UIL Holdings Corporation
157 Church Street
P.O. Box 1564
New Haven, CT 06506-0901
203.499.2812 Fax: 203.499.3626
NEWS RELEASE
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August 6, 2004 Analyst Contact: Susan Allen 203-499-2409
Media Contact: Anita Steeves 203-499-2901
After Hours 203-499-2812
UIL HOLDINGS CORPORATION REPORTS STRONG EARNINGS AIDED BY AN IMPROVING ECONOMY
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AND STRATEGIC ACTIONS
- ---------------------
UIL Holdings Corporation (NYSE: UIL) today reported earnings from
continuing operations for the second quarter of 2004 of $10.4 million, or $0.72
per share, compared to $5.0 million, or $0.35 per share for the second quarter
of 2003. The above amounts exclude both the results of operations, and the gain
on the sale of, American Payment Systems (APS), which are reported separately as
discontinued operations - UIL completed the sale of APS to CheckFree Corporation
(CheckFree) in June 2004. Income from discontinued operations, net of tax,
including the gain on the sale of APS, amounted to $48.4 million, or $3.37 per
share, in the second quarter of 2004, compared to an after tax loss of $0.7
million, or $0.05 per share in 2003. Net income for the second quarter of 2004,
including discontinued operations, was $58.8 million, or $4.09 per share,
compared to earnings of $4.3 million, or $0.30 per share for the same period of
2003.
For the first six months of 2004, UIL reported net income of $16.1
million, or $1.12 per share, from continuing operations, compared to $10.5
million, or $0.74 per share, in the first six months of 2003. Income from
discontinued operations, after tax, for the first six months of 2004, including
the gain on the sale of APS, was $49.8 million, or $3.47 per share, compared to
an after tax loss of $0.9 million, or $0.07 per share, for the same period of
2003. UIL reported net income of $65.9 million, or $4.59 per share, for the
first six months of 2004, including discontinued operations, compared to net
income of $9.6 million, or $0.67 per share, for the first six months of 2003.
"Signs of an improving economy and management's positive strategic
actions have enabled us to report strong results for the second quarter and
first half of 2004. Xcelecom's backlog is up over last year and economic growth
resulted in improved earnings at UI," commented Nathaniel D. Woodson, UIL's
Chief Executive Officer. "We are confident that the recent settlement agreement
allowing the Cross-Sound cable to operate establishes a clear path forward to
permanent operation of the cable. Also, our strategy of growing APS into a
leader in its industry enabled us to sell APS at a substantial gain, which was
recognized in the second quarter".
THE UNITED ILLUMINATING COMPANY (UI)
Net income for UI, the regulated electric utility subsidiary of UIL,
totaled $12.3 million, or $0.85 per share, in the second quarter of 2004,
compared to net income of $8.0 million, or $0.56 per share, in the second
quarter of 2003. A portion of UI's improved results for the second quarter of
2004 is attributable to a settlement by ISO-NE related to a review of the
allocation of New England Power Pool transmission revenues to member companies,
of which UI's share represents $0.08 per share. The second quarter of 2004 also
included a non-recurring gain of $0.05 per share, due to the resolution, in June
of 2004, of tax and other post-closing issues related to UI's sale of Seabrook
Station. UI also benefited from the Department of Public Utility Control's
(DPUC) decision rendered on February 18, 2004 allowing partial recovery of
increased pension and post-retirement benefits expenses, economic growth and
increased kilowatt-hour volume consumption, as compared to the same period of
2003.
For the first six months of 2004, net income for UI was $21.9 million,
or $1.52 per share, compared to net income of $16.5 million, or $1.16 per share,
for the same period in 2003, an increase of $0.36 per share. The results for the
first six months of 2004 were improved as compared to the same period in 2003
due to the factors which affected the second quarter detailed above, as well as
additional factors, including non-recurring gains of $0.10 per share of which
$0.03 per share was attributable to the impact of the final decisions issued by
the DPUC during the first quarter regarding the disposition of proceeds from
UI's investment in its nuclear generating facilities and $0.07 per share was
attributable to a change in the accounting estimate for unbilled revenues
resulting from the implementation of a new integrated software package which
provides a more precise method of calculating unbilled revenue. The improvement
was also due in part, to the DPUC's decision effective February 18, 2004
allowing partial recovery of increased pension and post-retirement benefits
expenses. These favorable variances were partially offset by higher operating
expenses and increases in uncollectible customer accounts over the comparable
period in 2003.
