EXHIBIT 99
Contact: 610-337-1000 For Release: April 28, 2004
Robert W. Krick, ext. 3141 Immediate
Brenda A. Blake, ext. 3202
UGI REPORTS SECOND QUARTER EARNINGS
VALLEY FORGE, Pa., April 28 - UGI Corporation (NYSE:UGI) reported that its net
income for the second quarter of fiscal 2004 ended March 31, 2004 was $67.1
million, or $1.48 per diluted share, compared to $69.8 million, or $1.62 per
diluted share for the second quarter of fiscal 2003. Results for the recent
quarter include a loss of $5.9 million, or $0.13 per diluted share relating to
the settlement of contracts for the forward purchase of euros used to fund the
purchase of the remaining outstanding 80.5% ownership interests of AGZ Holding,
the parent company of French LPG distributor, Antargaz. Average diluted shares
outstanding were 5.4% higher for the recent quarter reflecting, among other
things, a common share offering in March 2004, the proceeds of which funded a
portion of the purchase price of AGZ Holding.
Lon R. Greenberg, chairman, president and chief executive officer of UGI, said,
"Notwithstanding warmer weather both nationally and regionally, our operating
units performed well. We continue to seek compelling transactions like Antargaz
that grow our earnings and diversify our cash flows. We remain committed to our
strategy of investing wisely in energy distribution businesses in which we have
proven expertise," noted Greenberg.
In UGI's domestic propane distributor, AmeriGas Partners, L. P. (NYSE: APU), net
income was $30.8 million in the most recently completed quarter compared to
$27.7 million in the 2003 quarter. Retail volumes sold rose 2.7% to a second
quarter record 403.9 million gallons versus 393.4 million gallons sold in the
prior-year period. Retail volumes sold increased primarily due to the October
2003 acquisition of Horizon Propane, partially offset by the continuing effects
of the weakened economy on commercial and industrial customer sales volumes.
Weather was approximately 1.5% warmer than normal during the recent quarter
compared to weather that was approximately 1.0% colder than normal in the
prior-year period according to the National Oceanic and Atmospheric
Administration. The Partnership's earnings before interest expense, income
taxes, depreciation and amortization (EBITDA) were $146.6 million in the fiscal
2004 period compared to $129.9 million a year ago.
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UGI REPORTS SECOND QUARTER EARNINGS PAGE 2
At UGI Utilities' Gas Utility, net income declined to $25.6 million in the
second quarter of fiscal 2004 from $30.5 million last year. Weather in the
service territory was 2.7% colder than normal, significantly warmer than last
year's nearly 8% colder than normal weather. "The adverse effects of
weather-induced lower volumes transported for delivery-service customers and
lower heating related sales to the retail core market were partially offset by
the beneficial effects of retail core-market customer growth," said Greenberg.
Operating and administrative expenses were essentially unchanged. Other income
declined $4.9 million reflecting lower non-tariff service income and greater
litigation-related costs.
Net income for the quarter from Electric Utility was $3.4 million, essentially
unchanged from the prior year on slightly warmer weather.
Energy Services net income for the quarter increased 23% to $4.3 million from
$3.5 million mainly due to the additional 4.9% interest in the Conemaugh
electricity generating station purchased last summer. Natural gas sales volumes
at GASMARK(R) increased 37% principally due to the acquisition of TXU's
northeastern U. S. gas marketing business in March 2003. Notwithstanding the
significant increase in natural gas volumes sold, results include lower average
unit margins in gas marketing principally due to the previously reported effects
of the seasonality of margin realization.
International Propane net income declined to $2.9 million from $5.4 million as a
result of the previously mentioned losses on forward currency contracts.
Operating income from FLAGA nearly doubled to $2.9 million in this year's
quarter from $1.5 million in last year's quarter as a result of higher
euro-based total margin, lower euro-based operating and administrative expenses
and the translation effects of the stronger euro. Income from equity investees
increased to $8.4 million from $5.0 million mainly as a result of improved
euro-based results of Antargaz and the effects of the stronger euro on Antargaz.
