Historical Financial Report

Transcription

1 2015 Historical Financial Report

2 Forward-Looking Statements This report contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of These forward-looking statements include statements regarding Unitil Corporation s ( Unitil ) financial condition, results of operations, capital expenditures, business strategy, regulatory strategy, market opportunities, and other plans and objectives. In some cases, forward-looking statements can be identified by terminology such as may, will, should, expects, plans, anticipates, believes, estimates, predicts, potential or continue, the negative of such terms, or other comparable terminology. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that could cause the actual results to differ materially from those set forth in the forwardlooking statements. Those risks and uncertainties include: Unitil s regulatory environment (including regulations relating to climate change, greenhouse gas emissions and other environmental matters); fluctuations in the supply of, demand for, and the prices of energy commodities and transmission 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; Unitil s ability to retain its existing customers and attract new customers; Unitil s energy brokering customers performance and energy used under multiyear energy brokering contracts; increased competition; integrity and security of operational and information systems; publicity and reputational risks; and other risks detailed in Unitil's filings with the Securities and Exchange Commission, including those appearing under the caption "Risk Factors" in Unitil's Annual Report on Form 10-K for the year ended December 31, Readers should not place undue reliance on any forward looking statements, which speak only as of the date they are made. Except as may be required by law, Unitil undertakes no obligation to update any forward-looking statements to reflect any change in Unitil s expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

3 Introductory Note This 2015 Historical Financial Report highlights information contained or incorporated by reference in our Annual Report on Form 10-K for the year ended December 31, 2015, which is available (free of charge) on the Investor section of our website at This report may not contain all of the information that may be important to you. You should read this report together with the more detailed information included in our Annual Report on Form 10-K for the year ended December 31, 2015 Profile We are a public utility holding company whose principal business is the local distribution of electricity and natural gas throughout our service areas in the states of New Hampshire, Massachusetts and Maine. We are subject to comprehensive regulation by federal and state utility regulatory authorities. We are the parent company of three distribution utilities: Unitil Energy Systems, Inc., which provides electric service in the southeastern seacoast and state capital regions of New Hampshire, including the capital city of Concord, New Hampshire. Fitchburg Gas and Electric Light Company, which provides both electric and natural gas service in the greater Fitchburg area of north central Massachusetts. Northern Utilities, Inc., which provides natural gas service in southeastern New Hampshire, and portions of southern and central Maine, including the city of Portland, which is the largest city in northern New England. In addition, we are the parent company of Granite State Gas Transmission, Inc., an interstate natural gas transmission pipeline company that provides interstate natural gas pipeline access and transportation services to Northern Utilities, Inc. and third party gas marketers in New Hampshire and Maine. Our non-regulated operations are conducted through Usource L.L.C. ( Usource ). Usource provides energy brokering and advisory services to large commercial and industrial customers primarily in the northeastern United States.

4 Service Areas

5 Consolidated Statement of Income Unitil Corporation (, except per share data) Operating Revenues: Gas $ $ $ Electric Other Total Operating Revenues $ $ $ Operating Expenses: Cost of Gas Sales $ $ $ 85.2 Cost of Electric Sales Operation and Maintenance Depreciation & Amortization Taxes Other Than Income Taxes Total Operating Expenses $ $ $ Operating Income $ 63.1 $ 60.0 $ 53.5 Interest Expense, net $ 21.9 $ 20.9 $ 18.8 Other (Income) Expense, net (0.5) Income Before Income Taxes $ 41.7 $ 38.7 $ 34.3 Income Taxes $ 15.4 $ 14.0 $ 12.7 Net Income Applicable to Common Shares $ 26.3 $ 24.7 $ 21.6 Earnings Per Common Share - Basic and Diluted $ 1.89 $ 1.79 $ 1.57 Weighted Average Common Shares Outstanding - (Basic and Diluted) Dividends Paid Per Share $ 1.40 $ 1.38 $ 1.38

6 Total Operating Revenue $500.0 $426.8 $425.8 $400.0 $366.9 $300.0 $200.0 $100.0 $0.0 Net Income to Common $30.0 $24.0 $26.3 $24.7 $21.6 $18.0 $12.0 $6.0 $0.0

