Unitil Reports Third Quarter Earnings.Business Editors HAMPTON, N.H.--(BUSINESS WIRE)--Nov. 4, 2002 Unitil Corporation (AMEX AMEX See: American Stock Exchange : UTL UTL Utility UTL Universidade Técnica de Lisboa (Portugal) UTL University of Toronto Libraries (Canada) UTL Unable To Locate UTL Universal Task List UTL Upper Tolerance Limit UTL Unit Transmittal Letter ) (www.unitil.com) today announced earnings per common share of $0.29 for the third quarter of 2002, an improvement of $0.01 compared to the third quarter of 2001. Higher electric sales primarily due to a series of heat waves this summer, and lower 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. , led to this earnings improvement. Unitil's total electric kilowatt-hour (kWh) sales were 9.5% higher in the third quarter of 2002 versus prior year, due in part to higher-than-usual temperatures. Our service territories experienced 23 days of over-90-degree temperatures this quarter. Third quarter gas firm therm therm (therm) a unit of heat. The word has been used as equivalent to (a) large calorie; (b) small calorie; (c) 1000 large calories; (d) 100,000 British thermal units. sales were up 1.4% compared to the prior year. Year to date, gas firm therm sales were 12.4% lower than last year, due to extremely mild winter weather in the first quarter of 2002. Operating Revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. were lower for the three and nine months ended September 30, 2002 compared to the prior period, primarily reflecting lower wholesale electric and gas supply prices. Both electric and gas supply costs are collected from customers through periodic cost reconciliation mechanisms, and therefore, changes in these costs do not affect the Company's net income. For the 12 months ended September 30, 2002, earnings from operations were $0.95 per share versus $1.42 for the 12 months trailing September 30, 2001. The most recent 12-month period reflects the impact of a $0.50 per share write-down in the market value of non-utility investments taken by the Company in the fourth quarter of 2001. "We are pleased with our improved operating results for the quarter," said Unitil CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Bob Schoenberger. "We have continued to make good progress on key regulatory and business initiatives, which we set out at the beginning of the year, and are on target to position the Company for continued success in 2003." On January 25, 2002, the Company's New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). electric utility subsidiaries Concord Electric Company (CECo), Exeter & Hampton Electric Company (E&H), and Unitil Power Corp. (UPC (Universal Product Code) The standard bar code printed on retail merchandise, which is administered by GS1 US, Brussels, Belgium and Lawrenceville, NJ (www.gs1.org). ) filed a comprehensive electric restructuring proposal with the New Hampshire Public Utilities Commission New Hampshire Public Utilities Commission (NHPUC) is a New Hampshire state government regulatory agency that regulates and approves some of the charges of electric, telecommunications, natural gas, water and sewer utilities in the state. (NHPUC NHPUC New Hampshire Public Utilities Commission ). This proposal included the introduction of customer choice, the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of UPC's power supply portfolio, the recovery of stranded costs, the combination of CECo and E&H into a single electric distribution utility, and new distribution rates for the combined entity. On October 25, 2002, the NHPUC approved a multiparty mul·ti·par·ty adj. Of, relating to, or involving more than two political parties. settlement on all the major issues in the proceeding, including an increase of approximately $2.0 million in annual distribution revenue, effective December 1, 2002. On May 17, 2002, the Company's Massachusetts distribution utility subsidiary, Fitchburg Gas and Electric Light Company (FG&E), filed revised rates designed to increase annual base distribution revenues by approximately $3.2 million for electric service and $3.4 million for gas service. The Massachusetts Department of Telecommunications and Energy (MDTE MDTE Massachusetts Department of Telecommunications and Energy ) completed hearings on the rate filings in September, and a final order is due on or before December 3, 2002. On October 15, 2002, the MDTE issued an order approving a settlement agreement filed jointly by FG&E and the Massachusetts Attorney General The Massachusetts Attorney General is an executive officer of the Massachusetts Government. The current Attorney General is Martha Coakley. The Attorney General is the chief law enforcement officer and lawyer for Massachusetts. (AG) regarding the Company's Transition Charge reconciliation mechanism, which provides for the recovery of FG&E's restructuring-related stranded costs. The settlement resolves issues raised by the AG concerning FG&E's compliance with the Massachusetts Electric Restructuring Act and related MDTE orders. FG&E has agreed with the Environmental Protection Agency Environmental Protection Agency (EPA), independent agency of the U.S. government, with headquarters in Washington, D.C. It was established in 1970 to reduce and control air and water pollution, noise pollution, and radiation and to ensure the safe handling and to take environmental remedial action A remedial action is a change made to a nonconforming product or service to address the deficiency. Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction. at its former electric generation station located at Sawyer-Passway, including abatement A reduction, a decrease, or a diminution. The suspension or cessation, in whole or in part, of a continuing charge, such as rent. With respect to estates, an abatement is a proportional diminution or reduction of the monetary legacies, a disposition of property by will, when and removal of asbestos-containing materials. The Company believes it has sufficient insurance coverage to complete this remediation. As a result of declining interest rates and the recent sharp declines in equity markets, the Company - in accordance with requirements of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System #87 "Employers' Accounting for Pensions" - may be required to record a reduction to equity as a component of comprehensive income at the end of the fourth quarter. This non-cash, non-income-related adjustment could occur if the fair market value of pension assets is less than the accumulated pension benefit obligations at the annual measurement date of December 31, 2002. This accounting requirement would have no effect on net income. Unitil is a public utility holding company with subsidiaries providing electric service in New Hampshire and electric and gas service in Massachusetts and energy services throughout the Northeast. Its subsidiaries include Concord Electric Company, Exeter & Hampton Electric Company, Fitchburg Gas and Electric Light Company, Unitil Power Corp., Unitil Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Corp., Unitil Service Corp. and its unregulated Adj. 1. unregulated - not regulated; not subject to rule or discipline; "unregulated off-shore fishing" regulated - controlled or governed according to rule or principle or law; "well regulated industries"; "houses with regulated temperature" 2. business segment Unitil Resources, Inc. Usource L.L.C. is a subsidiary of Unitil Resources, Inc. The Usource product line is available at www.usourceonline.com. This news release contains 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. , which are subject to the inherent uncertainties in predicting future results and conditions. Certain factors that could cause the actual results to differ materially from those projected in these forward-looking statements include, but are not limited to; variations in weather, changes in the regulatory environment, customers' preferences on energy sources, general economic conditions, increased competition and other uncertainties, all of which are difficult to predict, and many of which are beyond the control of the Company.
Unitil Corporation
(Amounts In Thousands, except Shares and Per Share Data)
Three Months Ended
September 30,
2002 2001
Operating Revenues $48,007 $49,484
Net Income before Extraordinary Item $1,378 $1,354
Extraordinary Item -- (3,937)
Net Income Applicable to Common Stock $1,378 $(2,583)
Net Income before Extraordinary Item:
From Utility Operations $0.33 $0.31
From Non-regulated Operations (0.04) (0.03)
Earnings per Share before Extraordinary Item $0.29 $0.28
Net Income after Extraordinary Item:
From Utility Operations $0.33 $(0.52)
From Non-regulated Operations (0.04) (0.03)
Earnings per Share after Extraordinary Item $0.29 $(0.55)
Average Common Shares Outstanding 4,768,825 4,760,744
Nine Months Ended
September 30,
2002 2001
Operating Revenues $137,813 $159,593
Net Income before Extraordinary Item $4,363 $4,681
Extraordinary Item -- (3,937)
Net Income Applicable to Common Stock $4,363 $744
Net Income before Extraordinary Item:
From Utility Operations $1.01 $1.16
From Non-regulated Operations (0.09) (0.18)
Earnings per Share before Extraordinary Item $0.92 $0.98
Net Income after Extraordinary Item:
From Utility Operations $1.01 $0.33
From Non-regulated Operations (0.09) (0.18)
Earnings per Share after Extraordinary Item $0.92 $0.15
Average Common Shares Outstanding 4,767,796 4,759,556
Twelve Months Ended
September 30,
2002 2001
Operating Revenues $185,242 $208,845
Net Income before Extraordinary Item $4,452 $6,809
Extraordinary Item -- (3,937)
Net Income Applicable to Common Stock $4,452 $2,872
Net Income before Extraordinary Item:
From Utility Operations $1.04 $1.70
From Non-regulated Operations (.09) (0.28)
Earnings per Share before Extraordinary Item $0.95 $1.42
Net Income after Extraordinary Item:
From Utility Operations $1.04 $0.88
From Non-regulated Operations (.09) (0.28)
Earnings per Share after Extraordinary Item $0.95 $0.59
Average Common Shares Outstanding 4,766,001 4,752,662
For more information, visit Unitil at www.unitil.com or call Mark Collin at 603-772-0775. |
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