CONSOLIDATED FINANCIAL STATEMENTS THE SOUTHERN CONNECTICUT GAS COMPANY

Transcription

1 CONSOLIDATED FINANCIAL STATEMENTS OF THE SOUTHERN CONNECTICUT GAS COMPANY AS OF MARCH 31, 2018 AND DECEMBER 31, 2017 AND FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017 (UNAUDITED)

2 TABLE OF CONTENTS Consolidated Financial Statements: Page Number Consolidated Statement of Income for the three months ended March 31, 2018 and Consolidated Statement of Comprehensive Income for the three months ended March 31, 2018 and Consolidated Balance Sheet as of March 31, 2018 and December 31, Consolidated Statement of Cash Flows for the three months ended March 31, 2018 and Consolidated Statement of Changes in Shareholder s Equity 7 2

3 CONSOLIDATED STATEMENT OF INCOME Three Months Ended March 31, Operating Revenues $ 143,836 $ 136,542 Operating Expenses Natural gas purchased 77,709 70,602 Operation and maintenance 22,577 22,267 Depreciation and amortization 7,155 6,299 Taxes other than income taxes 9,615 8,409 Total Operating Expenses 117, ,577 Operating Income 26,780 28,965 Other Income and (Expense), net Other income 164 2,236 Other (expense) (1,612) (1,782) Total Other Income and (Expense), net (1,448) 454 Interest Expense, net 4,016 3,528 Income Before Income Tax 21,316 25,891 Income Tax 5,092 9,494 Net Income $ 16,224 $ 16,397 Less: Net Income Attributable to Noncontrolling Interest Net Income Attributable to The Southern Connecticut Gas Company $ 15,924 $ 15,747 THE SOUTHERN CONNECTICUT GAS COMPANY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Three Months Ended March 31, Net Income $ 16,224 $ 16,397 Other Comprehensive Income, net of income tax Comprehensive Income 16,224 16,657 Less: Comprehensive Income attributable to Noncontrolling Interest Comprehensive Income Attributable to The Southern Connecticut Gas Company $ 15,924 $ 16,007 UIL Holdings Corporation. 3

4 CONSOLIDATED BALANCE SHEET ASSETS Assets Current Assets Unrestricted cash and temporary cash investments 1,007 March 31, December 31, $ $ 622 Accounts receivable and unbilled revenues, net 92,438 80,972 Accounts receivable from affiliates 2,136 8,992 Notes receivable from affiliates 11,367 4,437 Regulatory assets 16,448 26,240 Gas in storage 14,513 27,693 Materials and supplies 1,800 1,787 Prepayments and other current assets 2,743 1,298 Total Current Assets 142, ,041 Other Investments 10,301 10,584 Property, Plant and Equipment, at cost 935, ,416 Less accumulated depreciation 239, ,646 Net Property, Plant and Equipment in Service 696, ,770 Construction work in progress 14,425 12,323 Total Property, Plant and Equipment 710, ,093 Regulatory Assets 134, ,059 Deferred Income Taxes Regulatory 17,592 10,864 Deferred Charges and Other Assets Goodwill 134, ,931 Other Total Deferred Charges and Other Assets 135, ,061 Total Assets $ 1,151,300 $ 1,155,702 UIL Holdings Corporation. 4

5 CONSOLIDATED BALANCE SHEET LIABILITIES AND CAPITALIZATION Liabilities Current Liabilities Notes payable to affiliates 1,630 March 31, December 31, $ $ 38,898 Current portion of long-term debt 52,079 52,517 Accounts payable and accrued liabilities 46,288 57,533 Accounts payable to affiliates 9,719 9,395 Regulatory liabilities 14,773 9,557 Other current liabilities 9,218 8,208 Interest accrued 2,418 2,201 Taxes accrued 17,548 7,594 Total Current Liabilities 153, ,903 Deferred Income Taxes 41,887 34,239 Regulatory Liabilities 201, ,090 Other Noncurrent Liabilities Pension and other post-retirement 59,839 59,790 Asset retirement obligations 12,244 12,089 Environmental remediation costs 46,877 46,886 Other 8,116 8,943 Total Other Noncurrent Liabilities 127, ,708 Capitalization Long-term debt, net of unamortized premium 170, ,316 Common Stock Equity Common stock 18,761 18,761 Paid-in capital 369, ,737 Retained earnings 43,888 27,266 Accumulated other comprehensive income (loss) Net Common Stock Equity of The Southern Connecticut Gas Company 432, ,462 Noncontrolling interest 24,284 23,984 Total Common Stock Equity 456, ,446 Total Capitalization 626, ,762 Total Liabilities and Capitalization $ 1,151,300 $ 1,155,702 UIL Holdings Corporation 5

6 CONSOLIDATED STATEMENT OF CASH FLOWS Cash Flows From Operating Activities Three Months Ended March 31, Net income $ 16,224 $ 16,397 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 7,203 6,347 Uncollectible expense Deferred income taxes (7,602) 1,574 Pension expense 531 1,278 Regulatory assets/liabilities amortization (764) 5,710 Regulatory assets/liabilities carrying cost Other non-cash items, net Changes in: Accounts receivable and unbilled revenue, net (5,696) (10,311) Gas in storage 13,180 8,800 Accounts payable and accrued liabilities (6,537) 1,795 Taxes accrued/refundable, net 9,954 (1,244) Interest accrued 218 (203) Accrued pension and other post-retirement (482) (325) Regulatory assets/liabilities 32,403 12,033 Other assets (2,106) (2,836) Other liabilities (833) 263 Total Adjustments 40,872 23,809 Net Cash provided by Operating Activities 57,096 40,206 Cash Flows from Investing Activities Plant expenditures including AFUDC debt (12,513) (14,019) Notes receivable from affiliates (6,930) (458) Net Cash used in Investing Activities (19,443) (14,477) Cash Flows from Financing Activities Payment of common stock dividend - (17,000) Notes payable to affililiates (37,268) (8,050) Net Cash used in Financing Activities (37,268) (25,050) Unrestricted Cash and Temporary Cash Investments: Net change for the period Balance at beginning of period Balance at end of period $ 1,007 $ 1,473 Non-cash investing activity: Plant expenditures included in ending accounts payable $ 2,006 $ 1,308 UIL Holdings Corporation 6

7 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY March 31, 2018 (Thousands of Dollars) Accumulated Other Common Stock Paid-in Retained Comprehensive Noncontrolling Shares Amount Capital Earnings Income (Loss) Interest Total Balance as of December 31, ,407,072 $ 18,761 $ 369,737 $ 27,266 $ 698 $ 23,984 $ 440,446 Net income attributable to The Southern Connecticut Gas Company 15,924 15,924 Net income attributable to Noncontrolling interest Change in accounting policy 698 (698) Balance as of March 31, ,407,072 $ 18,761 $ 369,737 $ 43,888 $ - $ 24,284 $ 456,670 whose sole business is ownership of the Southern Connecticut Gas Company (SCG). The Consolidated Financial Statements of SCG include the accounts of all variable interest entities where SCG has been determined to be the UIL Holdings Corporation. 7