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EX-99.1 - EXHIBIT 99.1 - AMERIGAS PARTNERS LP | ex991jun17.htm |
8-K - 8-K - AMERIGAS PARTNERS LP | apujun2017er.htm |
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Fiscal 2017
Third Quarter Results
Jerry Sheridan
President & CEO
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About This Presentation
AmeriGas Partners | Fiscal 2017 Third Quarter Results
This presentation contains certain forward-looking statements that 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
AmeriGas’s Annual Report on Form 10-K for a more extensive list of factors that could affect results.
Among them are adverse weather conditions, cost volatility and availability of propane, increased
customer conservation measures, the impact of pending and future legal proceedings, liability for
uninsured claims and for claims in excess of insurance coverage, political, regulatory and economic
conditions in the United States and in foreign countries, the availability, timing and success of our
acquisitions, commercial initiatives and investments to grow our business, our ability to successfully
integrate acquired businesses and achieve anticipated synergies, and the interruption, disruption, failure,
malfunction, or breach of our information technology systems, including due to cyber-attack. AmeriGas
undertakes no obligation to release revisions to its forward-looking statements to reflect events or
circumstances occurring after today. In addition, this presentation uses certain non-GAAP financial
measures. Please see the appendix for reconciliations of these measures to the most comparable GAAP
financial measure.
A
me
riGa
s
Third Quarter Recap
Jerry Sheridan
President & CEO, AmeriGas
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• The quarter ended 12% warmer than normal
and 5% warmer than last year
• April was 17% warmer than normal and 11%
warmer than April of last year
• Volume down 4% on 5% warmer weather
• Average propane costs were 28% higher than
Q3 2016
• Unit margins up $0.01 despite increased
propane costs
• Opex included $13 million of unusual charges.
Exclusive of these, opex declined from last
year.
• Fiscal year end EBITDA guidance expected to
remain in the range of $550 million
Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation.
Q3 Earnings Recap
$64.6
$58.4
FY16 - Q3 FY17 - Q3
Adjusted EBITDA
($ in millions)
AmeriGas Partners | Fiscal 2017 Third Quarter Results
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Growth Initiatives/Other
Cylinder Exchange
• Volume up versus prior year
• Strong Fourth of July weekend that will contribute to
Q4 results
National Accounts
• Increased volume versus prior year
• On pace for record volume and earnings in FY 2017
Acquisitions
• Completed 3 acquisitions QTD (5 YTD)
Liquidity / Capitalization
• Long-term debt refinancing is complete
• Available revolver capacity is ~$380 million
AmeriGas Partners | Fiscal 2017 Third Quarter Results
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APPENDIX
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• The enclosed supplemental information contains a reconciliation of earnings before interest expense, income taxes,
depreciation and amortization ("EBITDA") and Adjusted EBITDA to Net Income.
• EBITDA and Adjusted EBITDA are not measures of performance or financial condition under accounting principles
generally accepted in the United States ("GAAP"). Management believes EBITDA and Adjusted EBITDA are meaningful
non-GAAP financial measures used by investors to compare the Partnership's operating performance with that of other
companies within the propane industry. The Partnership's definitions of EBITDA and Adjusted EBITDA may be different
from those used by other companies.
• EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss) attributable to AmeriGas
Partners, L.P. Management uses EBITDA to compare year-over-year profitability of the business without regard to capital
structure as well as to compare the relative performance of the Partnership to that of other master limited partnerships
without regard to their financing methods, capital structure, income taxes or historical cost basis. Management uses
Adjusted EBITDA to exclude from AmeriGas Partners’ EBITDA gains and losses that competitors do not necessarily have to
provide additional insight into the comparison of year-over-year profitability to that of other master limited partnerships.
In view of the omission of interest, income taxes, depreciation and amortization, gains and losses on commodity
derivative instruments not associated with current-period transactions, and other gains and losses that competitors do
not necessarily have from Adjusted EBITDA, management also assesses the profitability of the business by comparing net
income attributable to AmeriGas Partners, L.P. for the relevant periods. Management also uses Adjusted EBITDA to
assess the Partnership's profitability because its parent, UGI Corporation, uses the Partnership's Adjusted EBITDA to
assess the profitability of the Partnership, which is one of UGI Corporation’s business segments. UGI Corporation
discloses the Partnership's Adjusted EBITDA as the profitability measure for its domestic propane segment.
AmeriGas Supplemental Footnotes
AmeriGas Partners | Fiscal 2017 Third Quarter Results
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AmeriGas EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA: (numbers in millions) 2016 2017
Net loss attributable to AmeriGas Partners, L.P. (33.1)$ (46.8)$
Income tax expense 1.0 0.6
Interest expense 40.8 40.6
Depreciation 35.7 35.5
Amortization 10.7 10.7
EBITDA 55.1 40.6
(Subtract net gains) add net losses on commodity derivative instruments not
associated with current-period transactions
(27.8) 6.0
Loss on extinguishments of debt 37.1 4.4
MGP environmental accrual - 7.5
Noncontrolling interest in net gains (losses) on commodity derivative instruments not
associated with current-period transactions and MGP environmental accrual
0.2 (0.1)
Adjusted EBITDA 64.6$ 58.4$
Forecast Fiscal
Year Ending
(numbers in thousands)
September 30,
2017
Adjusted EBITDA (estimate) $ 550,000
Interest expense (estimate) 160,000
Income tax expense (estimate) 2,000
Depreciation (estimate) 138,000
Amortization (estimate) 42,000
Three Months Ended June 30,
AmeriGas Partners | Fiscal 2017 Third Quarter Results
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Investor Relations:
Will Ruthrauff
610-456-6571
ruthrauffw@ugicorp.com