UIL Holdings Corp. (UIL, Financial) filed Quarterly Report for the period ended 2009-03-31.
UIL Holdings Corporation is the holding company for The United Illuminating Company and United Resources. United Illuminating Company is aNew Haven-based regional distribution utility that provides electricity and energy-related services to customers in municipalities in the Greater New Haven and Greater Bridgeport areas.(PR) UIL Holdings Corp. has a market cap of $575 million; its shares were traded at around $22.75 with a P/E ratio of 11.9 and P/S ratio of 0.6. The dividend yield of UIL Holdings Corp. stocks is 7.6%. UIL Holdings Corp. had an annual average earning growth of 3% over the past 5 years.
UI s CTA collection recovers costs that have been reasonably incurred, or will be incurred, to meet its public service obligations and that will likely not otherwise be recoverable in a competitive market. These “stranded costs” include above-market long-term purchased power contract obligations, regulatory asset recovery and above-market investments in power plants. A significant amount of UI s earnings is generated by the authorized return on the equity portion of unamortized stranded costs in the CTA rate base. UI s after-tax earnings attributable to CTA for the three month periods ended March 31, 2009 and 2008 were $1.9 million and $2.4 million, respectively. A significant portion of UI s cash flow from operations is also generated from those earnings and from the recovery of the CTA rate base. Cash flow from operations related to CTA amounted to $10.0 million and $9.6 million, respectively, for the three month periods ended March 31, 2009 and 2008. The CTA rate base has declined from year to year for a number of reasons, including: amortization of stranded costs, the sale of UI s nuclear units, and adjustments made through the annual DPUC review process. The original rate base component of stranded costs, as of January 1, 2000, was $433 million. It has since declined to $170.4 million at March 31, 2009. In the future, UI s CTA earnings will decrease while, based on UI s current projections, cash flow will remain fairly constant until stranded costs are fully amortized. Total CTA cost recovery is currently projected to be completed in 2015, with stranded cost amortizations expected to end in 2013. The date by which stranded costs are fully amortized depends primarily upon the DPUC s future decisions, which could affect future rates of stranded cost amortization.
The unrestricted cash position of UIL Holdings increased by $17.8 million from December 31, 2008 to March 31, 2009, as cash provided by operating and financing activities exceeded cash used in investing activities. Cash used in investing activities during the first quarter of 2009 consisted primarily of capital expenditures of $31.6 million for distribution and transmission infrastructure as well as an additional $8.5 million in funds loaned to GenConn to fund GenConn s construction and other cash needs until permanent financing could be arranged. Cash provided by financing activities during the first quarter of 2009 included $25 million from long-term debt, $17 million from short-term debt, partially offset by the quarterly dividend payments on UIL Holdings common stock totaling $10.9 million and $4.3 million in principal payments on UIL Holdings long-term debt.
UIL Holdings and UI have a revolving credit agreement with a group of banks that extends to December 22, 2011. The borrowing limit under the facility for UI is $175 million, with $50 million of the limit available for UIL Holdings. The facility permits borrowings at fluctuating interest rates determined by reference to Citibank s New York base rate and the Federal Funds Rate (as defined in the facility), and also permits borrowings for fixed periods up to six months as specified by UI and UIL Holdings at fixed interest rates determined by the Eurodollar interbank market in London (LIBOR). The facility also permits the issuance of letters of credit up to $50 million. UI had $160 million outstanding under the facility and UIL Holdings had a standby letter of credit outstanding in the amount of $1 million as of March 31, 2009. The UIL Holdings standby letter of credit reduces the amount of credit available for UI, and, given the current amounts outstanding, UI s borrowings and standby letter of credit outstanding reduce the amount of credit available for UIL Holdings. Available credit, under this facility, at March 31, 2009 for UI and UIL Holdings in the aggregate was $14 million.
UIL Holdings has elected to significantly reduce its planned capital spending for 2009 in response to current conditions in the capital markets. The 2009 capital expenditure projections have been reduced to $75 - $90 million, from the previously disclosed $140-$155 million projection included in UIL Holdings Annual Report on Form 10-K for the fiscal year ended December 31, 2008. The details are as follows:
UIL Holdings earnings from continuing operations were $12.1 million, or $0.48 per share, for the first quarter of 2009, an increase of $5.4 million or $0.22 per share, compared to the first quarter of 2008. The loss from discontinued operations was $0.1 million, with a minimal per share impact, in the first quarters of both 2009 and 2008. Total earnings, including discontinued operations, were $12.0 million, o
Read the The complete ReportUIL is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
UIL Holdings Corporation is the holding company for The United Illuminating Company and United Resources. United Illuminating Company is aNew Haven-based regional distribution utility that provides electricity and energy-related services to customers in municipalities in the Greater New Haven and Greater Bridgeport areas.(PR) UIL Holdings Corp. has a market cap of $575 million; its shares were traded at around $22.75 with a P/E ratio of 11.9 and P/S ratio of 0.6. The dividend yield of UIL Holdings Corp. stocks is 7.6%. UIL Holdings Corp. had an annual average earning growth of 3% over the past 5 years.
