Ugi Corporation · NYSE:UGI
Ugi — Q1 FY2018 Earnings Presentation
27 slides from Ugi's earnings presentation, Feb 1, 2018
Slide 1: Fiscal 2018 First Quarter Results
1 Fiscal 2018 First Quarter Results John L. Walsh President & CEO, UGI Corporation Kirk R. Oliver Chief Financial Officer, UGI Corporation Jerry E. Sheridan President & CEO, AmeriGas Partners
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: First Quarter Recap
3 John Walsh President & CEO, UGI First Quarter Recap John L. Walsh President & CEO, UGI
Slide 4: Q1 Earnings Recap
4 Q1 Earnings Recap • Adjusted EPS up ~11% versus prior year period • Tax rate changes in the U.S. and France contributed $0.09, net Adjusted EPS is a non-GAAP measure. See Appendix for reconciliation. $0.91 $1.01 Q1 2017 Q1 2018 Adjusted EPS AmeriGas UGI International Gas Utility Midstream & Market
Slide 5: Key Accomplishments
5 Key Accomplishments UGI Corporation | Fiscal 2018 First Quarter Results • The PennEast Pipeline received final FERC certificate on January 19th and we expect construction to begin by the end of 2018 • Strong LNG demand driven by increased peak day demand and capacity constraints • Gas Utility adde
Slide 6: First Quarter Financial Review
6 John Walsh President & CEO, UGI First Quarter Financial Review Kirk R. Oliver Chief Financial Officer, UGI
Slide 7: Q1 Adjusted Earnings
7 Q1 2017 Q1 2018 Net income attributable to UGI Corporation (GAAP) $230.7 $365.9 Net gains on commodity derivative instruments1,3 (52.2) (4.6) Unrealized (gains) losses on foreign currency derivative instruments1 (0.8) 0.1 Integration expenses associated with Finagaz1 5.3 1.2 Loss on extinguishment
Slide 8: Summary of Q1 Tax Adjustments
8 One-time benefit First fiscal quarter U.S. Tax Cuts and Jobs Act $0.94 $0.12 French Finance Bill $0.10 $(0.03) Net Impact $1.04 $0.09 Included in adjusted EPS No Yes Summary of Q1 Tax Adjustments Adjusted EPS is a non-GAAP measure. See appendix for reconciliation.UGI Corporation | Fiscal 2018 Firs
Slide 9: Q1 Results Recap
9 Q1 Results Recap Adjusted EPS is a non-GAAP measure. See appendix for reconciliation.UGI Corporation | Fiscal 2018 First Quarter Results AmeriGas $0.12 - $0.01$0.03 $0.16 UGI International 0.38 (0.03) (0.01)(0.03) 0.31 Midstream & Marketing 0.17 - 0.010.03 0.21 UGI Utilities 0.25 - 0.040.05 0.34 C
Slide 10: Financial Results – AmeriGas
10 Q1 2017 Q1 2018 Adjusted EBITDA $185.1 Retail Margin 2.6 Wholesale and Other Total Margin 2.1 Partnership Operating and Administrative Expenses (3.5) Other Income and Expense, net 7.8 Adjusted EBITDA $194.1 Financial Results – AmeriGas Q1 2017 Q1 2018 colder warmer (13.5)% (10.3)% Weather versus
Slide 11: Financial Results – UGI International
11 Q1 2017 Q1 2018 Income Before Taxes $84.0 Total Margin 18.3 Operating and Administrative Expenses (8.3) Depreciation and Amortization (4.3) Interest Expense (0.8) Other Income and Expense, net (6.3) Income Before Taxes $82.6 Integration Expenses 8.1 1.9 Adjusted Income Before Taxes $92.1 $84.5 Fi
Slide 12: Financial Results – Midstream & Marketing
12 Q1 2017 Q1 2018 Income Before Taxes $ 49.1 Total Margin 11.0 Operating and Administrative Expenses (3.7) Depreciation and Amortization (2.1) Other Income and Expenses, net (1.7) Income Before Taxes $52.6 Financial Results –Midstream & Marketing Q1 2017 Q1 2018 colder warmer (6.8)% (14.5)% Weather
Slide 13: Financial Results – Utilities
13 Q1 2017 Q1 2018 Income Before Taxes $72.2 Total Margin 19.4 Operating and Administrative Expenses (2.4) Depreciation and Amortization (3.0) Interest Expense (0.9) Other Income and Expense, net 0.1 Income Before Taxes $85.4 Financial Results – Utilities Q1 2017 Q1 2018 colder warmer (1.9)%(6.3)% G
Slide 14: AmeriGas First Quarter Recap
14 A m eriG as Jerry Sheridan President & CEO, AmeriGas AmeriGas First Quarter Recap Jerry E. Sheridan President & CEO, AmeriGas
Slide 15: AmeriGas Q1 2018 Earnings Recap
15 -1.4% -6.6% -10.3% -10.1% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% Q1 Q1 Excluding last week of December FY18 FY17 • Volume flat due to fairly uneven weather throughout the quarter • Impact of late-December weather experienced after quarter-end • 9.9% colder versus prior year; 3.8% colder exclu
Slide 16: Transport Fleet Responds to Ensure Security of Supply
16 Transport Fleet Responds to Ensure Security of Supply $551.2 Northeast Southeast UGI Corporation | Fiscal 2018 First Quarter Results • Each green dot is an AmeriGas transport truck • We moved significant transport assets eastward to keep service levels high
Slide 17: Growth Initiatives
17 Growth Initiatives Cylinder Exchange • Demand remains high • Volume was up 9% vs. Q1 2017 National Accounts • Added 11 new customers in Q1 • Volume was up 7% vs. Q1 2017 Acquisitions • No acquisitions in the quarter • Pipeline remains strong UGI Corporation | Fiscal 2018 First Quarter Results
Slide 18: Conclusion and Q&A
18 Conclusion and Q&A John L. Walsh President & CEO, UGI
Slide 19: Key Growth Drivers
19 Key Growth Drivers • The extreme cold weather in the eastern U.S. in late December /early January highlights need for continued investment in Nat Gas infrastructure • PennEast will deliver incremental new pipeline capacity to areas in need • Seeking opportunities to expand our existing midstream
Slide 20: Q&A
20 Q&A
Slide 21: Appendix
ANNE RIMNING
Slide 22: Non-GAAP Measures Definitions – UGI
22 • 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 23: UGI Adjusted Net Income and EPS, Quarter Ended December 31, 2017
23 UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2018 First Quarter Results Quarter Ended December 31, 2017 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 365.9 $ 141.6 $ 61.1 $ 112.0 $ 68.3 $ (17.1) Net gains on commodity derivative inst
Slide 24: UGI Adjusted Net Income and EPS, Quarter Ended December 31, 2016
24 UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2018 First Quarter Results Quarter Ended December 31, 2016 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation $ 230.7 $ 16.6 $ 88.3 $ 29.9 $ 44.3 $ 51.6 Net gains on commodity derivative instrume
Slide 25: EBITDA and Adjusted EBITDA Definitions
25 • 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 GAAP. Manageme
Slide 26: AmeriGas EBITDA and Adjusted EBITDA
26 AmeriGas EBITDA and Adjusted EBITDA UGI Corporation | Fiscal 2018 First Quarter Results (Mil l ions of dol lars) EBITDA and Adjusted EBITDA Net income attributable to AmeriGas Partners $ 104.4 $ 92.0 Income tax expense Interest expense Depreciation Amortization BITD 194.8 177.4 Subtract net gains
Slide 27: Investor Relations
27 Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com Brendan Heck 610-456-6608 heckb@ugicorp.com