UIL Holdings Corporation Reports Third Quarter Earnings and Revises 2005 Earnings Guidance.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 2005 of $18.6 million, or $1.28 per share, compared to $16.3 million, or $1.13 per share, for the third quarter of 2004. For the first nine months of 2005, UIL reported net income of $25.2 million, or $1.73 per share, from continuing operations, compared to $32.4 million, or $2.25 per share, in the first nine months of 2004. "The hot summer had a positive impact on our third quarter 2005 results, as UIL's utility subsidiary, 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, benefited from the warmer than usual weather," commented Nathaniel D. Woodson Woodson may refer to: People
The United Illuminating 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 $20.1 million, or $1.38 per share, in the third quarter of 2005, compared to net income of $17.6 million, or $1.23 per share, in the third quarter of 2004. Weather had a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact on kilowatt-hour kil·o·watt-hour 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 in the third quarter of 2005, as weather-related consumption was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 80 million kilowatt-hours higher, resulting in an increase of $0.15 per share when compared to the third quarter of 2004. For the first nine months of 2005, net income for UI was $37.0 million, or $2.54 per share, compared to net income of $39.5 million, or $2.75 per share, for the same period in 2004, a decrease of $0.21 per share. The decrease in earnings for the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. period is mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to $0.31 per share of non-recurring items recognized during the first nine months of 2004, as shown below, which were partially offset by favorable weather and other items incurred during the first nine months of 2005.
$0.03 - attributable to the impact of the final decisions issued
by the Connecticut Department of Public Utility Control
(DPUC) regarding the disposition of proceeds from UI's sale
of its investment in its nuclear generating facilities,
recorded in Q1 2004;
$0.07 - adjustment related to a change in the accounting estimate
for unbilled revenues resulting from the implementation of
a new integrated software package which provides a more
precise method of calculating unbilled revenue, recorded in
Q1 2004;
$0.08 - settlement by ISO-NE related to a review of the allocation
of New England Power Pool transmission revenues to member
companies, recorded in Q2 2004;
$0.05 - due to the resolution of tax and other post-closing issues
related to UI's sale of its interest in Seabrook Station,
recorded in Q2 2004;
$0.08 - related to the DPUC's decision allowing partial recovery
of increased pension and post-retirement benefits expenses
for a portion of 2004, of which $0.05 per share was
recorded in Q2 2004.
On July July: see month. 18, 2005, UI filed an application with the DPUC DPUC Department of Public Utility Control (Connecticut) requesting an increase in its electric distribution rate for the first time in more than 10 years. The application also requests an increase in UI's Competitive Transition Assessment rate (CTA An abbreviation for cum testamento annexo, Latin for "with the will annexed." ). Hearings are underway and are scheduled to be completed in early November November: see month. . Based on the current schedule, a draft decision will be issued in late December December: see month. , with a final decision to follow in early January January: see month. 2006. UI has proposed that rates be set separately for each of the years 2006, 2007, 2008 and 2009. UI also filed a revised local network service transmission tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic with the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ) during the third quarter of 2005. UI is seeking to recover its transmission revenue requirements on a prospective basis, subject to reconciliation with actual revenue requirements. Under UI's current transmission tariff, the annual period during which wholesale transmission rates are effective begins after the annual period used to calculate the required transmission rates. The proposed changes to the tariff are expected to reduce the lag between the time transmission-related costs are incurred and the period in which costs begin to be recovered in rates. UI is also seeking to include 50% of new construction work in progress (CWIP CWIP Construction Work in Progress CWIP Current Work in Progress ) in transmission rate base to improve cash