Unitil Corporation (NYSE:UTL) (www.unitil.com) today announced Net
Income of $3.5 million, or $0.25 per share, for the third quarter
of 2016, an increase of $1.8 million, or $0.13 per share, compared
to the third quarter of 2015. For the nine months ended September
30, 2016, the Company reported Net Income of $16.9 million, a
decrease of $0.1 million compared to the same nine month period in
2015. Earnings Per Share (EPS) for the nine months ended
September 30, 2016 and 2015 were $1.21 and $1.22, respectively. The
increase in earnings for the third quarter of 2016 was driven by
higher electric sales margins, reflecting increased electric sales,
new distribution rates and lower operation and maintenance
(O&M) expenses.
“Higher electric sales driven by the hotter than normal summer
weather and cost control efforts combined to provide strong
financial results for the third quarter,” said Robert G.
Schoenberger, Unitil’s Chairman and Chief Executive Officer. “We’ve
had a very productive summer completing a number of gas and
electric distribution system expansion projects, as we have added
nearly 2,000 new gas and electric customers in the last twelve
months.”
Natural gas sales margins were $16.0 million and $71.7 million
in the three and nine months ended September 30, 2016,
respectively, resulting in decreases of $0.2 million and $1.4
million, respectively, compared to the same periods in 2015. Gas
sales margins in the third quarter were negatively affected by a
decrease in natural gas unit sales during the usually low-use
summer period, partially offset by the positive impact from
customer growth and higher natural gas distribution rates. For the
nine month period, natural gas sales margins were negatively
affected by lower unit sales due to warmer winter weather,
partially offset by the positive impacts of customer growth and
higher natural gas distribution rates. Based on weather data
collected in the Company’s natural gas service areas, there were
19% fewer Heating Degree Days (HDD) in the first nine months of
2016 compared to the same period in 2015. The Company estimates
that the warmer winter weather in 2016 compared to 2015 negatively
impacted gas sales margins by approximately $5.0 million, or $0.22
per share.
Electric sales margins were $25.6 million and $66.1 million in
the three and nine months ended September 30, 2016, respectively,
resulting in increases of $3.4 million and $2.2 million,
respectively, compared to the same periods in 2015. Electric sales
margins were positively affected by customer growth, higher
electric distribution rates and the favorable effect of hotter than
normal summer weather.
Usource, the Company’s non-regulated energy brokering business,
recorded revenues of $1.5 million and $4.6 million for the three
and nine months ended September 30, 2016, respectively, on par with
the three and nine month periods in 2015.
O&M expenses decreased $1.3 million and $1.4 million for the
three and nine months ended September 30, 2016, respectively,
compared to the same periods in 2015. The decrease in the three
month period reflects lower utility operating costs of $1.8
million, partially offset by higher compensation and benefit costs
of $0.5 million. The decrease in O&M expenses in the nine month
period reflects lower utility operating costs of $2.9 million,
partially offset by higher compensation and benefit costs of $1.5
million.
Depreciation, Amortization, Property Taxes and other expenses
increased $0.7 million and $2.7 million in the three and nine
months ended September 30, 2016, respectively, compared to the same
periods in 2015, reflecting higher utility plant assets in service
and property taxes.
Interest Expense, net was relatively unchanged in the three
months ended September 30, 2016 compared to the same period in
2015. For the nine month period ended September 30, 2016,
Interest Expense, net decreased $0.6 million compared to the same
period in 2015, primarily reflecting lower levels of long-term debt
and higher net interest income on regulatory assets.
Income Taxes increased by $1.9 million for the three months
ended September 30, 2016 compared to the same period in 2015,
reflecting higher pre-tax earnings. Federal and State Income Taxes
increased by $0.1 million for the nine months ended September 30,
2016 compared to the same period in 2015.
Also in the third quarter, the Unitil Corporation Board of
Directors declared the regular quarterly dividend on the Company’s
common stock of $0.3550 per share. This quarterly dividend results
in a current effective annual dividend rate of $1.42 per share
representing an unbroken record of quarterly dividend payments
since trading began in Unitil’s common stock.
The Company’s earnings are seasonal and are typically higher in
the first and fourth quarters when customers use natural gas for
heating purposes.
The Company will hold a quarterly conference call to discuss
third quarter 2016 results on Thursday, October 20, 2016, 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 the delivery of
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 103,300 electric customers and 78,700 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 may contain 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,
gas and electric energy commodities and transmission and
transportation capacity and Unitil’s ability to recover energy
supply 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; increased
competition; and other risks detailed in Unitil's filings with the
Securities and Exchange Commission. 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.
