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 February 1, 2016. |
UGI Utilities, Inc. | ||
February 2, 2016 | By: | /s/ Kirk R. Oliver |
Name: | Kirk R. Oliver | |
Title: | Vice President - Financial Strategy |
EXHIBIT NO. | DESCRIPTION |
99.1 | Press Release of UGI Corporation, the parent of UGI Utilities, Inc., dated February 1, 2016. |
Contact: | 610-337-1000 | For Immediate Release: | ||
Will Ruthrauff, ext. 6571 | February 1, 2016 | |||
Shelly Oates, ext. 3202 | ||||
• | Adjusted net income of $112.4 million or $0.64 per diluted share compared to $118.7 million or $0.68 per diluted share in the prior year, despite significantly warmer weather |
• | GAAP net income of $114.6 million or $0.65 per diluted share compared to $34.1 million or $0.19 per diluted share in the prior year |
• | Finagaz acquisition progressing as planned |
• | On January 19, 2016, UGI Gas filed its first rate case in 21 years |
UGI Reports Fiscal 2016 First Quarter Earnings | Page 2 |
For the fiscal quarter ended December 31, | 2015 | 2014 | (Decrease) | ||||||||||||
Revenues | $ | 644.1 | $ | 888.8 | $ | (244.7 | ) | (27.5 | )% | ||||||
Total margin (a) | $ | 400.9 | $ | 426.4 | $ | (25.5 | ) | (6.0 | )% | ||||||
Operating and administrative expenses | $ | 231.1 | $ | 247.4 | $ | (16.3 | ) | (6.6 | )% | ||||||
Partnership Adjusted EBITDA | $ | 177.7 | $ | 188.5 | $ | (10.8 | ) | (5.7 | )% | ||||||
Operating income | $ | 129.6 | $ | 139.7 | $ | (10.1 | ) | (7.2 | )% | ||||||
Retail gallons sold | 295.1 | 340.2 | (45.1 | ) | (13.3 | )% | |||||||||
Degree days - % (warmer) than normal | (19.9 | )% | (3.7 | )% | |||||||||||
Capital expenditures | $ | 28.0 | $ | 30.4 | $ | (2.4 | ) | (7.9 | )% |
• | Retail gallons sold decreased primarily due to temperatures that were nearly 20% warmer than normal and 16.8% warmer than the prior year. |
• | Revenues decreased primarily due to lower retail selling prices reflecting lower propane product costs; average daily wholesale prices at Mont Belvieu, Texas in the quarter were approximately 45% lower than the prior-year period. |
• | 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 | UGI, through subsidiaries, is the sole General Partner and owns 26% of AmeriGas Partners, L.P |
For the fiscal quarter ended December 31, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 578.2 | $ | 562.5 | $ | 15.7 | 2.8 | % | |||||||
Total margin (a) | $ | 275.4 | $ | 180.6 | $ | 94.8 | 52.5 | % | |||||||
Operating and administrative expenses | $ | 159.6 | $ | 111.2 | $ | 48.4 | 43.5 | % | |||||||
Operating income | $ | 85.1 | $ | 53.5 | $ | 31.6 | 59.1 | % | |||||||
Income before income taxes | $ | 78.5 | $ | 45.9 | $ | 32.6 | 71.0 | % | |||||||
Finagaz acquisition and transition expenses | $ | 2.3 | $ | 3.9 | $ | (1.6 | ) | (41.0 | )% | ||||||
Adjusted income before income taxes | $ | 80.8 | $ | 49.8 | $ | 31.0 | 62.2 | % | |||||||
Retail gallons sold | 259.1 | 179.8 | 79.3 | 44.1 | % | ||||||||||
Degree days - % (warmer) than normal | |||||||||||||||
UGI France | (22.3 | )% | (20.2 | )% | |||||||||||
Flaga | (14.4 | )% | (17.4 | )% | |||||||||||
Capital Expenditures | $ | 21.0 | $ | 18.5 | $ | 2.5 | 13.5 | % |
• | Results for the quarter include the impact of Finagaz, which was acquired on May 29, 2015. |
• | Total retail gallons sold were higher, principally reflecting the incremental retail gallons attributable to Finagaz. |
• | Revenues increased primarily reflecting $145 million of incremental revenue from Finagaz, substantially offset by lower LPG prices at each of our European businesses as well as the effects of a weaker Euro and British Pound Sterling. |
• | Total margin increased reflecting incremental margin from Finagaz and slightly higher unit margins, partially offset by a weaker Euro and British Pound Sterling. |
• | The increase in operating income primarily reflects the higher total margin, partially offset by increased operating, administrative, and depreciation expenses related to the Finagaz acquisition. |
