EX-99 2 c73146exv99.htm EXHIBIT 99 Filed by Bowne Pure Compliance
 

Exhibit 99
         
Contact:
  610-337-1000   For Immediate Release:
 
  Robert W. Krick, ext. 3645   April 30, 2008
 
  Brenda A. Blake, ext. 3202    
AmeriGas Partners Reports Record Results, Reiterates 2008 Guidance
VALLEY FORGE, Pa., April 30 — AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE: APU), reported net income for the second fiscal quarter ended March 31, 2008 of $133.0 million, a nearly 11% increase compared to net income of $119.9 million for the same period last year.
The Partnership’s earnings before interest expense, income taxes, depreciation and amortization (EBITDA) increased to $171.8 million for the second fiscal quarter of 2008, a new record for the quarter and a 9.8% increase over last year’s record EBITDA of $156.4 million. For the three months ended March 31, 2008, retail volumes sold were essentially unchanged from the prior-year period, as the beneficial impacts of cooler weather and higher volumes sold from businesses acquired last year were more than offset by a number of factors, including customer conservation resulting from significant increases in propane sales prices caused by record high propane costs and general economic conditions. Weather was virtually normal during the recent quarter and 4.0% colder than in the prior-year period, according to the National Oceanic and Atmospheric Administration (NOAA). The average wholesale cost of propane at Mont Belvieu, Texas for the 2008 quarter increased more than 50% over the average cost in the same period last year.
Eugene V. N. Bissell, chief executive officer of AmeriGas, said, “I am happy to report record second quarter EBITDA for a second consecutive year. Faced with a challenging operating environment, our employees continued to execute on our strategies and delivered excellent operating results while maintaining a focus on building long-term value for unitholders. Based upon the strength of our results, we continue to expect EBITDA to be in the range of $300 million to $310 million for the fiscal year ending September 30, 2008. In addition, yesterday we announced a distribution increase of 5% to $2.56 per unit on an annualized basis and increased our annual distribution growth objective to 5% from 3%. These announcements clearly reflect our confidence in the AmeriGas business model of long term, steady growth.”
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AmeriGas Partners Reports Record Results, Reiterates 2008 Guidance   Page 2
Revenues for the quarter were $1,006.7 million versus $809.8 million a year ago primarily due to higher retail selling prices associated with significantly higher commodity prices. Operating income rose 10% to $153.3 million for the quarter principally reflecting higher retail unit margins partially offset by higher operating and administrative expenses. Operating and administrative expenses increased $9.0 million year-over-year for the quarter primarily due to expenses associated with acquisitions and higher vehicle and uncollectible accounts expenses.
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 second quarter FY 2008 earnings conference call on Wednesday, April 30, 2008, at 4:00 PM ET. Interested parties may listen to the audio webcast both live and in replay on the Internet at http://www.shareholder.com/ugi/APU/medialist.cfm or at the company website; www.amerigas.com and click on Investor Relations. The webcast replay will be available through May 30. A telephonic replay will be available from 7:00 PM ET on April 30 through midnight Friday, May 2. The replay may be accessed at 888-203-1112, passcode 1381490 and International access 719-457-0820, passcode 1381490.
The financial table appended to this news release can be viewed directly at http://www.shareholder.com/ugi/APU/2Q08FinancialTable.pdf.
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.
Comprehensive information about AmeriGas is available on the Internet at www.amerigas.com.
         
 
       
AP-04
  ###   4/30/08

 

 


 

AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
                                                 
    Three Months Ended     Six Months Ended     Twelve Months Ended  
    March 31,     March 31,     March 31,  
    2008     2007     2008     2007     2008     2007  
Revenues:
                                               
Propane
  $ 960,307     $ 764,773     $ 1,659,976     $ 1,334,697     $ 2,421,359     $ 2,021,637  
Other
    46,349       45,035       94,848       91,702       184,441       175,674  
 
                                   
 
    1,006,656       809,808       1,754,824       1,426,399       2,605,800       2,197,311  
 
                                   
Costs and expenses:
                                               
Cost of sales — propane
    661,279       485,015       1,149,144       856,010       1,658,205       1,307,497  
Cost of sales — other
    14,717       15,289       33,199       33,000       72,324       70,181  
Operating and administrative expenses
    164,656       155,702       317,540       294,152       585,912       554,407  
Depreciation
    18,839       17,621       37,496       35,226       73,825       69,263  
Amortization
    1,183       953       2,350       1,915       4,494       4,161  
Gain on sale of Arizona storage facility
                            (46,117 )      
Other (income), net
    (7,305 )     (4,032 )     (12,150 )     (8,424 )     (21,298 )     (15,784 )
 
                                   
 
    853,369       670,548       1,527,579       1,211,879       2,327,345       1,989,725  
 
