UGI Corporation · NYSE:UGI
UGI — Q3 2018 Earnings Presentation
26 slides from UGI's earnings presentation, Aug 2, 2018
Slide 1: Fiscal Third Quarter Results
Fiscal Third Quarter Results August 2, 2018 John L. Walsh President & CEO, UGI Corporation Ted J. Jastrzebski Chief Financial Officer, UGI Corporation Jerry E. Sheridan President & CEO, AmeriGas Partners 1
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 John L. Walsh President & CEO, UGI 3
Slide 4: Q3 Earnings Recap
Q3 Earnings Recap • Underlying performance of businesses Adjusted EPS remained strong • Q3 2018 includes a $0.09 reserve for tax savings at the Utility $0.09 $0.09 • Excluding reserve, Adjusted EPS nearly doubled results from Q3 2017 Expect full-year Adjusted EPS to be within current guidance range
Slide 5: Third Quarter Overview
Third Quarter Overview • Gas Utility has added over 11,000 new residential and commercial heating customers YTD and remains on pace with its infrastructure replacement program • Sunbury and Texas Creek projects contributed positively this quarter; continue to benefit from our diverse asset network i
Slide 6: Third Quarter Financial Review
Third Quarter Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI 6
Slide 7: Q3 Adjusted Earnings
Q3 Adjusted Earnings Q3 2017 Q3 2018 ($ millions, except per share amounts) Net (loss) income attributable to UGI Corporation (GAAP) $(19.0) $52.4 Net loss (gains) on commodity derivative instruments1 19.8 (38.0) Unrealized losses (gains) on foreign currency derivative instruments1 10.5 (17.7) Integ
Slide 8: Adjusted EPS
Q3 Results Recap Excluding reserve associated with PA PUC Order, Adjusted EPS nearly doubled results from Q3 2017 $0.01 $0.01 $0.01 $0.04 Adjusted EPS $0.02 $(0.09) $0.09 $0.09 21.3% 32.6% 26.8% 33.3% colder warmer colder colder than prior year Q3 2017 AmeriGas UGI International Midstream & UGI Util
Slide 9: PA PUC Order
PA PUC Order • On May 17, 2018 the PA PUC Impact of PA PUC Order required utilities to establish a regulatory liability for tax benefits Period Relates to Revenue After-tax Recorded (period) Reduction earnings EPS Impact for the period Jan.1st – June 30th impact • Result of federal tax rate change Q
Slide 10: Financial Results – AmeriGas
Financial Results – AmeriGas Weather versus normal ($ millions) Q3 2017 Q3 2018 colder Adjusted EBITDA $58.4 Retail Margin 13.0 Total margin Wholesale and Other Total Margin 0.9 Partnership Operating and Administrative Expenses (5.0) (9.6)% 9.6% Other Income, net (0.1) Adjusted EBITDA $67.2 (9.6)% Q
Slide 11: Financial Results – UGI International
Financial Results – UGI International ($ millions) Q3 2017 Q3 2018 Weather versus Loss Before Taxes $(5.2) normal Total Margin 46.2 colder Operating and Administrative Expenses (32.2) Depreciation and Amortization (8.7) Interest Expense 0.1 Other Income, net 2.8 Q3 2017 Q3 2018 Income Before Taxes $
Slide 12: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing ($ millions) Q3 2017 Q3 2018 Weather versus normal Income Before Taxes $3.3 colder Total Margin 15.4 Operating and Administrative Expenses (7.3) Depreciation and Amortization (2.3) Interest Expense (0.2) (17.1)% 5.1% Other Income, net (0.7) Income Before Tax
Slide 13: Financial Results – Utilities
Financial Results – Utilities ($ millions) Q3 2017 Q3 2018 Gas Utility weather versus Income Before Taxes $17.5 normal Total Margin1 15.4 colder Impact of PA PUC Order (22.7) Operating and Administrative Expenses (6.9) Depreciation and Amortization (3.5) (21.2)% 5.1% Interest Expense 0.1 Other Incom
Slide 14: AmeriGas Third Quarter Recap
AmeriGas Third Quarter Recap AmeriGas Jerry E. Sheridan President & CEO, AmeriGas 14
Slide 15: AmeriGas Q3 2018 Earnings Recap
AmeriGas Q3 2018 Earnings Recap Adjusted EBITDA1 • Adjusted EBITDA increased 15% compared to Q3 2017 75 $185.1 ($ in millions) $67.2 • Volume up 4% due to cold and wet April weather 65 $551.2 $58.4 • Unit margins up slightly despite average costs at Mt. 55 Belvieu that were ~40% higher than prior ye
Slide 16: Growth Initiatives
Growth Initiatives Cylinder Exchange • Volume flat vs. Q3 2017; up 7% YTD • Total locations up 6% vs. Q3 2017 National Accounts • Volume was up 11% vs. Q3 2017 due to April weather • YTD volume up 12% vs. Q3 2017 Q3 Acquisitions • Acquired a business that is expected to add 3 million gallons annuall
Slide 17: Conclusion and Q&A
Conclusion Investor Relations:and Q&A Will Ruthrauff John L. Walsh Brendan Heck 610-456-6571 President & CEO, UGI 610-456-6608 ruthrauffw@ugicorp.com heckb@ugicorp.com 17
Slide 18: Key Growth Drivers
Key Growth Drivers Natural Gas Infrastructure LPG and International • Continue to identify and develop broad range of • Focus on National Accounts continues to fuel new investments as demand for natural gas volume growth continues to grow • PennEast – Working through permit • Innovative strategies t
Slide 19: Q&A
Q&A 19
Slide 20: Appendix
APPENDIX 20
Slide 21: 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 22: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS Quarter Ended June 3 0 , 2 0 1 8 AmeriGas UGI Midstream & Corporate & Total UGI Utilities ( Mi l l i ons of dol l a rs , except per s ha re) P ropane International Marketing O ther Adjusted net inc ome attributable to UGI Corporation: Net income (loss) attributable to
Slide 23: UGI Adjusted Net Income and EPS
UGI Adjusted Net Income and EPS Midstream Quarter Ended June 3 0 , 2 0 1 7 AmeriGas UGI Corporate Total & UGI Utilities ( Mi l l i ons of dol l a rs except per s ha re) P ropane International & O ther Marketing Adjusted net inc ome attributable to UGI Corporation: Net income (loss) attributable to U
Slide 24: 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 25: AmeriGas EBITDA and Adjusted EBITDA
AmeriGas EBITDA and Adjusted EBITDA (Millions of dollars) Quarter Ended June 30, 2018 2017 EBITDA and Adjusted EBITDA Net loss attributable to AmeriGas Partners $ (74.4) $ (46.8) Income tax expense (a) 0.7 0.6 Interest expense 40.4 40.6 Depreciation 36.0 35.5 Amortization 10.4 10.7 EBITDA 13.1 40.6
Slide 26: Investor Relations
Investor Relations: Brendan Heck 610-456-6608 heckb@ugicorp.com 26