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 May 2, 2016. |
UGI Utilities, Inc. | ||
May 3, 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 May 2, 2016. |
Contact: | 610-337-1000 | For Immediate Release: | ||
Will Ruthrauff, ext. 6571 | May 2, 2016 | |||
Shelly Oates, ext. 3202 | ||||
• | Adjusted net income of $216.2 million or $1.24 per diluted share compared to $220.8 million or $1.26 per diluted share in the prior year, despite significantly warmer weather |
• | GAAP net income of $233.2 million or $1.33 per diluted share compared to $246.5 million or $1.40 per diluted share in the prior year |
• | Finagaz integration and UGI Gas rate case progressing as planned |
UGI Reports Fiscal 2016 Second Quarter Earnings | Page 2 |
For the fiscal quarter ended March 31, | 2016 | 2015 | Increase (Decrease) | ||||||||||||
Revenues | $ | 827.5 | $ | 1,100.3 | $ | (272.8 | ) | (24.8 | )% | ||||||
Total margin (a) | $ | 529.3 | $ | 595.1 | $ | (65.8 | ) | (11.1 | )% | ||||||
Operating and administrative expenses | $ | 238.5 | $ | 257.4 | $ | (18.9 | ) | (7.3 | )% | ||||||
Partnership Adjusted EBITDA | $ | 295.4 | $ | 342.1 | $ | (46.7 | ) | (13.7 | )% | ||||||
Operating income | $ | 250.4 | $ | 296.9 | $ | (46.5 | ) | (15.7 | )% | ||||||
Retail gallons sold | 385.8 | 448.0 | (62.2 | ) | (13.9 | )% | |||||||||
Degree days - % (warmer) colder than normal | (11.7 | )% | 2.0 | % | |||||||||||
Capital expenditures | $ | 27.8 | $ | 26.8 | $ | 1.0 | 3.7 | % |
• | Retail gallons sold decreased primarily due to temperatures that were 11.7% warmer than normal and 13.3% warmer than the prior year. |
• | Revenues decreased primarily due to the decrease in volumes and lower retail selling prices reflecting lower propane product costs; average daily wholesale prices at Mont Belvieu, Texas were approximately 27% lower than the prior-year period. |
• | Total margin decreased as the lower retail volumes were partially offset by slightly 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 March 31, | 2016 | 2015 | Increase | ||||||||||||
Revenues | $ | 578.7 | $ | 520.1 | $ | 58.6 | 11.3 | % | |||||||
Total margin (a) | $ | 307.7 | $ | 196.5 | $ | 111.2 | 56.6 | % | |||||||
Operating and administrative expenses | $ | 166.4 | $ | 114.9 | $ | 51.5 | 44.8 | % | |||||||
Operating income | $ | 111.5 | $ | 64.7 | $ | 46.8 | 72.3 | % | |||||||
Income before income taxes | $ | 105.0 | $ | 58.8 | $ | 46.2 | 78.6 | % | |||||||
Finagaz acquisition and transition expenses | $ | 8.6 | $ | 7.5 | $ | 1.1 | 14.7 | % | |||||||
Adjusted income before income taxes | $ | 113.6 | $ | 66.3 | $ | 47.3 | 71.3 | % | |||||||
Retail gallons sold | 240.5 | 190.4 | 50.1 | 26.3 | % | ||||||||||
Degree days - % (warmer) than normal | |||||||||||||||
UGI France | (7.2 | )% | (0.6 | )% | |||||||||||
Flaga | (9.9 | )% | (10.9 | )% | |||||||||||
Capital Expenditures | $ | 22.3 | $ | 15.0 | $ | 7.3 | 48.7 | % |
• | Results for the current quarter include the impact of Finagaz, which was acquired on May 29, 2015. |
