EX-99 2 c72172exv99.htm EXHIBIT 99 Filed by Bowne Pure Compliance
 

Exhibit 99.1
         
Contact:  
610-337-1000
  For Immediate Release:
   
Robert W. Krick, ext. 3645
  January 30, 2008
   
Brenda A. Blake, ext. 3202
    
AmeriGas Partners Reports First Quarter Results
VALLEY FORGE, Pa., January 30 — AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE: APU), reported net income for the first fiscal quarter ended December 31, 2007 of
$54.3 million compared to $55.6 million for the same period last year. The Partnership’s earnings before interest expense, income taxes, depreciation and amortization (EBITDA) was $93.1 million for the first quarter of 2008, unchanged from the first quarter of fiscal 2007.
For the three months ended December 31, 2007, retail propane volumes sold declined 1.3% to
279.1 million gallons from 282.9 million gallons sold in the prior year period. Weather was 7.2% warmer than normal compared to weather that was 8.6% warmer than normal in the prior year period, according to the National Oceanic and Atmospheric Administration.
Eugene V. N. Bissell, chief executive officer of AmeriGas, said “Significant increases in propane sales prices caused by extraordinarily high propane costs resulted in customer conservation that more than offset higher volumes sold in the quarter from businesses we acquired last year. The average wholesale propane cost at Mt. Belvieu, Texas for the quarter increased 58% over the same period last year. In spite of the challenging environment of warm weather and high product cost, we continued to execute our strategies to build long term value for unitholders.”
Revenues for the quarter increased to $748.2 million from $616.6 million in the prior year period, reflecting higher average selling prices due to significantly higher propane product costs. Total margin increased $13.9 million mainly due to higher average retail propane unit margins and slightly higher ancillary income. Operating and administrative expenses rose primarily as a result of expenses associated with acquisitions, increased compensation and benefits costs and higher vehicle expenses.Although EBITDA was unchanged from the prior year, operating income decreased to $74.0 million from $75.3 million in the fiscal 2007 quarter, reflecting higher depreciation and amortization costs.
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AmeriGas Partners Reports First Quarter Results   Page 2
Separately, AmeriGas Partners announced that for the three-year period ended December 31, 2007, the compound annual total return on Partnership units was 15%, exceeding a significant number of the companies in its peer group of 19 publicly-traded master limited partnerships. As a result, employees who received performance-contingent unit awards in early 2005 in accordance with the Partnership’s long-term compensation plan will receive a portion of the payout under the plan in Partnership units and will be deemed to have sold a portion of the units to AmeriGas Partners for cash to pay income taxes. The appropriate disclosures on Form 4 will be filed today with the Securities and Exchange Commission.
AmeriGas Partners is the nation’s largest retail propane marketer, serving nearly 1.3 million customers from over 600 locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 44% of the Partnership and individual unitholders own the remaining 56%.
AmeriGas Partners, L. P. will host its first quarter FY 2008 earnings conference call on Wednesday, January 30, 2008, at 4:00 PM ET. Interested parties may listen to a live audio webcast of the conference call at http://www.shareholder.com/ugi/APU/medialist.cfm. A telephonic replay of the call can be accessed approximately one hour after the completion of the call at 1-888-203-1112; International replay 1-719-457-0820; passcode 6871439, through February 1, 2008.
The financial table appended to this news release can be viewed directly at http://www.shareholder.com/ugi/APU/1Q08FinancialTable.pdf.
Comprehensive information about AmeriGas is available on the Internet at www.amerigas.com.
This press release contains certain forward-looking statements which management believes to be reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management’s control. You should read the Partnership’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions, cost volatility and availability of propane, increased customer conservation measures due to high energy prices, the capacity to transport propane to our market areas and political, economic and regulatory conditions in the U. S. and abroad. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.
         
AP-02   ###   1/30/08

 

 

 

AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
                                 
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2007     2006     2007     2006  
Revenues:
                                
Propane
   $ 699,669     $ 569,924     $ 2,225,825     $ 1,935,281  
Other
     48,499       46,667       183,127       170,352  
 
                        
 
     748,168       616,591       2,408,952       2,105,633  
 
                        
 
                                
Costs and expenses:
                                
Cost of sales — propane
     487,865       370,995       1,481,941       1,256,327  
Cost of sales — other
     18,482       17,711       72,896       68,359  
Operating and administrative expenses
     152,884       138,450       576,958       540,300  
Depreciation
     18,657       17,605       72,607       68,447  
Amortization
     1,167       962       4,264       4,319  
Gain on sale of Arizona storage facility
     —       —       (46,117 )     —  
Other (income), net
     (4,845 )     (4,392 )     (18,025 )     (16,770 )
 
                        
 
