Pennsylvania | 1-1398 | 23-1174060 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
2525 N. 12th Street, Suite 360 P.O. Box 12677 Reading, PA | 19612 | |
(Address of principal executive offices) | (Zip Code) |
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¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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99.1 | Press Release of UGI Corporation, the parent of UGI Utilities, Inc., dated February 4, 2015. |
UGI Utilities, Inc. | ||
February 5, 2015 | By: | /s/ Daniel J. Platt |
Name: | Daniel J. Platt | |
Title: | Assistant Treasurer |
EXHIBIT NO. | DESCRIPTION |
99.1 | Press Release of UGI Corporation, the parent of UGI Utilities, Inc., dated February 4, 2015. |
Contact: | 610-337-1000 | For Immediate Release: | ||
William Ruthrauff, ext. 6571 | February 4, 2015 | |||
Shelly Oates, ext. 3202 | ||||
UGI Reports Strong Fiscal First Quarter Earnings | Page 2 |
For the fiscal quarter ended December 31, | 2014 | 2013 | Increase (Decrease) | ||||||||||||
Revenues | $ | 888.8 | $ | 1,045.8 | $ | (157.0 | ) | (15.0 | )% | ||||||
Total margin (b) | $ | 426.4 | $ | 463.1 | $ | (36.7 | ) | (7.9 | )% | ||||||
Operating and administrative expenses | $ | 247.4 | $ | 237.6 | $ | 9.8 | 4.1 | % | |||||||
Partnership Adjusted EBITDA | $ | 188.5 | $ | 230.2 | $ | (41.7 | ) | (18.1 | )% | ||||||
Operating income | $ | 139.7 | $ | 179.7 | $ | (40.0 | ) | (22.3 | )% | ||||||
Retail gallons sold | 340.2 | 374.1 | (33.9 | ) | (9.1 | )% | |||||||||
Degree days - % (warmer) colder than normal | (6.2 | )% | 3.8 | % | |||||||||||
Capital expenditures | $ | 30.4 | $ | 23.3 | $ | 7.1 | 30.5 | % |
• | The decrease in revenues primarily reflects lower volumes sold, and lower average retail selling prices, which are principally the result of lower propane product costs. |
• | Average daily wholesale propane commodity prices at Mont Belvieu, Texas, during the quarter were approximately 36% lower than the prior-year period. |
• | The decrease in total margin reflects lower retail propane total margin and, to a lesser extent, lower margin from wholesale sales and ancillary sales and services. |
• | The decrease in Partnership Adjusted EBITDA primarily reflects the lower retail propane total margin and slightly higher operating and administrative expenses partially offset by higher other income. |
• | The decline in retail gallons sold principally reflects average temperatures, based upon heating degree days, which were 9.6% warmer than the prior year average temperatures. |
For the fiscal quarter ended December 31, | 2014 | 2013 | Increase (Decrease) | ||||||||||||
Revenues | $ | 562.5 | $ | 718.6 | $ | (156.1 | ) | (21.7 | )% | ||||||
Total margin (b) | $ | 180.6 | $ | 204.4 | $ | (23.8 | ) | (11.6 | )% | ||||||
Operating and administrative expenses | $ | 111.2 | $ | 126.6 | $ | (15.4 | ) | (12.2 | )% | ||||||
Operating income | $ | 53.5 | $ | 56.9 | $ | (3.4 | ) | (6.0 | )% | ||||||
Income before income taxes | $ | 45.9 | $ | 49.2 | $ | (3.3 | ) | (6.7 | )% | ||||||
Retail gallons sold | 179.8 | 194.3 | (14.5 | ) | (7.5 | )% | |||||||||
Degree days - % (warmer) colder than normal: | |||||||||||||||
Antargaz | (20.2 | )% | (7.2 | )% | |||||||||||
Flaga | (17.4 | )% | (12.9 | )% | |||||||||||
Capital expenditures | $ | 18.5 | $ | 14.4 | $ | 4.1 | 28.5 | % |
• | Total retail gallons sold were lower principally reflecting the effects of warmer weather on heating-related sales. |
• | Revenues decreased due in large part to lower average LPG selling prices at each of our European businesses, which was driven by significantly lower commodity LPG prices. |
• | Total margin decreased due to the effect of a weaker Euro and, to a lesser extent, the British Pound Sterling. In local currency, LPG total margin was down only slightly, despite the challenges posed by warmer weather, due to effective unit margin management. |
