Ugi Corporation · NYSE:UGI
Ugi — Q3 2019 Earnings Presentation
25 slides from Ugi's earnings presentation, Aug 6, 2019
Slide 1: Fiscal 2019 Third Quarter Results
Fiscal 2019 Third Quarter Results John L. Walsh President & CEO, UGI Corporation Ted J. Jastrzebski Chief Financial Officer, UGI Corporation Hugh J. Gallagher President & CEO, AmeriGas
Slide 2: About This Presentation
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’s
Slide 3: Third Quarter Recap
Third Quarter Recap 3 John L. Walsh President & CEO, UGI
Slide 4: Third Quarter Earnings Recap
Third Quarter Earnings Recap 1 • GAAP EPS of $(0.01) and Adjusted EPS of $0.13 • Averaged warmer-than-normal weather in domestic service territories; colder-than-normal weather at UGI International Adjusted EPS1 Q3 2019 Weather Versus: Normal Midstream & AmeriGas UGI International Marketing Gas Util
Slide 5: Key Accomplishments
Key Accomplishments • UGI Utilities filed a joint settlement petition with the PAPUC in late July for our first combined gas utilities rate case; the petition is currently under review and is expected to become effective by early Fall; added ~11,000 new residential and commercial heating customers Y
Slide 6: Third Quarter Financial Review
Third Quarter Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI
Slide 7: Third Quarter Adjusted Earnings
Third Quarter Adjusted Earnings ($ millions, except per share amounts) Q3 2018 Q3 2019 Net income (loss) attributable to UGI Corporation (GAAP) $52.4 $(1.9) Net (gains) losses on commodity derivative instruments1 (38.0) 25.0 Unrealized (gains) losses on foreign currency derivative instruments1 (17.7
Slide 8: Third Quarter Results Recap
Third Quarter Results Recap Adjusted EPS1 $0.01 $0.13 YTD Adjusted EPS1 $0.06 $2.792 $2.382 $0.09 ($0.03) $0.82 UGI Utilities $0.02 ($0.02) $0.79 $0.68 Midstream & Marketing $0.40 UGI 8.7% 69.3% 18.7% 30.6% $0.86 $0.79 Warmer Colder Warmer Warmer International than prior year $0.46 AmeriGas $0.43 Q3
Slide 9: Financial Results - AmeriGas
Financial Results - AmeriGas (Millions of dollars) Q3 FY18 Q3 FY19 Weather versus normal 1 Adjusted EBITDA $67.2 Colder Retail Margin (16.1) 9.6% Total Margin Wholesale and Other Total Margin 0.6 Partnership Operating and Administrative Expenses (10.2) Other Income and Expense, net 1.0 0% Adjusted E
Slide 10: Financial Results – UGI International
Financial Results – UGI International (Millions of dollars) Q3 FY18 Q3 FY19 Weather versus normal Income Before Taxes $3.0 Total Margin (11.2) Colder Operating and Administrative Expenses 17.1 Depreciation and Amortization 9.0 Interest Expense (0.3) Other Income and Expense, net 5.3 10.8% Income Bef
Slide 11: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing (Millions of dollars) Q3 FY18 Q3 FY19 Weather versus normal Income Before Taxes $8.2 Colder Total Margin (6.9) Operating and Administrative Expenses 3.0 5.1% Depreciation and Amortization (0.7) Interest Expense (0.2) (14.5)% Other Income and Expense, net 0.2
Slide 12: Financial Results – Utilities
Financial Results – Utilities (Millions of dollars) Q3 FY18 Q3 FY19 Weather versus normal Loss Before Taxes $(6.1) Total Margin 15.7 Colder Operating and Administrative Expenses 2.5 5.1% Depreciation (1.8) (27.1)% Interest Expense (2.4) Other Income and Expense, net 0.5 Income Before Taxes $8.4 Item
Slide 13: AmeriGas Third Quarter Recap
AmeriGas Third Quarter Recap Hugh J. Gallagher President and CEO, AmeriGas
Slide 14: Third Quarter Earnings Recap
Third Quarter Earnings Recap Adjusted EBITDA1 • Weather in Q3 was 8.7% warmer than (Millions of dollars) the prior-year period; April weather averaged 30% warmer than prior year $67.2 • Retail volumes decreased 6.7% • Cylinder Exchange and National Accounts volumes increased 4.5% and $42.5 0.6%, res
Slide 15: Growth Initiatives
Growth Initiatives Merger Transaction Home Delivery • Proxy Solicitation underway • Launched “Cynch” in the Philadelphia market in June • Unitholder Meeting scheduled Cylinder Exchange for August 21st • Completed expansion plans with major retailer and large convenience store chain • Transaction exp
Slide 16: Conclusion and Q&A
Conclusion and Q&A John L. Walsh President & CEO, UGI
Slide 17: Strategic Overview
Strategic Overview • CMG transaction closed on August 1st • All eligible members of the Columbia Midstream team have joined UGI • Expect to invest $300 - $500 million in a series of projects over the next 3 - 5 years • Short-term focus includes welcoming the new team, meeting the key customers and p
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix
Slide 20: UGI Supplemental Footnotes
UGI Supplemental Footnotes • 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
Slide 21: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2019 Third Quarter Results 22
Slide 22: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2019 Third Quarter Results 23
Slide 23: AmeriGas Supplemental Footnotes
AmeriGas Supplemental Footnotes • 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 c
Slide 24: AmeriGas EBITDA and Adjusted EBITDA
AmeriGas EBITDA and Adjusted EBITDA UGI Corporation | Fiscal 2019 Third Quarter Results 25
Slide 25: Investor Relations
Investor Relations: Brendan Heck Alanna Zahora 610-456-6608 610-337-1004 heckb@ugicorp.com zahoraa@ugicorp.com