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 November 9, 2015. |
UGI Utilities, Inc. | ||
November 10, 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 November 9, 2015. |
Contact: | 610-337-1000 | For Immediate Release: | ||
Will Ruthrauff, ext. 6571 | November 9, 2015 | |||
Shelly Oates, ext. 3202 | ||||
• | Adjusted net income of $353.8 million matches record level of prior year |
• | FY 2016 Adjusted EPS Guidance of $2.15- $2.30 represents a three year CAGR of 11% at the midpoint |
• | Several key growth projects delivered in FY15 and major new pipeline and LNG projects announced |
UGI Reports Strong Fiscal Year 2015 Results and Issues Fiscal Year 2016 Guidance | Page 2 |
For the fiscal year ended September 30, | 2015 | 2014 | (Decrease) | ||||||||||||
Revenues | $ | 2,885.3 | $ | 3,712.9 | $ | (827.6 | ) | (22.3 | )% | ||||||
Total margin (a) | $ | 1,545.3 | $ | 1,605.8 | $ | (60.5 | ) | (3.8 | )% | ||||||
Operating and administrative expenses | $ | 954.1 | $ | 964.1 | $ | (10.0 | ) | (1.0 | )% | ||||||
Partnership Adjusted EBITDA | $ | 619.2 | $ | 664.8 | $ | (45.6 | ) | (6.9 | )% | ||||||
Operating income | $ | 427.6 | $ | 472.0 | $ | (44.4 | ) | (9.4 | )% | ||||||
Retail gallons sold | 1,184.3 | 1,275.6 | (91.3 | ) | (7.2 | )% | |||||||||
Degree days - % (warmer) colder than normal | (5.8 | )% | 3.4 | % | |||||||||||
Capital expenditures | $ | 102.0 | $ | 113.9 | $ | (11.9 | ) | (10.4 | )% |
• | Retail gallons sold decreased primarily due to temperatures that were 8.9% warmer than the prior year. |
• | Revenues decreased primarily due to lower propane costs and the lower volume; average daily wholesale prices at Mont Belvieu, Texas in fiscal 2015 were approximately 50% lower than fiscal 2014. |
• | Total margin decreased as the lower retail volumes were partially offset by higher retail unit margins. |
• | The decrease in Partnership Adjusted EBITDA primarily reflects the lower total margin partially offset by lower operating and administrative expenses. |
1 | Reflects 100% of amounts for AmeriGas; 26% of AmeriGas’s operating income is attributable to UGI. |
For the fiscal year ended September 30, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 1,808.5 | $ | 2,322.4 | $ | (513.9 | ) | (22.1 | )% | ||||||
Total margin (a) | $ | 688.5 | $ | 664.4 | $ | 24.1 | 3.6 | % | |||||||
Operating and administrative expenses | $ | 493.7 | $ | 470.2 | $ | 23.5 | 5.0 | % | |||||||
Operating income | $ | 112.8 | $ | 117.5 | $ | (4.7 | ) | (4.0 | )% | ||||||
Income before income taxes | $ | 76.4 | $ | 87.4 | $ | (11.0 | ) | (12.6 | )% | ||||||
Finagaz acquisition and transition expenses | $ | 22.6 | $ | 6.5 | $ | 16.1 | 247.7 | % | |||||||
Loss on debt extinguishment | $ | 10.3 | $ | — | $ | 10.3 | NM | ||||||||
Adjusted income before income taxes | $ | 109.3 | $ | 93.9 | $ | 15.4 | 16.4 | % | |||||||
Retail gallons sold | 697.0 | 631.1 | 65.9 | 10.4 | % | ||||||||||
Degree days - % (warmer) than normal | |||||||||||||||
Antargaz | (11.0 | )% | (14.1 | )% | |||||||||||
Flaga | (12.6 | )% | (15.7 | )% | |||||||||||
Capital Expenditures | $ | 87.5 | $ | 73.2 | $ | 14.3 | 19.5 | % |
• | Results include the impact of Finagaz, subsequent to its acquisition on May 29, 2015. |
• | Total retail gallons sold were higher principally reflecting the incremental retail gallons attributable to Finagaz. |
• | Revenues decreased primarily reflecting the combined impact on revenues of a weaker Euro and, to a lesser extent, the British Pound Sterling and the effect of lower LPG prices. |
• | Total margin increased as incremental margin from Finagaz, and slightly higher local currency total margin at AvantiGas and Antargaz were offset by the translation effects of the weaker Euro and British Pound. |
• | The decrease in operating income primarily reflects the higher total margin offset by increased operating, administrative, acquisition, transition and depreciation expenses related to the Finagaz acquisition. |
UGI Reports Strong Fiscal Year 2015 Results and Issues Fiscal Year 2016 Guidance | Page 3 |
