Exhibit 99.1
UGI ENERGY SERVICES, LLC
AND SUBSIDIARIES
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the three and nine months ended June 30, 2019 and 2018
(Unaudited)
UGI ENERGY SERVICES, LLC AND SUBSIDIARIES
TABLE OF CONTENTS
Pages | ||
Financial Statements (unaudited): | ||
Condensed Consolidated Balance Sheets as of June 30, 2019 and 2018 | 3 | |
Condensed Consolidated Statements of Income and Comprehensive Income for the three and nine months ended June 30, 2019 and 2018 | 4 | |
Condensed Consolidated Statements of Cash Flows for the three and nine months ended June 30, 2019 and 2018 | 5 |
UGI ENERGY SERVICES, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited)
(Thousands of dollars)
June 30, 2019 | June 30, 2018 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 24,159 | $ | 68,200 | ||||||
Restricted cash | 22,502 | 6,160 | ||||||||
Accounts receivable (less allowances for doubtful accounts of $1,218 and $1,172, respectively) | 110,148 | 99,655 | ||||||||
Inventories | 19,887 | 20,065 | ||||||||
Derivative instruments | 10,579 | 6,980 | ||||||||
Prepaid expenses and other current assets | 4,786 | 4,327 | ||||||||
Total current assets | 192,061 | 205,387 | ||||||||
Property, plant and equipment: | ||||||||||
Gross property, plant and equipment | 1,322,257 | 1,168,636 | ||||||||
Accumulated depreciation | (241,095 | ) | (198,313 | ) | ||||||
Net property, plant and equipment | 1,081,162 | 970,323 | ||||||||
Goodwill | 11,919 | 5,583 | ||||||||
Intangible assets, net | 20,039 | 13,411 | ||||||||
Derivative instruments | 3,558 | 540 | ||||||||
Investment in equity method investee | 84,908 | 73,167 | ||||||||
Other assets | 24,864 | 24,869 | ||||||||
Total assets | $ | 1,418,511 | $ | 1,293,280 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Current liabilities: | ||||||||||
Current capital lease obligations | $ | 133 | $ | 127 | ||||||
Short-term borrowings | 55,000 | — | ||||||||
Accounts payable | 105,120 | 70,555 | ||||||||
Employee compensation and benefits accrued | 7,720 | 9,127 | ||||||||
Derivative instruments | 21,605 | 4,742 | ||||||||
Other current liabilities | 50,277 | 57,861 | ||||||||
Total current liabilities | 239,855 | 142,412 | ||||||||
Long-term capital lease obligations | 235 | 368 | ||||||||
Deferred income taxes | 143,813 | 118,441 | ||||||||
Derivative instruments | 9,105 | 8,039 | ||||||||
Other noncurrent liabilities | 9,134 | 9,004 | ||||||||
Total liabilities | 402,142 | 278,264 | ||||||||
Member’s equity | 1,016,369 | 1,015,016 | ||||||||
Total liabilities and equity | $ | 1,418,511 | $ | 1,293,280 | ||||||
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UGI ENERGY SERVICES, LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(unaudited)
(Thousands of dollars)
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues | $ | 258,788 | $ | 249,637 | $ | 1,239,702 | $ | 1,122,745 | ||||||||
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Costs and expenses: | ||||||||||||||||
Cost of sales | 247,566 | 200,774 | 1,049,568 | 853,194 | ||||||||||||
Operating and administrative expenses | 21,691 | 25,171 | 70,404 | 68,245 | ||||||||||||
Depreciation and amortization | 11,593 | 10,826 | 34,157 | 31,317 | ||||||||||||
Other operating income, net | (266) | (529) | (1,209) | (508) | ||||||||||||
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280,584 | 236,242 | 1,152,920 | 952,248 | |||||||||||||
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Operating (loss) income | (21,796) | 13,395 | 86,782 | 170,497 | ||||||||||||
Income from equity method investee | 1,512 | 1,356 | 4,593 | 3,375 | ||||||||||||
Othernon-operating income (expense), net | 16 | (54) | 85 | (1,151) | ||||||||||||
Interest expense | (625) | (413) | (1,566) | (2,048) | ||||||||||||
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(Loss) income before income taxes | (20,893) | 14,284 | 89,894 | 170,673 | ||||||||||||
Income tax benefit (expense) | 5,739 | (4,317) | (24,334) | 24,577 | ||||||||||||
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Net (loss) income and comprehensive (loss) income | $ | (15,154) | $ | 9,967 | $ | 65,560 | $ | 195,250 | ||||||||
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UGI ENERGY SERVICES, LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(Thousands of dollars)
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net (loss) income | $ | (15,154 | ) | $ | 9,967 | $ | 65,560 | $ | 195,250 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 11,593 | 10,826 | 34,157 | 31,317 | ||||||||||||
Deferred income taxes, net | (6,904 | ) | 2,421 | (2,706 | ) | (76,685 | ) | |||||||||
Changes in unrealized gains and losses on derivative instruments | 24,462 | (6,151 | ) | 11,066 | (764 | ) | ||||||||||
Other, net | (3,048 | ) | 4,165 | (5,183 | ) | (207 | ) | |||||||||
Net change in: | ||||||||||||||||
Accounts receivable | 96,862 | 50,414 | 1,820 | (19,374 | ) | |||||||||||
Inventories | (5,810 | ) | (5,111 | ) | 4,953 | 2,478 | ||||||||||
Accounts payable | (80,257 | ) | (31,589 | ) | (3,875 | ) | 15,161 | |||||||||
Other current assets | (92 | ) | (578 | ) | (660 | ) | (1,944 | ) | ||||||||
Other current liabilities | (32 | ) | (2,453 | ) | 19,430 | 48,843 | ||||||||||
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Net cash provided by operating activities | 21,620 | 31,911 | 124,562 | 194,075 | ||||||||||||
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CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Expenditures for property, plant and equipment | (32,666 | ) | (7,986 | ) | (89,074 | ) | (25,695 | ) | ||||||||
Acquisitions of businesses and assets | — | (7,000 | ) | (35,000 | ) | (62,000 | ) | |||||||||
Increase in equity method investments | (2,414 | ) | (5,632 | ) | (4,619 | ) | (19,305 | ) | ||||||||
Other | 45 | 12 | 103 | 112 | ||||||||||||
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Net cash used by investing activities | (35,035 | ) | (20,606 | ) | (128,590 | ) | (106,888 | ) | ||||||||
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CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Decrease in bank loans | (2,000 | ) | — | (2,000 | ) | — | ||||||||||
Receivables Facility net borrowings (repayments) | 57,000 | (10,000 | ) | 55,000 | (39,000 | ) | ||||||||||
Dividends paid | (50,000 | ) | — | (50,000 | ) | (2,000 | ) | |||||||||
Other | (33 | ) | (33 | ) | (100 | ) | (96 | ) | ||||||||
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Net cash provided (used) by financing activities | 4,967 | (10,033 | ) | 2,900 | (41,096 | ) | ||||||||||
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Cash, cash equivalents and restricted cash (decrease) increase | $ | (8,448 | ) | $ | 1,272 | $ | (1,128 | ) | $ | 46,091 | ||||||
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 46,661 | $ | 74,360 | $ | 46,661 | $ | 74,360 | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | 55,109 | 73,088 | 47,789 | 28,269 | ||||||||||||
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Cash, cash equivalents and restricted cash (decrease) increase | $ | (8,448 | ) | $ | 1,272 | $ | (1,128 | ) | $ | 46,091 | ||||||
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