In April 2004, the DPUC reopened the docket related to UI's recovery of
increased pension and post-retirement benefits costs, and at the end of June
2004, issued an "interim draft decision" that, if adopted as a final decision,
"rescinds" the February 18, 2004 decision, which provided for partial recovery
of these expenses. UI's written exceptions to the draft decision assert that the
"interim draft decision" could not lawfully be adopted, without change, as the
final decision. Specifically, UI believes it is unlawful for such final decision
to give effect to any periods prior to June 24, 2004. A final decision was
originally anticipated for August 4, 2004 and, as a result, UIL rescheduled
issuance of this earnings release in order to report the most current status.
Because the DPUC has deferred issuance of the final decision, and UI has filed
its written exceptions, UIL is now releasing its earnings. (For further
discussion of this issue, please refer to UIL's second quarter Form 10-Q filed
with the Securities and Exchange Commission today.)
NON-UTILITY BUSINESSES
UIL serves as the parent company for several non-utility businesses,
including the operating business Xcelecom, Inc. (Xcelecom), and two entities
which indirectly support the operations of their respective passive investments,
United Bridgeport Energy, Inc. (UBE) and United Capital Investments, Inc. (UCI).
UIL completed the sale of its other non-utility, operating business, APS, in
June 2004. Results for APS are reported as discontinued operations.
The non-utility businesses, including unallocated UIL Corporate
expenses, reported a loss from continuing operations of $1.9 million, or $0.13
per share, in the second quarter of 2004 compared to a loss from continuing
operations of $3.0 million, or $0.21 per share in the same period of 2003
principally due to improved results at Xcelecom. Results from discontinued
- 2 -
operations for the second quarter of 2004, including the gain on the sale of
APS, amounted to earnings of $48.4 million, or $3.37 per share, compared to a
loss of $0.7 million, or $0.05 per share in the second quarter of 2003.
For the first six months of 2004, the non-utility businesses, including
unallocated UIL Corporate costs, reported a loss from continuing operations of
$5.8 million, or $0.40 per share, compared to a loss from continuing operations
of $6.0 million, or $0.42 per share in the same period of 2003. Results from
discontinued operations for the first six months of 2004, including the gain on
the sale of APS, amounted to earnings of $49.8 million, or $3.47 per share,
compared to a loss of $0.9 million, or $0.07 per share, in the first six months
of 2003.
XCELECOM, INC.
Xcelecom, a subsidiary of UIL engaged in the specialty electrical
contracting and voice-data-video systems integration business, reported a net
loss of $0.1 million, or $0.01 per share, in the second quarter of 2004,
compared to a net loss of $1.0 million, or $0.07 per share, in the second
quarter of 2003. The improvement in earnings from the prior year was mainly due
to the absence of $0.05 per share of project losses incurred in the prior year.
Xcelecom has also seen increases in sales from all regions of the electrical
contracting business. These increases were partially offset by lagging
performance in the systems integration business.
Xcelecom's backlog of work to be completed as of June 30, 2004 amounted
to $205 million, an increase of $80 million, or 64%, from the same period of
2003. While backlog has grown significantly, Xcelecom continues to experience
pressure on gross margin. Additionally, the composition of this backlog is
weighted towards larger projects, which have historically produced lower margins
than smaller projects.
Xcelecom reported a loss of $0.7 million, or $0.05 per share, for the
first six months of 2004, compared to a loss of $1.3 million, or $0.09 per
share, for the same period of 2003. The improvement in earnings from the prior
year was mainly due to the absence of $0.08 per share of project losses incurred
in the prior year, partially offset by income in the prior year related to the
completion of a large contract. The slow economic recovery in the Northeast, as
well as soft demand for the computer network systems integration services
business, continued to hamper the results for the first six months of 2004 as
compared to the same period of 2003, although there have been signs of improving
conditions in the second quarter of 2004 as evidenced by the level of backlog
attributable to the Northeast.
