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)) |
99.1 | Press Release of UGI Corporation dated November 8, 2011. |
UGI Corporation |
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November 8, 2011 | By: | Hugh J. Gallagher | ||
Name: | Hugh J. Gallagher | |||
Title: | Treasurer |
EXHIBIT NO. | DESCRIPTION | |||
99.1 | Press Release of UGI Corporation dated November 8, 2011. |
Contact:
|
610-337-1000 | For Immediate Release: | ||
Hugh J. Gallagher, ext. 1029 | November 8, 2011 | |||
Brenda A. Blake, ext. 3202 |
UGI Reports Earnings for Fiscal 2011, Issues Guidance for 2012
|
Page 2 |
For the fiscal year ended September 30, | 2011 | 2010 | Increase (decrease) | |||||||||||||
Revenues |
$ | 2,538.0 | $ | 2,320.3 | $ | 217.7 | 9.4 | % | ||||||||
Total margin (a) |
$ | 932.7 | $ | 925.2 | $ | 7.5 | 0.8 | % | ||||||||
Partnership EBITDA |
$ | 297.1 | $ | 321.0 | $ | (23.9 | ) | (7.4 | )% | |||||||
Operating income |
$ | 242.9 | $ | 235.8 | $ | 7.1 | 3.0 | % | ||||||||
Retail gallons sold |
874.2 | 893.4 | (19.2 | ) | (2.1 | )% | ||||||||||
Degree days % (warmer) than normal |
(1.0 | )% | (2.3 | )% | ||||||||||||
Net income attributable to UGI |
$ | 39.9 | $ | 47.3 | $ | (7.4 | ) | (15.6 | )% |
| Weather was 1.3% cooler than in the prior-year period. |
| Retail gallons sold decreased 2.1% primarily due to an early end to the heating season in AmeriGass southern regions and customer conservation. |
| Total margin increased as higher non-propane margin was partially offset by the impact of lower retail propane total margin resulting from lower volumes sold. |
| Operating income increased, reflecting the higher total margin, the absence of the $12.2 million loss on termination of interest rate hedges recorded in 2010 and higher other income ($5.7 million) partially offset by higher operating and administrative expenses ($10.9 million) and increased depreciation and amortization ($7.3 million). |
For the fiscal year ended September 30, | 2011 | 2010 | Increase (decrease) | |||||||||||||
Revenues |
| 1,059.6 | | 763.1 | | 296.5 | 38.9 | % | ||||||||
Total margin (a) |
| 371.7 | | 345.8 | | 25.9 | 7.5 | % | ||||||||
Operating income |
| 72.0 | | 82.4 | | (10.4 | ) | (12.6 | )% | |||||||
Antargaz retail gallons sold |
270.5 | 279.9 | (9.4 | ) | (3.4 | )% | ||||||||||
Antargaz degree days % (warmer) than normal |
(7.8 | )% | (0.5 | )% | ||||||||||||
Flaga retail gallons sold |
159.2 | 70.4 | 88.8 | 126.1 | % | |||||||||||
Flaga degree days % (warmer) than normal |
(4.6 | )% | (0.5 | )% | ||||||||||||
Net income attributable to UGI (in USD) |
$ | 41.0 | $ | 58.8 | $ | (17.8 | ) | (30.3 | )% |
| Weather in France was 7.4% warmer than in the prior-year. Weather during the second and third quarters of fiscal 2011 was warmer than the comparable prior-year periods by 16% and 42%, respectively. Weather in Flagas service territory was approximately 4% warmer than in the prior-year period. |
UGI Reports Earnings for Fiscal 2011, Issues Guidance for 2012
|
Page 3 |
| After strong volume performance during the first quarter of fiscal 2011, Antargaz experienced a year-over year decline of over 20 million gallons during the second and third quarters of fiscal 2011, primarily due to weather that was significantly warmer than the comparable prior-year periods. Flagas volumes increased significantly as a result of acquisitions completed in late fiscal 2010 and early fiscal 2011 partially offset by the effects of warmer weather. |
| Total margin increased reflecting higher total margin from Flaga (41.9 million) primarily due to acquisition-related volume increases partially offset by lower total margin from Antargaz (16.0 million) resulting from lower volumes sold and the impact of rapidly rising LPG product costs on unit margins particularly during the first quarter of fiscal 2011. |
