Increases Fiscal Year 2018 Guidance Range
UGI Corporation (NYSE: UGI) reported financial results for the fiscal
quarter ended March 31, 2018.
HIGHLIGHTS
-
GAAP EPS of $1.57 and adjusted EPS of $1.69 per diluted share compared
to GAAP EPS of $1.24 and adjusted EPS of $1.31 per diluted share in
the prior year
-
Weather colder than the prior year in all service territories
-
Increased adjusted EPS guidance to a range of $2.70 to $2.80 per
diluted share for the fiscal year ending September 30, 2018
"This was a strong quarter for UGI and a strong first half of the fiscal
year," said John L. Walsh, president and chief executive officer of UGI
Corporation. "The business experienced weather that was relatively
normal in all service territories, and colder than the prior year.
Excluding the benefit of tax reform, first half adjusted EPS was more
than 50% higher than 2013, the last time the company experienced
comparable weather. When the benefits of tax reform are included, our
adjusted EPS growth over that period was almost 70%. This growth has
been delivered through the highly disciplined allocation of capital into
accretive projects across all of our businesses and a resolute focus on
operational efficiency. We are pleased with this performance but even
more excited for the future of the company as we see many opportunities
for growth."
Based on the results of the first half of the fiscal year and including
the impact of tax reform (other than one-time benefits), UGI is updating
its adjusted EPS guidance range from a range of $2.45 to $2.65 to a
range of $2.70 to $2.80 per diluted share for the fiscal year ending
September 30, 2018.1
KEY DRIVERS OF SECOND QUARTER RESULTS
-
AmeriGas: Retail volume up 9.9% on weather that was 14.2%
colder than the prior year; Cylinder Exchange and National Accounts
volumes both up more than 15%
-
UGI International: Volume up 9.9% on weather that was 6.3%
colder than the prior year and contributions from the UniverGas and
DVEP acquisitions
-
Midstream & Marketing: Weather 14.3% colder than prior
year; margin growth from Sunbury pipeline, peaking demand and electric
generation, as well as newly acquired Texas Creek gathering assets
-
UGI Utilities: Core market throughput up 15.1% on weather that
was 10.8% colder than prior year; added ~4,800 residential and
commercial heating customers
-
Tax Reform: The combined impact of tax reform legislation in
the United States and France was a net benefit to adjusted EPS of
$0.19 per diluted share in the quarter
1 See Note on Guidance and Use of Forward-Looking Statements
EARNINGS CALL and WEBCAST
UGI Corporation will hold a live Internet Audio Webcast of its
conference call to discuss second quarter earnings and other current
activities at 9:00 AM ET on Thursday, May 3, 2018. Interested parties
may listen to the audio webcast both live and in replay on the Internet
at http://www.ugicorp.com/investor-relations/events-and-presentations/default.aspx
or at the company website http://www.ugicorp.com
under Investor Relations. A telephonic replay will be available from
12:00 PM ET on May 3rd through 11:59 PM ET on May 10th. The replay may
be accessed at (855) 859-2056, and internationally at 1-404-537-3406,
conference ID 9597719.
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 primarily in the Mid-Atlantic region as
well as parts of Europe. 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.
USE OF NON-GAAP MEASURES
Management uses "adjusted diluted earnings per share," which is derived
from "adjusted net income attributable to UGI Corporation," both of
which are non-GAAP financial measures, when evaluating UGI's overall
performance. For the periods presented, adjusted net income attributable
to UGI Corporation is net income attributable to UGI Corporation after
excluding net after-tax gains and losses on commodity and certain
foreign currency derivative instruments not associated with
current-period transactions (principally comprising changes in
unrealized gains and losses on such derivative instruments), losses
associated with extinguishments of debt, Finagaz integration expenses,
and the impact on net deferred tax liabilities from a change in the
French tax rate and U.S. tax reform legislation. Volatility in net
income at UGI can occur as a result of gains and losses on commodity and
certain foreign currency 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
these non-GAAP measures provide meaningful information to investors
about UGI’s performance because they eliminate the impact of (1) gains
and losses on commodity and certain foreign currency derivative
instruments not associated with current-period transactions and (2)
other significant discrete items that can affect the comparison of
period-over-period results.
