UIL Holdings Corporation Announces 2003 Earnings.Business Editors NEW HAVEN New Haven, city (1990 pop. 130,474), New Haven co., S Conn., a port of entry where the Quinnipiac and other small rivers enter Long Island Sound; inc. 1784. Firearms and ammunition, clocks and watches, tools, rubber and paper products, and textiles are among the many , Conn.--(BUSINESS WIRE)--Jan. 26, 2004 UIL UIL - User Interface Language Holdings Corporation (NYSE NYSE See: New York Stock Exchange : UIL) today reported earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for 2003 of $29.5 million, or $2.07 per share, compared to $45.7 million, or $3.22 per share in 2002. The above amounts exclude the results of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Payment Systems (APS), which has been categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat as "held for sale" as a result of UIL's announced sale of APS to CheckFree Corporation (CheckFree) and is reported separately as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . The net loss from discontinued operations amounted to $6.2 million or $0.44 per share in 2003, compared to a net loss of $1.8 million, or $0.13 per share in 2002. Total earnings per share for 2003, including discontinued operations, were $23.3 million, or $1.63 per share, compared to 2002 earnings of $43.9 million, or $3.09 per share. For the fourth quarter of 2003, UIL reported net income of $2.4 million, or $0.17 per share from continuing operations, compared to net income of $4.8 million, or $0.33 per share, in the fourth quarter of 2002. The net loss from discontinued operations for the fourth quarter of 2003 was $5.6 million, or $0.40 per share, compared to a net loss of $1.4 million, or $0.09 per share in the same period of 2002. The discontinued operations loss includes an after tax asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $4.9 million or $0.34 per share, which was recorded in the fourth quarter of 2003. This impairment charge was a result of UIL's reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. of the value of APS' telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. assets as a stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." operation after announcing the pending sale of APS, excluding the telephony assets. UIL reported a net loss of $3.2 million, or $0.23 per share for the fourth quarter of 2003, including discontinued operations, compared to net income of $3.4 million, or $0.24 per share for the same period of 2002. Several major factors contributed to the decline in earnings from continuing operations, for both the quarter and the year, including the absence of income from the nuclear division, due to the sale of the Seabrook Seabrook may refer to: Australian locations
"UIL had a challenging year with utility regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. issues and the impact of the economy on our non-utility businesses," said Nathaniel D. Woodson Woodson may refer to: People
The United Illuminating Company Net income for UI totaled $38.7 million, or $2.71 per share in 2003, compared to net income of $53.9 million, or $3.79 per share, for 2002. For the fourth quarter of 2003, net income for UI was $4.3 million, or $0.30 per share, compared to net income of $6.5 million, or $0.45 per share, for the same period in 2002. Both the quarter and annual earnings were affected by the sale of Seabrook, the implementation of the 2002 Rate Case decision from the DPUC and increased pension and related expenses, all of which are discussed below. On November 1, 2002, UI sold its ownership interest in Seabrook. As a result, there have been no operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before from UI's nuclear division subsequent to the sale. The nuclear division contributed $5.8 million to net income, or $0.41 per share in 2002 on an annual basis, but incurred a loss of $1.6 million, or $0.12 per share, in the fourth quarter of 2002. Since September September: see month. 2002, earnings at UI have been affected by the DPUC's 2002 Rate Case decision, which reduced the allowed return on utility common stock equity from 11.50% to 10.45%, reduced overall rates by 3%, and increased stranded strand 1 n. The land bordering a body of water; a beach. v. strand·ed, strand·ing, strands v.tr. 1. To drive or run ashore or aground. 