For more information please contact:
David Chong – Investor RelationsPhone: 603-773-6499Email:
chong@unitil.com
Alec O’Meara – Media RelationsPhone: 603-773-6404Email:
omeara@unitil.com
Selected financial data for 2016 and 2015 is presented in the
following table:
|
Unitil Corporation – Condensed Consolidated Financial
Data |
(Millions, except
Per Share data)(Unaudited) |
|
|
Three Months Ended Sept. 30, |
|
Nine Months Ended Sept. 30, |
|
2016 |
2015 |
Change |
|
2016 |
2015 |
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Therm
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
2.6 |
|
|
|
2.6 |
|
|
|
--- |
|
|
|
|
30.5 |
|
|
|
36.3 |
|
|
|
(16.0 |
%) |
Commercial/Industrial |
|
|
23.0 |
|
|
|
23.4 |
|
|
|
(1.7 |
%) |
|
|
|
121.6 |
|
|
|
133.6 |
|
|
|
(9.0 |
%) |
Total Gas Therm
Sales |
|
|
25.6 |
|
|
|
26.0 |
|
|
|
(1.5 |
%) |
|
|
|
152.1 |
|
|
|
169.9 |
|
|
|
(10.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric kWh
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
191.7 |
|
|
|
185.5 |
|
|
|
3.3 |
% |
|
|
|
505.9 |
|
|
|
528.4 |
|
|
|
(4.3 |
%) |
Commercial/Industrial |
|
|
274.5 |
|
|
|
274.8 |
|
|
|
(0.1 |
%) |
|
|
|
751.0 |
|
|
|
765.0 |
|
|
|
(1.8 |
%) |
Total Electric kWh
Sales |
|
|
466.2 |
|
|
|
460.3 |
|
|
|
1.3 |
% |
|
|
|
1,256.9 |
|
|
|
1,293.4 |
|
|
|
(2.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Revenues |
|
$ |
22.1 |
|
|
$ |
21.7 |
|
|
$ |
0.4 |
|
|
|
$ |
124.1 |
|
|
$ |
149.6 |
|
|
$ |
(25.5 |
) |
Cost of Gas Sales |
|
|
6.1 |
|
|
|
5.5 |
|
|
|
0.6 |
|
|
|
|
52.4 |
|
|
|
76.5 |
|
|
|
(24.1 |
) |
Gas Sales
Margin |
|
|
16.0 |
|
|
|
16.2 |
|
|
|
(0.2 |
) |
|
|
|
71.7 |
|
|
|
73.1 |
|
|
|
(1.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Revenues |
|
|
55.2 |
|
|
|
51.4 |
|
|
|
3.8 |
|
|
|
|
150.4 |
|
|
|
170.1 |
|
|
|
(19.7 |
) |
Cost of Electric Sales |
|
|
29.6 |
|
|
|
29.2 |
|
|
|
0.4 |
|
|
|
|
84.3 |
|
|
|
106.2 |
|
|
|
(21.9 |
) |
Electric Sales
Margin |
|
|
25.6 |
|
|
|
22.2 |
|
|
|
3.4 |
|
|
|
|
66.1 |
|
|
|
63.9 |
|
|
|
2.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Usource Revenues |
|
|
1.5 |
|
|
|
1.6 |
|
|
|
(0.1 |
) |
|
|
|
4.6 |
|
|
|
4.7 |
|
|
|
(0.1 |
) |
Total Sales
Margin: |
|
|
43.1 |
|
|
|
40.0 |
|
|
|
3.1 |
|
|
|
|
142.4 |
|
|
|
141.7 |
|
|
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation & Maintenance
Expenses |
|
|
15.5 |
|
|
|
16.8 |
|
|
|
(1.3 |
) |
|
|
|
48.6 |
|
|
|
50.0 |
|
|
|
(1.4 |
) |
Depreciation, Amortization,
Property Taxes & Other |
|
|
16.6 |
|
|
|
15.9 |
|
|
|
0.7 |
|
|
|
|
50.0 |
|
|
|
47.3 |
|
|
|
2.7 |
|
Interest Expense, net |
|
|
5.5 |
|
|
|
5.5 |
|
|
|
--- |
|
|
|
|
16.7 |
|
|
|
17.3 |
|
|
|
(0.6 |
) |
Income Before Income Taxes |
|
|
5.5 |
|
|
|
1.8 |
|
|
|
3.7 |
|
|
|
|
27.1 |
|
|
|
27.1 |
|
|
|
--- |
|
Income Tax Expense |
|
|
2.0 |
|
|
|
0.1 |
|
|
|
1.9 |
|
|
|
|
10.2 |
|
|
|
10.1 |
|
|
|
0.1 |
|
Net Income |
|
$ |
3.5 |
|
|
$ |
1.7 |
|
|
$ |
1.8 |
|
|
|
$ |
16.9 |
|
|
$ |
17.0 |
|
|
$ |
(0.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share |
|
$ |
0.25 |
|
|
$ |
0.12 |
|
|
$ |
0.13 |
|
|
|
$ |
1.21 |
|
|
$ |
1.22 |
|
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unitil (NYSE:UTL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Unitil (NYSE:UTL)
Historical Stock Chart
From Apr 2023 to Apr 2024