HAMPTON, N.H. -- (Business Wire)
Unitil Corporation (NYSE: UTL) (www.unitil.com)
today announced Net Income of $1.1 million, or $0.08 per share, for the
second quarter of 2014, an increase of $1.2 million, or $0.09 per share,
compared to the second quarter of 2013. For the six months ended June
30, 2014, the Company reported Net Income of $13.7 million, a 28%
increase over the same period in 2013. Earnings Per Share (EPS) for the
six months ended June 30, 2014 were $0.99 compared to EPS of $0.78 for
the same period of 2013. The Company’s earnings for 2014 were driven by
increases in natural gas and electric sales and margins.
“The Company had an excellent second quarter and first half of the
year,” said Robert G. Schoenberger, Unitil’s Chairman and Chief
Executive Officer. “These results reflect increases in revenue from
recent rate cases and our robust gas expansion program. Given the demand
for natural gas, including in many communities currently without gas
service, we expect this growth to continue for years to come.”
Natural gas sales margins were $16.3 million and $52.8 million in the
three and six months ended June 30, 2014, respectively, resulting in
increases of $2.9 million and $8.9 million, respectively, compared to
the same periods in 2013. Natural gas sales margins in 2014 were
positively affected by higher therm unit sales, a growing customer base
and recently approved distribution rates. Therm sales of natural gas
increased 12.9% in the first six months of 2014 compared to 2013, driven
by the colder winter weather and new customer additions in 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 six months of 2014
compared to 2013. Weather-normalized gas therm sales, excluding
decoupled sales, in the first six months of 2014 are estimated to be up
6.4% compared to 2013.
Electric sales margins were $18.9 million and $38.1 million in the three
and six months ended June 30, 2014, respectively, resulting in increases
of $1.0 million and $1.8 million, respectively, compared to 2013. These
increases reflect recently approved electric distribution rates.
Electric kWh sales increased 2.0% in the first six months of 2014
compared to the same period in 2013, driven by the colder winter weather
and new customer additions in 2014 compared to 2013.
Usource, the Company’s non-regulated energy brokering business, recorded
revenues of $3.0 million for the six months ended June 30, 2014, an
increase of $0.1 million compared to the same period in 2013.
Operation and Maintenance (O&M) expenses increased $0.2 million and $2.1
million for the three and six months ended June 30, 2014, respectively,
compared to the same periods in 2013. The increase in O&M expenses in
the three month and six month periods primarily reflects higher
compensation and benefit costs.
Depreciation, Amortization, Taxes and other expenses increased $1.8
million and $4.4 million in the three and six months ended June 30,
2014, respectively, compared to the same periods in 2013, primarily
reflecting higher depreciation expense, property taxes, amortization of
storm restoration costs and income taxes.
Interest Expense, Net increased $0.7 million and $1.3 million in the
three and six months ended June 30, 2014, respectively, compared to the
same periods in 2013, reflecting lower interest income on regulatory
assets.
Also in the second quarter, the Unitil Corporation Board of Directors
declared the regular quarterly dividend on the Company’s common stock of
$0.345 per share. This quarterly dividend results 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.