UGI Reports Fiscal 2016 First Quarter Earnings | Page 3 |
For the fiscal quarter ended December 31, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 198.0 | $ | 287.3 | $ | (89.3 | ) | (31.1 | )% | ||||||
Total margin (a) | $ | 121.5 | $ | 142.8 | $ | (21.3 | ) | (14.9 | )% | ||||||
Operating and administrative expenses | $ | 50.2 | $ | 49.3 | $ | 0.9 | 1.8 | % | |||||||
Operating income | $ | 48.3 | $ | 75.6 | $ | (27.3 | ) | (36.1 | )% | ||||||
Income before income taxes | $ | 38.8 | $ | 65.0 | $ | (26.2 | ) | (40.3 | )% | ||||||
Gas Utility System throughput - billions of cubic feet | |||||||||||||||
Core market | 17.4 | 23.2 | (5.8 | ) | (25.0 | )% | |||||||||
Total | 49.9 | 56.8 | (6.9 | ) | (12.1 | )% | |||||||||
Gas Utility Degree days - % (warmer) than normal | (25.3 | )% | (3.1 | )% | |||||||||||
Capital expenditures | $ | 61.5 | $ | 55.0 | $ | 6.5 | 11.8 | % |
• | Our Gas Utility service territory experienced temperatures that were approximately 25% warmer than normal. |
• | System throughput in our Gas Utility decreased primarily reflecting temperatures that were 22.9% warmer than the prior-year period. |
• | Gas Utility revenues decreased $84.9 million, primarily reflecting lower core market throughput, and lower average PGC rates. |
• | Electric Utility revenues declined reflecting lower sales and default service rates. |
• | Total margin decreased primarily reflecting lower Gas Utility core market throughput. |
• | Operating income decreased reflecting lower total margin, higher depreciation expense, and lower other income including a non-recurring charge related to the settlement of litigation, and interest on PGC over-collections. |
For the fiscal quarter ended December 31, | 2015 | 2014 | Increase (Decrease) | ||||||||||||
Revenues | $ | 227.1 | $ | 326.3 | $ | (99.2 | ) | (30.4 | )% | ||||||
Total margin (a) | $ | 72.4 | $ | 78.0 | $ | (5.6 | ) | (7.2 | )% | ||||||
Operating and administrative expense | $ | 22.1 | $ | 25.8 | $ | (3.7 | ) | (14.3 | )% | ||||||
Operating income | $ | 42.9 | $ | 45.6 | $ | (2.7 | ) | (5.9 | )% | ||||||
Income before income taxes | $ | 42.1 | $ | 45.0 | $ | (2.9 | ) | (6.4 | )% | ||||||
Capital expenditures | $ | 22.4 | $ | 19.5 | $ | 2.9 | 14.9 | % |
• | Revenues decreased primarily reflecting lower natural gas revenues and, to a much lesser extent, lower capacity management and retail power revenues. These declines were partially offset by higher peaking and natural gas gathering revenue. |
• | The decrease in natural gas revenues reflects lower natural gas prices and lower volume, the lower retail power revenue reflects lower sales volume, and the decrease in capacity management revenue reflects lower average prices for capacity due to lower volatility in capacity values. |
• | Total margin decreased principally reflecting lower capacity management total margin, lower natural gas and retail power total margin, and slightly lower storage total margin, partially offset by higher combined natural gas gathering and peaking total margin. |
• | Operating and administrative expenses decreased primarily due to higher expenses in the prior year associated with planned outages at Hunlock Station and Conemaugh generating units. |
• | Operating income decreased primarily reflecting lower total margin partially offset by lower operating and administrative expenses. |
(a) | Total margin represents total revenues less total cost of sales. |
UGI Reports Fiscal 2016 First Quarter Earnings | Page 4 |
C-02 | ### | 2/1/16 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues: | ||||||||||||||||
AmeriGas Propane | $ | 644.1 | $ | 888.8 | $ | 2,640.6 | $ | 3,555.9 | ||||||||
UGI International | 578.2 | 562.5 | 1,824.2 | 2,166.3 | ||||||||||||
UGI Utilities | 198.0 | 287.3 | 952.3 | 1,075.3 | ||||||||||||
Midstream & Marketing | 227.1 | 326.3 | 1,070.4 | 1,465.6 | ||||||||||||
Corporate & Other (a) | (40.8 | ) | (60.3 | ) | (194.4 | ) | (297.1 | ) | ||||||||