flow during design and construction of transmission facilities. Emphasis, in the filing, has been placed on the Middletown/Norwalk 345 kV transmission upgrade project which accounts for about 80% of UI's expected transmission construction costs over the next five years. Non-Utility Businesses UIL serves as the parent company for the operating business Xcelecom, Inc. (Xcelecom), and two entities which hold minority ownership interests in their respective 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) ). The non-utility businesses, including unallocated UIL Corporate expenses, reported a loss from continuing operations of $1.5 million, or $0.10 per share, in the third quarter of 2005 compared to a loss from continuing operations of $1.3 million, or $0.10 per share, in the same period of 2004. For the first nine months of 2005, the non-utility businesses, including unallocated UIL Corporate expenses, reported a loss from continuing operations of $11.8 million, or $0.81 per share, compared to a loss from continuing operations of $7.1 million, or $0.50 per share, in the same period of 2004. The earnings for the first nine months of 2005 were negatively affected by project losses incurred at Xcelecom and costs incurred at UBE relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a planned outage out·age n. 1. A quantity or portion of something lacking after delivery or storage. 2. A temporary suspension of operation, especially of electric power. for plant maintenance when compared to the same period in 2004. Xcelecom, Inc. Xcelecom, 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 $0.1 million, or $0.01 per share, in the third quarter of 2005, compared to net income of $0.6 million, or $0.04 per share, in the third quarter of 2004. The decline from the third quarter of 2004 was primarily due to net 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. project losses of $0.5 million, or $0.03 per share, recognized in the third quarter of 2005. Xcelecom reported a loss of $3.8 million, or $0.26 per share, for the first nine months of 2005, compared to a loss of $0.1 million, or $0.01 per share, for the same period of 2004. The decrease in earnings from the prior year was primarily due to after-tax project write-downs of $5.0 million, or $0.36 per share recognized in the first nine months of 2005. The write-downs were incurred on projects at Allan/Briteway Electrical Contractors, Inc., a New Jersey based subsidiary of Xcelecom, and resulted mainly from operational problems associated with merging the Allan Allan can refer to:
cost - the total spent for goods or services including money and time and labor were the principal source of the project write-downs. "As we noted last quarter, we have implemented actions aimed at addressing the causes of cost overruns on legacy projects, and are expected to improve operating results on new projects going forward," reported John Conroy Sir John Conroy, 1st Baronet (21 October 1786 – 2 March 1854) was an Irish soldier and adventurer who served as Comptroller of the Household of Victoria of Saxe-Coburg-Saalfeld, the Duchess of Kent, the mother of the future Queen Victoria of the United Kingdom and widow of , president of Xcelecom. United Bridgeport Energy, Inc. UBE holds a 33 1/3% ownership interest in Bridgeport Energy, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (BE), which operates a gas-fired gas-fired adj → de gas gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- merchant wholesale electric generating facility. UBE had a loss of $0.5 million, or $0.04 per share, in the third quarter of 2005, compared to a loss of $0.3 million, or $0.02 per share, in the same quarter of 2004. Revenues in the third quarter of 2005 were $0.07 per share better than third quarter of 2004. These higher revenues were more than offset by outage costs of $0.03 per share, additional energy management services costs of $0.02 per share and costs associated with proceedings regarding UBE's contractual rights A contractual right is a claim, on other persons, that is acknowledged and perhaps reciprocated among the principals associated with that claim. Specialized contractual rights exist as part of a "contract" or agreement between persons to whom these rights belong. to sell its 33 1/3% interest in BE to the majority owner at fair market value of $0.03 per share. In addition, a favorable non-recurring property tax adjustment of $0.01 per share was recognized in the third quarter of 2004. For the first nine months of 2005, UBE had a loss of $4.4 million, or $0.31 per share, compared to a loss of $2.5 million, or $0.17 per share, in