Selected financial data for 2014 and 2013 is presented in the following
table:
|
Unitil Corporation – Condensed Consolidated Financial Data |
(Millions, except Per Share and Shares data)(Unaudited) |
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| | 2014 | 2013 |
| Change | | 2014 | 2013 | Change |
| |
| |
| |
| | |
| |
| |
| |
Gas Therm Sales: | | | | | | | | | | | | | | |
Residential
| | | |
8.9
| | |
7.9
| | | |
12.7
|
%
| | | |
31.8
| | |
27.3
| | |
16.5
|
%
|
Commercial/Industrial
| | |
|
36.1
| |
|
33.4
|
| | |
8.1
|
%
| | |
|
106.6
| |
|
95.3
| | |
11.9
|
%
|
Total Gas Therm Sales | | |
| 45.0 | |
| 41.3 |
| | | 9.0 | % | | |
| 138.4 | |
| 122.6 | | | 12.9 | % |
| | | | | | | | | | | | | |
|
Electric kWh Sales: | | | | | | | | | | | | | | |
Residential
| | | |
147.0
| | |
151.6
| | | |
(3.0
|
%)
| | | |
348.9
| | |
340.0
| | |
2.6
|
%
|
Commercial/Industrial
| | |
|
237.4
| |
|
238.1
|
| | |
(0.3
|
%)
| | |
|
482.5
| |
|
475.4
| | |
1.5
|
%
|
Total Electric kWh Sales | | |
| 384.4 | |
| 389.7 |
| | | (1.4 | %) | | |
| 831.4 | |
| 815.4 | | | 2.0 | % |
|
| | | | | | | | | | | | | |
|
Gas Revenues | | |
$
|
25.8
| |
$
|
22.1
| | |
$
|
3.7
| | | |
$
|
118.4
| |
$
|
92.9
| |
$
|
25.5
| |
Cost of Gas Sales
| |
|
|
9.5
|
|
|
8.7
|
|
|
|
0.8
|
| |
|
|
65.6
|
|
|
49.0
|
|
|
16.6
|
|
Gas Sales Margin | | | | 16.3 | | | 13.4 | | | | 2.9 | | | | | 52.8 | | | 43.9 | | | 8.9 | |
| | | | | | | | | | | | | |
|
Electric Revenues | | | |
46.1
| | |
42.9
| | | |
3.2
| | | | |
108.0
| | |
88.8
| | |
19.2
| |
Cost of Electric Sales
| |
|
|
27.2
|
|
|
25.0
|
|
|
|
2.2
|
| |
|
|
69.9
|
|
|
52.5
|
|
|
17.4
|
|
Electric Sales Margin | | | | 18.9 | | | 17.9 | | | | 1.0 | | | | | 38.1 | | | 36.3 | | | 1.8 | |
| | | | | | | | | | | | | |
|
Usource Sales Margin | |
|
| 1.4 |
|
| 1.4 |
|
|
| --- |
| |
|
| 3.0 |
|
| 2.9 |
|
| 0.1 |
|
Total Sales Margin: | |
|
| 36.6 |
|
| 32.7 |
|
|
| 3.9 |
| |
|
| 93.9 |
|
| 83.1 |
|
| 10.8 |
|
| | | | | | | | | | | | | |
|
Operation & Maintenance
Expenses
| | | |
15.3
| | |
15.1
| | | |
0.2
| | | | |
32.4
| | |
30.3
| | |
2.1
| |
Depreciation, Amortization, Taxes
& Other
| | | |
14.9
| | |
13.1
| | | |
1.8
| | | | |
37.3
| | |
32.9
| | |
4.4
| |
Interest Expense, Net
| | |
|
5.3
| |
|
4.6
|
| |
|
0.7
|
| | |
|
10.5
| |
|
9.2
| |
|
1.3
|
|
Net Income (Loss) | | | $ | 1.1 | | $ | (0.1 | ) | | $ | 1.2 |
| | | $ | 13.7 | | $ | 10.7 | | $ | 3.0 |
|
| | | | | | | | | | | | | |
|
Earnings (Loss) Per Share | | | $ | 0.08 | | $ | (0.01 | ) | | $ | 0.09 | | | | $ | 0.99 | | $ | 0.78 | | $ | 0.21 | |
Weighted Average Common Shares Outstanding (000’s) | | | | 13,842 | | | 13,768 | | | | 74 | | | | | 13,832 | | | 13,760 | | | 72 | |
| | | | | | | | | | | | | | | | | | | | | | |
|
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 second
quarter 2014 results on Wednesday, July 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.
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:
Investor Relations
David Chong, 603-773-6499
chong@unitil.com
or
Media
Relations
Alec O’Meara, 603-773-6404
omeara@unitil.com
Source: Unitil Corporation
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