[AMERIGAS PARTNERS, L.P. LETTERHEAD]
Contact: 610-337-1000 For Immediate Release:
Robert W. Krick, ext. 3645 November 15, 2006
Brenda A. Blake, ext. 3202
AMERIGAS PARTNERS REPORTS FISCAL 2006 RESULTS
VALLEY FORGE, Pa., November 15 - AmeriGas Propane, Inc., general partner of
AmeriGas Partners, L.P. (NYSE: APU), reported adjusted net income of $108.3
million, or $1.89 per limited partner unit, for the fiscal year ended September
30, 2006, compared to adjusted net income of $87.3 million, or $1.58 per limited
partner unit, for the previous fiscal year. Adjusted net income excludes the
previously reported $17.1 million loss on the early extinguishment of debt in
fiscal 2006 and the previously reported $33.6 million loss on the early
extinguishment of debt and a $7.1 million after-tax gain on the sale of a
terminal in fiscal 2005. Net income for fiscal year 2006 was $91.2 million, or
$1.59 per limited partner unit, and $60.8 million, or $1.10 per limited partner
unit for fiscal year 2005, including the losses on the early extinguishment of
debt and the gain on the terminal sale.
The Partnership's earnings before interest expense, income taxes, depreciation
and amortization, losses on the early extinguishment of debt and the gain on the
terminal sale (adjusted EBITDA) were $255.0 million in fiscal 2006 and $240.4
million in fiscal 2005. EBITDA including the effects of the refinancings and
terminal sale was $237.9 million in fiscal 2006 and $215.9 million in fiscal
2005.
Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "Our 2006
fiscal year was challenging on many fronts, including warmer weather and the
impact of higher energy prices on customer conservation and operating costs.
However, we successfully managed our unit margins and operating expenses to
largely offset those negative factors. Assuming a return to more normal weather
in fiscal 2007, we expect EBITDA in the range of $265 million to $275 million."
For the twelve months ended September 30, 2006, retail propane volumes sold
decreased almost 6% to 975 million gallons from 1.035 billion gallons in the
prior year principally due to warmer weather and price-induced customer
conservation. Nationally, weather was 10% warmer than normal in fiscal 2006
compared to weather that was almost 7% warmer than normal in the prior year,
according to the National Oceanic and Atmospheric Administration. Revenues
increased to $2.12 billion in fiscal 2006 from $1.96 billion in fiscal 2005
reflecting higher average selling prices partially offset by lower retail
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AMERIGAS PARTNERS REPORTS FISCAL 2006 RESULTS PAGE 2
volumes sold. Total margin increased $32.2 million principally due to higher
average propane unit margins and higher fees in response to increases in
operating expenses. Operating and administrative expenses increased primarily as
a result of higher vehicle fuel and lease expenses, higher compensation and
benefits expenses, and higher maintenance and repair expenses. These expense
increases were partially offset by a $7.2 million favorable net expense
reduction related to general insurance and litigation, primarily reflecting
improved claims history.
For the fourth quarter of fiscal 2006, the Partnership recorded a seasonal net
loss of $27.8 million, or $0.48 per limited partner unit, compared with a loss
of $28.4 million, or $0.51 per limited partner unit, for the prior-year period.
Retail volumes sold in the quarter were 170.8 million gallons compared to 177.4
million gallons sold in the prior-year quarter. EBITDA for the period increased
to $8.8 million from $7.9 million in last year's quarter. Revenue for the
quarter totaled $391.8 million versus $359.3 million in the fiscal 2005 quarter
principally due to higher selling prices in response to significantly higher
propane product costs.
AmeriGas Partners is the nation's largest retail propane marketer, serving
nearly 1.3 million customers from approximately 600 locations in 46 states. UGI
Corporation (NYSE:UGI), through subsidiaries, owns 44% of the Partnership and
individual unitholders own the remaining 56%.
AmeriGas Partners, L. P. will host its fourth quarter FY 2006 earnings
conference call on Wednesday, November 15, 2006, at 4:00 PM ET. Interested
parties may listen to a live audio webcast 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 5934822; (International replay 719-457-0820, passcode
5934822) through Friday, November 17, 2006.