Tables beginning at "REPORT OF EARNINGS" below reconcile net income
attributable to UGI Corporation, the most directly comparable GAAP
measure, to adjusted net income attributable to UGI Corporation, and
diluted earnings per share, the most comparable GAAP measure, to
adjusted diluted earnings per share, to reflect the adjustments referred
to above.
NOTE ON GUIDANCE and USE OF FORWARD-LOOKING STATEMENTS
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 and certain foreign
currency derivative instruments, Finagaz integration expenses and
impacts from tax reform in the U.S. and France, we cannot reconcile 2018
adjusted earnings per share guidance, 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.
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, continued analysis of recent tax legislation,
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 availability, timing and success of
our acquisitions, commercial initiatives and investments to grow our
business, our ability to successfully integrate acquired businesses and
achieve anticipated synergies, and the interruption, disruption,
failure, malfunction, or breach of our information technology systems,
including due to cyber-attack. UGI undertakes no obligation to release
revisions to its forward-looking statements to reflect events or
circumstances occurring after today.
SEGMENT RESULTS ($ millions, except where otherwise indicated)
AmeriGas Propane1
|
|
|
|
|
|
|
|
|
For the fiscal quarter ended March 31,
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
Revenues
|
|
$
|
1,040.3
|
|
|
$
|
863.6
|
|
|
$
|
176.7
|
|
|
20.5
|
%
|
|
Total margin (a)
|
|
$
|
556.6
|
|
|
$
|
507.8
|
|
|
$
|
48.8
|
|
|
9.6
|
%
|
|
Partnership operating and administrative expenses
|
|
$
|
251.5
|
|
|
$
|
240.0
|
|
|
$
|
11.5
|
|
|
4.8
|
%
|
|
Operating income
|
|
$
|
266.6
|
|
|
$
|
227.3
|
|
|
$
|
39.3
|
|
|
17.3
|
%
|
|
Partnership Adjusted EBITDA
|
|
$
|
309.5
|
|
|
$
|
271.2
|
|
|
$
|
38.3
|
|
|
14.1
|
%
|
|
Retail gallons sold (millions)
|
|
398.5
|
|
|
362.7
|
|
|
35.8
|
|
|
9.9
|
%
|
|
Heating degree days - % (warmer) than normal (b)
|
|
(0.5
|
)%
|
|
(12.9
|
)%
|
|
|
|
|
|
Capital expenditures
|
|
$
|
23.6
|
|
|
$
|
27.2
|
|
|
$
|
(3.6
|
)
|
|
(13.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Retail gallons sold were 9.9% higher and temperatures were 14.2%
colder than the prior-year period.
-
Total margin increased primarily reflecting the higher volume and
slightly higher retail unit margin.
-
Partnership operating and administrative expenses increased primarily
reflecting higher compensation and vehicle expenses.
-
Partnership Adjusted EBITDA increased principally reflecting the
higher total margin, partially offset by the higher operating expenses.
1 UGI, through subsidiaries, is the sole General Partner and
owns 26% of AmeriGas Partners, L.P.