2. cost amortization. UI is also experiencing increased pension and post-retirement benefits expenses that have not to date been included for recovery in rates. UI has reached a settlement agreement with the Prosecutorial pros·e·cu·to·ri·al adj. Of, relating to, or concerned with prosecution: "a huge investigative and prosecutorial effort" Lucian K. Truscott IV. Division of the DPUC for recovery of an additional $10.5 million of increased costs, a change in UI's earnings sharing mechanism that would increase customers' share of earnings in excess of 10.45% and an agreement not to file a distribution rate case prior to January January: see month. 1, 2005. The proposed settlement agreement is subject to approval by the DPUC. A final DPUC decision regarding the settlement is expected during the first quarter of 2004. Relief granted, if any, will be applied prospectively. The additional pension and post-retirement benefits costs were incurred and expensed by UI during 2003, although the effect on earnings was mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by the positive impact of weather on revenues and by short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. actions taken by the Company. On December December: see month. 31, 2003, a $45.0 million contribution was made to the UI Pension Plan. As a result of this funding, the market value of the Pension Plan assets exceeded the accumulated benefit obligation Accumulated Benefit Obligation (ABO) An approximate measure of the liability of a pension plan in the event of a termination at the date the calculation is performed. Related: Projected benefit obligation. , and UI was able to reverse the Other Comprehensive Loss related to the Pension Plan of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $25.0 million (after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) that was recognized in 2002. Non-Utility Businesses UIL serves as the parent company for several non-utility businesses, including the following operating business units: Xcelecom, Inc. (Xcelecom), and American Payment Systems, Inc. (APS), and two minority interest investments, United Bridgeport Bridgeport, city (1990 pop. 141,686), Fairfield co., SW Conn., on Long Island Sound; inc. 1836. Long a chief industrial city in Connecticut, it makes electrical appliances, transportation equipment, clothing, ammunition, metal products, wiring devices, machinery, Energy, Inc. (UBE Ube (  `bā), city (1990 pop. 175,053), Yamaguchi prefecture, SW Honshu, Japan, on the Inland Sea. It has a modern harbor and an important chemical industry. ) and
United Capital Investments, Inc. (UCI UCI University of California, IrvineUCI Union Cycliste Internationale (International Cycling Union) UCI Unidad de Cuidados Intensivos UCI United Cinemas International (UK) ). APS results are reported under the discontinued operations section. The non-utility businesses reported a loss from continuing operations, including unallocated UIL Holdings costs of $9.2 million, or $0.64 per share, compared to a loss from continuing operations of $8.2 million, or $0.57 per share in 2002. Results from discontinued operations for 2003 amounted to a loss of $6.2 million, or $0.44 per share, compared to a loss of $1.8 million, or $0.13 per share in 2002. For the fourth quarter of 2003, the non-utility businesses reported a loss from continuing operations, including unallocated costs at UIL Holdings, of $1.9 million, or $0.13 per share, compared to a loss from continuing operations of $1.7 million, or $0.12 per share, for the same period in 2002. Xcelecom, Inc. Xcelecom, a specialty electrical contracting and voice-data-video systems integration business, reported a net loss of $1.7 million, or $0.12 per share in 2003, compared to net income of $1.4 million, or $0.10 per share in 2002. In the fourth quarter of 2003, Xcelecom reported a net loss of $0.2 million, or $0.02 per share, compared to net income of $1.0 million or $0.07 per share for the same period in 2002. Slow economic recovery in the east coast region, contract postponements and cancellations, decreasing project margins, increased competition for fewer jobs, and executive severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs have affected performance at Xcelecom in 2003. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite these factors and the fact that the Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. region's economy continues to be weak, Xcelecom's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of work to be completed is up 37 percent compared to the end of last year. Non-Utility Minority Interest Investments United Bridgeport Energy, Inc. UBE holds a 33 1/3% ownership interest in Bridgeport Energy, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (BE). UBE had a loss of $2.2 million, or $0.15 per share during 2003, compared to a loss of $1.0 million, or $0.07 per share in 2002. The increased loss was due to lower energy and installed capability (ICAP (1) (Internet Content Adaptation Protocol) A high-level protocol for requesting services from an Internet-based server. iCAP provides a common format for requesting services using standard HTTP messaging. ) revenues, and the absence of a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. insurance benefit received by BE in 2002. These were partially offset by reduced expenses mostly due to overhaul costs incurred in 2002. Lower energy prices and high gas prices continue to affect the plant, both in reduction of energy margins and decreased plant generation. UBE lost $0.6 million, or $0.04 per share, in the fourth quarter of 2003, compared to a net loss of $0.7 million, or $0.05 per share, during the same period in 2002. United Capital Investments, Inc. UCI lost $0.6 million, or $0.05 per share, compared to a net loss of $4.4 million, or $0.31 per share, in 2002. The positive variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality was due to an impairment loss recorded in the second quarter of 2002, a lower valuation loss in minority interest investments and reduced administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . UCI reported breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations results in the fourth quarter of 2003, compared to a loss of $1.1 million, or $0.08 per share for the same period in 2002. The positive variance was due to the lower valuation loss in minority interest investments and income from Cross Sound Cable The Cross Sound Cable is a 40 kilometer (about 25 miles) long bipolar High-voltage direct current (HVDC) submarine power cable between New Haven, Connecticut, USA and Shoreham, Long Island New York , USA. Company, LLC (CSC (Card Security Code) A three- or four-digit number printed on the back of credit cards for security purposes. Called "Card Verification Value" (CVV) by Visa, "Card Validation Code" (CVC) by MasterCard and "Card Identification (CID) by American Express and Discover, ). UCI has a 25% ownership interest in CSC, which operates a 330 megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt transmission cable connecting Connecticut Connecticut, state, United StatesConnecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). and Long Island under the Long Island Sound. The cable was energized under an emergency order from the Department of Energy in August 2003 and continues to be used as needed as needed prn. See prn order. . UCI has recorded $0.1 million in income for the project in 2003 under the provisions of an interim operating contract that covers CSC's compensation for the operation of the cable under the Emergency Order. Although the terms of the interim contract have been agreed to in principle between CSC and the Long Island Power Authority (LIPA), formal approval by LIPA's board of trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. , and the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State Comptroller's office is still required. In addition, the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. approval is required for the interim operating contract. Resolution of permit issues for commercial operation of the cable is still pending. UIL Holdings (unallocated costs) UIL Holdings incurred a net loss of $4.7 million, or $0.32 per share in 2003, compared to a net loss of $4.2 million, or $0.29 per share in 2002. For the fourth quarter of 2003, UIL Holdings reported a loss of $1.1 million, or $0.07 per share, compared to a loss of $0.9 million, or $0.06 per share for the same period in 2002. The higher loss was due to increased administrative costs in both the fourth quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. 