| Operating income decreased primarily due to lower total margin at Antargaz and lower operating income at Flaga (1.9 million) partially offset by the 7.1 million reversal of the French Competition Authority reserve. At Flaga, the higher total margin was more than offset by increased operating expenses and depreciation and amortization associated with the acquired businesses. |
| The effects of euro-to-dollar currency translation during fiscal 2011 decreased net income attributable to UGI by approximately $7.3 million or $0.06 per diluted share. |
For the fiscal year ended September 30, | 2011 | 2010 | Increase (decrease) | |||||||||||||
Revenues |
$ | 1,026.4 | $ | 1,047.5 | $ | (21.1 | ) | (2.0 | )% | |||||||
Total margin (a) |
$ | 415.8 | $ | 394.1 | $ | 21.7 | 5.5 | % | ||||||||
Operating income |
$ | 199.6 | $ | 175.3 | $ | 24.3 | 13.9 | % | ||||||||
System throughput billions of cubic feet (bcf) |
173.2 | 153.9 | 19.3 | 12.5 | % | |||||||||||
Degree days % colder (warmer) than normal |
3.5 | % | (4.5 | )% | ||||||||||||
Net income attributable to UGI |
$ | 99.3 | $ | 83.1 | $ | 16.2 | 19.5 | % |
| Weather was 8.5% colder than the prior year. |
| Total distribution system throughput increased reflecting higher throughput to certain low margin interruptible customers; the effects of colder weather on throughput to core market customers, and, to a lesser extent, customer growth from conversion activity. |
| Total margin increased primarily due to the increased throughput to core market customers. |
| Operating income increased principally due to the higher total margin and higher other income. |
| Net income attributable to UGI benefitted from the regulatory effects on income taxes of greater state tax depreciation. |
For the fiscal year ended September 30, | 2011 | 2010 | Increase (decrease) | |||||||||||||
Revenues |
$ | 109.1 | $ | 120.2 | $ | (11.1 | ) | (9.2 | )% | |||||||
Total margin (a) |
$ | 35.1 | $ | 36.5 | $ | (1.4 | ) | (3.8 | )% | |||||||
Operating income |
$ | 11.4 | $ | 13.7 | $ | (2.3 | ) | (16.8 | )% | |||||||
Distribution sales millions of kilowatt hours (gwh) |
994.7 | 972.6 | 22.1 | 2.3 | % | |||||||||||
Net income attributable to UGI |
$ | 5.7 | $ | 6.8 | $ | (1.1 | ) | (16.2 | )% |
| Kilowatt-hour sales were higher than the prior-year period reflecting the impact of colder weather on heating-related sales primarily during the second and third quarters of fiscal 2011. |
| The decrease in total margin is primarily the result of lower average unit margins under default service rates beginning January 1, 2010. |
| The decrease in operating income reflects the lower total margin and increased operating and maintenance expenses. |
UGI Reports Earnings for Fiscal 2011, Issues Guidance for 2012
|
Page 4 |
For the fiscal year ended September 30, | 2011 | 2010 | Increase (decrease) | |||||||||||||
Revenues |
$ | 1,059.7 | $ | 1,145.9 | $ | (86.2 | ) | (7.5 | )% | |||||||
Total margin (a) |
$ | 139.7 | $ | 135.2 | $ | 4.5 | 3.3 | % | ||||||||
Operating income |
$ | 82.9 | $ | 120.0 | $ | (37.1 | ) | (30.9 | )% | |||||||
Net income attributable to UGI |
$ | 52.5 | $ | 68.2 | $ | (15.7 | ) | (23.0 | )% |
| The decrease in revenues resulted primarily from the absence of revenues from Atlantic Energys import and transshipment facility which was sold in July 2010, and from lower natural gas marketing revenues associated with lower average natural gas prices. These decreases were partially offset by higher revenues from retail power sales and, to a lesser extent, incremental natural gas storage revenues. |
| The modest increase in total margin was mainly due to higher total margin from (1) incremental margin from natural gas storage ($8.4 million) (2) higher natural gas peaking activities ($4.6 million) and (3) greater natural gas and retail power marketing ($5.7 million) partially offset by lower contribution from electric generation assets and the absence of margin from Atlantic Energy. |
