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UIL Reports Second Quarter 2013 Earnings and Reaffirms 2013 Earnings Guidance



  UIL Reports Second Quarter 2013 Earnings and Reaffirms 2013 Earnings
  Guidance

Business Wire

NEW HAVEN, Conn. -- August 6, 2013

Today, UIL Holdings Corporation (NYSE: UIL) reported consolidated net income
of $17.9 million, or $0.35 per diluted share, in the second quarter of 2013,
an increase of $5.9 million, or $0.12 per diluted share, compared to the same
period in 2012. For the first six months of 2013, UIL’s consolidated net
income was $69.7 million, or $1.36 per diluted share, an increase of $10.7
million, or $0.20 per diluted share, compared to the same period in 2012.

“All subsidiaries reported improved financial performance for the quarter and
year-to-date,” said James P. Torgerson, UIL’s president and chief executive
officer. “The increased earnings in 2013 were due to the return to near normal
weather, an increased transmission rate base and the impacts of natural gas
conversions. Our conversions of 7,749 for the first half of the year are 70%
ahead of 2012 levels and represent 64% of this year’s goal of 12,200
conversions.”

“On the regulatory front, last week, PURA issued a draft decision relating to
UI’s electric distribution rate case. Today, we filed written exceptions that
addressed aspects of the draft that are contrary to the record, law,
ratemaking principles and commission precedent. The final decision is expected
in mid-August,” added Torgerson. “And, in early July, Connecticut Natural Gas
filed an application with PURA to increase its gas delivery rate.”

UIL Holdings Corporation’s results for the second quarter and first six months
of 2013, compared to the same periods in 2012, are presented in the table
below:

             Net Income (Loss) - $M
               Quarter ended June 30,            Six months ended June 30,
               2013       2012        '13 vs     2013        2012        '13 vs
                                      '12                                '12
                                                                          
Electric
Distribution   $ 12.1     $ 10.9      $ 1.2      $ 26.6      $ 25.1      $ 1.5
& Other
Electric         8.9        7.8         1.1        17.6        15.2        2.4
Transmission
Gas              (0.9  )    (3.2  )     2.3        30.6        25.2        5.4
Distribution
                                                                          
Operating        20.1       15.5        4.6        74.8        65.5        9.3
Companies
                                                                          
Corporate        (2.2  )    (3.5  )     1.3        (5.1  )     (6.5  )     1.4
                                                                          
Consolidated   $ 17.9     $ 12.0      $ 5.9      $ 69.7      $ 59.0      $ 10.7
Earnings
                                                                          
               Earnings (Loss) Per Share
               Quarter ended June 30,            Six months ended June 30,
               2013       2012        '13 vs     2013        2012        '13 vs
                                      '12                                '12
                                                                          
Electric
Distribution   $ 0.24     $ 0.21      $ 0.03     $ 0.52      $ 0.49      $ 0.03
& Other
Electric         0.17       0.15        0.02       0.34        0.30        0.04
Transmission
Gas              (0.02 )    (0.06 )     0.04       0.60        0.49        0.11
Distribution
                                                                          
Operating        0.39       0.30        0.09       1.46        1.28        0.18
Companies
                                                                          
Corporate        (0.04 )    (0.07 )     0.03       (0.10 )     (0.12 )     0.02
                                                                          
Consolidated   $ 0.35     $ 0.23      $ 0.12     $ 1.36      $ 1.16      $ 0.20
Earnings
                                                                          
Avg. Shares      51.2       51.0                   51.2        51.0
- diluted
                                                                          
Amounts may not add due
to rounding

United Illuminating

United Illuminating (UI) earnings increased by $2.3 million, or $0.05 per
diluted share and $3.9 million, or $0.07 per diluted share for the second
quarter and the first six months of 2013 compared to the same periods in 2012,
respectively. Details of the increase follow.

