HAMPTON, N.H. -- (Business Wire)
Unitil Corporation (NYSE: UTL) (www.unitil.com)
today announced Net Income of $12.6 million for the first quarter of
2014, an increase of $1.8 million, or 17%, compared to the Company’s
results for the first quarter of 2013. Earnings Per Share was $0.91 for
the first quarter of 2014, up $0.12 per share compared to 2013. The
Company’s earnings for the first three months of 2014 were driven by
increases in natural gas and electric sales and margins.
“Unitil had an excellent first quarter, and our financial results
reflect the combination of the colder winter weather in 2014 and the
positive impact of steady customer growth,” said Robert G. Schoenberger,
Unitil’s Chairman and Chief Executive Officer. “We believe we have all
the elements in place for sustained long-term growth.”
Natural gas sales margins were $36.5 million in the first quarter of
2014, an increase of $6.0 million compared to the same period in 2013.
Natural gas sales margins in the first quarter of 2014 were positively
affected by higher therm unit sales, a growing customer base and
recently approved distribution rates. Therm sales of natural gas
increased 14.9% in the first quarter of 2014 compared to 2013, driven by
the colder winter weather in the first quarter of 2014 compared to 2013.
Based on weather data collected in the Company’s service areas, there
were 12% more Heating Degree Days in the first quarter of 2014 compared
to 2013. Weather-normalized gas therm sales, excluding decoupled sales,
in the first quarter of 2014 are estimated to be up 6.4% compared to
2013. As of March 31, 2014, the number of total natural gas customers
served has increased by 3.1% in the last twelve months.
Electric sales margins were $19.2 million in the first quarter of 2014,
an increase of $0.8 million compared to 2013, reflecting higher electric
kilowatt-hour (kWh) sales and recently approved electric distribution
rates. Electric kWh sales increased 5.0% in the first quarter of 2014
compared to 2013, driven by the colder winter weather in the first
quarter of 2014 compared to 2013.
Usource, the Company’s non-regulated energy brokering business, recorded
sales margin of $1.6 million in the first quarter of 2014, an increase
of $0.1 million compared to the first quarter of 2013.
Operation and Maintenance (O&M) expenses increased $1.9 million in the
three months ended March 31, 2014 compared to the same period in 2013.
The change in O&M expenses reflects higher compensation costs of $0.9
million, higher employee and retiree benefit costs of $0.6 million and
higher utility operating costs of $0.5 million; partially offset by
lower all other operating costs, net of $0.1 million.
Depreciation, Amortization, Taxes and other expenses increased $2.6
million in the three months ended March 31, 2014 compared to the same
period in 2013. Depreciation expense increased $0.5 million and property
taxes increased $0.8 million in the three months ended March 31, 2014
compared to the same period in 2013, due to higher levels of utility
plant in service. Amortization expense increased $0.2 million in 2014
due to higher amortization of storm restoration costs. Federal and State
Income Taxes increased $1.1 million for the three months ended March 31,
2014, reflecting higher pre-tax earnings in the current period.
Interest Expense, net increased $0.6 million in the three months ended
March 31, 2014 compared to the same period in 2013, reflecting lower
interest income on regulatory assets.
At its January 2014 and April 2014 meetings, Unitil’s Board of Directors
declared quarterly dividends on the Company’s common stock of $0.345 per
share. These quarterly dividends result in a current effective annual
dividend rate of $1.38 per share continuing an unbroken record of
quarterly dividend payments since trading began in Unitil’s common stock.
The Company’s results are expected to reflect the seasonal nature of the
natural gas businesses. Accordingly, the Company expects that results of
operations will be positively affected during the first and fourth
quarters, when sales of natural gas are typically higher, and negatively
affected during the second and third quarters, when gas operating and
maintenance expenses usually exceed sales margins in the period.
The Company will hold a quarterly conference call to discuss first
quarter 2014 results on Wednesday, April 23, 2014, at 2:00 p.m. Eastern
Time. This call is being webcast and can be accessed in the Investor
Relations section of Unitil’s website, www.unitil.com.
