UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 1, 2016

AmeriGas Partners, L.P.
(Exact name of registrant as specified in its charter)

 

					
 	 	 	 	 	
Delaware	 	1-13692	 	23-2787918	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(I.R.S. Employer
Identification No.)	

	

460 No. Gulph Road, King of Prussia,
Pennsylvania	 	19406	
(Address of principal executive offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: 610 337-7000
Not Applicable
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

	
		
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

		
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

		
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	

		
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

Item 2.02 Results of Operations and Financial Condition.
On August 1, 2016 , AmeriGas Propane, Inc., the general partner of AmeriGas Partners, L.P. (the “Partnership”), issued a press release announcing financial results for the Partnership for the fiscal quarter ended June 30, 2016 . A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On August 2, 2016 , the Partnership will hold a live Internet Audio Webcast of its conference call to discuss its financial results for the fiscal quarter ended June 30, 2016 .
Presentation materials containing certain historical and forward-looking information relating to the Partnership (the “Presentation Materials”) have been made available on the Partnership’s website. A copy of the Presentation Materials is furnished as Exhibit 99.2 to this report and is incorporated herein by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular dates referenced therein, and the Partnership does not undertake any obligation to, and disclaims any duty to, update any of the information provided.
In accordance with General Instruction B.2 of Form 8-K, the information in this report, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and will not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in that filing.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are being furnished herewith:

	
		
99.1	Press Release of AmeriGas Partners, L.P. dated August 1, 2016.	
99.2	Presentation of AmeriGas Partners, L.P. dated August 2, 2016.	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	

 	AmeriGas Partners, L.P.	
 	 	 	
August 2, 2016	By:	 	/s/ Hugh J. Gallagher	
 	 	 	Name: Hugh J. Gallagher	
 	 	 	Title: Vice President - Finance and Chief Financial Officer of AmeriGas Propane, Inc., the general partner of AmeriGas Partners, L.P.	

EXHIBIT INDEX
The Following Exhibits Are Furnished:

	
		
EXHIBIT
NO.	DESCRIPTION	
99.1	Press Release of AmeriGas Partners, L.P. dated August 1, 2016.	
99.2	Presentation of AmeriGas Partners, L.P. dated August 2, 2016.	

Exhibit 99.1

	

Contact:	  	610-337-7000	  	 	  	For Immediate Release:	 	
 	  	Will Ruthrauff, ext. 6571	  	 	  	August 1, 2016	 	
 	  	Shelly Oates, ext. 3202	  	 	  	 	 	
 	  	 	  	 	  	 	 	
AmeriGas Partners Reports Solid Fiscal 2016 Third Quarter Earnings

VALLEY FORGE, Pa., August 1 - AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P. (NYSE: APU), reported a GAAP net loss attributable to AmeriGas Partners for the quarter ended June 30, 2016 of $33.1 million, compared to a GAAP net loss of $25.6 million for the quarter ended June 30, 2015. The GAAP net loss for the current quarter includes a $37.1 million loss due to early extinguishments of debt. On an adjusted basis, the Partnership reported a seasonal net loss of $23.6 million for the quarter compared with a seasonal net loss of $40.2 million in the prior year. Adjusted results exclude the impact of unrealized gains and losses on commodity derivative instruments and losses from the early extinguishments of debt.

The Partnership’s adjusted earnings before interest expense, income taxes, depreciation and amortization (Adjusted EBITDA) was $64.6 million for the third fiscal quarter compared with $48.9 million in the prior year. Retail volumes sold for the quarter were 202.8 million gallons, comparable with the prior year amount of 202.2 million. The slight increase in retail gallons sold reflects temperatures that were slightly colder than the prior year, although 7.5% warmer than normal, according to the National Oceanic and Atmospheric Administration (NOAA).

Jerry E. Sheridan, president and chief executive officer of AmeriGas, said, "After experiencing one of the warmest winters in history, the business rebounded with a very solid third quarter.  Adjusted EBITDA was 32% higher than last year on weather that was 5.5% colder.  Continued focus on unit margin management and expense control were the keys to our improved results during the quarter as we were able to deliver a combination of both higher adjusted total margin and lower operating expenses.  We completed two acquisitions in June, and one in July, bringing our acquisition count for the year to six.  Finally, we were pleased to complete a $1.35 billion debt offering during the quarter to refinance the senior notes maturing in 2019, 2020 and 2021 at an average rate of 5.75%, lowering our weighted average cost of debt while addressing our refinancing needs through 2022."

