Unitil Corporation (NYSE: UTL) (unitil.com) today announced Net
Income of $4.3 million, or $0.27 in Earnings Per Share (EPS) for
the second quarter of 2024, an increase of $0.1 million in Net
Income, or $0.02 in EPS, compared to the second quarter of 2023.
For the six months ended June 30, 2024, the Company reported Net
Income of $31.5 million, or $1.96 in Earnings Per Share (EPS), an
increase of $3.2 million in Net Income, or $0.20 in EPS, compared
to the first six months of 2023. The Company’s Electric and Gas
GAAP Gross Margins for the second quarter of 2024 were $17.8
million and $20.5 million, respectively. For the six months ended
June 30, 2024, the Company’s Electric and Gas GAAP Gross Margins
were $37.9 million and $70.6 million, respectively. Operation and
Maintenance expenses include $0.3 million in both the three and six
months ended June 30, 2024 for transaction costs associated with
the Company’s recently announced acquisition of Bangor Natural Gas
Company.
“The Company continues to
provide best-in-class service to our customers and
deliver solid financial results for our investors,” said Thomas P.
Meissner, Jr., Unitil’s Chairman and Chief Executive Officer. “Our
planned acquisition of Bangor Natural Gas and the successful
outcomes of our rate cases in Massachusetts reflect the Company’s
commitment to long-term sustainable growth, which will continue to
create exceptional value for all stakeholders.”
Electric GAAP Gross Margin was $17.8 million in
the three months ended June 30, 2024, essentially unchanged
compared to the same period in 2023. Electric GAAP Gross Margin was
$37.9 million in the six months ended June 30, 2024, a
decrease of $0.1 million compared to the same period in 2023. The
three month period reflects higher rates and customer growth of
$0.7 million, offset by higher depreciation and amortization
expense of $0.7 million. The decrease in the six month period was
driven by higher depreciation and amortization expense of $1.2
million, partially offset by higher rates and customer growth of
$1.1 million.
Electric Adjusted Gross Margin (a non-GAAP
financial measure1) was $24.9 million and $52.0 million in the
three and six months ended June 30, 2024, respectively, increases
of $0.7 million and $1.1 million, respectively, compared to
the same periods in 2023. These increases reflect higher rates and
customer growth.
_________________ 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 GAAP Gross Margin was $20.5 million in the
three months ended June 30, 2024, an increase of $1.1 million
compared to the same period in 2023. Gas GAAP Gross Margin was
$70.6 million in the six months ended June 30, 2024, an
increase of $6.3 million compared to the same period in 2023. The
increase in the three month period was driven by higher rates and
customer growth of $1.6 million, and the favorable effect on gas
sales of $0.4 million from colder early spring weather in 2024,
compared to the same period in 2023, partially offset by higher
depreciation and amortization of $0.9 million. The increase in the
six month period was driven by higher rates and customer growth of
$8.1 million, partially offset by higher depreciation and
amortization of $1.8 million.
Gas Adjusted Gross Margin (a non-GAAP financial
measure1) was $31.3 million and $92.3 million in the three and six
months ended June 30, 2024, respectively, increases of $2.0 million
and $8.1 million, respectively, compared to the same periods in
2023. The increase in the three month period reflects higher rates
and customer growth of $1.6 million, and the favorable effect on
gas sales of $0.4 million from colder early spring weather in 2024,
compared to the same period in 2023. The increase in the six month
period reflects higher rates and customer growth of $8.1
million.
Operation and Maintenance expenses increased $0.3
million and $0.4 million, in the three and six months ended June
30, 2024, respectively, compared to the same periods in 2023. The
increase in the three month period reflects higher labor costs of
$0.6 million, partially offset by lower utility operating costs of
$0.3 million. The increase in the six month period primarily
reflects higher labor costs.
Depreciation and Amortization expense increased
$1.5 million and $2.8 million in the three and six months ended
June 30, 2024, respectively, compared to the same periods in 2023,
reflecting additional depreciation associated with higher levels of
utility plant in service and higher amortization of storm costs and
other deferred costs.
Taxes Other Than Income Taxes increased $0.3
million and $0.7 million in the three and six months ended June 30,
2024, respectively, compared to the same periods in 2023,
reflecting higher local property taxes on higher utility plant in
service and higher payroll taxes.
Interest Expense, Net increased $0.4 million and
$0.6 million in the three and six months ended June 30, 2024,
respectively, compared to the same periods in 2023, primarily
reflecting higher interest expense on short-term borrowings and
higher levels of long-term debt, partially offset by higher
interest income on regulatory assets and other interest income.
Other Expense (Income), Net increased $0.2 million
and $0.5 million, in the three and six months ended June 30, 2024,
respectively, compared to the same periods in 2023, reflecting
higher retirement benefit costs.
Federal and State Income Taxes for the three and
six months ended June 30, 2024 decreased $0.1 million and increased
$1.0 million, respectively, compared with the same periods in 2023.