7 Consolidated Balance Sheet Unitil Corporation () Assets Current Assets: Cash and Cash Equivalents $ 8.7 $ 8.4 Accounts Receivable, net Accrued revenue Exchange Gas Receivable Gas Inventory Deferred Income Taxes Prepayments and Other Total Current Assets Utility Plant: Gas Electric Common Construction Work in Progress Utility Plant 1, Less: Accumulated Depreciation Net utility plant Other Noncurrent Assets: Regulatory Assets Other Assets Total Other Noncurrent Assets Total Assets 1, ,000.2

8 Consolidated Balance Sheet Unitil Corporation () Liabilities and Capitalization Current Liabilities: Accounts payable $ 33.3 $ 44.2 Short-Term Debt Long-Term Debt, Current Portion Regulatory Liabilities Energy Supply Obligations Environmental Obligations Capital Lease Obligations Deferred Income Taxes Taxes Payable Other Current Liabilities Total Current Liabilities Noncurrent Liabilities: Deferred Income Taxes Cost of Removal Obligations Retirement Benefit Obligations Regulatory Liabilities Capital Lease Obligations Environmental Obligations Other Noncurrent Liabilities Total Noncurrent Liabilities Capitalization: Long-Term Debt, Less Current Portion Stockholders' Equity: Common Equity (Outstanding 13,991,430 and 13,916,026 Shares) Retained Earnings Total Common Stock Equity Preferred Stock Total Stockholders' Equity Total Capitalization Total Liabilities and Capitalization 1, ,000.2

9 Net Utility Plant $1,000.0 $800.0 $808.9 $733.7 $600.0 $400.0 $200.0 $ Total Assets $1,250.0 $1,000.0 $1,046.4 $1,000.2 $750.0 $500.0 $250.0 $

10 Consolidated Statement of Cash Flows Unitil Corporation () Operating Activities: Net Income $ 26.3 $ 24.7 $ 21.6 Adjustments to Reconcile Net Income to Cash Provided by Operating Activities Depreciation and Amortization Deferred Taxes Provision Changes in Working Capital Items: Accounts Receivable 10.9 (8.5) (4.5) Accrued Revenue Regulatory Liabilities 6.9 (1.0) 2.9 Taxes Refundable / Payable 2.3 (0.1) (0.5) Exchange Gas Receivable 3.9 (4.2) (1.4) Accounts Payable (10.9) Other Changes in Working Capital Items (5.4) 6.6 (2.9) Deferred Regulatory and Other Charges 9.2 (1.6) 15.0 Other, net 4.2 (2.6) 3.1 Cash Provided by Operating Activities Investing Activities: Property, Plant and Equipment Additions (103.9) (92.6) (89.5) Cash Used In Investing Activities (103.9) (92.6) (89.5) Financing Activities: Proceeds from (Repayment of) Short-Term Debt, net 12.7 (30.9) 10.8 Issuance of Long-Term Debt Repayment of Long-Term Debt (7.4) (4.4) (0.5) Increase / (Decrease) in Capital Lease Obligations (0.7) Net (Decrease) Increase in Exchange Gas Financing (4.0) Dividends Paid (19.6) (19.2) (19.1) Proceeds from Issuance of Common Stock Cash (Used In) Provided by Financing Activities (10.9) 7.6 (7.2) Net Increase (Decrease) in Cash 0.3 (1.0) (0.4) Cash at Beginning of Year Cash at End of Year $ 8.7 $ 8.4 $ 9.4 Supplemental Information: Interest Paid $ 22.3 $ 20.8 $ 20.8 Income Taxes Paid $ 1.8 $ 1.2 $ 0.8 Payments on Capital Leases $ 1.1 $ 0.6 $ 0.7 Capital Expenditures Included in Accounts Payable $ 0.4 $ 0.3 $ 0.7

11 Cash Flow From Operations $150.0 $120.0 $115.1 $96.3 $90.0 $60.0 $84.0 $30.0 $0.0 $150.0 Property, Plant and Equipment Additions $120.0 $103.9 $90.0 $60.0 $92.6 $89.5 $30.0 $0.0

