Pennsylvania | 1-11071 | 23-2668356 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
460 No. Gulph Road, King of Prussia, Pennsylvania |
19406 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
UGI Corporation |
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May 2, 2011 | By: | Robert C. Flexon | ||
Name: | Robert C. Flexon | |||
Title: | Chief Financial Officer |
EXHIBIT NO. | DESCRIPTION | |||
99 | Press Release of UGI Corporation dated May 2, 2011. |
Contact:
|
610-337-1000 Hugh J. Gallagher, ext. 11029 Brenda A. Blake, ext. 13202 |
For Immediate Release: May 2, 2011 |
For the three months ended March 31, | 2011 | 2010 | Increase (decrease) | |||||||||||||
Revenues |
$ | 906.8 | $ | 886.1 | $ | 20.7 | 2.3 | % | ||||||||
Total margin (a) |
$ | 342.0 | $ | 346.4 | $ | (4.4 | ) | (1.3 | )% | |||||||
Partnership EBITDA |
$ | 157.5 | $ | 173.6 | $ | (16.1 | ) | (9.3 | )% | |||||||
Operating income |
$ | 154.6 | $ | 153.3 | $ | 1.3 | 0.8 | % | ||||||||
Retail gallons sold |
316.3 | 329.2 | (12.9 | ) | (3.9 | )% | ||||||||||
Degree days % colder than normal |
1.9 | % | 0.2 | % | ||||||||||||
Net income attributable to UGI |
$ | 32.0 | $ | 36.4 | $ | (4.4 | ) | (12.1 | )% |
| Although weather nationwide averaged 1.6% colder than in the prior-year period, weather in AmeriGass southern regions for February and March was approximately 25% warmer than in the prior-year period. |
| Volume declined 3.9% principally due to the impact of the warmer weather in the southern U.S. and customer conservation. |
UGI Reports Second Quarter Results, Updates Guidance
|
Page 2 |
| Total margin decreased primarily due to the lower volumes sold partially offset by slightly higher retail unit margins and increased fee income. | |
| Operating expenses increased $4.4 million from the prior-year period primarily due to higher vehicle and employee benefits costs. | |
| Partnership EBITDA in 2011 includes a pre-tax loss of $18.8 million associated with the early extinguishment of debt. Partnership EBITDA and operating income in 2010 include a pre-tax loss of $12.2 million associated with the discontinuance of interest rate hedges. |
For the three months ended March 31, | 2011 | 2010 | Increase (decrease) | |||||||||||||
Revenues |
| 362.7 | | 278.9 | | 83.8 | 30.0 | % | ||||||||
Total margin (a) |
| 128.8 | | 129.6 | | (0.8 | ) | (0.6 | )% | |||||||
Operating income |
| 46.5 | | 58.2 | | (11.7 | ) | (20.1 | )% | |||||||
Antargaz retail gallons sold |
94.5 | 106.6 | (12.1 | ) | (11.4 | )% | ||||||||||
Antargaz degree days % (warmer) colder than normal |
(7.0 | )% | 10.8 | % | ||||||||||||
Flaga retail gallons sold |
39.1 | 18.2 | 20.9 | 114.8 | % | |||||||||||
Flaga degree days % (warmer) colder than normal |
(1.5 | )% | 3.4 | % | ||||||||||||
Net income attributable to UGI (in USD) |
$ | 35.3 | $ | 48.2 | $ | (12.9 | ) | (26.8 | )% |
| Weather in Antargaz service territory was approximately 16% warmer than the prior-year period. Weather in Flagas service territories was approximately 5% warmer than the prior-year period. |
| Antargaz volumes decreased primarily due to the warmer weather and customer conservation resulting from higher LPG prices. Flagas volumes increased as a result of acquisitions completed in late fiscal 2010 and early fiscal 2011. |
| Total margin was about equal to last year, as increased margin primarily related to Flagas acquisitions (9.2 million) was offset by lower total margin from Antargaz (10.0 million) resulting primarily from lower volumes sold partially offset by slightly higher unit margins. |
| Operating income decreased principally due to the lower total margin at Antargaz. The higher total margin at Flaga was offset by increased operating and depreciation expenses associated with Flagas acquisitions including acquisition integration costs. |
| The decrease in net income attributable to UGI is primarily due to the decrease in total margin at Antargaz. |
For the three months ended March 31, | 2011 | 2010 | Increase | |||||||||||||
Revenues |
$ | 452.5 | $ | 445.4 | $ | 7.1 | 1.6 | % | ||||||||
Total margin (a) |
