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Exhibit 99.1

 

Contact:    610-337-7000    For Immediate Release:
  

Hugh J. Gallagher, ext. 1029

Simon Bowman, ext. 3645

Shelly Oates, ext. 3202

   May 15, 2013

AmeriGas Partners Revises Second Quarter Earnings

VALLEY FORGE, Pa., May 15 - AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE: APU), reported net income attributable to AmeriGas Partners for the second quarter of Fiscal 2013 ended March 31, 2013 of $213.2 million compared to $133.9 million for the same period last year. Net income attributable to AmeriGas Partners, L.P. for the current-year period was revised to reflect the impact of an $8.7 million adjustment to correct the Partnership’s method of accounting for certain customer credits. Net income attributable to AmeriGas Partners, L.P. for the current-year period also includes the impact of $5.4 million in acquisition and transition expenses associated with Heritage Propane. Net income attributable to AmeriGas Partners, L.P. for the prior-year quarter includes the impact of a $13.4 million loss on extinguishment of debt and $8.1 million in acquisition and transition expenses. The Partnership’s adjusted earnings before interest expense, income taxes, depreciation and amortization (Adjusted EBITDA) increased to $309.0 million for the second quarter of fiscal 2013 compared to $246.0 million for the same period last year. The improved results for the current-year period reflect winter weather that was markedly colder than the record warmth experienced during the prior-year period and, to a much lesser extent, the full-period effects of Heritage Propane, which was acquired January 12, 2012.

Jerry E. Sheridan, chief executive officer of AmeriGas, said, “Given our results thus far and our current assessment of business conditions for the remainder of the fiscal year, we continue to anticipate Adjusted EBITDA for fiscal 2013 to be near the midpoint of our previously-stated guidance of $620 million to $645 million.”

Adjusted EBITDA is a non-GAAP financial measure defined herein as earnings before interest expense, income taxes, depreciation and amortization, losses on extinguishment of debt and Heritage Propane acquisition and transition expenses. Management believes the presentation of this measure provides useful information to investors to more effectively evaluate the year-over-year results of operations of the Partnership. This measure is not comparable to measures used by other entities and should only be considered in conjunction with net income attributable to AmeriGas Partners, L.P. A reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure is included on the last page of this press release.

About AmeriGas

AmeriGas is the nation’s largest retail propane marketer, serving over two million customers in all 50 states from over 2,100 distribution locations. UGI Corporation, through subsidiaries, is the sole General Partner and owns 26% of the Partnership. An affiliate of Energy Transfer Partners, L.P. owns 32% of the Partnership and the public owns the remaining 42%.

Comprehensive information about AmeriGas is available on the Internet at http://www.amerigas.com.

-MORE-


AmeriGas Partners Revises Second Quarter Earnings    Page 2

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, the capacity to transport propane to our market areas, the impact of pending and future legal proceedings, political, economic and regulatory conditions in the U.S. and abroad, and our ability to successfully integrate Heritage Propane and achieve anticipated synergies. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.

 

AP-07    ###    5/15/13


AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES

REPORT OF EARNINGS (REVISED) (a)

(Thousands, except per unit and where otherwise indicated)

(Unaudited)

 

     Three Months Ended
March 31,
    Six Months Ended
March 31,
    Twelve Months Ended
March 31,
 
     2013     2012     2013     2012     2013     2012  

Revenues:

            

Propane

   $ 1,098,382      $ 1,082,764      $ 1,895,441      $ 1,720,047      $ 2,853,025      $ 2,567,079   

Other

     77,825        72,810        157,413        119,339        282,059        203,270   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     1,176,207        1,155,574        2,052,854        1,839,386        3,135,084        2,770,349   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

            

Cost of sales - propane

     594,128        652,393        1,023,691        1,082,373        1,583,976        1,656,125   

Cost of sales - other

     18,282        17,618        40,803        31,446        86,428        62,882   

Operating and administrative expenses

     265,298        252,275        508,815        412,185        985,323        705,861   

Depreciation

     37,607        35,351        75,930        56,282        153,873        98,841   

Amortization

     11,022        9,441        22,050        12,698        44,250        18,978   

Other income, net

     (7,635     (6,551     (15,806     (10,741     (31,586     (24,229
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     918,702        960,527        1,655,483        1,584,243        2,822,264        2,518,458   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     257,505        195,047        397,371        255,143        312,820        251,891   

(Loss) gain on extinguishments of debt

     0        (13,379     0        (13,379     30        (32,695

Interest expense

     (41,776     (45,045     (82,972     (61,578     (164,035     (93,374
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     215,729        136,623        314,399        180,186        148,815        125,822   

Income tax benefit (expense)

     52        (764     (575     (1,214     (1,292     (1,256
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     215,781        135,859        313,824        178,972        147,523        124,566   

Less: net income attributable to noncontrolling interests

     (2,573     (1,974     (3,951     (2,562     (3,035     (2,503
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to AmeriGas Partners, L.P.

   $ 213,208      $ 133,885      $ 309,873      $ 176,410      $ 144,488      $ 122,063   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

General partner’s interest in net income attributable to AmeriGas Partners, L.P.

   $ 6,384      $ 4,282      $ 11,603      $ 6,273      $ 18,449      $ 8,862   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Limited partners’ interest in net income attributable to AmeriGas Partners, L.P.

