Close

Form 8-K AMERIGAS PARTNERS LP For: May 02

May 3, 2016 9:26 AM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 2, 2016
 
 
AmeriGas Partners, L.P.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
 
Delaware
 
1-13692
 
23-2787918
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
 
 
 
 
 
460 No. Gulph Road, King of Prussia,
Pennsylvania
 
19406
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: 610 337-7000
Not Applicable
Former name or former address, if changed since last report
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨
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))







Item 2.02 Results of Operations and Financial Condition.
On May 2, 2016, AmeriGas Propane, Inc., the general partner of AmeriGas Partners, L.P. (the “Partnership”), issued a press release announcing financial results for the Partnership for the fiscal quarter ended March 31, 2016. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On May 3, 2016, the Partnership will hold a live Internet Audio Webcast of its conference call to discuss its financial results for the fiscal quarter ended March 31, 2016.
Presentation materials containing certain historical and forward-looking information relating to the Partnership (the “Presentation Materials”) have been made available on the Partnership’s website. A copy of the Presentation Materials is furnished as Exhibit 99.2 to this report and is incorporated herein by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular dates referenced therein, and the Partnership does not undertake any obligation to, and disclaims any duty to, update any of the information provided.
In accordance with General Instruction B.2 of Form 8-K, the information in this report, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and will not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in that filing.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are being furnished herewith:
 
99.1
Press Release of AmeriGas Partners, L.P. dated May 2, 2016.
99.2
Presentation of AmeriGas Partners, L.P. dated May 3, 2016.







SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
AmeriGas Partners, L.P.
 
 
 
May 3, 2016
By:
 
/s/ Hugh J. Gallagher
 
 
 
Name: Hugh J. Gallagher
 
 
 
Title: Vice President - Finance and Chief Financial Officer of AmeriGas Propane, Inc., the general partner of AmeriGas Partners, L.P.






EXHIBIT INDEX
The Following Exhibits Are Furnished:
 
EXHIBIT
NO.
DESCRIPTION
99.1
Press Release of AmeriGas Partners, L.P. dated May 2, 2016.
99.2
Presentation of AmeriGas Partners, L.P. dated May 3, 2016.






Exhibit 99.1
 
 
 
 
 
 
 
 
 
Contact:
  
610-337-7000
  
 
  
For Immediate Release:
 
 
  
Will Ruthrauff, ext. 6571
  
 
  
May 2, 2016
 
 
  
Shelly Oates, ext. 3202
  
 
  
 
 
 
  
 
  
 
  
 
 
AmeriGas Partners Reports Fiscal 2016 Second Quarter Earnings; Updates Guidance

VALLEY FORGE, Pa., May 2 - AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE: APU), reported adjusted net income attributable to AmeriGas Partners for the quarter ended March 31, 2016 of $206.9 million, compared to adjusted net income of $252.1 million for the quarter ended March 31, 2015. Adjusted net income attributable to AmeriGas Partners excludes the impact of gains and losses on commodity derivative instruments. On a GAAP basis, net income attributable to AmeriGas Partners was $245.9 million for the quarter ended March 31, 2016, compared to $326.1 million in the prior year.

The Partnership’s adjusted earnings before interest expense, income taxes, depreciation and amortization (Adjusted EBITDA) was $295.4 million for the second fiscal quarter compared with $342.1 million in the prior year. Retail volumes sold for the quarter decreased 13.9% to 385.8 million gallons from 448.0 million gallons in the prior year. The decrease in retail gallons sold reflects temperatures that were 11.7% warmer than normal according to the National Oceanic and Atmospheric Administration (NOAA).

Jerry E. Sheridan, president and chief executive officer of AmeriGas, said, “This was a challenging quarter in which the company performed well despite weather that was the second warmest on record and 13% warmer than the prior year period. Retail volumes declined in line with the weather, but our focus on expense and margin management enabled the company to offset nearly $30 million of earnings shortfall, and deliver adjusted EBITDA of $295 million.”

