Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - AMERIGAS PARTNERS LP | ex991jun16.htm |
| 8-K - 8-K - AMERIGAS PARTNERS LP | apujun2016er.htm |
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Fiscal 2016
Third Quarter Results
Jerry Sheridan
President & CEO, AmeriGas
2
This presentation contains certain forward-looking statements that 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 AmeriGas’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 impact of pending and
future legal proceedings, political, regulatory and economic conditions in the United
States and in foreign countries, the timing and success of our acquisitions,
commercial initiatives and investments to grow our business, and our ability to
successfully integrate acquired businesses and achieve anticipated synergies.
AmeriGas undertakes no obligation to release revisions to its forward-looking
statements to reflect events or circumstances occurring after today. In addition, this
presentation uses certain non-GAAP financial measures. Please see the appendix
for reconciliations of these measures to the most comparable GAAP financial
measure.
About This Presentation
3
Third Quarter Recap
Jerry Sheridan
President & CEO, AmeriGas
4
Third Quarter Recap
Solid margin management,
expense control and colder
weather contributed to strong
results
Weather was 7.5% warmer
than normal and 5.5% colder
than the prior year
Increased unit margins $0.04
despite 26% increase in
propane costs over prior year
1 See appendix for reconciliation of Adjusted EBITDA.
$65
$49
$0
$20
$40
$60
$80
$100
Q3-16 Q3-15
Adjusted EBITDA1 $mm
5
Growth Initiatives
Cylinder Exchange
• 3% increase in cylinders sold, driven by a 14% increase in the
month of June
Acquisitions
• Completed two acquisitions in June and one in July
• Have closed six acquisitions year-to-date
National Accounts:
• Volume increased 6% as it benefited from the cooler weather
and account growth
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Refinancing and Guidance
• Completed $1.35 billion refinancing
o $675 million matures 2024
o $675 million matures 2026
• Extends our weighted average maturities from 3.8 years to 9
years
• Reduces cash interest by $5 million per year
• Continue to focus on solid distribution coverage to support
annual distribution increases
Adjusted EBITDA guidance range
remains $575 - $600 million1
1 Due to the forward looking nature of Adjusted EBITDA, we are unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure. Management
is unable to project certain reconciling items, in particular mark-to-market gains (losses), for future periods due to market volatility.
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Appendix
8
AmeriGas Non-GAAP Financial Measures
Management believes earnings before interest, income taxes, depreciation and amortization (“EBITDA”), as adjusted for the effects of
gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that
competitors do not necessarily have ("Adjusted 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 Adjusted EBITDA may be different from those used by
other companies. Management uses Adjusted 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, the effects of gains and losses on commodity derivative instruments
not associated with current-period transactions or historical cost basis. In view of the omission of interest, income taxes, depreciation
and amortization, gains and losses on commodity derivative instruments not associated with current-period transactions and other
gains and losses that competitors do not necessarily have from Adjusted 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 Adjusted
EBITDA to assess the Partnership’s profitability because its parent, UGI Corporation, uses the Partnership’s EBITDA, as adjusted to
exclude gains and losses on commodity derivative instruments not associated with current-period transactions, to assess the
profitability of the Partnership which is one of UGI Corporation’s industry segments. UGI Corporation discloses the Partnership’s
EBITDA, as so adjusted, in its disclosure about industry segments as the profitability measure for its domestic propane segment.
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AmeriGas Adjusted EBITDA
EBITDA and Adjusted EBITDA: 2016 2015
Net (loss) income attributable to AmeriGas Partners (33.1)$ (25.6)$
Income tax expense (a) 1.0 0.7
Interest expense 40.8 40.3
Depreciation 35.7 37.4
Amortization 10.7 10.7
EBITDA 55.1 63.5
Subtract net (gains) add net losses on commodity
derivative instruments not associated with current-
period transactions (27.8) (14.8)
Noncontrolling interest in net gains (losses) on
commodity derivative instruments not associated with
current-period transactions (a) 0.2 0.2
Loss on extinguishments of debt 37.1 -
Adjusted EBITDA 64.6$ 48.9$
(a) Includes the impact of rounding.
Three Months Ended
June 30,
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Investor Relations:
Will Ruthrauff
610-456-6571
ruthrauffw@ugicorp.com