Sheridan continued, "Based on our results thus far and our expectations for the remainder of the year, we confirm our Adjusted EBITDA guidance range of $575 million to $600 (a) million for the fiscal year ending September 30, 2016."

(a) Due to the forward looking nature of full year Adjusted EBITDA, we are unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure. Management is unable to project certain reconciling items, in particular mark-to-market gains (losses) on commodity derivative instruments for future periods, due to market volatility.

	

AmeriGas Partners Reports Solid Fiscal 2016 Third Quarter Earnings	Page 2	

About AmeriGas
AmeriGas is the nation’s largest retail propane marketer, serving approximately two million customers in all 50 states from approximately 2,000 distribution locations. UGI Corporation, through subsidiaries, is the sole General Partner and owns 26% of the Partnership and the public owns the remaining 74%.

AmeriGas Partners, L.P. will hold a live Internet Audio Webcast of its conference call to discuss fiscal 2016 third quarter earnings and other current activities at 9:00 AM ET on Tuesday, August 2, 2016. Interested parties may listen to the audio webcast both live and in replay on the Internet at http://investors.amerigas.com/investor-relations/events-presentations or at the company website http://www.amerigas.com under Investor Relations. A telephonic replay will be available from 12:00 PM ET on August 2 through 11:59 PM on August 18. The replay may be accessed at (855) 859-2056, and internationally at 1-404-537-3406, conference ID 13747593.

Comprehensive information about AmeriGas is available on the Internet at http://www.amerigas.com

This press release 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 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, the capacity to transport propane to our market areas, the impact of pending and future legal proceedings, political, economic and regulatory conditions in the U.S. and abroad, and our ability to successfully integrate acquisitions and achieve anticipated synergies. The Partnership undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.

	

AP-05	  	###	 	8/1/16	

AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)

																									
 	 	Three Months Ended
June 30,	 	Nine Months Ended
June 30,	 	Twelve Months Ended
June 30,	
 	 	2016	 	2015	 	2016	 	2015	 	2016	 	2015	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	
Propane	 	$	385,566		 	$	414,146		 	$	1,718,748		 	$	2,254,961		 	$	2,076,188		 	$	2,754,128		
Other	 	61,118		 	63,831		 	199,521		 	212,125		 	260,317		 	273,207		
 	 	446,684		 	477,977		 	1,918,269		 	2,467,086		 	2,336,505		 	3,027,335		
Costs and expenses:	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of sales - propane	 	121,812		 	172,803		 	591,355		 	1,163,089		 	729,433		 	1,447,181		
Cost of sales - other	 	21,145		 	23,745		 	59,173		 	64,607		 	81,204		 	85,253		
Operating and administrative expenses	217,154		 	223,306		 	686,578		 	727,303		 	912,558		 	947,259		
Depreciation	 	35,668		 	37,370		 	110,807		 	113,454		 	149,557		 	150,549		
Amortization	 	10,742		 	10,666		 	32,228		 	32,065		 	42,839		 	42,849		
Other operating income, net	 	(6,041	)	 	(5,548	)	 	(22,079	)	 	(23,088	)	 	(30,346	)	 	(29,004	)	
 	 	400,480		 	462,342		 	1,458,062		 	2,077,430		 	1,885,245		 	2,644,087		
Operating income	 	46,204		 	15,635		 	460,207		 	389,656		 	451,260		 	383,248		
Loss on extinguishments of debt	 	(37,086	)	 	—		 	(37,086	)	 	—		 	(37,086	)	 	—		
Interest expense	 	(40,838	)	 	(40,274	)	 	(122,669	)	 	(122,404	)	 	(163,107	)	 	(163,021	)	
(Loss) income before income taxes	 	(31,720	)	 	(24,639	)	 	300,452		 	267,252		 	251,067		 	220,227		
Income tax expense	 	(907	)	 	(802	)	 	(2,107	)	 	(2,478	)	 	(2,527	)	 	(2,885	)	
Net (loss) income including noncontrolling interest	 	(32,627	)	 	(25,441	)	 	298,345		 	264,774		 	248,540		 	217,342		
Deduct net income attributable to noncontrolling interest	 	(442	)	 	(137	)	 	(4,533	)	 	(3,868	)	 	(4,423	)	 	(3,783	)	
Net (loss) income attributable to AmeriGas Partners, L.P.	 	$	(33,069	)	 	$	(25,578	)	 	$	293,812		 	$	260,906		 	$	244,117		 	$	213,559		
General partner’s interest in net (loss) income attributable to AmeriGas Partners, L.P.	 	$	10,101		 	$	8,389		 	$	30,663		 	$	24,321		 	$	38,811		 	$	30,380		
Limited partners’ interest in net (loss) income attributable to AmeriGas Partners, L.P.	 	$	(43,170	)	 	$	(33,967	)	 	$	263,149		 	$	236,585		 	$	205,306		 	$	183,179		
Income (loss) per limited partner unit (a)	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	$	(0.46	)	 	$	(0.37	)	 	$	2.81		 	$	2.53		 	$	2.19		 	$	1.97		
Diluted	 	$	(0.46	)	 	$	(0.37	)	 	$	2.80		 	$	2.53		 	$	2.19		 	$	1.96		
Average limited partner units outstanding:	 	 	 	 	 	 	 	 	 	 	
Basic	 	92,960		 	92,918		 	92,945		 	92,908		 	92,939		 	92,904		
Diluted	 	92,960		 	92,918		 	93,019		 	92,972		 	93,014		 	92,970		
SUPPLEMENTAL INFORMATION:	 	 	 	 	 	 	 	 	 	 	 	 	
Retail gallons sold (millions)	 	202.8		 	202.2		 	883.7		 	990.4		 	1,077.6		 	1,201.4		
Wholesale gallons sold (millions)	 	8.7		 	11.2		 	40.0		 	42.1		 	52.3		 	52.6		
Total margin (b)	 	$	303,727		 	$	281,429		 	$	1,267,741		 	$	1,239,390		 	$	1,525,868		 	$	1,494,901		
Adjusted total margin (c)	 	$	275,877		 	$	266,616		 	$	1,206,070		 	$	1,288,068		 	$	1,463,360		 	$	1,550,293		
EBITDA (c)	 	$	55,086		 	$	63,534		 	$	561,623		 	$	531,307		 	$	602,147		 	$	572,863		
Adjusted EBITDA (c)	 	$	64,603		 	$	48,871		 	$	537,661		 	$	579,493		 	$	577,356		 	$	627,695		
Adjusted net (loss) income attributable to AmeriGas Partners, L.P. (c)	 	$	(23,552	)	 	$	(40,241	)	 	$	269,850		 	$	309,092		 	$	219,326		 	$	268,391		
Expenditures for property, plant and equipment:	 	 	 	 	 	 	 	 	 	 	
Maintenance capital expenditures	 	$	9,985		 	$	11,803		 	$	36,275		 	$	43,577		 	$	50,513		 	$	66,892		
Growth capital expenditures	 	$	8,700		 	$	8,838		 	$	38,197		 	$	34,281		 	$	48,110		 	$	44,608		
		