• | Total retail gallons sold were higher, principally reflecting incremental retail gallons attributable to Finagaz. |
• | Total margin increased primarily reflecting incremental margin from Finagaz and higher unit margins in our legacy business. |
• | 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 Second Quarter Earnings | Page 3 |
For the fiscal quarter ended March 31, | 2016 | 2015 | Increase (Decrease) | ||||||||||||
Revenues | $ | 322.0 | $ | 500.6 | $ | (178.6 | ) | (35.7 | )% | ||||||
Total margin (a) | $ | 183.2 | $ | 220.6 | $ | (37.4 | ) | (17.0 | )% | ||||||
Operating and administrative expenses | $ | 48.9 | $ | 63.1 | $ | (14.2 | ) | (22.5 | )% | ||||||
Operating income | $ | 114.5 | $ | 142.7 | $ | (28.2 | ) | (19.8 | )% | ||||||
Income before income taxes | $ | 105.2 | $ | 132.0 | $ | (26.8 | ) | (20.3 | )% | ||||||
Gas Utility System throughput - billions of cubic feet | |||||||||||||||
Core market | 34.0 | 44.3 | (10.3 | ) | (23.3 | )% | |||||||||
Total | 72.1 | 81.0 | (8.9 | ) | (11.0 | )% | |||||||||
Gas Utility Degree days - % (warmer) than normal | (9.7 | )% | 20.4 | % | |||||||||||
Capital expenditures | $ | 48.1 | $ | 41.3 | $ | 6.8 | 16.5 | % |
• | Our Gas Utility service territory experienced temperatures that were approximately 10% warmer than normal and 24% warmer than the prior year. |
• | Core market throughput decreased primarily reflecting the effects of the significantly warmer weather. |
• | Total margin decreased primarily reflecting the lower Gas Utility core market throughput. |
• | Operating income decreased reflecting lower total margin, higher depreciation expense, and lower other income, partially offset by a decrease in operating and administrative expenses. |
For the fiscal quarter ended March 31, | 2016 | 2015 | Increase (Decrease) | ||||||||||||
Revenues | $ | 299.0 | $ | 445.4 | $ | (146.4 | ) | (32.9 | )% | ||||||
Total margin (a) | $ | 109.1 | $ | 134.0 | $ | (24.9 | ) | (18.6 | )% | ||||||
Operating and administrative expenses | $ | 23.6 | $ | 27.8 | $ | (4.2 | ) | (15.1 | )% | ||||||
Operating income | $ | 77.8 | $ | 99.1 | $ | (21.3 | ) | (21.5 | )% | ||||||
Income before income taxes | $ | 77.3 | $ | 98.6 | $ | (21.3 | ) | (21.6 | )% | ||||||
Capital expenditures | $ | 16.3 | $ | 8.3 | $ | 8.0 | 96.4 | % |
• | Weather was approximately 25% warmer than the prior year and 12% warmer than normal. |
• | Revenues decreased primarily reflecting lower natural gas revenues and, to a much lesser extent, lower capacity management, retail power, and electric generation 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, to a much lesser extent, lower volume on warmer weather. |
• | Total margin decreased principally reflecting lower capacity management, natural gas and retail power, and electric generation total margin, partially offset by higher natural gas gathering and peaking total margin. |
• | Operating and administrative expenses were lower primarily reflecting lower operating expenses associated with our HVAC business. |
