EXHIBIT 99
Contact: Robert W. Krick For Release: January 28, 2004
610-337-1000, ext. 3141 Immediate
AMERIGAS PARTNERS REPORTS FIRST QUARTER RESULTS
VALLEY FORGE, Pa., January 28 - AmeriGas Propane, Inc., general partner of
AmeriGas Partners, L.P. (NYSE: APU), reported net income for the Partnership's
first quarter of fiscal 2004 ended December 31, 2003 of $43.1 million or $0.81
per diluted limited partner unit, compared to $40.9 million, or $0.82 per
diluted limited partner unit, in the same period last year. Average units
outstanding were 6.0% higher for the recent quarter as a result of a common unit
offering in June 2003.
Earnings before interest expense, income taxes, depreciation and amortization
(EBITDA) were $84.6 million in the first fiscal quarter of 2004 compared to
$81.4 million a year ago. For the three months ended December 31, 2003, retail
volumes sold declined to 304.5 million gallons from 324.2 million gallons sold
in the prior-year period. Weather was 7.4% warmer than normal during the recent
quarter compared to weather that was approximately 1% colder than normal in the
prior-year period, according to the National Oceanic and Atmospheric
Administration.
Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "Retail volumes
sold declined as a result of warmer weather and, with respect to commercial and
industrial customers, continuing economic weakness, partially offset by volume
growth from recent acquisitions."
Revenues for the quarter were $460.2 million versus $445.0 million a year ago,
principally reflecting higher propane product costs. Operating and
administrative expenses rose modestly during the quarter mainly reflecting the
impact of the Active Propane and Horizon Propane acquisitions in 2003 partially
offset by the beneficial effects of the management realignment completed in late
fiscal 2003.
AmeriGas Partners is the nation's largest retail propane marketer, serving
nearly 1.3 million customers from more than 700 locations in 46 states. UGI
Corporation (NYSE:UGI), through subsidiaries, owns 48% of the Partnership and
individual unitholders own the remaining 52%.
-- MORE --
AMERIGAS PARTNERS REPORTS FIRST QUARTER RESULTS PAGE 2
AmeriGas Partners invites interested parties to listen to the live webcast of
management's teleconference with financial analysts about first quarter fiscal
year 2004 financial results and current activities on Wednesday, January 28,
2004, at 4:00 PM Eastern time. The teleconference is available online live, in
audio format, at http://www.shareholder.com/ugi/medialist.cfm and will be
archived through February 27, 2004. A telephonic replay of the call can be
accessed approximately two hours after the completion of the call at
888-203-1112 and International access at 719-457-0820, pass code 217168. The
telephone replay is available through midnight Eastern time February 1, 2004.
The financial tables appended to this news release can be viewed directly at
HTTP://WWW.SHAREHOLDER.COM/UGI/APU/1Q04FINANCIALTABLE.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. 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. You
should read the Partnership's Annual Report on Form 10-K for a more extensive
list of factors that could affect results. 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
WWW.AMERIGAS.COM.
AP-02 ### 1/28/04
AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenues:
Propane $ 423,261 $ 410,580 $ 1,515,245 $ 1,263,081
Other 36,937 34,451 128,346 118,445
----------- ----------- ----------- -----------
460,198 445,031 1,643,591 1,381,526
----------- ----------- ----------- -----------
Costs and expenses:
Cost of sales - propane 239,122 228,294 867,711 648,350
Cost of sales - other 15,381 15,072 53,761 48,907
Operating and administrative expenses (a) 123,763 120,946 491,251 455,639
Depreciation 18,337 16,474 72,286 63,398
Amortization 1,318 1,017 4,503 4,011
Other (income), net (3,282) (1,186) (11,056) (5,753)
----------- ----------- ----------- -----------
394,639 380,617 1,478,456 1,214,552
----------- ----------- ----------- -----------
Operating income 65,559 64,414 165,135 166,974
Loss on extinguishment of debt -- -- (3,023) --
Interest expense (21,135) (22,699) (85,631) (87,792)
----------- ----------- ----------- -----------
Income before income taxes 44,424 41,715 76,481 79,182
Income tax expense (707) (258) (1,035) (60)
Minority interests (568) (545) (1,251) (1,241)
----------- ----------- ----------- -----------
Net income $ 43,149 $ 40,912 $ 74,195 $ 77,881
=========== =========== =========== ===========
General partner's interest in net income $ 431 $ 409 $ 742 $ 779
=========== =========== =========== ===========
Limited partners' interest in net income $ 42,718 $ 40,503 $ 73,453 $ 77,102
=========== =========== =========== ===========
Net income per limited partner unit:
Basic $ 0.82 $ 0.82 $ 1.44 $ 1.56
=========== =========== =========== ===========
Diluted $ 0.81 $ 0.82 $ 1.44 $ 1.56
=========== =========== =========== ===========
Average limited partner units outstanding:
Basic 52,348 49,432 51,002 49,420
=========== =========== =========== ===========
Diluted 52,442 49,475 51,085 49,494
=========== =========== =========== ===========
SUPPLEMENTAL INFORMATION:
Retail gallons sold (millions) (b) 304.5 324.2 1,055.2 1,031.3
EBITDA (c) $ 84,646 $ 81,360 $ 237,650 $ 233,142
Distributable cash (c) 57,389 52,931 128,670 125,430
Capital expenditures:
Maintenance capital expenditures 6,122 5,730 23,349 19,920
Growth capital expenditures 8,291 9,831 28,932 34,717
(a) Included in operating and administrative expenses during the twelve-month
period ended December 31, 2003 are $3,756 of costs associated with the
management realignment announced in June 2003.
(b) Retail gallons sold in the three- and twelve-month periods ended December
31, 2003 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)
(c) 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
December 31, December 31,
----------------------- -----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Net income $ 43,149 $ 40,912 $ 74,195 $ 77,881
Income tax expense 707 258 1,035 60
Interest expense 21,135 22,699 85,631 87,792
Depreciation 18,337 16,474 72,286 63,398
Amortization 1,318 1,017 4,503 4,011
--------- --------- --------- ---------
EBITDA 84,646 81,360 237,650 233,142
Interest expense (21,135) (22,699) (85,631) (87,792)
Maintenance capital expenditures (6,122) (5,730) (23,349) (19,920)
--------- --------- --------- ---------
Distributable cash $ 57,389 $ 52,931 $ 128,670 $ 125,430
========= ========= ========= =========
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