Attached files
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| 8-K - UIL FORM 8-K DATED MAY 3, 2011 - UIL HOLDINGS CORP | uil_form8kdated05032011.htm |
| EX-99.1 - UIL EXHIBIT 99.1 - 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
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May 3, 2011
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Analyst Contact:
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Susan Allen
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203-499-2409
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Media Contact:
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Michael West Jr.
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203-499-3858
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UIL Holdings Corporation Reports First Quarter 2011 Financial Results and Increases 2011 Earnings Guidance
UIL Holdings Corporation (NYSE: UIL) today reported consolidated net income of $52.0 million, or $1.02 per diluted share, compared to net income of $16.1 million, or $0.53 per diluted share for the same period last year. The 2011 consolidated quarterly results include $37.4 million, or $0.73 per diluted share, from the recently acquired gas companies and the impacts from the acquisition as detailed in the table below.
“UIL had a solid first quarter in 2011. It was the first full quarter of earnings from the gas businesses, GenConn Devon was fully operational and we had higher earnings from transmission due to a higher rate base,” commented James P. Torgerson, UIL’s President and CEO. “And, we have identified the savings that we had projected from the acquisition of the gas companies and we are on track to integrate the processes and initiatives needed to have the savings realized in 2012.”
“Also, we have launched an aggressive marketing campaign to convert businesses and households in our territory to natural gas,” added Torgerson. “There are substantial savings to using natural gas compared to other energy sources, and approximately 37% of businesses and households on our gas mains are not currently natural gas customers.”
The following table provides earnings per diluted share for the first quarter of 2011, compared to the same period in 2010.
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Quarter Ended March 31,
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2011
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2010
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Difference
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EPS - diluted
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UIL excl. acquisition & transition related activities
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$ | 0.59 | $ | 0.53 | $ | 0.06 | ||||||
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Gas distribution
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$ | 0.73 | $ | - | $ | 0.73 | ||||||
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Interest expense related to $450M debt issuance
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$ | (0.06 | ) | $ | - | $ | (0.06 | ) | ||||
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September 2010 equity issuance
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$ | (0.24 | ) | $ | - | $ | (0.24 | ) | ||||
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UIL Consolidated
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$ | 1.02 | $ | 0.53 | $ | 0.49 | ||||||
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Electric distribution, CTA & other
Earnings from the electric distribution business in the first quarter of 2011 were $10.7 million, or $0.21 per diluted share, compared to $9.9 million, or $0.33 per diluted share, for the same period in 2010. The increase in earnings was primarily attributable to increased income from the investment in GenConn, partially offset by increased operating expenses and lower CTA rate base. GenConn Devon contributed $2.1 million, or $0.04 per diluted share. GenConn Middletown remains on track to be operational in June.
Electric transmission
Earnings from the electric transmission business in the first quarter of 2011 were $7.7 million, or $0.15 per diluted share, compared to $6.7 million, or $0.22 per diluted share, for the same period in 2010. The increase was primarily attributable to an increase in the AFUDC, as well as higher rate base, partially offset by lower equity capitalization, and a lower allowed return compared to first quarter 2010.
Gas distribution
Earnings from the gas distribution businesses in the first quarter of 2011 were $37.4 million, or $0.73 per diluted share, which reflect colder than normal weather in the first quarter. The first calendar quarter is typically the strongest earnings quarter of the year for gas operations.
Corporate
UIL Holdings retains certain costs, primarily interest expense, at the holding company, or “corporate” levels, which are not allocated to the various subsidiaries. UIL Corporate incurred net after-tax costs of $3.8 million, or $0.07 per diluted share in the first quarter of 2011, compared to net after-tax costs of $0.5 million, or $0.02 per diluted share, in the same period of 2010. The increase was predominately attributable to interest expense of $3.2 million, or $0.06 per diluted share, related to the October 2010 issuance of $450 million of public debt used to partially fund the acquisition.