• | Operating income decreased primarily reflecting lower total margin partially offset by lower operating and administrative expenses. |
(a) | Total margin represents total revenue less total cost of sales and excludes pre-tax gains on commodity derivative instruments not associated with the current period. In the case of UGI Utilities, total margin is also reduced by revenue-related taxes. |
UGI Reports Fiscal 2016 Second Quarter Earnings | Page 4 |
C-05 | ### | 5/2/16 |
Three Months Ended March 31, | Six Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
AmeriGas Propane | $ | 827.5 | $ | 1,100.3 | $ | 1,471.6 | $ | 1,989.1 | $ | 2,367.8 | $ | 3,162.5 | ||||||||||||
UGI International | 578.7 | 520.1 | 1,156.9 | 1,082.6 | 1,882.8 | 1,997.2 | ||||||||||||||||||
UGI Utilities | 322.0 | 500.6 | 520.0 | 787.9 | 773.7 | 1,061.9 | ||||||||||||||||||
Midstream & Marketing | 299.0 | 445.4 | 526.1 | 771.7 | 924.0 | 1,288.0 | ||||||||||||||||||
Corporate & Other (a) | (55.1 | ) | (110.8 | ) | (95.9 | ) | (171.1 | ) | (138.7 | ) | (251.3 | ) | ||||||||||||
Total revenues | $ | 1,972.1 | $ | 2,455.6 | $ | 3,578.7 | $ | 4,460.2 | $ | 5,809.6 | $ | 7,258.3 | ||||||||||||
Operating income (loss): | ||||||||||||||||||||||||
AmeriGas Propane | $ | 250.4 | $ | 296.9 | $ | 380.0 | $ | 436.6 | $ | 371.0 | $ | 444.1 | ||||||||||||
UGI International | 111.5 | 64.7 | 196.6 | 118.2 | 191.2 | 115.0 | ||||||||||||||||||
UGI Utilities | 114.5 | 142.7 | 162.8 | 218.3 | 186.2 | 240.9 | ||||||||||||||||||
Midstream & Marketing | 77.8 | 99.1 | 120.7 | 144.7 | 158.5 | 186.6 | ||||||||||||||||||
Corporate & Other (a) | 61.2 | 98.7 | 60.8 | (132.4 | ) | 63.5 | (147.9 | ) | ||||||||||||||||
Total operating income | 615.4 | 702.1 | 920.9 | 785.4 | 970.4 | 838.7 | ||||||||||||||||||
Loss from equity investees | — | (0.1 | ) | (0.1 | ) | (1.1 | ) | (0.2 | ) | (1.2 | ) | |||||||||||||
Interest expense: | ||||||||||||||||||||||||
AmeriGas Propane | (40.8 | ) | (41.1 | ) | (81.8 | ) | (82.1 | ) | (162.5 | ) | (164.1 | ) | ||||||||||||
UGI International (b) | (6.5 | ) | (5.8 | ) | (13.0 | ) | (12.4 | ) | (35.8 | ) | (27.2 | ) | ||||||||||||
UGI Utilities | (9.3 | ) | (10.7 | ) | (18.8 | ) | (21.3 | ) | (38.6 | ) | (42.2 | ) | ||||||||||||
Midstream & Marketing | (0.5 | ) | (0.5 | ) | (1.3 | ) | (1.1 | ) | (2.7 | ) | (2.3 | ) | ||||||||||||
Corporate & Other, net (a) | (0.2 | ) | (0.1 | ) | (0.3 | ) | (0.3 | ) | (0.3 | ) | (0.3 | ) | ||||||||||||
Total interest expense | (57.3 | ) | (58.2 | ) | (115.2 | ) | (117.2 | ) | (239.9 | ) | (236.1 | ) | ||||||||||||
Income before income taxes | 558.1 | 643.8 | 805.6 | 667.1 | 730.3 | 601.4 | ||||||||||||||||||
Income tax expense | (150.1 | ) | (161.6 | ) | (229.7 | ) | (184.7 | ) | (222.8 | ) | (191.7 | ) | ||||||||||||
Net income including noncontrolling interests | 408.0 | 482.2 | 575.9 | 482.4 | 507.5 | 409.7 | ||||||||||||||||||
Deduct net income attributable to noncontrolling interests, principally in AmeriGas Partners, L.P. | (174.8 | ) | (235.7 | ) | (228.1 | ) | (201.8 | ) | (159.3 | ) | (128.3 | ) | ||||||||||||
