UIL Holdings Corporation Reports First Quarter 2003 Earnings.Business Editors/Energy Writers 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 28, 2003 UIL UIL - User Interface Language Holdings Corporation (UIL), (NYSE NYSE See: New York Stock Exchange :UIL) today reported earnings for the first quarter of 2003 of $5.3 million, or $0.37 per share, compared to net income of $9.6 million, or $0.68 per share for the first quarter of 2002. The earnings decline was expected due to various factors affecting the utility, 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), which are discussed below. The earnings decline at UI was partially offset by higher than expected retail sales, as a result of colder weather within its service territory and increased earnings at UIL's non-utility businesses under United Resources, Inc. (URI Uri, in the Bible Uri (y  `rī), in the Bible.1 Father of Bezaleel (1.) 2 Father of Geber (2.) 3 Porter. ), compared to the same period last year. "The cold weather aside, our first quarter results demonstrate management's commitment to performance even under difficult economic 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 ," commented Nathaniel D. Woodson Woodson may refer to: People
The United Illuminating Company Net income at UI totaled $8.5 million, or $0.60 per share in the first quarter of 2003, compared to earnings of $14.2 million, or $1.00 per share in 2002. Although UI experienced a 5.2% increase in retail kilowatt hour Kil´o`watt` hour 1. (Elec.) A unit of work or energy equal to that done by one kilowatt acting for one hour; - approximately equal to 1.34 horse-power hour. Noun 1. sales compared to the same period last year due principally to colder weather, earnings were lower in 2003 because of a number of factors, including the loss of earnings from the nuclear division due to the sale of the Seabrook Seabrook may refer to: Australian locations
UI sold its ownership and leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. interest in Seabrook on November November: see month. 1, 2002. There have been no earnings from UI's nuclear division subsequent to the sale, whereas, for the first quarter of 2002, the nuclear division contributed $0.24 per share to net income. The second factor affecting earnings was the impact of the Department of Public Utility Control's (DPUC DPUC Department of Public Utility Control (Connecticut) ) Rate Case decision that was rendered on September September: see month. 26, 2002. The decision reduced UI's allowed return on utility common stock equity to 10.45% from the previous allowed return on common stock equity return on common stock equity A measure of the return that a firm's management is able to earn on common stockholders' investment. Return on common stock equity is calculated by dividing the net income minus preferred dividends by the owners' equity minus of 11.5%. From the effective date of the decision until the end of 2002, the decision was implemented entirely through additional accelerated amortization of 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. costs. Effective January January: see month. 1, 2003, the decision was implemented by an overall 3% reduction of UI's retail rates and accelerated amortization. The third factor affecting earnings was increased pension and postretirement benefits expenses that were not considered in the Rate Case decision. The DPUC has reopened UI's Rate Case as a result of the changed conditions regarding pension and postretirement benefits expenses and is currently reviewing UI's estimate of these costs for 2003. These costs are being expensed by UI and are included in the first quarter 2003 results. It is expected that a decision on recovery of these costs will be made by the DPUC in the second quarter of 2003. United Resources, Inc. United Resources, Inc. is the parent company for UIL's non-utility businesses, including the operating business units, Xcelecom, Inc. and 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, Inc. (APS), and the minority ownership 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) ). For the first quarter of 2003, the non-utility business units of URI reported a net loss of $3.2 million, or $0.23 per share, compared to a net loss of $4.6 million, or $0.32 per share in 2002. In comparison to 2002, the reduction in losses was mostly due to the improved operating performance at Xcelecom. Xcelecom, Inc. Xcelecom, Inc., a specialty contracting and voice-data-video systems integration