Sheridan continued, “We continue to make substantial progress on our core growth initiatives. We added accounts to our Cylinder Exchange program that bring our total retail outlets to nearly 51,000. Our National Accounts program has added 31 new accounts and negotiated 23 contract renewals so far this year, and our acquisition program has completed three acquisitions.

“Based on our results thus far and our expectations for the remainder of the year, we now expect adjusted EBITDA of $575 million to $600 million for the fiscal year ending September 30, 2016. Finally, we were pleased to recently announce an increase in our distribution to $3.76 annually, marking our 12th consecutive year of distribution growth.”





 



-MORE-




 
 
AmeriGas Partners Reports Fiscal 2016 Second Quarter Earnings
Page 2

About AmeriGas
AmeriGas is the nation’s largest retail propane marketer, serving approximately two million customers in all 50 states from approximately 2,000 distribution locations. UGI Corporation, through subsidiaries, is the sole General Partner and owns 26% of the Partnership and the public owns the remaining 74%.

AmeriGas Partners, L.P. will hold a live Internet Audio Webcast of its conference call to discuss fiscal 2016 second quarter earnings and other current activities at 9:00 AM ET on Tuesday, May 3, 2016. 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 12:00 PM ET on May 3 through 11:59 PM on May 9. The replay may be accessed at (855) 859-2056, and internationally at 1-404-537-3406, conference ID 13859024.

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

This press release contains certain forward-looking statements that 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 acquisitions 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.

 
 
 
 
 
AP-05
  
###
 
5/2/16




AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
 
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
Twelve Months Ended
March 31,
 
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Propane
 
$
759,278

 
$
1,028,080

 
$
1,333,182

 
$
1,840,815

 
$
2,104,768

 
$
2,889,958

Other
 
68,209

 
72,237

 
138,403

 
148,294

 
263,030

 
272,637

 
 
827,487

 
1,100,317

 
1,471,585

 
1,989,109

 
2,367,798

 
3,162,595

Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales - propane
 
241,621

 
411,745

 
469,543

 
990,286

 
780,424

 
1,595,217

Cost of sales - other
 
17,161

 
18,822

 
38,028

 
40,862

 
83,804

 
84,330

Operating and administrative expenses
238,535

 
257,346

 
469,424

 
503,997

 
918,710

 
949,094

Depreciation
 
36,533

 
37,402

 
75,139

 
76,084

 
151,259

 
150,248

Amortization
 
10,886

 
10,713

 
21,486

 
21,399

 
42,763

 
42,971

Other operating income, net
 
(7,131
)
 
(7,392
)
 
(16,038
)
 
(17,540
)
 
(29,853
)
 
(31,304
)
 
 
537,605

 
728,636

 
1,057,582

 
1,615,088

 
1,947,107

 
2,790,556

Operating income
 
289,882

 
371,681

 
414,003

 
374,021

 
420,691

 
372,039

Interest expense
 
(40,806
)
 
(41,096
)
 
(81,831
)
 
(82,130
)
 
(162,543
)
 
(164,075
)
Income before income taxes
 
249,076

 
330,585

 
332,172

 
291,891

 
258,148

 
207,964

Income tax expense
 
(290
)
 
(806
)
 
(1,200
)
 
(1,676
)
 
(2,422
)
 
(2,930
)
Net income including noncontrolling interest
 
248,786

 
329,779

 
330,972

 
290,215

 
255,726

 
205,034

Deduct net income attributable to noncontrolling interest
 
(2,878
)
 
(3,724
)
 
(4,091
)
 
(3,731
)
 
(4,118
)
 
(3,658
)
Net income attributable to AmeriGas Partners, L.P.
 
$
245,908

 
$
326,055

 
$
326,881

 
$
286,484

 
$
251,608

 
$
201,376

General partner’s interest in net income attributable to AmeriGas Partners, L.P.
 
