UIL Holdings Corporation Reports Third Quarter Earnings, Declares January 1, 2005 Dividend and Provides Looking Forward Information for 2004.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. -- 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 third quarter of 2004 of $16.3 million, or $1.13 per share, compared to $16.6 million, or $1.16 per share, for the third quarter of 2003. For the first nine months of 2004, UIL reported net income of $32.4 million, or $2.25 per share, from continuing operations, compared to $27 million, or $1.90 per share, in the first nine months of 2003. These results exclude the results of operations 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 was sold to CheckFree Corporation in June June: see month. of 2004 and are therefore 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. . Today UIL's Board of Directors also declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $0.72 per share on its common stock payable January January: see month. 1, 2005 to shareowners of record at the close of business on December December: see month. 9, 2004. "Although third quarter results were slightly lower than last year, overall performance was steady," commented Nathaniel D. Woodson Woodson may refer to: People
n. Abbr. kWh or kW-hr A unit of electric energy equal to the work done by one kilowatt acting for one hour. volume consumption over prior year. The 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. proceeding involving the recovery of increased pension and post-retirement benefits costs has ended and UI is now evaluating the need for, and timing of, a rate case to recover expected increases in costs for capital projects and 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. ." 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 $17.6 million, or $1.23 per share, in the third quarter of 2004, compared to net income of $17.8 million, or $1.25 per share, in the third quarter of 2003. UI's third quarter 2004 results were positively impacted by economic growth and unanticipated increased kilowatt-hour volume consumption, excluding the effects of weather as compared to the same period of 2003. UI also benefited from lower interest charges in the third quarter of 2004 as compared to the third quarter of 2003, due to the refinancing Refinancing An extension and/or increase in amount of existing debt. of certain debt issues late in 2003 at lower interest rates. The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of economic growth during the quarter 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 relatively cool summer in 2004 compared to 2003, largely offsetting the kilowatt-hour growth compared to the same period in 2003. On August 11, 2004 the Department of Public Utility Control (DPUC DPUC Department of Public Utility Control (Connecticut) ) issued a final decision regarding UI's increased pension and post-retirement benefits costs. This decision reversed the February February: see month. 18, 2004 final DPUC decision, which had provided for partial recovery of such costs. As a result of an October October: see month. 2004 court order issued by the State Superior Court in the appeal of the February 18th decision brought by the Office of Consumer Counsel, UI was required to cease recovery of the increased pension and post-retirement benefits costs effective June 24, 2004 and forward. On a quarterly basis, UI had been recovering approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.05 per share, 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. , 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 the February 18th DPUC decision, and for the period February 18, 2004 through June 24, 2004 UI had recovered $1.1 million after-tax, or $0.08 per share. For the first nine months of 2004, net income for UI was $39.5 million, or $2.75 per share, compared to net income of $34.4 million, or $2.41 per share, for the same period in 2003, an increase of $0.34 per share. UI benefited from lower interest charges for the first nine months of 2004 as compared to the first nine months of 2003, due to the refinancing of certain debt issues late in 2003 at lower interest rates. Also, the results for the first nine months of 2004 were improved as compared to the same period in 2003 due to economic growth and an unanticipated increase in kilowatt-hour volume consumption. As indicated for the quarter, the benefits of this growth were mitigated by milder weather in 2004 as compared to the same period in 2003. The results of the first nine months of 2004 also benefited from various non-recurring gains attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to (1) 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 estimate of unbilled revenue, $0.07 per share, (2) a settlement by ISO-NE related to a review of the allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of 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. Power Pool transmission revenues to member companies, $0.09 per share, and (3) the resolution of post-closing issues and DPUC decisions related to UI's sale of Seabrook Seabrook may refer to: Australian locations
bad invalid - having no cogency or legal force; "invalid reasoning"; "an invalid driver's license" customer accounts over the comparable period in 2003.
