UIL Holdings Reports 16 Percent Increase in 2000 Earnings; 2001 Earnings Guidance Increased
(EMAILWIRE.COM, January 23, 2001 ) UIL Holdings Corporation (UIL) on January 22 reported that operating earnings amounted to $4.26 per share for 2000, up approximately 16 percent compared to $3.67 per share in 1999. Total earnings for 2000 were $4.32 per share compared to $3.71 per share for 1999. Both the regulated and non-regulated businesses of UIL achieved year-over-year growth.
The United Illuminating Company (UI), the regulated electric utility business unit of UIL Holdings earned $4.25 per share from operations, compared to 1999 earnings of $3.83 per share. Continued emphasis on cost reductions fueled UI's earnings improvement. Growth of the Connecticut economy provided a 2.1% increase in weather-normalized retail sales, although that benefit was offset by milder weather in 2000 compared to 1999. An extension of a refueling outage at the Seabrook nuclear generating unit in the fourth quarter of 2000 decreased earnings by approximately $.33 per share for the year due to increased operation and maintenance costs and reduced sales margin.
"The year 2000 was a great one for UIL. UI has completed its first year of operations under deregulation in Connecticut with flying colors," said UIL's Chairman, President and Chief Executive Officer Nathaniel D. Woodson. "As a result of the steps we took to prepare for deregulation, our shareowners and customers are protected against the price spikes and supply disruption that are being experienced by customers in California," added Woodson. "We had the foresight to enter into a power supply agreement that provides a fixed price for all the power needs of UI's retail electricity customers through the end of 2003," he said.
Customers Realize Benefits of $36 Million
UI's customers will receive benefits totaling $36 million as a result of the company's 2000 performance, $18 million of which will appear as credits on their 2001 electricity bills. Under the company's rate plan, earnings on its equity investment in excess of 11.5 percent are shared with its customers. UI customers received bill credits totaling $19.6 million in 2000, which resulted from earnings above 11.5 percent in 1999.
"Our customers continue to receive the benefits of our strong emphasis on planning and cost control," said Robert L. Fiscus, UIL's Vice Chairman and Chief Financial Officer. "This approach has provided significant benefits to our customers and shareowners and we remain committed to these processes in the future," he said.
Growth Continues at Non-Regulated Businesses
The non-regulated businesses of UIL earned $.01 per share from operations in 2000, an increase of $.17 per share from a 1999 loss of $0.16 per share. Operating business units -- American Payment Systems, Inc. and Xcelecom, Inc. -- improved operating earnings by $.40 per share over last year, which was substantially offset by lower results from United Bridgeport Energy and the financial leveraging, strategic and administrative costs associated with the parent, United Resources, Inc.
"We continue to see growth in our non-regulated businesses -- particularly the operating businesses -- and are building a track record of growth and predictability for the future, " said UIL Vice Chairman Robert L. Fiscus.
Looking Forward
UIL's earnings in 2001 are expected to increase over 2000 levels despite the decline in UI's earnings from increased amortization of regulatory assets that is mandated by the UI rate plan. At this time, the Company is revising its earnings estimates for 2001 to $4.40 - $4.50 per share. "Previous estimates did not factor in any of our strategic plans for 2001. The successful execution of our strategic plans in 2000 gives us the confidence to include earnings that will come from continued execution of our strategic plans in 2001," UIL Vice Chairman Robert L. Fiscus said. The current earnings estimate includes favorable outcomes from the following aspects of the plans:
A decision by the Federal Energy Regulatory Commission to lift the stay of its order regarding Installed Capacity (ICAP) revenues that are included in the earnings of United Bridgeport Energy and the consummation of an agreement to reduce the volatility of the UBE's earnings resulting from operating and fuel price risks.
The continued execution of the Xcelecom strategy of growth through acquisitions of accretive companies and organic growth.
A reduction of operating expenses at the regulated company resulting from reengineering efforts.