$ | 163.9 | $ | 154.0 | $ | 9.9 | 6.4 | % | ||||||||
Operating income |
$ | 100.9 | $ | 91.1 | $ | 9.8 | 10.8 | % | ||||||||
System throughput billions of cubic feet (bcf) |
61.3 | 54.6 | 6.7 | 12.3 | % | |||||||||||
Degree days % colder (warmer) than normal |
6.6 | % | (2.0 | )% | ||||||||||||
Net income attributable to UGI |
$ | 58.4 | $ | 49.0 | $ | 9.4 | 19.2 | % |
| Weather was 8.8% colder than the prior year. |
| The increase in total system throughput reflects the impact of colder weather on core market customers and higher throughput to certain low-margin interruptible customers resulting from the colder weather and improving regional economic conditions. |
UGI Reports Second Quarter Results, Updates Guidance
|
Page 3 |
| Total margin increased primarily due to the increased margin contribution resulting from higher throughput to core market customers. |
| Operating income increased, primarily reflecting the higher total margin. |
| Net income attributable to UGI benefited from the higher operating income and a lower effective tax rate reflecting the regulatory impact of greater state tax depreciation. |
For the three months ended March 31, | 2011 | 2010 | Increase (decrease) | |||||||||||||
Revenues |
$ | 31.7 | $ | 31.6 | $ | 0.1 | 0.3 | % | ||||||||
Total margin (a) |
$ | 9.7 | $ | 9.1 | $ | 0.6 | 6.6 | % | ||||||||
Operating income |
$ | 3.0 | $ | 3.1 | $ | (0.1 | ) | (3.2 | )% | |||||||
Distribution sales millions of kilowatt hours (gwh) |
279.0 | 262.8 | 16.2 | 6.2 | % | |||||||||||
Net income attributable to UGI |
$ | 1.7 | $ | 1.6 | $ | 0.1 | 6.2 | % |
| Kilowatt-hour sales were higher than the prior-year period reflecting the impact of colder weather on heating-related sales. |
| The increase in total margin was primarily related to the higher kilowatt hour sales. |
| The increase in net income attributable to UGI reflects the increased total margin partially offset by higher operating expenses. |
For the three months ended March 31, | 2011 | 2010 | Increase (decrease) | |||||||||||||
Revenues |
$ | 360.3 | $ | 438.6 | $ | (78.3 | ) | (17.9 | )% | |||||||
Total margin (a) |
$ | 54.9 | $ | 56.3 | $ | (1.4 | ) | (2.5 | )% | |||||||
Operating income |
$ | 40.8 | $ | 40.8 | $ | | 0.0 | % | ||||||||
Net income attributable to UGI |
$ | 25.5 | $ | 24.2 | $ | 1.3 | 5.4 | % |
| The decrease in revenues primarily reflects the absence of revenues from Atlantic Energys import and transshipment facility ($50.8 million), which was divested in July 2010 and, to a lesser extent, lower revenues from gas marketing activities reflecting lower natural gas prices. |
| Total margin decreased due to the absence of margin from Atlantic Energy ($4.6 million) and lower electric generation margin ($2.6 million) partially offset by higher margins from natural gas peaking and asset management activities. Electric generation margins declined due to lower electricity prices in the current quarter and the absence of margin from the Hunlock plant, which ceased operations in May 2010 to transition to a 125-megawatt natural gas-fired generating station. |
| Operating income was equal to last year, as the lower total margin was offset by reduced expenses due to the Hunlock plant shutdown and the divestiture of Atlantic Energy. |
| Net income attributable to UGI was higher in the current quarter reflecting the impact of income tax benefits related to solar energy projects. |
(a) | Total margin represents total revenues less total cost of sales. Total margin for Electric Utility represents total revenues less total cost of sales and revenue-related taxes. |
UGI Reports Second Quarter Results, Updates Guidance
|
Page 4 |
C-06 | ### | 5/2/11 |
Three Months Ended | Six Months Ended | Twelve Months Ended | ||||||||||||||||||||||
March 31, | March 31, | March 31, | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
AmeriGas Propane |
$ | 906.8 | $ | 886.1 | $ | 1,607.0 | $ | 1,542.7 | $ | 2,384.6 | $ | 2,252.4 | ||||||||||||
International Propane |
503.9 | 386.4 | 958.8 | 693.3 | 1,325.0 | 1,032.9 | ||||||||||||||||||
Gas Utility |
