Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - AMERIGAS PARTNERS LP | ex991mar18.htm |
| 8-K - 8-K - AMERIGAS PARTNERS LP | apumar2018er.htm |
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Fiscal Second Quarter Results
May 3, 2018
Jerry E. Sheridan
President & CEO, AmeriGas Partners
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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 2018 Second Quarter Results
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A
me
riGa
s AmeriGas Second Quarter Recap
Jerry E. Sheridan
President & CEO, AmeriGas
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• Volume up 10% on weather that was 14% colder than
prior-year period
• Weather was normal, but uneven for the quarter
• Unit margins up slightly despite average costs at Mt.
Belvieu that were 18% higher than prior year
• Propane costs stable throughout the quarter
• Operating expenses up 5% due to higher total
compensation costs and vehicle expenses
Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation.
AmeriGas Q2 2018 Earnings Recap
$551.2$271.2
$309.5
Q2 2017 Q2 2018
Adjusted EBITDA
($ in millions)$185.1
Original FY18 Guidance
(November 9, 2017)
Updated FY18 Guidance
(May 3, 2018)
$650 - $690 million
Adjusted EBITDA
$625 - $645 million
Adjusted EBITDA
• Excludes the impact of non-cash charge related to impairment of
tradenames that will be recorded in Q3
AmeriGas Partners | Fiscal 2018 Second Quarter Results
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Growth Initiatives
Cylinder Exchange
• Volume was up 15% vs. Q2 2017
• 6% increase in same store sales
National Accounts
• Volume was up 18% vs. Q2 2017 due to
weather and new customers
Acquisitions
• Closed an acquisition in April; expected
to add 3 million gallons annually
• Pipeline remains strong
AmeriGas Partners | Fiscal 2018 Second Quarter Results
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Trade Names and Distribution Update
Heritage Tradenames
• Recently completed a review of the operational
tradenames acquired with the Heritage
acquisition in 2012
• Analysis concluded that the tradenames will have
a finite life of 3-5 years and be amortized over
that time
• Will record a non-cash charge of approximately
$70 million in Q3 to adjust the fair value
• Impact of charge will be excluded from adjusted
EBITDA
Distribution and Leverage Update
• On April 23, Board of Directors approved a $0.95
distribution; unchanged from prior quarter
• Holding the distribution flat will contribute to building
distribution coverage following two record warm years
in 2016 and 2017
• Expect to finish FY18 with improved leverage of ~4.3x
and distribution coverage of greater than 1.0x
AmeriGas Partners | Fiscal 2018 Second Quarter Results
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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 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 2018 Second Quarter Results
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AmeriGas EBITDA and Adjusted EBITDA
(Mil l ions of dol lars)
EBITDA and Adjusted EBITDA
Net income attributable to AmeriGas Partners $ 191.8 $ 135.1
Income tax expense (a)
Interest expense
Depreciation
Amortization
EBITDA 278.6 220.7
Add net losses on commodity derivative instruments not associated
with current-period transactions
Loss on extinguishments of debt - 22.1
Noncontrolling interest in net losses on commodity derivative
instruments not associated with current-period transactions (a)
Adjusted EBITDA $ 309.5 $ 271.2
(a) Includes the impact of rounding.
Quarter Ended March 31,
9.6 10.6
31.2 28.6
2018 2017
0.6 0.6
(0.3) (0.2)
41.0 40.0
35.6 34.4
AmeriGas Partners | Fiscal 2018 Second Quarter Results
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Investor Relations:
Will Ruthrauff
610-456-6571
ruthrauffw@ugicorp.com
Brendan Heck
610-456-6608
heckb@ugicorp.com