"We are very pleased that our European propane operations have performed so well
in spite of warmer than normal weather," concluded Greenberg.
Revenues for the quarter for UGI increased to $1.32 billion from $1.14 billion
mainly as a result of higher sales volumes and higher commodity prices.
Separately, UGI confirmed its earnings guidance for the fiscal year ending
September 30, 2004 as $2.10 to $2.20 per diluted share. The range includes a
projected loss of approximately $0.25 per share from both the dilutive effects
of 7.8 million additional shares outstanding related to the purchase of Antargaz
and the estimated seasonal loss from Antargaz for the spring and summer months
of April through September.
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.
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UGI REPORTS SECOND QUARTER EARNINGS PAGE 3
UGI invites interested parties to listen to the live audio webcast of
management's teleconference with the financial community about second quarter
fiscal year 2004 results on Wednesday, April 28, 2004 at 4:00 PM Eastern time.
The teleconference is available online 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
1-888/203-1112, (International replay 719/457-0820) passcode 419494, until
midnight ET May 2, 2004.
The financial tables appended to this news release can be viewed directly at
HTTP://WWW.SHAREHOLDER.COM/UGI/2Q04FINANCIALTABLE.PDF.
Comprehensive information about UGI Corporation is available on the Internet at
HTTP://WWW.UGICORP.COM.
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 all energy products,
including propane, natural gas, electricity and fuel oil, domestic and
international economic and political conditions and currency exchange rates. UGI
undertakes no obligation to release revisions to its forward-looking statements
to reflect events or circumstances occurring after today.
C-08 ### 4/28/04
UGI CORPORATION
REPORT OF EARNINGS
(Millions, except per share)
(Unaudited)
Three Months Ended Six Months Ended Twelve Months Ended
March 31, March 31, March 31,
---------------------- ----------------------- -----------------------
2004 2003 2004 2003 2004 2003
---------- ---------- ---------- ---------- ---------- ----------
Revenues:
AmeriGas Propane $ 687.7 $ 625.6 $ 1,147.9 $ 1,070.6 $ 1,705.7 $ 1,547.0
Gas Utility 243.5 239.9 392.8 385.0 547.7 510.1
Electric Utility 24.7 24.7 46.1 46.2 88.7 88.0
Energy Services (a) 328.8 217.2 561.7 322.1 907.6 469.4
International Propane 18.6 18.1 34.4 32.4 56.5 52.7
Corporate & Other 13.3 10.4 27.4 19.5 54.4 38.9
---------- ---------- ---------- ---------- ---------- ----------
Total revenues $ 1,316.6 $ 1,135.9 $ 2,210.3 $ 1,875.8 $ 3,360.6 $ 2,706.1
========== ========== ========== ========== ========== ==========
Operating income (loss):
AmeriGas Propane $ 127.2 $ 115.6 $ 192.8 $ 179.8 $ 177.5 $ 178.0
Gas Utility 46.5 55.1 75.9 88.6 83.4 102.4
Electric Utility 6.8 6.5 11.3 12.1 19.5 18.1
Energy Services (a) 7.5 5.9 13.8 9.8 23.2 18.3
International Propane (6.3) 1.3 (4.5) 1.6 (5.4) 1.9
Corporate & Other (0.1) -- 0.6 (0.1) 2.2 1.4
---------- ---------- ---------- ---------- ---------- ----------
Total operating income 181.6 184.4 289.9 291.8 300.4 320.1
Income from equity investees 8.4 5.0 12.6 6.9 11.0 7.9
Loss on extinguishment of debt -- (3.0) -- (3.0) -- (3.0)
Interest expense:
AmeriGas Propane (21.2) (21.8) (42.3) (44.5) (84.9) (87.6)
Gas Utility (3.9) (3.5) (8.0) (7.2) (16.2) (14.1)
Electric Utility (0.5) (0.7) (1.0) (1.3) (2.0) (2.5)
