| | | | | |
| Contact: | | 610-337-1000 | | For Immediate Release: |
| | | Robert W. Krick, ext. 3141 | | November 16, 2005 |
| | | Brenda A. Blake, ext. 3202 | | |
AmeriGas Partners Reports Fiscal 2005 Results, Issues 2006 Guidance
VALLEY FORGE, Pa., November 16 — AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE: APU), reported results of $94.4 million, or $1.71 per limited partner unit, for the fiscal year ended September 30, 2005, excluding the previously reported $33.6 million loss on the early extinguishment of debt, compared to net income of $91.9 million, or $1.71 per limited partner unit, for the previous fiscal year. Including the loss on the early extinguishment of debt of $33.6 million, or $0.61 per limited partner unit, net income was $60.8 million, or $1.10 per limited partner unit. Net income for the fiscal year also includes a $7.1 million after-tax gain on the sale of its 50% interest in a propane import terminal in Virginia, as previously reported. Excluding the loss on the early extinguishment of debt of $33.6 million, the Partnership’s earnings before interest expense, income taxes, depreciation and amortization (EBITDA) were $249.5 million for the fiscal 2005 period compared to $255.9 million for the fiscal year 2004. EBITDA including the loss on extinguishment of debt and the $9.1 million pre-tax gain on the sale of the import terminal was $215.9 million.
Eugene V. N. Bissell, chief executive officer of AmeriGas, said, “I am very proud of the performance of all of our employees, especially considering the challenges we faced during fiscal 2005 of warmer weather, price-induced conservation and higher energy-related operating expenses. Assuming a return to normal weather in fiscal 2006, we expect EBITDA in the range of $255 million to $265 million.”
For the twelve months ended September 30, 2005, retail propane volumes sold were 1.035 billion gallons, down slightly from 1.059 billion gallons sold in the prior year principally due to warmer weather and price-induced customer conservation partly offset by increased volumes from acquisitions and internal growth. Nationally, weather was 6.9% warmer than normal in 2005 compared to weather that was 4.9% warmer than normal in the prior-year period, according to the National Oceanic and Atmospheric Administration. Revenues increased to $1.96 billion in fiscal 2005 from $1.78 billion in fiscal 2004 reflecting higher average selling prices partially offset by lower retail volumes sold. Total margin decreased $3.4 million principally as a result of lower retail volumes sold. Operating and administrative expenses increased primarily as a result of higher vehicle fuel and lease expenses as well as increases in expenses for maintenance, uncollectible accounts and general insurance.
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AmeriGas Partners Reports Fiscal 2005 Results, Issues 2006 Guidance | | Page 2 |
For the fourth quarter of fiscal 2005, the Partnership recorded a seasonal net loss of $28.4 million, or $0.51 per limited partner unit, compared with a loss of $32.8 million, or $0.60 per limited partner unit, for the prior-year period. Retail volumes sold in the quarter were 177.4 million gallons, slightly higher than the 175.5 million gallons sold in the prior year quarter. EBITDA for the period declined to $7.9 million from $8.6 million in last year’s quarter. Revenue for the quarter totaled $359.3 million versus $312.9 million in the fiscal 2004 quarter principally due to higher selling prices reflecting significantly higher propane product costs.
AmeriGas Partners is the nation’s largest retail propane marketer, serving nearly 1.3 million customers from over 650 locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 44% of the Partnership and individual unitholders own the remaining 56%.
AmeriGas Partners, L. P. will host its fourth quarter FY 2005 earnings conference call on Wednesday, November 16, 2005, at 4:00 PM ET. Interested parties may listen to a live audio broadcast of the conference call at http://www.shareholder.com/ugi/medialist.cfm. A telephonic replay of the call can be accessed approximately one hour after the completion of the call at 1-888-203-1112, passcode 9217488 (International replay 719-457-0820, passcode 9217488) through November 18, 2005.
