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Chesapeake Utilities Corporation Reports Higher Third Quarter Results
For the nine months ended
"Our higher results for the third quarter and year-to-date are the current harvest of our continued growth in productive assets, which now exceed
A more detailed discussion and analysis of the Company's results for each segment is provided in the following pages.
Comparative Results for the Quarters Ended
The Company's operating income for the three months ended
Regulated Energy Segment
Operating income for the Regulated Energy segment increased by
$1.7 million generated from natural gas service expansions completed in 2014 and 2015;$1.1 million generated by additional Gas Reliability Infrastructure Program ("GRIP") investments by theFlorida natural gas distribution operations;$896,000 from customer growth in natural gas distribution and transmission services beyond recent service expansions; and$673,000 from a base rate increase in theFlorida electric distribution operation that was approved by theFlorida Public Service Commission ("PSC") inSeptember 2014 .
The significant components of the increase in other operating expenses included:
$696,000 in higher payroll and benefits costs as a result of additional personnel to support growth;$507,000 in higher depreciation, asset removal and property tax costs associated with recent capital investments to support growth; and$208,000 in higher accruals for incentive compensation as a result of the higher quarterly financial results.
Unregulated Energy Segment
The Unregulated Energy segment reported an operating loss of
$2.0 million generated by Aspire Energy ofOhio , LLC, ("Aspire Energy ofOhio "), following the acquisition ofGatherco, Inc. ("Gatherco") onApril 1, 2015 ;$1.0 million of additional gross margin in the propane distribution business as a result of higher retail propane margins per gallon due to the retail pricing strategy guided by local market conditions, and lower propane costs; and$479,000 in higher gross margin from the Company's natural gas marketing subsidiary,Peninsula Energy Services Company, Inc. ("PESCO") generated as the results of its strategic growth initiatives have started to materialize.
The significant components of the increase in other operating expenses included:
$1.9 million in costs from the operation of Aspire Energy ofOhio , following the acquisition of Gatherco onApril 1, 2015 ;$443,000 in higher payroll and benefits costs as a result of additional personnel hired to support growth;$141,000 in higher depreciation and property tax costs reflecting a higher level of assets resulting from our growth;$126,000 in additional costs for facility maintenance; and$102,000 in higher accruals for incentive compensation as a result of the higher year-to-date financial results and a larger workforce.
Comparative Results for the Nine Months Ended
The Company's operating income for the nine months ended
Regulated Energy Segment
Operating income for the Regulated Energy segment increased by
$4.1 million generated from natural gas service expansions completed in 2014 and 2015, as more fully discussed in the Major Projects and Initiatives section below;$3.2 million in customer growth in natural gas distribution and transmission services beyond recent service expansions;$3.1 million generated by the Florida GRIP; and$2.4 million from a base rate increase for theFlorida electric distribution operation.
The significant components of the increase in other operating expenses included:
$1.9 million in higher payroll and benefit costs as a result of additional personnel to support growth and increased overtime on theDelmarva Peninsula in early 2015 due to colder weather;$1.3 million in higher depreciation, asset removal and property tax costs associated with recent capital investments to support growth;$987,000 in legal and consulting costs associated with the billing system settlement and other transactions;$811,000 in higher accruals for incentive compensation as a result of improved year-to-date financial performance;$680,000 in higher service contractor and other consulting costs;$497,000 in additional amortization expense due to a change in the amortization of regulatory assets and liabilities, primarily in theFlorida electric distribution operation; and$353,000 in additional costs for facility maintenance.
Unregulated Energy Segment
Operating income for the Unregulated Energy segment increased by
$6.7 million generated from higher retail propane margins per gallon due to the retail pricing strategy, guided by local market conditions, and lower propane costs as a result of favorable supply management and hedging activities;$3.7 million in gross margin generated from Aspire Energy ofOhio , which was acquired inApril 2015 and therefore not included in prior year results;$404,000 in additional gross margin generated by PESCO due to the execution of its growth strategy; partially offset by$854,000 in decreased gross margin for Xeron, inc. ("Xeron"), due to lower volatility in wholesale propane prices.