UGI International
|
|
|
|
|
|
|
|
|
For the fiscal quarter ended March 31,
|
|
2018
|
|
2017
|
|
Increase
|
|
Revenues
|
|
$
|
909.6
|
|
|
$
|
620.7
|
|
|
$
|
288.9
|
|
|
46.5
|
%
|
|
Total margin (a)
|
|
$
|
368.5
|
|
|
$
|
307.6
|
|
|
$
|
60.9
|
|
|
19.8
|
%
|
|
Operating and administrative expenses
|
|
$
|
199.5
|
|
|
$
|
159.6
|
|
|
$
|
39.9
|
|
|
25.0
|
%
|
|
Operating income
|
|
$
|
131.8
|
|
|
$
|
121.0
|
|
|
$
|
10.8
|
|
|
8.9
|
%
|
|
Income before income taxes
|
|
$
|
117.5
|
|
|
$
|
116.2
|
|
|
$
|
1.3
|
|
|
1.1
|
%
|
|
Finagaz integration expenses
|
|
$
|
11.3
|
|
|
$
|
6.7
|
|
|
$
|
4.6
|
|
|
68.7
|
%
|
|
Adjusted income before income taxes
|
|
$
|
128.8
|
|
|
$
|
122.9
|
|
|
$
|
5.9
|
|
|
4.8
|
%
|
|
LPG retail gallons sold (millions)
|
|
278.1
|
|
|
253.1
|
|
|
25.0
|
|
|
9.9
|
%
|
|
Heating degree days - % colder (warmer) than normal (b)
|
|
2.2
|
%
|
|
(3.9
|
)%
|
|
|
|
|
|
Capital expenditures
|
|
$
|
26.1
|
|
|
$
|
21.5
|
|
|
$
|
4.6
|
|
|
21.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base-currency results are translated into U.S. dollars based upon
exchange rates experienced during the reporting periods. During the
second quarter, the euro and British pound sterling were approximately
15% and 11% stronger, respectively, versus the U.S. dollar, compared
with the prior-year period. The effects of the stronger currencies did
not materially impact UGI International net income due to gains and
losses on foreign currency exchange contracts.
-
Retail volume increased due to incremental volumes from the UniverGas
acquisition that closed in October 2017, as well as higher volume at
the legacy businesses primarily reflecting weather that was 6.3%
colder than the prior-year period.
-
Total margin increased reflecting the translation effects of the
stronger euro and British pound sterling, incremental margin from the
UniverGas and DVEP acquisitions, and slightly higher retail volume at
the legacy businesses.
-
Operating expenses increased principally due to the effects of
currency translation as well as incremental expenses associated with
the DVEP and UniverGas acquisitions.
-
Operating income increased primarily reflecting the higher total
margin partially offset by higher operating and administrative costs
and depreciation and amortization expense.
-
Adjusted income before income taxes was higher reflecting higher
operating income adjusted for the effects of higher Finagaz
integration expenses, partially offset by losses on foreign currency
exchange contracts.
SEGMENT RESULTS ($ millions, except where otherwise indicated)
Midstream & Marketing
|
|
|
|
|
|
|
|
|
For the fiscal quarter ended March 31,
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
Revenues
|
|
$
|
565.2
|
|
|
$
|
423.7
|
|
|
$
|
141.5
|
|
|
33.4
|
%
|
|
Total margin (a)
|
|
$
|
146.6
|
|
|
$
|
113.9
|
|
|
$
|
32.7
|
|
|
28.7
|
%
|
|
Operating and administrative expenses
|
|
$
|
28.4
|
|
|
$
|
24.0
|
|
|
$
|
4.4
|
|
|
18.3
|
%
|
|
Operating income
|
|
$
|
107.5
|
|
|
$
|
82.1
|
|
|
$
|
25.4
|
|
|
30.9
|
%
|
|
Income before income taxes
|
|
$
|
107.6
|
|
|
$
|
83.8
|
|
|
$
|
23.8
|
|
|
28.4
|
%
|
|
Heating degree days - % (warmer) than normal (b)
|
|
(1.9
|
)%
|
|
(14.2
|
)%
|
|
|
|
|
|
Capital expenditures
|
|
$
|
4.3
|
|
|
$
|
20.8
|
|
|
$
|
(16.5
|
)
|
|
(79.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Temperatures across Midstream & Marketing's service territory were
1.9% warmer than normal and 14.3% colder than the prior year.
-
Total margin increased reflecting higher margin from midstream assets,
primarily the result of higher capacity management, peaking, and
natural gas gathering margin, as well as higher electric generation
margin.
-
Operating expenses increased principally reflecting higher wage and
benefit expenses and higher expenses associated with greater peaking,
LNG, and natural gas gathering activities.
-
Operating income and income before taxes increased primarily
reflecting the higher total margin, partially offset by higher
operating and administrative expenses, higher depreciation expense,
and a decrease in other income due to the absence of AFUDC income
related to the Sunbury pipeline.
-
Capital expenditures in the prior year include construction costs
associated with the Sunbury pipeline.
