Attached files
| file | filename |
|---|---|
| 8-K - UIL FORM 8-K DATED AUGUST 4, 2010 - UIL HOLDINGS CORP | uil_form8kdated08042010.htm |
| EX-99.1 - UIL EXHIBIT 99.1 - UIL EARNINGS 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
|
August 4, 2010
|
Analyst Contact:
|
Susan Allen:
|
203-499-2409
|
|
Media Contact:
|
Anita Steeves:
|
203-499-2901
|
UIL Holdings Corporation Reports Second Quarter 2010 Results
UIL Holdings Corporation (NYSE: UIL) today reported consolidated net income for the second quarter of 2010 of $10.1 million, or $0.34 per basic share, compared to $13.8 million, or $0.51 per basic share, for the same period in 2009. The 2010 earnings for both the second quarter and first six months of 2010 include after-tax acquisition-related costs in the amount of $4.3 million, or $0.14 per share. Excluding the after-tax acquisition-related costs, consolidated net income for the second quarter of 2010 was $14.4 million, or $0.48 per share.
For the first six months of 2010, UIL’s consolidated net income was $26.2 million, or $0.87 per basic share, compared to $25.8 million, or $0.99 per basic share, for the same period in 2009. Excluding the after-tax acquisition-related costs mentioned above, consolidated net income for the first six months of 2010 was $30.5 million, or $1.01 per share.
“There is much to be excited about at UIL. We recently initiated a strategic transaction and two other strategic initiatives are in process,” said James P. Torgerson, UIL’s president and chief executive officer. “In May, we announced that UIL and Iberdrola, USA, Inc. entered into a definitive agreement under which UIL would acquire The Southern Connecticut Gas Company, Connecticut Natural Gas Corporation and The Berkshire Gas Company and their respective holding companies. The acquisition is expected to close in the first quarter of 2011.”
“GenConn Energy’s Devon facility, a 50-50 joint venture between NRG Energy, Inc. and The United Illuminating Company (UI), is now operating. And lastly, UI entered into an agreement with The Connecticut Light & Power Company (CL&P) under which UI will have the right to invest in and own transmission assets associated with the Connecticut portion of CL&P’s New England East West Solution projects,” added Torgerson.
Net income for the second quarter and first six months of 2010, compared to the same periods in 2009, by line of business, are as follows:
- more -
|
Quarter Ended June 30,
|
6 Months Ended June 30,
|
|||||||||||||||||||||||
|
2010
|
2009
|
Difference
|
2010
|
2009
|
Difference
|
|||||||||||||||||||
|
Net Income (Loss) ($M)
|
||||||||||||||||||||||||
|
UI
|
||||||||||||||||||||||||
|
Distribution, CTA and Other
|
$ | 8.0 | $ | 8.1 | $ | (0.1 | ) | $ | 17.9 | $ | 14.9 | $ | 3.0 | |||||||||||
|
Transmission
|
7.1 | 6.2 | 0.9 | 13.8 | 12.3 | 1.5 | ||||||||||||||||||
|
Total UI Net Income
|
$ | 15.1 | $ | 14.3 | $ | 0.8 | $ | 31.7 | $ | 27.2 | $ | 4.5 | ||||||||||||
|
UIL Corporate, excl. acquisition-related costs
|
(0.7 | ) | (0.5 | ) | (0.2 | ) | (1.2 | ) | (1.4 | ) | 0.2 | |||||||||||||
|
Subtotal
|
$ | 14.4 | $ | 13.8 | $ | 0.6 | $ | 30.5 | $ | 25.8 | $ | 4.7 | ||||||||||||
|
UIL Corporate acquisition-related costs
|
(4.3 | ) | - | (4.3 | ) | (4.3 | ) | - | (4.3 | ) | ||||||||||||||
|
Total Net Income
|
$ | 10.1 | $ | 13.8 | $ | (3.7 | ) | $ | 26.2 | $ | 25.8 | $ | 0.4 | |||||||||||
|
Average Shares Outstanding - Basic
|
30.1 | 27.0 | 3.1 | 30.0 | 26.1 | 3.9 | ||||||||||||||||||
|
EPS - basic, excl. acquisition-related costs
|
$ | 0.48 | $ | 0.51 | $ | (0.03 | ) | $ | 1.01 | $ | 0.99 | $ | 0.02 | |||||||||||
|
EPS - basic, incl. acquisition-related costs (GAAP)
|
$ | 0.34 | $ | 0.51 | $ | (0.17 | ) | $ | 0.87 | $ | 0.99 | $ | (0.12 | ) | ||||||||||
|
The dilutive effect of the May 2009 issuance of 4,600,000 shares of common stock was $0.03 per share and $0.12 per share for the second quarter and the first six months of 2010, respectively.