                                   
Operating income
    153,287       139,260       227,245       214,520       278,455       207,586  
Interest expense
    (18,697 )     (17,816 )     (36,927 )     (35,789 )     (72,625 )     (71,536 )
 
                                   
Income before income taxes and minority interests
    134,590       121,444       190,318       178,731       205,830       136,050  
Income tax expense
    (84 )     (139 )     (777 )     (1,050 )     (573 )     (1,128 )
Minority interests
    (1,556 )     (1,419 )     (2,286 )     (2,155 )     (2,744 )     (2,010 )
 
                                   
Net income
  $ 132,950     $ 119,886     $ 187,255     $ 175,526     $ 202,513     $ 132,912  
 
                                   
General partner’s interest in net income
  $ 1,373     $ 1,199     $ 1,960     $ 1,755     $ 5,804     $ 1,329  
 
                                   
Limited partners’ interest in net income
  $ 131,577     $ 118,687     $ 185,295     $ 173,771     $ 196,709     $ 131,583  
 
                                   
 
                                               
Income per limited partner unit (a)
                                               
Basic
  $ 1.58     $ 1.47     $ 2.47     $ 2.37     $ 3.31     $ 2.32  
 
                                   
Diluted
  $ 1.58     $ 1.47     $ 2.46     $ 2.37     $ 3.31     $ 2.31  
 
                                   
Average limited partner units outstanding:
                                               
Basic
    57,005       56,822       56,999       56,814       56,920       56,806  
 
                                   
Diluted
    57,037       56,850       57,036       56,848       56,957       56,842  
 
                                   
SUPPLEMENTAL INFORMATION:
                                               
Retail gallons sold (millions)
    368.5       370.1       647.6       653.0       1,001.3       994.9  
EBITDA (b)
  $ 171,753     $ 156,415     $ 264,805     $ 249,506     $ 354,030     $ 279,000  
Expenditures for property, plant and equipment:
                                               
Maintenance capital expenditures
    5,585       5,819       12,897       13,167       26,939       24,261  
Growth capital expenditures
    7,508       11,336       18,379       25,524       39,410       49,539  
     
(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 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, six and twelve months ended March 31, 2008 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 $0.73, $0.79 and $0.15, respectively. Theoretical distributions of net income in accordance with EITF 03-6 for the three and the six months ended March 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 $0.62 and $0.69, respectively. EITF 03-6 did not impact net income per limited partner unit for the twelve months ended March 31, 2007.
 
(b)   Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) should not be considered as an alternative to net income (as an indicator of operating performance) 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 our ability to meet loan covenants. The Partnership’s definition of EBITDA may be different from that used by other companies. Management uses EBITDA to compare year-over-year profitability of the business without regard to capital structure as well as to compare the relative performance of the Partnership to that of other master limited partnerships without regard to their financing methods, capital structure, income taxes or historical cost basis. In view of the omission of interest, income taxes, depreciation, and amortization from EBITDA, management also assesses the profitability of the business by comparing net income for the relevant years.
(continued)

 

 


 

AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
(continued)
Management also uses EBITDA to assess its profitability because the Partnership’s parent, UGI Corporation, uses the Partnership EBITDA to assess the profitability of the Partnership. UGI Corporation discloses the Partnership’s EBITDA as the profitability measure to comply with the requirement in Statement of Financial Accounting Standards No. 131, “Disclosures about Segments of an Enterprise and Related Information,” to provide profitability information about its domestic propane segment. Management also considers that weather significantly impacts demand for propane and profitability because many customers use propane for heating purposes.
The following table includes reconciliations of net income to EBITDA for all periods presented:
                                                 
    Three Months Ended     Six Months Ended     Twelve Months Ended  
    March 31,     March 31,     March 31,  
    2008     2007     2008     2007     2008     2007  
Net income
  $ 132,950     $ 119,886     $ 187,255     $ 175,526     $ 202,513     $ 132,912  
Income tax expense
    84       139       777       1,050       573       1,128  
Interest expense
    18,697       17,816       36,927       35,789       72,625       71,536  
Depreciation
    18,839       17,621       37,496       35,226       73,825       69,263  
Amortization
    1,183       953       2,350       1,915       4,494       4,161  
 
                                   
EBITDA
  $ 171,753     $ 156,415     $ 264,805     $ 249,506     $ 354,030     $ 279,000  
 
                                   
The following table includes a reconciliation of forecasted net income to forecasted EBITDA for the fiscal year ending September 30, 2008:
         
    Forecast  
    Fiscal  
    Year  
    Ending  
    September 30,  
    2008  
Net income (estimate)
  $ 151,000  
Interest expense (estimate)
    73,000  
Income tax expense (estimate)
    1,000  
Depreciation (estimate)
    75,000  
Amortization (estimate)
    5,000  
 
     
EBITDA (estimate)
  $ 305,000