UGI Utilities
|
|
|
|
|
|
|
|
|
For the fiscal quarter ended March 31,
|
|
2018
|
|
2017
|
|
Increase (Decrease)
|
|
Revenues
|
|
$
|
483.3
|
|
|
$
|
360.0
|
|
|
$
|
123.3
|
|
|
34.3
|
%
|
|
Total margin (a)
|
|
$
|
224.6
|
|
|
$
|
194.2
|
|
|
$
|
30.4
|
|
|
15.7
|
%
|
|
Operating and administrative expenses
|
|
$
|
69.4
|
|
|
$
|
61.3
|
|
|
$
|
8.1
|
|
|
13.2
|
%
|
|
Operating income
|
|
$
|
135.1
|
|
|
$
|
116.4
|
|
|
$
|
18.7
|
|
|
16.1
|
%
|
|
Income before income taxes
|
|
$
|
124.0
|
|
|
$
|
106.1
|
|
|
$
|
17.9
|
|
|
16.9
|
%
|
|
Gas Utility system throughput - billions of cubic feet
|
|
|
|
|
|
|
|
|
|
Core market
|
|
38.9
|
|
|
33.8
|
|
|
5.1
|
|
|
15.1
|
%
|
|
Total
|
|
87.3
|
|
|
81.8
|
|
|
5.5
|
|
|
6.7
|
%
|
|
Gas Utility heating degree days - % (warmer) than normal (b)
|
|
(2.2
|
)%
|
|
(11.7
|
)%
|
|
|
|
|
|
Capital expenditures
|
|
$
|
55.1
|
|
|
$
|
56.5
|
|
|
$
|
(1.4
|
)
|
|
(2.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Gas Utility service territory experienced temperatures that were
approximately 2.2% warmer than normal and 10.8% colder than the prior
year.
-
Core market volumes increased due to colder weather and customer
growth.
-
Total margin increased primarily reflecting higher core market
throughput, higher large-firm delivery service margin, an increase in
PNG base rates, and higher electric utility distribution volume.
-
Operating and administrative expenses increased principally due to
higher uncollectible accounts and higher compensation and benefits
expenses.
-
Operating income and income before income taxes increased reflecting
the higher total margin, partially offset by the higher operating and
administrative expenses and increased depreciation expenses.
|
|
|
|
|
(a)
|
|
Total margin represents total revenue less total cost of sales and
excludes pre-tax gains and losses on commodity derivative
instruments not associated with current period transactions. In the
case of UGI Utilities, total margin is reduced by revenue-related
taxes.
|
|
(b)
|
|
Average temperatures based upon heating degree days for all of our
business segments presented are now based upon recent 15-year
periods as we believe more recent temperatures are a better
indication of normal weather. Prior period weather statistics have
been restated for AmeriGas Propane, Midstream & Marketing, and UGI
International, as appropriate, to conform to these new periods.
