Unitil Corporation (NYSE: UTL) (unitil.com) today announced Net
Income of $21.5 million, or $1.35 in Earnings Per Share (EPS), for
the quarter ended March 31, 2022, an increase of $2.6 million in
Net Income, or $0.09 in EPS, compared to the same period in
2021.The Company’s Electric and Gas GAAP Gross Margins were $17.9
million and $43.5 million, respectively, for the first quarter of
2022.
“We are pleased with our strong first quarter financial results,
which reflect the strength in our core utility businesses and our
focus on executing our strategic plan,” said Thomas P. Meissner,
Jr., Unitil’s Chairman and Chief Executive Officer. “We are excited
by the opportunities that robust economic development within our
service territories and the transition to lower carbon fuels
provide for the Company’s long-term success.”
Electric GAAP Gross Margin was $17.9 million in the first
quarter of 2022, an increase of $0.7 million compared to the same
period in 2021. The increase was driven by higher rates and
customer growth of $0.9 million, partially offset by higher
depreciation and amortization expense of $0.2 million.
Electric Adjusted Gross Margin (a non-GAAP financial measure)
was $24.6 million in the first quarter of 2022, an increase of $0.9
million compared to the same period in 2021. This increase reflects
higher rates and customer growth.
Electric kilowatt-hour (kWh) sales increased 1.4% compared to
the first quarter of 2021, reflecting increases of 0.3% and 2.3% in
sales to Residential and Commercial and Industrial (C&I)
customers, respectively. The increases in sales to Residential and
C&I customers reflect customer growth. As of March 31, 2022,
the number of electric customers served increased by approximately
550 over the previous year.
____________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 $43.5 million in the first quarter of
2022, an increase of $3.9 million compared to the same period in
2021. The increase was driven by higher rates of $2.8 million and
the favorable effects of customer growth and colder winter weather
in 2022 of $1.4 million, partially offset by higher depreciation
and amortization of $0.3 million.
Gas Adjusted Gross Margin (a non-GAAP financial measure) was
$52.0 million in the first quarter of 2022, an increase of $4.2
million compared to the same period in 2021, driven by higher rates
of $2.8 million and the favorable effects of customer growth and
colder winter weather in 2022 of $1.4 million.
Gas therm sales increased 3.8% in the first quarter of 2022
compared to the same period in 2021, reflecting increases of 3.0%
and 4.1% in sales to Residential and C&I customers,
respectively. The increase in gas therm sales in the Company’s
service areas reflects colder winter weather in the first quarter
of 2022 compared to the same period in 2021 and customer growth.
Based on weather data collected in the Company’s gas service areas,
on average there were 4.6% more Effective Degree Days (EDD) in the
first quarter of 2022 compared to the same period in 2021, although
1.3% fewer EDD compared to normal. The Company estimates
weather-normalized gas therm sales, excluding decoupled sales,
increased 1.8% in the first quarter of 2022 compared to the same
period in 2021. As of March 31, 2022, the number of gas customers
served increased by approximately 1,000 over the previous year.
Operation and Maintenance (O&M) expenses increased $1.5
million in the three months ended March 31, 2022 compared to the
same period in 2021. The change in O&M expenses reflects higher
labor costs of $1.4 million and higher professional fees of $0.6
million, partially offset by lower utility operating costs of $0.5
million.
Depreciation and Amortization expense increased $0.6 million in
the three months ended March 31, 2022 compared to the same period
in 2021, reflecting additional depreciation associated with higher
utility plant in service.
Taxes Other Than Income Taxes increased $0.6 million in the
three months ended March 31, 2022 compared to the same period in
2021, reflecting higher payroll taxes.
Other Expense (Income), Net decreased $0.6 million in the three
months ended March 31, 2022 compared to the same period in 2021,
reflecting lower retirement benefit costs.
Interest Expense, Net in the three months ended March 31, 2022
decreased $0.5 million compared to the same period in 2021,
reflecting lower interest on long-term debt and higher net interest
income on regulatory assets and liabilities, partially offset by
higher interest rates on higher levels of short-term
borrowings.
Provision for Income Taxes Federal and State Income Taxes
increased $0.9 million for the three months ended March 31, 2022
compared to the same period in 2021, reflecting higher pre-tax
earnings in the current period.
At its January 2022 and April 2022 meetings, the Unitil
Corporation Board of Directors declared quarterly dividends on the
Company’s common stock of $0.39 per share. These quarterly
dividends result in a current effective annualized dividend rate of
$1.56 per share, representing an unbroken record of quarterly
dividend payments since trading began in Unitil’s common stock.
