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): January 31, 2013

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 January 31, 2013, 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 December 31, 2012. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
 
(d)	Exhibits. The following exhibit is being furnished herewith:	

		
99.1	  	Press Release of AmeriGas Partners, L.P. dated January 31, 2013, reporting its financial results for the fiscal quarter ended December 31, 2012.	

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.	
				
January 31, 2013	 		 	By:	 	/s/ Hugh J. Gallagher	
	 		 		 	Name: Hugh J. Gallagher	
	 		 		 	Title: Treasurer of AmeriGas Propane, Inc.,
the general partner of AmeriGas Partners,
L.P.	

EXHIBIT INDEX
The Following Exhibit Is Furnished:

EXHIBIT NO.	  	DESCRIPTION	
		
99.1	  	Press Release of AmeriGas Partners, L.P. dated January 31, 2013, reporting its financial results for the fiscal quarter ended December 31, 2012.	

Exhibit 99.1

Contact: 	  	610-337-7000	  	For Immediate Release:	
	  	Hugh J. Gallagher, ext. 1029	  	January 31, 2013	
	  	Simon Bowman, ext. 3645	  		
	  	Shelly Oates, ext. 3202	  		
AmeriGas Partners Reports Significant Increase in First Quarter Earnings
VALLEY FORGE, Pa., January 31—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.
-MORE-

			
AmeriGas Partners Reports Significant Increase in First Quarter Earnings	  	Page 2	
Operating and administrative expenses increased $83.6 million primarily reflecting incremental expenses associated with the operations of Heritage Propane. Acquisition and transition expenses associated with Heritage Propane were $5.5 million in the current-year period compared to $3.7 million in the prior-year period. Operating income increased $79.8 million primarily reflecting the higher total margin partially offset by the increased operating expenses and greater depreciation and amortization expenses ($25.2 million) principally associated with Heritage Propane.
EBITDA, Adjusted EBITDA, and total margin are non-GAAP financial measures. Adjusted EBITDA is defined herein as earnings before interest expense, income taxes, depreciation and amortization, and Heritage Propane acquisition and transition expenses. Total margin represents total revenues less total cost of sales. Management believes the presentation of these measures provides useful information to investors to more effectively evaluate the year-over-year results of operations of the Partnership. These measures are not comparable to measures used by other entities and should only be considered in conjunction with net income attributable to AmeriGas Partners, L.P. A reconciliation of EBITDA and Adjusted EBITDA to the most comparable GAAP financial measure is included on the last page of this press release.
About AmeriGas
AmeriGas is the nation’s largest retail propane marketer, serving over two million customers in all 50 states from approximately 2,100 distribution locations. UGI Corporation, through subsidiaries, is the sole General Partner and owns 26% of the Partnership. An affiliate of Energy Transfer Partners, L.P. owns 32% of the Partnership and the public owns the remaining 42%.
AmeriGas Partners, L.P. will hold a live Internet Audio Webcast of its conference call to discuss first quarter earnings and other current activities at 4:00 PM ET on Thursday, January 31, 2013. 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 7:00 PM ET on January 31 through 9:00 pm on February 5. The replay may be accessed at 1-877-344-7529, conference ID 10019731 and International access 1-412-317-0088, conference ID 10019731.
Comprehensive information about AmeriGas is available on the Internet at http://www.amerigas.com .
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, 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 Heritage Propane 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-02	  	###	  	1/31/13	