The increase in the six month period reflects higher pre-tax
earnings in 2024.
At its January 2024, May 2024, and July 2024
meetings, the Unitil Corporation Board of Directors declared
quarterly dividends on the Company’s common stock of $0.425 per
share. These quarterly dividends result in a current effective
annualized dividend rate of $1.70 per share, representing an
unbroken record of quarterly dividend payments since trading began
in Unitil’s common stock.
The Company’s earnings historically have been
seasonal and typically have been 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 second quarter 2024 results on Tuesday, August 6, 2024,
at 2:00 p.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:
|
Christopher Goulding – Investor Relations |
Alec O’Meara – External Affairs |
| Phone: 603-773-6466 |
Phone: 603-773-6404 |
| |
|
| Email: gouldingc@unitil.com |
Email: omeara@unitil.com |
| |
|
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.
| |
|
Three Months Ended June 30, 2024 ($ millions) |
|
|
|
|
|
|
|
|
Electric |
Gas |
Other |
Total |
|
Total Operating Revenue |
$ |
56.4 |
|
$ |
39.3 |
|
$ |
--- |
|
$ |
95.7 |
|
|
Less: Cost of Sales |
|
(31.5 |
) |
|
(8.0 |
) |
|
--- |
|
|
(39.5 |
) |
|
Less: Depreciation and Amortization |
|
(7.1 |
) |
|
(10.8 |
) |
|
(0.2 |
) |
|
(18.1 |
) |
|
GAAP Gross Margin |
|
17.8 |
|
|
20.5 |
|
|
(0.2 |
) |
|
38.1 |
|
|
Depreciation and Amortization |
|
7.1 |
|
|
10.8 |
|
|
0.2 |
|
|
18.1 |
|
|
Adjusted Gross Margin |
$ |
24.9 |
|
$ |
31.3 |
|
$ |
--- |
|
$ |
56.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2023 ($ millions) |
|
|
|
|
|
|
|
|
Electric |
Gas |
Other |
Total |
|
Total Operating Revenue |
$ |
64.5 |
|
$ |
38.9 |
|
$ |
--- |
|
$ |
103.4 |
|
|
Less: Cost of Sales |
|
(40.3 |
) |
|
(9.6 |
) |
|
--- |
|
|
(49.9 |
) |
|
Less: Depreciation and Amortization |
|
(6.4 |
) |
|
(9.9 |
) |
|
(0.3 |
) |
|
(16.6 |
) |
|
GAAP Gross Margin |
|
17.8 |
|
|
19.4 |
|
|
(0.3 |
) |
|
36.9 |
|
|
Depreciation and Amortization |
|
6.4 |
|
|
9.9 |
|
|
0.3 |
|
|
16.6 |
|
|
Adjusted Gross Margin |
$ |
24.2 |
|
$ |
29.3 |
|
$ |
--- |
|
$ |
53.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 ($ millions) |
|
|
|
|
|
|
|
|
Electric |
Gas |
Other |
Total |
|
Total Operating Revenue |
$ |
130.0 |
|
$ |
144.4 |
|
$ |
--- |
|
$ |
274.4 |
|
|
Less: Cost of Sales |
|
(78.0 |
) |
|
(52.1 |
) |
|
--- |
|
|
(130.1 |
) |
|
Less: Depreciation and Amortization |
|
(14.1 |
) |
|
(21.7 |
) |
|
(0.3 |
) |
|
(36.1 |
) |
|
GAAP Gross Margin |
|
37.9 |
|
|
70.6 |
|
|
(0.3 |
) |
|
108.2 |
|
|
Depreciation and Amortization |
|
14.1 |
|
|
21.7 |
|
|
0.3 |
|
|
36.1 |
|
|
Adjusted Gross Margin |
$ |
52.0 |
|
$ |
92.3 |
|
$ |
--- |
|
$ |
144.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 ($ millions) |
|
|
|
|
|
|
|
|
Electric |
Gas |
Other |
Total |
|
Total Operating Revenue |
$ |
172.7 |
|
$ |
150.9 |
|
$ |
--- |
|
$ |
323.6 |
|
|
Less: Cost of Sales |
|
(121.8 |
) |
|
(66.7 |
) |
|
--- |
|
|
(188.5 |
) |
|
Less: Depreciation and Amortization |
|
(12.9 |
) |
|
(19.9 |
) |
|
(0.5 |
) |
|
(33.3 |
) |
|
GAAP Gross Margin |
|
38.0 |
|
|
64.3 |
|
|
(0.5 |
) |
|
101.8 |
|
|
Depreciation and Amortization |
|