Other operating expenses increased by
$3.8 million in costs from the operation of Aspire Energy ofOhio , following the acquisition of Gatherco;$1.0 million in higher payroll and benefits expense due to increased seasonal overtime and additional resources hired to support growth;$379,000 in additional costs for facility maintenance; and$337,000 in increased accruals for incentive compensation as a result of improved year-to-date financial results in 2015 as well as a larger workforce.
Matters discussed in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. Please refer to the Safe Harbor for Forward-Looking Statements in the Company's 2014 Annual Report on Form 10-K for further information on the risks and uncertainties related to the Company's forward-looking statements.
The discussions of the results use the term "gross margin," a non-Generally Accepted Accounting Principles ("GAAP") financial measure, which management uses to evaluate the performance of the Company's business segments. For an explanation of the calculation of "gross margin," see the footnote to the Financial Summary.
Unless otherwise noted, earnings per share information is presented on a diluted basis.
Conference Call
About
For more information, contact:
Senior Vice President & Chief Financial Officer
302.734.6799
Financial Summary | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
|
| ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
Gross Margin (1) |
|||||||||||||||
Regulated Energy segment |
$ |
40,635 |
$ |
36,316 |
$ |
134,023 |
$ |
121,148 |
|||||||
Unregulated Energy segment |
10,207 |
6,448 |
45,929 |
35,563 |
|||||||||||
Other businesses and eliminations |
(49) |
2,880 |
(156) |
7,021 |
|||||||||||
Total Gross Margin |
$ |
50,793 |
$ |
45,644 |
$ |
179,796 |
$ |
163,732 |
|||||||
Operating Income (Loss) |
|||||||||||||||
Regulated Energy segment |
$ |
11,828 |
$ |
9,202 |
$ |
47,616 |
$ |
41,004 |
|||||||
Unregulated Energy segment |
(1,022) |
(1,972) |
13,666 |
8,843 |
|||||||||||
Other businesses and eliminations |
103 |
562 |
305 |
25 |
|||||||||||
Total Operating Income |
10,909 |
7,792 |
61,587 |
49,872 |
|||||||||||
Other Income (Loss), net of Other Expenses |
36 |
(32) |
(3) |
380 |
|||||||||||
Interest Charges |
2,492 |
2,495 |
7,425 |
6,954 |
|||||||||||
Pre-tax Income |
8,453 |
5,265 |
54,159 |
43,298 |
|||||||||||
Income Taxes |
3,334 |
2,085 |
21,638 |
17,303 |
|||||||||||
Net Income |
$ |
5,119 |
$ |
3,180 |
$ |
32,521 |
$ |
25,995 |
|||||||
Earnings Per Share of Common Stock |
|||||||||||||||
Basic |
$ |
0.34 |
$ |
0.22 |
$ |
2.16 |
$ |
1.79 |
|||||||
Diluted |
$ |
0.33 |
$ |
0.22 |
$ |
2.16 |
$ |
1.78 |
(1) "Gross margin" is determined by deducting the cost of sales from operating revenue. Cost of sales includes the purchased fuel cost for natural gas, electricity and propane and the cost of labor spent on direct revenue-producing activities. Gross margin should not be considered an alternative to operating income or net income, which are determined in accordance with GAAP. Chesapeake believes that gross margin, although a non-GAAP measure, is useful and meaningful to investors as a basis for making investment decisions. It provides investors with information that demonstrates the profitability achieved by the Company under its allowed rates for regulated operations and under its competitive pricing structure for non-regulated segments. Chesapeake's management uses gross margin in measuring its business units' performance and has historically analyzed and reported gross margin
information publicly. Other companies may calculate gross margin in a different manner.
