AmeriGas Partners Reports Fiscal 2012 Results

  AmeriGas Partners Reports Fiscal 2012 Results

Business Wire

VALLEY FORGE, Pa. -- November 08, 2012

AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:
APU), reported net income attributable to AmeriGas Partners for the fiscal
year ended September 30, 2012 of $11.0 million, compared to net income of
$138.5 million for the fiscal year ended September 30, 2011. Net income
attributable to AmeriGas Partners for fiscal 2012 includes the impact of a
previously reported $13.3 million loss on extinguishments of debt and $46.2
million in acquisition and transition expenses associated with the acquisition
of Heritage Propane. Net income attributable to AmeriGas Partners for fiscal
2011 includes the effects of a $38.1 million loss related to extinguishments
of debt.

The Partnership’s adjusted earnings before interest expense, income taxes, and
depreciation and amortization (Adjusted EBITDA) was $384.3 million for fiscal
2012 compared with $335.3 million in fiscal 2011. Adjusted EBITDA for fiscal
2012 excludes the impact of the loss on extinguishments of debt and
acquisition and transition expenses. Adjusted EBITDA for fiscal 2011 excludes
the impact of the loss on extinguishments of debt.

Jerry E. Sheridan, chief executive officer of AmeriGas, said, “I am pleased to
report results in line with the guidance we issued in March. Although fiscal
2012 will certainly be remembered for its record breaking warmth, we will also
look back on it as a year of significant accomplishment, as we completed the
largest acquisition in the company’s history and made significant progress
integrating two businesses into a new AmeriGas. With our management team and
structure now in place and the return of more normal seasonal weather during
October, we are hitting the ground running in the new fiscal year. Assuming
normal weather patterns continue into the heating season, we are confident in
our Adjusted EBITDA guidance of $630 million to $660 million in fiscal 2013
and we look forward to demonstrating the benefits of the acquisition
throughout this year.”

For the fiscal year ended September 30, 2012, retail volumes sold increased to
1,017.5 million gallons from 874.2 million gallons in the prior-year period.
The increased volume was due to the mid-January acquisition of Heritage
Propane partially offset by the impact of significantly warmer than normal
temperatures experienced nationwide during the fiscal 2012 heating season. The
quarter ended March 31, which is the peak quarter for heating-related sales,
was the warmest on record in the continental United States at nearly 22%
warmer than normal.

Weather nationally during fiscal 2012 was 18.6% warmer than normal and 18.3%
warmer than the prior year, according to the National Oceanic and Atmospheric
Administration. Revenues increased to $2.92 billion versus $2.54 billion a
year ago reflecting higher retail volumes sold. Total margin increased $269.2
million from the prior year primarily reflecting incremental margin from the
Heritage Propane acquisition.

Retail volumes sold during the fourth quarter of fiscal 2012 were 203.2
million gallons, an increase of 56.8 million gallons primarily due to the
acquisition of Heritage Propane. Adjusted EBITDA for the quarter was $34.1
million compared with $14.5 million for the fourth quarter of fiscal 2011. The
Partnership recorded a seasonal loss attributable to AmeriGas Partners for the
fourth quarter of fiscal 2012 of $76.0 million compared to a seasonal loss of
$45.2 million for the prior-year period. The seasonal net loss for the current
quarter includes the impact of $19.3 million in acquisition and transition
expenses associated with the acquisition of Heritage Propane. The seasonal net
loss for the prior-year quarter includes the effect of a $19.3 million loss
related to the extinguishment of debt.

EBITDA, Adjusted EBITDA, and total margin are non-GAAP financial measures.
Adjusted EBITDA is defined herein as earnings before interest expense, income
taxes, depreciation and amortization, losses on extinguishment of debt and
Heritage Propane acquisition and transition expenses. Total margin represents
total revenues less total cost of sales. Management believes the presentation
of these measures provides useful information to investors to more effectively
evaluate the year-over-year results of operations of the Partnership. These
measures are not comparable to measures used by other entities and should only
be considered in conjunction with net income attributable to AmeriGas
Partners, L.P. A reconciliation of EBITDA and Adjusted EBITDA to the most
comparable GAAP financial measure is included on the last page of this press
release.

AmeriGas is the nation’s largest retail propane marketer, serving over two
million customers in all 50 states from over 2,000 locations. UGI Corporation,
through subsidiaries, is the sole General Partner and owns 26% of the
Partnership. An affiliate of Energy Transfer Partners, L.P. owns 32% of the
Partnership and the public owns the remaining 42%.