NON-UTILITY MINORITY INTEREST INVESTMENTS
UNITED BRIDGEPORT ENERGY, INC.
UBE, a subsidiary of UIL that holds a 33 1/3% ownership interest in
Bridgeport Energy, LLC (BE), had a loss of $0.6 million, or $0.04 per share in
the second quarter of 2004, compared to a loss of $0.7 million, or $0.04 per
share in the same quarter of 2003.
For the first six months of 2004, UBE had a loss of $2.2 million, or
$0.15 per share, compared to a loss of $2.2 million, or $0.15 per share in the
first six months of 2003. Lower energy prices and high gas prices continued to
negatively impact results for both the second quarter and first half of 2004.
- 3 -
These impacts were offset by lower plant operating expenses, as well as the
elimination of interest expenses in 2004 as a result of the restructuring of UIL
Holdings' intercompany loan to UBE to 100% equity in January 2004. UIL is
actively reviewing with the majority owner and operator of the plant
alternatives to improve results of BE.
UNITED CAPITAL INVESTMENTS, INC.
UCI is a subsidiary of UIL which holds a number of passive and minority
investments, including a 25% interest in Cross-Sound Cable, LLC (Cross-Sound),
an entity that owns and operates a transmission line connecting Connecticut to
Long Island under the Long Island Sound. During the second quarter of 2004, UCI
lost $0.3 million, or $0.02 per share, compared to a net loss of $0.1 million,
or $0.01 per share, in the second quarter of 2003.
UCI reported a net loss of $0.4 million, or $0.03 per share, for the
first six months of 2004, compared to a net loss of $0.2 million, or $0.02 per
share in the same period of 2003.
The decline in earnings for both the second quarter and first half of
2004 was mainly due to decreased revenues and increased legal fees at
Cross-Sound during the second quarter of 2004, resulting from a May 7, 2004
order by the federal Department of Energy terminating the Emergency Order under
which the Cross-Sound cable had been operating.
On June 24, 2004, a settlement agreement, to which Cross-Sound is a
party, was executed allowing for immediate commercial operation of the
Cross-Sound cable, subject to the satisfaction of certain provisions of the
agreement, including 1) Cross-Sound complying with permit conditions as directed
by the Connecticut Department of Environmental Protection, 2) various parties to
the agreement providing a collective amount of $6.0 million (of which
Cross-Sound's share is $2.0 million) to a research and development fund for the
Long Island Sound, and 3) Northeast Utilities and the Long Island Power
Authority replacing an existing transmission line under the Long Island Sound
(which is unrelated to the Cross-Sound cable). The Cross-Sound cable was
energized on June 28, 2004 as a result of this settlement agreement.
UIL CORPORATE
UIL Holdings retains certain costs at the holding company, or
"corporate," level which are not allocated to the various non-utility
subsidiaries. These costs generally include interest charges, and strategic and
other administrative costs. UIL Corporate incurred a net loss of $0.9 million,
or $0.06 per share in the second quarter of 2004, compared to a net loss of $1.2
million, or $0.09 per share in the same quarter of 2003. For the first six
months of 2003 UIL Corporate incurred a net loss of $2.5 million, or $0.17 per
share, compared to a net loss of $2.3 million, or $0.16 per share, in the first
six months of 2003. Higher administrative costs for both the quarter and first
half of 2004 were partially offset by the realization of deferred tax benefits
of $0.03 per share in the second quarter of 2004.
DISCONTINUED OPERATIONS
On June 22, 2004, UIL completed the sale of APS to CheckFree
Corporation (CheckFree), a leading provider of financial electronic commerce
services and products, pursuant to the purchase agreement entered into between
the parties on December 16, 2003. APS, and its 51% ownership interest in
CellCards of Illinois, LLC (CCI) were classified as discontinued operations in
the fourth quarter of 2003. On February 13, 2004, CCI was sold to an independent
third party for book value, excluding transaction costs.