The continued growth of the traditional base business segment of APS, which will be more than offset by expenses that will be incurred to improve the future earnings potential for the non-contracted business segment.
The timely return to service of the Seabrook operating plant and continued performance of the plant at historical levels throughout the year.
UI is expected to produce earnings in 2001 of $3.75-$3.85 per share and the non-regulated business units are expected to produce earnings of $.60-$.70 per share. The largest single influence on this forecasted downturn in UI's earnings from 2000 is the additional scheduled non-cash amortization that is mandated under the UI's rate plan.
"The anticipated increase in earnings of the non-regulated business units should more than offset the expected decline in the regulated business earnings, " said UIL Chief Executive Officer Woodson. "The successful implementation of our strategic plans and future acquisitions for the non-regulated businesses should further increase the earnings for the non-regulated businesses and keep us on track for our planned 8-10% average earnings growth over the long-term," he said.
UIL Holdings Corporation is the holding company for The United Illuminating Company and United Resources Inc. UI is a New Haven-based regional distribution utility that provides electricity and energy-related services to more than 314,000 customers in municipalities in the Greater New Haven and Greater Bridgeport areas. URI is the umbrella for UIL Holdings' non-regulated business units, including Xcelecom, Inc., American Payment Systems, United Capital and United Bridgeport Energy. UIL Holdings World Wide Web address is http://www.uil.com and the company is traded on the New York Stock Exchange under the symbol UIL. For detailed information on the company's earnings, please see the investor relations highlights and the earnings release sections on the company's web site.
Editors Note: Full tables can be downloaded in the UIL Holdings Corp. press release on the right
Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby, including, but not limited to general economic conditions, legislative and regulatory changes, demand for electricity and other products and services, changes in accounting principles, policies or guidelines, and other economic, competitive, governmental, and technological factors affecting the operations, markets, products, services and prices of the subsidiaries. Forward-looking statements included herein speak only as of the date hereof and the company undertakes no obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.
------------------------
Produced for UIL Holdings Corporation
CONTACT:
Analyst Contact: Susan Allen
203-499-2409
Media Contact: Sandra Ahearn
203-499-2175
After Hours
203-499-2812
------------------------
The United Illuminating Company (UI), the regulated electric utility business unit of UIL Holdings earned $4.25 per share from operations, compared to 1999 earnings of $3.83 per share. Continued emphasis on cost reductions fueled UI's earnings improvement. Growth of the Connecticut economy provided a 2.1% increase in weather-normalized retail sales, although that benefit was offset by milder weather in 2000 compared to 1999. An extension of a refueling outage at the Seabrook nuclear generating unit in the fourth quarter of 2000 decreased earnings by approximately $.33 per share for the year due to increased operation and maintenance costs and reduced sales margin.
"The year 2000 was a great one for UIL. UI has completed its first year of operations under deregulation in Connecticut with flying colors," said UIL's Chairman, President and Chief Executive Officer Nathaniel D. Woodson. "As a result of the steps we took to prepare for deregulation, our shareowners and customers are protected against the price spikes and supply disruption that are being experienced by customers in California," added Woodson. "We had the foresight to enter into a power supply agreement that provides a fixed price for all the power needs of UI's retail electricity customers through the end of 2003," he said.
Customers Realize Benefits of $36 Million
UI's customers will receive benefits totaling $36 million as a result of the company's 2000 performance, $18 million of which will appear as credits on their 2001 electricity bills. Under the company's rate plan, earnings on its equity investment in excess of 11.5 percent are shared with its customers. UI customers received bill credits totaling $19.6 million in 2000, which resulted from earnings above 11.5 percent in 1999.
"Our customers continue to receive the benefits of our strong emphasis on planning and cost control," said Robert L. Fiscus, UIL's Vice Chairman and Chief Financial Officer. "This approach has provided significant benefits to our customers and shareowners and we remain committed to these processes in the future," he said.