2003. Discontinued Operations On December 16, 2003, UIL Holdings entered into an agreement to sell APS to CheckFree, a leading provider of financial electronic commerce services and products. Under the terms of the agreement, and pending receipt of regulatory approvals and satisfaction of customary closing conditions, CheckFree will pay approximately $110 million in cash for the outstanding stock of APS. The transaction is expected to close during the second quarter of 2004, with the resulting gain, net of transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , to be recognized at that time. CheckFree will not acquire APS' telephony assets, which include APS' 51% ownership interest in CellCards of Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , LLC (CCI CCI Chambre de Commerce et d'Industrie (France) CCI CAM (Complementary and Alternative Medicine) Citation Index CCI Chamber of Commerce and Industry (Western Australia) ). Following execution of the agreement to sell APS, management determined that the telephony business is not part of UIL Holding's overall strategic business focus, and therefore authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the sale of APS' telephony assets. Accordingly, APS, inclusive of inclusive of prep. Taking into consideration or account; including. the telephony business, has been categorized as "held for sale" as of December 31, 2003 for financial accounting purposes, and as such, its results are included in discontinued operations for all periods presented. Net loss from discontinued operations amounted to $6.2 million, or $0.44 per share in 2003, compared to a net loss of $1.8 million, or $0.13 per share in 2002. Net loss from discontinued operations for the fourth quarter of 2003 was $5.6 million, or $0.40 per share, compared to a net loss of $1.4 million, or $0.09 per share, in the same period of 2002. Excluding one-time charges, fourth quarter 2003 operating earnings for APS were $0.3 million, or $0.02 per share, compared to a loss of $1.3 million, or $0.09 per share in the same period of 2002. The fourth quarter and annual results of 2003 were effected by an after-tax impairment charge of $4.9 million, or $0.34 per share. This impairment charge was a result of UIL's reassessment of the value of APS' telephony assets as a stand-alone operation after announcing the pending sale of the remainder of APS. In addition to the impairment charge, transaction costs associated with the sale of APS affected 2003 earnings by $0.2 million, $0.01 per share. The results of 2003 were also affected by other non-recurring charges totaling $1.0 million, or $0.07 per share. These charges are comprised of a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of equipment values, a liability associated with vacated leased property, and a loss on the sale of an investment. Looking Forward UIL Holdings' Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Earnings from Operations Estimates for 2004 UIL estimates that earnings per share from continuing operations for 2004 will be $2.20-$2.40 per share, compared to 2003 results of $2.07 per share. These amounts exclude the impact of discontinued operations, based on the planned sale of APS by the end of June June: see month. 2004. The primary reasons for the expected increase in earnings from operations is an expected improvement at UIL's non-utility subsidiary, Xcelecom and reduced interest charges resulting from the anticipated reduction of UIL short term debt when APS is sold, partially offset by an expected decrease in utility earnings. Component Earnings from Operations UI is expected to earn $2.50-$2.65 per share in 2004, as compared to $2.71 per share earned in 2003. The 2004 estimate does not assume any regulatory relief regarding UI's request to the DPUC for recovery of increased pension and post-retirement benefits expenses not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. in UI's 2002 Rate Case decision. If regulatory relief consistent with the proposed settlement agreement discussed previously is granted, UI may be able to reach its allowed return on the equity portion of its Distribution Division rate base, and earnings would be higher than currently expected. Xcelecom is expected to earn $0.05-$0.15 per share in 2004, compared to a loss of $0.12 per share in 2003, reflecting anticipated improvement in some of Xcelecom's markets in 2004. Activity levels in Xcelecom operations in the southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: See Middle Atlantic States. Noun 1. Mid-Atlantic states - a region of the eastern United States comprising New York and New Jersey and Pennsylvania and Delaware and Maryland U.S.A. are improving. Xcelecom continues to observe depressed levels of activity in the northeast, and increased competition for less work. The earnings estimate for UBE for 2004 is a loss of $0.05-$0.15 per share, compared to a loss of $0.15 per share in 2003. The improvement is due entirely to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of