Real Retail kWh Sales excluding Weather,
Leap Year and Unbilled Adjustment
Q3 2004 Q3 2003 % Change
Millions of kWh 1,610 1,567 2.7%
YTD 2004 YTD 2003 % Change
Millions of kWh 4,454 4,336 2.7%
UI, as part of a mutual assistance arrangement, sent ten employees to Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and to help recover from two of the hurricanes that devastated dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. the area, the costs of which were reimbursed by the Florida utilities UI assisted. Non-Utility Businesses UIL serves as the parent company for several non-utility businesses, including the operating business Xcelecom, Inc. (Xcelecom), and two entities which indirectly support the operations of their respective passive and 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) ). UIL completed the sale of its other non-utility, operating business, APS, in June 2004. Results for APS are reported as discontinued operations. The non-utility businesses, including unallocated UIL Corporate costs, reported a loss from continuing operations of $1.3 million, or $0.10 per share, in the third quarter of 2004 compared to a loss from continuing operations of $1.2 million, or $0.09 per share in the same period of 2003. Results from discontinued operations for the third quarter of 2004 were minimal as the only activity resulted from the completion of post-closing review procedures related to the June 2004 sale of APS. Discontinued operations reported net income of $0.4 million, or $0.03 per share, in third quarter of 2003. For the first nine months of 2004, the non-utility businesses, including unallocated UIL Corporate costs, reported a loss from continuing operations of $7.1 million, or $0.50 per share, compared to a loss from continuing operations of $7.4 million, or $0.51 per share, in the same period of 2003. Results from discontinued operations for the first nine months of 2004, including the gain on the sale of APS, amounted to earnings of $49.8 million, or $3.47 per share, compared to a loss of $0.5 million, or $0.04 per share, in the first nine months of 2003. Xcelecom, Inc. Xcelecom, a subsidiary of UIL engaged in the specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. electrical contracting and voice-data-video systems integration business, reported net income of $0.6 million, or $0.04 per share, in the third quarter of 2004, compared to a net loss of $0.1 million, or $0.01 per share, in the third quarter of 2003. The improvement in earnings from the prior year was mainly due to an increase in sales among all regions of the electrical contracting business of $19 million. While the majority of Xcelecom's operating entities have been profitable, some operating entities are not meeting profit targets. Xcelecom has been able to manage administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. and continues to evaluate strategies to improve operating efficiencies. These increases were partially offset by lagging Lagging Strategy used by a firm to stall payments, normally in response to exchange rate projections. performance in the systems integration business. 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 as of September September: see month. 30, 2004 amounted to $215.5 million, an increase of $87.7 million, or 69%, from the same period of 2003. While the backlog has grown significantly, the composition of this backlog is weighted towards larger projects, which have historically produced lower margins than smaller projects. Xcelecom reported a loss of $0.1 million, or $0.01 per share, for the first nine months of 2004, compared to a loss of $1.5 million, or $0.10 per share, for the same period of 2003. The improvement in earnings from the prior year was mainly due to the absence of $0.08 per share on two large project losses incurred in the prior year, partially offset by income in the prior year related to the completion of a large contract. Activity in 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. , which had been affected by slow economic recovery earlier in the year, continues to improve, although there is still soft demand for the systems integration services business. Non-Utility Passive and 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 $0.3 million, or $0.02 per share, in the third quarter of 2004, compared to earnings of $0.6 million, or $0.04 per share, in the same quarter of 2003. For the first nine months of 2004, UBE had a loss of $2.5 million, or $0.17 per share, compared to a loss of $1.6 million, or $0.11 per share, in the first nine months of 2003. Lower energy prices due to weather and high natural gas prices continued to negatively impact results for both the third quarter and first nine months of 2004. These impacts were