452.5 | 445.4 | 773.6 | 773.2 | 1,047.9 | 1,061.0 | ||||||||||||||||||
Electric Utility |
31.7 | 31.6 | 60.6 | 65.6 | 115.2 | 130.1 | ||||||||||||||||||
Midstream & Marketing |
360.3 | 438.6 | 639.9 | 750.9 | 1,034.9 | 1,191.9 | ||||||||||||||||||
Corporate & Other (a) |
(74.2 | ) | (67.8 | ) | (93.3 | ) | (86.6 | ) | (108.7 | ) | (107.7 | ) | ||||||||||||
Total revenues |
$ | 2,181.0 | $ | 2,120.3 | $ | 3,946.6 | $ | 3,739.1 | $ | 5,798.9 | $ | 5,560.6 | ||||||||||||
Operating income (loss): |
||||||||||||||||||||||||
AmeriGas Propane |
$ | 154.6 | $ | 153.3 | $ | 246.2 | $ | 255.9 | $ | 226.1 | $ | 243.6 | ||||||||||||
International Propane |
61.8 | 80.8 | 115.8 | 124.7 | 108.1 | 122.3 | ||||||||||||||||||
Gas Utility |
100.9 | 91.1 | 176.0 | 154.8 | 196.5 | 171.4 | ||||||||||||||||||
Electric Utility |
3.0 | 3.1 | 6.6 | 8.5 | 11.8 | 13.4 | ||||||||||||||||||
Midstream & Marketing |
40.8 | 40.8 | 68.3 | 68.5 | 119.8 | 81.9 | ||||||||||||||||||
Corporate & Other (a) |
(4.1 | ) | (3.1 | ) | (3.6 | ) | (3.2 | ) | (3.0 | ) | (2.3 | ) | ||||||||||||
Total operating income |
357.0 | 366.0 | 609.3 | 609.2 | 659.3 | 630.3 | ||||||||||||||||||
Loss from equity investees |
(0.4 | ) | 0.0 | (0.6 | ) | 0.0 | (2.7 | ) | (2.3 | ) | ||||||||||||||
Loss on extinguishments of debt |
(18.8 | ) | 0.0 | (18.8 | ) | 0.0 | (18.8 | ) | 0.0 | |||||||||||||||
Interest expense: |
||||||||||||||||||||||||
AmeriGas Propane |
(16.3 | ) | (16.7 | ) | (31.7 | ) | (33.2 | ) | (63.6 | ) | (67.0 | ) | ||||||||||||
International Propane |
(6.3 | ) | (6.4 | ) | (12.7 | ) | (13.4 | ) | (24.7 | ) | (26.8 | ) | ||||||||||||
Gas Utility |
(10.2 | ) | (10.3 | ) | (20.3 | ) | (20.5 | ) | (40.3 | ) | (41.3 | ) | ||||||||||||
Electric Utility |
(0.6 | ) | (0.5 | ) | (1.1 | ) | (0.9 | ) | (2.0 | ) | (1.8 | ) | ||||||||||||
Midstream & Marketing |
(0.7 | ) | 0.0 | (1.4 | ) | 0.0 | (1.6 | ) | 0.0 | |||||||||||||||
Corporate & Other, net (a) |
(0.2 | ) | (0.2 | ) | (0.4 | ) | (0.3 | ) | (0.9 | ) | (0.4 | ) | ||||||||||||
Total interest expense |
(34.3 | ) | (34.1 | ) | (67.6 | ) | (68.3 | ) | (133.1 | ) | (137.3 | ) | ||||||||||||
Income before income taxes |
303.5 | 331.9 | 522.3 | 540.9 | 504.7 | 490.7 | ||||||||||||||||||
Income tax expense |
(87.9 | ) | (99.1 | ) | (151.7 | ) | (162.6 | ) | (156.7 | ) | (156.1 | ) | ||||||||||||
Net income |
215.6 | 232.8 | 370.6 | 378.3 | 348.0 | 334.6 | ||||||||||||||||||
Less: net income attributable to noncontrolling interests,
principally in AmeriGas Partners, L.P. |
(66.2 | ) | (75.7 | ) | (108.1 | ) | (122.8 | ) | (80.0 | ) | (93.7 | ) | ||||||||||||
Net income attributable to UGI Corporation |
$ | 149.4 | $ | 157.1 | $ | 262.5 | $ | 255.5 | $ | 268.0 | $ | 240.9 | ||||||||||||
Earnings per share attributable to UGI shareholders: |
||||||||||||||||||||||||
Basic |
$ | 1.34 | $ | 1.44 | $ | 2.36 | $ | 2.34 | $ | 2.42 | $ | 2.21 | ||||||||||||
Diluted |
$ | 1.32 | $ | 1.43 | $ | 2.33 | $ | 2.32 | $ | 2.39 | $ | 2.20 | ||||||||||||
Average common shares outstanding (thousands): |
||||||||||||||||||||||||
Basic |
111,637 | 109,232 | 111,267 | 109,158 | 110,648 | 108,776 | ||||||||||||||||||
Diluted |
113,160 | 110,086 | 112,782 | 110,026 | 111,908 | 109,643 | ||||||||||||||||||
Supplemental information: |
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Net income (loss) attributable to UGI Corporation: |
||||||||||||||||||||||||
AmeriGas Propane |
$ | 32.0 | $ | 36.4 | $ | 52.6 | $ | 59.4 | $ | 40.5 | $ | 49.9 | ||||||||||||
International Propane |
35.3 | 48.2 | 68.5 | 74.0 | 53.3 | 57.6 | ||||||||||||||||||
Gas Utility |
58.4 | 49.0 | 97.6 | 81.1 | 99.6 | 81.3 | ||||||||||||||||||
Electric Utility |
1.7 | 1.6 | 3.4 | 4.5 | 5.7 | 6.9 | ||||||||||||||||||
Midstream & Marketing |
25.5 | 24.2 | 43.6 | 40.6 | 71.2 | 48.4 | ||||||||||||||||||
Corporate & Other (a) |
(3.5 | ) | (2.3 | ) | (3.2 | ) | (4.1 | ) | (2.3 | ) | (3.2 | ) | ||||||||||||
Total net income attributable to UGI Corporation |
$ | 149.4 | $ | 157.1 | $ | 262.5 | $ | 255.5 | $ | 268.0 | $ | 240.9 | ||||||||||||
(a) | Corporate & Other includes the elimination of certain intercompany transactions. |