Financial Summary Highlights
Key variances for the three months ended
(in thousands, except per share) |
Pre-tax Income |
Net Income |
Earnings Per Share | |||||||||
Third Quarter of 2014 Reported Results |
$ |
5,265 |
$ |
3,180 |
$ |
0.22 |
||||||
Adjusting for Unusual Items: |
||||||||||||
Absence of |
(454) |
(274) |
(0.02) |
|||||||||
(454) |
(274) |
(0.02) |
||||||||||
Increased (Decreased) Gross Margins: |
||||||||||||
Contribution from Aspire Energy of |
2,037 |
1,230 |
0.08 |
|||||||||
Service expansions (See Major Projects and Initiatives table) |
1,708 |
1,031 |
0.07 |
|||||||||
GRIP |
1,144 |
691 |
0.05 |
|||||||||
Higher retail propane margins |
1,029 |
621 |
0.04 |
|||||||||
Natural gas growth (excluding service expansions) |
895 |
540 |
0.04 |
|||||||||
FPU electric base rate increase |
673 |
406 |
0.03 |
|||||||||
Natural gas marketing |
479 |
289 |
0.02 |
|||||||||
7,965 |
4,808 |
0.33 |
||||||||||
Increased Other Operating Expenses: |
||||||||||||
Expenses from Aspire Energy of |
(1,933) |
(1,167) |
(0.08) |
|||||||||
Higher payroll and benefits costs |
(1,098) |
(663) |
(0.05) |
|||||||||
Higher depreciation, asset removal and property tax costs due to recent capital investments |
(647) |
(391) |
(0.03) |
|||||||||
Increased accrual for incentive compensation |
(314) |
(190) |
(0.01) |
|||||||||
(3,992) |
(2,411) |
(0.17) |
||||||||||
Interest Charges |
3 |
2 |
— |
|||||||||
Net Other Changes (1) |
(334) |
(186) |
(0.03) |
|||||||||
Third Quarter of 2015 Reported Results |
$ |
8,453 |
$ |
5,119 |
$ |
0.33 |
1) The earnings per share impact, net of other changes shown above, includes
Key variances for the nine months ended
(in thousands, except per share) |
Pre-tax Income |
Net Income |
Earnings Per Share | |||||||||
Nine months ended |
$ |
43,298 |
$ |
25,995 |
$ |
1.78 |
||||||
Adjusting for Unusual Items: |
||||||||||||
Gain from a customer billing system settlement |
1,500 |
902 |
0.06 |
|||||||||
Gain on sale of business, recorded in 2014 |
(397) |
(238) |
(0.02) |
|||||||||
Absence of |
303 |
182 |
0.01 |
|||||||||
1,406 |
846 |
0.05 |
||||||||||
Increased (Decreased) Gross Margins: |
||||||||||||
Higher retail propane margins |
6,742 |
4,048 |
0.28 |
|||||||||
Service expansions (See Major Projects and Initiatives table) |
4,085 |
2,453 |
0.17 |
|||||||||
Contribution from Aspire Energy of |
3,661 |
2,198 |
0.15 |
|||||||||
Natural gas growth (excluding service expansions) |
3,149 |
1,891 |
0.13 |
|||||||||
GRIP |
3,070 |
1,843 |
0.13 |
|||||||||
FPU electric base rate increase |
2,366 |
1,421 |
0.10 |
|||||||||
Propane wholesale marketing |
(854) |
(513) |
(0.04) |
|||||||||
22,219 |
13,341 |
0.92 |
||||||||||
Increased Other Operating Expenses: |
||||||||||||
Expenses from Aspire Energy of |
(3,828) |
(2,298) |
(0.16) |
|||||||||
Higher payroll and benefits costs |
(2,762) |
(1,658) |
(0.11) |
|||||||||
Higher depreciation, asset removal costs and property tax costs due to recent capital investments |
(1,700) |
(1,021) |