|
|
|
|
|
|
|
|
|
|
REPORT OF EARNINGS – UGI CORPORATION
|
|
|
|
|
|
|
|
(Millions of dollars, except per share)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
Twelve Months Ended
March 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmeriGas Propane
|
|
$
|
1,040.3
|
|
|
$
|
863.6
|
|
|
$
|
1,827.6
|
|
|
$
|
1,540.8
|
|
|
$
|
2,740.3
|
|
|
$
|
2,381.0
|
|
|
UGI International
|
|
909.6
|
|
|
620.7
|
|
|
1,693.8
|
|
|
1,159.8
|
|
|
2,411.5
|
|
|
1,871.7
|
|
|
Midstream & Marketing
|
|
565.2
|
|
|
423.7
|
|
|
893.2
|
|
|
693.5
|
|
|
1,320.9
|
|
|
1,034.4
|
|
|
UGI Utilities
|
|
483.3
|
|
|
360.0
|
|
|
806.4
|
|
|
621.4
|
|
|
1,072.6
|
|
|
869.9
|
|
|
Corporate & Other (a)
|
|
(186.4
|
)
|
|
(94.2
|
)
|
|
(283.8
|
)
|
|
(162.2
|
)
|
|
(340.7
|
)
|
|
(196.7
|
)
|
|
Total revenues
|
|
$
|
2,812.0
|
|
|
$
|
2,173.8
|
|
|
$
|
4,937.2
|
|
|
$
|
3,853.3
|
|
|
$
|
7,204.6
|
|
|
$
|
5,960.3
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmeriGas Propane
|
|
$
|
266.6
|
|
|
$
|
227.3
|
|
|
$
|
414.5
|
|
|
$
|
369.2
|
|
|
$
|
400.6
|
|
|
$
|
345.5
|
|
|
UGI International
|
|
131.8
|
|
|
121.0
|
|
|
224.9
|
|
|
209.9
|
|
|
210.7
|
|
|
219.9
|
|
|
Midstream & Marketing
|
|
107.5
|
|
|
82.1
|
|
|
159.8
|
|
|
131.8
|
|
|
167.2
|
|
|
157.8
|
|
|
UGI Utilities
|
|
135.1
|
|
|
116.4
|
|
|
231.4
|
|
|
198.6
|
|
|
261.1
|
|
|
236.7
|
|
|
Corporate & Other (a)
|
|
(51.5
|
)
|
|
(33.6
|
)
|
|
(49.3
|
)
|
|
69.9
|
|
|
(33.5
|
)
|
|
86.6
|
|
|
Total operating income
|
|
589.5
|
|
|
513.2
|
|
|
981.3
|
|
|
979.4
|
|
|
1,006.1
|
|
|
1,046.5
|
|
|
Income from equity investees
|
|
0.7
|
|
|
2.3
|
|
|
1.7
|
|
|
2.1
|
|
|
3.9
|
|
|
2.0
|
|
|
Loss on extinguishments of debt
|
|
—
|
|
|
(22.1
|
)
|
|
—
|
|
|
(55.3
|
)
|
|
(4.4
|
)
|
|
(104.2
|
)
|
|
(Losses) gains on foreign currency contracts, net
|
|
(11.0
|
)
|
|
(1.2
|
)
|
|
(15.8
|
)
|
|
0.1
|
|
|
(39.8
|
)
|
|
0.1
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmeriGas Propane
|
|
(41.0
|
)
|
|
(40.0
|
)
|
|
(81.6
|
)
|
|
(80.0
|
)
|
|
(161.8
|
)
|
|
(162.3
|
)
|
|
UGI International
|
|
(5.2
|
)
|
|
(4.8
|
)
|
|
(10.8
|
)
|
|
(9.6
|
)
|
|
(21.8
|
)
|
|
(21.0
|
)
|
|
Midstream & Marketing
|
|
(0.7
|
)
|
|
(0.7
|
)
|
|
(1.6
|
)
|
|
(1.3
|
)
|
|
(2.4
|
)
|
|
(2.1
|
)
|
|
UGI Utilities
|
|
(11.1
|
)
|
|
(10.3
|
)
|
|
(22.0
|
)
|
|
(20.3
|
)
|
|
(41.9
|
)
|
|
(39.1
|
)
|
|
Corporate & Other, net (a)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
(0.4
|
)
|
|
Total interest expense
|
|
(58.1
|
)
|
|
(55.8
|
)
|
|
(116.3
|
)
|
|
(111.2
|
)
|
|
(228.6
|
)
|
|
(224.9
|
)
|
|
Income before income taxes
|
|
521.1
|
|
|
436.4
|
|
|
850.9
|
|
|
815.1
|
|
|
737.2
|
|
|
719.5
|
|
|
Income tax (expense) benefit (b)
|
|
(113.4
|
)
|
|
(124.6
|
)
|
|
(9.0
|
)
|
|
(212.4
|
)
|
|
25.8
|
|
|
(203.9
|
)
|
|
Net income including noncontrolling interests
|
|
407.7
|
|
|
311.8
|
|
|
841.9
|
|
|
602.7
|
|
|
763.0
|
|
|
515.6
|
|
Deduct net income attributable to noncontrolling interests,
principally in AmeriGas Partners, L.P.
