EX-99 2 c84532exv99.htm EXHIBIT 99 Exhibit 99
Exhibit 99
         
Contact:
  610-337-1000
Robert W. Krick, ext. 3645
Brenda A. Blake, ext. 3202 		  For Immediate Release:
April 30, 2009
AmeriGas Partners Reports Increase in Earnings, Reiterates 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, 2009 of $147.8 million compared to net income of $133.0 million for the same period last year.
The Partnership’s earnings before interest expense, income taxes, depreciation and amortization (EBITDA) increased to $187.3 million for the second quarter of fiscal 2009 compared to EBITDA of $171.8 million the same period last year. For the three months ended March 31, 2009, retail volumes sold were 6.9% lower than the prior-year period reflecting the impact of a deterioration in economic conditions on commercial volumes, continued customer conservation, and slightly warmer weather during the quarter. Weather was 2.3% warmer than normal during the recent quarter and 1.3% warmer than in the prior-year period, according to the National Oceanic and Atmospheric Administration (NOAA).
Eugene V. N. Bissell, chief executive officer of AmeriGas, said, “I am pleased to report strong second quarter EBITDA, as higher unit margins resulting from significantly lower and less volatile wholesale propane prices more than offset the impacts of the deepening recession, customer conservation and warmer weather. With the heating season now concluded, we continue to expect EBITDA for the fiscal year ending September 30, 2009, to be in the range of $335 million to $345 million, excluding the previously reported gain of $39.9 million on the sale of our California storage terminal. This guidance reflects the strength of our results to date, the expectation of a return to more normal unit margins now that wholesale prices have stabilized, and the effects of the recession on sales volumes throughout the second half of the year.”
Revenues for the quarter were $823.4 million versus $1,006.7 million a year ago primarily due to lower retail selling prices associated with significantly lower commodity prices and lower volumes sold. Operating income increased $14.8 million to $168.1 million for the quarter principally reflecting higher retail unit margins partially offset by lower volumes sold. Operating and administrative expenses were virtually unchanged from the prior year quarter.
Estimated fiscal 2009 EBITDA excluding the $39.9 million gain on the sale of the California terminal is a non-GAAP financial measure. Management believes the presentation of this measure for fiscal 2009 provides useful information to investors to more effectively evaluate the year-over-year results of operations of the Partnership in fiscal 2009. This measure is not comparable to measures used by other entities and should only be considered in conjunction with net income per limited partner unit.
-MORE-

 

 

 

     
AmeriGas Partners Reports Increase in Earnings, Reiterates Guidance
   
AmeriGas Partners is the nation’s largest retail propane marketer, serving nearly 1.3 million customers from nearly 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 hold a live Internet Audio Webcast of its conference call to discuss second quarter earnings and other current activities at 4:00 PM ET on Thursday, April 30, 2009. Interested parties may listen to the audio webcast both live and in replay on the Internet at http://investor.shareholder.com/ugi/apu/events.cfm or at the company website; http://www.amerigas.com and click on Investor Relations. A telephonic replay will be available from 7:00 PM ET on April 30 through midnight Saturday, May 2. The replay may be accessed at 1-888-203-1112, passcode 8374903 and International access 1-719-457-0820, passcode 8374903.
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, price volatility and availability of propane, increased customer conservation measures, 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-05   ###   4/30/09

 

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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,  
    2009     2008     2009     2008     2009     2008  
Revenues:
                                                
Propane
   $ 780,123     $ 960,307     $ 1,458,751     $ 1,659,976     $ 2,423,447     $ 2,421,359  
Other
     43,254       46,349       91,690       94,848       187,359       184,441  
 
                                    
 
     823,377       1,006,656       1,550,441       1,754,824       2,610,806       2,605,800  
 
                                    
 
                                                
Costs and expenses:
                                                
Cost of sales — propane
     460,189       661,279       888,658       1,149,144       1,576,431       1,658,205  
Cost of sales — other
     13,737       14,717       30,806       33,199       69,003       72,324  
Operating and administrative expenses
     165,118       164,656       325,103       317,540       618,028       585,912  
Depreciation
     19,581       18,839       39,001       37,496       77,184       73,825  
Amortization
     1,313       1,183       2,636       2,350       5,009       4,494  
Gain on sales of liquefied petroleum gas storage facilities
     —       —       (39,887 )     —       (39,887 )     (46,117 )
Other income, net
     (4,676 )     (7,305 )     (8,757 )     (12,150 )     (15,462 )     (21,298 )
 