For the fiscal year ended September 30, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 933.1 | $ | 977.3 | $ | (44.2 | ) | (4.5 | )% | ||||||
Total margin (a) | $ | 484.5 | $ | 480.5 | $ | 4.0 | 0.8 | % | |||||||
Operating and administrative expenses | $ | 196.9 | $ | 183.8 | $ | 13.1 | 7.1 | % | |||||||
Operating income | $ | 226.5 | $ | 236.2 | $ | (9.7 | ) | (4.1 | )% | ||||||
Income before income taxes | $ | 187.4 | $ | 199.6 | $ | (12.2 | ) | (6.1 | )% | ||||||
System throughput - billions of cubic feet (“bcf”) | |||||||||||||||
Core market | 81.3 | 80.4 | 0.9 | 1.1 | % | ||||||||||
Total | 213.5 | 208.8 | 4.7 | 2.3 | % | ||||||||||
Degree days - % colder than normal | 5.9 | % | 10.0 | % | |||||||||||
Capital expenditures | $ | 189.7 | $ | 156.4 | $ | 33.3 | 21.3 | % |
• | Temperatures in the Gas Utility service territory were 5.9% colder than normal but 3.7% warmer than the prior year. |
• | Despite the warmer weather, system throughput increased due to higher large customer delivery service volumes and core market customer growth. |
• | Revenues decreased reflecting lower revenue from off-system sales and the effects of lower gas recovery rates in fiscal 2015 partially offset by higher throughput. |
• | Total margin increased primarily due to higher core-market sales and higher large firm delivery service total margin. |
• | Operating and administrative expenses increased primarily due to higher distribution system and employee benefit expenses; depreciation expense increased primarily reflecting distribution system capital expenditures. |
• | Operating income decreased reflecting the slightly higher total margin more than offset by the higher operating, administrative, and depreciation expenses. |
For the fiscal year ended September 30, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 1,104.6 | $ | 1,368.9 | $ | (264.3 | ) | (19.3 | )% | ||||||
Total margin (a) | $ | 284.6 | $ | 292.2 | $ | (7.6 | ) | (2.6 | )% | ||||||
Operating and administrative expense | $ | 73.0 | $ | 70.6 | $ | 2.4 | 3.4 | % | |||||||
Operating income | $ | 184.8 | $ | 198.6 | $ | (13.8 | ) | (6.9 | )% | ||||||
Income before income taxes | $ | 182.7 | $ | 195.7 | $ | (13.0 | ) | (6.6 | )% | ||||||
Capital expenditures | $ | 88.2 | $ | 83.4 | $ | 4.8 | 5.8 | % |
• | Revenues decreased primarily reflecting lower natural gas prices in fiscal 2015. |
• | Total margin decreased reflecting lower natural gas marketing total margin due to lower average unit margins, and a decline in peaking total margin, reflecting lower natural gas prices in fiscal 2015, partially offset by: |
• | Higher retail power total margin, reflecting higher unit margins, and higher natural gas gathering total margin, reflecting the expansion of our natural gas gathering system in the Marcellus region of Pennsylvania. |
• | Operating income decreased primarily reflecting the lower total margin, slightly higher operating and administrative expenses, and higher incremental depreciation principally associated with storage and natural gas gathering assets and the Conemaugh generating unit. |
(a) | Total margin represents total revenues less total cost of sales. |
UGI Reports Strong Fiscal Year 2015 Results and Issues Fiscal Year 2016 Guidance | Page 4 |
C-14 | ### | 11/9/15 |
Three Months Ended September 30, | Twelve Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues: | ||||||||||||||||
AmeriGas Propane | $ | 418.2 | $ | 560.2 | $ | 2,885.3 | $ | 3,712.9 | ||||||||
UGI International | 379.1 | 433.1 | 1,808.5 | 2,322.4 | ||||||||||||
Gas Utility | 85.2 | 97.3 | 933.1 | 977.3 | ||||||||||||
Midstream & Marketing | 181.4 | 208.5 | 1,104.7 | 1,368.8 | ||||||||||||
Corporate & Other (a) | 18.9 | 12.3 | (40.5 | ) | (104.1 | ) | ||||||||||
Total revenues | $ | 1,082.8 | $ | 1,311.4 | $ | 6,691.1 | $ | 8,277.3 | ||||||||
Operating income (loss): | ||||||||||||||||
AmeriGas Propane | $ | (9.8 | ) | $ | 0.3 | $ | 427.6 | $ | 472.0 | |||||||
UGI International | (5.1 | ) | (10.0 | ) | 112.8 | 117.5 | ||||||||||
Gas Utility | 0.3 | 2.5 | 226.5 | 236.2 | ||||||||||||