Growth Continues at Non-Regulated Businesses
The non-regulated businesses of UIL earned $.01 per share from operations in 2000, an increase of $.17 per share from a 1999 loss of $0.16 per share. Operating business units -- American Payment Systems, Inc. and Xcelecom, Inc. -- improved operating earnings by $.40 per share over last year, which was substantially offset by lower results from United Bridgeport Energy and the financial leveraging, strategic and administrative costs associated with the parent, United Resources, Inc.
"We continue to see growth in our non-regulated businesses -- particularly the operating businesses -- and are building a track record of growth and predictability for the future, " said UIL Vice Chairman Robert L. Fiscus.
Looking Forward
UIL's earnings in 2001 are expected to increase over 2000 levels despite the decline in UI's earnings from increased amortization of regulatory assets that is mandated by the UI rate plan. At this time, the Company is revising its earnings estimates for 2001 to $4.40 - $4.50 per share. "Previous estimates did not factor in any of our strategic plans for 2001. The successful execution of our strategic plans in 2000 gives us the confidence to include earnings that will come from continued execution of our strategic plans in 2001," UIL Vice Chairman Robert L. Fiscus said. The current earnings estimate includes favorable outcomes from the following aspects of the plans:
A decision by the Federal Energy Regulatory Commission to lift the stay of its order regarding Installed Capacity (ICAP) revenues that are included in the earnings of United Bridgeport Energy and the consummation of an agreement to reduce the volatility of the UBE's earnings resulting from operating and fuel price risks.
The continued execution of the Xcelecom strategy of growth through acquisitions of accretive companies and organic growth.
A reduction of operating expenses at the regulated company resulting from reengineering efforts.
The continued growth of the traditional base business segment of APS, which will be more than offset by expenses that will be incurred to improve the future earnings potential for the non-contracted business segment.
The timely return to service of the Seabrook operating plant and continued performance of the plant at historical levels throughout the year.
UI is expected to produce earnings in 2001 of $3.75-$3.85 per share and the non-regulated business units are expected to produce earnings of $.60-$.70 per share. The largest single influence on this forecasted downturn in UI's earnings from 2000 is the additional scheduled non-cash amortization that is mandated under the UI's rate plan.
"The anticipated increase in earnings of the non-regulated business units should more than offset the expected decline in the regulated business earnings, " said UIL Chief Executive Officer Woodson. "The successful implementation of our strategic plans and future acquisitions for the non-regulated businesses should further increase the earnings for the non-regulated businesses and keep us on track for our planned 8-10% average earnings growth over the long-term," he said.
UIL Holdings Corporation is the holding company for The United Illuminating Company and United Resources Inc. UI is a New Haven-based regional distribution utility that provides electricity and energy-related services to more than 314,000 customers in municipalities in the Greater New Haven and Greater Bridgeport areas. URI is the umbrella for UIL Holdings' non-regulated business units, including Xcelecom, Inc., American Payment Systems, United Capital and United Bridgeport Energy. UIL Holdings World Wide Web address is http://www.uil.com and the company is traded on the New York Stock Exchange under the symbol UIL. For detailed information on the company's earnings, please see the investor relations highlights and the earnings release sections on the company's web site.
Editors Note: Full tables can be downloaded in the UIL Holdings Corp. press release on the right
Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby, including, but not limited to general economic conditions, legislative and regulatory changes, demand for electricity and other products and services, changes in accounting principles, policies or guidelines, and other economic, competitive, governmental, and technological factors affecting the operations, markets, products, services and prices of the subsidiaries. Forward-looking statements included herein speak only as of the date hereof and the company undertakes no obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.
------------------------
Produced for UIL Holdings Corporation
CONTACT:
Analyst Contact: Susan Allen
203-499-2409
Media Contact: Sandra Ahearn
203-499-2175
After Hours
203-499-2812
------------------------
Contact Information:
UIL Holdings Corporation
Joseph Nchor
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UIL Holdings Corporation
Joseph Nchor
Tel:
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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