UIL's intercompany loan Intercompany loan Loan made by one unit of a corporation to another unit of the same corporation. to UBE to 100% equity. Results at UBE continue to be hampered by high natural gas prices keeping both margins and sales levels low. The 2004 estimate also reflects low installed capability (ICAP) revenues, and the absence of any major overhaul expenses. UCI is expected to breakeven in 2004, compared to a loss of $0.05 per share in 2003. Part of the improvement is the expectation of a minor amount of income from the CSC investment that will offset administrative costs. CSC continues to operate under federal emergency orders and is producing some income for UIL based on a proposed interim operating agreement An operating agreement is an agreement among limited liability company ("LLC") members governing the LLC's business, and Member's financial and management rights and duties. No state requires an LLC to have an Operating agreement. . No income from UCI's other passive investments are expected at this time. UIL Holdings will report unallocated corporate administrative costs and unallocated interest charges. UIL Holdings is expected to lose $0.25-$0.35 per share in 2004, compared to a loss of $0.32 per share in 2003. Administrative costs are expected to be similar in 2004 as in 2003. Interest charges are expected to decrease significantly in the second half of 2004 once APS is sold and UIL reduces short term debt. Earnings from Discontinued Operations UIL expects to sell APS in the second quarter of 2004 subject to the receipt of regulatory approvals. Discontinued operations, including the gain on the sale, are expected to contribute $3.00-$3.10 per share in 2004. UIL Holdings Corporation is the holding company for The United Illuminating Company and several non-utility businesses, including, Xcelecom, Inc., American Payment Systems, Inc., United Capital Investments, Inc. and United Bridgeport Energy, Inc. UI is a New Haven-based regional distribution utility that provides electricity and energy-related services to more than 320,000 customers in municipalities in the Greater New Haven Greater New Haven is the metropolitan area whose extent includes those towns in the U.S. state of Connecticut that share an economic, social, political, and historical focus on the city of New Haven. It occupies the south-central portion of the state in a radius around New Haven. and Greater Bridgeport Greater Bridgeport is the metropolitan area centered on the city of Bridgeport in the U.S. state of Connecticut. The area is located in Southwestern Connecticut and consists of the city of Bridgeport and five other adjacent towns – Easton, Fairfield, Monroe, Stratford, and areas. UIL Holdings World Wide Web address is http://www.uil.com/ and the company is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol UIL. Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995). Such forward-looking statements include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. thereby, including, but not limited to, general economic conditions, legislative and regulatory changes, demand for electricity and other products and services, changes in accounting principles, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , and other economic, competitive, governmental, and technological factors affecting the operations, markets, products, services and prices of the company's subsidiaries. Forward-looking statements included herein speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and the company undertakes no obligation to revise or update such statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events or circumstances. The following are summaries of UIL Holdings' unaudited consolidated and segmented financial information for the fourth quarter and full year 2003:
UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Thousands except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
--------- --------- --------- ----------
Operating Revenues
Utility $153,297 $167,382 $669,620 $727,533
Non-utility businesses 75,817 74,549 294,057 310,063
--------- --------- --------- ----------
Total Operating
Revenues 229,114 241,931 963,677 1,037,596
--------- --------- --------- ----------
Operating Expenses
Operation
Fuel and energy 66,431 65,056 272,673 269,195
Operation and maintenance 124,634 124,786 478,720 505,162
Depreciation and
amortization 12,142 24,839 82,239 92,567
Taxes - other than income
taxes 8,951 10,044 41,088 45,970
--------- --------- --------- ----------