12.9 |
|
|
19.9 |
|
|
0.5 |
|
|
33.3 |
|
|
Adjusted Gross Margin |
$ |
50.9 |
|
$ |
84.2 |
|
$ |
--- |
|
$ |
135.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Selected financial data for 2024 and 2023 is
presented in the following table:
|
|
|
Unitil Corporation – Condensed Consolidated Financial
Data |
|
(Millions, except Per Share data)(Unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric kWh Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
140.8 |
|
|
|
133.4 |
|
|
|
5.5 |
% |
|
|
320.7 |
|
|
|
314.7 |
|
|
|
1.9 |
% |
|
Commercial/Industrial |
|
|
221.8 |
|
|
|
214.3 |
|
|
|
3.5 |
% |
|
|
451.8 |
|
|
|
442.8 |
|
|
|
2.0 |
% |
|
Total Electric kWh Sales |
|
|
362.6 |
|
|
|
347.7 |
|
|
|
4.3 |
% |
|
|
772.5 |
|
|
|
757.5 |
|
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Therm Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
8.6 |
|
|
|
8.2 |
|
|
|
4.9 |
% |
|
|
29.8 |
|
|
|
30.1 |
|
|
|
(1.0 |
%) |
|
Commercial/Industrial |
|
|
37.9 |
|
|
|
37.4 |
|
|
|
1.3 |
% |
|
|
106.4 |
|
|
|
106.8 |
|
|
|
(0.4 |
%) |
|
Total Gas Therm Sales |
|
|
46.5 |
|
|
|
45.6 |
|
|
|
2.0 |
% |
|
|
136.2 |
|
|
|
136.9 |
|
|
|
(0.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Revenues |
|
$ |
56.4 |
|
|
$ |
64.5 |
|
|
$ |
(8.1 |
) |
|
$ |
130.0 |
|
|
$ |
172.7 |
|
|
$ |
(42.7 |
) |
|
Cost of Electric Sales |
|
|
31.5 |
|
|
|
40.3 |
|
|
|
(8.8 |
) |
|
|
78.0 |
|
|
|
121.8 |
|
|
|
(43.8 |
) |
|
Electric Adjusted Gross Margin(a non-GAAP
financial
measure1): |
|
|
24.9 |
|
|
|
24.2 |
|
|
|
0.7 |
|
|
|
52.0 |
|
|
|
50.9 |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Revenues |
|
|
39.3 |
|
|
|
38.9 |
|
|
|
0.4 |
|
|
|
144.4 |
|
|
|
150.9 |
|
|
|
(6.5 |
) |
|
Cost of Gas Sales |
|
|
8.0 |
|
|
|
9.6 |
|
|
|
(1.6 |
) |
|
|
52.1 |
|
|
|
66.7 |
|
|
|
(14.6 |
) |
|
Gas Adjusted Gross Margin (a non-GAAP
financial
measure1): |
|
|
31.3 |
|
|
|
29.3 |
|
|
|
2.0 |
|
|
|
92.3 |
|
|
|
84.2 |
|
|
|
8.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted Gross Margin (a non-GAAP
financial
measure1): |
|
|
56.2 |
|
|
|
53.5 |
|
|
|
2.7 |
|
|
|
144.3 |
|
|
|
135.1 |
|
|
|
9.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation & Maintenance Expenses |
|
|
18.6 |
|
|
|
18.3 |
|
|
|
0.3 |
|
|
|
36.8 |
|
|
|
36.4 |
|
|
|
0.4 |
|
|
Depreciation & Amortization |
|
|
18.1 |
|
|
|
16.6 |
|
|
|
1.5 |
|
|
|
36.1 |
|
|
|
33.3 |
|
|
|
2.8 |
|
|
Taxes Other Than Income Taxes |
|
|
7.1 |
|
|
|
6.8 |
|
|
|
0.3 |
|
|
|
14.8 |
|
|
|
14.1 |
|
|
|
0.7 |
|
|
Other (Income) Expense, Net |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.2 |
|
|
|
0.4 |
|
|
|
(0.1 |
) |
|
|
0.5 |
|
|
Interest Expense, Net |
|
|
7.4 |
|
|
|
7.0 |
|
|
|
0.4 |
|
|
|
14.7 |
|
|
|
14.1 |
|
|
|
0.6 |
|
|
Income Before Income Taxes |
|
|
4.9 |
|
|
|
4.9 |
|
|
|
--- |
|
|
|
41.5 |
|
|
|
37.3 |
|
|
|
4.2 |
|
|
Provision for Income Taxes |
|
|
0.6 |
|
|
|
0.7 |
|
|
|
(0.1 |
) |
|
|
10.0 |
|
|
|
9.0 |
|
|
|
1.0 |
|
|
Net Income |
|
$ |
4.3 |
|
|
$ |
4.2 |
|
|
$ |
0.1 |
|
|
$ |
31.5 |
|
|
$ |
28.3 |
|
|
$ |
3.2 |
|
|
Earnings Per Share |
|
$ |
0.27 |
|
|
$ |
0.25 |
|
|
$ |
0.02 |
|
|
$ |
1.96 |
|
|
$ |
1.76 |
|
|
$ |
0.20 |
|
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