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) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release of UGI Corporation, the parent of UGI Utilities, Inc., dated August 3, 2015. |
UGI Utilities, Inc. | ||
August 4, 2015 | By: | /s/ Daniel J. Platt |
Name: | Daniel J. Platt | |
Title: | Treasurer |
EXHIBIT NO. | DESCRIPTION |
99.1 | Press Release of UGI Corporation, the parent of UGI Utilities, Inc., dated August 3, 2015. |
Contact: | 610-337-1000 | For Immediate Release: | ||
William Ruthrauff, ext. 6571 | August 3, 2015 | |||
Shelly Oates, ext. 3202 | ||||
UGI Reports Third Quarter Earnings | Page 2 |
For the fiscal quarter ended June 30, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 478.0 | $ | 613.2 | $ | (135.2 | ) | (22.0 | )% | ||||||
Total margin (b) | $ | 266.6 | $ | 272.4 | $ | (5.8 | ) | (2.1 | )% | ||||||
Operating and administrative expenses | $ | 223.3 | $ | 225.1 | $ | (1.8 | ) | (0.8 | )% | ||||||
Partnership Adjusted EBITDA | $ | 48.9 | $ | 55.1 | $ | (6.2 | ) | (11.3 | )% | ||||||
Operating income | $ | 0.8 | $ | 7.2 | $ | (6.4 | ) | (88.9 | )% | ||||||
Retail gallons sold | 202.2 | 215.6 | (13.4 | ) | (6.2 | )% | |||||||||
Degree days - % (warmer) than normal | (18.5 | )% | (9.3 | )% | |||||||||||
Capital expenditures | $ | 20.7 | $ | 29.3 | $ | (8.6 | ) | (29.4 | )% |
• | Retail gallons sold decreased 6.2% primarily due to weather that was 10.2% warmer than the prior year. |
• | Average daily wholesale propane commodity prices at Mont Belvieu, Texas, during the quarter were approximately 55% lower than the prior-year period. |
• | Retail revenues decreased $130.1 million primarily due to lower propane costs, and, to a lesser extent, the impact of lower volumes. |
• | Total margin decreased primarily due to lower volumes sold, partially offset by slightly higher average retail propane unit margin. |
• | The Partnership’s adjusted EBITDA decreased primarily due to lower volume given warmer weather versus the prior year. |
For the fiscal quarter ended June 30, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 346.8 | $ | 481.5 | $ | (134.7 | ) | (28.0 | )% | ||||||
Total margin (b) | $ | 137.1 | $ | 136.7 | $ | 0.4 | 0.3 | % | |||||||
Operating and administrative expenses | $ | 117.0 | $ | 112.5 | $ | 4.5 | 4.0 | % | |||||||
Operating (loss) income | $ | (0.3 | ) | $ | 6.8 | $ | (7.1 | ) | (104.4 | )% | |||||
Loss before income taxes | $ | (16.9 | ) | $ | (1.0 | ) | $ | (15.9 | ) | NM | |||||
Retail gallons sold | 151.5 | 130.2 | 21.3 | 16.4 | % | ||||||||||
Degree days - % (warmer) than normal | |||||||||||||||
Antargaz | (23.7 | )% | (19.8 | )% | |||||||||||
Flaga | (2.0 | )% | (15.5 | )% | |||||||||||
Capital Expenditures | $ | 20.5 | $ | 20.4 | $ | 0.1 | 0.5 | % |
• | Total retail gallons sold were 21.3 million higher, principally reflecting 12.5 million incremental gallons associated with the Totalgaz acquisition. |
• | Revenues decreased primarily due to the impact of a weaker Euro and British Pound Sterling along with average lower selling prices due to a decline in LPG prices. |
• | Total margin increased over the prior year as higher local currency gross margin was largely offset by the impact of a weaker Euro and British Pound Sterling. |
• | The increase in loss before income taxes includes a $10.3 million loss from early extinguishment of debt at Antargaz. |
• | Operating and administrative expenses were higher than the prior year primarily due to the effects of the Totalgaz acquisition, including incremental acquisition and transition-related expenses ($5.0 million). |
• | Operating income decreased reflecting the slightly higher total margin offset by the effects of the Totalgaz acquisition. |
UGI Reports Third Quarter Earnings | Page 3 |
For the fiscal quarter ended June 30, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 119.4 | $ | 128.3 | $ | (8.9 | ) | (6.9 | )% | ||||||
Total margin (b) | $ | 78.1 | $ | 79.1 | $ | (1.0 | ) | (1.3 | )% | ||||||
Operating and administrative expenses | $ | 48.6 | $ | 47.0 | $ | 1.6 | 3.4 | % | |||||||
