets			713,016		618,998

Property, plant and equipment, net			586,819		582,118
Goodwill, net			251,065		246,946
Intangible assets (net of accumulated amortization of $436,177 and $432,032 at January 31, 2022 and July 31, 2021, respectively)			101,267		100,743
Operating lease right-of-use asset			82,046		87,611
Other assets, net			85,862		93,228
Total assets		$	1,820,075	$	1,729,644


LIABILITIES, MEZZANINE AND EQUITY (DEFICIT)

Current liabilities:
Accounts payable		$	113,337	$	47,913
Broker margin deposit liability			86,596		79,178
Current portion of long-term debt			1,979		1,670
Current operating lease liabilities			26,048		25,363
Other current liabilities			183,315		166,822
Total current liabilities			411,275		320,946

Long-term debt			1,447,926		1,444,890
Operating lease liabilities			55,708		74,349
Other liabilities			55,812		61,189

Contingencies and commitments

Mezzanine equity:
Senior preferred units, net of issue discount and other offering costs (700,000 units outstanding at January 31, 2022 and July 31, 2021)			651,349		651,349

Equity (Deficit):
Limited partner unitholders
Class A (4,857,605 units outstanding at January 31, 2022 and July 31, 2021)			(1,197,371)		(1,214,813)
Class B (1,300,000 units outstanding at January 31, 2022 and July 31, 2021)			383,012		383,012
General partner unitholder (49,496 units outstanding at January 31, 2022 and July 31, 2021)			(71,498)		(72,178)
Accumulated other comprehensive income			91,096		88,866
Total Ferrellgas Partners, L.P. deficit			(794,761)		(815,113)
Noncontrolling interest			(7,234)		(7,966)
Total deficit			(801,995)		(823,079)
Total liabilities, mezzanine and deficit		$	1,820,075	$	1,729,644

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit data)

(unaudited)


		Three months ended						Six Months Ended						Twelve months ended
		January 31,						January 31,						January 31,
	****	2022		****	2021		****	2022		****	2021		****	2022		****	2021
Revenues:
Propane and other gas liquids sales		$	657,504		$	528,434		$	1,030,208		$	809,483		$	1,889,577		$	1,466,642
Other			27,434			25,126			49,236			44,971			89,723			81,591
Total revenues			684,938			553,560			1,079,444			854,454			1,979,300			1,548,233

Cost of sales:
Propane and other gas liquids sales			383,213			270,777			603,751			408,404			1,077,283			709,586
Other			3,557			3,504			7,167			7,171			12,724			13,140

Gross profit			298,168			279,279			468,526			438,879			889,293			825,507

Operating expense - personnel, vehicle, plant & other			128,013			115,247			245,125			224,274			486,667			474,553
Operating expense - equipment lease expense			6,022			6,862			11,712			13,692			25,082			30,060
Depreciation and amortization expense			21,944			21,249			42,239			42,639			84,982			84,106
General and administrative expense			15,784			20,475			28,359			33,555			54,869			55,420
Non-cash employee stock ownership plan compensation charge			751			762			1,660			1,470			3,405			2,916
(Gain) loss on asset sales and disposals			(9,275)			80			(7,865)			893			(6,927)			4,434

Operating income			134,929			114,604			147,296			122,356			241,215			174,018

Interest expense			(25,139)			(52,595)			(50,534)			(106,821)			(117,329)			(206,538)
Loss on extinguishment of debt			—			—			—			—			(104,834)			(37,399)
Other income, net			43			3,508			4,307			3,616			4,937			3,212
Reorganization expense - professional fees			—			(1,200)			—			(1,200)			(9,243)			(1,200)

Earnings (loss) before income tax expense			109,833			64,317			101,069			17,951			14,746			(67,907)

Income tax expense			481			326			577			413			905			631

Net earnings (loss)			109,352			63,991			100,492			17,538			13,841			(68,538)

Net earnings (loss) attributable to noncontrolling interest (a)			947			724			693			333			(342)			(381)

Net earnings (loss) attributable to Ferrellgas Partners, L.P.		$	108,405		$	63,267		$	99,799		$	17,205		$	14,183		$	(68,157)

Class A unitholders' interest in net earnings (loss)		$	13,001		$	62,634		$	9,354		$	17,033		$	(99,430)		$	(67,475)

Net earnings per unitholders' interest
Basic and diluted net earnings (loss) per Class A Unit		$	2.68		$	12.89		$	1.93		$	3.51		$	(20.47)		$	(13.89)
Weighted average Class A Units outstanding - basic and diluted			4,858			4,858			4,858			4,858			4,858			4,858

Supplemental Data and Reconciliation of Non-GAAP Items:


		Three months ended						Six Months Ended						Twelve months ended
		January 31,						January 31,						January 31,
	****	2022		****	2021		****	2022		****	2021		****	2022		****	2021
Net earnings (loss) attributable to Ferrellgas Partners, L.P.		$	108,405		$	63,267		$	99,799		$	17,205		$	14,183		$	(68,157)
Income tax expense			481			326			577			413			905			631
Interest expense			25,139			52,595			50,534			106,821			117,329			206,538
Depreciation and amortization expense			21,944			21,249			42,239			42,639			84,982			84,106
EBITDA			155,969			137,437			193,149			167,078			217,399			223,118
Non-cash employee stock ownership plan compensation charge			751			762			1,660			1,470			3,405			2,916
(Gain) loss on asset sales and disposal			(9,275)			80			(7,865)			893			(6,927)			4,434
Loss on extinguishment of debt			—			—			—			—			104,834			37,399
Other income, net			(43)			(3,508)			(4,307)			(3,616)			(4,937)			(3,212)
Reorganization expense - professional fees			—			1,200			—			1,200			9,243			1,200
Severance expense includes $24, $60 and $84 in operating expense for the three, six and twelve months ended January 31, 2022, respectively. Also includes $257, $156 and $413 in general and administrative expense for the three, six and twelve months ended January 31, 2022, respectively.			281			1,077			497			1,761			497			2,501
Legal fees and settlements related to non-core businesses			2,807			3,628			4,938			6,136			8,931			8,882
Provision for doubtful accounts related to non-core businesses			—			(500)			—			(500)			—			16,825
Lease accounting standard adjustment and other			—			—			—			—			—			107
Net (earnings) loss attributable to noncontrolling interest (a)			947			724			693			333			(342)			(381)
Adjusted EBITDA (b)			151,437			140,900			188,765			174,755			332,103			293,789
Net cash interest expense (c)			(27,620)			(48,243)			(46,739)			(99,959)			(106,933)			(196,306)
**** Maintenance capital expenditures (d)			(4,060)			(5,282)			(7,639)			(10,459)			(23,348)			(21,802)
**** Cash paid for income taxes			(407)			(270)			(407)			(305)			(808)			(593)
Proceeds from certain asset sales			2,085			1,737			2,726			2,437			4,877			4,775
Distributable cash flow attributable to equity investors (e)			121,435			88,842			136,706			66,469			205,891			79,863
Less: Distributions accrued or paid to preferred unitholders			17,989			—			33,322			—			57,346			—
Distributable cash flow attributable to general partner and non-controlling interest			(2,437)			(1,904)			(2,742)			(1,329)			(4,126)			(1,597)
Distributable cash flow attributable to Class A and B Unitholders (f)			101,009			86,938			100,642			65,140			144,419			78,266
Less: Distributions paid to Class A and B Unitholders			—			—			49,998			—			49,998			—
Distributable cash flow excess (g)		$	101,009		$	86,938		$	50,644		$	65,140		$	94,421		$	78,266

Propane gallons sales
Retail - Sales to End Users			215,276			218,078			331,101			336,096			627,062			607,948
Wholesale - Sales to Resellers			61,957			67,252			106,012			116,842			217,195			233,336
Total propane gallons sales			277,233			285,330			437,113			452,938			844,257			841,284

(a)	Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, Ferrellgas, L.P.
(b)	Adjusted EBITDA is calculated as net earnings (loss) attributable to Ferrellgas Partners, L.P., plus the sum of the following: income tax expense, interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, (gain) loss on asset sales and disposals, loss on extinguishment of debt, other income, net, reorganization expense – professional fees, severance expense, legal fees and settlements related to non-core businesses, provision for doubtful accounts related to non-core businesses, lease accounting standard adjustment and other and net (earnings) loss attributable to noncontrolling interest. 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 make it easier to compare its results with other companies that have different financing and capital structures.
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(a)

Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, Ferrellgas, L.P.

(b)

Adjusted EBITDA is calculated as net earnings (loss) attributable to Ferrellgas Partners, L.P., plus the sum of the following: income tax expense, interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, (gain) loss on asset sales and disposals, loss on extinguishment of debt, other income, net, reorganization expense – professional fees, severance expense, legal fees and settlements related to non-core businesses, provision for doubtful accounts related to non-core businesses, lease accounting standard adjustment and other and net (earnings) loss attributable to noncontrolling interest. 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 make it easier to compare its results with other companies that have different financing and capital structures.

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Adjusted EBITDA, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of Adjusted EBITDA that will not occur on a continuing basis may have associated cash payments. Adjusted EBITDA should be viewed in conjunction with measurements that are computed in accordance with GAAP.

(c)	Net cash interest expense is the sum of interest expense less non-cash interest expense and other income, net. This amount includes interest expense related to the terminated accounts receivable securitization facility.
(d)	Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment, and may from time to time include the purchase of assets that are typically leased.
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(e)	Distributable cash flow attributable to equity investors is calculated as Adjusted EBITDA minus net cash interest expense, maintenance capital expenditures and cash paid for income taxes plus proceeds from certain asset sales. Management considers distributable cash flow attributable to equity investors a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to equity investors, including holders of the operating partnership’s Preferred Units. Distributable cash flow attributable to equity investors, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow attributable to equity investors that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to equity investors should be viewed in conjunction with measurements that are computed in accordance with GAAP.
(f)	Distributable cash flow attributable to Class A and B Unitholders is calculated as Distributable cash flow attributable to equity investors minus distributions accrued or paid on the Preferred Units and distributable cash flow attributable to general partner and noncontrolling interest. Management considers distributable cash flow attributable to Class A and B Unitholders a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to Class A and B Unitholders. Distributable cash flow attributable to Class A and B Unitholders, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added to our calculation of distributable cash flow attributable to Class A and B Unitholders that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to Class A and B Unitholders should be viewed in conjunction with measurements that are computed in accordance with GAAP.
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(g)	Distributable cash flow excess is calculated as Distributable cash flow attributable to Class A and B Unitholders minus Distributions paid to Class A and B Unitholders. Distributable cash flow excess, if any, is retained to establish reserves, to reduce debt, to fund capital expenditures and for other partnership purposes, and any shortage is funded from previously established reserves, cash on hand or borrowings under our Credit Facility or, previously, under our terminated accounts receivable securitization facility. Management considers Distributable cash flow excess a meaningful measure of the partnership’s ability to effectuate those purposes. Distributable cash flow excess, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow excess that will not occur on a continuing basis may have associated cash payments. Distributable cash flow excess should be viewed in conjunction with measurements that are computed in accordance with GAAP.
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