AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE: APU), reported net income attributable to AmeriGas Partners for the first quarter of fiscal 2013 ended December 31, 2012 of $96.7 million compared to $42.5 million for the same period last year. Net income attributable to AmeriGas Partners for the current-year period reflects increased earnings associated with the operations of Heritage Propane, which was acquired in January 2012. The Partnership’s adjusted earnings before interest expense, income taxes, depreciation and amortization (Adjusted EBITDA) increased to $193.3 million for the first quarter of 2013 compared to $87.4 million for the same period last year reflecting the impact of the Heritage Propane acquisition.
Retail volumes sold reflect incremental sales associated with the operations of Heritage Propane partially offset by the impact of significantly warmer than normal weather. For the three months ended December 31, 2012, retail propane volumes sold were 350.7 million gallons compared with retail propane volumes of 220.9 million gallons in the prior-year period. Weather for the quarter was 9.0% warmer than normal, but 3.4% colder than in the prior-year period, according to the National Oceanic and Atmospheric Administration (“NOAA”). Weather for the month of December was 13.1% warmer than normal and 1.5% warmer than last year, according to NOAA.
Jerry E. Sheridan, chief executive officer of AmeriGas, said, “Despite promising weather during much of October and into November, the peak heating season got off to a slow start during December, when we experienced weather that was significantly warmer than normal and even slightly warmer than December 2011. Despite the short-term challenges brought about by these uneven weather patterns, our management team remains focused on providing excellent customer service and delivering the significant benefits of the Heritage Propane acquisition. We are on track to recognize $60 million in synergies when the integration is completed later this year and we are confident that, given a return to more normal weather, we will more fully demonstrate the true earnings power of the New AmeriGas. Given our results thus far and assuming essentially normal weather for the remainder of the year, we now anticipate Adjusted EBITDA for fiscal 2013 to be in the range of $620 million to $645 million.”
Revenues for the quarter increased to $876.6 million from $683.8 million in the prior-year period, reflecting the higher retail volumes sold partially offset by lower average selling prices. The average wholesale cost of propane at Mont Belvieu, Texas, for the current quarter was approximately 38% lower than the average cost in the same period last year. Total margin increased $184.6 million due to higher volumes sold, higher average retail unit margins and increased total margin related to ancillary sales and services.
Source: Business Wire
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