Form 8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act 1934

 

Date of Report (Date of earliest event reported): February 4, 2005

 


 

UNITIL CORPORATION

(Exact name of registrant as specified in its charter)

 


 

New Hampshire   1-8858   02-0381573

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(IRS Employer

Identification No.)

 

6 Liberty Lane West, Hampton, New Hampshire   03842-1720
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (603) 772-0775

 

N/A

(Former name or former address, if changed since last report)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 2.02 Results of Operations and Financial Condition

 

On February 4, 2005, Unitil Corporation issued a press release announcing results of operations for the three and twelve month periods ended December 31, 2004. The press release and accompanying financial report are filed with this Form 8-K as Exhibit 99.1.

 

Item 9.01 Financial Statements and Exhibits

 

Financial Statements:

 

None

 

Exhibits:

 

Exhibit 99.1 – Press release dated February 4, 2005.

 

 


SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

    UNITIL CORPORATION
    (Registrant)
Date: February 4, 2005  

/s/ Mark H. Collin


    Mark H. Collin
    Chief Financial Officer
Press Release

Exhibit 99.1

 

LOGO

 

For Immediate Release

 

Contact:    Mark H. Collin
     Phone: 603-773-6612
     Fax: 603-773-6605
     Email: collin@unitil.com

 

Unitil Reports Year-End Earnings

 

Hampton, NH - February 4, 2005: Unitil Corporation (AMEX: UTL) (www.unitil.com) today announced earnings for the year ended December 31, 2004 of $8.0 million, an increase of 3.7% over 2003 earnings of $7.7 million. Earnings per share were $1.45 for 2004 compared with earnings of $1.58 per share for 2003. The earnings per share figures in 2004 reflect approximately 13% more shares outstanding due to the Company’s public offering in the fourth quarter of 2003. Unitil’s annualized dividend payment in 2004 was $1.38 per share, representing an unbroken record of quarterly dividend payments for 20 consecutive years.

 

Total revenue was $214.1 million in 2004, a decrease of $6.5 million or 3.0% compared to 2003. Total revenue includes the recovery of the cost of sales, which are recorded in Operating Expenses as Purchased Electric & Gas and Conservation & Load Management. The cost of sales component of revenue decreased $7.9 million in 2004 compared to 2003. This decrease reflects lower wholesale electricity commodity prices coupled with lower gas unit sales. The Company recovers in its rates the costs of Purchased Electric & Gas and Conservation & Load Management as a pass-through to customers at cost, and therefore, changes in these components of revenues do not affect earnings.

 

Total sales margin (Revenue less Purchased Electric & Gas and Conservation & Load Management) was $66.7 million in 2004, an increase of $1.4 million or 2.2% compared to 2003. This improvement in total sales margin reflects higher kWh unit sales and higher utility distribution rates that were increased in 2004 to reflect the recovery of pension and other postretirement benefit costs. These margin increases were partially offset by lower gas unit sales. In addition, revenue from nonregulated operations showed steady improvement, increasing by $0.4 million in 2004 and positively contributing to margin.

 

Total Operations & Maintenance (O&M) expense in 2004 increased $0.6 million, or 2.6%, compared to 2003. This increase reflects higher pension, insurance and employee medical benefit costs as well as annual increases in salaries and compensation expenses. Also, the higher O&M expense in 2004 reflects additional audit and professional fee expenditures incurred by the Company for its efforts in complying with Section 404 of the Sarbanes-Oxley Act of 2002, which required a comprehensive review, documentation and testing of the Company’s internal controls over financial reporting. These increases were partially offset by lower utility operating and maintenance costs.

 

“Unitil had a solid year in 2004,” said Unitil Chief Executive Officer Robert G. Schoenberger. “We had good earnings growth, strong cash flow and record investments in our utility operations. System reliability and customer satisfaction continue to be well above industry averages. We are also pleased with the continued progress of Usource, our energy brokering business, which achieved a 36% increase in revenue to $1.6 million and is expected to contribute to the Company’s bottom line in 2005.”

 

Electric kilowatt-hour sales (kWh) increased 1.4% in 2004 compared to 2003, reflecting higher sales to both Residential and Commercial/Industrial customers driven by an increase in the number of customers year over year. Sales to residential customers increased 1.1% in 2004 compared to 2003, despite 33% cooler summer weather in 2004. Commercial and industrial sales of electricity increased 1.6% in 2004.


Natural gas firm therm sales decreased 5.9% in 2004 compared to 2003, due to a milder winter heating season in early 2004 and lower gas usage by our largest customers for production processes. Sales to residential customers decreased 7.1% and sales to commercial and industrial customers decreased 4.7% in 2004.

 

Depreciation, Amortization, Taxes and Other increased $1.1 million or 4.1% in 2004 compared to 2003 reflecting higher depreciation due to the increased investment in utility plant additions partially offset by lower amortization due to the accelerated amortization of intangible assets that were written off in 2003. Also, higher income tax expense in 2004 reflects higher pre-tax earnings compared to 2003.