12 Segmented Financial Information Unitil Corporation () Non- Gas Electric Regulated Other Total Year Ended December 31, 2015 Revenues $ $ $ 6.2 $ - $ Interest Income Interest Expense Depreciation & Amortization Expense Income Tax Expense (Benefit) (1.1) 15.4 Segment Profit Segment Assets ,046.4 Capital Expenditures Year Ended December 31, 2014 Revenues $ $ $ 5.7 $ - $ Interest Income Interest Expense Depreciation & Amortization Expense Income Tax Expense (Benefit) (1.9) 14.0 Segment Profit Segment Assets ,000.2 Capital Expenditures Year Ended December 31, 2013 Revenues $ $ $ 5.8 $ - $ Interest Income Interest Expense Depreciation & Amortization Expense Income Tax Expense (Benefit) (0.7) 12.7 Segment Profit Segment Assets Capital Expenditures

13 Revenue Overview $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 Natural Gas Electric Non-Regulated Net Income Overview $30.0 $24.0 $18.0 $12.0 $6.0 $0.0 Natural Gas Electric Non-Regulated Other

14 Capital Expenditures Overview $125.0 $100.0 $75.0 $50.0 $25.0 $0.0 Natural Gas Electric Other Assets Overview $1,250.0 $1,000.0 $750.0 $500.0 $250.0 $0.0 Natural Gas Electric Other

15 Gas Therm Sales, Revenues, Margin and Customers Unitil Corporation (, except customers) Therm Sales Residential Commercial & Industrial Total Therm Sales Operating Revenues & Sales Margin Gas Operating Revenue: Residential $ 78.5 $ 80.0 $ 68.5 Commercial & Industrial Total Gas Operating Revenue $ $ $ Cost of Gas Sales: Gas Sales Margin $ $ 97.4 $ 85.2 Year-End Customers Served Residential 61,270 60,236 57,616 Commercial & Industrial 17,479 17,624 18,304 Total Gas Customers 78,749 77,860 75,920 Electric kwh Sales, Revenues, Margin and Customers Unitil Corporation (, except customers) kwh Sales Residential Commercial & Industrial Total kwh Sales 1, , ,668.3 Operating Revenues & Sales Margin Electric Operating Revenue: Residential $ $ $ Commercial & Industrial Total Electric Operating Revenue $ $ $ Cost of Electric Sales: Electric Sales Margin $ 85.5 $ 80.8 $ 76.2 Year-End Customers Served Residential 88,444 88,012 87,692 Commercial & Industrial 14,825 14,740 14,701 Total Electric Customers 103, , ,393

16 300 Gas Therm Sales Gas Operating Revenue ,000 Gas Customers 80,000 60,000 40,000 20, Residential Commercial & Industrial

17 2,000 Electric kwh Sales 1,600 1, Electric Operating Revenue ,000 Electric Customers 100,000 75,000 50,000 25,000 0 Residential Commercial & Industrial

18 Capitalization and Financial Ratios Unitil Corporation Capitalization - Common Stock $ $ Preferred Stock Long-term Debt Total Capitalization $ $ Short-term Debt Total Capitalization Including Short-term Debt $ $ Components of Total Capitalization Including Short-term Debt Common Stock 45% 43% Preferred Stock 0% 0% Long-term Debt 49% 52% Short-term Debt 7% 5% Total 100% 100% Debt-to-Capitalization Excluding Short-term Debt 52% 55% Including Short-term Debt 55% 57%

19 $35 Long-Term Debt Maturity $30 $25 $20 $15 $10 $5 $ Components of Total Capitalization 100% 80% 60% 40% 20% 0% Common Stock Preferred Stock Long-term Debt Short-term Debt

20 Comparative Five-Year Total Returns $250 Value of $100 invested after 5 years Unitil $199 Peer Group* $169 S&P 500 $181 $200 $150 $100 $50 $ *Peer Group comprised of the S&P 500 Utilities Index

21 Officers of the Corporation Robert G. Schoenberger Chairman of the Board, Chief Executive Officer and President Mark H. Collin Senior Vice President, Chief Financial Officer and Treasurer Thomas P. Meissner, Jr. Senior Vice President and Chief Operating Officer Todd R. Black Senior Vice President, Unitil Service Laurence M. Brock Controller and Chief Accounting Officer George E. Long, Jr. Vice President, Unitil Service Sandra L. Whitney Corporate Secretary Contact Information Media Alexander O Meara (603) OMeara@unitil.com Institutional Investors David Chong (603) Chong@unitil.com Shareholders Sandra Whitney (603) Whitney@unitil.com This Report is not a representation or prospectus in regard to the Company s securities and is not furnished in connection with any proposed sale of offer to sell or buy any stock or securities