(0.07) |
|||||||||
Increased accruals for incentive compensation |
(1,150) |
(690) |
(0.05) |
|||||||||
Costs associated with a customer billing system settlement and other transactions |
(1,081) |
(649) |
(0.04) |
|||||||||
Higher facility maintenance |
(729) |
(438) |
(0.03) |
|||||||||
Higher service contractor and other consulting costs |
(694) |
(417) |
(0.03) |
|||||||||
Higher amortization expense |
(463) |
(278) |
(0.02) |
|||||||||
(12,407) |
(7,449) |
(0.51) |
||||||||||
Interest Charges |
(471) |
(283) |
(0.02) |
|||||||||
Net Other Changes (1) |
114 |
71 |
(0.06) |
|||||||||
Nine months ended |
$ |
54,159 |
$ |
32,521 |
$ |
2.16 |
(1) The earnings per share impact, net of other changes shown above, includes
Major Projects and Initiatives
The following table summarizes gross margin for the Company's existing and future major projects and initiatives (dollars in thousands):
Gross Margin for the Period | |||||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
Total |
|||||||||||||||||||||||||||||
|
|
2014 |
Estimate for | ||||||||||||||||||||||||||||
2015 |
2014 |
2015 |
2014 |
Margin |
2015 |
2016 |
2017 | ||||||||||||||||||||||||
Existing major projects |
$ |
7,490 |
$ |
1,928 |
$ |
17,030 |
$ |
3,848 |
$ |
7,114 |
$ |
25,510 |
$ |
33,438 |
$ |
35,295 |
|||||||||||||||
Future major projects |
— |
— |
— |
— |
— |
— |
11,200 |
17,450 |
|||||||||||||||||||||||
$ |
7,490 |
$ |
1,928 |
$ |
17,030 |
$ |
3,848 |
$ |
7,114 |
$ |
25,510 |
$ |
44,638 |
$ |
52,745 |
Existing Major Projects and Initiatives
The following table summarizes the Company's major projects and initiatives commenced since 2014 (dollars in thousands):
Gross Margin for the Period (1) |
||||||||||||||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
Total |
||||||||||||||||||||||||||||||||||||||
|
|
2014 |
Estimate for |
|||||||||||||||||||||||||||||||||||||
2015 |
2014 |
Variance |
2015 |
2014 |
Variance |
Margin |
2015 |
2016 |
2017 |
|||||||||||||||||||||||||||||||
Acquisition: |
||||||||||||||||||||||||||||||||||||||||
Aspire Energy of |
$ |
2,037 |
$ |
— |
$ |
2,037 |
$ |
3,661 |
$ |
— |
$ |
3,661 |
$ |
— |
$ |
7,673 |
$ |
13,000 |
$ |
13,000 |
||||||||||||||||||||
Natural Gas Transmission |
||||||||||||||||||||||||||||||||||||||||
Short-term contracts |
||||||||||||||||||||||||||||||||||||||||
|
$ |
507 |
$ |
657 |
$ |
(150) |
$ |
1,998 |
$ |
1,256 |
$ |
742 |
$ |
2,026 |
$ |
2,505 |
$ |
2,029 |
$ |
1,561 |
||||||||||||||||||||
|
1,055 |
— |
1,055 |
1,453 |
— |
1,453 |
— |
1,663 |
— |
— |
||||||||||||||||||||||||||||||
Total short-term |
1,562 |
657 |
905 |
3,451 |
1,256 |
2,195 |
2,026 |
4,168 |
2,029 |
1,561 |
||||||||||||||||||||||||||||||
Long-term Contracts |
||||||||||||||||||||||||||||||||||||||||
|
463 |
— |
463 |
1,389 |
— |
1,389 |
463 |
1,844 |
1,815 |
1,789 |
||||||||||||||||||||||||||||||
|
340 |
— |
340 |
501 |
— |
501 |
— |
908 |
1,627 |
1,627 |
||||||||||||||||||||||||||||||
Total long-term contracts |
$ |
803 |
$ |
— |
$ |
803 |
$ |
1,890 |
$ |