Total Operating
Expenses 212,158 224,725 874,720 912,894
--------- --------- --------- ----------
Operating Income 16,956 17,206 88,957 124,702
--------- --------- --------- ----------
Other Income and (Deductions),
net 1,024 (597) 3,290 (2,327)
--------- --------- --------- ----------
Income Before Interest Charges
and Income Taxes 17,980 16,609 92,247 122,375
--------- --------- --------- ----------
Interest Charges, net
Interest on long-term debt 5,835 8,096 25,590 40,582
Interest on Seabrook
obligation bonds owned by UI - (497) - (5,122)
Other interest, net 941 103 2,403 1,717
--------- --------- --------- ----------
6,776 7,702 27,993 37,177
Amortization of debt expense
and redemption premiums 326 422 1,267 1,969
--------- --------- --------- ----------
Interest Charges, net 7,102 8,124 29,260 39,146
--------- --------- --------- ----------
Income From Continuing
Operations Before Income
Taxes 10,878 8,485 62,987 83,229
--------- --------- --------- ----------
Income Taxes 8,466 3,703 33,450 37,478
--------- --------- --------- ----------
Income from Continuing
Operations 2,412 4,782 29,537 45,751
--------- --------- --------- ----------
Discontinued Operations, net
of tax (5,646) (1,351) (6,251) (1,804)
--------- --------- --------- ----------
--------- --------- --------- ----------
Net Income and Income
Applicable to Common Stock $(3,234) $3,431 $23,286 $43,947
========= ========= ========= ==========
Average Number of Common
Shares Outstanding - Basic 14,306 14,272 14,291 14,239
Average Number of Common
Shares Outstanding - Diluted 14,333 14,272 14,304 14,282
Earnings Per Share of Common
Stock - Basic:
Continuing Operations $0.17 $0.33 $2.07 $3.22
Discontinued Operations $(0.40) $(0.09) $(0.44) $(0.13)
--------- --------- --------- ----------
Net Earnings $(0.23) $0.24 $1.63 $3.09
========= ========= ========= ==========
Earnings Per Share of Common
Stock - Diluted:
Continuing Operations $0.17 $0.34 $2.07 $3.21
Discontinued Operations $(0.40) $(0.09) $(0.44) $(0.13)
--------- --------- --------- ----------
Net Earnings $(0.23) $0.24 $1.63 $3.08
========= ========= ========= ==========
Cash Dividends Declared per
share of Common Stock $0.72 $0.72 $2.88 $2.88
UIL HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
December 31, December 31,
(thousands of dollars) 2003 2002
---------------------------------------------------------------------
ASSETS
Current assets $212,006 $214,247
Current assets of discontinued operations 102,331 97,912
Property, plant and equipment, net 534,723 508,133
Regulatory assets 736,808 719,314
Other long-term assets 261,205 216,112
Long-term assets of discontinued operations 17,930 25,093
----------- -----------
Total Assets $1,865,003 $1,780,811
----------- -----------
LIABILITIES AND CAPITALIZATION
Current liabilities $212,172 $301,440
Current liabilities of discontinued
operations $92,901 $95,336
Noncurrent liabilities 171,455 216,497
Noncurrent liabilities of discontinued
operations 921 60
Deferred income taxes 333,239 225,928
Regulatory liabilities 66,081 63,766
----------- -----------
Total Liabilities 876,769 903,027
Net long-term debt 495,460 395,432
Net common stock equity 492,774 482,352
----------- -----------
Total Capitalization 988,234 877,784
----------- -----------
Total Liabilities and
Capitalization $1,865,003 $1,780,811
----------- -----------
UIL HOLDINGS CORPORATION
SEGMENTED CONSOLIDATED INCOME STATEMENT
Quarter Ended Year Ended
December 31, December 31,
(In Millions - Unaudited) 2003 2002 2003 2002
------------------------- ------ ------ ------ --------
Operating Revenue
UI from operations, before sharing $153.3 $162.3 $669.6 $691.3
UI sharing from operations 0.0 0.0 0.0 (6.6)
Nuclear 0.0 5.0 0.0 42.8
Xcelecom 75.8 74.5 294.0 310.0
Minority Interest Investment and Other 0.0 0.0 0.1 0.1
------ ------ ------ --------
Total $229.1 $241.8 $963.7 $1,037.6
====== ======= ====== =========
Fuel and energy expense
UI $66.5 $64.2 $272.7 $263.1
Nuclear 0.0 0.9 0.0 6.1
------ ------ ------ --------
Total $66.5 $65.1 $272.7 $269.2
====== ======= ====== ========
Operation and maintenance expense
UI $49.7 $45.6 $185.5 $176.7
Nuclear 0.0 7.0 0.0 23.8
Xcelecom 74.4 71.4 290.0 301.1
Minority Interest Investment and Other 0.5 0.7 3.2 3.6
------ ------ ------ --------
Total $124.6 $124.7 $478.7 $505.2
====== ====== ====== ========
Depreciation and amortization
UI $7.2 $5.7 $28.3 $27.4
Nuclear 0.0 0.1 0.0 1.2
Xcelecom 0.9 0.9 3.5 3.2
Minority Interest Investment and Other 0.1 0.1 0.1 0.0