The financial tables appended to this news release can be viewed directly athttp://www.shareholder.com/ugi/APU/4Q05FinancialTable.pdf.
This press release contains certain forward-looking statements which 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 the Partnership’s Annual Report onForm 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions, price volatility and availability of propane, increased customer conservation measures, the capacity to transport propane to our market areas and political, economic and regulatory conditions in the U. S. and abroad. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.
Comprehensive information about AmeriGas is available on the Internet atwww.amerigas.com.
AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Revenues: | | | | | | | | | | | | | | | | |
| Propane | | $ | 322,539 | | | $ | 279,787 | | | $ | 1,819,659 | | | $ | 1,639,700 | |
| Other | | | 36,764 | | | | 33,098 | | | | 143,597 | | | | 136,200 | |
| | | | | | | | | | | | | |
| | | | 359,303 | | | | 312,885 | | | | 1,963,256 | | | | 1,775,900 | |
| | | | | | | | | | | | | |
| Costs and expenses: | | | | | | | | | | | | | | | | |
| Cost of sales — propane | | | 215,014 | | | | 171,788 | | | | 1,161,808 | | | | 972,302 | |
| Cost of sales — other | | | 15,115 | | | | 13,734 | | | | 58,198 | | | | 56,937 | |
| Operating and administrative expenses | | | 125,716 | | | | 119,790 | | | | 518,127 | | | | 501,073 | |
| Depreciation | | | 16,284 | | | | 19,905 | | | | 68,108 | | | | 75,468 | |
| Amortization | | | 1,372 | | | | 1,268 | | | | 5,517 | | | | 5,144 | |
| Other (income), net | | | (4,255 | ) | | | (795 | ) | | | (25,781 | ) | | | (11,744 | ) |
| | | | | | | | | | | | | |
| | | | 369,246 | | | | 325,690 | | | | 1,785,977 | | | | 1,599,180 | |
| | | | | | | | | | | | | |
| Operating (loss) income | | | (9,943 | ) | | | (12,805 | ) | | | 177,279 | | | | 176,720 | |
| Loss on extinguishment of debt | | | — | | | | — | | | | (33,602 | ) | | | — | |
| Interest expense | | | (18,942 | ) | | | (20,357 | ) | | | (79,900 | ) | | | (83,175 | ) |
| | | | | | | | | | | | | |
| (Loss) income before income taxes | | | (28,885 | ) | | | (33,162 | ) | | | 63,777 | | | | 93,545 | |
| Income tax benefit (expense) | | | 295 | | | | 122 | | | | (1,514 | ) | | | (269 | ) |
| Minority interests | | | 198 | | | | 227 | | | | (1,418 | ) | | | (1,422 | ) |
| | | | | | | | | | | | | |
| Net (loss) income (a) | | $ | (28,392 | ) | | $ | (32,813 | ) | | $ | 60,845 | | | $ | 91,854 | |
| | | | | | | | | | | | | |
| General partner’s interest in net (loss) income | | $ | (284 | ) | | $ | (328 | ) | | $ | 608 | | | $ | 919 | |
| | | | | | | | | | | | | |
| Limited partners’ interest in net (loss) income | | $ | (28,108 | ) | | $ | (32,485 | ) | | $ | 60,237 | | | $ | 90,935 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net (loss) income per limited partner unit — basic and diluted (a) | | $ | (0.51 | ) | | $ | (0.60 | ) | | $ | 1.10 | | | $ | 1.71 | |
| | | | | | | | | | | | | |
| Average limited partner units outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 54,943 | | | | 54,473 | | | | 54,602 | | | | 53,097 | |
| | | | | | | | | | | | | |
| Diluted | | | 54,943 | | | | 54,473 | | | | 54,655 | | | | 53,172 | |
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| SUPPLEMENTAL INFORMATION: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Retail gallons sold (millions) | | | 177.4 | | | | 175.5 | | | | 1,034.9 | | | | 1,059.1 | |
| EBITDA (b) (c) | | $ | 7,911 | | | $ | 8,595 | | | $ | 215,884 | | | $ | 255,910 | |
| Distributable cash (b) | | | (14,773 | ) | | | (19,741 | ) | | | 150,325 | | | | 149,630 | |