                      Electric distribution, CTA & other

The increase in earnings for the second quarter and first six months of 2013
compared to the same periods in 2012 was due to the absence of after-tax
earnings sharing that was recorded in 2012. Due to an increased rate base, no
earnings sharing has been recorded in 2013.

In the second quarter and first six months of 2013, pre-tax earnings from the
equity investment in GenConn were $3.8 million and $7.7 million, respectively,
compared to $3.9 million and $8.4 million for the same periods in 2012. The
decrease in pre-tax earnings year over year was primarily due to non-recurring
adjustments recorded in the first quarter of 2012.

                            Electric transmission

The increase in earnings for the second quarter of 2013 compared to the same
period in 2012 was primarily attributable to an increase in rate base.

The increase in earnings for the first six months of 2013 compared to the same
period in 2012 was primarily attributable to increases in rate base and
allowance for funds used during construction.

Gas distribution

The improved results for the second quarter of 2013 compared to the second
quarter 2012 was due to the impact of colder weather, increased normalized
usage per customer and customer growth. (See chart below) This was partially
offset by increased O&M expenses.

The increase in earnings for the first six months of 2013 compared to the same
period in 2012 was due to the impact of colder weather, increased normalized
usage per customer and customer growth. (See chart below) This was partially
offset by increased O&M expenses and the absence of $3.5 million, pre-tax, of
weather insurance proceeds that were recorded in the first quarter of 2012.

The earnings impacts from weather, normalized usage per customer and customer
growth are presented in the table below:

Impact of Weather, Normalized Usage per Customer and Customer Growth
(In Thousands except for per share amounts)
                                 2Q '13 vs. 2Q '12       YTD '13 vs. YTD '12
                                 Gross Margin   EPS      Gross Margin   EPS
Weather                          $    5,168     $ 0.06   $   14,142     $ 0.17
Normalized usage per customer         1,186       0.01       2,235        0.03
Subtotal                              6,354       0.07       16,377       0.20
Customer Growth                       1,481       0.02       3,875        0.04
Total                            $    7,835     $ 0.09   $   20,252     $ 0.24
                                                                         
Amounts may not add due to
rounding

*Colder temperatures in the second quarter and first six months of 2013
compared to the same periods in 2012 resulted in a 34.0% and 23.9% increase in
heating degree days, respectively.

Corporate

The decrease in costs for the second quarter and the first six months of 2013
compared to the same periods in 2012 was primarily due to tax benefits
associated with unitary filing requirements for Massachusetts state income
taxes.

Looking Forward

UIL reaffirms its consolidated earnings guidance for 2013 of $2.05-$2.25 per
diluted share. Forecasted earnings for 2013, excluding potential impacts from
PURA’s decision in UI’s electric distribution rate case, are detailed in the
table below.

Category                               Approximate Net       EPS - diluted^(3)
                                       Income^(2)
                                                            
Electric distribution, CTA &           $46 - $54             $0.90 - $1.05
other
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

Second quarter 2013 conference call

UIL Holdings will conduct a webcast conference call with financial analysts on
Wednesday, August 7, 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 diluted 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 by line of
business, including as presented above in the net income discussion and in the
earnings guidance section is useful in understanding and evaluating actual and
projected financial performance and contribution of UIL’s businesses. EPS by
business is calculated by taking the pretax amounts determined in accordance
with GAAP of each line of business, and applying the effective statutory
federal and state tax rate and then dividing the results by the average number
of diluted shares of UIL common stock outstanding for the periods presented.
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
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 second quarter and first six months of 2012 and 2013:

UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In Thousands except per share amounts)
(Unaudited)
                                                                    
                             Three Months Ended          Six Months Ended
                             June 30,                    June 30,
                             2013          2012          2013        2012
                                                                      
