Exhibit 99
Contact: Robert W. Krick For Release: November 19, 2003
610-337-1000, Ext. 3141 Immediate
UGI POSTS 27% INCREASE IN EARNINGS PER SHARE IN 2003
VALLEY FORGE, PA., November 19 - UGI Corporation (NYSE: UGI) today reported net
income of $98.9 million, or $2.29 per diluted share for the fiscal year ended
September 30, 2003. This represents an increase of 27% over earnings per diluted
share of $1.80, or $75.5 million, for the fiscal year ended September 30, 2002.
For the quarter ended September 30, 2003, the company recorded a seasonal net
loss of $0.13 per diluted share compared to a loss of $0.16 per diluted share
for the same period in 2002.
Lon R. Greenberg, UGI chairman and chief executive officer, said, "We are very
pleased to report our fifth consecutive year of meaningful earnings growth. A
return to normal weather nationally and colder weather in our utility service
territory demonstrated the earnings power of our businesses and the efficacy of
our growth strategies. In 2003, we continued to exploit our national footprint
in AmeriGas, grew the customer base in our gas utility and made additional
investments in electricity generation and energy marketing. We remain focused on
growing our gas utility, domestic and international propane operations and other
energy service businesses."
UGI's ongoing financial objectives are to grow earnings per share six to ten
percent per year and increase its dividend three percent per year. "Not only
have we added to our track record of earnings growth, during the year we raised
our dividend for the sixteenth consecutive year and split our stock 3-for-2. Our
commitment to being a superior balanced growth and income investment continues,"
noted Greenberg.
In UGI's domestic propane unit, AmeriGas Propane, net income was $23.2 million
for fiscal year 2003 compared to $17.4 million last year. Earnings before
interest expense, income taxes, depreciation and amortization (EBITDA) at
AmeriGas Partners, L.P. (NYSE: APU) of $234.4 million for fiscal 2003 were
significantly higher than the $209.6 million recorded in fiscal 2002. As
previously announced, AmeriGas Partners 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.
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 somewhat reduced by the effects of price-induced customer
conservation and continued economic weakness. Operating income rose to $164.5
million in fiscal 2003 from $145.0 million in fiscal 2002.
Net income from Gas Utility increased in fiscal year 2003 to $48.0 million from
$36.4 million last year on weather that was 7% colder than normal and over 29%
colder than the prior year. Throughput in the Gas Utility was 83.8 billion cubic
feet in 2003 versus 70.5 billion cubic feet in 2002. Operating income for the
year in the Gas Utility rose to $96.1 million from $77.1 million.
-- MORE --
UGI POSTS 27% INCREASE IN EARNINGS PER SHARE IN 2003 PAGE 2
Net income from Electric Operations was $13.9 million in fiscal year 2003 versus
$6.1 million in fiscal 2002. In UGI Utilities' Electric Utility, sales were
980.0 gigawatt hours in 2003, a 5% increase over the 933.6 gigawatt hours in
2002 as a result of winter weather that was over 8% colder than normal and
nearly 27% colder than the prior year. Electric Operations' results also reflect
greater sales of electricity produced by its electric generation assets to third
parties and lower per-unit purchased power costs at Electric Utility, partially
offset by higher operating and administrative expenses. As previously reported,
UGI increased its ownership interest in the Conemaugh generating station in June
2003. Operating income improved to $25.9 million versus $13.2 million a year
ago.
Energy Services' net income for the year was $7.9 million compared with $6.5
million last year, reflecting the net effect of higher sales volumes, lower unit
margins and higher operating expenses. Operating income improved to $13.6
million from $11.1 million as a result of colder winter weather in the markets
served by GASMARK(R), internal growth and the acquisition of the northeastern
U.S. gas marketing business of TXU Energy.
International Propane operations produced net income of $3.6 million for the
year compared to $7.5 million a year ago. Results of FLAGA, UGI's wholly-owned
Austrian-based propane distributor, reflect the adverse translation effects of a
stronger euro, lower sales volumes as a result of price-induced conservation, a
continued weak economy and higher expenses. Weather in the markets served by
FLAGA was over 4% warmer than normal. The decline in earnings from our equity
investees in fiscal 2003 is principally a result of the absence of a gain
associated with a refinancing transaction that occurred in 2002 at Antargaz, our
partially owned French propane distributor.