Highlight of Business Operations:
On April 27, 2009, UI closed on a bank financing in the amount of $121.5 million with a syndicate of banks (the “Equity Bridge Loan” or “EBL”), the proceeds of which will be used by UI to fund its commitments as a 50% owner of GenConn. GenConn will direct $57 million of such amount to GenConn Devon LLC (GenConn Devon) and $64.5 million to GenConn Middletown LLC (GenConn Middletown), each of which is a wholly owned subsidiary of GenConn, for use in the construction of peaking generation facilities by those entities. UI will draw on this facility as needed to fund its commitments to GenConn as construction progresses. UI does not have any further funding commitments to GenConn at this time and does not guarantee any of GenConn s obligations.UI s CTA collection recovers costs that have been reasonably incurred, or will be incurred, to meet its public service obligations and that will likely not otherwise be recoverable in a competitive market. These “stranded costs” include above-market long-term purchased power contract obligations, regulatory asset recovery and above-market investments in power plants. A significant amount of UI s earnings is generated by the authorized return on the equity portion of unamortized stranded costs in the CTA rate base. UI s after-tax earnings attributable to CTA for the three month periods ended March 31, 2009 and 2008 were $1.9 million and $2.4 million, respectively. A significant portion of UI s cash flow from operations is also generated from those earnings and from the recovery of the CTA rate base. Cash flow from operations related to CTA amounted to $10.0 million and $9.6 million, respectively, for the three month periods ended March 31, 2009 and 2008. The CTA rate base has declined from year to year for a number of reasons, including: amortization of stranded costs, the sale of UI s nuclear units, and adjustments made through the annual DPUC review process. The original rate base component of stranded costs, as of January 1, 2000, was $433 million. It has since declined to $170.4 million at March 31, 2009. In the future, UI s CTA earnings will decrease while, based on UI s current projections, cash flow will remain fairly constant until stranded costs are fully amortized. Total CTA cost recovery is currently projected to be completed in 2015, with stranded cost amortizations expected to end in 2013. The date by which stranded costs are fully amortized depends primarily upon the DPUC s future decisions, which could affect future rates of stranded cost amortization.
The unrestricted cash position of UIL Holdings increased by $17.8 million from December 31, 2008 to March 31, 2009, as cash provided by operating and financing activities exceeded cash used in investing activities. Cash used in investing activities during the first quarter of 2009 consisted primarily of capital expenditures of $31.6 million for distribution and transmission infrastructure as well as an additional $8.5 million in funds loaned to GenConn to fund GenConn s construction and other cash needs until permanent financing could be arranged. Cash provided by financing activities during the first quarter of 2009 included $25 million from long-term debt, $17 million from short-term debt, partially offset by the quarterly dividend payments on UIL Holdings common stock totaling $10.9 million and $4.3 million in principal payments on UIL Holdings long-term debt.
UIL Holdings and UI have a revolving credit agreement with a group of banks that extends to December 22, 2011. The borrowing limit under the facility for UI is $175 million, with $50 million of the limit available for UIL Holdings. The facility permits borrowings at fluctuating interest rates determined by reference to Citibank s New York base rate and the Federal Funds Rate (as defined in the facility), and also permits borrowings for fixed periods up to six months as specified by UI and UIL Holdings at fixed interest rates determined by the Eurodollar interbank market in London (LIBOR). The facility also permits the issuance of letters of credit up to $50 million. UI had $160 million outstanding under the facility and UIL Holdings had a standby letter of credit outstanding in the amount of $1 million as of March 31, 2009. The UIL Holdings standby letter of credit reduces the amount of credit available for UI, and, given the current amounts outstanding, UI s borrowings and standby letter of credit outstanding reduce the amount of credit available for UIL Holdings. Available credit, under this facility, at March 31, 2009 for UI and UIL Holdings in the aggregate was $14 million.
UIL Holdings has elected to significantly reduce its planned capital spending for 2009 in response to current conditions in the capital markets. The 2009 capital expenditure projections have been reduced to $75 - $90 million, from the previously disclosed $140-$155 million projection included in UIL Holdings Annual Report on Form 10-K for the fiscal year ended December 31, 2008. The details are as follows:
UIL Holdings earnings from continuing operations were $12.1 million, or $0.48 per share, for the first quarter of 2009, an increase of $5.4 million or $0.22 per share, compared to the first quarter of 2008. The loss from discontinued operations was $0.1 million, with a minimal per share impact, in the first quarters of both 2009 and 2008. Total earnings, including discontinued operations, were $12.0 million, o
Read the The complete ReportUIL is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
