UIL Holdings Corporation Announces First Quarter 2004 Earnings.Energy Editors/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)--April 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 the first quarter of 2004 of $5.7 million, or $0.40 per share, compared to $5.6 million, or $0.39 per share for the first quarter of 2003. 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). Those results are 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. . Net income from discontinued operations amounted to $1.4 million, or $0.10 per share in the first quarter of 2004, compared to a net loss of $0.3 million, or $0.02 per share in 2003. Total earnings for the first quarter of 2004, including discontinued operations, were $7.1 million, or $0.50 per share, compared to earnings of $5.3 million, or $0.37 per share for the same period of 2003. "We are pleased with the first quarter results," commented Nathaniel D. Woodson Woodson may refer to: People
The United Illuminating The United Illuminating Holdings Corporation (UI) is an electricity distributor for southern Connecticut. It currently serves roughly 320,000 customers in 17 municipalities in the Greater Bridgeport, New Haven, and Lower Naugatuck Valley regions. Company (UI) Net income for UI, the regulated 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. electric utility subsidiary of UIL, totaled $9.6 million, or $0.67 per share, in first quarter of 2004, compared to net income of $8.5 million, or $0.60 per share, in the first quarter of 2003. Several factors contributed to the improvement from the same period in 2003, including non-recurring gains of $0.10 per share of which $0.03 per share is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the impact of the final decisions issued by the Department of Public Utility Control (DPUC DPUC Department of Public Utility Control (Connecticut) ) regarding the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of proceeds from UI's investment in its nuclear generating facilities and $0.07 per share is attributable to a change in the accounting estimate for unbilled un·billed adj. 1. Not having been billed or charged for: unbilled medical charges. 2. Appearing, as in a movie, without being credited: an unbilled walk-on. revenues resulting from the implementation of a new integrated software package Software that combines several applications in one program, typically providing at least word processing, spreadsheet and database management. Presentation graphics, page layout, paint, calendar, address book, e-mail and other applications may also be included. which provides a more precise method of calculating unbilled revenue. In addition, the improvement was due in part to the DPUC's decision allowing partial recovery of increased pension and post-retirement benefits expenses. These favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. variances were partially offset by higher operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and increases in uncollectible accounts Uncollectible account An account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay. over the comparable period in 2003. Non-Utility Businesses UIL serves as the parent company for several non-utility businesses, including the operating businesses Xcelecom, Inc. (Xcelecom), and American Payment Systems, Inc. (APS), and two entities which indirectly support the operations of their respective passive 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, including unallocated UIL Corporate costs, reported a loss from continuing operations of $3.9 million, or $0.27 per share, in the first quarter of 2004 compared to a loss from continuing operations of $2.9 million, or $0.21 per share in the same period of 2003. Results from discontinued operations for the first quarter of 2004 amounted to earnings of $1.4 million, or $0.10 per share, compared to a loss of $0.3 million, or $0.02 per share in the first quarter of 2003. Xcelecom, Inc. Xcelecom, a subsidiary of UIL engaged in the specialty electrical contracting and voice-data-video systems integration business, reported a net loss of $0.6 million, or $0.04 per share in the first quarter of 2004, compared to a net loss of $0.3 million, or $0.02 per share in the first quarter of 2003. The decrease in earnings from prior year was not unexpected, as effects of improved sales 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: Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. region. The results from the first quarter of 2003 also included income related to the completion of a large contract. Although the Northeast region's economic recovery has been slower than expected, there are signs of improving conditions. 