Attached files
| file | filename |
|---|---|
| 8-K - UIL FORM 8-K DATED OCTOBER 30, 2009 - UIL HOLDINGS CORP | uil_form8kdated1023009.htm |
| EX-99.1 - UIL EXHIBIT 99.1 - PRESENTATION - UIL HOLDINGS CORP | uil_exh99-1.htm |
EXHIBIT
99
UIL
Holdings Corporation
157
Church Street
P.O.
Box 1564
New
Haven, CT 06506-0901
203.499.2812
Fax: 203.499.3626
NEWS
RELEASE
|
October
30, 2009
|
Analyst
Contact:
|
Susan
Allen:
|
203-499-2409
|
|
Media
Contact:
|
Anita
Steeves:
|
203-499-2901
|
|
|
After
Hours:
|
203-499-2812
|
UIL Holdings Corporation
Announces Third Quarter 2009 Results and
Increases 2009 Earnings Guidance
Mid-Point
UIL
Holdings Corporation (NYSE: UIL) today reported consolidated net income of
$21.7 million, or $0.73 per share, for the third quarter of 2009, compared
to net income of $21.5 million, or $0.86 per share, for the same period in
2008. UIL Holdings’ earnings were $47.6 million, or $1.74 per share,
for the first nine months of 2009, an increase of $8.2 million, or $0.17 per
share, compared to the same period in 2008.
“Year to
date, we have successfully controlled our operating costs and the Company will
continue to monitor and control these costs through the end of the
year. This will provide the Company a reasonable opportunity of
achieving its distribution allowed return on equity in 2009,” stated James P.
Torgerson, UIL’s President and CEO. “The decoupling of distribution
revenues also played a key role in the third quarter, providing the Company with
its Commission-determined revenue requirement. Additionally, the
transmission business continues to perform well and is expected to earn its
allowed return on equity of approximately 12.5% in 2009.”
Net
Income for the third quarter and first nine months of 2009, compared to the same
periods in 2008, for continuing operations and discontinued operations and by
line of business, are as follows:
|
Quarter
Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||||||||||
|
2009
|
2008
|
Difference
|
2009
|
2008
|
Difference
|
|||||||||||||||||||
|
Net Income (Loss)
($M)
|
||||||||||||||||||||||||
|
UI
|
||||||||||||||||||||||||
|
Distribution,
CTA and Other
|
$ | 15.4 | $ | 16.2 | $ | (0.8 | ) | $ | 30.3 | $ | 24.4 | $ | 5.9 | |||||||||||
|
Transmission
|
6.9 | 6.1 | 0.8 | 19.2 | 17.0 | 2.2 | ||||||||||||||||||
|
Total
UI Net Income
|
$ | 22.3 | $ | 22.3 | $ | - | $ | 49.5 | $ | 41.4 | $ | 8.1 | ||||||||||||
|
UIL
Corporate
|
(0.6 | ) | (0.7 | ) | 0.1 | (1.8 | ) | (1.8 | ) | - | ||||||||||||||
|
Total
Continuing Operations
|
$ | 21.7 | $ | 21.6 | $ | 0.1 | $ | 47.7 | $ | 39.6 | $ | 8.1 | ||||||||||||
|
Discontinued
Operations - Xcelecom
|
- | (0.1 | ) | 0.1 | (0.1 | ) | (0.2 | ) | 0.1 | |||||||||||||||
|
Total
Net Income
|
$ | 21.7 | $ | 21.5 | $ | 0.2 | $ | 47.6 | $ | 39.4 | $ | 8.2 | ||||||||||||
|
Average
Shares Outstanding - Basic
|
29.9 | 25.1 | 4.8 | 27.4 | 25.1 | 2.3 | ||||||||||||||||||
|
EPS
|
$ | 0.73 | $ | 0.86 | $ | (0.13 | ) | $ | 1.74 | $ | 1.57 | $ | 0.17 | |||||||||||
|
The
dilutive effect of the May 2009 issuance of an additional 4,600,000 shares
of common stock in the third quarter and first nine months of 2009 was
$0.13 per share and $0.14 per share, respectively.
|
||||||||||||||||||||||||
The table
below provides the full distribution, CTA and other net income variances for the
third quarter and first nine months to date of 2009, compared to the same
periods in 2008. Earnings from the distribution business have grown
on a year to date basis primarily due to an approved rate increase, reduced
operation and maintenance expenses and the allocation of certain expenses in
2009 to other rate components.
|
Distribution,
CTA & Other Net Income
|
||||||||
|
Quarter
Ended
|
Nine
Months Ended
|
|||||||
|
September
30, 2009
|
September
30, 2009
|
|||||||
|
Favorable/(Unfavorable)
($M)
|
vs.