International Propane (1.0) (1.0) (1.9) (2.1) (3.9) (4.2)
Corporate and Other, net (0.1) (0.1) (0.2) (0.2) (0.3) (0.4)
---------- ---------- ---------- ---------- ---------- ----------
Total interest expense (26.7) (27.1) (53.4) (55.3) (107.3) (108.8)
Minority interests in AmeriGas Partners (55.6) (44.8) (78.3) (65.3) (47.6) (42.7)
---------- ---------- ---------- ---------- ---------- ----------
Income before income taxes and subsidiary
preferred stock dividends 107.7 114.5 170.8 175.1 156.5 173.5
Income tax expense (40.6) (44.3) (64.9) (67.8) (57.8) (68.0)
Dividends on UGI Utilities preferred shares
subject to mandatory redemption -- (0.4) -- (0.8) (0.4) (1.6)
---------- ---------- ---------- ---------- ---------- ----------
Net income $ 67.1 $ 69.8 $ 105.9 $ 106.5 $ 98.3 $ 103.9
========== ========== ========== ========== ========== ==========
Earnings per share (b):
Basic $ 1.51 $ 1.66 $ 2.43 $ 2.55 $ 2.27 $ 2.49
========== ========== ========== ========== ========== ==========
Diluted $ 1.48 $ 1.62 $ 2.37 $ 2.49 $ 2.22 $ 2.45
========== ========== ========== ========== ========== ==========
Average common shares outstanding (b):
Basic 44.299 41.958 43.566 41.822 43.215 41.644
========== ========== ========== ========== ========== ==========
Diluted 45.310 42.990 44.625 42.790 44.276 42.462
========== ========== ========== ========== ========== ==========
Supplemental information:
Net income (loss):
AmeriGas Propane (c) $ 30.8 $ 27.7 $ 43.7 $ 40.4 $ 26.5 $ 27.6
Gas Utility 25.6 30.5 40.8 48.1 40.7 51.2
Electric Utility 3.4 3.3 5.8 6.2 10.2 9.0
Energy Services (a) 4.3 3.5 8.0 5.8 13.4 10.7
International Propane 2.9 5.4 7.7 6.6 4.7 6.1
Corporate & Other 0.1 (0.6) (0.1) (0.6) 2.8 (0.7)
---------- ---------- ---------- ---------- ---------- ----------
Total net income $ 67.1 $ 69.8 $ 105.9 $ 106.5 $ 98.3 $ 103.9
========== ========== ========== ========== ========== ==========
(a) Effective October 1, 2003, the Energy Services segment includes the
operating results of Energy Services' gas marketing business as well as
UGID's electricity generation business. Energy Services' segment
presentation for the prior year has been restated to conform to the current
year presentation.
(b) Earnings 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 Six Months Ended Twelve Months Ended
March 31, March 31, March 31,
------------------ ------------------ ------------------
2004 2003 2004 2003 2004 2003
-------- -------- -------- -------- -------- --------
Revenues $268,217 $269,296 $438,901 $437,647 $638,012 $606,773
======== ======== ======== ======== ======== ========
Income before income taxes $ 48,820 $ 59,308 $ 78,166 $ 93,803 $ 84,575 $107,031
======== ======== ======== ======== ======== ========
Net income $ 29,149 $ 35,399 $ 46,657 $ 56,113 $ 51,216 $ 63,614
Dividends on preferred shares subject to mandatory redemption (a) -- 387 -- 775 388 1,550
-------- -------- -------- -------- -------- --------
Net income after dividends on preferred shares subject to
mandatory redemption $ 29,149 $ 35,012 $ 46,657 $ 55,338 $ 50,828 $ 62,064
======== ======== ======== ======== ======== ========
(a) Beginning July 1, 2003, the Company accounts for preferred shares subject
to mandatory redemption in accordance with SFAS No. 150, "Accounting for
Certain Financial Instruments with Characteristics of Both Liabilities and
Equity." For periods presented after June 30, 2003, dividends paid on these
shares are classified as a component of interest expense.