$
11,107

 
$
9,795

 
$
20,562

 
$
15,932

 
$
37,098

 
$
28,146

Limited partners’ interest in net income attributable to AmeriGas Partners, L.P.
 
$
234,801

 
$
316,260

 
$
306,319

 
$
270,552

 
$
214,510

 
$
173,230

Income per limited partner unit (a)
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
1.74

 
$
2.18

 
$
2.58

 
$
2.36

 
$
2.29

 
$
1.85

Diluted
 
$
1.74

 
$
2.17

 
$
2.58

 
$
2.36

 
$
2.29

 
$
1.85

Average limited partner units outstanding:
 
 
 
 
 
 
 
 
 
 
Basic
 
92,954

 
92,914

 
92,939

 
92,905

 
92,931

 
92,898

Diluted
 
93,020

 
92,963

 
93,014

 
92,970

 
93,003

 
92,964

SUPPLEMENTAL INFORMATION:
 
 
 
 
 
 
 
 
 
 
 
 
Retail gallons sold (millions)
 
385.8

 
448.0

 
680.9

 
788.2

 
1,077.0

 
1,214.8

Wholesale gallons sold (millions)
 
16.4

 
16.6

 
31.3

 
30.8

 
54.9

 
51.4

Total margin (b)
 
$
568,705

 
$
669,750

 
$
964,014

 
$
957,961

 
$
1,503,570

 
$
1,483,048

Adjusted total margin (c)
 
$
529,251

 
$
595,011

 
$
930,193

 
$
1,021,452

 
$
1,454,099

 
$
1,556,034

EBITDA (c)
 
$
334,423

 
$
416,072

 
$
506,537

 
$
467,773

 
$
610,595

 
$
561,600

Adjusted EBITDA (c)
 
$
295,368

 
$
342,088

 
$
473,058

 
$
530,623

 
$
561,624

 
$
633,849

Adjusted net income attributable to AmeriGas Partners, L.P. (c)
 
$
206,853

 
$
252,071

 
$
293,402

 
$
349,334

 
$
202,637

 
$
273,625

Expenditures for property, plant and equipment:
 
 
 
 
 
 
 
 
 
 
Maintenance capital expenditures
 
$
13,375

 
$
14,761

 
$
26,290

 
$
31,774

 
$
52,332

 
$
71,671

Growth capital expenditures
 
$
14,438

 
$
12,026

 
$
29,497

 
$
25,443

 
$
48,247

 
$
48,471

(a)
Income per limited partner unit is computed in accordance with accounting guidance regarding the application of the two-class method 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, 2015.
(b)
Total margin represents total revenues less cost of sales — propane and cost of sales — other.
(c)
The Partnership’s management uses certain non-GAAP financial measures, including adjusted total margin, EBITDA, adjusted EBITDA
    
(continued)





AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
(continued) 

and adjusted net income attributable to AmeriGas Partners, L.P., when evaluating the Partnership’s overall performance. These financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures.

Management believes earnings before interest, income taxes, depreciation and amortization (“EBITDA”), as adjusted for the effects of gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that competitors do not necessarily have ("Adjusted 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 Adjusted EBITDA may be different from those used by other companies. Management uses Adjusted 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, the effects of gains and losses on commodity derivative instruments not associated with current-period transactions or historical cost basis. In view of the omission of interest, income taxes, depreciation and amortization, gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that competitors do not necessarily have from Adjusted 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 Adjusted EBITDA to assess the Partnership’s profitability because its parent, UGI Corporation, uses the Partnership’s EBITDA, as adjusted to exclude gains and losses on commodity derivative instruments not associated with current-period transactions, to assess the profitability of the Partnership which is one of UGI Corporation’s industry segments. UGI Corporation discloses the Partnership’s EBITDA, as so adjusted, in its disclosure about industry segments as the profitability measure for its domestic propane segment.