• | Operating income, in local currency, was slightly higher due to effective expense management; on an as reported basis, operating income decreased primarily due to the effects of the weaker Euro and British Pound Sterling. |
UGI Reports Strong Fiscal First Quarter Earnings | Page 3 |
For the fiscal quarter ended December 31, | 2014 | 2013 | Increase (Decrease) | ||||||||||||
Revenues | $ | 260.5 | $ | 271.6 | $ | (11.1 | ) | (4.1 | )% | ||||||
Total margin (b) | $ | 133.3 | $ | 136.1 | $ | (2.8 | ) | (2.1 | )% | ||||||
Operating and administrative expenses | $ | 45.0 | $ | 38.6 | $ | 6.4 | 16.6 | % | |||||||
Operating income | $ | 71.8 | $ | 82.1 | $ | (10.3 | ) | (12.5 | )% | ||||||
Income before income taxes | $ | 61.7 | $ | 73.7 | $ | (12.0 | ) | (16.3 | )% | ||||||
System throughput - billions of cubic feet (“bcf”) | |||||||||||||||
Core market | 23.2 | 24.1 | (0.9 | ) | (3.7 | )% | |||||||||
Total | 56.8 | 56.7 | 0.1 | 0.2 | % | ||||||||||
Degree days - % (warmer) colder than normal | (3.9 | )% | 3.0 | % | |||||||||||
Capital expenditures | $ | 53.5 | $ | 32.9 | $ | 20.6 | 62.6 | % |
• | Temperatures in the Gas Utility service territory were 6.8% warmer than the prior-year period. |
• | System throughput to core market customers was slightly lower than the prior-year period due to warmer weather while total system throughput was approximately equal to the prior year. |
• | Revenues decreased primarily due to lower core market throughput and slightly lower average purchased gas cost rates. |
• | Total margin decreased slightly reflecting lower core market total margin due to warmer weather partially offset by customer growth. |
• | The decrease in operating income primarily reflects the decrease in total margin and higher operating and administrative expenses that included higher distribution system maintenance, employee benefit, and information technology expenses. |
For the fiscal quarter ended December 31, | 2014 | 2013 | Increase (Decrease) | ||||||||||||
Revenues | $ | 309.2 | $ | 289.0 | $ | 20.2 | 7.0 | % | |||||||
Total margin (b) | $ | 71.1 | $ | 55.8 | $ | 15.3 | 27.4 | % | |||||||
Operating and administrative expense | $ | 19.3 | $ | 14.2 | $ | 5.1 | 35.9 | % | |||||||
Operating income | $ | 45.5 | $ | 36.2 | $ | 9.3 | 25.7 | % | |||||||
Income before income taxes | $ | 44.9 | $ | 35.2 | $ | 9.7 | 27.6 | % | |||||||
Capital expenditures | $ | 19.4 | $ | 31.0 | $ | (11.6 | ) | (37.4 | )% |
• | The increase in revenues reflects higher natural gas revenues and higher capacity management revenues partially offset by lower retail power and Electric Generation revenues. |
• | Total margin increased reflecting higher capacity management and peaking service total margin and, to a lesser extent, higher natural gas gathering and natural gas storage total margin. |
• | The greater capacity management revenues primarily reflect higher locational basis differentials and greater volatility in capacity values between Marcellus and non-Marcellus distribution points. |
• | Operating income increased primarily reflecting the increase in total margin partially offset by increases in operating and administrative expenses including expenses associated with planned outages at the Hunlock and Conemaugh stations and our expanded midstream assets. |
(a) | Net gains and losses on commodity derivative instruments not associated with current-period transactions are excluded from our reportable segment results because UGI’s chief operating decision maker does not consider such items when evaluating the financial performance of UGI’s reportable segments. Such gains or losses are included in Corporate & Other. |
(b) | Total margin represents total revenues less total cost of sales. |
UGI Reports Strong Fiscal First Quarter Earnings | Page 4 |
C-02 | ### | 2/4/15 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
AmeriGas Propane | $ | 888.8 | $ | 1,045.8 | $ | 3,555.9 | $ | 3,342.7 | ||||||||
UGI International | 562.5 | 718.6 | 2,166.3 | 2,232.9 | ||||||||||||
