EXHIBIT 99
(PRESS RELEASE)
Contact: Robert W. Krick For Release: April 30, 2003
610-337-1000, ext. 3141 Immediate
UGI REPORTS SIGNIFICANT INCREASE IN SECOND QUARTER EARNINGS
VALLEY FORGE, Pa., April 30 - UGI Corporation (NYSE: UGI) reported that its net
income for the second quarter of fiscal 2003 ended March 31, 2003 rose over 29%
to $69.8 million, or $1.62 per diluted share, from $54.0 million, or $1.28 per
diluted share for the second quarter of fiscal 2002. Earnings per share
statistics reflect the 3-for-2 stock split effective April 1 as previously
announced.
Lon R. Greenberg, chairman, president and chief executive officer of UGI, said,
"Our excellent performance in the quarter reflects the continuation of colder
winter weather patterns this heating season versus last year, as well as the
beneficial effects of the growth investments we made over the past few years."
In UGI's domestic propane unit, AmeriGas Partners, L. P. (NYSE: APU), retail
volumes sold rose 8.3% to a second quarter record 393.4 million gallons versus
363.4 million gallons sold in the prior-year period. Weather was essentially
normal during the recent quarter compared to weather that was approximately 8.5%
warmer than normal in the prior-year period according to the National Oceanic
and Atmospheric Administration. Operating income from AmeriGas Propane was
$115.6 million in this year's quarter compared to $104.4 million in the
prior-year quarter. "Weather in the eastern portion of the continental U. S. was
colder than normal in the quarter, but the western regions were significantly
warmer than normal," explained Greenberg. "In this quarter, we overcame the
triple challenges of this bifurcated national weather pattern, the continued
sluggish economy adversely affecting our non-weather sensitive sales volumes,
and uncertainty in the energy markets related to international events that
produced the highest propane product cost in over a decade."
At UGI Utilities' Gas Utility, operating income rose over 43% to $55.1 million
in the second quarter of fiscal 2003 from $38.4 million last year. Weather was
nearly 8% colder than normal in the most recent quarter compared to nearly 17%
warmer than normal in the prior-year quarter. "As in the first quarter, our Gas
Utility earnings rebounded from last year as the return of colder winter weather
yielded improved results. Our growing gas heating customer base and productivity
improvement programs continue to position us for excellent results in the
future," said Greenberg. Higher margins resulted from higher weather-induced
throughput to core market and firm delivery service customers. Operating
expenses rose in large part as a result of the impact of colder weather.
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UGI REPORTS SIGNIFICANT INCREASE IN SECOND QUARTER EARNINGS PAGE 2
Operating income for the quarter from Electric Operations nearly
tripled to $8.4 million from $2.9 million. The increase in operating income
reflects lower purchased power costs and higher weather-induced unit sales in
our Electric Utility distribution business and greater spot market unit sales
to third parties at higher margins in our electric generation business. Weather
was approximately 8% colder than normal in the Electric Utility service
territory in the recent quarter compared to 16.4% warmer than normal in the
prior-year quarter.
Energy marketing operating income for the quarter doubled to $4.0 million from
$2.0 million on increased sales volumes, principally on colder weather in the
Mid-Atlantic region served by GASMARK(R), higher unit margins and continued
internal customer growth. "The March acquisition of TXU's gas marketing business
in our regional footprint added value immediately as well," noted Greenberg.
International propane operations reported higher volumes and margins principally
as a result of colder weather in Europe. Operating income from our wholly-owned
business, FLAGA, declined to $1.5 million for the recent quarter compared to
$2.0 million in the prior-year period. Weather was approximately 2% colder than
normal in the recently completed quarter versus 14.9% warmer than normal in the
prior-year quarter. "The beneficial effects of colder weather were more than
offset by price-induced conservation and lower unit margins in our cylinder
sales business reflecting the rapid increase in propane product cost," explained
Greenberg. "We continue to implement both productivity improvements and new
marketing plans in the territories served by FLAGA."
