Inergy, L.P. (NYSE:NRGY) (“Inergy”) today reported results of operations for the quarter ended December 31, 2011, the first quarter of fiscal 2012. These results of operations are presented on a consolidated basis including the results of Inergy Midstream, L.P.
Inergy reported Adjusted EBITDA of $102.7 million for the quarter ended December 31, 2011, a decrease of $27.4 million, or approximately 21.1%, from $130.1 million for the quarter ended December 31, 2010. Net income (loss) was $(3.6) million for the quarter ended December 31, 2011, and $38.5 million in the same quarter of last year. Net income in the quarter ended December 31, 2011, was negatively impacted by $24.9 million of costs related to the early extinguishment of debt.
“We faced a challenging operating environment in the quarter particularly impacting our propane operations,” said John Sherman, President and CEO of Inergy. “Importantly, we completed the IPO of Inergy Midstream providing us the ability to more efficiently finance the expansion of our growing midstream business. Our management team is highly focused on repositioning the partnership for the future on behalf of our investors.”
Quarterly ResultsIn the quarter ended December 31, 2011, retail propane gallon sales were 89.3 million gallons compared to 107.1 million gallons sold in the same quarter of the prior year. Retail propane gross profit, excluding certain items as discussed below, was $97.0 million for the quarter ended December 31, 2011, compared to $132.3 million for the quarter ended December 31, 2010, excluding certain non-cash gains (charges) of $(0.1) million and $0.4 million, respectively. Gross profit from other propane operations, including wholesale, appliances, service, transportation, distillates, and other was $30.4 million in the quarter ended December 31, 2011, compared to $29.7 million for the same quarter in the prior year. Gross profit from midstream operations increased to $53.5 million for the quarter ended December 31, 2011, from $42.5 million for the same quarter in the prior year.
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