the first nine months of 2004. Although plant revenues for the first nine months of 2005 were approximately $0.20 per share better than the same period of 2004, the improvement was more than offset by costs of the planned outage for plant maintenance of $0.23 per share, additional energy management service costs of $0.03 per share and costs associated with proceedings to sell UBE's interest in BE of $0.08 per share. UBE and the majority owner of BE are now engaged in an appraisal process to determine the fair market value of BE. United Capital Investments, Inc. UCI holds a number of minority ownership interest 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 2005, UCI had a net loss of $0.1 million, or $0.01 per share, 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 in the third quarter of 2004. UCI reported a net loss of $0.1 million, or $0.01 per share, for the first nine months of 2005, compared to a net loss of $0.4 million, or $0.03 per share, in the same period of 2004. The prior year results from Cross-Sound were affected by decreased revenues and increased legal fees resulting from a May 7, 2004 order by the U.S. Department of Energy terminating the Emergency Order under which the Cross-Sound cable had been operating. On June June: see month. 24, 2004, Cross-Sound reached a settlement agreement with various regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities and other parties with an interest in the cable that allowed for immediate commercial operation of the cable. UIL Corporate UIL retains certain costs at the holding company, or "corporate," level which are not allocated to the various 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 unallocated after-tax costs of $1.0 million, or $0.06 per share, in the third quarter of 2005, compared to unallocated after-tax costs of $1.6 million, or $0.12 per share, in the same quarter of 2004. For the first nine months of 2005 UIL Corporate incurred unallocated after-tax costs of $3.5 million, or $0.23 per share, compared to unallocated after-tax costs of $4.1 million, or $0.29 per share, in the first nine months of 2004. The after-tax costs for the first nine months of 2005 were lower due to decreased administrative costs. Unallocated costs at UIL Corporate were partially offset by after-tax interest income earned on a loan to Cross-Sound totaling $0.6 million, or $0.04 per share, and $0.4 million, or $0.03 per share, for the first nine months of 2005 and 2004, respectively. Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. 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 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). . Net income from discontinued operations amounted to $49.8 million, or $3.47 per share, in the first nine months of 2004. Post-closing review procedures were completed during the third quarter of 2004 and the resulting adjustments netted to an insignificant increase in the gain on the sale of APS. In the first quarter of 2005, CheckFree elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to treat its purchase of APS as an asset purchase for tax purposes rather than as a stock purchase. The resulting adjustment from this tax election, along with additional costs associated with the preparation of the final APS tax returns, was recognized in the third quarter of 2005 and amounted to a net loss from discontinued operations of $0.1 million, or $0.01 per share, for both the third quarter and first nine months of 2005. 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 2005 and Cash Flow Discussion UIL's revised earnings estimate from continuing operations for 2005 is $1.85 - $2.05 per share, compared to the previously reported estimate of $1.90 - $2.10 per share. The following chart shows a breakdown breakdown /break·down/ (brak´doun) 1. the act or process of ceasing to function. 2. an often sudden collapse in health. 3. loss of self-control. by business unit: 2005 Earnings Expectations ---------------------------------------------------------------------- UI $2.90 - $3.00 Xcelecom (0.25) - (0.15) UBE (0.55) - (0.45) UCI (0.05) - 0.00 UIL Corporate (0.40) - (0.30) Consolidated (1) $1.85 - $2.05 ---------------------------------------------------------------------- (1) Business unit expectations are not intended to be additive to consolidated expectations. Details of the changes in the 2005 earnings estimate are explained below. The United Illuminating Company UI's new earnings range estimate for 2005 is $2.90 - $3.00 per share, compared to the previous estimate of $2.80 - $2.90 per share. The Distribution and Transmission Divisions are expected to earn $1.83 - $1.93 per share in 2005, reflecting an increase of $0.10 per share from the previous estimate of $1.73 - $1.83, due primarily to weather-related sales for the third quarter above the previous estimates. The CTA is expected to earn $0.87 per share in 2005, reflecting a decrease of $0.01 per share from the previous estimate, and other sources are expected to earn $0.20 per share in 2005 reflecting an increase of $0.01 per share for those components. UI had approximately $4 million of cash and temporary cash investments on hand at the end of September September: see month. 