AmeriGas Partners Reports Third Quarter Results, Reiterates 2008 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) ), reported a seasonal net loss for the third fiscal quarter ended June 30, 2008 of $8.8 million compared to a loss of $5.7 million for the same period last year. The Partnership's 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 ) decreased to $29.7 million for the third fiscal quarter of 2008 compared to EBITDA of $30.9 million for the prior-year period. For the three months ended June 30, 2008, retail volumes sold decreased slightly to 180.7 million gallons from 182.1 million gallons in the prior-year period. Weather nationally during the quarter was 1.8% colder than normal and 7.0% colder than the prior-year period, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the National Oceanic and Atmospheric Administration Noun 1. National Oceanic and Atmospheric Administration - an agency in the Department of Commerce that maps the oceans and conserves their living resources; predicts changes to the earth's environment; provides weather reports and forecasts floods and hurricanes and . Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "Although EBITDA for the third quarter was modestly below last year's record performance, we are encouraged by the ability of our business to operate effectively in a challenging environment. Growth in our cylinder exchange and strategic accounts businesses this quarter and improved margins, combined with sales volumes from acquisitions in 2007, could not overcome price-induced residential customer conservation and the impact of a sluggish economy Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. on our commercial volume. We remain confident that our focus on providing value to our customers will continue to provide sustained, superior long-term value to our unitholders. Based upon the strength of our year-to-date results, we still expect EBITDA for the fiscal year ending September 30, 2008 to be a new record and in the range of $300 million to $310 million." Revenues for the quarter increased to $535.1 million versus $433.9 million a year ago due to higher retail selling prices associated with significantly higher commodity prices. Average wholesale propane costs for the quarter at Mt. Belvieu, Texas increased over 50% from the prior year quarter. Total margin increased $10.4 million from the prior year quarter due to higher average unit margins and, to a lesser extent, higher fee income. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. decreased $2.5 million from the prior year period as the increase in total margin was more than offset by higher operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and increased depreciation and amortization related to growth investments. Operating and administrative expenses increased during the quarter primarily due to higher energy costs, including vehicle fuel, higher general insurance expense and expenses associated with acquisitions completed in 2007 and growth in our cylinder exchange business. AmeriGas Partners is the nation's largest retail propane marketer, serving nearly 1.3 million customers from over 600 locations in 46 states. UGI Corporation (NYSE:UGI UGI abbr. upper gastrointestinal (as in series) ), through subsidiaries, owns 44% of the Partnership and individual unitholders own the remaining 56%. AmeriGas Partners, L. P. will host its third quarter FY 2008 earnings conference call on Wednesday, July 30, 2008 at 4:00 PM ET. Interested parties may listen to a live audio broadcast of the conference call at http://investor.shareholder.com/ugi/apu/events.cfm or at the company website: www.amerigas.com by clicking on Investor Relations Investor relations The process by which the corporation communicates with its investors. . The webcast replay will be available through August 29. A telephonic replay will be available from 7:00 PM ET on July 30 through midnight Friday, August 1. The replay may be accessed at 888-203-1112, passcode 3680748 and International access 719-457-0820, passcode 3680748. The financial table appended to this news release can be viewed in its electronic version on the Partnership's website at APU3Q08FinancialTable.pdf. 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 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 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 occurring after today. Comprehensive information about AmeriGas is available on the Internet at www.amerigas.com. |
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