partially offset by lower plant operating expenses, as well as the elimination of interest expenses in 2004 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 2004. Although energy and natural gas prices continue to hamper the results of BE, the plant has not required any capital contributions from UBE through the first nine months of 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 third quarter of 2004, UCI broke even as compared to a net loss of $0.4 million, or $0.03 per share, in the third quarter of 2003. The improvement from the prior year was mainly due to income from Cross-Sound of $0.2 million, after-tax, or $0.01 per share, and lower valuation losses of other minority interest investments. UCI reported a net loss of $0.4 million, or $0.03 per share, for the first nine months of 2004, compared to a net loss of $0.6 million, or $0.05 per share in the same period of 2003. The improvement in earnings was mainly due to lower valuation losses from passive investments. Cross-Sound is working to satisfy the provisions of a settlement agreement among various parties including the Connecticut Department of Environmental Protection (CDEP CDEP Comprehensive District Education Plan CDEP Common Data Extraction Program ), Connecticut Light & Power (CL&P) and the Long Island Power Authority (LIPA), which allowed for commercial operation of the Cross-Sound cable. Specifically, in October of 2004, remediation work began in the New Haven navigation navigation, science and technology of finding the position and directing the course of vessels and aircraft. Early Navigational Techniques In ancient times, mariners navigated by the guidance of the sun and stars and landmarks along the coast. channel section of the Long Island Sound to bring the Cross-Sound cable into compliance with the permit conditions set forth by the CDEP. Remediation work is expected to be completed within the fourth quarter of 2004. In addition, at the end of September 2004, Cross-Sound funded its $2.0 million commitment to a research and restoration fund for the Long Island Sound. Regarding the provision of the settlement agreement which is not within Cross-Sound's control, CL&P and LIPA reached the necessary agreements in the third quarter of 2004 for the replacement of the existing 1385kV line, which connects Norwalk Norwalk (nôr`wôk'). 1 City (1990 pop. 94,279), Los Angeles co., S Calif.; settled in the 1850s, inc. 1957. With the arrival (1875) of the Southern Pacific RR, it became a center for the dairy and logging industries, but , CT to Northport Northport is the name of some places in the United States of America:
Cross-Sound has not required additional capital funding from its owners for the first nine months of 2004. 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, strategic and other administrative costs. UIL Corporate incurred unallocated after-tax costs of $1.6 million, or $0.12 per share in the third quarter of 2004, compared to unallocated after-tax costs of $1.3 million, or $0.09 per share in the same quarter of 2003. For the first nine months of 2004 UIL Corporate incurred unallocated after-tax costs of $4.1 million, or $0.29 per share, compared to unallocated after-tax costs of $3.7 million, or $0.25 per share, in the first nine months of 2003. The increased costs for both the quarter and the first nine months of 2004, were mainly due to increased administrative expenses such as stock option expense and costs associated with complying with Sarbanes Oxley Oxley refers to several things: People
Discontinued Operations On June 22, 2004, UIL completed the sale of APS to CheckFree Corporation (CheckFree), a leading provider of financial electronic commerce services and products, pursuant to the purchase agreement entered into between the parties on December 16, 2003. 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 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 results of discontinued operations for the first nine months of 2004, including the gain on the sale of APS, amounted to earnings of $49.8 million, or $3.47 per share. The cumulative after-tax gain on the sale during 2003 and 2004, net of all transaction costs incurred, was $46 million, or $3.21 per share. However, the after-tax effect of the sale, net of transaction costs, for the first nine months of 2004 was $3.22 per share, as certain transaction costs were incurred and expensed in the fourth quarter of 2003. Post-closing review procedures were completed during the third quarter of 2004 and the resulting adjustments net to an insignificant increase in the gain on the sale of APS. Discontinued operations reported net income of $0.4 million, or $0.03 per share, in third quarter of 2003 and a loss of $0.5 million, or $0.04 per share, in the first nine months of 2003. 