UGI Corporation · NYSE:UGI
UGI — Q2 FY2017 Earnings Presentation
26 slides from UGI's earnings presentation, May 2, 2017
Slide 1: Fiscal 2017 Second Quarter Results
1 Fiscal 2017 Second Quarter Results John Walsh President & CEO, UGI Kirk Oliver Chief Financial Officer, UGI Jerry Sheridan President & CEO, AmeriGas
Slide 2: About This Presentation
2 About This Presentation 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’
Slide 3: Second Quarter Recap
3 Second Quarter Recap John Walsh President & CEO, UGI
Slide 4: Q2 Earnings Recap
4 Q2 Earnings Recap • Solid results despite a warmer than normal heating season in all four of our businesses • Results reflect our investments in projects that are less dependent on weather, and focus on operational efficiency • Expecting full year adjusted EPS to be at the lower end, or slightly b
Slide 5: Q2 Market Recap
5 Q2 Market Recap UGI Corporation | Fiscal 2017 Second Quarter Results • Completed construction of $60 million Manning LNG liquefaction facility • Gas Utility added 3,400 new residential heating and commercial customers, year-to-date total of 8,000 • Filed a $21.7 million rate case for our UGI Penn
Slide 6: Second Quarter Financial Review
6 Second Quarter Financial Review Kirk Oliver Chief Financial Officer, UGI
Slide 7: Q2 Adjusted Earnings
7 FY16-Q2 FY17-Q2 Net income attributable to UGI Corporation (GAAP) $233.2 $ 219.9 Net losses (gains) on commodity derivative instruments1 (22.4) 3.1 Unrealized losses on foreign currency derivative instruments1 - 0.8 Loss on extinguishment of debt1 - 3.6 Integration expenses associated with Finagaz
Slide 8: Q2 Results Recap
8 $0.50 $1.50 Q2 FY16 AmeriGas UGI International Midstream & Marketing UGI Utilities Corp & Other Q2 FY17 $1.24 $(0.02) $0.06 $0.02 $0.01 $0.00 $1.31 Q2 Results Recap Solid results across all business units despite warmer than normal temperatures A d ju st ed E P S Adjusted EPS is a non-GAAP measure
Slide 9: Financial Results – AmeriGas
9 FY16-Q2 FY17-Q2 Adjusted EBITDA $295.4 Retail Volume (20.5) Wholesale and Other Total Margin (1.0) Operating and Administrative Expenses (1.5) Other Income and Expense, net (1.2) Adjusted EBITDA $271.2 • Volume down 6% primarily due to weather • Total margin decreased primarily reflecting the redu
Slide 10: Financial Results – UGI International
10 FY16-Q2 FY17-Q2 Income Before Taxes $105.0 Total Margin (0.1) Operating and Administrative Expenses 6.8 Depreciation and Amortization 0.7 Interest Expense 1.7 Other Income and Expense, net 2.1 Income Before Taxes $116.2 Integration Expenses 8.6 6.7 Adjusted Income Before Taxes $113.6 $122.9 • Tot
Slide 11: Financial Results – Midstream & Marketing
11 FY16-Q2 FY17-Q2 Income Before Taxes $ 77.3 Total Margin 4.8 Operating and Administrative Expenses (0.4) Depreciation and Amortization (1.1) Interest Expense (0.2) Other Income and Expenses, net 3.4 Income Before Taxes $83.8 • Despite warmer temperatures, total margin increased principally reflect
Slide 12: Financial Results – Utilities
12 FY16-Q2 FY17-Q2 Income Before Taxes $105.2 Total Margin 11.0 Operating and Administrative Expenses (8.7) Depreciation and Amortization (0.7) Interest Expense (1.0) Other Income and Expense, net 0.3 Income Before Taxes $106.1 Financial Results – Utilities FY16-Q2 FY17-Q2 colder warmer -11.7% -9.7%
Slide 13: 2012 – 2017 Comparison
13 2012 – 2017 Comparison UGI Corporation | Fiscal 2017 Second Quarter Results $ 1.32 $ 0.07 $ 0.37 $ 0.27 $ 0.14 $ 0.05 $ 2.22 YTD 2012 AmeriGas UGI International Midstream & Marketing UGI Utilities Corp & other YTD 2017 $2.50 $2.00 $1.50 $1.00 $0.50 $- Adjusted EPS Adjusted EPS is a non-GAAP measu
Slide 14: AmeriGas Second Quarter Recap
A me riGa s Second Quarter Recap Jerry Sheridan President & CEO, AmeriGas
Slide 15: Q2 Earnings Recap
15 • The quarter ended 13% warmer than normal and 3% warmer than last year • 2nd warmest Q2 on record • Retail volume sold in the quarter was 363 million gallons, 6% below last year • Unit margins up 2% despite increased propane costs • Operating expenses essentially flat despite 23% increase in die
Slide 16: Growth Initiatives
16 Growth Initiatives UGI Corporation | Fiscal 2017 Second Quarter Results Cylinder Exchange • Modest increase in volume despite the warmer weather • Over 1,250 new locations year-to-date National Accounts • Volume up 5% primarily due to new accounts Acquisitions • Completed two small scale acquisit
Slide 17: Maintaining A Strong Balance Sheet
17 UGI Corporation | Fiscal 2017 Second Quarter Results Refinancing • Issued $525 million of 5.75% notes due May 2027 • Tendered for $378 million of 7.00% May 2022 notes • Redeeming remaining $102.5 million of 7.00% May 2022 notes • Completes refinancing of all long-term debt • No significant debt m
Slide 18: Conclusion and Q&A
18 Conclusion and Q&A John Walsh President & CEO, UGI
Slide 19: Clear Path to Growth
19 Clear Path to Growth • Sunbury pipeline providing service to UGI and will begin serving power generation facility in August • Receive Final Environmental Impact Statement for PennEast last month; continue to target end of 2018 for in-service • LNG projects remain core focus • Manning liquefaction
Slide 20: Appendix
20 APPENDIX
Slide 21: Non-GAAP Measures Definitions
21 • Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. For the periods presented, adjusted net income attributable to UGI is net income attributable to UGI Cor
Slide 22: UGI Adjusted Net Income and EPS – Three Months
22 UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2017 Second Quarter Results Three Months Ended March 31, 2017 Total AmeriGas Propane UGI International Midstream & Marketing UGI Utilities Corporate & Other Adjusted net income attributable to UGI Corporation: Net income (loss) attributable
Slide 23: UGI Adjusted Net Income and EPS – Six Months
23 UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2017 Second Quarter Results Six Months Ended March 31, 2017 Total AmeriGas Propane UGI International Midstream & Marketing UGI Utilities Corporate & Other Adjusted net income attributable to UGI Corporation: Net income attributable to UGI C
Slide 24: EBITDA and Adjusted EBITDA Definitions
24 • The enclosed supplemental information contains a reconciliation of earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to Net Income. • EBITDA and Adjusted EBITDA are not measures of performance or financial condition under accounting pri
Slide 25: AmeriGas EBITDA and Adjusted EBITDA
25 AmeriGas EBITDA and Adjusted EBITDA UGI Corporation | Fiscal 2017 Second Quarter Results EBITDA and Adjusted EBITDA: FY16-Q2 FY17-Q2 Net income attributable to AmeriGas Partners, L.P. 245.9$ 135.1$ Income tax expense 0.3 0.6 Interest expense 40.8 40.0 Depreciation 36.5 34.4 Amortization 10.9 10.6
Slide 26: Investor Relations
26 Investor Relations: Will Ruthrauff 610-456-6571 [email protected]