business, reported a net loss of $0.3 million for the first quarter in 2003, or $0.02 per share. This compares with a net loss of $2.2 million, or $0.15 per share during the same period in 2002. Although Xcelecom's earnings were negatively effected by the weak economy and lower sales in the Northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. construction units mostly due to colder weather this past winter, Xcelecom experienced increased sales due to the inclusion of the financial results of an acquisition made in the first quarter of 2002, continued growth in the mid-Atlantic Adj. 1. mid-Atlantic - of a region of the United States generally including Delaware; Maryland; Virginia; and usually New York; Pennsylvania; New Jersey; "mid-Atlantic states" middle Atlantic markets and an increase in sales at the systems integration units. Cash flow also remained strong for the quarter. "We have experienced improved operating results at Xcelecom despite the weak economic markets," reported Woodson. "At this time, we are focused on improving Xcelecom's operations and deemphasizing expansion of the business through strategic acquisitions." American Payment Systems, Inc. American Payments Systems, Inc., a walk-in walk-in A new brokerage customer who simply walks into the office. Although walk-ins are generally assigned to brokers, they have the right to specify a preferred broker. bill payment and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company, incurred a net loss of $0.3 million, or $0.02 per share for the first quarter of 2003, compared to 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 during the same period in 2002. Although revenue increased for the period, the increased loss of $0.02 per share was primarily due to the expenses associated with new products and services that are not yet profitable. URI Investments United Bridgeport Energy, Inc. United Bridgeport Energy, Inc. 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 lost $1.5 million, or $0.11 per share during the first quarter of 2003, compared to a net loss of $1.0 million, or $0.07 per share during the same quarter of 2002. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.01 per share of the 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 lower energy revenues, because high gas prices reduced margins, and $0.11 per share was due to lower 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. These were partially offset by reduced expenses of $0.08 per share, due to the absence of overhaul costs incurred in the first quarter of 2002. Effective March 1, 2003, Standard Market Design was implemented by ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . This had a minimal impact on energy prices during the month of March. In the longer term, the new market design is expected to benefit BE, which is located in the energy congested con·gest·ed adj. Affected with or characterized by congestion. congested ENT adjective Referring to a boggy blood-filled tissue. See Nasal congestion. southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
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). . United Capital Investments, Inc. During the first quarter of 2003, United Capital Investments, Inc. lost $0.1 million, or $0.01 per share, compared to a net loss of $0.4 million, or $0.03 per share, in the first quarter of 2002. The results were due to reduced valuations associated with the venture capital funds Venture Capital Funds An investment fund that manages money from investors seeking private equity stakes in small and medium-size enterprises with strong growth potential. Notes: offset by reduced administrative expenses. URI Headquarters URI Headquarters incurred 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. expenses of $1.0 million, or $0.07 per share in the first quarter of 2003, compared to expenses of $1.1 million, or $0.07 per share, in the first quarter of 2002. Some intercompany debt and strategic and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. for the subsidiaries of URI are retained by URI. The improvement at URI Headquarters reflects increased interest expense offset by lower administrative expenses. Looking Forward In recognition of the governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. and disclosure issues that have resulted from the Sarbanes-Oxley Act See SOX. of 2002 and related 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. developments, management has decided to announce forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information, earnings guidance and detailed information regarding the results of operations at the time of the filing of the UIL Quarterly Report on Form 10-Q Form 10-Q See 10-Q. with the Securities and Exchange Commission. Therefore, management is not at this time announcing any forward-looking information, earnings guidance or results of operations analysis. The Quarterly Report on Form 10-Q will be filed no later than May 14, 2003. Upcoming Events UIL will hold its Annual Meeting on Wednesday Wednesday: see week. , May 14, 2003 at 10:00 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 United Resources, 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. URI is the umbrella umbrella, a small canopy used as a protection against the sun in China, Egypt, and elsewhere in remote antiquity. It was often an emblem of rank. During the Middle Ages the umbrella became almost extinct in Europe; its usefulness was not rediscovered until the late for UIL Holdings' non-utility business units, including Xcelecom, Inc., American Payment Systems, Inc., United Capital Investments, Inc. and United Bridgeport Energy, Inc. 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 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 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 of 2003:
UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Thousands except per share amounts)
(Unaudited)
Three Months Ended
March 31,
2003 2002
---- ----
Operating Revenues
Utility $ 165,292 $ 172,024
Non-utility businesses 98,337 86,311
------------ ------------
Total Operating Revenues 263,629 258,335
------------ ------------
Operating Expenses
Operation
Fuel and energy 66,482 63,956
Operation and maintenance 139,857 134,950
Depreciation and amortization 27,624 19,508
Taxes - other than income taxes 11,200 11,948
------------ ------------
Total Operating Expenses 245,163 230,362
------------ ------------
Operating Income 18,466 27,973
------------ ------------
Other Deductions, net (245) (209)
------------ ------------
Income Before Interest Charges and Income
Taxes 18,221 27,764
------------ ------------
Interest Charges, net
Interest on long-term debt 6,534 10,828
Interest on Seabrook Lease Obligation
Bonds owned by UI - (1,542)
Other interest, net 304 429
------------ ------------
6,838 9,715
Amortization of debt expense and
redemption premiums 309 531
------------ ------------
Interest Charges, net 7,147 10,246
------------ ------------
Income Before Income Taxes 11,074 17,518
------------ ------------
Income Taxes 5,808 7,949
------------ ------------
Net Income and Income Applicable to Common
Stock $ 5,266 $ 9,569
============ ============
Average Number of Common Shares Outstanding
- Basic 14,279 14,165
Average Number of Common Shares Outstanding
- Diluted 14,279 14,256
Earnings Per Share of Common Stock -
Basic $ 0.37 $ 0.68
Earnings Per Share of Common Stock -
Diluted $ 0.37 $ 0.67
Cash Dividends Declared per share of Common
Stock $ 0.72 $ 0.72
UIL HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
March 31, 2003 and 2002
(Unaudited)
(thousands of dollars) 2003 2002
----------------------------------------------------------------------
ASSETS
Current assets $ 367,744 $ 322,360
Property, plant and equipment, net 521,639 551,420
Regulatory assets 702,598 760,398
Other long-term assets 214,077 208,450
------------ ------------
Total Assets $ 1,806,058 $ 1,842,628
------------ ------------
LIABILITIES AND CAPITALIZATION
Current liabilities $ 434,425 $ 374,068
Noncurrent liabilities 202,490 196,658
Deferred income taxes 232,485 220,796
Regulatory liabilities 63,647 47,555
------------ ------------
Total Liabilities 933,047 839,077
Net long-term debt 395,440 500,528
Net common stock equity 477,571 503,023
------------ ------------
Total Capitalization 873,011 1,003,551
------------ ------------
Total Liabilities and
Capitalization $ 1,806,058 $ 1,842,628
------------ ------------
UIL HOLDINGS CORPORATION
SEGMENTED CONSOLIDATED INCOME STATEMENT
Quarter Quarter 2003 more
Ended Ended (less)
Mar. 31, Mar. 31, than
(In Millions - Unaudited) 2003 2002 2002
------------------------- --------- --------- ---------
Operating Revenues
UI from operations, before sharing $165.3 $158.0 $7.3
Nuclear 0.0 14.0 (14.0)
Xcelecom 68.9 64.6 4.3
APS 29.4 21.7 7.7
Minority Ownership Interest
Investment and Other 0.0 0.0 0.0
--------- --------- ---------
Total operating revenues 263.6 258.3 5.3
========= ========= =========
Fuel and energy expenses