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 Estimates for 2004 and Cash Flow Discussion UIL's estimate of earnings per share from continuing operations for 2004 remains at $2.40 - $2.60 per share. Though the estimate is unchanged from the previous estimate, the components of the estimate have changed. The new estimate reflects better than previously expected earnings at UIL's electric utility subsidiary, UI, but worse than expected non-utility earnings primarily at UBE. These amounts exclude the impact of discontinued operations, including the closing of the sale of APS in June 2004. Discontinued operations has contributed $3.47 per share to UIL's earnings in 2004 including $3.22 per share from the sale of APS, and $0.25 per share from the operations of APS before the sale. The United Illuminating Company UI's new estimate for 2004 earnings is $2.95 - $3.05 per share, compared to the previous earnings estimate of $2.75 - $2.85 per share. UI has experienced higher than expected kilowatt-hour sales in the first nine months of 2004 that are mostly due to non-weather variations, and some additional sales increase is now expected in the fourth quarter of 2004. Management will continue to monitor and assess the economic growth impact on kilowatt-hour sales that UI has experienced through the third quarter of 2004. In addition, the various non-recurring gains, noted in the report on nine months earnings to date for UI amounting to approximately $0.24 per share, have increased the earnings estimate. These positive factors are expected to be partially offset by increased expenses and the absence, of about seven and a half months, of recovery of pension and post-retirement benefits expenses that are higher than approved in UI's last rate case. The competitive transmission assessment (CTA An abbreviation for cum testamento annexo, Latin for "with the will annexed." ) is expected to earn approximately $0.94 per share in 2004, the Distribution Division is expected to earn $1.85-$1.95 per share, and the generation service charge (GSC GSC gas-solid chromatography. ) and conservation and load management (C&LM) components are expected to earn $0.16 per share. Depreciation expenses are increasing in 2004 compared to 2003 due to increases in plant-in-service balances, particularly UI's new customer information system. The CTA produces significant cash flow for UI and UIL Holdings. In 2004, CTA funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. are expected to produce approximately $26 million. This estimate significantly increased from the previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). estimate principally from improved results from energy sales under the current purchase power agreement. Xcelecom Xcelecom's earnings estimate remains at $0.05 - $0.15 per share in 2004. Although Xcelecom has lost $0.1 million, or $0.01 per share through the first nine months of 2004, Xcelecom was profitable in the third quarter, earning $0.6 million, or $0.04 per share. It is believed that Xcelecom's transition back to profitability, from the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. that effected Xcelecom's markets beginning in 2002, is at hand. There have been earnings improvements in all of Xcelecom's geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge areas. Xcelecom's backlog of work to be completed at the end of December 2003 was $147 million, and as of September 30, 2004 is $216 million. Backlog still has lower than historical margins due to the still recovering economic conditions in Xcelecom's markets and to the composition of this backlog which is weighted towards larger lower margin projects. Some of Xcelecom's subsidiaries have been, and are expected to be, profitable, while others are currently expected to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. losses for 2004. Xcelecom will continue to review underperforming operations and make business decisions to produce greater efficiencies. In addition, Xcelecom is continuing to work on reducing operating and overhead related costs. One of Xcelecom's construction subsidiaries has been affected by the recent four hurricanes in Florida. That unit expects full recovery from insurance for physical premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person damage and business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. . The unit is currently operating fully and effectively, out of temporary quarters. As a result of the hurricane hurricane, tropical cyclone in which winds attain speeds greater than 74 mi (119 km) per hr. Wind speeds reach over 190 mi (289 km) per hr in some hurricanes. damage, active projects have been delayed due to the necessity for commercial and residential repair