Equity income attributable to international propane operations increased to $5.1
million for the fiscal 2003 quarter from $3.5 million in the fiscal 2002 quarter
principally as a result of operations at Antargaz. The improved Antargaz results
reflect the benefits of colder weather, a stronger euro and the elimination of
goodwill amortization partially offset by expected lower unit margins. UGI owns
approximately 20% of Antargaz, one of the largest propane distributors in
France.
Revenues for the quarter for UGI increased to $1,135.9 million versus $764.0
million mainly as a result of higher sales volumes and higher commodity prices.
"Nearly four years ago, we announced our intention to grow our core utility and
domestic propane businesses as well as invest in related and complementary
businesses," said Greenberg. "During the quarter, we announced acquisitions in
two of our existing businesses. We believe that continuing this focused growth
strategy domestically and internationally will continue to result in superior
long-term value for our shareholders," concluded Greenberg.
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UGI REPORTS SIGNIFICANT INCREASE IN SECOND QUARTER EARNINGS PAGE 3
UGI is a holding company with propane marketing, utility and energy marketing
subsidiaries. Through subsidiaries, UGI owns 51% of AmeriGas Partners, L. P.
(NYSE: APU), the nation's largest retail propane marketer.
UGI invites interested parties to listen to the live webcast of management's
teleconference with the financial community about second quarter fiscal year
2003 results on Wednesday, April 30, 2003, at 4:00 PM Eastern time. The
teleconference is available online live, in audio format, at
http://www.shareholder.com/ugi/medialist.cfm. A telephonic replay of the call
can be accessed approximately two hours after the completion of the call at
888/203-1112, (International replay 719/457-0820) passcode 476376, until
midnight ET May 4, 2003.
Comprehensive information about UGI Corporation is available on the Internet at
HTTP://WWW.UGICORP.COM.
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 UGI's Annual
Report for a more extensive list of factors that could affect results. Among
them are adverse weather conditions, price volatility and availability of all
energy products, including propane, natural gas, electricity and fuel oil. UGI
undertakes no obligation to release revisions to its forward-looking statements
to reflect events or circumstances occurring after today.
C-06 ### 4/30/03
UGI CORPORATION
REPORT OF EARNINGS
(Millions, except per share)
(Unaudited)
Three Months Ended Six Months Ended Twelve Months Ended
March 31, March 31, March 31,
---------------------- ----------------------- ----------------------
2003 2002 2003 2002 2003 2002 (a)
---------- ---------- ---------- ---------- ---------- ----------
Revenues:
AmeriGas Propane $ 625.6 $ 460.1 $ 1,070.6 $ 831.5 $ 1,547.0 $ 1,260.0
UGI Utilities 269.2 179.9 437.6 321.4 606.7 508.0
Energy Services 212.6 103.5 315.7 187.2 460.8 316.8
International Propane 18.1 12.7 32.4 26.4 52.7 48.2
Other Enterprises 10.4 7.8 19.5 16.9 38.9 37.6
---------- ---------- ---------- ---------- ---------- ----------
Total revenues $ 1,135.9 $ 764.0 $ 1,875.8 $ 1,383.4 $ 2,706.1 $ 2,170.6
========== ========== ========== ========== ========== ==========
Operating income (loss):
AmeriGas Propane $ 115.6 $ 104.4 $ 179.8 $ 146.8 $ 178.0 $ 129.1
Gas Utility 55.1 38.4 88.6 63.3 102.4 77.8
Electric Operations 8.4 2.9 13.7 5.6 21.3 9.6
Energy Services 4.0 2.0 8.2 4.2 15.1 6.5
International Propane 1.3 1.8 1.6 3.6 1.9 4.0
Corporate & Other -- 1.0 (0.1) 1.5 1.4 (9.2)