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 has increased $51 million, or 43% percent compared to the same period of last year. Non-Utility Minority Interest Investments United Bridgeport Energy, Inc. UBE, a subsidiary of UIL that 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), had a loss of $1.6 million, or $0.11 per share in the first quarter of 2004, compared to a loss of $1.5 million, or $0.11 per share in the same quarter of 2003. Lower energy prices and high gas prices continue to negatively impact results. These impacts were offset by lower plant operating expenses in the first quarter of 2004, as well as lower interest expenses as a result of 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 Holdings' intercompany loan Intercompany loan Loan made by one unit of a corporation to another unit of the same corporation. to UBE to 100% equity in January January: see month. 2004. United Capital Investments, Inc. UCI is a subsidiary of UIL which holds a number of passive and minority investments, including a 25% interest in Cross-Sound Cable, LLC (Cross-Sound), an entity that owns and operates a transmission line connecting Connecticut Connecticut, state, United States Connecticut (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). to Long Island under the Long Island Sound. During the first quarter of 2004, UCI lost $0.1 million, or $0.01 per share, compared to a net loss of $0.1 million, or $0.01 per share, in the first quarter of 2003. The increased valuation loss in minority interest investments was offset by income from Cross-Sound. Cross-Sound continues to operate under an Emergency Order from the federal Department of Energy. For the first quarter of 2004, UCI recorded $0.1 million in income for the project under the provisions of an interim operating contract that covers Cross-Sound's compensation for the operation of the cable under the Emergency Order. Resolution of permit issues for commercial operation of the cable is still pending. UIL Corporate UIL Holdings retains certain costs at the holding company, or "corporate," level which are not allocated to the various non-utility subsidiaries. These costs generally include interest charges, and strategic and other administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . UIL Corporate incurred a net loss of $1.6 million, or $0.11 per share in the first quarter of 2004, compared to a net loss of $1.0 million, or $0.07 per share in the same quarter of 2003. The higher loss was due to increased administrative costs. Discontinued Operations On December December: see month. 16, 2003, UIL Holdings entered into an agreement to sell APS (excluding 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) for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $110 million in cash to CheckFree Corporation, a leading provider of financial electronic commerce services and products. APS, and its 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) ) were classified as discontinued operations in the fourth quarter of 2003. On February February: see month. 13, 2004, CCI was sold to an independent third party for book value, excluding 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). . The APS transaction is expected to close during the second quarter of 2004, subject to the receipt of certain 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. approvals. Net income from discontinued operations for the first quarter of 2004 was $1.4 million, or $0.10 per share, compared to a net loss of $0.3 million, or $0.02 per share, in the same period of 2003. The improvement is mainly due to APS' increased Stored Value Card and Non-Contracted Bill Payment business and the implementation of cost reduction initiatives in the first quarter of 2004. Also, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting rules, the assets of APS, including the telephony assets ceased being depreciated Depreciated may refer to:
Looking Forward UIL Reaffirms 2004 Earnings Guidance UIL reaffirms its 2004 earnings guidance of $2.40-$2.60 per share from continuing operations. The following chart shows a breakdown by subsidiary;