Operating income | $ | 15.1 | $ | 17.1 | $ | (2.0 | ) | (11.7 | )% | ||||||
Income before income taxes | $ | 5.6 | $ | 7.3 | $ | (1.7 | ) | (23.3 | )% | ||||||
System throughput - billions of cubic feet (“bcf”) | |||||||||||||||
Core market | 8.9 | 9.2 | (0.3 | ) | (3.3 | )% | |||||||||
Total | 38.6 | 37.5 | 1.1 | 2.9 | % | ||||||||||
Degree days - % (warmer) than normal | (22.2 | )% | (6.3 | )% | |||||||||||
Capital expenditures | $ | 41.3 | $ | 35.9 | $ | 5.4 | 15.0 | % |
• | Temperatures in the Gas Utility service territory were 17.0% warmer than the prior-year period and 22.2% warmer than normal. |
• | System throughput to core market customers was 3.3% lower than the prior-year period reflecting the warmer weather partially offset by a 1.7% increase in core market customers. |
• | Revenues decreased 6.9% primarily due to lower revenue from core market customers. |
• | Total margin decreased 1.3% reflecting lower margin from interruptible delivery service customers and the effect of lower core market throughput. |
• | Operating expenses increased primarily due to higher system maintenance and general and administrative expenses. |
• | The decrease in operating income principally reflects the decrease in total margin, higher depreciation expense, and slightly higher operating and administrative expenses offset in part by higher other income. |
For the fiscal quarter ended June 30, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 183.3 | $ | 265.7 | $ | (82.4 | ) | (31.0 | )% | ||||||
Total margin (b) | $ | 42.3 | $ | 49.1 | $ | (6.8 | ) | (13.8 | )% | ||||||
Operating and administrative expense | $ | 17.0 | $ | 16.9 | $ | 0.1 | 0.6 | % | |||||||
Operating income | $ | 18.6 | $ | 26.1 | $ | (7.5 | ) | (28.7 | )% | ||||||
Income before income taxes | $ | 18.1 | $ | 25.6 | $ | (7.5 | ) | (29.3 | )% | ||||||
Capital expenditures | $ | 28.6 | $ | 13.1 | $ | 15.5 | 118.3 | % |
• | Revenues were $82.4 million lower than the prior year primarily due to lower wholesale and retail natural gas prices, lower retail power volumes, and lower average prices for capacity management. |
• | Total margin decreased primarily reflecting lower capacity management total margin due to lower volatility between Marcellus and non-Marcellus delivery points. |
• | Operating and administrative expenses were approximately flat, as higher employee-related and depreciation expenses were offset by lower business development and uncollectible account expenses. |
• | Operating income and income before income taxes decreased in line with the decrease in total margin. |
(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 Third Quarter Earnings | Page 4 |
C-11 | ### | 8/3/15 |
Three Months Ended June 30, | Nine Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
AmeriGas Propane | $ | 478.0 | $ | 613.2 | $ | 2,467.1 | $ | 3,152.7 | $ | 3,027.3 | $ | 3,684.6 | ||||||||||||
UGI International | 346.8 | 481.5 | 1,429.4 | 1,889.3 | 1,862.5 | 2,288.3 | ||||||||||||||||||
Gas Utility | 119.4 | 128.3 | 847.9 | 880.0 | 945.2 | 975.4 | ||||||||||||||||||
Midstream & Marketing | 183.3 | 265.7 | 923.3 | 1,160.3 | 1,131.8 | 1,387.0 | ||||||||||||||||||
Corporate & Other (a) | 20.6 | (2.0 | ) | (59.4 | ) | (116.4 | ) | (47.1 | ) | (110.4 | ) | |||||||||||||
Total revenues | $ | 1,148.1 | $ | 1,486.7 | $ | 5,608.3 | $ | 6,965.9 | $ | 6,919.7 | $ | 8,224.9 | ||||||||||||
Operating income (loss): | ||||||||||||||||||||||||
AmeriGas Propane | $ | 0.8 | $ | 7.2 | $ | 437.4 | $ | 471.7 | $ | 437.7 | $ | 458.6 | ||||||||||||
UGI International | (0.3 | ) | 6.8 | 117.9 | 127.5 | 107.9 | 114.0 | |||||||||||||||||
Gas Utility | 15.1 | 17.1 | 226.2 | 233.7 | 228.7 | 240.5 | ||||||||||||||||||
Midstream & Marketing | 18.6 | 26.1 | 166.0 | 183.7 | 180.9 | 195.8 | ||||||||||||||||||
Corporate & Other (a) | 21.9 | 5.5 | (106.0 | ) | (1.6 | ) | (123.1 | ) | (6.2 | ) | ||||||||||||||
Total operating income | 56.1 | 62.7 | 841.5 | 1,015.0 | 832.1 | 1,002.7 | ||||||||||||||||||
Loss from equity investees | — | (0.1 | ) | (1.1 | ) | (0.1 | ) | (1.1 | ) | (0.6 | ) | |||||||||||||