---------- ---------- ---------- ---------- ---------- ----------
Total operating income 184.4 150.5 291.8 225.0 320.1 217.8
Income from equity investees 5.0 3.7 6.9 7.5 7.9 7.5
Loss on extinguishments of debt (3.0) -- (3.0) (0.7) (3.0) (0.7)
Interest expense:
AmeriGas Propane (21.8) (22.0) (44.5) (44.7) (87.6) (85.2)
UGI Utilities (4.2) (4.3) (8.5) (8.5) (16.6) (17.4)
International Propane (1.0) (0.9) (2.1) (2.1) (4.2) (4.5)
Other, net (0.1) (0.2) (0.2) (0.3) (0.4) (0.7)
---------- ---------- ---------- ---------- ---------- ----------
Total interest expense (27.1) (27.4) (55.3) (55.6) (108.8) (107.8)
Minority interests in AmeriGas Partners (44.8) (41.5) (65.3) (50.6) (42.7) (24.3)
---------- ---------- ---------- ---------- ---------- ----------
Income before income taxes and subsidiary
preferred stock dividends 114.5 85.3 175.1 125.6 173.5 92.5
Income tax expense (44.3) (30.9) (67.8) (46.7) (68.0) (33.4)
Dividends on UGI Utilities Series Preferred Stock (0.4) (0.4) (0.8) (0.8) (1.6) (1.6)
---------- ---------- ---------- ---------- ---------- ----------
Net income $ 69.8 $ 54.0 $ 106.5 $ 78.1 $ 103.9 $ 57.5
========== ========== ========== ========== ========== ==========
Earnings per share (c):
Basic $ 1.66 $ 1.31 $ 2.55 $ 1.90 $ 2.49 $ 1.40
========== ========== ========== ========== ========== ==========
Diluted $ 1.62 $ 1.28 $ 2.49 $ 1.86 $ 2.45 $ 1.38
========== ========== ========== ========== ========== ==========
Average common shares outstanding (c):
Basic 41.958 41.288 41.822 41.193 41.644 41.024
========== ========== ========== ========== ========== ==========
Diluted 42.990 42.132 42.790 41.922 42.462 41.594
========== ========== ========== ========== ========== ==========
Supplemental information:
Pre-tax income (loss):
AmeriGas Propane (b) $ 45.9 $ 41.1 $ 67.1 $ 51.3 $ 44.6 $ 19.4
UGI Utilities 59.3 37.0 93.8 60.4 107.1 70.0
Energy Services 4.0 2.0 8.2 4.2 15.1 6.2
International Propane 5.4 4.4 6.3 8.5 5.8 6.6
Corporate & Other (0.1) 0.8 (0.3) 1.2 0.9 (9.7)
---------- ---------- ---------- ---------- ---------- ----------
Total pre-tax income $ 114.5 $ 85.3 $ 175.1 $ 125.6 $ 173.5 $ 92.5
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(a) Pro forma net income and net income per diluted share for the twelve
months ended March 31, 2002 as if SFAS No. 142, "Goodwill and Other
Intangible Assets," had been adopted at the beginning of that period would
have been $61.3 and $1.47, respectively.
(b) Amounts are net of minority interests in AmeriGas Partners, L.P.
(c) Earnings per share and average common shares outstanding for all periods
presented reflect the effects of the Company's 3-for-2 common stock split
distributed April 1, 2003 to shareholders of record on February 28, 2003.
UGI UTILITIES, INC.
(a wholly owned subsidiary of UGI Corporation)
REPORT OF EARNINGS
(Thousands of Dollars)
(Unaudited)
Three Months Ended Six Months Ended Twelve Months Ended
March 31, March 31, March 31,
--------------------- --------------------- ---------------------
2003 2002 2003 2002 2003 2002
-------- -------- -------- -------- -------- --------
Revenues $269,296 $179,945 $437,647 $321,426 $606,773 $508,094
======== ======== ======== ======== ======== ========
Income before income taxes $ 59,308 $ 37,091 $ 93,803 $ 60,437 $107,031 $ 70,077
======== ======== ======== ======== ======== ========
Net income $ 35,399 $ 22,549 $ 56,113 $ 36,594 $ 63,614 $ 42,480
Dividends on preferred stock 387 387 775 775 1,550 1,550
-------- -------- -------- -------- -------- --------
Net income after dividends on
preferred stock $ 35,012 $ 22,162 $ 55,338 $ 35,819 $ 62,064 $ 40,930
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