EXHIBIT 99
Contact: 610-337-1000 For Release: April 28, 2004
Robert W. Krick, ext. 3141 Immediate
Brenda A. Blake, ext. 3202
AMERIGAS PARTNERS REPORTS EARNINGS INCREASE
VALLEY FORGE, Pa., April 28 - AmeriGas Propane, Inc., general partner of
AmeriGas Partners, L.P. (NYSE:APU), reported that net income for the
Partnership's second quarter of fiscal 2004 ended March 31, 2004 rose over 17%
to $105.7 million, or $1.99 per limited partner unit, compared to $89.9 million,
or $1.80 per limited partner unit, in the same period last year. Results for the
March 2003 quarter include a loss of $3.0 million, or $0.06 per limited partner
unit, related to a refinancing of certain debt as previously reported. Average
units outstanding were approximately 6% higher for the recent quarter as a
result of a common unit offering completed in June 2003.
For the three months ended March 31, 2004, 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. 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. 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. Operating income was $128.0
million in the most recently completed quarter compared to $115.5 million in the
2003 quarter.
Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "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. We continue to invest in acquisitions and
in our grill cylinder exchange business to exploit our national footprint."
Revenues for the quarter were $687.7 million versus $625.5 million a year ago,
principally reflecting higher propane product costs as well as higher propane
sales volumes. Operating expenses rose during the quarter mainly reflecting the
Horizon Propane acquisition and, to a lesser extent, slightly higher expenses
associated with the Partnership's PPX(R) grill cylinder exchange program. "The
expense increases related to our growth initiatives were partially offset by the
beneficial effects of the management realignment completed in late fiscal 2003,"
added Bissell.
-- MORE --
AMERIGAS PARTNERS REPORTS EARNINGS INCREASE PAGE 2
Separately, AmeriGas Partners confirmed its earnings guidance for the fiscal
year ending September 30, 2004 of approximately $250 million of EBITDA, or net
income of approximately $88 million.
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 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 audio 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/APU/2Q04FINANCIALTABLE.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 political, economic and regulatory conditions in the U. S. and
abroad. 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-04 ### 4/28/04
AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
Three Months Ended Six Months Ended Twelve Months Ended
March 31, March 31, March 31,
------------------------- ------------------------- -------------------------
2004 2003 2004 2003 2004 2003
----------- ----------- ----------- ----------- ----------- -----------
Revenues:
Propane $ 654,142 $ 595,138 $ 1,077,403 $ 1,005,718 $ 1,574,249 $ 1,425,233
Other 33,568 30,408 70,505 64,859 131,506 121,717
----------- ----------- ----------- ----------- ----------- -----------
687,710 625,546 1,147,908 1,070,577 1,705,755 1,546,950
----------- ----------- ----------- ----------- ----------- -----------
Costs and expenses:
Cost of sales - propane 392,297 349,327 631,419 577,621 910,681 783,185
Cost of sales - other 12,899 11,334 28,280 26,406 55,326 50,119
Operating and administrative expenses (a) 139,395 133,923 263,158 254,869 496,723 473,194
Depreciation 18,556 17,435 36,893 33,909 73,407 65,461
Amortization 1,260 996 2,578 2,013 4,767 3,891
Other (income), net (4,656) (3,016) (7,938) (4,202) (12,696) (6,777)
----------- ----------- ----------- ----------- ----------- -----------
559,751 509,999 954,390 890,616 1,528,208 1,369,073
----------- ----------- ----------- ----------- ----------- -----------
Operating income 127,959 115,547 193,518 179,961 177,547 177,877
Loss on extinguishment of debt -- (3,023) -- (3,023) -- (3,023)
Interest expense (21,167) (21,884) (42,302) (44,583) (84,914) (87,665)
----------- ----------- ----------- ----------- ----------- -----------
Income before income taxes 106,792 90,640 151,216 132,355 92,633 87,189
Income tax benefit (expense) 79 320 (628) 62 (1,276) (62)
Minority interests (1,221) (1,084) (1,789) (1,629) (1,388) (1,359)
----------- ----------- ----------- ----------- ----------- -----------
Net income $ 105,650 $ 89,876 $ 148,799 $ 130,788 $ 89,969 $ 85,768
=========== =========== =========== =========== =========== ===========
General partner's interest in net income $ 1,057 $ 899 $ 1,488 $ 1,308 $ 900 $ 858
=========== =========== =========== =========== =========== ===========
Limited partners' interest in net income $ 104,593 $ 88,977 $ 147,311 $ 129,480 $ 89,069 $ 84,910
=========== =========== =========== =========== =========== ===========
Net income per limited partner unit:
Basic $ 2.00 $ 1.80 $ 2.81 $ 2.62 $ 1.72 $ 1.72
=========== =========== =========== =========== =========== ===========
Diluted $ 1.99 $ 1.80 $ 2.81 $ 2.62 $ 1.72 $ 1.72
=========== =========== =========== =========== =========== ===========
Average limited partner units outstanding:
Basic 52,373 49,433 52,360 49,433 51,729 49,421
=========== =========== =========== =========== =========== ===========
Diluted 52,431 49,491 52,436 49,483 51,811 49,482
=========== =========== =========== =========== =========== ===========
SUPPLEMENTAL INFORMATION:
Retail gallons sold (millions) 403.9 393.4 708.4 717.6 1,065.7 1,061.4
EBITDA (b) (c) $ 146,554 $ 129,871 $ 231,200 $ 211,231 $ 254,333 $ 242,847
Distributable cash (b) 119,382 101,882 176,771 154,813 147,143 134,563
Capital expenditures:
Maintenance capital expenditures 6,005 6,105 12,127 11,835 22,276 20,619
Growth capital expenditures 11,191 11,602 19,482 21,433 29,494 39,334
(a) Included in operating and administrative expenses during the twelve-month
period ended March 31, 2004 are $3,756 of costs associated with the
management realignment announced in June 2003.
(b) 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.
(continued)
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AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
(continued)
The following table includes reconciliations of net income to EBITDA and
distributable cash for all periods presented:
Three Months Ended Six Months Ended Twelve Months Ended
March 31, March 31, March 31,
--------------------- --------------------- ---------------------
2004 2003 2004 2003 2004 2003
--------- --------- --------- --------- --------- ---------
Net income $ 105,650 $ 89,876 $ 148,799 $ 130,788 $ 89,969 $ 85,768
Income tax (benefit) expense (79) (320) 628 (62) 1,276 62
Interest expense 21,167 21,884 42,302 44,583 84,914 87,665
Depreciation 18,556 17,435 36,893 33,909 73,407 65,461
Amortization 1,260 996 2,578 2,013 4,767 3,891
--------- --------- --------- --------- --------- ---------
EBITDA (c) 146,554 129,871 231,200 211,231 254,333 242,847
Interest expense (21,167) (21,884) (42,302) (44,583) (84,914) (87,665)
Maintenance capital expenditures (6,005) (6,105) (12,127) (11,835) (22,276) (20,619)
--------- --------- --------- --------- --------- ---------
Distributable cash $ 119,382 $ 101,882 $ 176,771 $ 154,813 $ 147,143 $ 134,563
========= ========= ========= ========= ========= =========
(c) The following table includes a reconciliation of forecasted net income to
forecasted EBITDA for the fiscal year ending September 30, 2004:
Forecast
Twelve
Months
Ended
September 30,
2004
--------
Net income (estimate) $ 88,000
Interest expense (estimate) 82,000
Depreciation (estimate) 75,000
Amortization (estimate) 5,000
--------
EBITDA (estimate) $250,000
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