Jerry E. Sheridan, president and chief executive officer of AmeriGas, said, “Our results for the quarter reflect the adverse effects of the unprecedented warm weather encountered during the period. The quarter ended March 31, 2012 was the warmest on record in the continental United States. The exceptional warmth experienced during the second quarter followed significantly warmer than normal weather during our first fiscal quarter, resulting in reduced demand for propane during the peak winter season. We were pleased to complete the Heritage Propane acquisition in mid-January and continue to make good progress on the integration of the business. We have filled key operating positions including regional vice presidents and area director positions. Additionally, we have finalized plans for the first phase of field integration efforts to be completed this summer and have begun the integration of back office operations.”
Sheridan continued, “Given our results thus far and our current assessment of acquisition integration efforts and business conditions for the remainder of this fiscal year, we continue to expect Adjusted EBITDA for the fiscal year ending September 30, 2012 to be in the range of $375 million to $395 million. Looking ahead to fiscal 2013, assuming essentially normal weather patterns and given our current assessment of business conditions and acquisition integration efforts, we expect Adjusted EBITDA for the fiscal year ending September 30, 2013 to be in the range of $610 million to $660 million. Our expectations include the impact of approximately $15 million in net synergies expected to be recognized from the Heritage Propane acquisition in fiscal 2012 and approximately $50 million in net synergies expected to be recognized in fiscal 2013.”
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, losses on extinguishment of debt 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.