AmeriGas Partners, L.P. will hold a live Internet Audio Webcast of its
conference call to discuss fiscal 2012 earnings and other current activities
at 4:00 PM ET on Thursday, November 8, 2012. Interested parties may listen to
the audio webcast both live and in replay on the Internet at
http://investors.amerigas.com/investor-relations/events-presentations or at
the company website http://www.amerigas.com under Investor Relations. A
telephonic replay will be available from 7:00 PM ET on November 8 through 9:00
pm on Tuesday, November 13. The replay may be accessed at 1-877-344-7529,
passcode 10019726 and International access 1-412-317-0088, passcode 10019726.

Comprehensive information about AmeriGas is available on the Internet at
http://www.amerigas.com.

This press release contains certain forward-looking statements which
management believes to be reasonable as of today’s date only. Actual results
may differ significantly because of risks and uncertainties that are difficult
to predict and many of which are beyond management’s control. You should read
the Partnership’s Annual Report on Form 10-K for a more extensive list of
factors that could affect results. Among them are adverse weather conditions,
cost volatility and availability of propane, increased customer conservation
measures, the capacity to transport propane to our market areas, the impact of
pending and future legal proceedings, political, economic and regulatory
conditions in the U.S. and abroad, and our ability to successfully integrate
Heritage Propane and achieve anticipated synergies. The Partnership undertakes
no obligation to release revisions to its forward-looking statements to
reflect events or circumstances occurring after today.

                                                                
AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
                                                                  
                                                                  
                                                                  
                     Three Months Ended          Twelve Months Ended
                     September 30,               September 30,
                       2012          2011          2012            2011       
Revenues:
Propane              $ 450,055     $ 418,746     $ 2,677,631     $ 2,360,439
Other                  60,230        41,387        243,985         177,520    
                       510,285       460,133       2,921,616       2,537,959  
                                                                  
Costs and
expenses:
Cost of sales -        247,798       289,123       1,642,658       1,546,161
propane
Cost of sales -        24,109        15,224        77,071          59,126
other
Operating and
administrative         233,603       146,537       888,693         620,576
expenses
Depreciation           39,632        21,124        134,225         82,977
Amortization           10,996        3,217         34,898          11,733
Other income, net      (9,590  )     (5,159  )     (26,521   )     (25,563   )
                       546,548       470,066       2,751,024       2,295,010  
Operating (loss)       (36,263 )     (9,933  )     170,592         242,949
income
Loss on
extinguishments of     -             (19,316 )     (13,349   )     (38,117   )
debt, net
Interest expense       (39,210 )     (16,153 )     (142,641  )     (63,518   )
(Loss) income
before income          (75,473 )     (45,402 )     14,602          141,314
taxes
Income tax             (925    )     97            (1,931    )     (390      )
(expense) benefit
Net (loss) income      (76,398 )     (45,305 )     12,671          140,924
Less: net (loss)
income
attributable to        395           110           (1,646    )     (2,401    )
noncontrolling
interests
Net (loss) income
attributable to      $ (76,003 )   $ (45,195 )   $ 11,025        $ 138,523    
AmeriGas Partners,
L.P.
                                                                  
General partner's
interest in net
(loss) income        $ 3,491       $ 1,114       $ 13,119        $ 6,422      
attributable to
AmeriGas Partners,
L.P.
                                                                  
Limited partners'
interest in net
(loss) income        $ (79,494 )   $ (46,309 )   $ (2,094    )   $ 132,101    
attributable to
AmeriGas Partners,
L.P.
                                                                  
                                                                  
(Loss) income per
limited partner
unit (a)
                                                                  
Basic                $ (0.86   )   $ (0.81   )   $ (0.11     )   $ 2.30       
                                                                  
Diluted              $ (0.86   )   $ (0.81   )   $ (0.11     )   $ 2.30       
                                                                  
Average limited
partner units
outstanding:
Basic                  92,805        57,130        81,433          57,119     
                                                                  
Diluted                92,805        57,130        81,433          57,170     
                                                                  
SUPPLEMENTAL
INFORMATION:
                                                                  
Retail gallons         203.2         146.4         1,017.5         847.2
sold (millions)
EBITDA (b)           $ 14,760      $ (4,798  )   $ 324,720       $ 297,141
Expenditures for
property, plant
and equipment:
Maintenance
capital              $ 10,558      $ 10,011      $ 45,065        $ 38,172
expenditures
Transition capital
related to           $ 13,265      $ -           $ 17,608        $ -
Heritage
integration
Growth capital       $ 9,053       $ 8,016       $ 40,467        $ 39,056
expenditures

     
      Income per limited partner unit is computed in accordance with
      accounting guidance regarding the application of the two-class method
(a)   for determining earnings per share as it relates to master limited
      partnerships. Refer to Note 2 to the consolidated financial statements
      included in the AmeriGas Partners, L.P. Annual Report on Form 10-K for
      the fiscal year ended September 30, 2011.
       
      Earnings before interest expense, income taxes, depreciation and
      amortization ("EBITDA") should not be considered as an alternative to
      net income attributable to AmeriGas Partners, L.P. (as an indicator of
      operating performance) and is not a measure of performance or financial
      condition under accounting principles generally accepted in the United
(b)   States ("GAAP"). Management believes EBITDA is a meaningful non-GAAP
      financial measure used by investors to (1) compare the Partnership's
      operating performance with that of other companies within the propane
      industry and (2) assess the Partnership's ability to meet loan
      covenants. The Partnership's definition of EBITDA may be different from
      those used by other companies.
       
      Management uses EBITDA to compare year-over-year profitability of the
      business without regard to capital structure as well as to compare the
      relative performance of the Partnership to that of other master limited
      partnerships without regard to their financing methods, capital
      structure, income taxes or historical cost basis. In view of the
      omission of interest, income taxes, depreciation and amortization from
      EBITDA, management also assesses the profitability of the business by
      comparing net income attributable to AmeriGas Partners, L.P. for the
      relevant years.
       
      Management also uses EBITDA to assess the Partnership's profitability
      because its parent, UGI Corporation, uses the Partnership's EBITDA to
      assess the profitability of the Partnership which is one of UGI
      Corporation's industry segments. UGI Corporation discloses the
      Partnership's EBITDA in its disclosure about industry segments as the
      profitability measure for its domestic propane segment. EBITDA in the
      three months ended September 30, 2012 includes acquisition and
      transition expense of $19,295 associated with the Heritage Propane
      acquisition. EBITDA in the twelve months ended September 30, 2012
      includes a net pre-tax loss of $13,349 from extinguishments of debt and
      acquisition and transition expense of $46,187 associated with the
      Heritage Propane acquisition. EBITDA in the three and twelve months
      ended September 30, 2011 includes pre-tax losses of $19,316 and $38,117,
      respectively, from extinguishments of debt.
       
      The following table includes reconciliations of net income (loss)
      attributable to AmeriGas Partners, L.P. to EBITDA and Adjusted EBITDA
      (1) for all periods presented:

                                                        
                             Three Months Ended          Twelve Months Ended
                             September 30,               September 30,
                               2012          2011          2012        2011
                                                                      
Net (loss) income
attributable to AmeriGas     $ (76,003 )   $ (45,195 )   $ 11,025    $ 138,523
Partners, L.P.
Income tax expense             925           (97     )     1,931       390
(benefit)
Interest expense               39,210        16,153        142,641     63,518
Depreciation                   39,632        21,124        134,225     82,977
Amortization                   10,996        3,217         34,898      11,733
EBITDA                       $ 14,760      $ (4,798  )   $ 324,720   $ 297,141
Heritage Propane
acquisition and transition     19,295        -             46,187      -
expense
Loss on extinguishments of     -             19,316        13,349      38,117
debt
Adjusted EBITDA (1)          $ 34,055      $ 14,518      $ 384,256   $ 335,258

 
The following table includes a reconciliation of forecasted net income
attributable to AmeriGas Partners, L.P. to forecasted EBITDA and Adjusted
EBITDA for the fiscal year ending September 30, 2013:

                                                               
                                                                Forecast
                                                                Fiscal
                                                                Year
                                                                Ending
                                                                September 30,
                                                                2013
Net income attributable to AmeriGas Partners, L.P. (estimate)   $   259,000
Interest expense (estimate)                                         167,000
Income tax expense (estimate)                                       2,000
Depreciation (estimate)                                             154,000
Amortization (estimate)                                             43,000
EBITDA                                                          $   625,000
Transition expenses (estimate)                                      20,000
Adjusted EBITDA (1)                                             $   645,000

 
(1) Adjusted EBITDA is a non-GAAP financial measure. Management believes the
presentation of this measure provides useful information to investors to more
effectively evaluate the year-over-year results of operations of the
Partnership. Management uses Adjusted EBITDA to exclude from AmeriGas
Partners' EBITDA gains and losses that competitors do not necessarily have to
provide additional insight into the comparison of year-over-year profitability
to that of other master limited partnerships. This measure is not comparable
to measures used by other entities and should only be considered in
conjunction with net income attributable to AmeriGas Partners, L.P. for the
relevant periods.

Contact:

AmeriGas Partners, L.P.
Hugh J. Gallagher, 610-337-7000 ext. 1029
Simon Bowman, 610-337-7000 ext. 3645
Shelly Oates, 610-337-7000 ext. 3202