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Looking Forward
UIL has revised it previous guidance upward and narrowed the range. UIL’s revised consolidated earnings estimate for 2011 is $1.85-$2.00 per diluted share compared to the previous guidance of $1.75-$1.95 per basic share. The revision is primarily due to higher than expected first quarter earnings from gas distribution companies. Accordingly, guidance for the gas distribution companies has been increased to a range of $0.78-$0.88 per diluted share from the previous guidance of $0.70-$0.80 per basic share. The earnings guidance for UI and UIL Corporate has not been revised. Details of the 2011 earnings estimates are summarized as follows:
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2
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2011 Earnings Expectations
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Approximate Net Income(2)
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EPS - diluted(3)
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Electric distribution, CTA & other
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$ | 39 - $46 | $ | 0.78 - $0.90 | ||||
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Electric transmission
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$ | 28 - $30 | $ | 0.55 - $0.60 | ||||
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Total UI (1)
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$ | 68 - $73 | $ | 1.35 - $1.45 | ||||
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Gas distribution
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$ | 39 - $45 | $ | 0.78 - $0.88 | ||||
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UIL Corporate
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$ | (15) - ($14) | $ | (0.30) - ($0.28) | ||||
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Total UIL (1)
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$ | 94 - $101 | $ | 1.85 - $2.00 | ||||
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(1) Expectations are not intended to be additive
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(2) Rounded to the nearest million
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(3) Assumes approximately 51.0 million average shares outstanding
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The revision to the gas distribution companies’ guidance is primarily due to colder than normal weather during the winter heating season. The first quarter is typically the highest sales quarter of the year for gas companies, and the narrowing of the UIL earnings guidance reflects the seasonality of the gas companies’ earnings.
First Quarter 2011 Earnings Conference Call
In conjunction with this earnings release, UIL will conduct a webcast conference call with financial analysts on Wednesday, May 4, 2011, 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.
Headquartered in New Haven, Connecticut, UIL Holdings Corporation (NYSE:UIL) is a diversified energy delivery company serving a total of 690,000 electric and natural gas utility customers in 66 communities across two states, with combined total assets of over $4 billion.
UIL is the parent company for The United Illuminating Company (UI), Connecticut Natural Gas Corporation (CNG), The Southern Connecticut Gas Company (SCG), and The Berkshire Gas Company (BGC), each more than 100 years old. UI provides for the transmission and delivery of electricity and other energy related services for Connecticut’s Greater New Haven and Bridgeport areas. SCG and CNG are natural gas distribution companies that serve customers in
Connecticut, while Berkshire Gas serves natural gas customers in western Massachusetts. UIL employs more than 1,850 people in the New England region. For more information on UIL Holdings, visit http://www.uil.com.
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Use of Non-GAAP Measures
UIL Holdings believes that a breakdown, presented on a net income and per share basis, of how the acquisition-related financial activities 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 activity, 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 2011 net income for each line of business by the projected average number of shares of UIL Holdings common stock outstanding for 2011. Total consolidated EPS is a GAAP-basis presentation.