   $ 206,824      $ 129,603      $ 298,270      $ 170,137      $ 126,039      $ 113,201   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income per limited partner unit (b)

            

Basic

   $ 1.56      $ 1.26      $ 2.49      $ 2.13      $ 1.35      $ 1.67   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 1.56      $ 1.26      $ 2.49      $ 2.13      $ 1.35      $ 1.67   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average limited partner units outstanding:

            

Basic

     92,830        83,153        92,827        70,073        92,813        63,602   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     92,895        83,195        92,901        70,124        92,882        63,653   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL INFORMATION:

            

Retail gallons sold (millions)

     464.4        389.4        815.1        610.3        1,222.3        911.8   

EBITDA (c)

   $ 303,561      $ 224,486      $ 491,400      $ 308,182      $ 507,938      $ 334,512   

Adjusted EBITDA (c)

   $ 308,957      $ 246,003      $ 502,284      $ 333,416      $ 553,124      $ 379,062   

Expenditures for property, plant and equipment:

            

Maintenance capital expenditures

   $ 11,293      $ 11,514      $ 21,347      $ 23,304      $ 43,108      $ 41,757   

Transition capital related to Heritage integration

   $ 6,440      $ 1,343      $ 10,981      $ 1,343      $ 27,246      $ 1,343   

Growth capital expenditures

   $ 10,215      $ 10,640      $ 22,109      $ 20,453      $ 42,123      $ 38,614   

 

(a) This report of earnings has been revised to reflect impact of the Partnership’s correction of its method of accounting for certain customer credits.
(b) Income per limited partner unit is computed in accordance with accounting guidance regarding the application of the two-class method for determining earnings per share as it relates to master limited partnerships. Refer to Note 2 to the consolidated financial statements included in the AmeriGas Partners, L.P. Annual Report on Form 10-K for the fiscal year ended September 30, 2012.
(c) Earnings before interest expense, income taxes, depreciation and amortization (“EBITDA”) should not be considered as an alternative to net income attributable to AmeriGas Partners, L.P. (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 that of other companies within the propane industry and (2) assess the Partnership’s ability to meet loan covenants. The Partnership’s definition of EBITDA may be different from those used by other companies.

 

(continued)

 

1


AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES

REPORT OF EARNINGS (REVISED) (a)

(Thousands, except per unit and where otherwise indicated)

(Unaudited)

 

(continued)

 

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 attributable to AmeriGas Partners, L.P. 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 which is one of UGI Corporation’s reportable segments. UGI Corporation discloses the Partnership’s EBITDA in its disclosure about reportable segments as the profitability measure for its domestic propane segment. EBITDA in the three, six and twelve months ended March 31, 2013 includes acquisition and transition expense of $5,396, $10,884 and $45,216, respectively, associated with the Heritage Propane acquisition. EBITDA in the three, six and twelve months ended March 31, 2012 includes acquisition and transition expense of $8,138, $11,855 and $11,855, respectively, associated with the Heritage Propane acquisition. EBITDA in the three, six and twelve months ended March 31, 2012 includes pre-tax losses of $13,379, $13,379 and $32,695, respectively, from extinguishments of debt.

The following table includes reconciliations of net income attributable to AmeriGas Partners, L.P. to EBITDA and Adjusted EBITDA (1) for all periods presented:

 

     Three Months Ended      Six Months Ended      Twelve Months Ended  
     March 31,      March 31,      March 31,  
     2013     2012      2013      2012      2013     2012  

Net income attributable to AmeriGas Partners, L.P.

   $ 213,208      $ 133,885       $ 309,873       $ 176,410       $ 144,488      $ 122,063   

Income tax (benefit) expense

     (52     764         575         1,214         1,292        1,256   

Interest expense

     41,776        45,045         82,972         61,578         164,035        93,374   

Depreciation

     37,607        35,351         75,930         56,282         153,873        98,841   

Amortization

     11,022        9,441         22,050         12,698         44,250        18,978   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

EBITDA

   $ 303,561      $ 224,486       $ 491,400       $ 308,182       $ 507,938      $ 334,512   

Heritage Propane acquisition and transition expense

     5,396        8,138         10,884         11,855         45,216        11,855   

Loss (gain) on extinguishments of debt

     —          13,379         —           13,379         (30     32,695   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted EBITDA (1)

   $ 308,957      $ 246,003       $ 502,284       $ 333,416       $ 553,124      $ 379,062   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

The following table includes a reconciliation of forecasted net income attributable to AmeriGas Partners, L.P. to forecasted EBITDA and Adjusted EBITDA for the fiscal year ending September 30, 2013:

 

     Forecast
Fiscal

Year
Ending
September 30,
2013
 

Net income attributable to AmeriGas Partners, L.P. (estimate)

   $ 239,000   

Interest expense (estimate)

     166,000   

Income tax expense (estimate)

     2,500   

Depreciation (estimate)

     156,000   

Amortization (estimate)

     44,000   
  

 

 

 

EBITDA

   $ 607,500   

Transition expenses (estimate)

     25,000   
  

 

 

 

Adjusted EBITDA (1)

   $ 632,500   
  

 

 

 

 

(1) Adjusted EBITDA is a non-GAAP financial measure. Management believes the presentation of this measure provides useful information to investors to more effectively evaluate the year-over-year results of operations of the Partnership. Management uses Adjusted EBITDA to exclude from AmeriGas Partners’ EBITDA gains and losses that competitors do not necessarily have to provide additional insight into the comparison of year-over-year profitability to that of other master limited partnerships. This measure is not comparable to measures used by other entities and should only be considered in conjunction with net income attributable to AmeriGas Partners, L.P. for the relevant periods.

 

2