| Capital expenditures: | | | | | | | | | | | | | | | | |
| Maintenance capital expenditures | | | 3,742 | | | | 7,979 | | | | 19,261 | | | | 23,105 | |
| Growth capital expenditures | | | 8,737 | | | | 9,065 | | | | 43,356 | | | | 38,551 | |
| (a) | | Net income and net income per limited partner unit for the twelve months ended September 30, 2005 include a gain of $7,107 and $0.13, respectively, recognized in connection with the Partnership’s sale of its 50% ownership interest in Atlantic Energy, Inc. |
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| (b) | | EBITDA (earnings before interest expense, income taxes, depreciation and amortization) should not be considered as an alternative to net income (as an indicator of operating performance) or as an alternative to cash flow (as a measure of liquidity or ability to service debt obligations) and is not a measure of performance or financial condition under accounting principles generally accepted in the United States. Management believes EBITDA is a meaningful non-GAAP financial measure used by investors to compare the Partnership’s operating performance with other companies within the propane industry and to evaluate our ability to meet loan covenants. |
| |
| | | (continued) |
AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
| | | (continued) |
| |
| | | Management defines distributable cash as EBITDA less interest expense and maintenance capital expenditures and excluding losses on extinguishments of debt in connection with a refinancing. Maintenance capital expenditures are defined in the Partnership Agreement as expenditures made to maintain the operating capacity of the Partnership’s existing capital assets. Management believes distributable cash is a meaningful non-GAAP measure for evaluating the Partnership’s ability to declare and pay quarterly distributions. The Partnership’s definition of distributable cash may be different from that used by other entities. |
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| | | The following table includes reconciliations of net income to EBITDA and distributable cash for all periods presented: |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| | | | | | | | | | | | | | | | | |
| Net (loss) income | | $ | (28,392 | ) | | $ | (32,813 | ) | | $ | 60,845 | | | $ | 91,854 | |
| Income tax (benefit) expense | | | (295 | ) | | | (122 | ) | | | 1,514 | | | | 269 | |
| Interest expense | | | 18,942 | | | | 20,357 | | | | 79,900 | | | | 83,175 | |
| Depreciation | | | 16,284 | | | | 19,905 | | | | 68,108 | | | | 75,468 | |
| Amortization | | | 1,372 | | | | 1,268 | | | | 5,517 | | | | 5,144 | |
| | | | | | | | | | | | | |
| EBITDA | | | 7,911 | | | | 8,595 | | | | 215,884 | | | | 255,910 | |
| Interest expense | | | (18,942 | ) | | | (20,357 | ) | | | (79,900 | ) | | | (83,175 | ) |
| Maintenance capital expenditures | | | (3,742 | ) | | | (7,979 | ) | | | (19,261 | ) | | | (23,105 | ) |
| Loss on extinguishment of debt | | | — | | | | — | | | | 33,602 | | | | — | |
| | | | | | | | | | | | | |
| Distributable cash | | $ | (14,773 | ) | | $ | (19,741 | ) | | $ | 150,325 | | | $ | 149,630 | |
| | | | | | | | | | | | | |
| | (c) | | The following table includes a reconciliation of forecasted net income to forecasted EBITDA for the fiscal year ending September 30, 2006: |
| | | | | |
| | | Forecast | |
| | | Fiscal | |
| | | Year | |
| | | Ending | |
| | | September 30, | |
| | | 2006 | |
| Net income (estimate) | | $ | 113,000 | |
| Interest expense (estimate) | | | 74,000 | |
| Depreciation (estimate) | | | 68,000 | |
| Amortization (estimate) | | | 5,000 | |
| | | | |
| EBITDA (estimate) | | $ | 260,000 | |
| | | | |