Midstream & Marketing | 18.8 | 14.9 | 184.8 | 198.6 | ||||||||||||
Corporate & Other (a) | (10.8 | ) | (17.1 | ) | (116.8 | ) | (18.7 | ) | ||||||||
Total operating (loss) income | (6.6 | ) | (9.4 | ) | 834.9 | 1,005.6 | ||||||||||
Loss from equity investees | (0.1 | ) | 0.0 | (1.2 | ) | (0.1 | ) | |||||||||
Interest expense: | ||||||||||||||||
AmeriGas Propane | (40.4 | ) | (40.6 | ) | (162.8 | ) | (165.6 | ) | ||||||||
UGI International (b) | (6.2 | ) | (7.1 | ) | (35.2 | ) | (30.0 | ) | ||||||||
Gas Utility | (9.4 | ) | (10.0 | ) | (39.1 | ) | (36.6 | ) | ||||||||
Midstream & Marketing | (0.5 | ) | (0.4 | ) | (2.1 | ) | (2.9 | ) | ||||||||
Corporate & Other, net (a) | (0.7 | ) | (0.7 | ) | (2.7 | ) | (2.6 | ) | ||||||||
Total interest expense | (57.2 | ) | (58.8 | ) | (241.9 | ) | (237.7 | ) | ||||||||
(Loss) income before income taxes | (63.9 | ) | (68.2 | ) | 591.8 | 767.8 | ||||||||||
Income tax expense | 11.4 | 8.2 | (177.8 | ) | (235.2 | ) | ||||||||||
Net (loss) income including noncontrolling interests | (52.5 | ) | (60.0 | ) | 414.0 | 532.6 | ||||||||||
Add net loss (deduct net income) attributable to noncontrolling interests, principally in AmeriGas Partners, L.P. | 43.3 | 40.2 | (133.0 | ) | (195.4 | ) | ||||||||||
Net (loss) income attributable to UGI Corporation | $ | (9.2 | ) | $ | (19.8 | ) | $ | 281.0 | $ | 337.2 | ||||||
Earnings (loss) per share attributable to UGI shareholders: | ||||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.11 | ) | $ | 1.62 | $ | 1.95 | ||||||
Diluted | $ | (0.05 | ) | $ | (0.11 | ) | $ | 1.60 | $ | 1.92 | ||||||
Weighted Average common shares outstanding (thousands): | ||||||||||||||||
Basic | 173,265 | 172,882 | 173,115 | 172,733 | ||||||||||||
Diluted | 173,265 | 172,882 | 175,667 | 175,231 | ||||||||||||
Supplemental information: | ||||||||||||||||
Net income (loss) attributable to UGI Corporation: | ||||||||||||||||
AmeriGas Propane | $ | (1.0 | ) | $ | (3.4 | ) | $ | 61.0 | $ | 63.0 | ||||||
UGI International | (7.1 | ) | (18.3 | ) | 52.7 | 48.3 | ||||||||||
Gas Utility | (3.6 | ) | (4.7 | ) | 115.8 | 118.8 | ||||||||||
Midstream & Marketing | 11.3 | 9.9 | 108.9 | 117.8 | ||||||||||||
Corporate & Other (a) | (8.8 | ) | (3.3 | ) | (57.4 | ) | (10.7 | ) | ||||||||
Total net (loss) income attributable to UGI Corporation | $ | (9.2 | ) | $ | (19.8 | ) | $ | 281.0 | $ | 337.2 |
Three Months Ended September 30, | Twelve Months Ended September 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Adjusted net income attributable to UGI: | ||||||||||||||||||
Net (loss) income attributable to UGI Corporation | $ | (9.2 | ) | $ | (19.8 | ) | $ | 281.0 | $ | 337.2 | ||||||||
Net after-tax losses on commodity derivative instruments not associated with current period transactions | 7.1 | 6.6 | 53.3 | 6.6 | ||||||||||||||
Net after-tax acquisition and integration expenses associated with Finagaz | 4.0 | 4.3 | 14.9 | 4.3 | ||||||||||||||
Loss on Antargaz extinguishment of debt | 0.0 | 0.0 | 4.6 | 0.0 | ||||||||||||||
Retroactive impact of change in French tax law | 0.0 | 0.0 | 0.0 | 5.7 | ||||||||||||||
Adjusted net income attributable to UGI Corporation | $ | 1.9 | $ | (8.9 | ) | $ | 353.8 | $ | 353.8 | |||||||||
Three Months Ended September 30, | Twelve Months Ended September 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Adjusted diluted earnings per share: | ||||||||||||||||||
UGI Corporation (loss) earnings per share - diluted | $ | (0.05 | ) | $ | (0.11 | ) | $ | 1.60 | $ | 1.92 | ||||||||
Net after-tax losses on commodity derivative instruments not associated with current period transactions (1) | 0.04 | 0.04 | 0.30 | 0.04 | ||||||||||||||
Net after-tax acquisition and integration expenses associated with Finagaz | 0.02 | 0.02 | 0.08 | 0.03 | ||||||||||||||
Loss on Antargaz extinguishment of debt | 0.00 | 0.00 | 0.03 | 0.00 | ||||||||||||||
Retroactive impact of change in French tax law | 0.00 | 0.00 | 0.00 | 0.03 | ||||||||||||||
Adjusted diluted earnings per share | $ | 0.01 | $ | (0.05 | ) | $ | 2.01 | $ | 2.02 | |||||||||
(1) Includes impact of rounding. |