Exhibit 99
Contact: Robert W. Krick For Release: November 19, 2003
610-337-1000, Ext. 3141 Immediate
AMERIGAS PARTNERS REPORTS RECORD 2003 RESULTS
VALLEY FORGE, PA., November 19 - AmeriGas Propane, Inc., general partner of
AmeriGas Partners, L.P. (NYSE: APU), reported net income for the Partnership of
$72.0 million, or $1.42 per limited partner unit for the fiscal year ended
September 30, 2003 compared to $55.4 million or $1.12 per limited partner unit
for fiscal year 2002. Average diluted limited partner units outstanding
increased 2.9% over the prior year. Earnings before interest expense, income
taxes, depreciation and amortization (EBITDA) of $234.4 million for fiscal 2003
were significantly higher than the $209.6 million recorded in fiscal 2002. As
previously announced, AmeriGas incurred $3.8 million of costs associated with a
realignment of its management structure and a $3.0 million loss on
extinguishment of debt associated with a refinancing during fiscal 2003. Weather
was essentially normal in fiscal 2003 compared to 10% warmer than normal in
fiscal 2002 according to information published by the National Oceanic and
Atmospheric Administration.
Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "The return of
normal weather demonstrated the earnings power of an AmeriGas built on internal
growth, quality acquisitions and attention to customer satisfaction. During the
year we made significant progress in growing our retail customer base, expanding
our strategic accounts program, adding over 2,000 new PPX(R) cylinder exchange
outlets and acquiring several high quality regional marketers."
Retail propane sales volumes in fiscal 2003 were nearly 1.1 billion gallons, up
9% compared to 987.5 million gallons in the prior year, principally as a result
of colder weather and partially reduced by the effects of price-induced customer
conservation and continued economic weakness. Revenues increased to $1.63
billion in fiscal 2003 from $1.31 billion in the prior-year period as a result
of higher volumes sold and higher selling prices reflecting higher propane
product costs. Operating expenses increased principally as a result of higher
distribution costs related to higher volumes delivered, higher medical and
general insurance, higher incentive compensation and higher uncollectible
accounts.
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AMERIGAS PARTNERS REPORTS RECORD 2003 RESULTS PAGE 2
For the fourth quarter of fiscal 2003, the Partnership recorded a seasonal net
loss of $31.4 million or $0.59 per limited partner unit compared with a net loss
of $35.1 million, or $0.70 per limited partner unit for the year-earlier period.
Retail volumes sold in the quarter were 174.9 million gallons versus 161.3
million gallons in last year's fourth quarter. EBITDA for the period increased
to $10.5 million from $3.2 million in the prior-year quarter on higher total
margin from higher volumes sold partially offset by an increase in operating
expenses. Revenue for the quarter totaled $270.7 million versus $221.9 million
in the prior-year quarter principally due to higher unit sales at higher selling
prices reflecting higher propane product costs.
AmeriGas Partners is the nation's largest retail propane marketer, serving
nearly 1.3 million customers from over 700 locations in 46 states. UGI
Corporation (NYSE: UGI), through subsidiaries, owns 48% of the Partnership and
individual unitholders own the remaining 52%.
AmeriGas Partners, L.P. will host its fourth quarter FY 2003 earnings
conference call on Wednesday, November 19, 2003, 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
888/203-1112, passcode #778835 (International replay 719/457-0820, passcode
#778835) through November 24, 2003.
The financial table appended to this news release can be viewed directly at
HTTP://WWW.SHAREHOLDER.COM/UGI/APU/4Q03FINANCIALTABLE.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 2002 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.
Comprehensive information about AmeriGas is available on the Internet at
HTTP://WWW.AMERIGAS.COM.
AP-12 ### 11/19/03
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,
--------------------------- -----------------------------
2003 2002 (a) 2003 2002 (a)
--------- ----------- ----------- -----------
Revenues:
Propane $ 239,141 $ 193,323 $ 1,502,564 $ 1,191,649
Other 31,570 28,581 125,860 116,231
--------- ----------- ----------- -----------
270,711 221,904 1,628,424 1,307,880
--------- ----------- ----------- -----------
Costs and expenses:
Cost of sales - propane 133,625 99,572 856,883 605,695
Cost of sales - other 14,736 11,681 53,452 47,383
Operating and administrative expenses (b) 114,429 109,479 488,434 447,809
Depreciation 18,597 16,018 70,423 61,993
Amortization 1,215 780 4,202 4,111
Other (income), net (2,387) (1,773) (8,960) (4,403)
--------- ----------- ----------- -----------
280,215 235,757 1,464,434 1,162,588
--------- ----------- ----------- -----------
Operating income (loss) (9,504) (13,853) 163,990 145,292
Loss on extinguishments of debt -- -- (3,023) (752)
Interest expense (21,144) (21,298) (87,195) (87,839)
--------- ----------- ----------- -----------
Income (loss) before income taxes (30,648) (35,151) 73,772 56,701
Income tax expense (991) (192) (586) (340)
Minority interests 223 268 (1,228) (995)
--------- ----------- ----------- -----------
Net income (loss) $ (31,416) $ (35,075) $ 71,958 $ 55,366
========= =========== =========== ===========
General partner's interest in net income (loss) $ (314) $ (350) $ 720 $ 554
========= =========== =========== ===========
Limited partners' interest in net income (loss) $ (31,102) $ (34,725) $ 71,238 $ 54,812
========= =========== =========== ===========
Net income (loss) per limited partner unit:
Basic $ (0.59) $ (0.70) $ 1.42 $ 1.12
========= =========== =========== ===========
Diluted $ (0.59) $ (0.70) $ 1.42 $ 1.12
========= =========== =========== ===========
Average limited partner units outstanding:
Basic 52,333 49,432 50,267 48,909
========= =========== =========== ===========
Diluted 52,333 49,432 50,337 48,932
========= =========== =========== ===========
SUPPLEMENTAL INFORMATION:
Retail gallons sold (millions) (c) 174.9 161.3 1,074.9 987.5
EBITDA (d) $ 10,531 $ 3,213 $ 234,364 $ 209,649
Distributable cash (d) (16,998) (23,613) 124,212 101,079
Capital expenditures:
Maintenance capital expenditures 6,385 5,528 22,957 20,731
Growth capital expenditures 3,236 9,562 30,472 32,945
(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) Included in operating and administrative expenses during the three- and
twelve-month periods ended September 30, 2003 are $734 and $3,756,
respectively, of costs associated with the management realignment
announced in June 2003.
(c) Retail gallons sold in the 2003 three- 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)
(d) 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.
Management defines distributable cash as EBITDA less interest expense and
maintenance capital expenditures. 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 the Minimum
Quarterly Distribution pursuant to the terms of the Partnership Agreement.
The Partnership's definition of distributable cash may be different from
that used by other entities.
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,
----------------------- -------------------------
2003 2002 2003 2002
-------- -------- --------- ---------
Net income (loss) $(31,416) $(35,075) $ 71,958 $ 55,366
Income tax expense 991 192 586 340
Interest expense 21,144 21,298 87,195 87,839
Depreciation 18,597 16,018 70,423 61,993
Amortization 1,215 780 4,202 4,111
-------- -------- --------- ---------
EBITDA 10,531 3,213 234,364 209,649
Interest expense (21,144) (21,298) (87,195) (87,839)
Maintenance capital expenditures (6,385) (5,528) (22,957) (20,731)
-------- -------- --------- ---------
Distributable cash $(16,998) $(23,613) $ 124,212 $ 101,079
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