AmeriGas Partners Issues Earnings Guidance and Schedules Fourth Quarter Conference Call.VALLEY FORGE Valley Forge, on the Schuylkill River, SE Pa., NW of Philadelphia. There, during the American Revolution, the main camp of the Continental Army was established (Dec., 1777–June, 1778) under the command of Gen. George Washington. , Pa. -- AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE NYSE See: New York Stock Exchange :APU APU Azusa Pacific University APU Auxiliary Power Unit APU Alaska Pacific University APU Asia Pacific University (Japan) APU American Public University APU Anglia Polytechnic University (Chelmsford) ), today announced earnings guidance for fiscal years 2009 and 2010. AmeriGas Partners expects to report earnings for its fiscal year ended September 30, 2009 of approximately $224 million. Earnings before interest expense, income taxes, depreciation, and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) are expected to be approximately $381 million for the year. Results for the current year include a $40 million gain on the sale of the Partnership's California propane storage terminal. Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "As previously reported, earnings in fiscal 2009 significantly benefited from higher unit margins resulting from a rapid decline in wholesale propane costs. This benefit was offset somewhat by the effects on our business of recessionary market conditions, which adversely affected volumes. Assuming normal weather patterns for this winter, for fiscal 2010 ending September 30, 2010 we expect to report earnings in the range of $181 million to $191 million and EBITDA in the range of $335 million to $345 million." AmeriGas Partners will hold a live Internet Audio See RealAudio. Webcast of its conference call to discuss fourth quarter earnings and fiscal 2010 activities at 4:00 PM ET on Wednesday, November 11, 2009. Interested parties may listen to the audio webcast both live and in replay on the Internet at http://investor.shareholder.com/ugi/apu/events.cfm or at the company website; http://www.amerigas.com and click on Investor Relations Investor relations The process by which the corporation communicates with its investors. . A telephonic replay will be available from 7:00 PM ET on November 11 through midnight Friday, November 13. The replay may be accessed at 1-888-203-1112, passcode 2496390 and International access 1-719-457-0820, passcode 2496390. AmeriGas Partners is the nation's largest retail propane marketer. UGI Corporation
Under the UGI Utilities, Inc. , through subsidiaries, owns 44% of AmeriGas Partners, L.P. and the public owns the remaining 56%. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for a more extensive list of factors that could affect results. Among them are adverse weather conditions, price 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 All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , and political, economic and regulatory conditions in the U. S. and abroad. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after today. The following table includes a reconciliation of forecasted net income to forecasted EBITDA for the fiscal years ending September 30, 2009 and 2010.
> >
> > Forecast
Forecast
> > Fiscal Year Ending
Fiscal Year Ending
> > September 30, 2009
September 30, 2010
> > (in millions)
(in millions)
> >
Net income (estimate) > > $224
$185
Interest Expense (estimate) > > 70
66
Income taxes (estimate) > > 3
3
Depreciation (estimate) > > 78
80
Amortization (estimate) > > 6
6
EBITDA (estimate) > > $381
$340
> >
Earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") should not be considered as an alternative to net income (as an indicator of operating performance) and is not a measure of performance or financial condition under accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Management believes EBITDA is a meaningful non-GAAP financial measure used by investors to (1) compare the Partnership's operating performance with other companies within the propane industry and (2) assess its ability to meet loan covenants A loan covenant is a condition in a commercial loan or bond issue that requires the borrower to fulfill certain conditions or forbids the borrower from undertaking certain actions, or possibly restricts certain activities to circumstances when other conditions are met. . The Partnership's definition of EBITDA may be different from that 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 omission n. 1) failure to perform an act agreed to, where there is a duty to an individual or the public to act (including omitting to take care) or is required by law. Such an omission may give rise to a lawsuit in the same way as a negligent or improper act. of interest, income taxes, depreciation and amortization from EBITDA, management also assesses the profitability of the business by comparing net income 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. UGI Corporation discloses the Partnership's EBITDA as the profitability measure to comply with the requirement in Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information," to provide profitability information about its domestic propane segment. Comprehensive information about AmeriGas is available on the Internet at http://www.amerigas.com. |
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