|
|
(131.7
|
)
|
|
(91.9
|
)
|
|
(200.0
|
)
|
|
(152.1
|
)
|
|
(135.1
|
)
|
|
(48.1
|
)
|
|
Net income attributable to UGI Corporation (b)
|
|
$
|
276.0
|
|
|
$
|
219.9
|
|
|
$
|
641.9
|
|
|
$
|
450.6
|
|
|
$
|
627.9
|
|
|
$
|
467.5
|
|
|
Earnings per share attributable to UGI shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.59
|
|
|
$
|
1.27
|
|
|
$
|
3.70
|
|
|
$
|
2.60
|
|
|
$
|
3.62
|
|
|
$
|
2.69
|
|
|
Diluted
|
|
$
|
1.57
|
|
|
$
|
1.24
|
|
|
$
|
3.63
|
|
|
$
|
2.55
|
|
|
$
|
3.55
|
|
|
$
|
2.64
|
|
|
Weighted Average common shares outstanding (thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
173,570
|
|
|
173,624
|
|
|
173,617
|
|
|
173,567
|
|
|
173,684
|
|
|
173,568
|
|
|
Diluted
|
|
176,350
|
|
|
177,136
|
|
|
176,646
|
|
|
176,976
|
|
|
176,938
|
|
|
177,135
|
|
|
Supplemental information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to UGI Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
AmeriGas Propane
|
|
$
|
49.8
|
|
|
$
|
32.0
|
|
|
$
|
191.4
|
|
|
$
|
48.6
|
|
|
$
|
187.4
|
|
|
$
|
33.9
|
|
|
UGI International
|
|
77.4
|
|
|
79.3
|
|
|
138.5
|
|
|
167.6
|
|
|
129.5
|
|
|
166.1
|
|
|
Midstream & Marketing
|
|
76.6
|
|
|
50.2
|
|
|
188.6
|
|
|
80.1
|
|
|
195.4
|
|
|
96.8
|
|
|
UGI Utilities
|
|
89.2
|
|
|
65.1
|
|
|
157.5
|
|
|
109.4
|
|
|
164.1
|
|
|
120.2
|
|
|
Corporate & Other (a)
|
|
(17.0
|
)
|
|
(6.7
|
)
|
|
(34.1
|
)
|
|
44.9
|
|
|
(48.5
|
)
|
|
50.5
|
|
|
Total net income attributable to UGI Corporation
|
|
$
|
276.0
|
|
|
$
|
219.9
|
|
|
$
|
641.9
|
|
|
$
|
450.6
|
|
|
$
|
627.9
|
|
|
$
|
467.5
|
|
|
|
|
|
|
(a)
|
|
Corporate & Other includes, among other things, net gains and
(losses) on commodity and certain foreign currency derivative
instruments not associated with current-period transactions and the
elimination of certain intercompany transactions.
|
|
(b)
|
|
Net income attributable to UGI Corporation for the three, six and
twelve months ended March 31, 2018 includes income from adjustments
to tax-related amounts resulting from the Tax Cuts and Jobs Act
("TCJA") enacted on December 22, 2017 of $5.3 million, $171.3
million and $171.3 million, respectively, and income (losses) from
adjustments to net deferred income tax liabilities in France as a
result of tax legislation in France approved December 21, 2017 of
$(3.7) million, $13.6 million and $15.2 million, respectively. Net
income attributable to UGI Corporation for the six and twelve months
ended March 31, 2017 includes the beneficial impact of a $27.4
million adjustment to net deferred income tax liabilities associated
with a change in the French tax rate and an income tax settlement
refund of $6.7 million, plus interest, in France.