                                    
 
     655,262       853,369       1,237,560       1,527,579       2,290,306       2,327,345  
 
                                    
Operating income
     168,115       153,287       312,881       227,245       320,500       278,455  
Interest expense
     (17,795 )     (18,697 )     (36,520 )     (36,927 )     (72,479 )     (72,625 )
 
                                    
Income before income taxes and minority interest
     150,320       134,590       276,361       190,318       248,021       205,830  
Income tax expense
     (774 )     (84 )     (1,411 )     (777 )     (2,306 )     (573 )
Minority interests
     (1,711 )     (1,556 )     (3,152 )     (2,286 )     (3,153 )     (2,744 )
 
                                    
Net income
   $ 147,835     $ 132,950     $ 271,798     $ 187,255     $ 242,562     $ 202,513  
 
                                    
 
                                                
General partner’s interest in net income
   $ 1,783     $ 1,373     $ 3,329     $ 1,960     $ 3,647     $ 5,804  
 
                                    
 
                                                
Limited partners’ interest in net income
   $ 146,052     $ 131,577     $ 268,469     $ 185,295     $ 238,915     $ 196,709  
 
                                    
 
                                                
Income per limited partner unit (a)
                                                
Basic
   $ 1.71     $ 1.58     $ 3.21     $ 2.47     $ 3.76     $ 3.31  
 
                                    
 
Diluted
   $ 1.71     $ 1.58     $ 3.21     $ 2.46     $ 3.76     $ 3.31  
 
                                    
 
                                                
Average limited partner units outstanding:
                                                
Basic
     57,046       57,005       57,030       56,999       57,020       56,920  
 
                                    
 
Diluted
     57,081       57,037       57,071       57,036       57,061       56,957  
 
                                    
 
                                                
SUPPLEMENTAL INFORMATION:
                                                
 
                                                
Retail gallons sold (millions)
     342.9       368.5       621.1       647.6       966.7       1,001.3  
EBITDA (b)
   $ 187,298     $ 171,753     $ 351,366     $ 264,805     $ 399,540     $ 354,030  
Expenditures for property, plant and equipment:
                                                
Maintenance capital expenditures
   $ 8,642     $ 5,585     $ 17,288     $ 12,897     $ 33,455     $ 26,939  
Growth capital expenditures
   $ 10,113     $ 7,508     $ 20,606     $ 18,379     $ 35,919     $ 39,410  
     
(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, 2009 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 $0.85, $1.49 and $0.43, respectively. 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.
(continued)

 

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AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
(continued)
     
 
(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 (“GAAP”). Management believes EBITDA is a meaningful non-GAAP financial measure used by investors to (1) compare the Partnership’s operating performance with other companies within the propane industry and (2) assess its 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.
 
    Management also uses EBITDA to assess the Partnership’s profitability because its parent, UGI Corporation, uses the Partnership’s 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.
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,  
    2009     2008     2009     2008     2009     2008  
 
                                                
Net income
   $ 147,835     $ 132,950     $ 271,798     $ 187,255     $ 242,562     $ 202,513  
Income tax expense
     774       84       1,411       777       2,306       573  
Interest expense
     17,795       18,697       36,520       36,927       72,479       72,625  
Depreciation
     19,581       18,839       39,001       37,496       77,184       73,825  
Amortization
     1,313       1,183       2,636       2,350       5,009       4,494  
 
                                    
EBITDA
   $ 187,298     $ 171,753     $ 351,366     $ 264,805     $ 399,540     $ 354,030  
 
                                    
The following table includes a reconciliation of forecasted net income to forecasted EBITDA excluding gain on sale of terminal for the fiscal year ending September 30, 2009:
         
    Forecast  
    Fiscal  
    Year  
    Ending  
    September 30,  
    2009  
Net income (estimate)
   $ 225,000  
Interest expense (estimate)
     70,000  
Income tax expense (estimate)
     2,000  
Depreciation (estimate)
     78,000  
Amortization (estimate)
     5,000  
San Pedro gain
     (40,000 )
 
      
EBITDA excluding gain on sale of terminal (estimate)
   $ 340,000  
 
      

 

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