EBITDA is a non-GAAP financial measure and is defined as income before incometaxes, plus net interest expense (inclusive of write-off of deferred financingcosts) and depreciation and amortization expense. Inergy, L.P., with headquarters in Kansas City, MO, is among the fastest growingmaster limited partnerships in the country. The Company`s operations include theretail marketing, sale, and distribution of propane to residential, commercial,industrial, and agricultural customers. will conduct a live conference call andInternet webcast today, May 6, 2009, to discuss results of operations for thesecond fiscal quarter of 2009 and its business outlook The call will begin at10:00 a.m CT. The call-in number for the earnings call is 1-877-405-3427, andthe conference name is Inergy. The live Internet webcast and the replay can beaccessed on Inergy`s website, A digital recording of thecall will be available for one week following the call by dialing 1-800-642-1687and entering the pass code 97201316. declared a quarterlydistribution of $0.75 per limited partner unit, or $3.00 on an annualized basis.This represents an approximate 28% increase over the $0.585 per limited partnerunit paid for the same quarter of the prior year The distribution will be paidon May 15, 2009 Inergy, L.P and Inergy Holdings, L.P.
receiving a total distribution of $15.8million with respect to the second fiscal quarter of 2009 As a result of thisInergy, L.P distribution, Inergy Holdings, L.P. Also excludedfrom net income and gross profit discussed above was a non-cash charge of $1.5million and $0.1 million during the six months ended March 31, 2009 and 2008,respectively, resulting from the derivative contracts associated with retailpropane fixed price sales. Inergy Holdings, L.P.As discussed above, the $0.655 per limited partner unit distribution by Inergy,L.P results in Inergy Holdings, L.P. For the six months ended March 31, 2009, operating and administrative expensesincreased to $146.2 million compared to $131.5 million in the same period offiscal 2008. Exclusions from net income discussed above included a loss of $3.0 million and again of $1.2 million on the disposal of excess property, plant, and equipmentduring the six months ended March 31, 2009 and 2008, respectively.
Gross profitfrom other propane operations, including wholesale, appliances, service,transportation, distillates, and other was $67.4 million in the six months endedMarch 31, 2009, compared to $53.9 million for the same prior-year period. Gross profit from midstream operations increased to $47.0 million for the sixmonths ended March 31, 2009, from $42.4 million in the prior year. Retail propane gross profit, excluding certain itemsas discussed below, was $273.5 million for the six months ended March 31, 2009,compared to $229.6 million for the six months ended March 31, 2008. Thenon-cash charge during the three months ended March 31, 2008, was immaterial.