UGI Corporation (NYSE: UGI) today announced that it expects to report
diluted earnings per share of $1.98 to $2.08 and continues to expect
adjusted diluted earnings per share to be at the upper end, or slightly
above, our guidance range of $1.95 to $2.05 per share for the fiscal
year ended September 30, 2016. A reconciliation of the expected adjusted
diluted earnings per share to the expected GAAP diluted earnings per
share, as well as the information about why management believes that the
non-GAAP financial measures set forth in this release provide useful
information to investors about the company’s results of operations, are
set forth at the end of this release.
John L. Walsh, president and chief executive officer of UGI, said, "In
conjunction with the guidance revision issued today by AmeriGas, we
wanted to confirm that we expect adjusted earnings to be at the upper
end, or slightly above, our guidance range. This has been a year of
strong execution during which we made significant progress on our growth
initiatives and anticipate delivering record EPS in spite of warm
weather.”
Walsh continued, “We are pleased to announce our guidance for fiscal
year 2017. Assuming normal weather patterns and excluding mark-to-market
gains and losses on commodity derivative instruments and Finagaz
integration expenses, we expect to report adjusted diluted earnings of
$2.30 to $2.45 per share for the year ending September 30, 2017.”
UGI will provide more details on the full-year fiscal year 2016
performance and expectations for fiscal year 2017 during its earnings
call on November 10, 2016.
Because we are unable to predict certain potentially material items
affecting diluted earnings per share on a GAAP basis, principally
mark-to-market gains and losses on commodity derivative instruments and
Finagaz integration expenses, we cannot reconcile 2017 adjusted diluted
earnings per share, a non-GAAP measure, to diluted earnings per share,
the most directly comparable GAAP measure, in reliance on the
“unreasonable efforts” exception set forth in SEC rules.
About UGI
UGI is a distributor and marketer of energy products and services.
Through subsidiaries, UGI operates natural gas and electric utilities in
Pennsylvania, distributes propane both domestically and internationally,
manages midstream energy and electric generation assets in Pennsylvania,
and engages in energy marketing in the Mid-Atlantic region. UGI, through
subsidiaries, is the sole General Partner and owns 26% of AmeriGas
Partners, L.P. (NYSE:APU), the nation's largest retail propane
distributor.
Comprehensive information about UGI Corporation is available on the
Internet at http://www.ugicorp.com.
This press release 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’s
control. You should read UGI’s Annual Report on Form 10-K for a more
extensive list of factors that could affect results. Among them are
adverse weather conditions, cost volatility and availability of all
energy products, including propane, natural gas, electricity and fuel
oil, increased customer conservation measures, the impact of pending and
future legal proceedings, domestic and international political,
regulatory and economic conditions in the United States and in foreign
countries, including the current conflicts in the Middle East, and
foreign currency exchange rate fluctuations (particularly the euro), the
timing of development of Marcellus Shale gas production, the timing and
success of our acquisitions, commercial initiatives and investments to
grow our business, and our ability to successfully integrate acquired
businesses and achieve anticipated synergies. UGI undertakes no
obligation to release revisions to its forward-looking statements to
reflect events or circumstances occurring after today.
Non-GAAP Financial Measures - Adjusted Diluted
Earnings Per Share
Management uses "adjusted diluted earnings per share," a non-GAAP
financial measure, when evaluating UGI's overall performance. For the
period presented, adjusted diluted earnings per share excludes net
after-tax gains and losses on commodity derivative instruments not
associated with current period transactions, losses associated with
extinguishments of debt and Finagaz integration and acquisition
expenses. Volatility in diluted earnings per share at UGI can occur as a
result of gains and losses on commodity derivative instruments not
associated with current period transactions but included in earnings in
accordance with U.S. generally accepted accounting principles ("GAAP").
Non-GAAP financial measures are not in accordance with, or an
alternative to, GAAP and should be considered in addition to, and not as
a substitute for, the comparable GAAP measures. Management believes that
this non-GAAP measure provides meaningful information to investors about
UGI’s performance because it eliminates the impact of (1) gains and
losses on commodity derivative instruments not associated with
current-period transactions and (2) other discrete items that can affect
the comparison of period-over-period results.
The following table includes a reconciliation of forecasted diluted
earnings per share to forecasted adjusted diluted earnings per share for
the fiscal year ended September 30, 2016, and is subject to change based
on the finalization of management’s financial close procedures:
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Forecast Fiscal Year Ended
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September 30, 2016
(Unaudited)
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(Low End)
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(High End)
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UGI Corporation earnings per share - diluted (estimate)
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$
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1.98
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$
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2.08
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Net gains on commodity derivative instruments not associated with
current-period transactions (estimate)
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(0.17
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)
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(0.17
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Integration and acquisition expenses associated with Finagaz
(estimate)
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0.10
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0.10
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Loss on extinguishment of debt (estimate)
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0.04
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0.04
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Adjusted diluted earnings per share (estimate)
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$
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1.95
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$
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2.05
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