- 4 -
The results of discontinued operations for both the second quarter and
first six months of 2004 include the gain on the sale of APS. The overall
after-tax gain on the sale, net of all transaction costs incurred was $46
million, or $3.21 per share. However, the after-tax effect of the sale, net of
transaction costs, for the second quarter and first six months of 2004 was $3.24
per share, and $3.22, respectively, as certain transaction costs were incurred
in the fourth quarter of 2003 and the first quarter of 2004. Excluding the gain
on the sale, net income from discontinued operations for the second quarter of
2004 was $1.8 million, or $0.13 per share, compared to a net loss of $0.7
million, or $0.05 per share, in the same period of 2003. Net income from
discontinued operations for the first six months of 2004, excluding the gain on
the sale, was $3.5 million, or $0.25 per share, compared to a loss of $0.9
million, or $0.07 per share, in the first six months of 2003. The improvement
was mainly due to APS' increased Stored Value Card and Non-Contracted Bill
Payment business and the implementation of cost reduction initiatives in 2004.
Also, in accordance with accounting rules, the assets of APS, including the
telephony assets ceased being depreciated when it was categorized as "held for
sale," which resulted in increased earnings of $1.1 million, or $0.08 per share,
and $1.6 million, or $0.11 per share, as compared to the second quarter and
first six months of 2003, respectively.
LOOKING FORWARD
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UIL HOLDINGS' CONSOLIDATED EARNINGS ESTIMATES FOR 2004
UIL Holdings estimates that earnings per share from continuing
operations for 2004 will be $2.40-$2.60 per share. These amounts exclude the
impact of discontinued operations from the sale of APS. This earnings range
estimate is unchanged from the estimate reported in UIL Holdings' Annual Report
on Form 10-K. However, the expected results for some of the components may
change, primarily due to better than expected performance from UI and worse than
expected losses from UBE. The details of each business unit are described below:
UI's previous earnings estimate was $2.75 - $2.85 per share. Management
is awaiting the final decision regarding the reopening of the February 18, 2004
DPUC decision related to pension and post-retirement benefits expenses. The
February 18th decision approved recovery of $4.5 million for 2004 through
reduced amortization expenses, and increased the sharing mechanism such that
100% of Distribution Division earnings in excess of UI's allowed return on
utility common equity of 10.45% would be shared with customers through stranded
cost reductions. A final DPUC decision on this issue in the reopened docket
could potentially eliminate some or all recovery of these costs going forward.
Presently, results are expected to exceed $2.85 per share. Management will
continue to monitor and assess the economic growth experienced through the
second quarter of 2004 and evaluate the impact of a final DPUC decision in order
to update the earnings estimate.
The previous estimate for UBE was a loss of $0.05 - $0.15 per share in
2004. UBE losses may be greater than previously estimated as UBE continues to be
hampered, to an extent greater than anticipated, by high natural gas prices
depressing both margins and sales levels at BE. A relatively mild summer will
further hamper energy and margin sales for BE. Installed Capacity (ICAP)
revenues have been lower than anticipated.
It is expected that the estimated equity in operating losses at UBE
could offset the potential increase in earnings at UI.
UCI was previously expected to break even in 2004. UCI now expects a
small loss, due primarily to the temporary cessation of operations of the
Cross-Sound cable from May 9, 2004 through June 28, 2004.
- 5 -
While Xcelecom has lost $0.05 per share year to date in 2004, its 2004
earnings estimate of $0.05 - $0.15 per share is unchanged from the previous
estimate as a substantial number of projects currently in the backlog are
expected to begin in the second half of 2004.
UIL Corporate's estimate of unallocated expenses are $0.25 - $0.35 per
share, unchanged from the previous estimate.
After resolution of the pension issue by the DPUC, receipt of data of
the effects of summer weather on UI and UBE, and progress on Xcelecom's backlog,
UIL, if necessary, will revise its earnings guidance for those units in the
third quarter of 2004.
UIL Holdings Corporation is the holding company for The United
Illuminating Company and several non-utility businesses, including,
Xcelecom, Inc., United Capital Investments, Inc. and United Bridgeport
Energy, Inc. UI is a New Haven-based regional distribution utility that
provides electricity and energy-related services to more than 320,000
customers in municipalities in the Greater New Haven and Greater
Bridgeport areas. 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.