Net income attributable to UGI Corporation | $ | 233.2 | $ | 246.5 | $ | 347.8 | $ | 280.6 | $ | 348.2 | $ | 281.4 | ||||||||||||
Earnings per share attributable to UGI shareholders: | ||||||||||||||||||||||||
Basic | $ | 1.35 | $ | 1.42 | $ | 2.01 | $ | 1.62 | $ | 2.01 | $ | 1.63 | ||||||||||||
Diluted | $ | 1.33 | $ | 1.40 | $ | 1.99 | $ | 1.60 | $ | 1.99 | $ | 1.60 | ||||||||||||
Weighted Average common shares outstanding (thousands): | ||||||||||||||||||||||||
Basic | 172,619 | 173,154 | 172,733 | 173,055 | 172,979 | 173,018 | ||||||||||||||||||
Diluted | 174,845 | 175,628 | 174,953 | 175,715 | 175,247 | 175,714 | ||||||||||||||||||
Supplemental information: | ||||||||||||||||||||||||
Net income (loss) attributable to UGI Corporation: | ||||||||||||||||||||||||
AmeriGas Propane | $ | 39.3 | $ | 45.5 | $ | 57.9 | $ | 64.4 | $ | 54.5 | $ | 59.2 | ||||||||||||
UGI International | 66.7 | 37.5 | 113.1 | 69.7 | 96.1 | 51.8 | ||||||||||||||||||
UGI Utilities | 63.2 | 79.6 | 86.6 | 118.4 | 89.3 | 121.1 | ||||||||||||||||||
Midstream & Marketing | 45.8 | 58.5 | 70.4 | 84.8 | 92.9 | 109.1 | ||||||||||||||||||
Corporate & Other (a) | 18.2 | 25.4 | 19.8 | (56.7 | ) | 15.4 | (59.8 | ) | ||||||||||||||||
Total net income attributable to UGI Corporation | $ | 233.2 | $ | 246.5 | $ | 347.8 | $ | 280.6 | $ | 348.2 | $ | 281.4 |
Three Months Ended March 31, | Six Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||
Adjusted net income attributable to UGI Corporation: | ||||||||||||||||||||||||||
Net income attributable to UGI Corporation | $ | 233.2 | $ | 246.5 | $ | 347.8 | $ | 280.6 | $ | 348.2 | $ | 281.4 | ||||||||||||||
Net after-tax (gains) losses on commodity derivative instruments not associated with current period transactions (1) | (22.4 | ) | (30.8 | ) | (26.0 | ) | 51.1 | (23.8 | ) | 54.2 | ||||||||||||||||
Net after-tax acquisition and integration expenses associated with Finagaz | 5.4 | 5.1 | 6.8 | 7.8 | 13.9 | 12.1 | ||||||||||||||||||||
After-tax loss on Antargaz extinguishment of debt | 0.0 | 0.0 | 0.0 | 0.0 | 4.6 | 0.0 | ||||||||||||||||||||
Adjusted net income attributable to UGI Corporation | $ | 216.2 | $ | 220.8 | $ | 328.6 | $ | 339.5 | $ | 342.9 | $ | 347.7 | ||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||
Adjusted diluted earnings per share: | ||||||||||||||||||||||||||
UGI Corporation earnings per share - diluted | $ | 1.33 | $ | 1.40 | $ | 1.99 | $ | 1.60 | $ | 1.99 | $ | 1.60 | ||||||||||||||
Net after-tax (gains) losses on commodity derivative instruments not associated with current period transactions (1) | (0.12 | ) | (0.17 | ) | (0.15 | ) | 0.29 | (0.14 | ) | 0.31 | ||||||||||||||||
Net after-tax acquisition and integration expenses associated with Finagaz | 0.03 | 0.03 | 0.04 | 0.04 | 0.08 | 0.07 | ||||||||||||||||||||
After-tax loss on Antargaz extinguishment of debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | ||||||||||||||||||||
Adjusted diluted earnings per share | $ | 1.24 | $ | 1.26 | $ | 1.88 | $ | 1.93 | $ | 1.96 | $ | 1.98 | ||||||||||||||
(1) Includes impact of rounding. |