— |
$ |
1,890 |
$ |
463 |
$ |
2,752 |
$ |
3,442 |
$ |
3,416 |
||||||||||||||||||||
Total Expansions & |
$ |
2,365 |
$ |
657 |
$ |
1,708 |
$ |
5,341 |
$ |
1,256 |
$ |
4,085 |
$ |
2,489 |
$ |
6,920 |
$ |
5,471 |
$ |
4,977 |
||||||||||||||||||||
Florida GRIP |
$ |
2,067 |
$ |
923 |
$ |
1,144 |
$ |
5,314 |
$ |
2,244 |
$ |
3,070 |
$ |
3,356 |
$ |
7,355 |
$ |
11,405 |
$ |
13,756 |
||||||||||||||||||||
Florida Electric Rate Case |
$ |
1,021 |
$ |
348 |
$ |
673 |
$ |
2,714 |
$ |
348 |
$ |
2,366 |
$ |
1,269 |
$ |
3,562 |
$ |
3,562 |
$ |
3,562 |
||||||||||||||||||||
Total Major Projects and Initiatives |
$ |
7,490 |
$ |
1,928 |
$ |
5,562 |
$ |
17,030 |
$ |
3,848 |
$ |
13,182 |
$ |
7,114 |
$ |
25,510 |
$ |
33,438 |
$ |
35,295 |
(1) Gross margin of
(2) During the three and nine months ended
(3) The gross margin is attributable to interruptible service
Gatherco Acquisition
On
Aspire Energy of
Service Expansions
During 2014,
In
On
In
On
GRIP
GRIP is a natural gas pipe replacement program approved by the Florida PSC, designed to expedite the replacement of qualifying distribution mains and services (any material other than coated steel or plastic) to enhance reliability and integrity of the Company's
Florida Electric Rate Case
On
Future Major Projects and Initiatives
Eight Flags: Eight
The following table summarizes estimated in-service dates and gross margin for the foregoing projects (dollars in thousands):
Estimate for | ||||||||||||||
Project |
Estimated In-Service |
Annualized |
2016 |
2017 | ||||||||||
|
Third quarter of 2016 |
$ |
5,400 |
$ |
5,400 |
$ |
5,800 |
|||||||
|
Late third quarter of 2016 |
4,500 |
— |
2,250 |
||||||||||
|
|
2,100 |
2,100 |
2,100 |
||||||||||
Eight Flags CHP plant in |
Early third quarter of 2016 |
7,300 |
3,700 |
7,300 |
||||||||||
$ |
19,300 |
$ |
11,200 |
$ |
17,450 |
Other factors contributing to gross margin increase
Weather and Consumption
Weather was not a significant factor in the gross margin increase for the quarter ended
HDD and CDD Information
Three Months Ended |
Nine Months Ended |
||||||||||||||||
|
|
||||||||||||||||
2015 |
2014 |
Variance |
2015 |
2014 |
Variance | ||||||||||||
Delmarva |
|||||||||||||||||
Actual HDD |
41 |
89 |
(48) |
3,249 |
3,262 |
(13) |
|||||||||||
10-Year Average HDD ("Normal") |
65 |
61 |
4 |
2,908 |
2,893 |
15 |
|||||||||||
Variance from Normal |
(24) |
28 |
341 |
369 |
|||||||||||||
|
|||||||||||||||||
Actual HDD |
— |
— |
— |
501 |
574 |
(73) |
|||||||||||
10-Year Average HDD ("Normal") |
— |
— |
— |
557 |
555 |
2 |
|||||||||||
Variance from Normal |
— |
— |
(56) |
19 |
|||||||||||||
|
|||||||||||||||||
Actual CDD |
1,591 |
1,528 |
63 |
2,827 |
2,498 |
329 |
|||||||||||
10-Year Average CDD ("Normal") |
1,524 |
1,519 |
5 |
2,506 |
2,501 |
5 |
|||||||||||
Variance from Normal |
67 |
9 |
321 |
(3) |
Gross Margin Variance attributed to Weather
(in thousands) |
Q3 2015 vs. |
Q3 2015 |
Q3 2014 |
YTD 2015 vs. |
YTD 2015 |
YTD 2014 | |||||||||||||||||
Delmarva |
|||||||||||||||||||||||