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). These include statements regarding management's
intentions, plans, beliefs, expectations or forecasts for the future. Such
forward-looking statements are based on the Corporation's expectations and
involve risks and uncertainties; consequently, actual results may differ
materially from those expressed or implied in the statements. Such risks and
uncertainties include, but are not limited to, general economic conditions,
legislative and regulatory changes, changes in demand for electricity and other
products and services, unanticipated weather conditions, 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 Corporation's subsidiaries. The foregoing
and other factors are discussed and should be reviewed in the Corporation's most
recent Annual Report on Form 10-K and other subsequent periodic filings with the
Securities and Exchange Commission. Forward-looking statements included herein
speak only as of the date hereof and the Corporation 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.
The following are summaries of UIL Holdings' unaudited consolidated and
segmented financial information for the second quarter and first six months of
2004:
##
- 6 -
UIL HOLDINGS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
---- ---- ---- ----
OPERATING REVENUES
Utility $ 175,593 $ 156,083 $ 357,436 $ 321,375
Non-utility businesses 85,142 74,538 152,726 143,485
--------------- -------------- ---------------- ---------------
Total Operating Revenues 260,735 230,621 510,162 464,860
--------------- -------------- ---------------- ---------------
OPERATING EXPENSES
Operation
Fuel and energy 81,328 62,366 169,266 128,848
Operation and maintenance 131,127 120,013 247,855 231,417
Depreciation and amortization 16,147 21,606 33,637 48,041
Taxes - other than income taxes 9,941 9,941 20,686 20,829
--------------- -------------- ---------------- ---------------
Total Operating Expenses 238,543 213,926 471,444 429,135
--------------- -------------- ---------------- ---------------
OPERATING INCOME FROM CONTINUING OPERATIONS 22,192 16,695 38,718 35,725
--------------- -------------- ---------------- ---------------
OTHER INCOME AND (DEDUCTIONS), NET 1,431 726 2,831 291
--------------- -------------- ---------------- ---------------
INTEREST CHARGES, NET
Interest on long-term debt 4,952 6,610 10,062 13,144
Other interest, net 768 311 1,490 578
--------------- -------------- ---------------- ---------------
5,720 6,921 11,552 13,722
Amortization of debt expense and redemption premiums 377 316 713 625
--------------- -------------- ---------------- ---------------
Total Interest Charges, net 6,097 7,237 12,265 14,347
--------------- -------------- ---------------- ---------------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 17,526 10,184 29,284 21,669
INCOME TAXES 7,160 5,208 13,226 11,175
--------------- -------------- ---------------- ---------------
INCOME FROM CONTINUING OPERATIONS 10,366 4,976 16,058 10,494
DISCONTINUED OPERATIONS, NET OF TAX 48,365 (675) 49,808 (927)
--------------- -------------- ---------------- ---------------
NET INCOME $ 58,731 $ 4,301 $ 65,866 $ 9,567
=============== ============== ================ ===============
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC 14,359 14,286 14,347 14,283
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED 14,392 14,302 14,386 14,290
EARNINGS PER SHARE OF COMMON STOCK - BASIC:
CONTINUING OPERATIONS $ 0.72 $ 0.35 $ 1.12 $ 0.74
DISCONTINUED OPERATIONS $ 3.37 $ (0.05) $ 3.47 $ (0.07)