|
|
|
|
REPORT OF EARNINGS
|
|
Millions of dollars, except per share
|
|
(Unaudited)
|
|
|
|
Non-GAAP Financial Measures - Adjusted
Net Income Attributable to UGI and Adjusted Diluted Earnings Per
Share
|
|
|
The following tables reconcile net income attributable to UGI
Corporation, the most directly comparable GAAP measure, to adjusted
net income attributable to UGI Corporation, and reconciles diluted
earnings per share, the most comparable GAAP measure, to adjusted
diluted earnings per share, to reflect the adjustments referred to
previously:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
Twelve Months Ended
March 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Adjusted net income attributable to UGI Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to UGI Corporation
|
|
$
|
276.0
|
|
|
$
|
219.9
|
|
|
$
|
641.9
|
|
|
$
|
450.6
|
|
|
$
|
627.9
|
|
|
$
|
467.5
|
|
Net losses (gains) on commodity derivative instruments not
associated with current-period transactions (net of tax of $(8.1),
$1.5, $(6.0), $34.8, $(8.9), and $33.9, respectively) (1)(2)
|
|
15.7
|
|
|
3.1
|
|
|
11.1
|
|
|
(49.1
|
)
|
|
9.0
|
|
|
(53.0
|
)
|
Unrealized losses on foreign currency derivative instruments (net of
tax of $(0.7), $(0.5), $(0.7), $0.1, $(10.7), and $0.1,
respectively) (2)
|
|
1.3
|
|
|
0.8
|
|
|
1.4
|
|
|
—
|
|
|
15.3
|
|
|
—
|
|
Loss on extinguishments of debt (net of tax of $0.0, $(2.3), $0.0,
$(5.7), $(0.4), and $(10.8), respectively) (2)
|
|
—
|
|
|
3.6
|
|
|
—
|
|
|
8.9
|
|
|
0.7
|
|
|
16.8
|
|
Integration expenses associated with Finagaz (net of tax of $(4.5),
$(2.3), $(5.2), $(5.1), $(13.8), and $(11.5), respectively) (2)
|
|
6.8
|
|
|
4.4
|
|
|
8.0
|
|
|
9.7
|
|
|
24.5
|
|
|
20.2
|
|
|
Impact from change in French tax rates
|
|
3.7
|
|
|
—
|
|
|
(13.6
|
)
|
|
(27.4
|
)
|
|
(15.2
|
)
|
|
(27.4
|
)
|
|
Impact from TCJA
|
|
(5.3
|
)
|
|
—
|
|
|
(171.3
|
)
|
|
—
|
|
|
(171.3
|
)
|
|
—
|
|
|
Adjusted net income attributable to UGI Corporation
|
|
$
|
298.2
|
|
|
$
|
231.8
|
|
|
$
|
477.5
|
|
|
$
|
392.7
|
|
|
$
|
490.9
|
|
|
$
|
424.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UGI Corporation earnings per share — diluted
|
|
$
|
1.57
|
|
|
$
|
1.24
|
|
|
$
|
3.63
|
|
|
$
|
2.55
|
|
|
$
|
3.55
|
|
|
$
|
2.64
|
|
Net losses (gains) on commodity derivative instruments not
associated with current-period transactions (1)
|
|
0.08
|
|
|
0.02
|
|
|
0.06
|
|
|
(0.28
|
)
|
|
0.05
|
|
|
(0.30
|
)
|
|
Unrealized losses on foreign currency derivative instruments (1)
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
|
Loss on extinguishments of debt
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
|
0.09
|
|
|
Integration expenses associated with Finagaz
|
|
0.04
|
|
|
0.02
|
|
|
0.05
|
|
|
0.05
|
|
|
0.14
|
|
|
0.11
|
|
|
Impact from change in French tax rates
|
|
0.02
|
|
|
—
|
|
|
(0.08
|
)
|
|
(0.15
|
)
|
|
(0.09
|
)
|
|
(0.15
|
)
|
|
Impact from TCJA
|
|
(0.03
|
)
|
|
—
|
|
|
(0.97
|
)
|
|
—
|
|
|
(0.97
|
)
|
|
—
|
|
|
Adjusted diluted earnings per share
|
|
$
|
1.69
|
|
|
$
|
1.31
|
|
|
$
|
2.70
|
|
|
$
|
2.22
|
|
|
$
|
2.77
|
|
|
$
|
2.39
|
|
|
|
|
|
|
(1)
|
|
Includes the impact of rounding.
