VALLEY FORGE, Pa. -- AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE:APU), reported net income for the second fiscal quarter ended March 31, 2008 of $133.0 million, a nearly 11% increase compared to net income of $119.9 million for the same period last year.
The Partnership's earnings before interest expense, income taxes, depreciation and amortization (EBITDA) increased to $171.8 million for the second fiscal quarter of 2008, a new record for the quarter and a 9.8% increase over last year's record EBITDA of $156.4 million. For the three months ended March 31, 2008, retail volumes sold were essentially unchanged from the prior-year period, as the beneficial impacts of cooler weather and higher volumes sold from businesses acquired last year were more than offset by a number of factors, including customer conservation resulting from significant increases in propane sales prices caused by record high propane costs and general economic conditions. Weather was virtually normal during the recent quarter and 4.0% colder than in the prior-year period, according to the National Oceanic and Atmospheric Administration (NOAA). The average wholesale cost of propane at Mont Belvieu, Texas for the 2008 quarter increased more than 50% over the average cost in the same period last year.
Eugene V. N. Bissell, chief executive officer of AmeriGas, said, "I am happy to report record second quarter EBITDA for a second consecutive year. Faced with a challenging operating environment, our employees continued to execute on our strategies and delivered excellent operating results while maintaining a focus on building long-term value for unitholders. Based upon the strength of our results, we continue to expect EBITDA to be in the range of $300 million to $310 million for the fiscal year ending September 30, 2008. In addition, yesterday we announced a distribution increase of 5% to $2.56 per unit on an annualized basis and increased our annual distribution growth objective to 5% from 3%. These announcements clearly reflect our confidence in the AmeriGas business model of long term, steady growth."
Revenues for the quarter were $1,006.7 million versus $809.8 million a year ago primarily due to higher retail selling prices associated with significantly higher commodity prices. Operating income rose 10% to $153.3 million for the quarter principally reflecting higher retail unit margins partially offset by higher operating and administrative expenses. Operating and administrative expenses increased $9.0 million year-over-year for the quarter primarily due to expenses associated with acquisitions and higher vehicle and uncollectible accounts expenses.
AmeriGas Partners is the nation's largest retail propane marketer, serving nearly 1.3 million customers from over 600 locations in 46 states. UGI Corporation (NYSE:UGI), through subsidiaries, owns 44% of the Partnership and individual unitholders own the remaining 56%.
AmeriGas Partners, L.P. will host its second quarter FY 2008 earnings conference call on Wednesday, April 30, 2008, at 4:00 PM ET. Interested parties may listen to the audio webcast both live and in replay on the Internet at http://www.shareholder.com/ugi/APU/medialist.cfm or at the company website; www.amerigas.com and click on Investor Relations. The webcast replay will be available through May 30. A telephonic replay will be available from 7:00 PM ET on April 30 through midnight Friday, May 2. The replay may be accessed at 888-203-1112, passcode 1381490 and International access 719-457-0820, passcode 1381490.
The financial table appended to this news release can be viewed directly at http://www.shareholder.com/ugi/APU/2Q08FinancialTable.pdf.
This press release contains certain forward-looking statements which 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 the Partnership'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 propane, increased customer conservation measures due to high energy prices, the capacity to transport propane to our market areas and political, economic and regulatory conditions in the U. S. and abroad. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.
Comprehensive information about AmeriGas is available on the Internet at www.amerigas.com.
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