Unitil Corporation (NYSE: UTL) (unitil.com) today announced Net
Income of $45.2 million, or $2.82 in Earnings Per Share (EPS), for
the year ended December 31, 2023, an increase of $3.8 million in
Net Income, or $0.23 in EPS, compared to 2022. The Company’s 2023
Electric and Gas GAAP Gross Margins were $78.1 million and $114.1
million, respectively.
“We delivered strong financial and operating results in 2023 by
executing on our strategies, and focusing on operational excellence
and best-in-class service,” said Thomas P. Meissner, Jr., Unitil’s
Chairman and Chief Executive Officer. “As we head into 2024, we
remain focused on the issues that matter most — safety,
reliability, affordability and financial discipline. We
believe that by doing so, we will continue to create long-term
sustainable value for all stakeholders.”
Electric GAAP Gross Margin was $78.1 million in 2023, an
increase of $4.7 million compared to 2022. The increase was driven
by higher rates and customer growth of $5.3 million, partially
offset by higher depreciation and amortization expense of $0.6
million.
Electric Adjusted Gross Margin (a non-GAAP financial measure1)
was $104.1 million in 2023, an increase of $5.3 million compared
with 2022. The increase was driven by higher rates and customer
growth.
Gas GAAP Gross Margin was $114.1 million in 2023, an increase of
$6.5 million compared to 2022. The increase was driven by higher
rates and customer growth of $14.1 million, partially offset by the
unfavorable effects of warmer winter weather in 2023 of $1.1
million, higher depreciation and amortization of $4.1 million, and
the recognition, in the second quarter of 2022, of $2.4
million in higher rates resulting from the Company’s base rate case
in New Hampshire.
--------1 The accompanying Supplemental Information more fully
describes the non-GAAP financial measures used in this press
release and includes a reconciliation of the non-GAAP financial
measures to the financial measures that the Company’s management
believes are the most comparable GAAP financial measures. The
Supplemental Information also includes a discussion of the changes
in the most comparable GAAP financial measures for the periods
presented.--------
Gas Adjusted Gross Margin (a non-GAAP financial measure1) was
154.5 million in 2023, an increase of $10.6 million compared to
2022. The increase was driven by higher rates and customer growth
of $14.1 million, partially offset by the unfavorable effects of
warmer winter weather in 2023 of $1.1 million and the recognition,
in the second quarter of 2022, of $2.4 million in higher rates
resulting from the Company’s base rate case in New Hampshire.
Operation and Maintenance (O&M) expenses increased $1.9
million, or 2.6%, in 2023 compared to 2022, reflecting higher
utility operating costs of $1.2 million, higher professional fees
of $0.4 million and higher labor costs of $0.3 million.
Depreciation and Amortization expense increased $4.8 million in
2023 compared to 2022, reflecting additional depreciation
associated with higher levels of utility plant in service and
higher amortization of rate case and other deferred costs.
Taxes Other Than Income Taxes increased $2.6 million in 2023
compared to 2022, reflecting higher local property taxes on higher
utility plant in service and higher payroll and other taxes.
Interest Expense, Net increased $3.2 million in 2023 compared to
2022 primarily reflecting higher interest on short-term borrowings,
partially offset by higher interest income on regulatory assets and
other.
Other Expense (Income), Net decreased $2.4 million in 2023
compared to 2022, reflecting lower retirement benefit costs.
Federal and State Income Taxes increased $2.0 million in 2023
compared to 2022, reflecting higher pre-tax earnings in 2023 and
higher flow back, in 2022, of excess Accumulated Deferred Income
Taxes per regulatory orders in New Hampshire.
In 2023, Unitil’s annual common dividend was $1.62 per share,
representing an unbroken record of quarterly dividend payments
since trading began in Unitil’s common stock. At its January 2024
meeting, the Unitil Corporation Board of Directors declared a
quarterly dividend on the Company’s common stock of $0.425 per
share, an increase of $0.02 per share on a quarterly basis,
resulting in an increase in the effective annualized dividend rate
to $1.70 per share from $1.62 per share.