Management believes the presentation of other non-GAAP financial measures, comprised of adjusted total margin and adjusted net income (loss) attributable to AmeriGas Partners, L.P., provide useful information to investors to more effectively evaluate the period-over-period results of operations of the Partnership. Management uses these non-GAAP financial measures because they eliminate the impact of (1) gains and losses on commodity derivative instruments that are not associated with current-period transactions and (2) other gains and losses that competitors do not necessarily have to provide insight into the comparison of period-over-period profitability to that of other master limited partnerships.
     
The following tables include reconciliations of adjusted total margin, EBITDA, adjusted EBITDA and adjusted net income attributable to AmeriGas Partners, L.P. to the most directly comparable financial measure calculated and presented in accordance with GAAP for all the periods presented:





























(continued)





(continued)

 
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
Twelve Months Ended
March 31,
 
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Adjusted total margin:
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
$
827,487

 
$
1,100,317

 
$
1,471,585

 
$
1,989,109

 
$
2,367,798

 
$
3,162,595

Cost of sales - propane
 
(241,621
)
 
(411,745
)
 
(469,543
)
 
(990,286
)
 
(780,424
)
 
(1,595,217
)
Cost of sales - other
 
(17,161
)
 
(18,822
)
 
(38,028
)
 
(40,862
)
 
(83,804
)
 
(84,330
)
Total margin
 
568,705

 
669,750

 
964,014

 
957,961

 
1,503,570

 
1,483,048

(Subtract net gains) add net losses on commodity derivative instruments not associated with current-period transactions
 
(39,454
)
 
(74,739
)
 
(33,821
)
 
63,491

 
(49,471
)
 
72,986

Adjusted total margin
 
$
529,251

 
$
595,011

 
$
930,193

 
$
1,021,452

 
$
1,454,099

 
$
1,556,034

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted net income attributable to AmeriGas Partners, L.P.:
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to AmeriGas Partners, L.P.
 
$
245,908

 
$
326,055

 
$
326,881

 
$
286,484

 
$
251,608

 
$
201,376

(Subtract net gains) add net losses on commodity derivative instruments not associated with current-period transactions
 
(39,454
)
 
(74,739
)
 
(33,821
)
 
63,491

 
(49,471
)
 
72,986

Noncontrolling interest in net gains (losses) on commodity derivative instruments not associated with current-period transactions
 
399

 
755

 
342

 
(641
)
 
500

 
(737
)
Adjusted net income attributable to AmeriGas Partners, L.P.
 
$
206,853

 
$
252,071

 
$
293,402

 
$
349,334

 
$
202,637

 
$
273,625


 
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
Twelve Months Ended
March 31,
 
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
EBITDA and Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to AmeriGas Partners, L.P.
 
$
245,908

 
$
326,055

 
$
326,881

 
$
286,484

 
$
251,608

 
$
201,376

Income tax expense
 
290

 
806

 
1,200

 
1,676

 
2,422

 
2,930

Interest expense
 
40,806

 
41,096

 
81,831

 
82,130

 
162,543

 
164,075

Depreciation
 
36,533

 
37,402

 
75,139

 
76,084

 
151,259

 
150,248

Amortization
 
10,886

 
10,713

 
21,486

 
21,399

 
42,763

 
42,971

EBITDA
 
334,423

 
416,072

 
506,537

 
467,773

 
610,595

 
561,600

(Subtract net gains) add net losses on commodity derivative instruments not associated with current-period transactions
 
(39,454
)
 
(74,739
)
 
(33,821
)
 
63,491

 
(49,471
)
 
72,986

Noncontrolling interest in net gains (losses) on commodity derivative instruments not associated with current-period transactions
 
399

 
755

 
342

 
(641
)
 
500

 
(737
)
Adjusted EBITDA
 
$
295,368

 
$
342,088

 
$
473,058

 
$
530,623

 
$
561,624

 
$
633,849





























(continued)
(continued)

The following table includes a reconciliation of forecasted net income attributable to AmeriGas Partners, L.P. to forecasted Adjusted EBITDA for the fiscal year ending September 30, 2016: 
 