Regulated Energy segment |
$ |
(157) |
$ |
(31) |
$ |
167 |
$ |
(87) |
$ |
872 |
$ |
803 |
|||||||||||
Unregulated Energy segment |
(8) |
27 |
(13) |
20 |
1,005 |
1,037 |
|||||||||||||||||
|
|||||||||||||||||||||||
Regulated Energy segment |
(232) |
(40) |
38 |
134 |
(239) |
(284) |
|||||||||||||||||
Unregulated Energy segment |
— |
— |
— |
(10) |
122 |
81 |
|||||||||||||||||
Total |
$ |
(397) |
$ |
(44) |
$ |
192 |
$ |
57 |
$ |
1,760 |
$ |
1,637 |
Propane prices
Higher retail margins per gallon generated
In
These market conditions, which are influenced by competition with other propane suppliers as well as the availability and price of alternative energy sources, may fluctuate based on changes in demand, supply and other energy commodity prices. The level of retail margins per gallon generated during the first nine months of 2015 is not typical and, therefore, is not included in the Company's long-term financial plans or forecasts.
Xeron, which benefits from wholesale price volatility by entering into trading transactions, generated additional gross margin of
Other Natural Gas Growth - Distribution Operations
In addition to service expansions, the natural gas distribution operations on the
Capital Expenditures
The Company has revised its capital expenditures forecast for 2015 to be in the range of
In order to fund the 2015 capital expenditures currently budgeted, the Company expects to increase the level of borrowings during the remainder of 2015 to supplement cash provided by operating activities. The Company's target ratio of equity to total capitalization, including short-term borrowings, is between 50 and 60 percent, and the Company has maintained a ratio of equity to total capitalization, including short-term borrowings, between 54 and 60 percent during the past three years. If the Company increases the level of debt during 2015 and 2016 to fund the budgeted capital expenditures, the ratio of equity to total capitalization, including short-term borrowings, will temporarily decline.
On
Condensed Consolidated Statements of Income (Unaudited) (in thousands, except shares and per share data)
| |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
|
| ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
Operating Revenues |
|||||||||||||||
Regulated Energy |
$ |
63,796 |
$ |
59,356 |
$ |
235,438 |
$ |
223,168 |
|||||||
Unregulated Energy and other |
28,117 |
32,263 |
119,238 |
155,286 |
|||||||||||
Total Operating Revenues |
91,913 |
91,619 |
354,676 |
378,454 |
|||||||||||
Operating Expenses |
|||||||||||||||
Regulated Energy cost of sales |
23,161 |
23,040 |
101,414 |
102,020 |
|||||||||||
Unregulated Energy and other cost of sales |
17,959 |
22,935 |
73,465 |
112,702 |
|||||||||||
Operations |
26,388 |
25,365 |
79,522 |
76,604 |
|||||||||||
Maintenance |
2,603 |
2,562 |
8,033 |
7,168 |
|||||||||||
Gain from a settlement |
— |
— |
(1,500) |
— |
|||||||||||
Depreciation and amortization |
7,636 |
6,774 |
22,155 |
20,146 |
|||||||||||
Other taxes |
