Exhibit 99.1
Inergy, L.P.
Reconciliation of Forecast Net Income to Adjusted EBITDA
Fiscal Year Ended September 30, 2010
(in millions)
| | | | | | |
| | | Low | | High |
Net income(a) | | $ | 89 | | $ | 92 |
Interest expense(a) (b) | | | 83 | | | 89 |
Depreciation and amortization(a)(c) | | | 140 | | | 150 |
Income taxes(a) | | | 1 | | | 1 |
| | | | | | |
Adjusted EBITDA(a) | | $ | 313 | | $ | 332 |
| | | | | | |
| | |
Maintenance capital expenditures | | $ | 7 | | $ | 8 |
| | |
Net Income Allocable to Limited Partners(d) | | $ | 31 | | $ | 34 |
| | |
Limited Partner Units Outstanding | | | 60 | | | 60 |
| (a) | Earnings guidance is based upon various forward-looking assumptions made by the management of Inergy. While Inergy believes that these assumptions are reasonable, it can give no assurance that such results will materialize. Estimates exclude any one-time or non-recurring charges that may occur. Adjusted EBITDA is defined as income (loss) before taxes, plus net interest expense and depreciation and amortization and excludes (i) non-cash gains or losses on derivatives associated with fixed price sales to retail propane customers, (ii) long-term incentive and equity compensation charges, and (iii) gains or losses on disposals of assets as disclosed in Inergy, L.P.’s SEC filings. |
| (b) | Estimate includes approximately $4 million of non-cash interest expense and is based upon our outstanding indebtedness including the indebtedness from all acquisitions to date. |
| (c) | Depreciation and amortization are based upon certain preliminary purchase price allocations and may be subject to change. |
| (d) | Based upon current limited partnership units outstanding, general partner ownership, and current distribution of $0.675 per quarter. |
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