EXHIBIT 99
(PRESS RELEASE)
Contact: Robert W. Krick For Release: July 30, 2003
610-337-1000, ext. 3141 Immediate
UGI REPORTS THIRD QUARTER EARNINGS,
REITERATES FISCAL YEAR GUIDANCE
VALLEY FORGE, Pa., July 30 - UGI Corporation (NYSE: UGI) reported a net loss for
the third quarter of fiscal 2003 ended June 30, 2003 of $2.0 million, or $0.05
per diluted share compared to net income of $4.0 million, or $0.09 per diluted
share for the third quarter of fiscal 2002.
Lon R. Greenberg, chairman, president and chief executive officer of UGI, said,
"Our third quarter results reflect the seasonal nature of our operations. We
expected to report lower earnings this quarter versus last year in our propane
and natural gas distribution businesses. We continue to expect full year
earnings per share to be in the range of $2.25 to $2.30 per diluted share, the
fifth consecutive double-digit increase in earnings per share. We are pleased to
have continued our track record of success this year and look forward to
improved earnings per share next year as well."
In UGI's domestic propane unit, AmeriGas Partners, L.P. (NYSE: APU), retail
volumes sold were 182.4 million gallons, virtually unchanged from the 182.5
million gallons sold in the prior-year period. Nationally, weather was slightly
cooler than weather in the prior-year period according to the National Oceanic
and Atmospheric Administration. AmeriGas Propane reported an operating loss of
$5.8 million in the recently completed quarter compared to operating income of
$11.8 million in the prior-year period. "Our residential sales volumes increased
over last year as a result of the slightly cooler weather, customer growth and
acquisitions. However, the sluggish economy continued to adversely affect our
non-weather sensitive sales volumes. In addition, unit margins declined as a
result of higher propane product costs and other costs in our PPX(R) cylinder
exchange business," explained Greenberg. Operating expenses rose during the
quarter mainly reflecting a $3.0 million charge related to the
previously-disclosed management realignment, higher medical and insurance costs,
higher expenses in our PPX(R) cylinder exchange business as well as higher
incentive compensation accruals relating to improved fiscal year 2003 financial
results.
At UGI Utilities' Gas Utility, operating income declined to $5.5 million in the
third quarter of fiscal 2003 from $10.2 million last year principally as result
of higher operating expenses. Weather was cooler than last year during the early
spring in the eastern Pennsylvania service area. Higher margins resulted from
higher weather-induced throughput to core market and firm delivery service
customers. Operating expenses increased $6.2 million due in large part to
greater litigation-related costs and, to a lesser extent, higher distribution
system maintenance, bad debt and incentive compensation relating to improved
fiscal year 2003 financial results.
- MORE -
UGI REPORTS THIRD QUARTER EARNINGS, PAGE 2
REITERATES FISCAL YEAR GUIDANCE
Operating income for the quarter from Electric Operations rose to $4.8 million
from $3.1 million. The increase in operating income reflects greater spot market
unit sales to third parties at higher margins in our electric generation
business and lower purchased power costs and higher weather-induced unit sales
in our Electric Utility distribution business. Weather was cooler than last year
in the Electric Utility service territory.
Energy marketing operating income for the quarter increased to $4.0 million from
$3.5 million principally as a result of the acquisition of the northeastern U.S.
gas marketing business of TXU Energy. "We welcomed a number of well-regarded
energy industry professionals to the existing high quality team at GASMARK(R),"
noted Greenberg.
International propane operations reported slightly lower earnings on slightly
lower volumes at Flaga. "Results from our European propane businesses were in
line with expectations," explained Greenberg.
Revenues for the quarter for UGI increased to $623.1 million from $446.3 million
mainly as a result of higher sales volumes and higher commodity prices.
UGI is a holding company with propane marketing, utility and energy marketing
subsidiaries. Through subsidiaries, UGI owns 48% 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 third quarter fiscal year 2003
results on Wednesday, July 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 490472, until
midnight ET August 3, 2003.
Comprehensive information about UGI Corporation is available on the Internet at
HTTP://WWW.UGICORP.COM.
The financial tables appended to this news release can be viewed directly at
HTTP://WWW.SHAREHOLDER.COM/UGI/3Q03FINANCIALTABLE.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 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-09 ### 7/30/03
UGI CORPORATION
REPORT OF EARNINGS
(Millions, except per share)
(Unaudited)
Three Months Ended Nine Months Ended Twelve Months Ended
June 30, June 30, June 30,
------------------------ ------------------------ ------------------------
2003 2002 2003 2002 2003 2002(a)
---------- ---------- ---------- ---------- ---------- ----------
Revenues:
AmeriGas Propane $ 287.1 $ 254.5 $ 1,357.7 $ 1,086.0 $ 1,579.6 $ 1,295.3
Gas Utility 99.7 68.1 484.7 347.5 541.7 408.6
Electric Operations 23.3 20.2 75.9 62.2 99.7 83.9
Energy Services 188.6 85.1 504.3 272.3 564.3 333.3
International Propane 11.6 9.2 44.0 35.6 55.1 47.4
Corporate & Other 12.8 9.2 32.3 26.1 42.5 36.5
---------- ---------- ---------- ---------- ---------- ----------
Total revenues $ 623.1 $ 446.3 $ 2,498.9 $ 1,829.7 $ 2,882.9 $ 2,205.0
========== ========== ========== ========== ========== ==========
Operating income (loss):
AmeriGas Propane $ (5.8) $ 11.8 $ 174.0 $ 158.6 $ 160.4 $ 146.7
Gas Utility 5.5 10.2 94.1 73.5 97.7 77.2
Electric Operations 4.8 3.1 18.5 8.7 23.0 10.8
Energy Services 4.0 3.5 12.2 7.7 15.6 7.4
International Propane (1.0) (0.3) 0.6 3.3 1.2 4.1
Corporate & Other 0.9 0.7 0.8 2.2 1.6 (7.7)
---------- ---------- ---------- ---------- ---------- ----------
Total operating income 8.4 29.0 300.2 254.0 299.5 238.5
Income from equity investees 0.2 0.7 7.1 8.2 7.4 8.1
Loss on extinguishments of debt -- -- (3.0) (0.7) (3.0) (0.7)
Interest expense:
AmeriGas Propane (21.5) (21.8) (66.0) (66.5) (87.3) (87.7)
Gas Utility (3.5) (3.4) (10.7) (10.7) (14.2) (14.5)
Electric Operations (0.4) (0.6) (1.7) (1.8) (2.3) (2.5)
International Propane (1.0) (1.0) (3.1) (3.1) (4.2) (4.3)
Other, net (0.1) (0.1) (0.3) (0.4) (0.4) (0.5)
---------- ---------- ---------- ---------- ---------- ----------
Total interest expense (26.5) (26.9) (81.8) (82.5) (108.4) (109.5)
Minority interests in AmeriGas Partners 14.1 5.1 (51.2) (45.5) (33.7) (30.2)
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) before income taxes and subsidiary
preferred stock dividends (3.8) 7.9 171.3 133.5 161.8 106.2
Income tax (expense) benefit 2.2 (3.5) (65.6) (50.2) (62.3) (38.8)
Dividends on UGI Utilities Series Preferred Stock (0.4) (0.4) (1.2) (1.2) (1.6) (1.6)
---------- ---------- ---------- ---------- ---------- ----------
Net income (loss) $ (2.0) $ 4.0 $ 104.5 $ 82.1 $ 97.9 $ 65.8
========== ========== ========== ========== ========== ==========
Earnings (loss) per share(b):
Basic $ (0.05) $ 0.10 $ 2.49 $ 1.99 $ 2.34 $ 1.60
========== ========== ========== ========== ========== ==========
Diluted $ (0.05) $ 0.09 $ 2.43 $ 1.95 $ 2.29 $ 1.57
========== ========== ========== ========== ========== ==========
Average common shares outstanding(b):
Basic 42.451 41.390 42.031 41.256 41.899 41.174
========== ========== ========== ========== ========== ==========
Diluted 42.451 42.320 43.038 42.053 42.835 41.880
========== ========== ========== ========== ========== ==========
Supplemental information:
Pre-tax income (loss):
AmeriGas Propane(c) $ (13.8) $ (4.9) $ 53.3 $ 46.4 $ 35.7 $ 28.6
Gas Utility 2.0 6.8 83.4 62.8 83.5 62.7
Electric Operations 4.4 2.5 16.8 6.9 20.7 8.3
Energy Services 4.0 3.5 12.2 7.7 15.6 7.3
International Propane (1.2) (0.5) 5.1 8.0 5.1 7.6
Corporate & Other 0.8 0.5 0.5 1.7 1.2 (8.3)
---------- ---------- ---------- ---------- ---------- ----------
Total pre-tax income (loss) $ (3.8) $ 7.9 $ 171.3 $ 133.5 $ 161.8 $ 106.2
========== ========== ========== ========== ========== ==========
(a) Pro forma net income and net income per diluted share for the twelve
months ended June 30, 2002 as if SFAS No. 142, "Goodwill and Other
Intangible Assets," had been adopted at the beginning of that period would
have been $66.8 and $1.60, respectively.
(b) Earnings (loss) 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.
(c) Amounts are net of minority interests in AmeriGas Partners, L.P.
UGI UTILITIES, INC.
(a wholly owned subsidiary of UGI Corporation)
REPORT OF EARNINGS
(Thousands of Dollars)
(Unaudited)
Three Months Ended Nine Months Ended Twelve Months Ended
June 30, June 30, June 30,
------------------- ------------------- -------------------
2003 2002 2003 2002 2003 2002
-------- -------- -------- -------- -------- --------
Revenues $121,546 $ 88,249 $559,193 $409,675 $640,070 $492,571
======== ======== ======== ======== ======== ========
Income before income taxes $ 6,102 $ 9,168 $ 99,905 $ 69,605 $103,965 $ 70,985
======== ======== ======== ======== ======== ========
Net income $ 3,640 $ 5,552 $ 59,753 $ 42,146 $ 61,702 $ 43,042
Dividends on preferred stock 388 388 1,163 1,163 1,550 1,550
-------- -------- -------- -------- -------- --------
Net income after dividends on preferred stock $ 3,252 $ 5,164 $ 58,590 $ 40,983 $ 60,152 $ 41,492
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