3,257 |
3,151 |
10,000 |
9,942 |
|||||||||||
Total operating expenses |
81,004 |
83,827 |
293,089 |
328,582 |
|||||||||||
Operating Income |
10,909 |
7,792 |
61,587 |
49,872 |
|||||||||||
Other income (loss), net of other expenses |
36 |
(32) |
(3) |
380 |
|||||||||||
Interest charges |
2,492 |
2,495 |
7,425 |
6,954 |
|||||||||||
Income Before Income Taxes |
8,453 |
5,265 |
54,159 |
43,298 |
|||||||||||
Income taxes |
3,334 |
2,085 |
21,638 |
17,303 |
|||||||||||
Net Income |
$ |
5,119 |
$ |
3,180 |
$ |
32,521 |
$ |
25,995 |
|||||||
Weighted Average Common Shares Outstanding: |
|||||||||||||||
Basic |
15,258,819 |
14,574,678 |
15,035,569 |
14,539,841 |
|||||||||||
Diluted |
15,306,843 |
14,616,665 |
15,083,641 |
14,588,130 |
|||||||||||
Earnings Per Share of Common Stock: |
|||||||||||||||
Basic |
$ |
0.34 |
$ |
0.22 |
$ |
2.16 |
$ |
1.79 |
|||||||
Diluted |
$ |
0.33 |
$ |
0.22 |
$ |
2.16 |
$ |
1.78 |
Condensed Consolidated Balance Sheets (Unaudited)
| ||||||||
Assets |
|
| ||||||
(in thousands, except shares) |
||||||||
Property, Plant and Equipment |
||||||||
Regulated Energy |
$ |
813,145 |
$ |
766,855 |
||||
Unregulated Energy |
141,393 |
84,773 |
||||||
Other businesses and eliminations |
19,190 |
18,497 |
||||||
Total property, plant and equipment |
973,728 |
870,125 |
||||||
Less: Accumulated depreciation and amortization |
(210,979) |
(193,369) |
||||||
Plus: Construction work in progress |
56,441 |
13,006 |
||||||
Net property, plant and equipment |
819,190 |
689,762 |
||||||
Current Assets |
||||||||
Cash and cash equivalents |
3,781 |
4,574 |
||||||
Accounts receivable (less allowance for uncollectible accounts of |
39,861 |
53,300 |
||||||
Accrued revenue |
8,797 |
13,617 |
||||||
Propane inventory, at average cost |
4,211 |
7,250 |
||||||
Other inventory, at average cost |
4,143 |
3,699 |
||||||
Regulatory assets |
7,653 |
8,967 |
||||||
Storage gas prepayments |
3,839 |
4,258 |
||||||
Income taxes receivable |
6,935 |
18,806 |
||||||
Deferred income taxes |
338 |
— |
||||||
Prepaid expenses |
7,507 |
6,652 |
||||||
Mark-to-market energy assets |
286 |
1,055 |
||||||
Other current assets |
339 |
195 |
||||||
Total current assets |
87,690 |
122,373 |
||||||
Deferred Charges and Other Assets |
||||||||
|
16,048 |
4,952 |
||||||
Other intangible assets, net |
2,317 |
2,404 |
||||||
Investments, at fair value |
3,412 |
3,678 |
||||||
Regulatory assets |
77,332 |
78,136 |
||||||
Receivables and other deferred charges |
2,453 |
3,164 |
||||||
Total deferred charges and other assets |
101,562 |
92,334 |
||||||
Total Assets |
$ |
1,008,442 |
$ |
904,469 |
Condensed Consolidated Balance Sheets (Unaudited)
| ||||||||
Capitalization and Liabilities |
|
| ||||||
(in thousands, except shares and per share data) |
||||||||
Capitalization |
||||||||
Stockholders' equity |
||||||||
Common stock, par value |
||||||||
(authorized 25,000,000 shares) |
$ |
7,429 |
$ |
7,100 |
||||
Additional paid-in capital |
189,321 |
156,581 |
||||||
Retained earnings |
