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UIL Reports Third Quarter 2015 Earnings and Affirms 2015 Earnings Guidance

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NEW HAVEN, Conn.--(BUSINESS WIRE)--

Today, UIL Holdings Corporation (NYSE: UIL) reported consolidated net income of $15.6 million, or $0.27 per diluted share, in the third quarter 2015, compared to $12.5 million, or $0.22 per diluted share, in the third quarter 2014. For the first nine months of 2015, consolidated net income was $89.1 million, or $1.55 per diluted share, compared to $77.3 million, or $1.35 per diluted share, for the same period in 2014.

Consolidated earnings for the third quarter and first nine months 2015 and 2014 include certain non-recurring items, which are explained below.

  • Merger-related expenses associated with the pending merger of UIL and Iberdrola USA, Inc. recorded in the third quarter and first nine months of 2015
  • Acquisition-related expenses associated with the now-terminated proposed acquisition of Philadelphia Gas Works recorded in the third quarter and first nine months of 2014
  • Transmission return on equity (ROE) reserves related to ROE proceedings pending at the Federal Energy Regulatory Commission (FERC) recorded in the third quarter and first nine months of 2015 and 2014

Consolidated earnings, excluding the non-recurring items, for the third quarter and nine months ended September 30 were:

  Quarter ended September 30,
Net Income (Loss) - $M   Earnings (Loss) per Share - Diluted
2015   2014   '15 vs '14 2015   2014   '15 vs '14
Consolidated Earnings $ 15.6   $ 12.5   $ 3.1 $ 0.27   $ 0.22   $ 0.05
 
Non-recurring items:
Merger/Acquisition-related expenses 0.4 0.9 (0.5 ) 0.01 0.01 -
Transmission ROE reserves   0.1     3.2     (3.1 )   -     0.06     (0.06 )
Consolidated Earnings, excl. non-recurring items $ 16.1   $ 16.6   $ (0.5 ) $ 0.28   $ 0.29   $ (0.01 )
 
Year-to-date September 30,
Net Income (Loss) - $M Earnings (Loss) per Share - Diluted
2015   2014   '15 vs '14 2015   2014   '15 vs '14
Consolidated Earnings $ 89.1 $ 77.3 $ 11.8 $ 1.55 $ 1.35 $ 0.20
 
Non-recurring items:
Merger/Acquisition-related expenses 4.4 12.8 (8.4 ) 0.08 0.22 (0.14 )
Transmission ROE reserves   2.3     3.2     (0.9 )   0.04     0.06     (0.02 )
Consolidated Earnings, excl. non-recurring items $ 95.8   $ 93.3   $ 2.5   $ 1.67   $ 1.63   $ 0.04  
 

"Earnings for the third quarter 2015, excluding non-recurring items, were relatively flat," commented James P. Torgerson, UIL's president and chief executive officer. "The increase in year-to-date earnings, excluding non-recurring items, is attributable to a combination of usage from new natural gas heating customers and colder winter weather. We have added almost 6,800 gas heating customers through September 2015 and remain on target to reach our 2015 goal of 12,000 conversions."

Proposed Merger with Iberdrola USA, Inc.

In September, UIL, Iberdrola USA, Inc. (and their related parties) and the CT Office of Consumer Counsel filed a settlement agreement with the CT Public Utilities Regulatory Authority (PURA) in its change in control proceeding. And in October, UIL, Iberdrola USA, Inc. (and their related parties), the Attorney General of MA and the MA Department of Energy Resources filed a settlement agreement with the MA Department of Public Utilities in its change in control proceeding.

"Hearings in CT are complete and the final decision from CT PURA is currently scheduled for December 9th," added Torgerson. "Our filing in MA requested MA DPU approval by December 18th. We continue to expect the transaction to close by year-end 2015, following shareowner approval and receipt of all regulatory approvals."

Electric Distribution

The electric distribution business earned $18.1 million, or $0.31 per diluted share, in the third quarter 2015, compared to $17.9 million, or $0.31 per diluted share, in the third quarter 2014. For the first nine months of 2015, the electric distribution business earned $39.9 million, or $0.70 per diluted share, compared to $43.1 million, or $0.75 per diluted share, for the same period in 2014. The decrease in earnings for the first nine months was primarily due to higher employee-related expenses, depreciation and amortization expenses as well as adjustments associated with the completion of the Internal Revenue Service's examination of income tax years 2009-2012.

Electric Transmission

The electric transmission business earned $8.4 million, or $0.15 per diluted share, in the third quarter 2015, compared to $5.5 million, or $0.10 per diluted share, in the third quarter 2014. For the first nine months of 2015, the electric transmission business earned $22.7 million, or $0.39 per diluted share, compared to $23.1 million, or $0.40 per diluted share, for the same period in 2014.

Electric transmission earnings, excluding the non-recurring transmission ROE reserves discussed above, for the third quarter and nine months ended September 30 were:

  Quarter ended September 30,
Net Income (Loss) - $M   Earnings (Loss) per Share - Diluted
2015   2014   '15 vs '14 2015   2014   '15 vs '14
Electric Transmission $ 8.4   $ 5.5   $ 2.9 $ 0.15   $ 0.10   $ 0.05
Transmission ROE reserves   0.1     3.2     (3.1 )   -     0.06     (0.06 )
Electric Transmission, excl. non-recurring item $ 8.5   $ 8.7   $ (0.2 ) $ 0.15   $ 0.16   $ (0.01 )
 
Year-to-Date September 30,
Net Income (Loss) - $M Earnings (Loss) per Share - Diluted
2015   2014   '15 vs '14 2015   2014
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