Total revenues | $ | 1,606.6 | $ | 2,004.6 | $ | 6,293.1 | $ | 7,966.0 | ||||||||
Operating income (loss): | ||||||||||||||||
AmeriGas Propane | $ | 129.6 | $ | 139.7 | $ | 417.5 | $ | 432.0 | ||||||||
UGI International | 85.1 | 53.5 | 144.4 | 114.1 | ||||||||||||
UGI Utilities | 48.3 | 75.6 | 214.4 | 236.2 | ||||||||||||
Midstream & Marketing | 42.9 | 45.6 | 179.9 | 206.4 | ||||||||||||
Corporate & Other (a) | (0.4 | ) | (231.1 | ) | 100.9 | (263.5 | ) | |||||||||
Total operating income | 305.5 | 83.3 | 1,057.1 | 725.2 | ||||||||||||
Loss from equity investees | (0.1 | ) | (1.0 | ) | (0.3 | ) | (1.1 | ) | ||||||||
Interest expense: | ||||||||||||||||
AmeriGas Propane | (41.0 | ) | (41.0 | ) | (162.8 | ) | (165.0 | ) | ||||||||
UGI International (b) | (6.5 | ) | (6.6 | ) | (35.1 | ) | (28.9 | ) | ||||||||
UGI Utilities | (9.5 | ) | (10.6 | ) | (40.0 | ) | (40.3 | ) | ||||||||
Midstream & Marketing | (0.8 | ) | (0.6 | ) | (2.7 | ) | (2.9 | ) | ||||||||
Corporate & Other, net (a) | (0.1 | ) | (0.2 | ) | (0.2 | ) | (0.3 | ) | ||||||||
Total interest expense | (57.9 | ) | (59.0 | ) | (240.8 | ) | (237.4 | ) | ||||||||
Income before income taxes | 247.5 | 23.3 | 816.0 | 486.7 | ||||||||||||
Income tax expense | (79.6 | ) | (23.1 | ) | (234.3 | ) | (171.4 | ) | ||||||||
Net income including noncontrolling interests | 167.9 | 0.2 | 581.7 | 315.3 | ||||||||||||
(Deduct net income) add net loss attributable to noncontrolling interests, principally in AmeriGas Partners, L.P. | (53.3 | ) | 33.9 | (220.2 | ) | (66.0 | ) | |||||||||
Net income attributable to UGI Corporation | $ | 114.6 | $ | 34.1 | $ | 361.5 | $ | 249.3 | ||||||||
Earnings per share attributable to UGI shareholders: | ||||||||||||||||
Basic | $ | 0.66 | $ | 0.20 | $ | 2.09 | $ | 1.44 | ||||||||
Diluted | $ | 0.65 | $ | 0.19 | $ | 2.06 | $ | 1.42 | ||||||||
Weighted Average common shares outstanding (thousands): | ||||||||||||||||
Basic | 172,862 | 172,945 | 173,101 | 172,912 | ||||||||||||
Diluted | 175,218 | 175,786 | 173,553 | 175,668 | ||||||||||||
Supplemental information: | ||||||||||||||||
Net income attributable to UGI Corporation: | ||||||||||||||||
AmeriGas Propane | $ | 18.6 | $ | 18.9 | $ | 60.7 | $ | 56.4 | ||||||||
UGI International | 46.4 | 32.2 | 66.9 | 53.1 | ||||||||||||
UGI Utilities | 23.4 | 38.8 | 105.7 | 117.6 | ||||||||||||
Midstream & Marketing | 24.6 | 26.3 | 105.6 | 120.9 | ||||||||||||
Corporate & Other (a) | 1.6 | (82.1 | ) | 22.6 | (98.7 | ) | ||||||||||
Total net income attributable to UGI Corporation | $ | 114.6 | $ | 34.1 | $ | 361.5 | $ | 249.3 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Adjusted net income attributable to UGI Corporation: | ||||||||||||||||||
Net income attributable to UGI Corporation | $ | 114.6 | $ | 34.1 | $ | 361.5 | $ | 249.3 | ||||||||||
Net after-tax (gains) losses on commodity derivative instruments not associated with current period transactions | (3.6 | ) | 81.9 | (32.2 | ) | 92.7 | ||||||||||||
Net after-tax acquisition and integration expenses associated with Finagaz | 1.4 | 2.7 | 13.6 | 6.9 | ||||||||||||||
After-tax loss on Antargaz extinguishment of debt | 0.0 | 0.0 | 4.6 | 0.0 | ||||||||||||||
Adjusted net income attributable to UGI Corporation | $ | 112.4 | $ | 118.7 | $ | 347.5 | $ | 348.9 | ||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Adjusted diluted earnings per share: | ||||||||||||||||||
UGI Corporation earnings per share - diluted | $ | 0.65 | $ | 0.19 | $ | 2.06 | $ | 1.42 | ||||||||||
Net after-tax (gains) losses on commodity derivative instruments not associated with current period transactions (1) | (0.02 | ) | 0.47 | (0.19 | ) | 0.53 | ||||||||||||
Net after-tax acquisition and integration expenses associated with Finagaz | 0.01 | 0.02 | 0.08 | 0.04 | ||||||||||||||
After-tax loss on Antargaz extinguishment of debt | 0.00 | 0.00 | 0.03 | 0.00 | ||||||||||||||
Adjusted diluted earnings per share | $ | 0.64 | $ | 0.68 | $ | 1.98 | $ | 1.99 | ||||||||||
(1) Includes impact of rounding. |