The financial tables appended to this news release can be viewed directly at
HTTP://WWW.SHAREHOLDER.COM/UGI/APU/4Q06FINANCIALTABLE.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, increased customer conservation
measures, 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-15 ### 11/15/06
AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
<Table>
<Caption>
Three Months Ended Twelve Months Ended
September 30, September 30,
------------------------- -----------------------------
2006 2005 2006 2005
-------- -------- ---------- ----------
Revenues:
Propane $348,893 $322,539 $1,953,714 $1,819,659
Other 42,910 36,764 165,552 143,597
-------- --------- ---------- ----------
391,803 359,303 2,119,266 1,963,256
-------- --------- ---------- ----------
Costs and expenses:
Cost of sales - propane 235,587 215,014 1,277,306 1,161,808
Cost of sales - other 18,725 15,115 66,463 58,198
Operating and administrative expenses 131,786 125,716 535,288 518,127
Depreciation 17,308 16,284 67,793 68,108
Amortization 1,135 1,372 4,659 5,517
Other income, net (2,931) (4,255) (16,299) (25,781)
-------- --------- ---------- ----------
401,610 369,246 1,935,210 1,785,977
-------- --------- ---------- ----------
Operating (loss) income (9,807) (9,943) 184,056 177,279
Loss on extinguishment of debt - - (17,079) (33,602)
Interest expense (17,927) (18,942) (74,094) (79,900)
-------- --------- ---------- ----------
(Loss) income before income taxes (27,734) (28,885) 92,883 63,777
Income tax (expense) benefit (183) 295 (185) (1,514)
Minority interests 140 198 (1,540) (1,418)
-------- --------- ---------- ----------
Net (loss) income (a) $(27,777) $ (28,392) $ 91,158 $ 60,845
======== ========= ========== ==========
General partner's interest in net (loss) income (b) $ (278) $ (284) $ 912 $ 608
======== ========= ========== ==========
Limited partners' interest in net (loss) income (b) $(27,499) $ (28,108) $ 90,246 $ 60,237
======== ========= ========== ==========
Net (loss) income per limited partner unit - basic
and diluted (a)(b) $ (0.48) $ (0.51) $ 1.59 $ 1.10
======== ========= ========== ==========
Average limited partner units outstanding:
Basic 56,797 54,943 56,797 54,602
======== ========= ========== ==========
Diluted 56,797 54,943 56,835 54,655
======== ========= ========== ==========
SUPPLEMENTAL INFORMATION:
Retail gallons sold (millions) 170.8 177.4 975.2 1,034.9
EBITDA (c) (d) $ 8,776 $ 7,911 $ 237,889 $ 215,884
Distributable cash (c) (15,818) (14,773) 157,243 150,325
Capital expenditures:
Maintenance capital expenditures 6,667 3,742 23,631 19,261
Growth capital expenditures 12,373 8,737 47,079 43,356
(a) Net income and net income per limited partner unit for the twelve months
ended September 30, 2005 include a gain of $7,107 and $0.13, respectively,
recognized in connection with the Partnership's sale of its 50% ownership
interest in Atlantic Energy, Inc.
(b) In accordance with Emerging Issues Task Force Issue No. 03-6,
"Participating Securities and the Two-Class Method under FASB Statement No.
128" ("EITF 03-6") the Partnership calculates net income per limited
partner unit for each period according to distributions declared and
participation rights in undistributed earnings, as if all of the earnings
for the period had been distributed. In periods with undistributed earnings
above certain levels, the calculation according to the two-class method
results in an increased allocation of undistributed earnings per unit to
the general partner and a dilution of the earnings per unit for the limited
partners. There was no dilutive effect of EITF 03-6 for the three or twelve
months ended September 30, 2006 or for the three or twelve months ended
September 30, 2005. Because EITF 03-6 can impact the calculation of
Partnership net income per limited partner unit on a quarterly basis but
does not currently affect the calculation on an annual basis, annual net
income per limited partner unit is not equal to the sum of net income per
limited partner unit for each of the Partnership's quarterly periods.
(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 and excluding losses on extinguishments of
debt in connection with a refinancing. 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 quarterly distributions. 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
September 30, September 30,
------------------------- ------------------------
2006 2005 2006 2005
-------- --------- -------- --------
Net (loss) income $(27,777) $ (28,392) $ 91,158 $ 60,845
Income tax (benefit) expense 183 (295) 185 1,514
Interest expense 17,927 18,942 74,094 79,900
Depreciation 17,308 16,284 67,793 68,108
Amortization 1,135 1,372 4,659 5,517
-------- --------- -------- --------
EBITDA 8,776 7,911 237,889 215,884
Interest expense (17,927) (18,942) (74,094) (79,900)
Maintenance capital expenditures (6,667) (3,742) (23,631) (19,261)
Loss on extinguishment of debt - - 17,079 33,602
-------- --------- -------- --------
Distributable cash $(15,818) $ (14,773) $157,243 $150,325
======== ========= ======== ========
(d) The following table includes a reconciliation of forecasted net income to
forecasted EBITDA for the fiscal year ending September 30, 2007:
Forecast
Fiscal
Year
Ending
September 30,
2007
-------------
Net income (estimate) $123,000
Interest expense (estimate) 72,000
Depreciation (estimate) 70,000
Amortization (estimate) 4,000
Income tax expense (estimate) $ 1,000
--------
EBITDA (estimate) $270,000
========
</Table>