2005. UI is expected to continue to generate strong cash flows from operations in 2005. 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 be in excess of $85 million compared to previously reported $90 million, with roughly $30 million being generated by the CTA, unchanged from the previous estimate. For the year, UI is expected to dividend to UIL an amount that is approximately equal to its net income. Funds from operations will also be used to finance UI's capital expenditure program. In the event that funds from operations are not sufficient to finance the entire capital expenditure program, existing cash on hand will be utilized. Xcelecom UIL now estimates that Xcelecom's losses will range between $0.25 - $0.15 per share, compared to the previous estimate of losses of $0.20 per share to breakeven. This change is the result of continuing operating performance issues at Xcelecom's New Jersey based Allan Briteway subsidiary. In aggregate, the other units of Xcelecom have performed, and are expected to continue to perform, as anticipated in the previous earnings estimates. For the remainder of 2005, Xcelecom is expected to generate enough cash from operations to fund its operations and to pay for required capital expenditures, but is not expected to make a cash contribution to UIL in 2005. 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 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. United Bridgeport Energy, Inc. The principal factors which continue to affect the financial condition of UBE are natural gas prices, Connecticut energy prices, maintenance costs and a viable capacity market. The majority owner of BE filed with FERC, an application for Reliability Must Run (RMR RMR Resting Metabolic Rate RMR Registered Merit Reporter RMR Reliability Must-Run (electric generation plant's status to maintain grid voltage/reliability) RMR Recurring Monthly Revenue (finance) ) status. On July 21, 2005, FERC conditionally con·di·tion·al adj. 1. Imposing, depending on, or containing a condition. See Synonyms at dependent. 2. Grammar Stating, containing, or implying a condition. 3. accepted the proposed RMR Agreement, made it effective June 1, 2005, subject to refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies , and established hearing and settlement judge procedures. Until these hearings are completed it is not possible to estimate the impact of RMR on UBE's expected results for 2005. On May 12, 2005, an arbitrator arbitrator n. one who conducts an arbitration, and serves as a judge who conducts a "mini-trial," somewhat less formally than a court trial. In most cases the arbitraror is an attorney, either alone or as part of a panel. issued a decision determining that the contractual preconditions were met to allow UBE to sell its 33 1/3% interest to the majority owner of BE at fair market value and that UBE effectively exercised its right to sell following a vote taken by BE's management committee on February 9, 2005. The potential timing to complete, the total expenses associated with, and results of the appraisal of fair market value are not known at this time. Because of the costs incurred to date in regards to the arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the and valuation, UIL is revising its earnings estimates for UBE to losses of $0.55 - $0.45 per share, compared to the previous estimate of losses from $0.50 - $0.40 per share. This estimate assumes the sale of UBE's interest does not occur before the end of 2005. It is not anticipated at this time that BE will require additional capital from UBE in 2005. United Capital Investments, Inc. UCI is 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. a loss of $0.05 per share to breakeven in 2005, compared to the previous estimate of breakeven to earnings of $0.05 per share. This change is the result of higher administrative costs for UCI and negative results from UCI's venture funds. 