------ ------ ------ --------
Subtotal depreciation 8.2 6.8 31.9 31.8
Amortization of regulatory assets (UI) 3.7 17.7 49.2 59.5
Amortization Xcelecom 0.2 0.3 1.2 1.3
------ ------ ------ --------
Total depreciation and amortization $12.1 $24.8 $82.3 $92.6
====== ====== ====== ========
Taxes - other than income taxes
UI - State gross earnings tax $5.5 $6.8 $25.8 $28.3
UI - other 3.0 3.4 13.5 15.8
Nuclear 0.0 (0.5) 0.0 0.4
Xcelecom 0.4 0.3 1.8 1.5
Minority Interest Investment and Other 0.0 0.0 0.0 0.0
------ ------ ------ --------
Total $8.9 $10.0 $41.1 $46.0
====== ====== ====== ========
Other Income and Deductions
UI $1.4 $1.6 $5.6 $3.7
Nuclear 0.0 0.0 0.0 0.0
Xcelecom 0.0 0.2 0.5 0.7
Minority Interest Investment and
Other (0.4) (2.3) (2.8) (6.7)
------ ------ ------ --------
Total $1.0 ($0.5) $3.3 ($2.3)
====== ======= ======= ========
Earnings Before Interest and Taxes
(EBIT)
UI $19.1 $20.5 $100.2 $117.6
Nuclear 0.0 (2.5) 0.0 11.3
Xcelecom (0.1) 1.8 (2.0) 3.6
Minority Interest Investment and
Other (1.0) (3.1) (6.0) (10.2)
------- ------ ------ -------
Subtotal Net Income from Continuing
Operations $18.0 $16.7 92.2 122.3
Discontinued Operations ($9.3) ($2.2) (10.1) (2.9)
------- ------ ------ -------
Total $8.7 $14.5 $82.1 $119.4
======= ====== ====== =======
Interest Charges
UI $4.3 $6.6 $20.7 $33.8
UI - Interest on Seabrook obligation
bonds owned by UI 0.0 (0.5) 0.0 (5.1)
UI - Amortization: debt expense,
redemption premiums 0.7 0.4 1.3 1.9
Nuclear 0.0 0.2 0.0 1.5
Xcelecom 0.2 0.2 0.6 1.3
Minority Interest Investment and
Other 1.9 1.3 6.6 5.7
------- ------ ------ -------
Total $7.1 $8.2 $29.2 $39.1
======= ====== ====== =======
Income Taxes
UI $9.8 $5.9 $39.5 $38.9
Nuclear 0.0 (1.1) 0.0 4.0
Xcelecom (0.1) 0.6 (0.9) 0.9
Minority Interest Investment and
Other (1.2) (1.7) (5.1) (6.3)
------- ------ ------ -------
Total $8.5 $3.7 $33.5 $37.5
======= ===== ====== =======
Net Income
UI $4.3 $8.1 $38.7 $48.1
Nuclear 0.0 (1.6) 0.0 5.8
Xcelecom (0.2) 1.0 (1.7) 1.4
Minority Interest Investment and
Other (1.7) (2.7) (7.5) (9.6)
------- ------ ------ -------
Subtotal Net Income from Continuing
Operations $2.4 $4.8 29.5 45.7
Discontinued Operations ($5.6) ($1.4) (6.2) (1.8)
------- ------ ------ -------
Total ($3.2) $3.4 $23.3 $43.9
======= ====== ====== =======
BUSINESS SEGMENT SUMMARY INFORMATION
(In Millions, except per share amounts)
----------------------------------------------------------------------
UIL HOLDINGS CORPORATION
----------------------------------------------------------------------
Quarter Quarter Year Year
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
-------- --------- --------- ---------
Earnings Before Interest
and Taxes (EBIT) $8.7 $14.5 $82.1 $119.4
Income from Continuing Operations,
net of tax $2.4 $4.8 $29.5 $45.7
Net Income $(3.2) $3.4 $23.3 $43.9
Earnings per Share - basic $(0.23) $0.24 $1.63 $3.09
----------------------------------------------------------------------
THE UNITED ILLUMINATING COMPANY
----------------------------------------------------------------------
Quarter Quarter Year Year
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
-------- --------- --------- ---------
Earnings Before Interest and
Taxes (EBIT) $19.1 $18.0 $100.2 $128.9
Net Income $4.3 $6.5 $38.7 $53.9
Earnings per Share - basic $0.30 $0.45 $2.71 $3.79
----------------------------------------------------------------------
NON-UTILITY BUSINESSES
----------------------------------------------------------------------
Quarter Quarter Year Year
Ended Ended Ended Ended
XCELECOM Dec. 31, Dec. 31, Dec. 31, Dec. 31,
-------- 2003 2002 2003 2002
-------- --------- --------- ---------
Earnings Before Interest and
Taxes (EBIT) $(0.1) $1.8 $(2.0) $3.6
Net Income $(0.2) $1.0 $(1.7) $1.4
Earnings per Share - basic $(0.02) $0.07 $(0.12) $0.10
MINORITY INTEREST INVESTMENT
AND OTHER
---------
Earnings Before Interest and
Taxes (EBIT) $(1.0) $(3.1) $(6.0) $(10.2)
Net Income $(1.7) $(2.7) $(7.5) $(9.6)
Earnings per Share - basic $(0.11) $(0.19) $(0.52) $(0.67)
DISCONTINUED OPERATIONS
-----------------------
Earnings Before Interest and
Taxes (EBIT) $(9.3) $(2.2) $(10.1) $(2.9)
Net Income $(5.6) $(1.4) $(6.2) $(1.8)
Earnings per Share - basic $(0.40) $(0.09) $(0.44) $(0.13)
TOTAL NON-UTILITY BUSINESSES
----------------------------
Earnings Before Interest and
Taxes (EBIT) $(10.4) $(3.5) $(18.1) $(9.5)
Net Income $(7.5) $(3.1) $(15.4) $(10.0)
Earnings per Share - basic $(0.53) $(0.21) $(1.08) $(0.70)
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