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
fourth quarter and full year 2023 results on Tuesday, February 13,
2024, at 10:00 a.m. Eastern Time. This call is being webcast. This
call, financial and other statistical information contained in the
Company’s presentation on this call, and information required by
Regulation G regarding non-GAAP financial measures can be accessed
in the Investor Relations section of Unitil’s website,
unitil.com.
About Unitil Corporation
Unitil Corporation provides energy for life by safely and
reliably delivering electricity and natural gas 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 108,500 electric customers and 88,400 natural gas
customers. For more information about our people, technologies, and
community involvement please visit 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, energy commodities and
transmission and transportation 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; unforeseen or changing
circumstances, which could adversely affect the reduction of
company-wide direct greenhouse gas emissions; 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 except as required by law.
For more information please contact: |
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Todd Diggins – Investor RelationsPhone: 603-773-6504 |
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Alec O’Meara – External AffairsPhone: 603-773-6404 |
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Email: diggins@unitil.com |
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Email: omeara@unitil.com |
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Supplemental Information; Non-GAAP Financial Measures
The Company analyzes operating results using Electric and Gas
Adjusted Gross Margins, which are non-GAAP financial measures.
Electric Adjusted Gross Margin is calculated as Total Electric
Operating Revenue less Cost of Electric Sales. Gas Adjusted Gross
Margin is calculated as Total Gas Operating Revenues less Cost of
Gas Sales. The Company’s management believes Electric and Gas
Adjusted Gross Margins provide useful information to investors
regarding profitability. Also, the Company’s management believes
Electric and Gas Adjusted Gross Margins are important measures to
analyze revenue from the Company’s ongoing operations because the
approved cost of electric and gas sales are tracked, reconciled and
passed through directly to customers in electric and gas tariff
rates, resulting in an equal and offsetting amount reflected in
Total Electric and Gas Operating Revenue.
In the following tables the Company has reconciled Electric and
Gas Adjusted Gross Margin to GAAP Gross Margin, which we believe to
be the most comparable GAAP financial measure. GAAP Gross Margin is
calculated as Revenue less Cost of Sales, and Depreciation and
Amortization. The Company calculates Electric and Gas Adjusted
Gross Margin as Revenue less Cost of Sales. The Company believes
excluding Depreciation and Amortization, which are period costs and
not related to volumetric sales, is a meaningful measure to inform
investors of the Company’s profitability from electric and gas
sales in the period.
Twelve Months Ended December 31, 2023 ($
millions) |
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Electric |
Gas |
Other |
Total |
Total Operating Revenue |
$ |
306.5 |
|
$ |
250.6 |
|
$ |
--- |
|
$ |
557.1 |
|
Less:
Cost of Sales |
|
(202.4 |
) |
|
(96.1 |
) |
|
--- |
|
|
(298.5 |
) |
Less:
Depreciation and Amortization |
|
(26.0 |
) |
|
(40.4 |
) |
|
(1.0 |
) |
|
(67.4 |
) |
GAAP Gross Margin |
|
78.1 |
|
|
114.1 |
|
|
(1.0 |
) |
|
191.2 |
|
Depreciation and Amortization |
|
26.0 |
|
|
40.4 |
|
|
1.0 |
|
|
67.4 |
|
Adjusted Gross Margin |
$ |
104.1 |
|
$ |
154.5 |
|
$ |
--- |
|
$ |
258.6 |
|
Twelve Months Ended December 31, 2022 ($
millions) |
