Uil Co. Ltd. · KRX:049520
Uil — Q3 2013 Earnings Presentation
18 slides from Uil's earnings presentation, Nov 4, 2013
Slide 1: 3Q 2013 Earnings Presentation
3Q 2013 Earnings Presentation November 5, 2013 Exhibit 99.2
Slide 2: Note to Investors
Note to Investors James Torgerson President and Chief Executive Officer Richard Nicholas Executive Vice President and Chief Financial Officer * Certain statements contained herein, regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities L
Slide 3: 3Q & YTD '13 Earnings Summary
3Q & YTD ‘13 Earnings Summary Consolidated earnings of $5.1M, or $0.10 per diluted share, and $74.9M, or $1.46 per diluted share, in 3Q & YTD ’13, respectively Includes regulatory disallowances and other adjustments of $10.5M, after-tax, or $0.21 per diluted share Excluding the regulatory disallowan
Slide 4: Electric Distribution Rate Case
Electric Distribution Rate Case Final decision issued from PURA on 8/14/13 Revenue - $20M year 1, $25.8M year 2 9.15% ROE, 50% equity, 50% debt capital structure Continuation of existing decoupling mechanism Recovery of $36.8M of storm-related costs over 10 years; establishment of $2M per year storm
Slide 5: CNG Rate Case
CNG Rate Case Filed with PURA on 7/8/13 Highlights of Request Revenue request $19.7M for Rate Year ending 12/31/14 10.25% ROE (vs. current allowed ROE of 9.41%) 52.52% equity, 47.48% preferred stock plus total debt capital structure Introduction of decoupling mechanism on a revenue-per-customer basi
Slide 6: Other Regulatory Updates
Other Regulatory Updates Renewable Connections Program On 10/23/13, PURA approved the settlement agreement Two projects totaling 7.8MW; solar and fuel cell projects Base ROE: UI distribution ROE + 25 basis points Retain a percentage of market revenues, expected to be equivalent to 25 basis points Ge
Slide 7: Gas Conversions
Gas Conversions Converted 12,581* households and businesses - 103% of this year’s target of 12,200 conversions Successfully completed 32,061* conversions relative to 2011-2013 target of 30,000-35,000 conversions 2014-2016 target is to convert ~55,000 households and businesses * * As of 10/23/13
Slide 8: Gas Sales
Gas Sales The following chart shows the normalized usage per customer (NUPC) since ’09 –shows uptick since year-end ’12 Increase in gross margin for 3Q & YTD ‘13 compared to the same periods in ‘12 of $0.3M and $2.5M, respectively, due to improved NUPC *
Slide 9: FERC ROE Complaint
FERC ROE Complaint “206” complaint filed at the FERC claiming that current approved base ROE on transmission investments of 11.14% is not just and reasonable ROE methodology updates were filed in Spring ‘13 State complainants - 8.90% Municipal utilities in MA - 8.50% New England TOs - 11.14% FERC tr
Slide 10: Financial Results by Segment
3Q & YTD ‘13 Financial Results by Segment * * The final decision in UI’s distribution rate case disallowed approximately $22M related to deferred storm costs and capital costs related to UI’s recently constructed administrative and operations buildings. As a result of these disallowances and other a
Slide 11: Financial Results - Details: Consolidated UIL earnings
* 3Q & YTD ‘13 Financial Results - Details Consolidated UIL earnings 3Q & YTD ’13 consolidated earnings of $5.1M and $74.9M, respectively Includes regulatory disallowances and other adjustments of $10.5M, after-tax The following discussion on Consolidated UIL earnings excludes the impact of the regu
Slide 12: Financial Results - Details: Electric distribution, CTA, GenConn & Other
* 3Q & YTD ‘13 Financial Results - Details Electric distribution, CTA, GenConn & Other 3Q & YTD ‘13 earnings of $7.1M and $33.7M, respectively Includes regulatory disallowances and other adjustments of $10.5M, after-tax The following discussion of Electric distribution, CTA, GenConn & Other excludes
Slide 13: Financial Results - Details: Electric transmission and gas distribution
3Q & YTD ‘13 Financial Results - Details Electric transmission 3Q ‘13 earnings of $7.1M, or $0.14 per diluted share, a decrease of $1.1M, or $0.02 per diluted share, compared to 3Q ’12 -- decrease primarily due to: A charge of $1.5M, after-tax, recorded in 3Q ‘13, discussed earlier Partially offset
Slide 14: Financial Results - Details: Gas distribution (cont.)
3Q & YTD ‘13 Financial Results - Details Gas distribution (cont.) YTD ’13 weighted average heating degree days compared to normal & the same period in ‘12 Impact of weather, normalized usage per customer and customer growth – 3Q & YTD ‘13 compared to the same periods in ’12 Preliminary average ROEs
Slide 15: 3Q & YTD '13 Financial Results - Corporate Costs
3Q & YTD ’13 Financial Results – Details Corporate Costs decreased by $0.6M and $2.0M for the 3Q & YTD ‘13, respectively, compared to the same periods in ’12, primarily due to tax benefits associated with unitary filing requirements for Massachusetts state income taxes *
Slide 16: Debt Maturities & Liquidity
Debt Maturities & Liquidity Available Liquidity Debt Maturities ($M) Amounts may not add due to rounding * Refinanced as of 10/25/13 ** Remarket $27.5M of UI tax exempt bonds ** * Common Stock/Debt Issuances On 9/26/13, UIL’s public offering of 5,000,000 shares of common stock was priced at $37.25 S
Slide 17: Affirming '13 Consolidated Earnings Guidance
Affirming ‘13 Consolidated Earnings Guidance * Major Assumptions: Reflects the issuance of 5,750,000 shares of common stock, which closed on October 2nd Includes disallowances and other adjustments related to the final decision in the electric distribution rate proceeding Includes YTD results Normal
Slide 18: UIL Holdings Corporation Q&A
&A Q UIL HOLDINGS CORPORATION BIL