(a)	Income (loss) per limited partner unit is computed in accordance with accounting guidance regarding the application of the two-class method for determining earnings per share as it relates to master limited partnerships. Refer to Note 2 to the consolidated financial statements included in the AmeriGas Partners, L.P. Annual Report on Form 10-K for the fiscal year ended September 30, 2015.	
		
(b)	Total margin represents "total revenues" less "cost of sales - propane" and "cost of sales - other".	
		
(c)	The Partnership’s management uses certain non-GAAP financial measures, including adjusted total margin, EBITDA, adjusted EBITDA	

AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)

and adjusted net income (loss) attributable to AmeriGas Partners, L.P., when evaluating the Partnership’s overall performance. These financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures.

Management believes earnings before interest, income taxes, depreciation and amortization (“EBITDA”), as adjusted for the effects of gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that competitors do not necessarily have ("Adjusted EBITDA"), is a meaningful non-GAAP financial measure used by investors to (1) compare the Partnership’s operating performance with that of other companies within the propane industry and (2) assess the Partnership’s ability to meet loan covenants. The Partnership’s definition of Adjusted EBITDA may be different from those used by other companies. Management uses Adjusted EBITDA to compare year-over-year profitability of the business without regard to capital structure as well as to compare the relative performance of the Partnership to that of other master limited partnerships without regard to their financing methods, capital structure, income taxes, the effects of gains and losses on commodity derivative instruments not associated with current-period transactions or historical cost basis. In view of the omission of interest, income taxes, depreciation and amortization, gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that competitors do not necessarily have from Adjusted EBITDA, management also assesses the profitability of the business by comparing net income attributable to AmeriGas Partners, L.P. for the relevant years. Management also uses Adjusted EBITDA to assess the Partnership’s profitability because its parent, UGI Corporation, uses the Partnership’s EBITDA, as adjusted to exclude gains and losses on commodity derivative instruments not associated with current-period transactions, to assess the profitability of the Partnership which is one of UGI Corporation’s industry segments. UGI Corporation discloses the Partnership’s EBITDA, as so adjusted, in its disclosure about industry segments as the profitability measure for its domestic propane segment.