work in the region. The long term impact of the hurricane damage on this market will not be known for some time. Xcelecom is expected to generate enough cash from operations in 2004 to fund its operations, pay for capital expenditures, and fund most of its prior acquisition contractual obligations, but is not expected to make a cash contribution to UIL in 2004. Certain other contractual obligations, related to acquisitions made by Xcelecom in previous years, are paid for by UIL. Xcelecom maintains a revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility that may be utilized, among other things, to meet 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. liquidity needs in the event cash generated by operating activities is insufficient in·suf·fi·cient adj. 1. Not sufficient. 2. Incapable of proper functioning. . Xcelecom may also increase liquidity through additional infusions from UIL if necessary. Minority Interest Investment & Other United Bridgeport Energy, Inc. Offsetting the expected improved earnings at UI is a decrease in expected earnings from operations at UBE. The revised 2004 estimate of losses for UBE is $0.25 - $0.30 per share, compared to the previous estimate of losses of $0.05 - $0.15 per share. Results for UBE are the most uncertain component of UIL's earnings estimates at this time. UBE continues to be hampered by low energy prices (sales) and high natural gas prices (costs) keeping both margins and sales levels low. These factors have negatively impacted results in the first nine months of 2004. The 2004 estimate also reflects low 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. UBE will continue to monitor the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its investment in Bridgeport Energy for recoverability and based on current projections, the investment is currently expected to be fully recoverable. UIL is actively reviewing with the majority owner and operator of the plant alternatives to improve results of BE. The company will continue to assess such recoverability based on its review of UBE operations. The results at UBE are highly dependent upon energy prices and natural gas prices in Connecticut, which are volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. . United Capital Investments, Inc. UCI results are expected to be between losses of $0.05 per share and 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 in 2004. Part of the expected decrease relates to the temporary cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of operations of the Cross-Sound cable from May 9, 2004 through June 28, 2004, and the fact that it is operating under an interim agreement with LIPA that provides somewhat lower income to Cross-Sound than the longer term agreement. There have also been some small but unexpected losses in some of UCI's other passive investments. UCI, including Cross-Sound, is expected to be cash neutral in 2004. UIL Corporate UIL Corporate reports unallocated corporate administrative costs and unallocated interest charges. UIL Corporate is expected to incur unallocated after-tax costs of $0.30 - $0.40 per share in 2004, an increase from the previously estimated after-tax costs of $0.25 - $0.35 per share, due to somewhat higher administrative costs such as stock option expense and costs associated with complying with Sarbanes Oxley requirements. UIL Corporate is entirely dependent on dividends from its subsidiaries, external borrowings and the proceeds from the sale of APS to provide the cash necessary to service debt, pay administrative costs, pay common dividends to UIL Holdings' shareholders and to meet other contractual obligations not funded by UIL Holdings' subsidiaries. UIL Holdings' current earnings range estimate for 2004 is less than its current dividend rate of $2.88 per common share. As of October 1, 2004, the four quarterly dividends of 2004, which amounted to approximately $42 million, have been paid from funds from operations. UIL Holdings Corporation (NYSE:UIL), headquartered in New Haven, Connecticut, is the holding company for a number of entities: The United Illuminating Company, a regulated utility providing electricity and energy related services to 320,000 customers 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 Bridgeport areas; Xcelecom Inc., a leading provider of specialty contracting and voice-data-video systems integration; United Capital Investments, Inc., which holds a number of passive, minority investments, including a 25% interest in the Cross-Sound Cable Company, LLC; and United Bridgeport Energy, Inc., which holds a 33% interest in a gas-fired gas-fired adj → de gas gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- merchant wholesale electric generating facility. For more information on UIL Holdings, visit us at http://www.uil.com. 