Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - AMERIGAS PARTNERS LP | ex991sept16.htm |
| 8-K - 8-K - AMERIGAS PARTNERS LP | apusept2016er.htm |
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Fiscal Year 2016 Results
FY17 Outlook
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 and quarterly reports on Form 10-Q 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
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Fiscal Year Recap
Jerry Sheridan
President & CEO, AmeriGas
4
FY16 Adjusted EBITDA1
Retail volumes sold for FY16
decreased 10% to 1.07 billion
gallons from 1.18 billion
gallons in the prior year
2nd warmest year in 121 years
$619
$543
$0
$100
$200
$300
$400
$500
$600
$700
FY15 FY16
1 Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation.
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Growth Initiatives
National Accounts
Added 39 accounts and renewed 40 agreements
AmeriGas Cylinder Exchange
Added new business that represents sales of ~ 1 million cylinders
M&A
Closed six tuck-in acquisitions adding ~10 million gallons annually
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Continuing to Deliver Value
12th consecutive annual distribution increase
Outstanding total unitholder returns:
Annualized Total Returns
1 Year 5 Year 10 Year
19.8% 8.8% 12.2%
Looking ahead we expect adjusted EBITDA of
$660 – $700 million in FY171
1 Because we are unable to predict certain potentially material items affecting net income on a GAAP basis, principally mark-to-market gains and losses on commodity derivative
instruments, we cannot reconcile 2017 Adjusted EBITDA, a non-GAAP measure, to net income attribute to AmeriGas Partners, L.P., the most directly comparable GAAP measure,
in reliance on the “unreasonable efforts” exception set forth in SEC rules. Adjustments that management can reasonably estimate are provided in the appendix.
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Appendix
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The enclosed supplemental information contains a reconciliation of earnings before interest expense,
income taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to Net Income.
EBITDA and Adjusted EBITDA are not measures of performance or financial condition under accounting
principles generally accepted in the United States ("GAAP"). Management believes EBITDA and
Adjusted EBITDA are meaningful non-GAAP financial measures used by investors to compare the
Partnership's operating performance with that of other companies within the propane industry. The
Partnership's definitions of EBITDA and Adjusted EBITDA may be different from those used by other
companies.
EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss) attributable
to AmeriGas Partners, L.P. 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. 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. In view of the omission of interest, income taxes, depreciation and amortization from
EBITDA and 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 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
business segments. UGI Corporation discloses the Partnership's EBITDA in its disclosures about its
business segments as the profitability measure for its domestic propane segment.
AmeriGas Supplemental Footnotes
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AmeriGas Adjusted EBITDA
(Millions of dollars) Year Ended September 30,
EBITDA and Adjusted EBITDA: 2016 2015
Net income attributable to AmeriGas Partners 207.0$ 211.2$
Income tax (benefit) expense (a) (1.6) 2.9
Interest expense 164.1 162.8
Depreciation 146.8 152.2
Amortization 43.2 42.7
EBITDA 559.5 571.8
(Subtract net gains) add net losses on commodity derivative
instruments not associated with current-period transactions
(66.1) 47.8
A d loss on extinguishments of debt 48.9 -
Noncontrolling interest in net gains (losses) on commodity
derivative instruments not associated with current-period
transactions
0.7 (0.4)
Adjusted EBITDA 543.0$ 619.3$
(a) Includes the impact of rounding.
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AmeriGas Adjusted EBITDA Guidance
(Low End) (High End)
Adjusted EBITDA (estimate) 660,000$ 700,000$
Interest expense (estimate) 160,000 159,000
Income tax expense (estimate) 3,000 3,000
Depreciation (estimate) 141,000 141,000
Amortization (estimate) 43,000 43,000
Forecast Fiscal Year
Ending September 30, 2017
(Thousands)
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Investor Relations:
Will Ruthrauff
610-456-6571
ruthrauffw@ugicorp.com