UIL Reports First Quarter 2013 Earnings and Affirms 2013 Earnings Guidance

  UIL Reports First Quarter 2013 Earnings and Affirms 2013 Earnings Guidance

Business Wire

NEW HAVEN, Conn. -- May 2, 2013

Today, UIL Holdings Corporation (NYSE: UIL) reported consolidated net income
of $51.8 million, or $1.01 per diluted share, in the first quarter of 2013, an
increase of $4.7 million, or $0.09 per diluted share, compared to the same
period in 2012.

“In the first quarter, earnings at all the operating companies were higher
than the same period last year. The gas companies were not as negatively
impacted by the weather this year, and we saw a positive impact on earnings at
the gas businesses from our conversions in 2012,” said James P. Torgerson,
UIL’s president and chief executive officer. “We continue to switch households
and businesses to natural gas, and as of the end of the first quarter, we had
converted 4,787 customers and are well on our way to achieving this year’s
goal of 12,200,” continued Torgerson. “The proposals in the State of
Connecticut’s Comprehensive Energy Strategy should provide UIL with the tools
to enhance our existing gas growth strategy.”

UIL Holdings Corporation’s results for the first quarter of 2013, compared to
the first quarter of 2012, are presented in the table below:

                                Net Income (Loss) - $M
                                                          
                                    Quarter ended March 31,
                                                              
                                     2013       2012      '13 vs '12
                                                              
    Electric Distribution & Other   $ 14.4       $ 14.2       $   0.2
    Electric Transmission             8.7          7.4            1.3
    Gas Distribution                 31.5       28.5         3.0
                                                              
    Operating Companies               54.6         50.1           4.5
                                                              
    Corporate                         (2.8   )     (3.0   )       0.2
                                                            
    Consolidated Earnings           $ 51.8      $ 47.1      $   4.7
                                                              
                                    Earnings (Loss) Per Share
                                                          
                                    Quarter ended March 31,
                                                              
                                     2013       2012      '13 vs '12
                                                              
    Electric Distribution & Other   $ 0.28       $ 0.28       $   0.00
    Electric Transmission             0.17         0.15           0.02
    Gas Distribution                 0.62       0.55         0.07
                                                              
    Operating Companies               1.07         0.98           0.09
                                                              
    Corporate                         (0.06  )     (0.06  )       0.00
                                                            
    Consolidated Earnings           $ 1.01      $ 0.92      $   0.09
                                                              
    Avg. Shares - diluted             51,157       50,985

United Illuminating

United Illuminating earnings increased by $1.5 million, or $0.02 per diluted
share, in the first quarter of 2013, compared to the same period in 2012.
Details of the increase follow.

                      Electric distribution, CTA & other

The electric distribution business earned $14.4 million, or $0.28 per diluted
share, in the first quarter of 2013, which was slightly higher than the first
quarter of 2012. The small increase in net income was due to decreases in rent
expense and corporate allocations, which were partially offset by increases in
various operation and maintenance costs and a lower contribution from GenConn.

In the first quarter of 2013, pre-tax earnings from the equity investment in
GenConn were $3.8 million, compared to $4.5 million for the same period in
2012. The slight decrease in pre-tax earnings was primarily due to the absence
in 2013 of non-recurring adjustments recorded in the first quarter of 2012
largely relating to 2011.

                            Electric transmission

The electric transmission business earned $8.7 million, or $0.17 per diluted
share, in the first quarter of 2013, an increase of $1.3 million, or $0.02 per
diluted share, compared to the same period in 2012. The increase in earnings
for the first quarter of 2013, compared to the same period in 2012, was
primarily attributable to an increase in the income earned on an increase in
rate base and increased total deposits in the New England East-West Solutions
transmission projects.

Gas distribution

The gas distribution companies earned $31.5 million, or $0.62 per diluted
share, in the first quarter of 2013, an increase of $3.0 million, or $0.07 per
diluted share, compared to the first quarter in 2012. The increase in earnings
was due primarily to increased sales volume, partially offset by increased
operation and maintenance costs and the absence of $3.5 million, pre-tax, of
weather insurance proceeds that were recorded in the first quarter of 2012.

The increased sales volume in the first quarter of 2013, compared to the same
period in 2012, was due to colder weather, increased customer usage and
customer growth. The colder temperatures in the first quarter of 2013 resulted
in a $9.0 million increase in gross margin, compared to the first quarter of
2012, which is equivalent to approximately $0.11 per diluted share.

The increase in customer usage in the first quarter of 2013, compared to the
first quarter of 2012, resulted in an additional $1.0 million increase in
gross margin, or approximately $0.01 per diluted share. Customer growth in the
first quarter of 2013, compared to the first quarter of 2012, resulted in an
additional $2.4 million in gross margin, or approximately $0.03 per diluted
share.

The increase in earnings due to sales volume, as discussed above, was
partially offset by higher operation and maintenance costs, including
increases in pension and post-retirement benefits, corporate allocations,
uncollectibles and gross receipts taxes.

Corporate

UIL Corporate incurred net after-tax costs of $2.8 million, or $0.06 per
diluted share, in the first quarter of 2013, a decrease of $0.2 million,
compared to the same period in 2012. The decrease in costs was primarily due
to the allocation of returns on shared capital assets and decreased interest
expense.

Looking Forward

UIL affirms its consolidated earnings guidance for 2013 of $2.05 - $2.25 per
diluted share. Forecasted earnings for 2013 are detailed in the table below.