Operating Revenues           $ 319,074     $ 282,842     $ 867,113   $ 740,660
                                                                      
Operating Expenses
Operation
Purchased power                30,193        34,358        68,682      75,016
Natural gas purchased          58,910        39,953        278,177     190,758
Operation and                  94,470        87,920        183,729     173,607
maintenance
Transmission wholesale         18,517        17,234        37,335      33,282
Depreciation and               45,669        43,048        95,776      89,607
amortization
Taxes - other than             28,080        23,822        63,946      54,422
income taxes
Total Operating Expenses       275,839       246,335       727,645     616,692
Operating Income               43,235        36,507        139,468     123,968
                                                                      
Other Income and               5,204         4,872         10,565      13,789
(Deductions), net
                                                                      
Interest Charges, net
Interest on long-term          21,690        21,825        43,376      42,927
debt
Other interest, net            1,523         1,312         2,548       2,847
                               23,213        23,137        45,924      45,774
Amortization of debt
expense and redemption         609           599           1,210       1,208
premiums
Total Interest Charges,        23,822        23,736        47,134      46,982
net
                                                                      
                                                                      
Income from Equity             3,848         3,915         7,660       8,402
Investments
                                                                      
Income Before Income           28,465        21,558        110,559     99,177
Taxes
                                                                      
Income Taxes                   10,531        9,546         40,818      40,089
                                                                      
Net Income                     17,934        12,012        69,741      59,088
Less:
Preferred Stock
Dividends of
Subsidiary,                    10            13            26          39
Noncontrolling Interests
                                                                      
Net Income attributable      $ 17,924      $ 11,999      $ 69,715    $ 59,049
to UIL Holdings
                                                                      
Average Number of Common
Shares Outstanding -           50,972        50,793        50,939      50,740
Basic
Average Number of Common
Shares Outstanding -           51,201        51,041        51,177      51,002
Diluted
                                                                      
Earnings Per Share of        $ 0.35        $ 0.24        $ 1.37      $ 1.16
Common Stock - Basic:
                                                                      
Earnings Per Share of        $ 0.35        $ 0.23        $ 1.36      $ 1.16
Common Stock - Diluted:
                                                                      
Cash Dividends Declared
per share of Common          $ 0.432       $ 0.432       $ 0.864     $ 0.864
Stock
                                                                      
                                                                      
UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the Three and Six Months Ended June 30, 2013 and 2012
(Thousands of Dollars)
(Unaudited)
                                                                      
                           Three Months Ended            Six Months Ended
                           June 30,                      June 30,
                           2013            2012          2013        2012
                                                                      
Net Income                   $ 17,934      $ 12,012      $ 69,741    $ 59,088
Other Comprehensive            (45     )     (154    )     206         201
Income, net
Comprehensive Income           17,889        11,858        69,947      59,289
Less:
Preferred Stock
Dividends of
Subsidiary,                    10            13            26          39
Noncontrolling Interests
                                                                      
Comprehensive Income
attributable to UIL          $ 17,879      $ 11,845      $ 69,921    $ 59,250
Holdings
                                                                      
                                                                      

UIL HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
                                                                 
                                                  June 30,        December 31,
(thousands of dollars)                            2013            2012
ASSETS
Current assets                                    $ 545,879       $  628,683
Other investments                                   147,115          148,730
Net property, plant and equipment                   2,883,400        2,787,354
Regulatory assets                                   954,203          1,014,515
Goodwill                                            266,205          266,205
Deferred charges and other assets                   78,246           113,880
Total Assets                                      $ 4,875,048     $  4,959,367
                                                                   
                                                                   
                                                                   
LIABILITIES AND CAPITALIZATION
Current liabilities                               $ 531,331       $  625,056
Noncurrent liabilities                              630,183          708,968
Deferred income taxes                               469,837          462,940
Regulatory liabilities                              500,496          445,156
Total Liabilities                                   2,131,847        2,242,120
                                                                   
Long-term debt, net of unamortized discount         1,597,779        1,600,354
and premium
Preferred stock of subsidiary                       340              340
Net common stock equity                             1,145,082        1,116,553
Total Capitalization                                2,743,201        2,717,247
                                                                   
Total Liabilities and Capitalization              $ 4,875,048     $  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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