--------------- -------------- ---------------- ---------------
NET EARNINGS $ 4.09 $ 0.30 $ 4.59 $ 0.67
=============== ============== ================ ===============
EARNINGS PER SHARE OF COMMON STOCK - DILUTED:
CONTINUING OPERATIONS $ 0.72 $ 0.35 $ 1.12 $ 0.74
DISCONTINUED OPERATIONS $ 3.36 $ (0.05) $ 3.46 $ (0.07)
--------------- -------------- ---------------- ---------------
NET EARNINGS $ 4.08 $ 0.30 $ 4.58 $ 0.67
=============== ============== ================ ===============
CASH DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $ 0.72 $ 0.72 $ 1.44 $ 1.44
=============== ============== ================ ===============
- 7 -
UIL HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
June 30, December 31,
(thousands of dollars) 2004 2003
-----------------------------------------------------------------------------------------------------------------------
ASSETS
Current assets $ 305,556 $ 229,732
Current assets of discontinued operations held for sale - 103,697
Property, plant and equipment, net 546,889 548,794
Regulatory assets 724,767 736,808
Other long-term assets 259,959 261,205
Long-term assets of discontinued operations held for sale - 17,930
------------------ ------------------
Total Assets $ 1,837,171 $ 1,898,166
------------------ ------------------
LIABILITIES AND CAPITALIZATION
Current liabilities $ 209,552 $ 217,361
Current liabilities of discontinued operations held for sale - 94,367
Noncurrent liabilities 169,097 171,455
Noncurrent liabilities of discontinued operations held for sale - 921
Deferred income taxes 347,852 345,676
Regulatory liabilities 79,141 80,152
------------------ ------------------
Total Liabilities 805,642 909,932
Net long-term debt 491,174 495,460
Net common stock equity 540,355 492,774
------------------ ------------------
Total Capitalization 1,031,529 988,234
------------------ ------------------
Total Liabilities and Capitalization $ 1,837,171 $ 1,898,166
------------------ ------------------
- 8 -
UIL HOLDINGS CORPORATION
SEGMENTED CONSOLIDATED INCOME STATEMENT
QUARTER ENDED YEAR TO DATE
JUNE 30, JUNE 30,
(In Millions - Unaudited) 2004 2003 2004 2003
- ------------------------- ---- ---- ---- ----
Operating Revenue
UI from operations $175.6 $156.1 $357.4 $321.4
Xcelecom 85.1 74.6 152.7 143.5
Minority Interest Investment and Other 0.1 (0.1) 0.1 (0.1)
---- ----- ---- -----
TOTAL $260.8 $230.6 $510.2 $464.8
======= ======= ======= ======
FUEL AND ENERGY EXPENSE - UI $81.4 $62.3 $169.3 $128.8
====== ====== ======= ======
OPERATION AND MAINTENANCE EXPENSE
UI $46.2 $44.3 $94.6 $87.3
Xcelecom 83.8 74.6 150.7 142.3
Minority Interest Investment and Other 1.1 1.0 2.5 1.7
---- ---- ---- ----
TOTAL $131.1 $119.9 $247.8 $231.3
======= ======= ======= ======
DEPRECIATION AND AMORTIZATION
UI $7.3 $6.8 $14.8 $13.8
Xcelecom 0.8 0.8 1.7 1.7
---- ---- ---- ----
Subtotal depreciation 8.1 7.6 16.5 15.5
Amortization of regulatory assets (UI) 7.7 13.7 16.5 31.9
Amortization Xcelecom 0.3 0.4 0.6 0.7
---- ---- ---- ----
TOTAL DEPRECIATION AND AMORTIZATION $16.1 $21.7 $33.6 $48.1
====== ====== ====== ======
TAXES - OTHER THAN INCOME TAXES
UI - State gross earnings tax $6.2 $6.1 $12.2 $12.5
UI - other 3.4 3.4 7.4 7.3
Xcelecom 0.4 0.4 1.1 1.0
---- ---- ---- ----
TOTAL $10.0 $9.9 $20.7 $20.8
====== ===== ====== ======
OTHER INCOME (DEDUCTIONS)
UI - other $2.4 $1.3 $6.1 $3.0
Xcelecom 0.2 0.2 0.5 0.4
Minority Interest Investment and Other (1.2) (0.8) (3.8) (3.1)
----- ----- ----- -----
TOTAL $1.4 $0.7 $2.8 $0.3
===== ===== ===== =====
EARNINGS BEFORE INTEREST AND TAXES (EBIT)
UI $25.8 $20.8 $48.7 $42.8
