AmeriGas Partners Issues Earnings Guidance.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) ), announced updated earnings guidance. AmeriGas Partners expects to report earnings per unit for its fiscal year ending September 30, 2005 of approximately $1.55 to $1.75 per diluted unit, excluding a loss of up to $0.64 per diluted unit from the expected early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt as a result of a previously-announced proposed refinancing Refinancing An extension and/or increase in amount of existing debt. of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The forecasted results include a gain of $7.1 million, or $0.13 per diluted unit, on the previously-reported sale of AmeriGas' 50% interest in Atlantic Energy, Inc., owner of a propane import terminal in Virginia. Average diluted units outstanding through March 31, 2005 were 54.5 million units. 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 range from approximately $245 million to $255 million for the year, excluding a loss of up to $35 million on the expected early extinguishment of debt. The forecasted EBITDA includes a $9.1 million pre-tax gain on the sale of Atlantic Energy. The refinancing is expected to be completed by May 3. Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "Warm weather and continued price-induced customer conservation combined to adversely impact our business. Weather for the recently completed heating season was approximately 6% warmer than normal compared to weather that was approximately 4% warmer than normal in the 2004 heating season." AmeriGas Partners is scheduled to release more detailed results for the quarter ended March 31, 2005 on April 27. AmeriGas Partners is the nation's largest retail propane marketer, serving nearly 1.3 million customers from over 650 locations in 46 states. UGI Corporation
Under the UGI Utilities, Inc. (NYSE:UGI UGI abbr. upper gastrointestinal (as in series) ), through subsidiaries, owns 46% of the Partnership and individual unitholders own the remaining 54%. 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. Among them are adverse weather conditions, product cost volatility and availability of propane, the capacity to transport propane to our market areas, regional economic conditions and the completion of a refinancing of debt. 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. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today. Comprehensive information about AmeriGas is available on the Internet at www.amerigas.com.
The following table includes a reconciliation of forecasted net income
to forecasted EBITDA for the fiscal year ending September 30, 2005:
Forecast
Fiscal
Year
Ending
September 30,
2005
-------------
(in millions)
Net income (estimate) $ 91.0 (a)
Interest expense (estimate) 81.0
Income taxes (estimate) 2.0
Depreciation (estimate) 71.0
Amortization (estimate) 5.0
-------------
EBITDA (estimate) $ 250.0
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(a) Includes a pre-tax gain of $9.1 million on the previously reported
sale of AmeriGas' 50% interest in Atlantic Energy, Inc. and
excludes the expected loss of approximately $35 million resulting
from the loss on extinguishment of debt expected as a result of
the previously announced proposed refinancing of long-term debt.
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