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). These include statements regarding management's intentions, plans, beliefs, expectations or forecasts for the future. Such forward-looking statements are based on the Corporation's expectations and involve 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. in the statements. Such risks and uncertainties include, but are not limited to, general economic conditions, legislative and regulatory changes, changes in demand for electricity and other products and services, unanticipated weather conditions, 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 Corporation's subsidiaries. The foregoing and other factors are discussed and should be reviewed in the Corporation's most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other subsequent periodic filings with the Securities and Exchange Commission. 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 Corporation 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 third quarter and first nine months of 2004:
UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Thousands except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
-------- -------- -------- --------
Operating Revenues
Utility $231,421 $194,948 $588,857 $516,323
Non-utility businesses 91,999 74,755 244,725 218,240
-------- -------- -------- --------
Total Operating Revenues 323,420 269,703 833,582 734,563
-------- -------- -------- --------
Operating Expenses
Operation
Fuel and energy 119,748 77,394 289,014 206,242
Operation and maintenance 138,515 122,669 386,370 354,086
Depreciation and amortization 18,189 22,056 51,826 70,097
Taxes - other than income
taxes 11,467 11,308 32,153 32,137
-------- -------- -------- --------
Total Operating Expenses 287,919 233,427 759,363 662,562
-------- -------- -------- --------
Operating Income From
Continuing Operations 35,501 36,276 74,219 72,001
-------- -------- -------- --------
Other Income and (Deductions),
net 1,034 1,975 3,865 2,266
-------- -------- -------- --------
Interest Charges, net
Interest on long-term debt 5,064 6,611 15,126 19,755
Other interest, net (857) 950 633 1,528
-------- -------- -------- --------
4,207 7,561 15,759 21,283
Amortization of debt expense
and redemption premiums 377 316 1,090 941
-------- -------- -------- --------
Total Interest Charges,
net 4,584 7,877 16,849 22,224
-------- -------- -------- --------
Income From Continuing
Operations Before Income Taxes 31,951 30,374 61,235 52,043
Income Taxes 15,632 13,809 28,858 24,984
-------- -------- -------- --------
Income from Continuing
Operations 16,319 16,565 32,377 27,059
Discontinued Operations, net of
tax 16 388 49,824 (539)
-------- -------- -------- --------
Net Income $ 16,335 $ 16,953 $ 82,201 $ 26,520
======== ======== ======== ========
Average Number of Common Shares
Outstanding - Basic 14,394 14,295 14,363 14,287
Average Number of Common Shares
Outstanding - Diluted 14,431 14,303 14,390 14,295
Earnings Per Share of Common
Stock - Basic:
Continuing Operations $ 1.13 $ 1.16 $ 2.25 $ 1.90
Discontinued Operations $ 0.00 $ 0.03 $ 3.47 $ (0.04)
-------- -------- -------- --------
Net Earnings $ 1.13 $ 1.19 $ 5.72 $ 1.86
======== ======== ======== ========
Earnings Per Share of Common
Stock - Diluted:
Continuing Operations $ 1.13 $ 1.16 $ 2.25 $ 1.90
Discontinued Operations $ 0.00 $ 0.03 $ 3.46 $ (0.04)
-------- -------- -------- --------
Net Earnings $ 1.13 $ 1.19 $ 5.71 $ 1.86
======== ======== ======== ========
Cash Dividends Declared per
share of Common Stock $ 0.72 $ 0.72 $ 2.16 $ 2.16
======== ======== ======== ========
UIL HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30, December 31,
(thousands of dollars) 2004 2003
------------------------------------------------------- -------------
ASSETS
Current assets $ 262,558 $ 229,732
Current assets of discontinued operations
held for sale - 103,697
Property, plant and equipment, net 542,911 548,794
Regulatory assets 712,377 736,808
Other long-term assets 272,900 261,205
Long-term assets of discontinued
operations held for sale - 17,930
------------ ------------
Total Assets $ 1,790,746 $ 1,898,166
------------ ------------
LIABILITIES AND CAPITALIZATION
Current liabilities $ 180,902 $ 217,461
Current liabilities of discontinued
operations held for sale - 94,267
Noncurrent liabilities 152,852 171,455
Noncurrent liabilities of discontinued
operations held for sale - 921
Deferred income taxes 355,475 345,676
Regulatory liabilities 61,124 80,152
------------ ------------
Total Liabilities 750,353 909,932
Net long-term debt 491,174 495,460
Net common stock equity 549,219 492,774
------------ ------------
Total Capitalization 1,040,393 988,234
------------- -------------
