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Integrys Energy Group Inc. Reports Operating Results (10-Q)

November 06, 2012 | About:

Integrys Energy Group Inc. (TEG) filed Quarterly Report for the period ended 2012-09-30.

Integrys Energy Group Inc has a market cap of $4.19 billion; its shares were traded at around $54.8 with a P/E ratio of 16.5 and P/S ratio of 0.9. The dividend yield of Integrys Energy Group Inc stocks is 5.1%. Integrys Energy Group Inc had an annual average earning growth of 1.3% over the past 10 years.

Highlight of Business Operations:

In the next 12 months, pre-tax losses of $0.6 million and $4.1 million related to discontinued cash flow hedges of natural gas contracts and electric contracts, respectively, are expected to be recognized in earnings as the forecasted transactions occur. These amounts are expected to be offset by the settlement of the related nonderivative customer contracts.

Amortization expense recorded as a component of nonregulated cost of sales in the statements of income was $0.3 million and $0.2 million for the three months ended September 30, 2012, and 2011, respectively. Amortization expense for the nine months ended September 30, 2012, and 2011, was $2.2 million and $0.8 million, respectively.

Costs associated with certain natural gas and electric direct-response advertising campaigns at Integrys Energy Services were capitalized and reported as other long-term assets on the balance sheets. The capitalized costs result in probable future benefits and were incurred to solicit sales to customers who could be shown to have responded specifically to the advertising. Capitalized direct-response advertising costs, net of accumulated amortization, totaled $5.4 million and $3.4 million as of September 30, 2012, and December 31, 2011, respectively. The asset balances for each of the direct-response advertising cost pools are reviewed quarterly for impairment, and there was no impairment during the periods ended September 30, 2012 and 2011.

Our earnings were $213.4 million during the nine months ended September 30, 2012, compared with $188.7 million during the same period in 2011. The $24.7 million increase in earnings was driven by:

· Decoupling for MERC was approved for residential and small commercial and industrial customers by the MPUC on a three-year trial basis. The decoupling mechanism does not cover variations in volumes resulting from changes in customer count compared to rate case levels. It includes an annual 10% cap based on distribution revenues approved in the rate case. Amounts recoverable from or refundable to customers are subject to this cap. The decoupling mechanism becomes effective when final rates are implemented, which is expected to be in December 2012.

Read the The complete Report

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