EXHIBIT 99
Contact: Robert W. Krick For Release: November 20, 2001
610-337-1000, Ext. 3141 Immediate
AmeriGas Partners Reports Record 2001 Results,
Growth Continues
VALLEY FORGE, Pa., November 20, 2001 - AmeriGas Propane, Inc., general partner
of AmeriGas Partners, L.P. (NYSE:APU), reported record net income for the
Partnership of $53,015,000, or $1.18 per limited partner unit for the fiscal
year ended September 30, 2001, excluding the beneficial cumulative effect of
accounting changes of $0.28 per limited partner unit previously disclosed. This
represents more than a three-fold increase compared to $15,196,000, or $0.36 per
limited partner unit for the fiscal year ended September 30, 2000. Earnings
before interest expense, income taxes, depreciation and amortization (EBITDA) of
$208,550,000 for fiscal 2001 were also a Partnership record, 32% higher than the
$157,588,000 recorded in fiscal 2000. Weather was slightly colder than normal in
fiscal 2001 compared to 14% warmer than normal in fiscal 2000 according to
information published by the National Oceanic and Atmospheric Administration.
Lon R. Greenberg, AmeriGas chairman, said, "These outstanding results are
directly attributable to not only the return of more normal winter weather, but
also the emphasis we placed on our core strategies over the past several years.
Our acquisition growth strategy continued during the year as well, culminating
in our acquisition of the Columbia Propane businesses in late August. Having
completed this acquisition, we are once again the largest retail propane
marketer in the United States."
Retail propane sales volumes in fiscal 2001 were 820.8 million gallons, up over
6% compared to 771.2 million gallons in the prior year. Higher operating
expenses for the year were related mainly to higher sales volumes, higher
vehicle and compensation expenses, internal growth initiatives and acquisitions.
Eugene V. N. Bissell, chief executive officer of AmeriGas, added, " We are
extremely pleased with our record-breaking performance despite unusually high
propane product costs and the slowing economy that combined to cause our
customers to reduce energy consumption. Our extensive logistical network,
favorable supply arrangements and effective margin management partially offset
the effect of price-induced conservation. I want to thank all of our employees
for their continuing commitment to customer service as they work to successfully
integrate the Columbia Propane operations."
Interest expense in fiscal 2001 increased over fiscal 2000 due to borrowings for
acquisitions and growth capital.
For the fourth quarter of fiscal 2001, EBITDA increased to $7,501,000 from
$6,075,000 in the prior-year quarter as higher total margin more than offset an
increase in operating expenses, resulting primarily from the previously
mentioned internal growth initiatives, acquisitions and vehicle and compensation
expense. Retail volumes sold in the quarter were 142.7 million gallons versus
135.3 million gallons in last year's fourth quarter. The Partnership recorded a
seasonal net loss of $33,536,000, or $0.73 per limited partner unit for the
quarter ended September 2001, compared with a net loss of $31,764,000 or $0.75
per limited partner unit for the year-earlier period.
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 53% of the Partnership and
individual unitholders own the remaining 47%.
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 2000 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 regional
economic conditions. 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
http://www.amerigas.com.
AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
Three Months Ended Twelve Months Ended
September 30, September 30,
--------------------------- ---------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Revenues:
Propane $ 185,407 $ 197,150 $ 1,322,934 $ 1,022,967
Other 23,873 23,312 95,430 97,089
------------ ------------ ------------ ------------
209,280 220,462 1,418,364 1,120,056
------------ ------------ ------------ ------------
Costs and expenses:
Cost of sales - propane (97,604) (125,146) (798,166) (586,905)
Cost of sales - other (9,667) (9,705) (37,809) (41,376)
Operating and administrative expenses (97,173) (83,317) (379,993) (342,720)
Other income, net 2,665 3,781 6,154 8,533
------------ ------------ ------------ ------------
EBITDA (a) 7,501 6,075 208,550 157,588
Depreciation (12,768) (11,026) (48,168) (41,451)
Amortization (6,757) (6,802) (26,592) (25,930)
------------ ------------ ------------ ------------
Operating income (loss) (12,024) (11,753) 133,790 90,207
Interest expense (21,233) (20,000) (80,396) (74,764)
------------ ------------ ------------ ------------
Income (loss) before income taxes (33,257) (31,753) 53,394 15,443
Income tax (expense) benefit (552) (308) 327 15
Minority interest 273 297 (706) (262)
------------ ------------ ------------ ------------
Income (loss) before accounting changes (33,536) (31,764) 53,015 15,196
Cumulative effect of accounting changes - - 12,494 -
------------ ------------ ------------ ------------
Net income (loss) $ (33,536) $ (31,764) $ 65,509 $ 15,196
============ ============ ============ ============
General partner's interest in
net income (loss) $ (335) $ (318) $ 655 $ 152
============ ============ ============ ============
Limited partners' interest in
net income (loss) $ (33,201) $ (31,446) $ 64,854 $ 15,044
============ ============ ============ ============
Net income (loss) per limited partner unit - basic and diluted:
Income (loss) before accounting changes $ (0.73) $ (0.75) $ 1.18 $ 0.36
Cumulative effect of accounting changes - - 0.28 -
------------ ------------ ------------ ------------
Net income (loss) $ (0.73) $ (0.75) $ 1.46 $ 0.36
============ ============ ============ ============
Average limited partner units
outstanding - basic and diluted 45,355 41,969 44,453 41,969
============ ============ ============ ============
SUPPLEMENTAL INFORMATION:
Retail gallons sold (millions) 142.7 135.3 820.8 771.2
Distributable cash flow:
EBITDA (a) $ 7,501 $ 6,075 $ 208,550 $ 157,588
Cash interest expense (b) (21,089) (20,383) (81,995) (76,734)
Maintenance capital expenditures (4,812) (3,534) (17,763) (11,560)
------------ ------------ ------------ ------------
Distributable cash flow (c) $ (18,400) $ (17,842) $ 108,792 $ 69,294
============ ============ ============ ============
(a) Earnings before interest expense, income taxes, depreciation and
amortization. EBITDA 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 generally accepted accounting principles but provides additional
information for evaluating the Partnership's ability to declare and pay the
Minimum Quarterly Distribution.
(b) Interest expense adjusted for noncash items.
(c) Distributable cash flow is not a measure of performance or financial
condition under generally accepted accounting principles.