2008
|
vs.
2008
|
||||||
|
Operating
Revenues
|
||||||||
|
Decoupling
adjustment
|
$ | 1.5 | $ | 3.9 | ||||
|
Regulatory
true up items
|
1.4 | 4.1 | ||||||
|
Distribution
rates & pricing
|
(1.4 | ) | 1.5 | |||||
|
Sales
volume
|
(2.4 | ) | (5.3 | ) | ||||
|
Other
|
0.1 | 0.1 | ||||||
|
Operation
and Maintenance (O&M) Expense
|
||||||||
|
Customer
service - allocated
|
(0.5 | ) | 1.6 | |||||
|
Uncollectibles
|
1.2 | 3.3 | ||||||
|
Outside
services and other expense
|
1.0 | 3.3 | ||||||
|
Pension
& postretirement
|
(1.5 | ) | (5.4 | ) | ||||
|
Other
|
(0.2 | ) | (1.2 | ) | ||||
|
Distribution,
CTA & Other Net Income variance
|
$ | (0.8 | ) | $ | 5.9 | |||
The
decoupling adjustment reflects an accrual to true up actual revenues to the DPUC
allowed revenue requirements in accordance with the decoupling mechanism
approved in the February 2009 final decision in UI’s 2008 distribution rate
case. The favorable variances in regulatory true up items were
primarily due to the absence in 2009 of adjustments recorded in 2008 to certain
regulatory liabilities. Unfavorable revenue variances are driven by
the reduced kWh sales for the quarter and year to date and the related volume
and pricing variances, partially offset by the 2009 rate increase approved in
the final rate case decision.
Regarding
O&M expense, UI is able to allocate customer service expense to transmission
in accordance with a May 2008 Federal Energy Regulatory Commission order,
resulting in a favorable year to date variance. The favorable
variances in uncollectibles were primarily due to decreased customer account
write-offs and the allowed allocation of a portion of the uncollectible expense
to the Generation Services Charge, effective in February 2009. The
favorable variances in outside services and other expense were primarily related
to cost control measures taken by the Company. The unfavorable
variances in pension and postretirement were primarily due to the negative
impact of the financial markets on the value of pension and postretirement
assets. Such cost increases are fully recoverable.
The
transmission business earnings continued to experience underlying growth both on
a quarterly and year to date basis from higher rate base and equity
capitalization with approximately the same allowed return compared to the same
period in 2008. As previously reported, UI completed the
Middletown-to-Norwalk transmission project, which went into service ahead of
schedule, in December 2008.
2
Looking
Forward
UIL is
tightening its consolidated earnings estimate for 2009 to $1.87 to $1.97 per
share, compared to the previously reported estimate of $1.83 to $1.97 per share,
which results in an increase in the 2009 mid-point estimate.
The
revised estimate for total UI is $1.97 to $2.07 per share, compared to the
previously reported estimate of $1.93 to $2.07 per share, to reflect an increase
in the mid-point estimate for distribution, CTA & other.
The
revised estimate for distribution, CTA & other is $1.05 to $1.15 per share,
compared to the previously reported estimate of $1.00 to $1.15 per
share. The change reflects better than anticipated year to date
earnings performance in the distribution business, including the impact of UI’s
cost control measures through the summer months.
The
estimate for transmission is unchanged and the transmission business is expected
to earn an allowed weighted average return on equity of approximately
12.5%.
The
estimate for UIL corporate is also unchanged.
|
2009 Earnings
Expectations
|
||||
|
UI
|
||||
|
Distribution,
CTA & Other
|
$ | 1.05 - $1.15 | ||
|
Transmission
|
0.90 - 0.95 | |||
|
Total
UI (1)
|
$ | 1.97 - $2.07 | ||
|
UIL
Corporate
|
(0.12) - (0.07 | ) | ||
|
Total
Continuing Operations (1)
|
$ | 1.87 - $1.97 | ||
|
(1)
Expectations are not intended to be additive.
|
||||
Third Quarter Earnings
Conference Call
In
conjunction with this earnings release, UIL will conduct a webcast conference
call with financial analysts on Monday, November 2, 2009, beginning at 8:30 a.m.
eastern time. UIL’s executive management will present an overview of
the financial results followed by a question and answer
session. Interested parties, including analysts, investors and the
media, may listen live via the internet by logging onto the Investors section of
UIL’s website at http://www.uil.com. Institutional investors can access the
call via Thomson Street Events (www.streetevents.com), a password-protected event
management site.
