Contact: 610-337-1000 For Release: July 27, 2005
Robert W. Krick, ext. 3141 Immediate
Brenda A. Blake, ext. 3202
UGI REPORTS THIRD QUARTER EARNINGS, RAISES GUIDANCE
VALLEY FORGE, Pa., July 27 - UGI Corporation (NYSE:UGI) reported that its
results for the third fiscal quarter ended June 30, 2005 were $10.1 million, or
$0.10 per diluted share, excluding a loss on the early extinguishment of debt
resulting from the previously-reported refinancing at AmeriGas Propane, compared
to $8.3 million, or $0.08 per diluted share, for the third quarter of fiscal
2004. Net income for the recent quarter, including the loss on the early
extinguishment of debt of $0.09 per diluted share, was $0.01 per diluted share.
Earnings per share statistics reflect the 2-for-1 stock split effective May 24,
as previously reported.
Lon R. Greenberg, chairman and chief executive officer of UGI, said, "We are
pleased to report another quarter of improved operating income. Colder weather
than last year in our domestic service areas and continued customer growth
offset the adverse effects of warmer weather at Antargaz and customer
conservation induced by persistently high energy commodity costs."
UGI's domestic propane distributor, AmeriGas Propane, reported an improved
seasonal loss of $5.1 million, excluding the loss on the early extinguishment of
debt, in the most recently completed quarter compared to a loss of $7.0 million
in the 2004 quarter. Including the after-tax loss on the early extinguishment of
debt of $9.4 million, AmeriGas Propane's net loss was $14.5 million. For the
three months ended June 30, 2005, retail volumes sold increased to 181.9 million
gallons from 175.2 million gallons sold in the prior-year period on colder
weather and as a result of acquisitions and internal growth. Nationally, weather
was 4.9% warmer than normal in the 2005 period compared to weather that was 8.0%
warmer than normal in the prior-year period according to the National Oceanic
and Atmospheric Administration. Total margin increased principally as a result
of higher retail volumes sold at higher average unit margins. Operating expenses
in the most recent quarter increased due to higher vehicle fuel costs, higher
general insurance costs and increased performance-based equity compensation
expense.
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UGI REPORTS THIRD QUARTER EARNINGS, RAISES GUIDANCE PAGE 2
At UGI Utilities' Gas Utility, net income rose to $2.3 million in the third
quarter of fiscal 2005 from $1.3 million last year. Weather in the service
territory was 6.4% warmer than normal and significantly colder than last year's
18.7% warmer than normal weather. "Notwithstanding the cooler weather and
year-over-year customer growth, total throughput decreased slightly as increased
sales to core-market customers were more than offset by lower volumes
transported for interruptible and firm delivery service customers," said
Greenberg. Total margin increased reflecting the higher total margin from
core-market customers and greater interruptible customer average unit margins.
Operating and administrative expenses were higher mainly reflecting higher
employee compensation and benefits expenses, including higher performance-based
equity compensation expense.
Net income for the quarter from Electric Utility was $2.7 million, down from
$3.2 million a year ago. Kilowatt-hour sales and total margin were comparable to
the prior year period. Operating and administrative expense rose reflecting, in
part, increases in performance-based equity compensation.
Energy Services net income for the quarter increased to $6.3 million from $6.0
million as increased income attributable to higher sales from its generation
assets were partially offset by both decreased income from its natural gas
marketing unit and higher operating expenses. Operating expenses increased
mainly as a result of the operation of a recently purchased propane import
terminal in Virginia as previously reported, and higher uncollectible expenses.
International Propane net income increased to $6.4 million in the 2005 quarter
from $4.1 million in the 2004 quarter principally as a result of lower income
tax expense resulting from a reduction in the statutory tax rate in France. At
Antargaz, UGI's LPG distribution business in France, operating income declined
as the effect of warm weather-induced lower sales volumes were partially offset
by continuing unusually high unit margins. Sales volumes in France decreased to
59.2 million gallons from 66.3 million gallons on weather that was 20% warmer
than normal during the 2005 quarter compared to 8% warmer than normal in the
2004 quarter. Results at Flaga, UGI's Austrian-based LPG distribution unit,
improved mainly as a result of higher sales volumes.
Revenues for the quarter for UGI increased to $932.5 million from $823.4 million
mainly as a result of higher commodity prices.
Separately, UGI raised its earnings guidance approximately 5% for the fiscal
year ending September 30, 2005 to $1.82 to $1.89 per diluted share, excluding
the loss on the early extinguishment of debt of AmeriGas Propane of $0.09 per
diluted share.
UGI is a holding company with propane marketing, utility and energy marketing
subsidiaries. Through subsidiaries, UGI owns 46% of AmeriGas Partners, L. P.
(NYSE: APU), the nation's largest retail propane marketer, and owns Antargaz,
one of the largest LPG distributors in France.
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UGI REPORTS THIRD QUARTER EARNINGS, RAISES GUIDANCE PAGE 3
UGI will host its third quarter FY 2005 earnings conference call on Wednesday,
July 27, 2005, 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
1-888-203-1112, passcode 5244555 (International replay 719-457-0820, passcode
5244555) through July 31, 2005.