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 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 tables appended to this news release can be viewed directly at
HTTP://WWW.SHAREHOLDER.COM/UGI/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 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 and
regional economic conditions. UGI undertakes no obligation to release revisions
to its forward-looking statements to reflect events or circumstances occurring
after today.
Comprehensive information about UGI Corporation is available on the Internet at
HTTP://WWW.UGICORP.COM.
C-12 ### 11/19/03
UGI CORPORATION
REPORT OF EARNINGS
(Millions, except per share)
(Unaudited)
Three Months Ended Twelve Months Ended
September 30, September 30,
-------------------------- ---------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Revenues:
AmeriGas Propane $ 270.7 $ 221.9 $ 1,628.4 $ 1,307.9
Gas Utility 55.2 57.0 539.9 404.5
Electric Operations 32.2 23.8 108.1 86.0
Energy Services 144.4 60.0 648.7 332.3
International Propane 10.5 11.1 54.5 46.7
Corporate & Other 14.2 10.2 46.5 36.3
---------- ---------- ---------- ----------
Total revenues $ 527.2 $ 384.0 $ 3,026.1 $ 2,213.7
========== ========== ========== ==========
Operating income (loss):
AmeriGas Propane $ (9.5) $ (13.6) $ 164.5 $ 145.0
Gas Utility 2.0 3.6 96.1 77.1
Electric Operations 7.4 4.5 25.9 13.2
Energy Services 1.4 3.4 13.6 11.1
International Propane 0.1 0.6 0.7 3.9
Corporate & Other 0.7 0.8 1.5 3.0
---------- ---------- ---------- ----------
Total operating income (loss) 2.1 (0.7) 302.3 253.3
(Loss) income from equity investees (1.8) 0.3 5.3 8.5
Loss on extinguishments of debt -- -- (3.0) (0.7)
Interest expense:
AmeriGas Propane (21.1) (21.3) (87.1) (87.8)
Gas Utility (4.7) (3.5) (15.4) (14.2)
Electric Operations (0.6) (0.6) (2.3) (2.4)
International Propane (1.0) (1.1) (4.1) (4.2)
Other, net -- (0.1) (0.3) (0.5)
---------- ---------- ---------- ----------
Total interest expense (27.4) (26.6) (109.2) (109.1)
Minority interests in AmeriGas Partners 16.6 17.5 (34.6) (28.0)
---------- ---------- ---------- ----------
Income (loss) before income taxes and subsidiary
preferred stock dividends (10.5) (9.5) 160.8 124.0
Income tax (expense) benefit 4.9 3.3 (60.7) (46.9)
Dividends on UGI Utilities Series Preferred Stock -- (0.4) (1.2) (1.6)
---------- ---------- ---------- ----------
Net income (loss) $ (5.6) $ (6.6) $ 98.9 $ 75.5
========== ========== ========== ==========
Earnings (loss) per share (a):
Basic $ (0.13) $ (0.16) $ 2.34 $ 1.83
========== ========== ========== ==========
Diluted $ (0.13) $ (0.16) $ 2.29 $ 1.80
========== ========== ========== ==========
Average common shares outstanding (a):
Basic 42.785 41.534 42.220 41.325
========== ========== ========== ==========
Diluted 42.785 41.534 43.236 41.907
========== ========== ========== ==========
Supplemental information:
Net income (loss):
AmeriGas Propane (b) $ (8.9) $ (10.0) $ 23.2 $ 17.4
Gas Utility (1.1) (0.6) 48.0 36.4
Electric Operations 4.2 2.1 13.9 6.1
Energy Services 0.7 2.0 7.9 6.5
International Propane (2.5) (0.4) 3.6 7.5
Corporate & Other 2.0 0.3 2.3 1.6
---------- ---------- ---------- ----------
Total net income (loss) $ (5.6) $ (6.6) $ 98.9 $ 75.5
========== ========== ========== ==========
(a) 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.
(b) 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 Twelve Months Ended
September 30, September 30,
-------------------- ----------------------
2003 2002 2003 2002
------- ------- -------- --------
Revenues $77,565 $80,877 $636,758 $490,552
======= ======= ======== ========
Income before income taxes $ 307 $ 4,060 $100,212 $ 73,665
======= ======= ======== ========
Net income $ 919 $ 1,949 $ 60,672 $ 44,095
Dividends on preferred stock -- 387 1,163 1,550
------- ------- -------- --------
Net income after dividends on preferred stock $ 919 $ 1,562 $ 59,509 $ 42,545
======= ======= ======== ========