Xcelecom 0.0 (1.4) (0.9) (1.8)
Minority Interest Investment and Other (2.3) (1.9) (6.3) (4.8)
----- ----- ----- -----
TOTAL EBIT FROM CONTINUING OPERATIONS 23.5 17.5 41.5 36.2
Discontinued Operations 81.3 (1.1) 83.6 (1.5)
----- ----- ----- -----
TOTAL EBIT $104.8 $16.4 $125.1 $34.7
======= ====== ======= ======
INTEREST CHARGES
UI $3.8 $5.3 $7.9 $10.5
UI - Amortization: debt expense, redemption premiums 0.4 0.3 0.7 0.6
Xcelecom 0.2 0.2 0.3 0.3
Minority Interest Investment and Other 1.6 1.5 3.3 3.0
---- ---- ---- ----
TOTAL $6.0 $7.3 $12.2 $14.4
===== ===== ====== ======
INCOME TAXES
UI $9.3 $7.2 $18.2 $15.2
Xcelecom (0.1) (0.6) (0.5) (0.8)
Minority Interest Investment and Other (2.1) (1.3) (4.5) (3.1)
----- ----- ----- -----
TOTAL $7.1 $5.3 $13.2 $11.3
===== ===== ====== ======
NET INCOME
UI $12.3 $8.0 $21.9 $16.5
Xcelecom (0.1) (1.0) (0.7) (1.3)
Minority Interest Investment and Other (1.8) (2.0) (5.1) (4.7)
----- ----- ----- -----
SUBTOTAL NET INCOME FROM CONTINUING OPERATIONS 10.4 5.0 16.1 10.5
Discontinued Operations 48.4 (0.7) 49.8 (0.9)
----- ----- ----- -----
TOTAL NET INCOME $58.8 $4.3 $65.9 $9.6
====== ===== ====== =====
- 9 -
BUSINESS SEGMENT SUMMARY INFORMATION
(In Millions, except per share amounts)
UIL HOLDINGS CORPORATION
- -------------------------------------------------------------------------------------------------------------------
QUARTER ENDED QUARTER ENDED YEAR TO DATE YEAR TO DATE
JUN. 30, 2004 JUN. 30, 2003 JUN. 30, 2004 JUN. 30, 2003
------------- ------------- ------------- -------------
Earnings Before Interest and Taxes (EBIT) $ 104.8 $ 16.4 $ 125.1 $ 34.7
Income from Continuing Operations, net of tax $ 10.4 $ 5.0 $ 16.1 $ 10.5
Net Income $ 58.8 $ 4.3 $ 65.9 $ 9.6
Earnings per Share - basic $ 4.09 $ 0.30 $ 4.59 $ 0.67
THE UNITED ILLUMINATING COMPANY
- -------------------------------------------------------------------------------------------------------------------
QUARTER ENDED QUARTER ENDED YEAR TO DATE YEAR TO DATE
JUN. 30, 2004 JUN. 30, 2003 JUN. 30, 2004 JUN. 30, 2003
------------- ------------- ------------- -------------
Earnings Before Interest and Taxes (EBIT) $ 25.8 $ 20.8 $ 48.7 $ 42.8
Net Income $ 12.3 $ 8.0 $ 21.9 $ 16.5
Earnings per Share - basic $ 0.85 $ 0.56 $ 1.52 $ 1.16
NON-UTILITY BUSINESSES
- -------------------------------------------------------------------------------------------------------------------
QUARTER ENDED QUARTER ENDED YEAR TO DATE YEAR TO DATE
XCELECOM JUN. 30, 2004 JUN. 30, 2003 JUN. 30, 2004 JUN. 30, 2003
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Earnings Before Interest and Taxes (EBIT) $ - $ (1.4) $ (0.9) $ (1.8)
Net Income $ (0.1) $ (1.0) $ (0.7) $ (1.3)
Earnings per Share - basic $ (0.01) $ (0.07) $ (0.05) $ (0.09)
MINORITY INTEREST INVESTMENT
AND OTHER
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Earnings Before Interest and Taxes (EBIT) $ (2.3) $ (1.9) $ (6.3) $ (4.8)
Net Income $ (1.8) $ (2.0) $ (5.1) $ (4.7)
Earnings per Share - basic $ (0.12) $ (0.14) $ (0.35) $ (0.33)
DISCONTINUED OPERATIONS
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Earnings Before Interest and Taxes (EBIT) $ 81.3 $ (1.1) $ 83.6 $ (1.5)
Net Income $ 48.4 $ (0.7) $ 49.8 $ (0.9)
Earnings per Share - basic $ 3.37 $ (0.05) $ 3.47 $ (0.07)
TOTAL NON-UTILITY BUSINESSES
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Earnings Before Interest and Taxes (EBIT) $ 79.0 $ (4.4) $ 76.4 $ (8.1)
Net Income $ 46.5 $ (3.7) $ 44.0 $ (6.9)
Earnings per Share - basic $ 3.24 $ (0.26) $ 3.07 $ (0.49)
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