Management believes the presentation of other non-GAAP financial measures, comprised of adjusted total margin and adjusted net income (loss) attributable to AmeriGas Partners, L.P., provide useful information to investors to more effectively evaluate the period-over-period results of operations of the Partnership. Management uses these non-GAAP financial measures because they eliminate the impact of (1) gains and losses on commodity derivative instruments that are not associated with current-period transactions and (2) other gains and losses that competitors do not necessarily have to provide insight into the comparison of period-over-period profitability to that of other master limited partnerships.
     
The following tables include reconciliations of adjusted total margin, EBITDA, adjusted EBITDA and adjusted net income attributable to AmeriGas Partners, L.P. to the most directly comparable financial measure calculated and presented in accordance with GAAP for all the periods presented.

	
																									
 	 	Three Months Ended
June 30,	 	Nine Months Ended
June 30,	 	Twelve Months Ended
June 30,	
 	 	2016	 	2015	 	2016	 	2015	 	2016	 	2015	
Adjusted total margin:	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	$	446,684		 	$	477,977		 	$	1,918,269		 	$	2,467,086		 	$	2,336,505		 	$	3,027,335		
Cost of sales - propane	 	(121,812	)	 	(172,803	)	 	(591,355	)	 	(1,163,089	)	 	(729,433	)	 	(1,447,181	)	
Cost of sales - other	 	(21,145	)	 	(23,745	)	 	(59,173	)	 	(64,607	)	 	(81,204	)	 	(85,253	)	
Total margin	 	303,727		 	281,429		 	1,267,741		 	1,239,390		 	1,525,868		 	1,494,901		
(Subtract net gains) add net losses on commodity derivative instruments not associated with current-period transactions	 	(27,850	)	 	(14,813	)	 	(61,671	)	 	48,678		 	(62,508	)	 	55,392		
Adjusted total margin	 	$	275,877		 	$	266,616		 	$	1,206,070		 	$	1,288,068		 	$	1,463,360		 	$	1,550,293		
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net (loss) income attributable to AmeriGas Partners, L.P.:	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income attributable to AmeriGas Partners, L.P.	 	$	(33,069	)	 	$	(25,578	)	 	$	293,812		 	$	260,906		 	$	244,117		 	$	213,559		
(Subtract net gains) add net losses on commodity derivative instruments not associated with current-period transactions	 	(27,850	)	 	(14,813	)	 	(61,671	)	 	48,678		 	(62,508	)	 	55,392		
Noncontrolling interest in net gains (losses) on commodity derivative instruments not associated with current-period transactions	 	281		 	150		 	623		 	(492	)	 	631		 	(560	)	
Loss on extinguishments of debt	 	37,086		 	—		 	37,086		 	—		 	37,086		 	—		
Adjusted net (loss) income attributable to AmeriGas Partners, L.P.	 	$	(23,552	)	 	$	(40,241	)	 	$	269,850		 	$	309,092		 	$	219,326		 	$	268,391		

	
																									
 	 	Three Months Ended
June 30,	 	Nine Months Ended
June 30,	 	Twelve Months Ended
June 30,	
 	 	2016	 	2015	 	2016	 	2015	 	2016	 	2015	
EBITDA and Adjusted EBITDA:	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss) income attributable to AmeriGas Partners, L.P.	 	$	(33,069	)	 	$	(25,578	)	 	$	293,812		 	$	260,906		 	$	244,117		 	$	213,559		
Income tax expense	 	907		 	802		 	2,107		 	2,478		 	2,527		 	2,885		
Interest expense	 	40,838		 	40,274		 	122,669		 	122,404		 	163,107		 	163,021		
Depreciation	 	35,668		 	37,370		 	110,807		 	113,454		 	149,557		 	150,549		
Amortization	 	10,742		 	10,666		 	32,228		 	32,065		 	42,839		 	42,849		
EBITDA	 	55,086		 	63,534		 	561,623		 	531,307		 	602,147		 	572,863		
(Subtract net gains) add net losses on commodity derivative instruments not associated with current-period transactions	 	(27,850	)	 	(14,813	)	 	(61,671	)	 	48,678		 	(62,508	)	 	55,392		
Noncontrolling interest in net gains (losses) on commodity derivative instruments not associated with current-period transactions	 	281		 	150		 	623		 	(492	)	 	631		 	(560	)	
Loss on extinguishments of debt	 	37,086		 	—		 	37,086		 	—		 	37,086		 	—		
Adjusted EBITDA	 	$	64,603		 	$	48,871		 	$	537,661		 	$	579,493		 	$	577,356		 	$	627,695		

