UGI Reports Significant Increase in Earnings Per Share.
VALLEY FORGE, Pa.--(BUSINESS WIRE)--July 31, 2002
UGI Corporation (NYSE:UGI) reported net income of $4.0 million, or $0.14 per diluted share for the third quarter of fiscal 2002 ended June 30, 2002 compared to a loss of $4.3 million, or $0.16 per diluted share for the third quarter of fiscal 2001 ended June 30, 2001.
Lon R. Greenberg, chairman, president and chief executive officer of UGI, said, "We are pleased to report significantly higher earnings per share for this quarter in which seasonal losses have been traditional. Our domestic propane business, utility operations, energy services and international propane operations all contributed to improved results for the quarter. We believe these results reflect our focus on the execution of our strategy to grow our gas, electric and propane businesses."
In UGI's propane unit, AmeriGas Partners, L. P. (NYSE:APU), retail volumes sold rose 28.4% to 171.0 million gallons versus 133.2 million gallons sold in the prior-year period. Operating income from AmeriGas Propane was $11.8 million in the June 2002 quarter compared to a loss of $5.8 million in the prior-year quarter. The results for the period reflect the beneficial effects of the Columbia Propane operations acquired in August 2001, increased sales and margin from the PPX(R) grill cylinder exchange business and cooler spring weather, partially offset by the effects of the slow economy. Weather was 4.3% colder than normal and approximately 19.5% colder than the prior-year period according to the National Oceanic and Atmospheric Administration.
At UGI Utilities, operating income improved to $13.3 million in the third quarter of fiscal 2002 from $12.7 million last year on weather that was slightly colder than the prior-year period. Gas Utility gross margin was approximately equal to the prior year on slightly higher throughput and operating expenses rose slightly. Electric Utility operating income increased as a result of higher unit margins attributable to lower purchased power costs on slightly higher unit sales.
Energy marketing operating income for the quarter increased to $3.5 million from $2.6 million, mainly as a result of acquisitions made during fiscal 2001 and seasonally higher margins from certain customer segments. Results of international propane operations improved by over $1 million compared to the prior-year period.
Revenues for the quarter increased to $446.3 million from $411.9 million mainly as a result of acquisitions and slightly cooler spring weather, partially offset by lower commodity prices and the effects of the slow economy. As previously reported, UGI adopted accounting principle SFAS 142 effective October 1, 2001 resulting in the elimination of amortization of goodwill. Although there is no impact on cash flow, amortization expense for the quarter ended June 30, 2001 would have been $6.3 million lower and net income $2.2 million, or $0.08 per diluted share, higher if SFAS 142 had been adopted in the prior year.
UGI is a holding company with propane marketing, utility and energy marketing subsidiaries. Through subsidiaries, UGI owns 51% of AmeriGas Partners, L. P. (NYSE:APU), the nation's largest retail propane marketer.
Comprehensive information about UGI Corporation is available on the Internet at http://www.ugicorp.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 UGI's Annual Report for a more extensive list of factors that could affect results. Among them are adverse weather conditions, price volatility and availability of all energy products, including propane, natural gas, electricity and fuel oil, and political, regulatory and economic conditions. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.