2004 Earnings Expectations
United Illuminating $2.75-$2.85
Xcelecom $0.05-$0.15
UBE $(0.15)-$(0.05)
UCI Breakeven
UIL Corporate $(0.35)-$(0.25)
Operating Earnings
Estimate for 2004(*) $2.40-$2.60
(*) Expectations are not intended to be additive.
UIL also reaffirms its earnings projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. of $3.00-$3.10 per share from discontinued operations, which includes the expected gain The expected gain (or expected return) is the weighted-average most likely outcome in gambling, probability theory, economics or finance. Discrete scenarios In gambling and probability theory, there is usually a discrete set of possible outcomes. on the sale of APS. Upcoming Events UIL will hold its Annual Meeting on Wednesday Wednesday: see week. , May 12, 2004 at 10 a.m. at Quinnipiac University Quinnipiac University is a private four-year university in Hamden, Connecticut, located on about 500 acres (2 km²), just north of New Haven. The campus is situated at the foot of Sleeping Giant State Park. in Hamden, Connecticut Hamden is a town in New Haven County, Connecticut, United States. The town's nickname is "The Land of the Sleeping Giant". History Hamden was originally settled by Puritans as part of the town of New Haven. . 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 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: and segmented financial information for the first quarter 2004:
UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Thousands except per share amounts)
(Unaudited)
Three Months Ended
March 31,
2004 2003
---- ----
Operating Revenues
Utility $ 181,843 $ 165,292
Non-utility businesses 67,584 68,947
---------- ----------
Total Operating Revenues 249,427 234,239
---------- ----------
Operating Expenses
Operation
Fuel and energy 87,938 66,482
Operation and maintenance 116,728 111,404
Depreciation and amortization 17,490 26,435
Taxes - other than income taxes 10,745 10,888
---------- ----------
Total Operating Expenses 232,901 215,209
---------- ----------
Operating Income From Continuing Operations 16,526 19,030
---------- ----------
Other Income and (Deductions), net 1,400 (435)
---------- ----------
Interest Charges, net
Interest on long-term debt 5,110 6,534
Other interest, net 722 267
---------- ----------
5,832 6,801
Amortization of debt expense and redemption
premiums 336 309
---------- ----------
Total Interest Charges, net 6,168 7,110
---------- ----------
Income From Continuing Operations Before Income
Taxes 11,758 11,485
---------- ----------
Income Taxes 6,066 5,967
---------- ----------
Net Income from Continuing Operations 5,692 5,518
---------- ----------
Discontinued Operations, net of tax 1,443 (252)
---------- ----------
Net Income and Income Applicable to Common ---------- ----------
Stock $ 7,135 $ 5,266
========== ==========
Average Number of Common Shares Outstanding -
Basic 14,335 14,279
Average Number of Common Shares Outstanding -
Diluted 14,426 14,279
Earnings Per Share of Common Stock - Basic:
Continuing Operations $ 0.40 $ 0.39
Discontinued Operations $ 0.10 $ (0.02)
---------- ----------
Net Earnings $ 0.50 $ 0.37
========== ==========
Earnings Per Share of Common Stock - Diluted:
Continuing Operations $ 0.39 $ 0.39
Discontinued Operations $ 0.10 $ (0.02)
---------- ----------
Net Earnings $ 0.49 $ 0.37
========== ==========
Cash Dividends Declared per share of Common
Stock $ 0.72 $ 0.72
UIL HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
March 31, December 31,
(thousands of dollars) 2004 2003
----------------------------------------------------------------------
ASSETS
Current assets $ 222,335 $ 212,006
Current assets of discontinued operations
held for sale 98,277 102,331
Property, plant and equipment, net 547,240 548,794
Deferred income taxes 27,912 26,267
Regulatory assets 732,770 736,808
Other long-term assets 260,693 261,205
Long-term assets of discontinued operations
held for sale 13,868 17,930
---------- ----------
Total Assets $1,903,095 $1,905,341
---------- ----------
LIABILITIES AND CAPITALIZATION
Current liabilities $ 222,299 $ 212,172
Current liabilities of discontinued
operations held for sale 90,859 92,901
Noncurrent liabilities 170,255 171,455
Noncurrent liabilities of discontinued
operations held for sale 612 921
Deferred income taxes 362,887 359,506
Regulatory liabilities 76,868 80,152
---------- ----------