Forecast
Fiscal Year
Ending
September 30,
2016
Net income attributable to AmeriGas Partners, L.P. (estimate) (d)
$
230,500

Interest expense (estimate)
163,000

Income tax expense (estimate)
2,000

Depreciation (estimate)
150,000

Amortization (estimate)
42,000

Adjusted EBITDA (e)
$
587,500


(d)
Represents estimated net income attributable to AmeriGas Partners, L.P. after adjusting for gains and losses on commodity derivative instruments not associated with current-period transactions. It is impracticable to determine actual gains and losses on commodity derivative instruments not associated with current-period transactions that will be reported in GAAP net income as such gains and losses will depend upon future changes in commodity prices for propane which cannot be forecasted.
(e)
Represents the midpoint of Adjusted EBITDA guidance range for fiscal 2016.



1 Fiscal 2016 Second Quarter Results Jerry Sheridan President & CEO, AmeriGas


 
2 This presentation contains certain forward-looking statements that 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 AmeriGas’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 impact of pending and future legal proceedings, political, regulatory and economic conditions in the United States and in foreign countries, the timing and success of our acquisitions, commercial initiatives and investments to grow our business, and our ability to successfully integrate acquired businesses and achieve anticipated synergies. AmeriGas undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today. About This Presentation


 
3 Second Quarter Recap Jerry Sheridan President & CEO, AmeriGas


 
4 Second Quarter Recap  March quarter was the second warmest on record which led to lower volume  Unit margins $0.03 higher than the prior year  Operating expenses $19mm, or 7%, lower than the prior year Adjusted EBITDA1 1 See appendix for reconciliation of Adjusted EBITDA to Net Income. $295 $342 $0M $50M $100M $150M $200M $250M $300M $350M Q2-16 Q2-15 Revised FY16 Guidance Adjusted EBITDA $575-$600 million


 
5 $414 $473 $200M $300M $400M $500M YTD 2012 YTD 2016 (15.0)% (15.2)% (25.0)% (15.0)% (5.0)% 5.0% 15.0% 25.0% YTD 2012 YTD 2016 warmer than normal colder than normal 14% Higher Adjusted EBITDA Comparison of YTD FY16 vs. YTD FY12 Comparable Weather


 
6 Growth Initiatives and Distribution Cylinder Exchange • Weather-related volume decline due to lower patio heater utilization rates • Added 2,500 locations in the quarter bringing the total to approximately 51,000 National Accounts • Volume down ~8.4% in the quarter on warm weather • Have added 31 new customer contracts so far this year Distribution • Recently announced increase in our distribution to $3.76 • Represents our 12th consecutive distribution increase • Target distribution coverage of ~1.2x


 
7 Appendix


 
8  The Partnership’s management uses certain non-GAAP financial measures, including adjusted total margin, EBITDA, adjusted EBITDA and adjusted net income attributable to AmeriGas Partners, L.P., when evaluating the Partnership’s overall performance. These financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures.  Management believes earnings before interest, income taxes, depreciation and amortization (“EBITDA”), as adjusted for the effects of gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that competitors do not necessarily have ("Adjusted 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 Adjusted EBITDA may be different from those used by other companies. Management uses Adjusted 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, the effects of gains and losses on commodity derivative instruments not associated with current-period transactions or historical cost basis. In view of the omission of interest, income taxes, depreciation and amortization, gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that competitors do not necessarily have from Adjusted 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 Adjusted EBITDA to assess the Partnership’s profitability because its parent, UGI Corporation, uses the Partnership’s EBITDA, as adjusted to exclude gains and losses on commodity derivative instruments not associated with current-period transactions, to assess the profitability of the Partnership which is one of UGI Corporation’s industry segments. UGI Corporation discloses the Partnership’s EBITDA, as so adjusted, in its disclosure about industry segments as the profitability measure for its domestic propane segment. Management believes the presentation of other non-GAAP financial measures, comprised of adjusted total margin and adjusted net income (loss) attributable to AmeriGas Partners, L.P., provide useful information to investors to more effectively evaluate the period-over-period results of operations of the Partnership. Management uses these non-GAAP financial measures because they eliminate the impact of (1) gains and losses on commodity derivative instruments that are not associated with current-period transactions and (2) other gains and losses that competitors do not necessarily have to provide insight into the comparison of period-over-period profitability to that of other master limited partnerships.  The following tables include reconciliations of adjusted total margin, EBITDA, adjusted EBITDA and adjusted net income attributable to AmeriGas Partners, L.P. to the most directly comparable financial measure calculated and presented in accordance with GAAP for all the periods presented. AmeriGas Supplemental Footnotes