Interest expense: | ||||||||||||||||||||||||
AmeriGas Propane | (40.3 | ) | (41.4 | ) | (122.4 | ) | (125.0 | ) | (163.0 | ) | (166.2 | ) | ||||||||||||
UGI International (b) | (16.6 | ) | (7.7 | ) | (29.0 | ) | (22.9 | ) | (36.1 | ) | (30.5 | ) | ||||||||||||
Gas Utility | (9.5 | ) | (9.8 | ) | (29.7 | ) | (26.6 | ) | (39.7 | ) | (35.9 | ) | ||||||||||||
Midstream & Marketing | (0.5 | ) | (0.5 | ) | (1.6 | ) | (2.5 | ) | (2.0 | ) | (3.3 | ) | ||||||||||||
Corporate & Other, net (a) | (0.6 | ) | (0.7 | ) | (2.0 | ) | (1.9 | ) | (2.7 | ) | (2.5 | ) | ||||||||||||
Total interest expense | (67.5 | ) | (60.1 | ) | (184.7 | ) | (178.9 | ) | (243.5 | ) | (238.4 | ) | ||||||||||||
(Loss) income before income taxes | (11.4 | ) | 2.5 | 655.7 | 836.0 | 587.5 | 763.7 | |||||||||||||||||
Income tax expense | (4.5 | ) | (15.2 | ) | (189.2 | ) | (243.4 | ) | (181.0 | ) | (230.2 | ) | ||||||||||||
Net (loss) income | (15.9 | ) | (12.7 | ) | 466.5 | 592.6 | 406.5 | 533.5 | ||||||||||||||||
Add net loss (deduct net income) attributable to noncontrolling interests, principally in AmeriGas Partners, L.P. | 25.5 | 33.3 | (176.3 | ) | (235.6 | ) | (136.1 | ) | (190.7 | ) | ||||||||||||||
Net income attributable to UGI Corporation | $ | 9.6 | $ | 20.6 | $ | 290.2 | $ | 357.0 | $ | 270.4 | $ | 342.8 | ||||||||||||
Earnings per share attributable to UGI shareholders: | ||||||||||||||||||||||||
Basic | $ | 0.06 | $ | 0.12 | $ | 1.68 | $ | 2.07 | $ | 1.56 | $ | 1.99 | ||||||||||||
Diluted | $ | 0.05 | $ | 0.12 | $ | 1.65 | $ | 2.04 | $ | 1.54 | $ | 1.96 | ||||||||||||
Average common shares outstanding (thousands): | ||||||||||||||||||||||||
Basic | 173,136 | 173,055 | 173,060 | 172,682 | 173,012 | 172,484 | ||||||||||||||||||
Diluted | 175,580 | 175,572 | 175,665 | 175,097 | 175,693 | 175,013 | ||||||||||||||||||
Supplemental information: | ||||||||||||||||||||||||
Net income (loss) attributable to UGI Corporation: | ||||||||||||||||||||||||
AmeriGas Propane | $ | (2.4 | ) | $ | (1.8 | ) | $ | 62.0 | $ | 66.4 | $ | 58.6 | $ | 60.7 | ||||||||||
UGI International | (9.9 | ) | 0.4 | 59.8 | 66.6 | 41.5 | 52.0 | |||||||||||||||||
Gas Utility | 4.5 | 5.7 | 119.4 | 123.5 | 114.7 | 122.7 | ||||||||||||||||||
Midstream & Marketing | 11.0 | 14.1 | 97.6 | 107.9 | 107.5 | 114.8 | ||||||||||||||||||
Corporate & Other (a) | 6.4 | 2.2 | (48.6 | ) | (7.4 | ) | (51.9 | ) | (7.4 | ) | ||||||||||||||
Total net income attributable to UGI Corporation | $ | 9.6 | $ | 20.6 | $ | 290.2 | $ | 357.0 | $ | 270.4 | $ | 342.8 |
Three Months Ended June 30, | Nine Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Adjusted net income attributable to UGI Corporation: | ||||||||||||||||||||||||||
Net income attributable to UGI Corporation | $ | 9.6 | $ | 20.6 | $ | 290.2 | $ | 357.0 | $ | 270.4 | $ | 342.8 | ||||||||||||||
Net after-tax (gains) losses on commodity derivative instruments not associated with current period transactions (1) | (4.9 | ) | (3.5 | ) | 46.2 | — | 52.8 | 0.4 | ||||||||||||||||||
Retroactive impact of change in French tax law | — | — | — | 5.7 | — | 5.7 | ||||||||||||||||||||
Adjusted net income attributable to UGI Corporation | $ | 4.7 | $ | 17.1 | $ | 336.4 | $ | 362.7 | $ | 323.2 | $ | 348.9 | ||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Adjusted diluted earnings per share: | ||||||||||||||||||||||||||
UGI Corporation earnings per share - diluted | $ | 0.05 | $ | 0.12 | $ | 1.65 | $ | 2.04 | $ | 1.54 | $ | 1.96 | ||||||||||||||
Net after-tax (gains) losses on commodity derivative instruments not associated with current period transactions (1) (2) | (0.02 | ) | (0.02 | ) | 0.27 | — | 0.30 | — | ||||||||||||||||||
Retroactive impact of change in French tax law | — | — | — | 0.03 | — | 0.03 | ||||||||||||||||||||
Adjusted diluted earnings per share | $ | 0.03 | $ | 0.10 | $ | 1.92 | $ | 2.07 | $ | 1.84 | $ | 1.99 | ||||||||||||||
(1) Income taxes associated with pre-tax adjustments determined based on using business unit statutory tax rates. | ||||||||||||||||||||||||||
(2) Includes impact of rounding. |