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

 	  	Three Months Ended
December 31,	 	 	Twelve Months Ended
December 31,	 	
 	  	2012	 	 	2011	 	 	2012	 	 	2011	 	
Revenues:	  				 				 				 				
Propane	  	$	797,059	  	 	$	637,283	  	 	$	2,837,407	  	 	$	2,343,910	  	
Other	  	 	79,588	  	 	 	46,529	  	 	 	277,044	  	 	 	177,641	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	876,647	  	 	 	683,812	  	 	 	3,114,451	  	 	 	2,521,551	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses:	  				 				 				 				
Cost of sales—propane	  	 	429,563	  	 	 	429,980	  	 	 	1,642,241	  	 	 	1,555,441	  	
Cost of sales—other	  	 	22,521	  	 	 	13,828	  	 	 	85,764	  	 	 	58,349	  	
Operating and administrative expenses	  	 	243,517	  	 	 	159,910	  	 	 	972,300	  	 	 	624,058	  	
Depreciation	  	 	38,323	  	 	 	20,931	  	 	 	151,617	  	 	 	83,836	  	
Amortization	  	 	11,028	  	 	 	3,257	  	 	 	42,669	  	 	 	12,395	  	
Other income, net	  	 	(8,171	) 	 	 	(4,190	) 	 	 	(30,502	) 	 	 	(23,998	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	736,781	  	 	 	623,716	  	 	 	2,864,089	  	 	 	2,310,081	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	139,866	  	 	 	60,096	  	 	 	250,362	  	 	 	211,470	  	
Loss on extinguishments of debt	  	 	0	  	 	 	0	  	 	 	(13,349	) 	 	 	(38,117	) 	
Interest expense	  	 	(41,196	) 	 	 	(16,533	) 	 	 	(167,304	) 	 	 	(64,676	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before income taxes	  	 	98,670	  	 	 	43,563	  	 	 	69,709	  	 	 	108,677	  	
Income tax expense	  	 	(627	) 	 	 	(450	) 	 	 	(2,108	) 	 	 	(421	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	98,043	  	 	 	43,113	  	 	 	67,601	  	 	 	108,256	  	
Less: net income attributable to noncontrolling interests	  	 	(1,378	) 	 	 	(588	) 	 	 	(2,436	) 	 	 	(2,076	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to AmeriGas Partners, L.P.	  	$	96,665	  	 	$	42,525	  	 	$	65,165	  	 	$	106,180	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General partner’s interest in net income attributable to AmeriGas Partners, L.P.	  	$	5,219	  	 	$	1,991	  	 	$	16,347	  	 	$	6,712	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Limited partners’ interest in net income attributable to AmeriGas Partners, L.P.	  	$	91,446	  	 	$	40,534	  	 	$	48,818	  	 	$	99,468	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income per limited partner unit (a)	  				 				 				 				
Basic	  	$	0.93	  	 	$	0.55	  	 	$	0.53	  	 	$	1.63	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	$	0.93	  	 	$	0.55	  	 	$	0.53	  	 	$	1.63	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average limited partner units outstanding:	  				 				 				 				
Basic	  	 	92,820	  	 	 	57,133	  	 	 	90,403	  	 	 	57,128	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted	  	 	92,902	  	 	 	57,193	  	 	 	90,466	  	 	 	57,180	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUPPLEMENTAL INFORMATION:	  				 				 				 				
					
Retail gallons sold (millions)	  	 	350.7	  	 	 	220.9	  	 	 	1,147.3	  	 	 	838.7	  	
EBITDA (b)	  	$	187,839	  	 	$	83,696	  	 	$	428,863	  	 	$	267,508	  	
Adjusted EBITDA (b)	  	$	193,327	  	 	$	87,413	  	 	$	490,170	  	 	$	309,342	  	
Expenditures for property, plant and equipment:	  				 				 				 				
Maintenance capital expenditures	  	$	10,054	  	 	$	11,790	  	 	$	43,329	  	 	$	39,600	  	
Transition capital related to Heritage integration	  	$	4,541	  	 	$	0	  	 	$	22,149	  	 	$	0	  	
Growth capital expenditures	  	$	11,894	  	 	$	9,813	  	 	$	42,548	  	 	$	37,925	  	
 
(a)	Income 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, 2012.	
(b)	Earnings before interest expense, income taxes, depreciation and amortization (“EBITDA”) should not be considered as an alternative to net income attributable to AmeriGas Partners, L.P. (as an indicator of operating performance) and is not a measure of performance or financial condition under accounting principles generally accepted in the United States (“GAAP”). Management believes 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 EBITDA may be different from those used by other companies.	
(continued)
 