Selected financial data for 2014 and 2013 is presented in the following
table:
Unitil Corporation - Condensed Financial Data |
(Millions, except Per Share and Shares Data) (Unaudited) |
|
|
|
|
| Three Months Ended March 31, |
| | | | |
|
| 2014 |
|
|
|
|
| 2013 |
|
|
|
| Change |
| | | | | | | | | | | | | | | |
|
Gas Therm Sales: | | | | | | | | | | | | | | | | |
Residential
| | | | | | |
22.9
| | | | | |
19.4
| | | | | |
18.0
|
%
|
Commercial/Industrial
| | | | | |
|
70.5
| | | | |
|
61.9
| | | | | |
13.9
|
%
|
Total Gas Therm Sales | | | | | |
| 93.4 | | | | |
| 81.3 | | | | | | 14.9 | % |
| | | | | | | | | | | | | | | |
|
Electric kWh Sales: | | | | | | | | | | | | | | | | |
Residential
| | | | | | |
201.9
| | | | | |
188.4
| | | | | |
7.2
|
%
|
Commercial/Industrial
| | | | | |
|
245.1
| | | | |
|
237.3
| | | | | |
3.3
|
%
|
Total Electric kWh Sales | | | | | |
| 447.0 | | | | |
| 425.7 | | | | | | 5.0 | % |
|
|
| | | | | | | | | | | | | | | |
|
Gas Revenues | | | | | | $ | 92.6 | | | | | $ | 70.8 | | | | | $ | 21.8 | |
Cost of Gas Sales
| | | | | |
|
56.1
| | | | |
|
40.3
| | | | |
|
15.8
|
|
Gas Sales Margin | | | | | | | 36.5 | | | | | | 30.5 | | | | | | 6.0 | |
| | | | | | | | | | | | | | | |
|
Electric Revenues | | | | | | | 61.9 | | | | | | 45.9 | | | | | | 16.0 | |
Cost of Electric Sales
| | | | | |
|
42.7
| | | | |
|
27.5
| | | | |
|
15.2
|
|
Electric Sales Margin | | | | | | | 19.2 | | | | | | 18.4 | | | | | | 0.8 | |
| | | | | | | | | | | | | | | |
|
Usource Sales Margin | | | | | |
| 1.6 | | | | |
| 1.5 | | | | |
| 0.1 |
|
Total Sales Margin | | | | | |
| 57.3 | | | | |
| 50.4 | | | | |
| 6.9 |
|
| | | | | | | | | | | | | | | |
|
Operation & Maintenance Expenses
| | | | | | |
17.1
| | | | | |
15.2
| | | | | |
1.9
| |
Depreciation, Amortization, Taxes & Other
| | | | | | |
22.4
| | | | | |
19.8
| | | | | |
2.6
| |
Interest Expense, Net
| | | | | |
|
5.2
| | | | |
|
4.6
| | | | |
|
0.6
|
|
Net Income | | | | | | $ | 12.6 | | | | | $ | 10.8 | | | | | $ | 1.8 |
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
Earnings Per Share | | | | | | $ | 0.91 | | | | | $ | 0.79 | | | | | $ | 0.12 | |
| | | | | | | | | | | | | | | |
|
Weighted Average Common Shares Outstanding (000’s) | | | | | | | 13,822 | | | | | | 13,750 | | | | | | 72 | |
About Unitil Corporation
Unitil Corporation provides energy for life by safely and reliably
delivering natural gas and electricity in New England. We are committed
to the communities we serve and to developing people, business
practices, and technologies that lead to dependable, more efficient
energy.Unitil Corporation is a public utility holding company
with operations in Maine, New Hampshire and Massachusetts. Together,
Unitil’s operating utilities serve approximately 102,400 electric
customers and 75,900 natural gas customers. Other subsidiaries include
Usource, Unitil’s non-regulated business segment. For more information
about our people, technologies, and community involvement please visit www.unitil.com.
Forward-Looking Statements
This press release contains forward-looking statements. All statements,
other than statements of historical fact, included in this press release
are forward-looking statements. Forward-looking statements include
declarations regarding Unitil’s beliefs and current expectations. These
forward-looking statements are subject to the inherent risks and
uncertainties in predicting future results and conditions that could
cause the actual results to differ materially from those projected in
these forward-looking statements. Some, but not all, of the risks and
uncertainties include the following: Unitil’s regulatory environment
(including regulations relating to climate change, greenhouse gas
emissions and other environmental matters); fluctuations in the supply
of, the demand for, and the prices of energy commodities and
transmission capacity and Unitil’s ability to recover energy commodity
costs in its rates; customers’ preferred energy sources; severe storms
and Unitil’s ability to recover storm costs in its rates; general
economic conditions; variations in weather; long-term global climate
change; Unitil’s ability to retain its existing customers and attract
new customers; Unitil’s energy brokering customers’ performance under
multi-year energy brokering contracts; increased competition; and other
risks detailed in Unitil's filings with the Securities and Exchange
Commission, including those appearing under the caption "Risk Factors"
in Unitil's Annual Report on Form 10-K for the year ended December 31,
2013. These forward looking statements speak only as of the date they
are made. Unitil undertakes no obligation, and does not intend, to
update these forward-looking statements.
Contacts:
For more information please contact:
Unitil Corporation
David
Chong, 603-773-6499
Investor Relations
chong@unitil.com
or
Alec
O’Meara, 603-773-6404
Media Relations
omeara@unitil.com
Source: Unitil Corporation
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