Gas Utility | 260.5 | 271.6 | 966.2 | 862.3 | ||||||||||||
Midstream & Marketing | 309.2 | 289.0 | 1,389.0 | 1,084.7 | ||||||||||||
Corporate & Other (a) | (16.4 | ) | (9.1 | ) | (111.4 | ) | (30.7 | ) | ||||||||
Total revenues | $ | 2,004.6 | $ | 2,315.9 | $ | 7,966.0 | $ | 7,491.9 | ||||||||
Operating income (loss): | ||||||||||||||||
AmeriGas Propane | $ | 139.7 | $ | 179.7 | $ | 432.0 | $ | 436.8 | ||||||||
UGI International | 53.5 | 56.9 | 114.1 | 146.1 | ||||||||||||
Gas Utility | 71.8 | 82.1 | 225.9 | 208.8 | ||||||||||||
Midstream & Marketing | 45.5 | 36.2 | 207.9 | 100.3 | ||||||||||||
Corporate & Other (a) | (227.2 | ) | 8.8 | (254.7 | ) | 8.6 | ||||||||||
Total operating income | 83.3 | 363.7 | 725.2 | 900.6 | ||||||||||||
Loss from equity investees | (1.0 | ) | 0.0 | (1.1 | ) | (0.4 | ) | |||||||||
Interest expense: | ||||||||||||||||
AmeriGas Propane | (41.0 | ) | (41.6 | ) | (165.0 | ) | (165.8 | ) | ||||||||
UGI International | (6.6 | ) | (7.7 | ) | (28.9 | ) | (30.4 | ) | ||||||||
Gas Utility | (10.1 | ) | (8.4 | ) | (38.3 | ) | (36.2 | ) | ||||||||
Midstream & Marketing | (0.6 | ) | (1.0 | ) | (2.5 | ) | (3.2 | ) | ||||||||
Corporate & Other, net (a) | (0.7 | ) | (0.6 | ) | (2.7 | ) | (2.5 | ) | ||||||||
Total interest expense | (59.0 | ) | (59.3 | ) | (237.4 | ) | (238.1 | ) | ||||||||
Income before income taxes | 23.3 | 304.4 | 486.7 | 662.1 | ||||||||||||
Income tax expense | (23.1 | ) | (86.9 | ) | (171.4 | ) | (184.8 | ) | ||||||||
Net income | 0.2 | 217.5 | 315.3 | 477.3 | ||||||||||||
Add net loss (deduct net income) attributable to noncontrolling interests, principally in AmeriGas Partners, L.P. | 33.9 | (95.5 | ) | (66.0 | ) | (179.7 | ) | |||||||||
Net income attributable to UGI Corporation | $ | 34.1 | $ | 122.0 | $ | 249.3 | $ | 297.6 | ||||||||
Earnings per share attributable to UGI shareholders: | ||||||||||||||||
Basic | $ | 0.20 | $ | 0.71 | $ | 1.44 | $ | 1.73 | ||||||||
Diluted | $ | 0.19 | $ | 0.70 | $ | 1.42 | $ | 1.71 | ||||||||
Average common shares outstanding (thousands): | ||||||||||||||||
Basic | 172,945 | 172,238 | 172,912 | 171,528 | ||||||||||||
Diluted | 175,786 | 174,705 | 175,668 | 174,065 | ||||||||||||
Supplemental information: | ||||||||||||||||
Net income (loss) attributable to UGI Corporation: | ||||||||||||||||
AmeriGas Propane | $ | 18.9 | $ | 25.5 | $ | 56.4 | $ | 55.4 | ||||||||
UGI International | 32.2 | 27.4 | 53.1 | 74.6 | ||||||||||||
Gas Utility | 36.9 | 43.4 | 112.3 | 102.2 | ||||||||||||
Midstream & Marketing | 26.3 | 22.0 | 122.1 | 59.5 | ||||||||||||
Corporate & Other (a) | (80.2 | ) | 3.7 | (94.6 | ) | 5.9 | ||||||||||
Total net income attributable to UGI Corporation | $ | 34.1 | $ | 122.0 | $ | 249.3 | $ | 297.6 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Adjusted net income attributable to UGI Corporation: | ||||||||||||||||||
Net income attributable to UGI Corporation | $ | 34.1 | $ | 122.0 | $ | 249.3 | $ | 297.6 | ||||||||||
Net after-tax losses (gains) on commodity derivative instruments not associated with current period transactions (1) | 81.9 | (4.2 | ) | 92.7 | (7.2 | ) | ||||||||||||
Retroactive impact of change in French tax law | 0.0 | 5.7 | 0.0 | 5.7 | ||||||||||||||
Adjusted net income attributable to UGI Corporation | $ | 116.0 | $ | 123.5 | $ | 342.0 | $ | 296.1 | ||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Adjusted diluted earnings per share: | ||||||||||||||||||
UGI Corporation earnings per share - diluted | $ | 0.19 | $ | 0.70 | $ | 1.42 | $ | 1.71 | ||||||||||
Net after-tax losses (gains) on commodity derivative instruments not associated with current period transactions | 0.47 | (0.02 | ) | 0.53 | (0.04 | ) | ||||||||||||
Retroactive impact of change in French tax law | 0.00 | 0.03 | 0.00 | 0.03 | ||||||||||||||
Adjusted diluted earnings per share | $ | 0.66 | $ | 0.71 | $ | 1.95 | $ | 1.70 | ||||||||||
(1) Income taxes associated with pre-tax adjustments determined based on using business unit statutory tax rates. |