                                                       
                                      Approximate Net
  Category                                                  EPS - diluted^(3)
                                      Income^(2)
                                                            
  Electric distribution, CTA & other  $46 - $54             $0.90 - $1.05
  Electric transmission               $30 - $36             $0.60 - $0.70
                                                            
  Total Electric^(1)                  $79 - $87             $1.55 - $1.70
                                                            
  Gas distribution                    $33 - $38             $0.65 - $0.75
  UIL Corporate                       ($11) - ($9)          ($0.21) - ($0.18)
                                                            
  Total UIL^(1)                       $105 - $115           $2.05 - $2.25
                                                            
  ^(1) Expectations are not expected to be additive
  ^(2) Rounded to the nearest million
  ^(3) Assumes approximately 51.2 million average shares outstanding

First quarter 2013 conference call

UIL Holdings will conduct a webcast conference call with financial analysts on
Friday, May 3, 2013, beginning at 10:00 a.m. eastern time. UIL Holdings’
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 approximately
700,000 electric and natural gas utility customers in 66 communities across
two states, with combined total assets of over $4 billion.

UIL Holdings 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 (Berkshire), 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 serves natural gas customers
in western Massachusetts. UIL Holdings employs more than 1,850 people in the
New England region. For more information on UIL Holdings, visit
http://www.uil.com.

Use of Non-GAAP Measures

UIL Holdings believes that a breakdown, presented on a net income and per
share basis is useful in understanding the 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 pretax amounts
determined in accordance with generally accepted accounting principles (GAAP),
and applying UIL Holdings' combined effective statutory federal and state tax
rate and then dividing the results 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 2013 net income for each line of business by the average number
of shares of UIL Holdings common stock outstanding for 2013. 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 management’s 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. The foregoing and other
factors are discussed and should be reviewed in our most recent Annual Report
on Form 10-K for the year ended December 31, 2012, and other subsequent
periodic filings with the Securities and Exchange Commission. Forward-looking
statements included herein speak only as of the date hereof and we undertake
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 2012 and 2013:

UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In Thousands except per share amounts)
(Unaudited)
                                                                 
                                                        Three Months Ended
                                                        March 31,
                                                                    
                                                         2013       2012
                                                                    
Operating Revenues                                      $ 548,039   $ 457,818
                                                                    
Operating Expenses
Operation
Purchased power                                           38,489      40,658
Natural gas purchased                                     219,267     150,805
Operation and maintenance                                 89,259      85,687
Transmission wholesale                                    18,818      16,048
Depreciation and amortization                             50,107      46,559
Taxes - other than income taxes                          35,866     30,600
Total Operating Expenses                                 451,806    370,357
Operating Income                                         96,233     87,461
                                                                    
Other Income and (Deductions), net                       5,361      8,917
                                                                    
Interest Charges, net
Interest on long-term debt                                21,686      21,102
Other interest, net                                      1,025      1,535
                                                          22,711      22,637
Amortization of debt expense and redemption premiums     601        609
Total Interest Charges, net                              23,312     23,246
                                                                    
                                                                    
Income from Equity Investments                           3,812      4,487
                                                                    
Income Before Income Taxes                                82,094      77,619
Income Taxes                                             30,287     30,543
                                                                    
Net Income                                                51,807      47,076
Less:
Preferred Stock Dividends of
Subsidiary, Noncontrolling Interests                     16         26
                                                                    
Net Income attributable to UIL Holdings                 $ 51,791    $ 47,050
                                                                    
Average Number of Common Shares Outstanding - Basic       50,888      50,686
Average Number of Common Shares Outstanding - Diluted     51,157      50,985
                                                                    
Earnings Per Share of Common Stock - Basic              $ 1.02      $ 0.93
                                                                    
Earnings Per Share of Common Stock - Diluted            $ 1.01      $ 0.92
                                                                    
Cash Dividends Declared per share of Common Stock       $ 0.432     $ 0.432
                                                                    
                                                                 
                                                                    
UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the Three Months Ended March 31, 2013 and 2012
(Thousands of Dollars)
                                                                    
                                                        Three Months Ended
                                                        March 31,
                                                         2013       2012
                                                                    
Net Income                                              $ 51,807    $ 47,076
Other Comprehensive Income, net                          251        356
Comprehensive Income                                      52,058      47,432
Less:
Preferred Stock Dividends of
Subsidiary, Noncontrolling Interests                     16         26
Comprehensive Income attributable to UIL Holdings       $ 52,042    $ 47,406

UIL HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
                                                               
                                                    March 31,     December 31,
  (thousands of dollars)                             2013         2012
  ASSETS
  Current assets                                    $ 628,088     $  628,683
  Other investments                                   153,014        148,730
  Net property, plant and equipment                   2,843,434      2,787,354
  Regulatory assets                                   977,939        1,014,515
  Goodwill                                            266,205        266,205
  Deferred charges and other assets                  94,411        113,880
  Total Assets                                      $ 4,963,091   $  4,959,367
                                                                  
                                                                  
                                                                  
  LIABILITIES AND CAPITALIZATION
  Current liabilities                               $ 581,631     $  625,056
  Noncurrent liabilities                              673,138        708,968
  Deferred income taxes                               449,868        462,940
  Regulatory liabilities                             510,716       445,156
  Total Liabilities                                   2,215,353      2,242,120
                                                                  
  Long-term debt, net of unamortized discount and     1,599,066      1,600,354
  premium
  Preferred stock of subsidiary                       340            340
  Net common stock equity                            1,148,332     1,116,553
  Total Capitalization                                2,747,738      2,717,247
                                                                 
  Total Liabilities and Capitalization              $ 4,963,091   $  4,959,367

Contact:

UIL Holdings Corporation
Analyst:
Susan Allen, 203-499-2409
or
Media:
Michael West Jr., 203-499-3858
 
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