| Operating income decreased primarily due to the absence of the pre-tax gain on the sale of Atlantic Energy ($36.5 million) recorded in fiscal 2010. |
(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. |
C 17 | ### | 11/8/11 |
Three Months Ended | Twelve Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
AmeriGas Propane |
$ | 460.2 | $ | 381.0 | $ | 2,538.0 | $ | 2,320.3 | ||||||||
International Propane |
266.6 | 174.4 | 1,488.7 | 1,059.5 | ||||||||||||
Gas Utility |
104.7 | 125.2 | 1,026.4 | 1,047.5 | ||||||||||||
Electric Utility |
24.4 | 29.3 | 109.1 | 120.2 | ||||||||||||
Midstream & Marketing |
202.7 | 196.4 | 1,059.7 | 1,145.9 | ||||||||||||
Corporate & Other (a) |
(19.3 | ) | (15.9 | ) | (130.6 | ) | (102.0 | ) | ||||||||
Total revenues |
$ | 1,039.3 | $ | 890.4 | $ | 6,091.3 | $ | 5,591.4 | ||||||||
Operating (loss) income: |
||||||||||||||||
AmeriGas Propane |
$ | (10.0 | ) | $ | (25.4 | ) | $ | 242.9 | $ | 235.8 | ||||||
International Propane |
(14.7 | ) | (10.6 | ) | 86.1 | 117.0 | ||||||||||
Gas Utility |
6.4 | 6.7 | 199.6 | 175.3 | ||||||||||||
Electric Utility |
2.4 | 2.6 | 11.4 | 13.7 | ||||||||||||
Midstream & Marketing |
6.2 | 44.6 | 82.9 | 120.0 | ||||||||||||
Corporate & Other (a) |
(0.8 | ) | 0.9 | (6.9 | ) | (2.6 | ) | |||||||||
Total operating (loss) income |
(10.5 | ) | 18.8 | 616.0 | 659.2 | |||||||||||
Loss from equity investees |
(0.1 | ) | (0.2 | ) | (0.9 | ) | (2.1 | ) | ||||||||
Loss on extinguishments of debt |
(19.3 | ) | | (38.1 | ) | | ||||||||||
Interest expense: |
||||||||||||||||
AmeriGas Propane |
(16.1 | ) | (14.9 | ) | (63.5 | ) | (65.1 | ) | ||||||||
International Propane |
(7.6 | ) | (6.0 | ) | (28.2 | ) | (25.4 | ) | ||||||||
Gas Utility |
(10.2 | ) | (10.0 | ) | (40.4 | ) | (40.5 | ) | ||||||||
Electric Utility |
(0.6 | ) | (0.5 | ) | (2.4 | ) | (1.8 | ) | ||||||||
Midstream & Marketing |
(0.7 | ) | (0.2 | ) | (2.7 | ) | (0.2 | ) | ||||||||
Corporate & Other, net (a) |
(0.2 | ) | (0.3 | ) | (0.8 | ) | (0.8 | ) | ||||||||
Total interest expense |
(35.4 | ) | (31.9 | ) | (138.0 | ) | (133.8 | ) | ||||||||
(Loss) income before income taxes |
(65.3 | ) | (13.3 | ) | 439.0 | 523.3 | ||||||||||
Income tax benefit (expense) |
16.4 | (5.1 | ) | (130.8 | ) | (167.6 | ) | |||||||||
Net (loss) income |
(48.9 | ) | (18.4 | ) | 308.2 | 355.7 | ||||||||||
Less: net loss (income) attributable to noncontrolling interests,
principally in AmeriGas Partners, L.P. |
26.5 | 20.5 | (75.3 | ) | (94.7 | ) | ||||||||||
Net (loss) income attributable to UGI Corporation |
$ | (22.4 | ) | $ | 2.1 | $ | 232.9 | $ | 261.0 | |||||||
(Loss) earnings per share attributable to UGI shareholders: |
||||||||||||||||
Basic |
$ | (0.20 | ) | $ | 0.02 | $ | 2.09 | $ | 2.38 | |||||||
Diluted |
$ | (0.20 | ) | $ | 0.02 | $ | 2.06 | $ | 2.36 | |||||||
Average common shares outstanding (thousands): |
||||||||||||||||
Basic |
112,151 | 110,358 | 111,674 | 109,588 | ||||||||||||
Diluted |
112,151 | 111,470 | 112,944 | 110,511 | ||||||||||||
Supplemental information: |
||||||||||||||||
Net (loss) income attributable to UGI Corporation: |
||||||||||||||||
AmeriGas Propane |
$ | (10.7 | ) | $ | (9.2 | ) | $ | 39.9 | $ | 47.3 | ||||||
International Propane |
(12.7 | ) | (11.7 | ) | 41.0 | 58.8 | ||||||||||
Gas Utility |
(2.8 | ) | (0.4 | ) | 99.3 | 83.1 | ||||||||||
Electric Utility |
1.2 | 1.1 | 5.7 | 6.8 | ||||||||||||
Midstream & Marketing |
4.4 | 22.1 | 52.5 | 68.2 | ||||||||||||
Corporate & Other (a) |
(1.8 | ) | 0.2 | (5.5 | ) | (3.2 | ) | |||||||||
Total net (loss) income attributable
to UGI Corporation |
$ | (22.4 | ) | $ | 2.1 | $ | 232.9 | $ | 261.0 | |||||||
(a) | Corporate & Other includes the elimination of certain intercompany transactions. |