Attached files
| file | filename |
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| EX-99.1 - EXHIBIT 99.1 - AMERIGAS PARTNERS LP | ex991mar17.htm |
| 8-K - 8-K - AMERIGAS PARTNERS LP | apumar2017er.htm |
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Fiscal 2017
Second Quarter Results
Jerry Sheridan
President & CEO
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About This Presentation
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, liability for
uninsured claims and for claims in excess of insurance coverage, political, regulatory and economic
conditions in the United States and in foreign countries, the availability, timing and success of our
acquisitions, commercial initiatives and investments to grow our business, our ability to successfully
integrate acquired businesses and achieve anticipated synergies, and the interruption, disruption, failure,
malfunction, or breach of our information technology systems, including due to cyber-attack. 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.
AmeriGas Partners | Fiscal 2017 Second Quarter Results
A
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Second Quarter Recap
Jerry Sheridan
President & CEO, AmeriGas
4
• The quarter ended 13% warmer than normal
and 3% warmer than last year
• 2nd warmest Q2 on record
• Retail volume sold in the quarter was 363
million gallons, 6% below last year
• Unit margins up 2% despite increased
propane costs
• Operating expenses essentially flat despite
23% increase in diesel fuel prices
• Revising fiscal year guidance EBITDA guidance
range to $550 million to $580 million
Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation.
Q2 Earnings Recap
$295.4
$271.2
FY16 - Q2 FY17 - Q2
Adjusted EBITDA1
AmeriGas Partners | Fiscal 2017 Second Quarter Results
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Growth Initiatives
Cylinder Exchange
• Modest increase in volume despite the
warmer weather
• Over 1,250 new locations year-to-date
National Accounts
• Volume up 5% primarily due to new
accounts
Acquisitions
• Completed two small scale acquisitions and
anticipate closing on 3 additional deals in the
next few months
AmeriGas Partners | Fiscal 2017 Second Quarter Results
6 AmeriGas Partners | Fiscal 2017 Second Quarter Results
Refinancing
• Issued $525 million of 5.75% notes due May 2027
• Tendered for $378 million of 7.00% May 2022 notes
• Redeeming remaining $102.5 million of 7.00% May 2022 notes
• Completes refinancing of all long-term debt
• No significant debt maturities until 2024
• Average interest rates have been reduced by over 100 basis points
Distribution
• 1% increase distribution to $3.80 annually
• 13th consecutive year increasing distribution
Maintaining A Strong Balance Sheet
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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, 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 periods. Management also uses Adjusted EBITDA to
assess the Partnership's profitability because its parent, UGI Corporation, uses the Partnership's Adjusted EBITDA to
assess the profitability of the Partnership, which is one of UGI Corporation’s business segments. UGI Corporation
discloses the Partnership's Adjusted EBITDA as the profitability measure for its domestic propane segment.
AmeriGas Supplemental Footnotes
AmeriGas Partners | Fiscal 2017 Second Quarter Results
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AmeriGas EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA: FY16-Q2 FY17-Q2
Net income attributable to AmeriGas Partners, L.P. 245.9$ 135.1$
Income tax expense 0.3 0.6
Interest expense 40.8 40.0
Depreciation 36.5 34.4
Amortization 10.9 10.6
EBITDA 334.4 220.7
Add net losses (subtract net gains) on commodity derivative instruments not
associated with current-period transactions
(39.5) 28.6
Loss on extinguishment of debt - 22.1
Noncontrolling interest in net (losses) gains on commodity derivative instruments not
associated with current-period transactions (a)
0.5 (0.2)
Adjusted EBITDA 295.4$ 271.2$
Forecast Fiscal Year Ending
September 30, 2017
(Low End) (High End)
Adjusted EBITDA (estimate) $ 550,000 $ 580,000
Interest expense (estimate) 157,000 157,000
Income tax expense (estimate) 3,000 3,000
Depreciation (estimate) 139,000 139,000
Amortization (estimate) 43,000 43,000
Three Months Ended March 31,
AmeriGas Partners | Fiscal 2017 Second Quarter Results
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Investor Relations:
Will Ruthrauff
610-456-6571
ruthrauffw@ugicorp.com