 

Interest Expense, net, decreased $0.8 million, or 10.1% in 2004 compared to last year, principally due to increased interest income from carrying charges earned on higher levels of regulatory assets, and lower interest expense on lower levels of average short-term borrowings.

 

Earnings for the fourth quarter of 2004 were $2.5 million, an increase of 5.2% over the fourth quarter of 2003. For the fourth quarter of 2004, earnings per share were $0.45 compared with earnings of $0.46 per share for the fourth quarter of 2003 reflecting the higher number of shares outstanding in 2004.

 

About Unitil

 

Unitil is a public utility holding company with subsidiaries providing electric service in New Hampshire and electric and gas service in Massachusetts and energy services throughout the Northeast. Its subsidiaries include Unitil Energy Systems, Inc., Fitchburg Gas and Electric Light Company, Unitil Power Corp., Unitil Realty Corp., Unitil Service Corp. and its unregulated business segment Unitil Resources, Inc. Usource L.L.C. is a subsidiary of Unitil Resources, Inc.

 

This press release contains forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. All statements, other than statements of historical fact, are forward-looking statements. Certain factors that could cause the actual results to differ materially from those projected in these forward-looking statements include, but are not limited to the following: variations in weather; changes in the regulatory environment; customers’ preferences on energy sources; general economic conditions; increased competition; fluctuations in supply, demand, transmission capacity and prices for energy commodities; and other uncertainties, all of which are difficult to predict, and many of which are beyond the control of Unitil Corporation.

 

 


The following table details total kilowatt-hour (kWh) sales of electricity for the years 2004 and 2003, by major customer class.

 

     Total Year

      

kWh Sales (000’s)


   2004

   2003

   % Change

 
Residential    652,763    645,711    1.1 %
Commercial/Industrial    1,089,368    1,071,953    1.6 %
    
  
  

Total

   1,742,131    1,717,664    1.4 %
    
  
  

 

The following table details total kilowatt-hour (kWh) sales of electricity for the fourth quarters of 2004 and 2003, by major customer class.

 

     Fourth Quarter

      

kWh Sales (000’s)


   2004

   2003

   % Change

 
Residential    153,743    151,686    1.4 %
Commercial/Industrial    257,990    256,825    0.5 %
    
  
  

Total

   411,733    408,511    0.8 %
    
  
  

 

The following table details total firm therm sales of natural gas for the years 2004 and 2003, by major customer class.

 

     Total Year

      

Firm Therm Sales (000’s)


   2004

   2003

   % Change

 
Residential    11,319    12,181    (7.1 )%
Commercial/Industrial    11,832    12,411    (4.7 )%
    
  
  

Total

   23,151    24,592    (5.9 )%
    
  
  

 

The following table details total firm therm sales of natural gas for the fourth quarters of 2004 and 2003, by major customer class.

 

     Fourth Quarter

      

Firm Therm Sales (000’s)


   2004

   2003

   % Change

 
Residential    2,497    2,727    (8.4 )%
Commercial/Industrial    2,934    2,963    (1.0 )%
    
  
  

Total

   5,431    5,690    (4.6 )%
    
  
  


Unitil Corporation

(Amounts In Thousands, except Shares and Per Share Data)

 

    

Three Months Ended

December 31,


 
     2004

   2003

 

Condensed Financial Data

               
Operating Revenues    $ 55,989    $ 53,331  

Purchased Electric & Gas and Conservation & Load Management

     38,279      36,697  

Operation & Maintenance

     5,569      5,745  

Depreciation, Amortization, Taxes & Other

     7,832      6,835  
    

  


Operating Income

     4,309      4,054  

Interest Expense, Net

     1,716      1,678  

Other

     43      (71 )
    

  


Net Income

     2,550      2,447  

Preferred Dividends

     38      59  
    

  


Earnings Applicable to Common Stock

   $ 2,512    $ 2,388  
    

  


Earnings per Common Share

   $ 0.45    $ 0.46  
    

  


Average Common Shares Outstanding      5,524,835      4,896,329  

 

 


Unitil Corporation

(Amounts In Thousands, except Shares and Per Share Data)

 

    

Twelve Months Ended

December 31,


 
     2004

   2003

 

Condensed Financial Data

               

Operating Revenues

   $ 214,137    $ 220,654  

Purchased Electric & Gas and Conservation & Load Management

     147,429      155,387  

Operation & Maintenance

     23,297      22,706  

Depreciation, Amortization, Taxes & Other

     28,218      27,112  
    

  


Operating Income

     15,193      15,449  

Interest Expense, Net

     6,774      7,531  

Other

     193      (40 )
    

  


Net Income

     8,226      7,958  

Preferred Dividends

     215      236  
    

  


Earnings Applicable to Common Stock

   $ 8,011    $ 7,722  
    

  


Earnings per Common Share

   $ 1.45    $ 1.58  
    

  


Average Common Shares Outstanding

     5,524,835      4,896,329  

 

For more information, visit Unitil at www.unitil.com or call Mark Collin at 603-773-6612.