|
|
(2)
|
|
Income taxes associated with pre-tax adjustments determined using
statutory business unit tax rates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2018
|
|
Total
|
|
AmeriGas
Propane
|
|
UGI
International
|
|
Midstream
& Marketing
|
|
UGI
Utilities
|
|
Corporate
& Other
|
|
Adjusted net income attributable to UGI Corporation (millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to UGI Corporation
|
|
$
|
276.0
|
|
|
$
|
49.8
|
|
|
$
|
77.4
|
|
|
$
|
76.6
|
|
|
$
|
89.2
|
|
|
$
|
(17.0
|
)
|
Net losses on commodity derivative instruments not associated with
current-period transactions (net of tax of $(8.1)) (a)
|
|
15.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.7
|
|
Unrealized losses on foreign currency derivative instruments (net of
tax of $(0.7)) (a)
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
Integration expenses associated with Finagaz (net of tax of $(4.5))
(a)
|
|
6.8
|
|
|
—
|
|
|
6.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Impact of French Finance Bill
|
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Impact from TCJA
|
|
(5.3
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(5.1
|
)
|
|
Adjusted net income (loss) attributable to UGI Corporation
|
|
$
|
298.2
|
|
|
$
|
49.8
|
|
|
$
|
87.7
|
|
|
$
|
76.6
|
|
|
$
|
89.2
|
|
|
$
|
(5.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UGI Corporation earnings (loss) per share — diluted
|
|
$
|
1.57
|
|
|
$
|
0.28
|
|
|
$
|
0.44
|
|
|
$
|
0.43
|
|
|
$
|
0.51
|
|
|
$
|
(0.09
|
)
|
Net losses on commodity derivative instruments not associated with
current-period transactions (b)
|
|
0.08
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.08
|
|
|
Unrealized losses on foreign currency derivative instruments
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
Integration expenses associated with Finagaz
|
|
0.04
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Impact of French Finance Bill
|
|
0.02
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Impact from TCJA
|
|
(0.03
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.03
|
)
|
|
Adjusted diluted earnings (loss) per share
|
|
$
|
1.69
|
|
|
$
|
0.28
|
|
|
$
|
0.50
|
|
|
$
|
0.43
|
|
|
$
|
0.51
|
|
|
$
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2017
|
|
Total
|
|
AmeriGas
Propane
|
|
UGI
International
|
|
Midstream
& Marketing
|
|
UGI
Utilities
|
|
Corporate
& Other
|
|
Adjusted net income attributable to UGI Corporation (millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to UGI Corporation
|
|
$
|
219.9
|
|
|
$
|
32.0
|
|
|
$
|
79.3
|
|
|
$
|
50.2
|
|
|
$
|
65.1
|
|
|
$
|
(6.7
|
)
|
Net losses on commodity derivative instruments not associated with
current-period transactions (net of tax of $1.5) (a)
|
|
3.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
Unrealized losses on foreign currency derivative instruments (net of
tax of $(0.5)) (a)
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
Loss on extinguishment of debt (net of tax of $(2.3)) (a)
|
|
3.6
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Integration expenses associated with Finagaz (net of tax of $(2.3))
(a)
|
|
4.4
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted net income (loss) attributable to UGI Corporation
|
|
$
|
231.8
|
|
|
$
|
35.6
|
|
|
$
|
83.7
|
|
|
$
|
50.2
|
|
|
$
|
65.1
|
|
|
$
|
(2.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UGI Corporation earnings (loss) per share - diluted
|
|
$
|
1.24
|
|
|
$
|
0.18
|
|
|
$
|
0.45
|
|
|
$
|
0.28
|
|
|
$
|
0.37
|
|
|
$
|
(0.04
|
)
|
Net losses on commodity derivative instruments not associated with
current-period transactions
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
Unrealized losses on foreign currency derivative instruments (b)
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
Loss on extinguishment of debt
|
|
0.02
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Integration expenses associated with Finagaz
|
|
0.02
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted diluted earnings (loss) per share
|
|
$
|
1.31
|
|
|
$
|
0.20
|
|
|
$
|
0.47
|
|
|
$
|
0.28
|
|
|
$
|
0.37
|
|
|
$
|
(0.01
|
)
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180502006758/en/
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