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, gas 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’ subsidiaries, The United Illuminating Company, The Southern Connecticut Gas Company, Connecticut Natural Gas Corporation and The Berkshire Gas Company. Such risks and uncertainties with respect to UIL Holdings’ recent acquisition of The Southern Connecticut Gas Company, Connecticut Natural Gas Corporation and The Berkshire Gas Company include, but are not limited to, the possibility that the expected benefits will not be realized, or will not be realized within the expected time period. 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 first quarter of 2011 and 2010:
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UIL HOLDINGS CORPORATION
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CONSOLIDATED STATEMENT OF INCOME
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(In Thousands except per share amounts)
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(Unaudited)
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Three Months Ended
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2011
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2010
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Operating Revenues
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Electric distribution and transmission
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$ | 198,226 | $ | 220,276 | ||||
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Gas distribution
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362,824 | - | ||||||
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Non-utility
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3 | 4 | ||||||
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Total Operating Revenues
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561,053 | 220,280 | ||||||
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Operating Expenses
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Operation
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Purchased power
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49,263 | 75,348 | ||||||
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Natural gas purchased
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229,343 | - | ||||||
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Operation and maintenance
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93,998 | 51,621 | ||||||
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Transmission wholesale
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17,022 | 15,476 | ||||||
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Depreciation and amortization
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36,105 | 27,251 | ||||||
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Taxes - other than income taxes
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35,507 | 17,704 | ||||||
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Total Operating Expenses
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461,238 | 187,400 | ||||||
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Operating Income
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99,815 | 32,880 | ||||||
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Other Income and (Deductions), net
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4,665 | 4,056 | ||||||
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Interest Charges, net
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Interest on long-term debt
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21,337 | 9,877 | ||||||
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Other interest, net
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1,307 | 281 | ||||||
| 22,644 | 10,158 | |||||||
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Amortization of debt expense and redemption premiums
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830 | 393 | ||||||
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Total Interest Charges, net
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23,474 | 10,551 | ||||||
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Income Before Income Taxes, Equity Earnings
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81,006 | 26,385 | ||||||
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Income Taxes
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31,010 | 10,341 | ||||||
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Income Before Equity Earnings
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49,996 | 16,044 | ||||||
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Income (Loss) from Equity Investments
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2,062 | 8 | ||||||
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Net Income
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52,058 | 16,052 | ||||||
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Less:
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Preferred Stock Dividends of
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Subsidiary, Noncontrolling Interests
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14 | - | ||||||
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Net Income attributable to UIL Holdings
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$ | 52,044 | $ | 16,052 | ||||
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Average Number of Common Shares Outstanding - Basic
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50,518 | 30,013 | ||||||
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Average Number of Common Shares Outstanding - Diluted
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50,805 | 30,282 | ||||||
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Earnings Per Share of Common Stock - Basic:
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$ | 1.03 | $ | 0.53 | ||||
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Earnings Per Share of Common Stock - Diluted:
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$ | 1.02 | $ | 0.53 | ||||
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Cash Dividends Declared per share of Common Stock
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$ | 0.432 | $ | 0.432 | ||||
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UIL HOLDINGS CORPORATION
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
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For the Three Months Ended March 31, 2011 and 2010
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(Thousands of Dollars)
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| 2011 | 2010 | |||||||
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Net Income
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$ | 52,058 | $ | 16,052 | ||||
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Other Comprehensive Income
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172 | - | ||||||
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Less:
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Preferred Stock Dividends of
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Subsidiary, Noncontrolling Interests
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14 | - | ||||||
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Comprehensive Income
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$ | 52,216 | $ | 16,052 | ||||
5
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UIL HOLDINGS CORPORATION
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CONDENSED CONSOLIDATED BALANCE SHEET
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(Unaudited)
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March 31,
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December 31,
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(thousands of dollars)
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2011
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2010
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ASSETS
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Current assets
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$ | 574,289 | $ | 697,421 | ||||
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Other investments
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88,127 | 85,717 | ||||||
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Net property, plant and equipment
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2,370,169 | 2,327,450 | ||||||
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Regulatory assets
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967,049 | 925,889 | ||||||
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Goodwill
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299,976 | 298,890 | ||||||
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Deferred charges and other assets
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135,292 | 120,066 | ||||||
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Total Assets
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$ | 4,434,902 | $ | 4,455,433 | ||||
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LIABILITIES AND CAPITALIZATION
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Current liabilities
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$ | 494,052 | $ | 552,934 | ||||
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Noncurrent liabilities
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585,499 | 577,231 | ||||||
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Deferred income taxes
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372,275 | 354,164 | ||||||
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Regulatory liabilities
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363,677 | 382,366 | ||||||
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Total Liabilities
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1,815,503 | 1,866,695 | ||||||
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Long-term debt, net of unamortized discount and premium
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1,509,995 | 1,511,768 | ||||||
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Preferred stock of subsidiary
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828 | 828 | ||||||
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Net common stock equity
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1,108,576 | 1,076,142 | ||||||
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Total Capitalization
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2,619,399 | 2,588,738 | ||||||
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Total Liabilities and Capitalization
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$ | 4,434,902 | $ | 4,455,433 | ||||
6