Ugi Corporation · NYSE:UGI
Ugi — Q3 FY2020 Earnings Presentation
26 slides from Ugi's earnings presentation, Aug 4, 2020
Slide 1: Fiscal 2020 Third Quarter Results
Fiscal 2020 Third Quarter Results John L. Walsh President & CEO, UGI Corporation Ted J. Jastrzebski Chief Financial Officer, UGI Corporation Robert F. Beard Executive Vice President Natural Gas, UGI Corporation Roger Perreault Executive Vice President Global LPG, UGI Corporation 1
Slide 2: About This Presentation
About This Presentation This presentation contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities and Exchange Act of 1934, as amended). Management believes that these are reasonable as of today’s date only. Actual results may d
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 • GAAP EPS of $0.41 and Adjusted EPS1 of $0.08 • Colder-than-normal weather in domestic service territories partially offset negative impact of COVID-19 pandemic; warmer-than-normal weather at UGI International Adjusted EPS1 Q3 2020 Weather Versus: Normal Midstream & Ame
Slide 5: Key Accomplishments
Key Accomplishments • UGI’s businesses adopted new protocols focused on the safety of our employees, our customers, and the public. • Midstream & Marketing continued to see the benefits from the UGI Appalachia acquisition. • AmeriGas delivered solid EBIT improvement due to cold weather and focused e
Slide 6: Year-to-Date Results Recap
Year-to-Date Results Recap • YTD GAAP EPS of $2.49 compared to GAAP EPS of $1.73 in the prior-year period YTD Adjusted EPS1 $2.813 $2.382 $0.70 $0.79 UGI Utilities $0.44 Midstream & $0.40 Marketing $0.65 $0.79 UGI International $0.94 $0.43 AmeriGas Q3 2019 Q3 2020 1Adjusted EPS is a non-GAAP measure
Slide 7: Third Quarter Financial Review
Third Quarter Financial Review Ted J. Jastrzebski Chief Financial Officer, UGI
Slide 8: FY 2020 Guidance Update
FY 2020 Guidance Update Based on strong third quarter performance and tax benefits2, UGI increases FY 2020 adjusted EPS guidance to a range of $2.45 - $2.551 per share, inclusive of COVID-19 impacts $2.55 $2.35 $2.45 $2.15 Prior Guidance Updated Guidance 1Because we are unable to predict certain pot
Slide 9: Liquidity Update
Liquidity Update • Cash flows remain strong • Cash provided by Operating Activities and Free Cash Flows both grew 4% and 19%, respectively, versus the same period a year ago • Strong balance sheet position - total available liquidity as of 6/30/20: $1.6 billion • Natural Gas and Global LPG businesse
Slide 10: Third Quarter Adjusted diluted earnings (loss) per share
Third Quarter Adjusted diluted earnings (loss) per share Q3 2019 Q3 2020 YTD 2019 YTD 2020 AmeriGas Propane $(0.01) $(0.07) $0.43 $0.94 UGI International 0.08 (0.05) 0.79 0.65 Midstream & Marketing 0.01 0.03 0.40 0.44 UGI Utilities 0.04 0.02 0.79 0.70 Corporate & Other (a) (0.13) 0.48 (0.68) (0.24)
Slide 11: Third Quarter Results Recap
Third Quarter Results Recap Reportable Segments EBIT1 (Millions of dollars) $16.1 $0.1 $20.0 $(8.4) $80.4 14.5% 20.8% 43.0% 54.4% $52.6 Colder Warmer Colder Colder than prior year Q3 2019 AmeriGas UGI International Midstream & UGI Utilities Q3 2020 Marketing 1Reportable segments earnings before inte
Slide 12: Financial Results - AmeriGas
Financial Results - AmeriGas (Millions of dollars) Q3 FY 2019 Q3 FY 2020 Weather versus normal Loss Before Interest Expense & Income Taxes $(1.2) Total Margin 4.6 14.5% Operating and Administrative Expenses 22.6 Depreciation and Amortization (1.0) Other Income and Expense, net (6.2) 0% Earnings Befo
Slide 13: Financial Results – UGI International
Financial Results – UGI International (Millions of dollars) Q3 FY 2019 Q3 FY 2020 Weather versus normal Earnings Before Interest Expense & Income Taxes $28.7 Colder Total Margin (30.2) Operating and Administrative Expenses 23.4 10.8% Other Income and Expense, net (1.6) Earnings Before Interest Expen
Slide 14: Financial Results – Midstream & Marketing
Financial Results – Midstream & Marketing (Millions of dollars) Q3 FY 2019 Q3 FY 2020 Weather versus normal Earnings Before Interest Expense & Income Taxes $4.3 Colder Total Margin 21.4 21.4% Operating and Administrative Expenses (3.8) Depreciation and Amortization (7.6) Other Income and Expense, ne
Slide 15: Financial Results – Utilities
Financial Results – Utilities (Millions of dollars) Q3 FY 2019 Q3 FY2020 Weather versus normal Earnings Before Interest Expense & Income Taxes $20.8 Colder Total Margin 8.2 Operating and Administrative Expenses (3.2) 12.6% Depreciation (3.4) Other Income and Expense, net (1.5) (27.1)% Q3 2020 Earnin
Slide 16: Update on Natural Gas Business
Update on Natural Gas Business Robert F. Beard Executive Vice President Natural Gas, UGI
Slide 17: Natural Gas Business Update
Natural Gas Business Update Solid 3rd quarter performance driven by: • Strong performance at UGI Appalachia • Cold weather coupled with strong customer usage offset the effects of COVID-19 at the Utilities Significant progress on strategic initiatives • Continue to execute on our capital program at
Slide 18: Update on Global LPG Business
Update on Global LPG Business Roger Perreault Executive Vice President Global LPG, UGI
Slide 19: Global LPG Business Update
Global LPG Business Update Solid 3rd quarter performance driven by: • Effective expense management • AmeriGas cylinder sales • 30% volume increase from prior year • Increase in demand for home delivery service, Cynch • Added ~38K customers during Q3; 57K customers total • LPG Business Transformation
Slide 20: ESG Update and Q&A
ESG Update and Q&A John L. Walsh President & CEO, UGI
Slide 21: ESG Update
ESG Update • Continue to address the challenges presented by the pandemic and remain focused on the health and safety of our employees, customers, and the communities we serve • Addressing UGI’s role in the fight against racial inequality in our society • Issued 2nd ESG Report entitled Today’s Energ
Slide 22: Q&A
Q&A 22
Slide 23: Appendix
Appendix
Slide 24: Third Quarter Adjusted Net Income
Third Quarter Adjusted Net Income (Dollars in millions) Q3 2019 Q3 2020 AmeriGas Propane $(2.0) $(15.1) UGI International 14.8 (11.3) Midstream & Marketing 2.2 6.7 UGI Utilities 6.7 4.1 Corporate & Other (a) (23.6) 100.9 Net (loss) income attributable to UGI Corporation (1.9) 85.3 Net losses (gains)
Slide 25: UGI Supplemental Footnotes
UGI Supplemental Footnotes • Management uses “adjusted net income attributable to UGI Corporation” and “adjusted diluted earnings per share,” both of which are non-GAAP financial measures, when evaluating UGI’s overall performance. Management believes that these non-GAAP measures provide meaningful
Slide 26: Investor Relations
Investor Relations: Brendan Heck Alanna Zahora 610-456-6608 610-337-1004 heckb@ugicorp.com zahoraa@ugicorp.com