Total Liabilities 923,780 917,107
Net long-term debt 491,174 495,460
Net common stock equity 488,141 492,774
---------- ----------
Total Capitalization 979,315 988,234
----------- -----------
Total Liabilities and Capitalization $1,903,095 $1,905,341
---------- ----------
UIL HOLDINGS CORPORATION
SEGMENTED CONSOLIDATED INCOME STATEMENT
Quarter Ended
March 31,
(In Millions - Unaudited) 2004 2003
------------------------ ---- ----
Operating Revenue
UI from operations $ 181.8 $ 165.3
Xcelecom 67.6 68.9
---------- ----------
Total $ 249.4 $ 234.2
========== ==========
Fuel and energy expense - UI $ 87.9 $ 66.5
========== ==========
Operation and maintenance expense
UI $ 48.4 $ 43.0
Xcelecom 66.9 67.7
Minority Interest Investment and Other 1.4 0.7
---------- ----------
Total $ 116.7 $ 111.4
========== ==========
Depreciation and amortization
UI $ 7.5 $ 7.0
Xcelecom 0.9 0.9
---------- ----------
Subtotal depreciation 8.4 7.9
Amortization of regulatory assets (UI) 8.8 18.2
Amortization Xcelecom 0.3 0.3
---------- ----------
Total depreciation and amortization $ 17.5 $ 26.4
========== ==========
Taxes - other than income taxes
UI - State gross earnings tax $ 6.0 $ 6.4
UI - other 4.0 3.9
Xcelecom 0.7 0.6
---------- ----------
Total $ 10.7 $ 10.9
========== ==========
Other Income (Deductions)
UI - other $ 3.7 $ 1.7
Xcelecom 0.3 0.2
Minority Interest Investment and Other (2.6) (2.3)
---------- ----------
Total $ 1.4 ($ 0.4)
========== ==========
Earnings Before Interest and Taxes (EBIT)
UI $ 22.9 $ 22.0
Xcelecom (0.9) (0.4)
Minority Interest Investment and Other (4.0) (3.0)
---------- ----------
Total EBIT from Continuing Operations 18.0 18.6
Discontinued Operations 2.3 (0.4)
---------- ----------
Total EBIT $ 20.3 $ 18.2
========== ==========
Interest Charges
UI $ 4.1 $ 5.2
UI - Amortization: debt expense, redemption
premiums 0.3 0.3
Xcelecom 0.1 0.1
Minority Interest Investment and Other 1.7 1.5
---------- ----------
Total $ 6.2 $ 7.1
========== ==========
Income Taxes
UI $ 8.9 $ 8.0
Xcelecom (0.4) (0.2)
Minority Interest Investment and Other (2.4) (1.9)
---------- ----------
Total $ 6.1 $ 5.9
========== ==========
Net Income
UI $ 9.6 $ 8.5
Xcelecom (0.6) (0.3)
Minority Interest Investment and Other (3.3) (2.6)
---------- ----------
Subtotal Net Income from Continuing
Operations 5.7 5.6
Discontinued Operations 1.4 (0.3)
---------- ----------
Total Net Income $ 7.1 $ 5.3
========== ==========
BUSINESS SEGMENT SUMMARY INFORMATION
(In Millions, except per share amounts)
----------------------------------------------------------------------
UIL HOLDINGS CORPORATION
----------------------------------------------------------------------
Quarter Quarter
Ended Ended
Mar. 31, Mar. 31,
2004 2003
---------- -----------
Earnings Before Interest and Taxes (EBIT) $ 20.3 $ 18.2
Income from Continuing Operations, net of tax $ 5.7 $ 5.6
Net Income $ 7.1 $ 5.3
Earnings per Share - basic $ 0.50 $ 0.37
----------------------------------------------------------------------
----------------------------------------------------------------------
THE UNITED ILLUMINATING COMPANY
----------------------------------------------------------------------
Quarter Quarter
Ended Ended
Mar. 31, Mar. 31,
2004 2003
---------- ----------
Earnings Before Interest and Taxes (EBIT) $ 22.9 $ 22.0
Net Income $ 9.6 $ 8.5
Earnings per Share - basic $ 0.67 $ 0.60
----------------------------------------------------------------------
----------------------------------------------------------------------
NON-UTILITY BUSINESSES
----------------------------------------------------------------------
Quarter Quarter
Ended Ended
Mar. 31, Mar. 31,
XCELECOM 2004 2003
-------- ---------- ----------
Earnings Before Interest and Taxes (EBIT) $ (0.9) $ (0.4)
Net Income $ (0.6) $ (0.3)
Earnings per Share - basic $ (0.04) $ (0.02)
MINORITY INTEREST INVESTMENT
AND OTHER
---------
Earnings Before Interest and Taxes (EBIT) $ (4.0) $ (3.0)
Net Income $ (3.3) $ (2.6)
Earnings per Share - basic $ (0.23) $ (0.19)
DISCONTINUED OPERATIONS
-----------------------
Earnings Before Interest and Taxes (EBIT) $ 2.3 $ (0.4)
Net Income $ 1.4 $ (0.3)
Earnings per Share - basic $ 0.10 $ (0.02)
TOTAL NON-UTILITY BUSINESSES
----------------------------
Earnings Before Interest and Taxes (EBIT) $ (2.6) $ (3.8)
Net Income $ (2.5) $ (3.2)
Earnings per Share - basic $ (0.17) $ (0.23)
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion