UniSource Energy Corp. (UNS, Financial) filed Quarterly Report for the period ended 2009-03-31.
UniSource Energy Corporation is a holding company which owns all of the outstanding common stock of Tucson Electric Power Company (TEP) and Millennium Energy Holdings Inc. TEP is an operating public utility engaged in delivering energy services to retail customers primarily in the Tucson Arizona metropolitan area and to wholesale customers throughout the Western United States. Millennium owns all of the outstanding common stock of the following subsidiaries: Nations Energy Corp. MEH Corp. Advanced Energy Technologies Inc. and Southwest Energy Solutions Inc. UniSource Energy Corp. has a market cap of $944 million; its shares were traded at around $26.51 with a P/E ratio of 31.6 and P/S ratio of 0.7. The dividend yield of UniSource Energy Corp. stocks is 4.3%. UniSource Energy Corp. had an annual average earning growth of 5.6% over the past 10 years. GuruFocus rated UniSource Energy Corp. the business predictability rank of 3-star.
Neither UniSource Energy nor any of its subsidiaries have any long-term debt maturities until 2011 when $50 million of unsecured notes mature at UNS Gas. The UniSource Energy and TEP Credit Agreements and the UNS Gas/UNS Electric Revolver also expire in 2011. The 364-day UED $30 million term loan facility is due in March 2010. UniSource Energy is required to make principal payments on an amortizing term loan, totaling $6 million per year. See UniSource Energy Credit Agreement, below.
Proceeds from the issuance of debt were $61 million lower in the first three months of 2009 compared with the same period last year. In March 2009, UED received $30 million of proceeds under a 364-day loan. In March 2008, The Industrial Development Authority of the County of Pima (Pima Authority) issued, for the benefit of TEP, approximately $91 million of tax-exempt industrial development revenue bonds (IDBs).
The UniSource Credit Agreement consists of a $30 million amortizing term loan facility and a $70 million revolving credit facility and matures in August 2011. Principal payments of $1.5 million on the outstanding term loan are due quarterly, with the balance due at maturity. At March 31, 2009, there was $14 million outstanding under the term loan facility and $56 million outstanding under the UniSource Energy revolving credit facility at a weighted average interest rate of 1.79%. We have the option of paying interest on the term loan and on borrowings under the revolving credit facility at adjusted LIBOR plus 1.25% or the sum of (i) the greater of (a) the federal funds rate plus 0.5% or (b) the agent banks reference rate and (ii) 0.25%.
UniSource Energy has outstanding $150 million of 4.50% Convertible Senior Notes due 2035. Each $1,000 of Convertible Senior Notes is convertible into 27.14 shares of our Common Stock at any time, representing a conversion price of approximately $36.85 per share of our Common Stock, subject to adjustments. The closing price of UniSource Energys Common Stock was $26.66 on May 1, 2009.
At March 31, 2009, UniSource Energy and TEP had, for federal and state income tax filing purposes: AMT credit carryforward amounts of $49 million and $35 million, respectively; state net operating loss carryforward amounts of $41 million and $23 million, respectively; and a $4 million Capital Loss carryforward at UniSource Energy.
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UniSource Energy Corporation is a holding company which owns all of the outstanding common stock of Tucson Electric Power Company (TEP) and Millennium Energy Holdings Inc. TEP is an operating public utility engaged in delivering energy services to retail customers primarily in the Tucson Arizona metropolitan area and to wholesale customers throughout the Western United States. Millennium owns all of the outstanding common stock of the following subsidiaries: Nations Energy Corp. MEH Corp. Advanced Energy Technologies Inc. and Southwest Energy Solutions Inc. UniSource Energy Corp. has a market cap of $944 million; its shares were traded at around $26.51 with a P/E ratio of 31.6 and P/S ratio of 0.7. The dividend yield of UniSource Energy Corp. stocks is 4.3%. UniSource Energy Corp. had an annual average earning growth of 5.6% over the past 10 years. GuruFocus rated UniSource Energy Corp. the business predictability rank of 3-star.
Highlight of Business Operations:
TEP, UNS Gas and UNS Electric maintain noncontributory, defined benefit pension plans for substantially all regular employees and certain affiliate employees. The pension assets are invested in a diversified portfolio of domestic and international equity securities, fixed income securities, real estate and alternative investments. As of March 31, 2009, the total value of the pension assets was approximately $125 million, compared with $135 million as of December 31, 2008. Our projected benefit obligation at December 31, 2008 was $230 million. Due to the decline in the total asset value of the plans, 2009 funding requirements are expected to be $18 million, compared with the $10 million annual contribution that was funded in 2008.Neither UniSource Energy nor any of its subsidiaries have any long-term debt maturities until 2011 when $50 million of unsecured notes mature at UNS Gas. The UniSource Energy and TEP Credit Agreements and the UNS Gas/UNS Electric Revolver also expire in 2011. The 364-day UED $30 million term loan facility is due in March 2010. UniSource Energy is required to make principal payments on an amortizing term loan, totaling $6 million per year. See UniSource Energy Credit Agreement, below.
Proceeds from the issuance of debt were $61 million lower in the first three months of 2009 compared with the same period last year. In March 2009, UED received $30 million of proceeds under a 364-day loan. In March 2008, The Industrial Development Authority of the County of Pima (Pima Authority) issued, for the benefit of TEP, approximately $91 million of tax-exempt industrial development revenue bonds (IDBs).
The UniSource Credit Agreement consists of a $30 million amortizing term loan facility and a $70 million revolving credit facility and matures in August 2011. Principal payments of $1.5 million on the outstanding term loan are due quarterly, with the balance due at maturity. At March 31, 2009, there was $14 million outstanding under the term loan facility and $56 million outstanding under the UniSource Energy revolving credit facility at a weighted average interest rate of 1.79%. We have the option of paying interest on the term loan and on borrowings under the revolving credit facility at adjusted LIBOR plus 1.25% or the sum of (i) the greater of (a) the federal funds rate plus 0.5% or (b) the agent banks reference rate and (ii) 0.25%.
UniSource Energy has outstanding $150 million of 4.50% Convertible Senior Notes due 2035. Each $1,000 of Convertible Senior Notes is convertible into 27.14 shares of our Common Stock at any time, representing a conversion price of approximately $36.85 per share of our Common Stock, subject to adjustments. The closing price of UniSource Energys Common Stock was $26.66 on May 1, 2009.
At March 31, 2009, UniSource Energy and TEP had, for federal and state income tax filing purposes: AMT credit carryforward amounts of $49 million and $35 million, respectively; state net operating loss carryforward amounts of $41 million and $23 million, respectively; and a $4 million Capital Loss carryforward at UniSource Energy.
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