     674,210       541,331       2,144,524       1,920,982  
 
                        
Operating income
     73,958       75,260       264,428       184,651  
Loss on extinguishment of debt
     —       —       —       (17,079 )
Interest expense
     (18,230 )     (17,973 )     (71,744 )     (73,148 )
 
                        
Income before income taxes
     55,728       57,287       192,684       94,424  
Income tax expense
     (693 )     (911 )     (628 )     (1,045 )
Minority interests
     (730 )     (736 )     (2,607 )     (1,594 )
 
                        
Net income
   $ 54,305     $ 55,640     $ 189,449     $ 91,785  
 
                        
 
                                
General partner’s interest in net income
   $ 587     $ 556     $ 5,630     $ 918  
 
                        
 
                                
Limited partners’ interest in net income
   $ 53,718     $ 55,084     $ 183,819     $ 90,867  
 
                        
 
                                
 
                                
Income per limited partner unit (a)
                                
Basic
   $ 0.87     $ 0.88     $ 3.13     $ 1.60  
 
                        
 
                                
Diluted
   $ 0.87     $ 0.88     $ 3.13     $ 1.60  
 
                        
 
                                
Average limited partner units outstanding:
                                
Basic
     56,993       56,806       56,875       56,799  
 
                        
 
                                
Diluted
     57,036       56,846       56,911       56,836  
 
                        
 
                                
SUPPLEMENTAL INFORMATION:
                                
 
                                
Retail gallons sold (millions)
     279.1       282.9       1,002.9       966.2  
EBITDA (b)
   $ 93,052     $ 93,091     $ 338,692     $ 238,744  
Distributable cash (b)
   $ 67,510     $ 67,770     $ 239,775     $ 157,121  
Capital expenditures:
                                
Maintenance capital expenditures
   $ 7,312     $ 7,348     $ 27,173     $ 25,554  
Growth capital expenditures
   $ 10,871     $ 14,188     $ 43,238     $ 48,607  
(a)   In accordance with Emerging Issues Task Force Issue No. 03-6, “Participating Securities and the Two-Class Method under FASB Statement No. 128” (“EITF 03-6”), the Partnership calculates net income per limited partner unit for each period according to distributions declared and participation rights in undistributed earnings, as if all of the earnings for the period had been distributed. In periods with undistributed earnings above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the General Partner.
 
    Theoretical distributions of net income in accordance with EITF 03-6 for the three and the twelve months ended December 31, 2007 resulted in an increased allocation of net income to the General Partner which had the effect of decreasing earnings per diluted limited partner unit by $0.07 and $0.10, respectively. Theoretical distributions of net income in accordance with EITF 03-6 for the three months ended December 31, 2006 resulted in an increased allocation of net income to the General Partner which had the effect of decreasing earnings per diluted limited partner unit by $0.09. EITF 03-6 did not impact net income per limited partner unit for the twelve months ended December 31, 2006.
(continued)

 

 

 

(continued)
(b)   EBITDA (earnings before interest expense, income taxes, depreciation and amortization) should not be considered as an alternative to net income (as an indicator of operating performance) or as an alternative to cash flow (as a measure of liquidity or ability to service debt obligations) and is not a measure of performance or financial condition under accounting principles generally accepted in the United States. Management believes EBITDA is a meaningful non-GAAP financial measure used by investors to compare the Partnership’s operating performance with other companies within the propane industry and to evaluate our ability to meet loan covenants. The Partnership’s definition of EBITDA may be different from that used by other entities.
 
    Management defines distributable cash as EBITDA less interest expense and maintenance capital expenditures and excluding losses on extinguishments of debt in connection with a refinancing. Maintenance capital expenditures are defined in the Partnership Agreement as expenditures made to maintain the operating capacity of the Partnership’s existing capital assets. Management believes distributable cash is a meaningful non-GAAP measure for evaluating the Partnership’s ability to declare and pay quarterly distributions. The Partnership’s definition of distributable cash may be different from that used by other entities.
 
    The following table includes reconciliations of net income to EBITDA and distributable cash for all periods presented:
                                 
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2007     2006     2007     2006  
 
                                
Net income
   $ 54,305     $ 55,640     $ 189,449     $ 91,785  
Income tax expense
     693       911       628       1,045  
Interest expense
     18,230       17,973       71,744       73,148  
Depreciation
     18,657       17,605       72,607       68,447  
Amortization
     1,167       962       4,264       4,319  
 
                        
EBITDA
     93,052       93,091       338,692       238,744  
Interest expense
     (18,230 )     (17,973 )     (71,744 )     (73,148 )
Maintenance capital expenditures
     (7,312 )     (7,348 )     (27,173 )     (25,554 )
Loss on extinguishment of debt
     —       —       —       17,079  
 
                        
Distributable cash
   $ 67,510     $ 67,770     $ 239,775     $ 157,121