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 2005, unchanged from the previous estimate. UIL Corporate is entirely dependent on dividends from its subsidiaries and external borrowings to provide the cash necessary to service its debts, pay administrative costs, and pay common dividends to UIL's shareholders and to meet other contractual obligations not funded by UIL's subsidiaries. UIL Corporate is expected to operate at a cash deficit in 2005. UIL Corporate will use cash on hand, as well as short-term borrowings, to fund its 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 minority ownership interest 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 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 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. 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 2005:
UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Thousands except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
-------- -------- -------- --------
Operating Revenues
Utility $259,442 $231,421 $632,271 $588,857
Non-utility businesses 109,949 91,999 295,547 244,725
-------- -------- -------- --------
Total Operating Revenues 369,391 323,420 927,818 833,582
-------- -------- -------- --------
Operating Expenses
Operation
Fuel and energy 130,919 119,748 319,997 289,014
Operation and maintenance 165,520 138,515 454,151 386,370
Depreciation and amortization 23,212 18,189 58,168 51,826
Taxes - other than income
taxes 12,962 11,467 33,789 32,153
-------- -------- -------- --------
Total Operating Expenses 332,613 287,919 866,105 759,363
-------- -------- -------- --------
Operating Income From
Continuing Operations 36,778 35,501 61,713 74,219
-------- -------- -------- --------
Other Income and (Deductions),
net 3,076 1,393 10,063 8,305
-------- -------- -------- --------
Interest Charges, net
Interest on long-term debt 5,158 5,064 15,582 15,126
Other interest, net 1,429 (857) 2,494 633
-------- -------- -------- --------
6,587 4,207 18,076 15,759
Amortization of debt expense
and redemption premiums 387 377 1,156 1,090
-------- -------- -------- --------
Total Interest Charges, net 6,974 4,584 19,232 16,849
-------- -------- -------- --------
Income From Continuing
Operations Before Income Taxes
and Equity Earnings 32,880 32,310 52,544 65,675
-------- -------- -------- --------
Income Taxes 14,143 15,632 22,138 28,858
-------- -------- -------- --------
Income From Continuing
Operations Before Equity
Earnings 18,737 16,678 30,406 36,817
Income (Losses) from Equity
Investments (183) (359) (5,265) (4,440)
-------- -------- -------- --------
Income From Continuing
Operations 18,554 16,319 25,141 32,377
Discontinued Operations, Net of
Tax (102) 16 (102) 49,824
-------- -------- -------- --------
Net Income $ 18,452 $ 16,335 $ 25,039 $ 82,201
======== ======== ======== ========
Average Number of Common Shares
Outstanding - Basic 14,570 14,394 14,534 14,363
Average Number of Common Shares
Outstanding - Diluted 14,694 14,436 14,665 14,411
Earnings Per Share of Common
Stock - Basic:
Continuing Operations $ 1.28 $ 1.13 $ 1.73 $ 2.25
Discontinued Operations (0.01) 0.00 (0.01) 3.47
-------- -------- -------- --------
Net Earnings $ 1.27 $ 1.13 $ 1.72 $ 5.72
======== ======== ======== ========
Earnings Per Share of Common
Stock - Diluted:
Continuing Operations $ 1.27 $ 1.13 $ 1.72 $ 2.25
Discontinued Operations $ (0.01) $ - $ (0.01) $ 3.45
-------- -------- -------- --------
Net Earnings 1.26 $ 1.13 $ 1.71 $ 5.70
======== ======== ======== ========
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) 2005 2004
------------------------------------------ ------------- ------------
ASSETS
Current assets $ 274,836 $ 258,078
Property, plant and equipment, net 577,096 563,852
Regulatory assets 663,146 696,356
Other long-term assets 275,099 269,322
----------- -----------
Total Assets $ 1,790,177 $ 1,787,608
----------- -----------
LIABILITIES AND CAPITALIZATION
Current liabilities $ 203,558 $ 197,624
Noncurrent liabilities 133,244 147,434
Deferred income taxes 351,146 345,482
Regulatory liabilities 67,263 57,497
----------- -----------
Total Liabilities 755,211 748,037
Net long-term debt 486,888 491,174
Net common stock equity 548,078 548,397
----------- -----------
Total Capitalization 1,034,966 1,039,571
------------- ------------
Total Liabilities and Capitalization $ 1,790,177 $ 1,787,608
----------- -----------
UIL HOLDINGS CORPORATION
SEGMENTED CONSOLIDATED INCOME STATEMENT
Quarter Ended Year to Date
September 30, September 30,
(In Millions - Unaudited) 2005 2004 2005 2004
------------------------------------- ------ ------ ------ ------
Operating Revenue
UI from operations $259.5 $231.4 $632.3 $588.9
Xcelecom 109.9 92.0 295.5 244.7
------ ------ ------ ------
Total $369.4 $323.4 $927.8 $833.6