1 Fiscal 2016 Third Quarter Results Jerry Sheridan President & CEO, AmeriGas 

 

2 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 control. You should read AmeriGas’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, the impact of pending and future legal proceedings, political, regulatory and economic conditions in the United States and in foreign countries, the timing and success of our acquisitions, commercial initiatives and investments to grow our business, and our ability to successfully integrate acquired businesses and achieve anticipated synergies. AmeriGas undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today. In addition, this presentation uses certain non-GAAP financial measures. Please see the appendix for reconciliations of these measures to the most comparable GAAP financial measure. About This Presentation 

 

3 Third Quarter Recap Jerry Sheridan President & CEO, AmeriGas 

 

4 Third Quarter Recap  Solid margin management, expense control and colder weather contributed to strong results  Weather was 7.5% warmer than normal and 5.5% colder than the prior year  Increased unit margins $0.04 despite 26% increase in propane costs over prior year 1 See appendix for reconciliation of Adjusted EBITDA. $65 $49 $0 $20 $40 $60 $80 $100 Q3-16 Q3-15 Adjusted EBITDA1 $mm 

 

5 Growth Initiatives Cylinder Exchange • 3% increase in cylinders sold, driven by a 14% increase in the month of June Acquisitions • Completed two acquisitions in June and one in July • Have closed six acquisitions year-to-date National Accounts: • Volume increased 6% as it benefited from the cooler weather and account growth 

 

6 Refinancing and Guidance • Completed $1.35 billion refinancing o $675 million matures 2024 o $675 million matures 2026 • Extends our weighted average maturities from 3.8 years to 9 years • Reduces cash interest by $5 million per year • Continue to focus on solid distribution coverage to support annual distribution increases Adjusted EBITDA guidance range remains $575 - $600 million1 1 Due to the forward looking nature of Adjusted EBITDA, we are unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure. Management is unable to project certain reconciling items, in particular mark-to-market gains (losses), for future periods due to market volatility. 

 

7 Appendix 

 

8 AmeriGas Non-GAAP Financial Measures  Management believes earnings before interest, income taxes, depreciation and amortization (“EBITDA”), as adjusted for the effects of gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that competitors do not necessarily have ("Adjusted EBITDA"), is a meaningful non-GAAP financial measure used by investors to (1) compare the Partnership’s operating performance with that of other companies within the propane industry and (2) assess the Partnership’s ability to meet loan covenants. The Partnership’s definition of Adjusted EBITDA may be different from those used by other companies. Management uses Adjusted EBITDA to compare year-over-year profitability of the business without regard to capital structure as well as to compare the relative performance of the Partnership to that of other master limited partnerships without regard to their financing methods, capital structure, income taxes, the effects of gains and losses on commodity derivative instruments not associated with current-period transactions or historical cost basis. In view of the omission of interest, income taxes, depreciation and amortization, gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that competitors do not necessarily have from Adjusted EBITDA, management also assesses the profitability of the business by comparing net income attributable to AmeriGas Partners, L.P. for the relevant years. Management also uses Adjusted EBITDA to assess the Partnership’s profitability because its parent, UGI Corporation, uses the Partnership’s EBITDA, as adjusted to exclude gains and losses on commodity derivative instruments not associated with current-period transactions, to assess the profitability of the Partnership which is one of UGI Corporation’s industry segments. UGI Corporation discloses the Partnership’s EBITDA, as so adjusted, in its disclosure about industry segments as the profitability measure for its domestic propane segment. 

 

9 AmeriGas Adjusted EBITDA EBITDA and Adjusted EBITDA: 2016 2015 Net (loss) income attributable to AmeriGas Partners (33.1)$ (25.6)$ Income tax expense (a) 1.0 0.7 Interest expense 40.8 40.3 Depreciation 35.7 37.4 Amortization 10.7 10.7 EBITDA 55.1 63.5 Subtract net (gains) add net losses on commodity derivative instruments not associated with current- period transactions (27.8) (14.8) Noncontrolling interest in net gains (losses) on commodity derivative instruments not associated with current-period transactions (a) 0.2 0.2 Loss on extinguishments of debt 37.1 - Adjusted EBITDA 64.6$ 48.9$ (a) Includes the impact of rounding. Three Months Ended June 30, 

 

10 Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com