Total Liabilities and Capitalization $ 1,790,746 $ 1,898,166
------------ ------------
UIL HOLDINGS CORPORATION
SEGMENTED CONSOLIDATED INCOME STATEMENT
Quarter Ended Year to Date
September 30, September 30,
(In Millions - Unaudited) 2004 2003 2004 2003
----------------------------------------------------------------------
Operating Revenue
UI from operations $231.5 $194.9 $588.9 $516.3
Xcelecom 92.0 74.8 244.7 218.2
Minority Interest Investment and
Other (0.1) 0.0 0.0 0.1
------ ------ ------ ------
Total $323.4 $269.7 $833.6 $734.6
====== ====== ====== ======
Fuel and energy expense - UI $119.7 $ 77.4 $289.0 $206.2
====== ====== ====== ======
Operation and maintenance expense
UI $ 48.1 $ 48.5 $142.7 $135.8
Xcelecom 89.3 73.3 240.0 215.6
Minority Interest Investment and
Other 1.2 0.8 3.7 2.7
------ ------ ====== ======
Total $138.6 $122.6 $386.4 $354.1
====== ====== ====== ======
Depreciation and amortization
UI $ 7.2 $ 7.3 $ 22.0 $ 21.1
Xcelecom 1.0 0.9 2.7 2.6
------ ------ ------ ------
Subtotal depreciation 8.2 8.2 24.7 23.7
Amortization of regulatory assets (UI) 9.7 13.6 26.2 45.5
Amortization Xcelecom 0.3 0.3 0.9 1.0
------ ------ ------ ------
Total depreciation and amortization $ 18.2 $ 22.1 $ 51.8 $ 70.2
====== ====== ====== ======
Taxes - other than income taxes
UI - State gross earnings tax $ 7.4 $ 7.8 $ 19.6 $ 20.3
UI - other 3.7 3.1 11.1 10.5
Xcelecom 0.4 0.4 1.5 1.3
------ ------ ------ ------
Total $ 11.5 $ 11.3 $ 32.2 $ 32.1
====== ====== ====== ======
Other Income (Deductions)
UI - other $ 1.0 $ 1.1 $ 7.1 $ 4.2
Xcelecom 0.1 0.1 0.6 0.4
Minority Interest Investment and Other 0.0 0.8 (3.8) (2.4)
------ ------ ------ ------
Total $ 1.1 $ 2.0 $ 3.9 $ 2.2
====== ====== ====== ======
Interest Charges
UI $ 2.3 $ 5.6 $ 10.2 $ 16.4
UI - Amortization: debt expense,
redemption premiums 0.4 0.3 1.1 0.6
Xcelecom 0.1 0.1 0.4 0.4
Minority Interest Investment and Other 1.8 1.9 5.1 4.8
------ ------ ------ ------
Total $ 4.6 $ 7.9 $ 16.8 $ 22.2
====== ====== ====== ======
Income Taxes
UI $ 16.4 $ 14.6 $ 34.6 $ 29.7
Xcelecom 0.4 0.0 (0.1) (0.8)
Minority Interest Investment and Other (1.1) (0.8) (5.6) (4.0)
------ ------ ------ ------
Total $ 15.7 $ 13.8 $ 28.9 $ 24.9
====== ====== ====== ======
Net Income
UI $ 17.6 $ 17.8 $ 39.5 $ 34.4
Xcelecom 0.6 (0.1) (0.1) (1.5)
Minority Interest Investment and Other (1.9) (1.1) (7.0) (5.9)
------ ------ ------ ------
Subtotal Net Income from Continuing
Operations 16.3 16.6 32.4 27.0
Discontinued Operations 0.0 0.4 49.8 (0.5)
------ ------ ------ ------
Total Net Income $ 16.3 $ 17.0 $ 82.2 $ 26.5
====== ====== ====== ======
BUSINESS SEGMENT SUMMARY INFORMATION
(In Millions, except per share amounts)
(Unaudited)
----------------------------------------------------------------------
UIL HOLDINGS CORPORATION
----------------------------------------------------------------------
Quarter Quarter Year to Year to
Ended Ended Date Date
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Income from Continuing
Operations, net of tax $ 16.3 $ 16.6 $ 32.4 $ 27.0
Net Income $ 16.3 $ 17.0 $ 82.2 $ 26.5
Earnings per Share - basic $ 1.13 $ 1.19 $ 5.72 $ 1.86
----------------------------------------------------------------------
----------------------------------------------------------------------
THE UNITED ILLUMINATING COMPANY
----------------------------------------------------------------------
Quarter Quarter Year to Year to
Ended Ended Date Date
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Net Income $ 17.6 $ 17.8 $ 39.5 $ 34.4
Earnings per Share - basic $ 1.23 $ 1.25 $ 2.75 $ 2.41
Retail Sales (millions of
KWH) 1,621 1,617 4,529* 4,390
*Includes 46 million KWH non-recurring adjustment associated with a
change in accounting estimate to unbilled revenue recognized in Q1
2004.
----------------------------------------------------------------------
----------------------------------------------------------------------
NON-UTILITY BUSINESSES
----------------------------------------------------------------------
Quarter Quarter Year to Year to
Ended Ended Date Date
XCELECOM Sep. 30, Sep. 30, Sep. 30, Sep. 30,
-------- 2004 2003 2004 2003
---------- ---------- ---------- ----------
Net Income $ 0.6 $ (0.1) $ (0.1) $ (1.5)
Earnings per Share - basic $ 0.04 $(0.01) $(0.01) $(0.10)
MINORITY INTEREST INVESTMENT
AND OTHER
--------------------------
Net Income $ (1.9) $ (1.1) $ (7.0) $ (5.9)
Earnings per Share - basic $(0.14) $(0.08) $(0.49) $(0.41)
DISCONTINUED OPERATIONS
-----------------------
Net Income $ - $ 0.4 $ 49.8 $ (0.5)
Earnings per Share - basic $ - $ 0.03 $ 3.47 $(0.04)
TOTAL NON-UTILITY BUSINESSES
----------------------------
Net Income $ (1.3) $ (0.8) $ 42.7 $ (7.9)
Earnings per Share - basic $(0.10) $(0.06) $ 2.97 $(0.55)
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