3
UIL
Holdings Corporation (NYSE:UIL), headquartered in New Haven, Connecticut, is the
holding company for The United Illuminating Company, a regulated utility
providing electricity and energy related services to 324,000 customers in the
Greater New Haven and Bridgeport areas. For more information on UIL
Holdings, visit us at http://www.uil.com.
Use
of Non-GAAP Measures for 2009 Earnings Guidance
UIL
Holdings believes earnings per share (EPS) information as presented in its
earnings guidance is useful in understanding the earnings expectations for the
business, as a whole. The amounts presented in the earnings guidance
show the EPS from continuing operations for each of UIL Holdings’ lines of
business. EPS is calculated by dividing the projected 2009 net income
from continuing operations for each line of business by the projected average
number of shares of UIL Holdings common stock outstanding for
2009. Total EPS from continuing operations is a generally
accepted accounting principles (GAAP)-basis presentation.
Certain
statements contained herein, regarding matters that are not historical facts,
are forward-looking statements (as defined in the Private Securities Litigation
Reform Act of 1995). These include statements regarding management’s
intentions, plans, beliefs, expectations or forecasts for the
future. Such forward-looking statements are based on UIL Holdings’
expectations and involve risks and uncertainties; consequently, actual results
may differ materially from those expressed or implied in the
statements. Such risks and uncertainties include, but are not limited
to, general economic conditions, legislative and regulatory changes, changes in
demand for electricity and other products and services, unanticipated weather
conditions, changes in accounting principles, policies or guidelines, and other
economic, competitive, governmental, and technological factors affecting the
operations, markets, products and services of UIL Holdings’ subsidiary, The
United Illuminating Company. The foregoing and other factors are
discussed and should be reviewed in UIL Holdings’ most recent Annual Report on
Form 10-K and other subsequent periodic filings with the Securities and Exchange
Commission. Forward-looking statements included herein speak only as
of the date hereof and UIL Holdings undertakes no obligation to revise or update
such statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events or circumstances.
The
following are summaries of UIL Holdings’ unaudited consolidated financial
information for the third quarter and first nine months of 2009 and
2008:
###
4
|
UIL
HOLDINGS CORPORATION
|
||||||||||||||||
|
CONSOLIDATED
STATEMENT OF INCOME
|
||||||||||||||||
|
(In
Thousands except per share amounts)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Operating
Revenues
|
||||||||||||||||
|
Utility
|
$ | 255,000 | $ | 278,499 | $ | 690,433 | $ | 728,854 | ||||||||
|
Non-utility
|
212 | 218 | 653 | 617 | ||||||||||||
|
Total
Operating Revenues
|
255,212 | 278,717 | 691,086 | 729,471 | ||||||||||||
|
Operating
Expenses
|
||||||||||||||||
|
Operation
|
||||||||||||||||
|
Purchased
power
|
88,560 | 121,371 | 264,099 | 330,890 | ||||||||||||
|
Operation
and maintenance
|
61,898 | 55,560 | 164,686 | 160,474 | ||||||||||||
|
Transmission
wholesale
|
18,584 | 15,906 | 42,373 | 33,888 | ||||||||||||
|
Depreciation
and amortization
|
26,568 | 27,326 | 73,364 | 77,718 | ||||||||||||
|
Taxes
- other than income taxes
|
17,439 | 14,657 | 44,847 | 38,218 | ||||||||||||
|
Total
Operating Expenses
|
213,049 | 234,820 | 589,369 | 641,188 | ||||||||||||
|
Operating
Income
|
42,163 | 43,897 | 101,717 | 88,283 | ||||||||||||
|
Other
Income and (Deductions), net
|
3,505 | 2,374 | 7,322 | 6,253 | ||||||||||||
|
Interest
Charges, net
|
||||||||||||||||
|
Interest
on long-term debt
|
9,673 | 7,154 | 27,561 | 21,523 | ||||||||||||
|
Other
interest, net
|
183 | 1,030 | 1,094 | 1,810 | ||||||||||||
| 9,856 | 8,184 | 28,655 | 23,333 | |||||||||||||
|
Amortization
of debt expense and redemption premiums
|
377 | 431 | 1,371 | 1,297 | ||||||||||||
|
Total
Interest Charges, net
|
10,233 | 8,615 | 30,026 | 24,630 | ||||||||||||
|
Income
Before Income Taxes, Equity Earnings and
|
||||||||||||||||
|
Discontinued
Operations
|
35,435 | 37,656 | 79,013 | 69,906 | ||||||||||||
|
Income
Taxes
|
13,682 | 16,047 | 31,399 | 30,112 | ||||||||||||
|
Income
Before Equity Earnings and Discontinued Operations
|
21,753 | 21,609 | 47,614 | 39,794 | ||||||||||||
|
Income
(Loss) from Equity Investments
|
17 | 22 | 45 | (231 | ) | |||||||||||
|
Income
from Continuing Operations
|
21,770 | 21,631 | 47,659 | 39,563 | ||||||||||||
|
Discontinued
Operations, Net of Tax
|
(30 | ) | (93 | ) | (108 | ) | (167 | ) | ||||||||
|
Net
Income
|
$ | 21,740 | $ | 21,538 | $ | 47,551 | $ | 39,396 | ||||||||
|
Average
Number of Common Shares Outstanding - Basic
|
29,885 | 25,135 | 27,370 | 25,100 | ||||||||||||
|
Average
Number of Common Shares Outstanding - Diluted
|
30,126 | 25,429 | 27,608 | 25,411 | ||||||||||||
|
Earnings
Per Share of Common Stock - Basic:
|
||||||||||||||||
|
Continuing
Operations
|
$ | 0.73 | $ | 0.86 | $ | 1.74 | $ | 1.58 | ||||||||
|
Discontinued
Operations
|
- | - | - | (0.01 | ) | |||||||||||
|
Net
Earnings
|
$ | 0.73 | $ | 0.86 | $ | 1.74 | $ | 1.57 | ||||||||
|
Earnings
Per Share of Common Stock - Diluted:
|
||||||||||||||||
|
Continuing
Operations
|
$ | 0.73 | $ | 0.85 | $ | 1.73 | $ | 1.56 | ||||||||
|
Discontinued
Operations
|
- | - | - | (0.01 | ) | |||||||||||
|
Net
Earnings
|
$ | 0.73 | $ | 0.85 | $ | 1.73 | $ | 1.55 | ||||||||
|
Cash
Dividends Declared per share of Common Stock
|
$ | 0.432 | $ | 0.432 | $ | 1.296 | $ | 1.296 | ||||||||
5
|
UIL
HOLDINGS CORPORATION
|
||||||||
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
||||||||
|
(Unaudited)
|
||||||||
|
September
30,
|
December
31,
|
|||||||
|
(thousands
of dollars)
|
2009
|
2008
|
||||||
|
ASSETS
|
||||||||
|
Current
assets
|
$ | 286,032 | $ | 252,186 | ||||
|
Current
assets of discontinued operations held for sale
|
4,341 | 5,437 | ||||||
|
Other
investments
|
10,333 | 10,307 | ||||||
|
Net
property, plant and equipment
|
1,113,408 | 1,073,588 | ||||||
|
Regulatory
assets
|
690,450 | 723,079 | ||||||
|
Deferred
Charges and Other Assets
|
55,778 | 18,589 | ||||||
|
Total
Assets
|
$ | 2,160,342 | $ | 2,083,186 | ||||
|
LIABILITIES
AND CAPITALIZATION
|
||||||||
|
Current
liabilities
|
$ | 262,317 | $ | 366,671 | ||||
|
Current
liabilities of discontinued operations held for sale
|
5,247 | 5,467 | ||||||
|
Noncurrent
liabilities
|
332,248 | 304,292 | ||||||
|
Deferred
income taxes
|
292,253 | 298,824 | ||||||
|
Regulatory
liabilities
|
84,542 | 84,322 | ||||||
|
Total
Liabilities
|
976,607 | 1,059,576 | ||||||
|
Long-term
debt
|
604,192 | 549,031 | ||||||
|
Net
common stock equity
|
579,543 | 474,579 | ||||||
|
Total
Capitalization
|
1,183,735 | 1,023,610 | ||||||
|
Total
Liabilities and Capitalization
|
$ | 2,160,342 | $ | 2,083,186 | ||||
6