1

AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
REPORT OF EARNINGS
(Thousands, except per unit and where otherwise indicated)
(Unaudited)
 
(continued)
Management uses 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 or historical cost basis. In view of the omission of interest, income taxes, depreciation and amortization from 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 EBITDA to assess the Partnership’s profitability because its parent, UGI Corporation, uses the Partnership’s EBITDA to assess the profitability of the Partnership which is one of UGI Corporation’s reportable segments. UGI Corporation discloses the Partnership’s EBITDA in its disclosure about reportable segments as the profitability measure for its domestic propane segment. EBITDA in the three months ended December 31, 2012 and 2011 includes acquisition and transition expense of $5,488 and $3,717, respectively, associated with the Heritage Propane acquisition. EBITDA in the twelve months ended December 31, 2012 includes a pre-tax loss of $13,349 from extinguishments of debt and acquisition and transition expense of $47,958 associated with the Heritage Propane acquisition. EBITDA in the twelve months ended December 31, 2011 includes a pre-tax loss of $38,117 from extinguishments of debt and acquisition-related expense of $3,717 associated with the Heritage Propane acquisition.
The following table includes reconciliations of net income attributable to AmeriGas Partners, L.P. to EBITDA and Adjusted EBITDA (1) for all periods presented:

 	  	Three Months Ended	 	  	Twelve Months Ended	 	
 	  	December 31,	 	  	December 31,	 	
 	  	2012	 	  	2011	 	  	2012	 	  	2011	 	
Net income attributable to AmeriGas Partners, L.P.	  	$	96,665	  	  	$	42,525	  	  	$	65,165	  	  	$	106,180	  	
Income tax expense	  	 	627	  	  	 	450	  	  	 	2,108	  	  	 	421	  	
Interest expense	  	 	41,196	  	  	 	16,533	  	  	 	167,304	  	  	 	64,676	  	
Depreciation	  	 	38,323	  	  	 	20,931	  	  	 	151,617	  	  	 	83,836	  	
Amortization	  	 	11,028	  	  	 	3,257	  	  	 	42,669	  	  	 	12,395	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
EBITDA	  	$	187,839	  	  	$	83,696	  	  	$	428,863	  	  	$	267,508	  	
Heritage Propane acquisition and transition expense	  	 	5,488	  	  	 	3,717	  	  	 	47,958	  	  	 	3,717	  	
Loss on extinguishments of debt	  	 	—   	  	  	 	—   	  	  	 	13,349	  	  	 	38,117	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Adjusted EBITDA (1)	  	$	193,327	  	  	$	87,413	  	  	$	490,170	  	  	$	309,342	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
The following table includes a reconciliation of forecasted net income attributable to AmeriGas Partners, L.P. to forecasted EBITDA and Adjusted EBITDA for the fiscal year ending September 30, 2013:

 	  	Forecast
Fiscal
Year
Ending
September 30,
2013	 	
Net income attributable to AmeriGas Partners, L.P. (estimate)	  	$	244,000	  	
Interest expense (estimate)	  	 	166,000	  	
Income tax expense (estimate)	  	 	2,500	  	
Depreciation (estimate)	  	 	156,000	  	
Amortization (estimate)	  	 	44,000	  	
	  	 	 	 	
EBITDA	  	$	612,500	  	
Transition expenses (estimate)	  	 	20,000	  	
	  	 	 	 	
Adjusted EBITDA (1)	  	$	632,500	  	

(1)	Adjusted EBITDA is a non-GAAP financial measure. Management believes the presentation of this measure provides useful information to investors to more effectively evaluate the year-over-year results of operations of the Partnership. Management uses Adjusted EBITDA to exclude from AmeriGas Partners’ EBITDA gains and losses that competitors do not necessarily have to provide additional insight into the comparison of year-over-year profitability to that of other master limited partnerships. This measure is not comparable to measures used by other entities and should only be considered in conjunction with net income attributable to AmeriGas Partners, L.P. for the relevant periods.	
 
2