====== ====== ====== ======
Fuel and energy expense - UI $130.9 $119.7 $320.0 $289.0
====== ====== ====== ======
Operation and maintenance expense
UI $ 56.6 $ 48.0 $151.7 $142.7
Xcelecom 107.7 89.3 298.0 240.0
Minority Interest Investment and
Other (1) 1.2 1.2 4.4 3.7
------ ------ ====== ======
Total $165.5 $138.5 $454.1 $386.4
====== ====== ====== ======
Depreciation and amortization
UI $ 7.8 $ 7.2 $ 22.8 $ 22.0
Xcelecom 0.9 1.0 2.7 2.7
------ ------ ------ ------
Subtotal depreciation 8.7 8.2 25.5 24.7
Amortization of regulatory assets
(UI) 14.3 9.7 31.9 26.2
Amortization Xcelecom 0.3 0.3 0.8 0.9
------ ------ ------ ------
Total depreciation and
amortization $ 23.3 $ 18.2 $ 58.2 $ 51.8
====== ====== ====== ======
Taxes - other than income taxes
UI - State gross earnings tax $ 9.0 $ 7.4 $ 20.9 $ 19.6
UI - other 3.5 3.7 11.2 11.1
Xcelecom 0.5 0.4 1.7 1.5
------ ------ ------ ------
Total $ 13.0 $ 11.5 $ 33.8 $ 32.2
====== ====== ====== ======
Other Income (Deductions)
UI - other $ 2.5 $ 0.9 $ 6.6 $ 6.9
Xcelecom 0.2 0.1 2.3 0.6
Minority Interest Investment and
Other (1) 0.4 0.4 1.2 0.8
------ ------ ------ ------
Total $ 3.1 $ 1.4 $ 10.1 $ 8.3
====== ====== ====== ======
Interest Charges
UI $ 4.3 $ 2.3 $ 12.2 $ 10.2
UI - Amortization: debt expense,
redemption premiums 0.4 0.4 1.1 1.1
Xcelecom 0.6 0.1 1.2 0.4
Minority Interest Investment and
Other (1) 1.6 1.8 4.7 5.1
------ ------ ------ ------
Total $ 6.9 $ 4.6 $ 19.2 $ 16.8
====== ====== ====== ======
Income Taxes
UI $ 15.2 $ 16.4 $ 30.3 $ 34.6
Xcelecom 0.0 0.4 (2.8) (0.1)
Minority Interest Investment and
Other (1) (1.1) (1.1) (5.4) (5.6)
------ ------ ------ ------
Total $ 14.1 $ 15.7 $ 22.1 $ 28.9
====== ====== ====== ======
Income (Losses) from Equity
Investments
UI $ 0.1 $ 0.1 $ 0.2 $ 0.2
Minority Interest Investment (2) (0.3) (0.4) (5.5) (4.6)
------ ------ ------ ------
Total ($0.2) ($0.3) ($5.3) ($4.4)
====== ====== ====== ======
Net Income
UI $ 20.1 $ 17.6 $ 37.0 $ 39.5
Xcelecom 0.1 0.6 (3.8) (0.1)
Minority Interest Investment and
Other (1) (2) (1.6) (1.9) (8.0) (7.0)
------ ------ ------ ------
Subtotal Net Income from
Continuing Operations 18.6 16.3 25.2 32.4
Discontinued Operations (0.1) 0.0 (0.1) 49.8
------ ------ ------ ------
Total Net Income $ 18.5 $ 16.3 $ 25.1 $ 82.2
====== ====== ====== ======
(1) The category "Minority Interest Investment and Other" includes
amounts recognized at the non-utility businesses in relation to their
minority interest investments, as well as unallocated holding company
costs.
(2) Includes income (losses) recognized at the non-utility businesses
in relation to their minority interest investments.
BUSINESS SEGMENT SUMMARY INFORMATION
(In Millions, except per share amounts)
----------------------------------------------------------------------
UIL HOLDINGS CORPORATION
----------------------------------------------------------------------
Quarter Quarter Year to Year to
Ended Ended Date Date
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2005 2004 2005 2004
--------- -------- -------- ---------
Income from Continuing
Operations, net of tax $ 18.6 $ 16.3 $ 25.2 $ 32.4
Net Income $ 18.5 $ 16.3 $ 25.1 $ 82.2
Earnings per Share - basic $ 1.27 $ 1.13 $ 1.72 $ 5.72
----------------------------------------------------------------------
----------------------------------------------------------------------
THE UNITED ILLUMINATING COMPANY
----------------------------------------------------------------------
Quarter Quarter Year to Year to
Ended Ended Date Date
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2005 2004 2005 2004
--------- -------- -------- ---------
Net Income $ 20.1 $ 17.6 $ 37.0 $ 39.5
Earnings per Share - basic $ 1.38 $ 1.23 $ 2.54 $ 2.75
Retail Sales (millions of KWH) 1,779 1,621 4,649 4,529*
*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
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
XCELECOM 2005 2004 2005 2004
-------- --------- -------- -------- ---------
Net Income $ 0.1 $ 0.6 $ (3.8) $ (0.1)
Earnings per Share - basic $ 0.01 $ 0.04 $ (0.26) $ (0.01)
MINORITY INTEREST INVESTMENT
AND OTHER
---------
Net Income $ (1.6) $ (1.9) $ (8.0) $ (7.0)
Earnings per Share - basic $ (0.11) $ (0.14) $ (0.55) $ (0.49)
DISCONTINUED OPERATIONS
-----------------------
Net Income $ (0.1) $ - $ (0.1) $ 49.8
Earnings per Share - basic $ (0.01) $ - $ (0.01) $ 3.47
TOTAL NON-UTILITY BUSINESSES
----------------------------
Net Income $ (1.6) $ (1.3) $ (11.9) $ 42.7
Earnings per Share - basic $ (0.11) $ (0.10) $ (0.82) $ 2.97
----------------------------------------------------------------------
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