UI 66.5 62.0 4.5
Nuclear 0.0 2.0 (2.0)
--------- --------- ---------
Total fuel and energy expenses 66.5 64.0 2.5
========= ========= =========
Operation and maintenance expenses
UI 43.0 41.3 1.7
Nuclear 0.0 5.3 (5.3)
Xcelecom 67.7 66.6 1.1
APS 28.5 20.9 7.6
Minority Ownership Interest
Investment and Other 0.7 0.9 (0.2)
--------- --------- ---------
Total operation and
maintenance expenses 139.9 135.0 4.9
========= ========= =========
Depreciation and amortization
expenses
UI 7.0 7.2 (0.2)
Nuclear 0.0 0.4 (0.4)
Xcelecom 0.9 0.6 0.3
APS 0.9 0.6 0.3
Minority Ownership Interest
Investment and Other 0.0 0.0 0.0
--------- --------- ---------
Subtotal depreciation 8.8 8.8 (0.0)
Amortization of regulatory assets
(UI) 18.2 10.3 7.9
Amortization Xcelecom 0.3 0.3 0.0
Amortization APS 0.3 0.1 0.2
--------- --------- ---------
Total depreciation and
amortization expenses 27.6 19.5 8.1
========= ========= =========
Taxes - other than income taxes
UI - State gross earnings tax 6.4 6.4 0.0
UI - other 3.9 4.6 (0.7)
Nuclear - other 0.0 0.3 (0.3)
Xcelecom 0.6 0.4 0.2
APS 0.3 0.2 0.1
Minority Ownership Interest
Investment and Other 0.0 0.0 0.0
--------- --------- ---------
Total taxes - other than
income taxes 11.2 11.9 (0.7)
========= ========= =========
Other Income (Deductions)
UI 1.7 1.4 0.3
Nuclear 0.0 0.1 (0.1)
Xcelecom 0.2 0.2 0.0
APS 0.2 0.1 0.1
Minority Ownership Interest
Investment and Other (2.3) (2.0) (0.3)
--------- --------- ---------
Total Other Income
(Deductions) (0.2) (0.2) 0.0
========= ========= =========
Earnings Before Interest and Taxes
(EBIT)
UI 21.9 27.6 (5.7)
Nuclear 0.0 6.2 (6.2)
Xcelecom (0.3) (3.1) 2.8
APS (0.4) 0.0 (0.4)
Minority Ownership Interest
Investment and Other (3.0) (2.9) (0.1)
--------- --------- ---------
Total Earnings Before Interest
and Taxes (EBIT) 18.2 27.8 (9.6)
========= ========= =========
Interest Charges
UI 5.2 9.1 (3.9)
UI - Interest on Seabrook
obligation bonds owned by UI 0.0 (1.5) 1.5
UI - Amortization: debt expense,
redemption premiums 0.3 0.6 (0.3)
Nuclear 0.0 0.3 (0.3)
Xcelecom 0.1 0.5 (0.4)
APS 0.0 0.1 (0.1)
Minority Ownership Interest
Investment and Other 1.5 1.1 0.4
--------- --------- ---------
Total Interest Charges 7.1 10.2 (3.1)
========= ========= =========
Income Taxes
UI 8.0 8.7 (0.7)
Nuclear 0.0 2.3 (2.3)
Xcelecom (0.2) (1.4) 1.2
APS (0.1) (0.1) 0.0
Minority Ownership Interest
Investment and Other (1.9) (1.6) (0.3)
--------- --------- ---------
Total Income Taxes 5.8 7.9 (2.1)
========= ========= =========
Net Income
UI 8.5 10.7 (2.2)
Nuclear 0.0 3.5 (3.5)
Xcelecom (0.3) (2.2) 1.9
APS (0.3) 0.0 (0.3)
Minority Ownership Interest
Investment and Other (2.6) (2.4) (0.2)
--------- --------- ---------
Total Net Income $5.3 $9.6 ($4.3)
========= ========= =========
BUSINESS SEGMENT SUMMARY INFORMATION
(In Millions, except per share amounts)
UIL HOLDINGS CORPORATION
----------------------------------------------------------------------
Quarter Ended Quarter Ended
March 31, 2003 March 31, 2002
-------------- --------------
Earnings Before Interest and Taxes
(EBIT) $ 18.2 $ 27.8
Net Income $ 5.3 $ 9.6
Earnings per Share - basis $ 0.37 $ 0.68
----------------------------------------------------------------------
THE UNITED ILLUMINATING COMPANY
----------------------------------------------------------------------
Quarter Ended Quarter Ended
March 31, 2003 March 31, 2002
-------------- --------------
Earnings Before Interest and Taxes
(EBIT) $ 21.9 $ 33.8
Net Income $ 8.5 $ 14.2
Earnings per Share - basis $ 0.60 $ 1.00
----------------------------------------------------------------------
UNITED RESOURCES, INC.
----------------------------------------------------------------------
Quarter Ended Quarter Ended
March 31, 2003 March 31, 2002
-------------- --------------
XCELECOM
--------
Earnings Before Interest and Taxes
(EBIT) $ (0.3) $ (3.1)
Net Income $ (0.3) $ (2.2)
Earnings per Share - basis $ (0.02) $ (0.15)
AMERICAN PAYMENT SYSTEMS
------------------------
Earnings Before Interest and Taxes
(EBIT) $ (0.4) $ -
Net Income $ (0.3) $ -
Earnings per Share - basis $ (0.02) $ -
MINORITY OWNERSHIP INTEREST
INVESTMENTS & OTHER
---------------------------
Earnings Before Interest and Taxes
(EBIT) $ (3.0) $ (2.9)
Net Income $ (2.6) $ (2.4)
Earnings per Share - basis $ (0.19) $ (0.17)
TOTAL UNITED RESOURCES
----------------------
Earnings Before Interest and Taxes
(EBIT) $ (3.7) $ (6.0)
Net Income $ (3.2) $ (4.6)
Earnings per Share - basis $ (0.23) $ (0.32)
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