|
||||||||||||||||||||||||
Distribution, CTA & Other
For the second quarter of 2010, the distribution business had total earnings of $8.0 million, compared to $8.1 million for the same period in 2009. A favorable variance in revenues due to the approved rate increase effective January 1, 2010 was more than offset by the unfavorable variance from the equity investment in GenConn resulting from a delay (from June 1, 2010) in commencing operation. All four units at GenConn’s Devon site are now operating.
For the first six months of 2010, the distribution business had total earnings of $17.9 million, compared to $14.9 million for the same period in 2009. The increase was primarily due to favorable variances in distribution rates and pricing as a result of the approved rate increase effective January 1, 2010, offset slightly by the unfavorable variance from the equity investment in GenConn.
Transmission
For the second quarter of 2010, the transmission business had total earnings of $7.1 million, compared to $6.2 million for the same period in 2009. For the first six months of 2010, total transmission earnings were $13.8 million, compared to $12.3 million for the same period in 2009. The favorable earnings for both the quarter and first six months of 2010 were primarily due to an increase in the allowance for funds used during construction, as well as higher rate base and equity capitalization with approximately the same allowed return of 12.3% to 12.5% compared to the same periods in 2009.
- more -
2
UIL Corporate
UIL Corporate incurred net after-tax costs of $5.0 million, or $0.16 per basic share, in the second quarter of 2010 compared to net after-tax costs of $0.5 million, or $0.02 per basic share, in the same period of 2009. UIL Corporate incurred net after-tax costs of $5.5 million, or $0.18 per basic share, in the first six months of 2010, compared to net after-tax costs of $1.4 million, or $0.05 per basic share, in the same period in 2009. The increase for both the second quarter and first six months of 2010 was almost entirely due to after-tax acquisition- related costs in the amount of $4.3 million, or $0.14 per share.
Looking Forward
UIL affirms its earnings estimate for 2010 of $1.92–$2.07 per basic share on a consolidated basis, excluding the impact of acquisition-related costs and events. The 2010 earnings estimate for total UI of $1.98–$2.10 per basic share also remains unchanged, but various components of this guidance have been revised. Details of the components are summarized as follows and explained below:
|
2010 Earnings Expectations, excl. Acquisition-related Costs and Events
|
||||||||
|
Approximate Net Income*
|
EPS - Basic
|
|||||||
|
UI
|
||||||||
|
Distribution, CTA & Other
|
$ | 32 - $34 | $ | 1.06 - $1.13 | ||||
|
Transmission
|
26 - 28 | 0.87 - 0.93 | ||||||
|
GenConn
|
1 - 2 | 0.05 - 0.07 | ||||||
|
Total UI (1)
|
$ | 59 - $63 | $ | 1.98 - $2.10 | ||||
|
UIL Corporate, excl. acquisition-related costs & events
|
(3) - (2 | ) | (0.09) - (0.05 | ) | ||||
|
Total UIL, excl. acquisition-related costs & events (1)
|
$ | 57 - $62 | $ | 1.92 - $2.07 | ||||
|
(1) Expectations are not intended to be additive.
|
||||||||
|
* Rounded to nearest million
|
||||||||
The revised earnings estimate for distribution, CTA and Other is $1.06–$1.13 per share, compared to the previously reported estimate of $1.02–$1.09 per share. The change reflects better than anticipated year-to-date earnings performance and projected operations and maintenance expenses for the remainder of 2010.
The earnings estimate for transmission of $0.87–$0.93 per share, reflects an increase of $0.02 per share to the lower end of the range, compared to the previously reported estimate. This reflects improved earnings resulting from an increase in allowance for funds used during construction.
- more -
3
The revised earnings estimate for GenConn is $0.05–$0.07 per share, compared to the previously reported estimate of $0.07–$0.09 per share due to the delay in achieving commercial operations noted above.
Excluding the impact of acquisition-related costs, the earnings estimate for UIL Corporate remains unchanged.
In addition, the Company has recently completed a review of UI’s capital expenditure program. The current projection for the years 2010 through 2019 is $1.9 billion in capital projects with approximately 61% in distribution, 33% in transmission and the remaining 6% in GenConn. The current projection is an increase of approximately $200 million from the previous ten year capital expenditure projection of $1.7 billion published in the summer of 2009.
Second Quarter Earnings Conference Call
In conjunction with this earnings release, UIL will conduct a webcast conference call with financial analysts on Thursday, August 5, 2010, beginning at 10:00 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.
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 325,000 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
UIL Holdings believes that a breakdown, presented on a net income and per share basis, of how the acquisition costs described above contributed to the change in net income is useful in understanding the overall change in the consolidated results of operations for UIL Holdings from one reporting period to another. UIL Holdings presents such per share amounts by taking the dollar amount of the applicable change for the acquisition costs, booked in accordance with generally accepted accounting principles (GAAP), and applying UIL Holdings' combined effective statutory federal and state tax rate and then dividing by the average number of shares of UIL Holdings common stock outstanding for the periods presented. Any such amounts provided are provided for informational purposes only and are not intended to be used to calculate "Pro-forma" amounts.
UIL Holdings also 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 for each of UIL Holdings’ lines of business. EPS is calculated by dividing the projected 2010 net income for each line of business by the projected average number of shares of UIL Holdings common stock outstanding for 2010. Total consolidated EPS is a GAAP-basis presentation.
- more -
4
Forward-Looking Statements
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. Such risks and uncertainties with respect to the Iberdrola transaction include, but are not limited to: the possibility that the proposed transaction is delayed or does not close, including due to the failure to receive required regulatory approvals, the taking of governmental action (including the passage of legislation) to block the transaction, or the failure of other closing conditions; the possibility that the expected benefits will not be realized, or will not be realized within the expected time period; and the ability to issue equity and debt securities upon terms and conditions UIL believes are appropriate. 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 second quarter and first six months of 2010 and 2009:
5
6
|
UIL HOLDINGS CORPORATION
|
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
||||||||
|
(Unaudited)
|
||||||||
|
June 30,
|
December 31,
|
|||||||
|
(thousands of dollars)
|
2010
|
2009
|
||||||
|
ASSETS
|
||||||||
|
Current assets
|
$ | 231,353 | $ | 236,694 | ||||
|
Other investments
|
9,535 | 10,659 | ||||||
|
Net property, plant and equipment
|
1,206,584 | 1,153,001 | ||||||
|
Regulatory assets
|
594,215 | 676,428 | ||||||
|
Deferred Charges and Other Assets
|
153,468 | 144,978 | ||||||
| Total Assets | $ | 2,195,155 | $ | 2,221,760 | ||||
|
LIABILITIES AND CAPITALIZATION
|
||||||||
|
Current liabilities
|
$ | 271,122 | $ | 243,334 | ||||
|
Noncurrent liabilities
|
320,879 | 374,686 | ||||||
|
Deferred income taxes
|
267,187 | 273,558 | ||||||
|
Regulatory liabilities
|
81,346 | 82,457 | ||||||
| Total Liabilities | 940,534 | 974,035 | ||||||
|
Long-term debt
|
676,243 | 673,549 | ||||||
|
Net Common Stock Equity
|
578,378 | 574,176 | ||||||
| Total Capitalization | 1,254,621 | 1,247,725 | ||||||
| Total Liabilities and Capitalization | $ | 2,195,155 | $ | 2,221,760 | ||||
7