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
first quarter 2022 results on Tuesday, May 3, 2022, 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 107,700 electric customers and 86,600 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: the COVID-19 pandemic, which could adversely
affect the Company’s business, including by disrupting the
Company’s employees’ and contractors’ ability to provide ongoing
services to the Company, by reducing customer demand for
electricity or natural gas, or by reducing the supply of
electricity or natural gas; 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:
Todd Diggins – Investor Relations |
Alec O’Meara – Media Relations |
Phone: 603-773-6504 |
Phone: 603-773-6404 |
|
|
Email: diggins@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 March 31, 2022 ($
millions) |
|
|
|
|
|
Non-Regulated |
|
|
|
Electric |
|
Gas |
|
and Other |
|
Total |
Total Operating Revenue |
$ |
89.2 |
|
|
$ |
103.4 |
|
|
$ |
--- |
|
|
$ |
192.6 |
|
Less: Cost of Sales |
|
(64.6 |
) |
|
|
(51.4 |
) |
|
|
--- |
|
|
|
(116.0 |
) |
Less: Depreciation and
Amortization |
|
(6.7 |
) |
|
|
(8.5 |
) |
|
|
(0.3 |
) |
|
|
(15.5 |
) |
GAAP Gross Margin |
|
17.9 |
|
|
|
43.5 |
|
|
|
(0.3 |
) |
|
|
61.1 |
|
Depreciation and
Amortization |
|
6.7 |
|
|
|
8.5 |
|
|
|
0.3 |
|
|
|
15.5 |
|
Adjusted Gross Margin |
$ |
24.6 |
|
|
$ |
52.0 |
|
|
$ |
--- |
|
|
$ |
76.6 |
|
Three Months Ended March 31, 2021 ($
millions) |
|
|
|
|
|
Non-Regulated |
|
|
|
Electric |
|
Gas |
|
and Other |
|
Total |
Total Operating Revenue |
$ |
60.1 |
|
|
$ |
78.7 |
|
|
$ |
--- |
|
|
$ |
138.8 |
|
Less: Cost of Sales |
|
(36.4 |
) |
|
|
(30.9 |
) |
|
|
--- |
|
|
|
(67.3 |
) |
Less: Depreciation and
Amortization |
|
(6.5 |
) |
|
|
(8.2 |
) |
|
|
(0.2 |
) |
|
|
(14.9 |
) |
GAAP Gross Margin |
|
17.2 |
|
|
|
39.6 |
|
|
|
(0.2 |
) |
|
|
56.6 |
|
Depreciation and
Amortization |
|
6.5 |
|
|
|
8.2 |
|
|
|
0.2 |
|
|
|
14.9 |
|
Adjusted Gross Margin |
$ |
23.7 |
|
|
$ |
47.8 |
|
|
$ |
--- |
|
|
$ |
71.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected financial data for 2022 and 2021 is presented in the
following table:
Unitil Corporation - Condensed Consolidated Financial
Data |
(Millions, except Per Share data) (Unaudited) |
|
|
|
Three Months Ended March 31, |
|
|
2022 |
2021 |
Change |
|
|
|
|
|
|
|
|
Electric kWh Sales: |
|
|
|
|
|
|
|
Residential |
|
|
|
192.8 |
|
|
192.2 |
|
|
0.3 |
% |
Commercial/Industrial |
|
|
|
237.2 |
|
|
231.9 |
|
|
2.3 |
% |
Total Electric kWh Sales |
|
|
|
430.0 |
|
|
424.1 |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
Gas Therm Sales: |
|
|
|
|
|
|
|
Residential |
|
|
|
24.3 |
|
|
23.6 |
|
|
3.0 |
% |
Commercial/Industrial |
|
|
|
74.5 |
|
|
71.6 |
|
|
4.1 |
% |
Total Gas Therm Sales |
|
|
|
98.8 |
|
|
95.2 |
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric
Revenues |
|
|
$ |
89.2 |
|
|
60.1 |
|
$ |
29.1 |
|
Cost of Electric Sales |
|
|
|
64.6 |
|
|
36.4 |
|
|
28.2 |
|
Electric Adjusted Gross Margin (a
non-GAAP financial
measure1): |
|
|
|
24.6 |
|
|
23.7 |
|
|
0.9 |
|
|
|
|
|
|
|
|
|
Gas
Revenues |
|
|
|
103.4 |
|
|
78.7 |
|
|
24.7 |
|
Cost of Gas Sales |
|
|
|
51.4 |
|
|
30.9 |
|
|
20.5 |
|
Gas Adjusted Gross Margin (a non-GAAP
financial
measure1): |
|
|
|
52.0 |
|
|
47.8 |
|
|
4.2 |
|
|
|
|
|
|
|
|
|
Total Adjusted Gross Margin: (a
non-GAAP financial
measure1): |
|
|
|
76.6 |
|
|
71.5 |
|
|
5.1 |
|
|
|
|
|
|
|
|
|
Operation & Maintenance Expenses |
|
|
|
18.5 |
|
|
17.0 |
|
|
1.5 |
|
Depreciation & Amortization |
|
|
|
15.5 |
|
|
14.9 |
|
|
0.6 |
|
Taxes Other Than Income Taxes |
|
|
|
6.8 |
|
|
6.2 |
|
|
0.6 |
|
Other Expense (Income), Net |
|
|
|
0.7 |
|
|
1.3 |
|
|
(0.6 |
) |
Interest Expense, Net |
|
|
|
6.2 |
|
|
6.7 |
|
|
(0.5 |
) |
Income Before Income
Taxes |
|
|
|
28.9 |
|
|
25.4 |
|
|
3.5 |
|
Provision for Income
Taxes |
|
|
|
7.4 |
|
|
6.5 |
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
21.5 |
|
$ |
18.9 |
|
$ |
2.6 |
|
|
|
|
|
|
|
|
|
Earnings Per Share |
|
|
$ |
1.35 |
|
$ |
1.26 |
|
$ |
0.09 |
|
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