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Electric |
Gas |
Other |
Total |
Total Operating Revenue |
$ |
297.9 |
|
$ |
265.3 |
|
$ |
--- |
|
$ |
563.2 |
|
Less:
Cost of Sales |
|
(199.1 |
) |
|
(121.4 |
) |
|
--- |
|
|
(320.5 |
) |
Less:
Depreciation and Amortization |
|
(25.4 |
) |
|
(36.3 |
) |
|
(0.9 |
) |
|
(62.6 |
) |
GAAP Gross Margin |
|
73.4 |
|
|
107.6 |
|
|
(0.9 |
) |
|
180.1 |
|
Depreciation and Amortization |
|
25.4 |
|
|
36.3 |
|
|
0.9 |
|
|
62.6 |
|
Adjusted Gross Margin |
$ |
98.8 |
|
$ |
143.9 |
|
$ |
--- |
|
$ |
242.7 |
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Selected financial data for 2023 and 2022 is presented in the
following table:
Unitil Corporation - Condensed Consolidated Financial
Data |
(Millions, except Per Share data) (Unaudited) |
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Twelve Months Ended December 31, |
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2023 |
2022 |
Change |
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Electric kWh Sales: |
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Residential |
|
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649.3 |
|
|
|
680.5 |
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(4.6 |
%) |
Commercial/Industrial |
|
|
914.2 |
|
|
|
933.9 |
|
|
|
(2.1 |
%) |
Total Electric kWh Sales |
|
|
1,563.5 |
|
|
|
1,614.4 |
|
|
|
(3.2 |
%) |
|
|
|
|
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Gas Therm Sales: |
|
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|
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Residential |
|
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42.9 |
|
|
|
44.6 |
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(3.8 |
%) |
Commercial/Industrial |
|
|
178.6 |
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|
|
180.2 |
|
|
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(0.9 |
%) |
Total Gas Therm Sales |
|
|
221.5 |
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|
224.8 |
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(1.5 |
%) |
|
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Electric Revenues |
|
$ |
306.5 |
|
|
$ |
297.9 |
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|
$ |
8.6 |
|
Cost of Electric Sales |
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|
202.4 |
|
|
|
199.1 |
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|
|
3.3 |
|
Electric Adjusted Gross Margin (a
non-GAAP financial
measure1): |
|
|
104.1 |
|
|
|
98.8 |
|
|
|
5.3 |
|
|
|
|
|
|
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|
Gas Revenues |
|
|
250.6 |
|
|
|
265.3 |
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|
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(14.7 |
) |
Cost of Gas Sales |
|
|
96.1 |
|
|
|
121.4 |
|
|
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(25.3 |
) |
Gas Adjusted Gross Margin (a non-GAAP
financial
measure1): |
|
|
154.5 |
|
|
|
143.9 |
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|
|
10.6 |
|
|
|
|
|
|
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Total Adjusted Gross Margin: (a non-GAAP
financial
measure1): |
|
|
258.6 |
|
|
|
242.7 |
|
|
|
15.9 |
|
|
|
|
|
|
|
|
Operation & Maintenance Expenses |
|
|
75.6 |
|
|
|
73.7 |
|
|
|
1.9 |
|
Depreciation & Amortization |
|
|
67.4 |
|
|
|
62.6 |
|
|
|
4.8 |
|
Taxes Other Than Income Taxes |
|
|
28.5 |
|
|
|
25.9 |
|
|
|
2.6 |
|
Other Expense (Income), Net |
|
|
--- |
|
|
|
2.4 |
|
|
|
(2.4 |
) |
Interest Expense, Net |
|
|
28.7 |
|
|
|
25.5 |
|
|
|
3.2 |
|
Income Before Income Taxes |
|
|
58.4 |
|
|
|
52.6 |
|
|
|
5.8 |
|
Provision for Income Taxes |
|
|
13.2 |
|
|
|
11.2 |
|
|
|
2.0 |
|
Net Income |
|
$ |
45.2 |
|
|
$ |
41.4 |
|
|
$ |
3.8 |
|
|
|
|
|
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|
Earnings Per Share |
|
$ |
2.82 |
|
|
$ |
2.59 |
|
|
$ |
0.23 |
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