The financial tables appended to this news release can be viewed directly at
HTTP://WWW.SHAREHOLDER.COM/UGI/3Q05FINANCIALTABLE.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 ### 7/27/05
UGI CORPORATION
REPORT OF EARNINGS
(Millions, except per share)
(Unaudited)
Three Months Ended Nine Months Ended Twelve Months Ended
June 30, June 30, June 30,
------------------------ ----------------------- -------------------------
2005(a) 2004(a) 2005(a) 2004(a) 2005(a) 2004(a)
---------- ---------- ---------- ---------- ---------- ----------
Revenues:
AmeriGas Propane $ 349.5 $ 315.1 $ 1,604.0 $ 1,463.0 $ 1,916.9 $ 1,733.7
International Propane 163.1 156.8 804.4 191.2 945.6 201.7
Gas Utility 89.5 97.7 506.6 490.5 576.5 545.7
Electric Utility 22.0 21.0 69.9 67.1 92.5 89.4
Energy Services 290.6 217.3 1,051.8 779.0 1,240.0 933.3
Corporate & Other 17.8 15.5 45.9 42.9 61.1 57.1
---------- ---------- ---------- ---------- ---------- ----------
Total revenues $ 932.5 $ 823.4 $ 4,082.6 $ 3,033.7 $ 4,832.6 $ 3,560.9
========== ========== ========== ========== ========== ==========
Operating income (loss):
AmeriGas Propane $ 1.6 $ (4.0) $ 178.1 $ 188.8 $ 165.3 $ 179.3
International Propane (b) 13.2 14.3 189.6 9.8 200.3 9.9
Gas Utility 7.7 6.9 84.4 82.8 81.7 84.8
Electric Utility 4.9 5.5 16.8 16.8 20.9 20.5
Energy Services 10.6 10.2 30.7 24.0 37.8 29.1
Corporate & Other (0.4) 1.0 0.7 1.6 1.8 2.3
---------- ---------- ---------- ---------- ---------- ----------
Total operating income 37.6 33.9 500.3 323.8 507.8 325.9
Income (loss) from equity investees (0.7) (0.6) (2.0) 12.0 (2.7) 10.2
Loss on extinguishment of debt (33.6) -- (33.6) -- (33.6) --
Interest expense:
AmeriGas Propane (19.7) (20.5) (60.9) (62.8) (81.2) (83.9)
International Propane (7.8) (8.3) (24.3) (10.2) (31.7) (11.2)
Gas Utility (3.9) (3.9) (12.0) (11.9) (16.0) (16.6)
Electric Utility (0.5) (0.6) (1.5) (1.6) (1.9) (2.2)
Corporate and Other, net (0.2) (0.2) (0.2) (0.4) (0.3) (0.4)
---------- ---------- ---------- ---------- ---------- ----------
Total interest expense (32.1) (33.5) (98.9) (86.9) (131.1) (114.3)
Minority interests, principally
in AmeriGas Partners 27.9 14.0 (45.7) (64.3) (28.9) (47.7)
---------- ---------- ---------- ---------- ---------- ----------
Income before income taxes (0.9) 13.8 320.1 184.6 311.5 174.1
Income tax (expense) benefit 1.6 (5.5) (123.9) (70.4) (117.9) (65.5)
---------- ---------- ---------- ---------- ---------- ----------
Net income $ 0.7 $ 8.3 $ 196.2 $ 114.2 $ 193.6 $ 108.6
========== ========== ========== ========== ========== ==========
Earnings per share (c):
Basic $ 0.01 $ 0.08 $ 1.89 $ 1.24 $ 1.87 $ 1.20
========== ========== ========== ========== ========== ==========
Diluted $ 0.01 $ 0.08 $ 1.86 $ 1.21 $ 1.84 $ 1.17
========== ========== ========== ========== ========== ==========
Average common shares
outstanding (c):
Basic 104.312 101.830 103.542 92.010 103.254 90.642
========== ========== ========== ========== ========== ==========
Diluted 106.024 103.816 105.422 94.084 105.178 92.718
========== ========== ========== ========== ========== ==========
Supplemental information:
Net income (loss):
AmeriGas Propane (d) $ (14.5) $ (7.0) $ 22.9 $ 36.7 $ 15.6 $ 27.8
International Propane (b) 6.4 4.1 100.6 11.8 102.1 9.2
Gas Utility 2.3 1.3 43.5 42.1 39.3 41.0
Electric Utility 2.7 3.2 9.1 9.0 11.1 10.9
Energy Services 6.3 6.0 18.2 14.0 22.4 17.0
Corporate & Other (2.5) 0.7 1.9 0.6 3.1 2.7
---------- ---------- ---------- ---------- ---------- ----------
Total net income $ 0.7 $ 8.3 $ 196.2 $ 114.2 $ 193.6 $ 108.6
========== ========== ========== ========== ========== ==========
(a) UGI Corporation's results include Antargaz as an equity investee through
March 31, 2004 and a consolidated operation beginning April 1, 2004.
(b) International Propane's operating income and net income include $19.9
million and $14.9 million, respectively, in both the nine and twelve months
ended June 30, 2005 due to the reversal of non-income tax accruals related
to a prior year.
(c) Earnings per share and average common shares outstanding for all periods
reflect the effects of the Company's 2-for-1 common stock split distributed
May 24, 2005 to shareholders of record on May 17, 2005.
(d) Amounts are net of minority interests in AmeriGas Partners, L.P.