 
9 AmeriGas Adjusted EBITDA 2016 2015 2016 2015 Adjusted total margin: Total revenues 827,487$ 1,100,317$ 1,471,585$ 1,989,109$ Cost of sales - propane (241,621) (411,745) (469,543) (990,286) Cost of sales - other (17,161) (18,822) (38,028) (40,862) Total margin 568,705 669,750 964,014 957,961 (Subtract net gains) add net losses on commodity derivative instruments not associated with current-period transactions (39,454) (74,739) (33,821) 63,491 Adjusted total margin 529,251$ 595,011$ 930,193$ 1,021,452$ Adjusted net income attributable to AmeriGas Partners, L.P.: Net income attributable to AmeriGas Partners, L.P. 245,908$ 326,055$ 326,881$ 286,484$ (Subtract net gains) add net losses on commodity derivative instruments not associated with current-period transactions (39,454) (74,739) (33,821) 63,491 Noncontrolling interest in net gains (losses) on commodity derivative instruments not associated with current-period transactions 399 755 342 (641) Adjusted net income attributable to AmeriGas Partners, L.P. 206,853$ 252,071$ 293,402$ 349,334$ March 31, March 31, Three Months Ended Six Months Ended 2016 2015 2016 2015 EBITDA and Adjusted EBITDA: Net income attributable to AmeriGas Partners, L.P. 245,908$ 326,055$ 326,881$ 286,484$ I come tax expen e 290 806 1 200 1 676 Interest expense 40,806 41,096 81,831 82,130 Depreciation 36,533 37,402 75,139 76,084 Amortization 10,886 10, 13 21,486 21,399 EBITDA 334,42 416, 2 506,537 467,773 (Subtract net gains) add net losses on commodity derivative instruments not associated with current-period transactions (39,454) (74,739) (33,821) 63,491 Noncontrolling interest in net gains (losses) on commodity derivative instruments not associated with current-period transactions 399 755 342 (641) Adjusted EBITDA 295,368$ 342,088$ 473,058$ 530,623$ March 31, March 31, Three Months Ended Six Months Ended (thousands)


 
10 AmeriGas 2012 Pro Forma Adjusted EBITDA Six Months Ended March 31, 2012 Pro Forma Net Income attributable to AmeriGas Partners, L.P. 196,362 Pro Forma Tax Expense 3,231 Pro forma Interest Expense 94,304 Pro Forma Amortization expense 20,991 Pro Forma depreciation Expense 73,895 Pro Forma EBITDA 388,783 Loss on Extinguishment of Debt 13,379 Heritage Acquisition and Transition Expenses (MD&A) 11,855 Pro Forma Adjusted EBITDA 414,017 (thousands) Note 4 to AmeriGas Partners’ Form 10-Q for the six-month period ended March 31, 2012 disclosed the pro forma impact on AmeriGas Partners’ revenues, net income attributable to AmeriGas Partners and income per limited partner unit of its acquisition of Heritage Propane on January 12, 2012. AmeriGas Partners’ net income attributable to AmeriGas Partners for the six-month period ended March 31, 2012 was $176,410.


 
11 Investor Relations: Will Ruthrauff 610-456-6571 [email protected]


 


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings