EXHIBIT 99
(PRESS RELEASE)
Contact: Robert W. Krick For Release: July 30, 2003
610-337-1000, ext. 3141 Immediate
AMERIGAS PARTNERS REPORTS THIRD QUARTER RESULTS,
REITERATES FISCAL YEAR GUIDANCE
VALLEY FORGE, Pa., July 30 - AmeriGas Propane, Inc., general partner of AmeriGas
Partners, L.P. (NYSE: APU), reported a seasonal net loss for the Partnership's
third quarter of fiscal 2003 ended June 30, 2003 of $27,414,000 or $0.54 per
limited partner unit, compared to a loss of $9,945,000 or $0.20 per limited
partner unit, in the same period last year. Results for the June 2003 quarter
include $3,022,000, or $0.06 per limited partner unit, of costs associated with
the realignment of the regional management structure announced in June.
For the three months ended June 30, 2003, 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. Earnings before interest expense, income taxes, depreciation and
amortization, equity investee income, loss on debt extinguishments and minority
interests (EBITDA) were $13,061,000 in the fiscal 2003 period compared to
$28,455,000 a year ago.
Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "Our
residential sales volumes increased over last year as a result of the slightly
cooler weather as well as 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. We
continue to expect that EBITDA for the fiscal year ending September 30, 2003
will be approximately $237 million to $242 million, excluding the charges
relating to the above-mentioned realignment." Net income (after management
realignment expenses) is expected to be approximately $70 million.
Revenues for the quarter were $287,136,000 versus $254,469,000 a year ago,
principally reflecting higher propane product costs. Operating expenses rose
during the quarter mainly reflecting the costs related to the management
realignment, higher medical and insurance costs, higher expenses in our PPX(R)
cylinder exchange business as well as higher incentive compensation accruals
relating to improved fiscal year 2003 financial results.
AmeriGas Partners is the nation's largest retail propane marketer, serving
nearly 1.2 million customers from approximately 650 locations in 46 states. UGI
Corporation (NYSE:UGI), through subsidiaries, owns 48% of the Partnership and
individual unitholders own the remaining 52%.
-- MORE --
EBITDA (earnings before interest expense, income taxes, depreciation and
amortization, equity investee income, loss on debt extinguishments and minority
interests) should not be considered as an alternative to net income (as an
indicator of operating performance) or as an alternative to cash flow (as
measures of liquidity or ability to service debt obligations) and is not a
measure of performance or financial condition under accounting principles
generally accepted in the United States. Management believes EBITDA, excluding
charges related to the management realignment, is a meaningful non-GAAP
financial measure used by investors to compare our operating performance with
other companies within the propane industry and to evaluate our ability to meet
loan covenants. Our definition of EBITDA may be different from that used by
other companies. The following table includes a reconciliation of forecasted net
income to forecasted EBITDA for fiscal 2003.
FORECAST
FISCAL 2003
-----------
($Millions)
Net income (estimate) $ 70
Minority interests (estimate) 1
Interest expense (estimate) 87
Loss on extinguishments of debt (estimate) 3
Depreciation and amortization (estimate) 74
Equity investee (income) (estimate) --
-----
EBITDA after management realignment expense (estimate) 235
Management realignment expense 4
-----
EBITDA before management realignment expense (estimate) $ 239
-----
AmeriGas Partners 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 AmeriGas is available on the Internet at
WWW.AMERIGAS.COM.
The financial table appended to this news release can be viewed directly at
HTTP://WWW.SHAREHOLDER.COM/UGI/APU/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 the
Partnership's Annual Report on Form 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, the capacity to transport propane to our
market areas and regional economic conditions. The Partnership undertakes no
obligation to release revisions to its forward-looking statements to reflect
events or circumstances occurring after today.
AP-09 ### 7/30/03
AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
Three Months Ended Nine Months Ended Twelve Months Ended
June 30, June 30, June 30,
------------------- -------------------- ----------------------
2003 2002(a) 2003 2002(a) 2003 2002(a)(b)
---- ------- ---- ------- ---- ----------
Revenues:
Propane $257,705 $226,192 $1,263,423 $ 998,326 $1,456,746 $1,183,733
Other 29,431 28,277 94,290 87,650 122,871 111,523
-------- -------- ---------- ---------- ---------- ----------
287,136 254,469 1,357,713 1,085,976 1,579,617 1,295,256
-------- -------- ---------- ---------- ---------- ----------
Costs and expenses:
Cost of sales - propane 145,637 105,992 723,258 506,123 822,830 607,179
Cost of sales - other 12,310 12,032 38,716 35,702 50,397 45,369
Operating and administrative expenses (c) 119,136 108,846 374,005 338,330 483,484 432,051
Depreciation 17,917 15,534 51,826 45,975 67,844 58,743
Amortization 974 1,098 2,987 3,331 3,767 10,088
Equity investee (income) loss 637 54 493 (458) 663 (458)
Other (income), net (3,008) (856) (7,066) (2,172) (9,009) (4,837)
-------- -------- ---------- ---------- ---------- ----------
293,603 242,700 1,184,219 926,831 1,419,976 1,148,135
-------- -------- ---------- ---------- ---------- ----------
Operating income (loss) (6,467) 11,769 173,494 159,145 159,641 147,121
Loss on extinguishments of debt -- -- (3,023) (752) (3,023) (752)
Interest expense (21,468) (21,784) (66,051) (66,541) (87,349) (87,774)
-------- -------- ---------- ---------- ---------- ----------
Income (loss) before income taxes (27,935) (10,015) 104,420 91,852 69,269 58,595
Income tax (expense) benefit 343 68 405 (148) 213 (700)
Minority interests 178 2 (1,451) (1,263) (1,183) (990)
-------- -------- ---------- ---------- ---------- ----------
Net income (loss) $(27,414) $ (9,945) $ 103,374 $ 90,441 $ 68,299 $ 56,905
======== ======== ========== ========== ========== ==========
General partner's interest in net income (loss) $ (274) $ (100) $ 1,034 $ 904 $ 683 $ 569
======== ======== ========== ========== ========== ==========
Limited partners' interest in net income (loss) $(27,140) $ (9,845) $ 102,340 $ 89,537 $ 67,616 $ 56,336
======== ======== ========== ========== ========== ==========
Net income (loss) per limited partner unit:
Basic $ (0.54) $ (0.20) $ 2.06 $ 1.84 $ 1.38 $ 1.18
======== ======== ========== ========== ========== ==========
Diluted $ (0.54) $ (0.20) $ 2.06 $ 1.83 $ 1.38 $ 1.17
======== ======== ========== ========== ========== ==========
Average limited partner units outstanding:
Basic 49,847 49,432 49,571 48,736 48,949 47,881
======== ======== ========== ========== ========== ==========
Diluted 49,847 49,432 49,631 48,830 49,003 47,952
======== ======== ========== ========== ========== ==========
SUPPLEMENTAL INFORMATION:
Retail gallons sold (millions) (d) 182.4 182.5 900.0 826.2 1,061.3 979.1
EBITDA (e) $ 13,061 $ 28,455 $ 228,800 $ 207,993 $ 231,915 $ 215,494
Distributable cash flow (e) (13,144) 3,415 146,177 126,249 122,466 107,705
Capital expenditures:
Maintenance capital expenditures 4,737 3,256 16,572 15,203 22,100 20,015
Growth capital expenditures 5,803 8,543 27,236 23,383 36,594 29,150
(a) Certain operating and administrative expenses associated with PPX(R)
have been reclassified to cost of sales to conform to the current
period presentation.
(b) Pro forma net income and net income per limited partner unit 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 $62,800 and $1.30, respectively.
(c) Included in operating and administrative expenses during the three-,
nine-, and twelve-month periods ended June 30, 2003 are $3,022 of costs
associated with the management realignment announced in June 2003.
(d) Retail gallons sold in the 2003 three-, nine-, and twelve-month periods
include certain bulk gallons previously considered wholesale gallons.
Prior-period gallon amounts have been adjusted to conform to the
current period classification.
(continued)
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AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
(continued)
(e) EBITDA (earnings before interest expense, income taxes, depreciation
and amortization, equity investee income, loss on debt extinguishments
and minority interests) and distributable cash flow (EBITDA less
interest expense and maintenance capital expenditures) should not be
considered as alternatives to net income (as indicators of operating
performance) or as alternatives to cash flow (as measures of liquidity
or ability to service debt obligations) and are not measures 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 evaluate our ability to meet loan covenants.
Management believes distributable cash flow is a meaningful non-GAAP
measure for evaluating the Partnership's ability to declare and pay the
Minimum Quarterly Distribution pursuant to the terms of the Partnership
Agreement. The Partnership's definitions of EBITDA and distributable
cash flow may be different from those used by other companies. Weather
significantly impacts demand for propane and profitability because many
customers use propane for heating purposes. Due to the seasonal nature
of the Partnership's propane business, EBITDA and distributable cash
flow for interim periods are not necessarily indicative of amounts to
be expected for a full year. The following table includes
reconciliations of net income to EBITDA and distributable cash flow for
all periods presented:
Three Months Ended Nine Months Ended Twelve Months Ended
June 30, June 30, June 30,
-------------------------- -------------------------- -------------------------
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
Net income (loss) $ (27,414) $ (9,945) $ 103,374 $ 90,441 $ 68,299 $ 56,905
Minority interests (178) (2) 1,451 1,263 1,183 990
Income tax (benefit) expense (343) (68) (405) 148 (213) 700
Interest expense 21,468 21,784 66,051 66,541 87,349 87,774
Loss on extinguishments of debt -- -- 3,023 752 3,023 752
Depreciation 17,917 15,534 51,826 45,975 67,844 58,743
Amortization 974 1,098 2,987 3,331 3,767 10,088
Equity investee (income) loss 637 54 493 (458) 663 (458)
--------- --------- --------- --------- --------- ---------
EBITDA 13,061 28,455 228,800 207,993 231,915 215,494
Interest expense (21,468) (21,784) (66,051) (66,541) (87,349) (87,774)
Maintenance capital expenditures (4,737) (3,256) (16,572) (15,203) (22,100) (20,015)
--------- --------- --------- --------- --------- ---------
Distributable cash flow $ (13,144) $ 3,415 $ 146,177 $ 126,249 $ 122,466 $ 107,705
========= ========= ========= ========= ========= =========
2