162,036 |
142,317 |
||||||
Accumulated other comprehensive loss |
(5,471) |
(5,676) |
||||||
Deferred compensation obligation |
1,863 |
1,258 |
||||||
Treasury stock |
(1,863) |
(1,258) |
||||||
Total stockholders' equity |
353,315 |
300,322 |
||||||
Long-term debt, net of current maturities |
155,909 |
158,486 |
||||||
Total capitalization |
509,224 |
458,808 |
||||||
Current Liabilities |
||||||||
Current portion of long-term debt |
9,139 |
9,109 |
||||||
Short-term borrowing |
127,093 |
88,231 |
||||||
Accounts payable |
41,129 |
44,610 |
||||||
Customer deposits and refunds |
24,020 |
25,197 |
||||||
Accrued interest |
3,242 |
1,352 |
||||||
Dividends payable |
4,388 |
3,939 |
||||||
Deferred income taxes |
— |
832 |
||||||
Accrued compensation |
8,909 |
10,076 |
||||||
Regulatory liabilities |
9,346 |
3,268 |
||||||
Mark-to-market energy liabilities |
154 |
1,018 |
||||||
Other accrued liabilities |
9,443 |
6,603 |
||||||
Total current liabilities |
236,863 |
194,235 |
||||||
Deferred Credits and Other Liabilities |
||||||||
Deferred income taxes |
174,247 |
160,232 |
||||||
Regulatory liabilities |
43,356 |
43,419 |
||||||
Environmental liabilities |
9,003 |
8,923 |
||||||
Other pension and benefit costs |
32,619 |
35,027 |
||||||
Deferred investment tax credits and other liabilities |
3,130 |
3,825 |
||||||
Total deferred credits and other liabilities |
262,355 |
251,426 |
||||||
Total Capitalization and Liabilities |
$ |
1,008,442 |
$ |
904,469 |
Distribution Utility Statistical Data (Unaudited)
| ||||||||||||||||||||||||||||||||
For the Three Months Ended |
For the Three Months Ended | |||||||||||||||||||||||||||||||
Delmarva NG |
Chesapeake |
FPU NG |
|
Delmarva NG |
Chesapeake |
FPU NG |
| |||||||||||||||||||||||||
Operating Revenues (in thousands) |
||||||||||||||||||||||||||||||||
Residential |
$ |
5,133 |
$ |
1,103 |
$ |
4,076 |
$ |
14,821 |
$ |
5,175 |
$ |
1,036 |
$ |
4,537 |
$ |
13,093 |
||||||||||||||||
Commercial |
4,967 |
1,117 |
4,891 |
12,585 |
5,553 |
1,010 |
6,952 |
10,896 |
||||||||||||||||||||||||
Industrial |
1,611 |
1,478 |
3,469 |
812 |
1,672 |
1,233 |
2,567 |
478 |
||||||||||||||||||||||||
Other (1) |
263 |
744 |
2,073 |
(4,021) |
559 |
788 |
(358) |
(2,582) |
||||||||||||||||||||||||
Total Operating Revenues |
$ |
11,974 |
$ |
4,442 |
$ |
14,509 |
$ |
24,197 |
$ |
12,959 |
$ |
4,067 |
$ |
13,698 |
$ |
21,885 |
||||||||||||||||
Volume (in Dts/MWHs) |
||||||||||||||||||||||||||||||||
Residential |
176,715 |
48,481 |
197,177 |
96,857 |
174,962 |
44,996 |
192,663 |
95,041 |
||||||||||||||||||||||||
Commercial |
461,219 |
1,305,028 |
469,011 |
95,059 |
470,647 |
290,901 |
518,360 |
92,455 |
||||||||||||||||||||||||
Industrial |
1,041,864 |
2,503,874 |
881,556 |
4,570 |
991,396 |
2,830,265 |
784,824 |
7,090 |
||||||||||||||||||||||||
Other |
28,552 |
— |
(42,998) |
(1,274) |
31,036 |
— |
(15,200) |
1,707 |
||||||||||||||||||||||||
Total |
1,708,350 |
3,857,383 |
1,504,746 |
195,212 |
1,668,041 |
3,166,162 |
1,480,647 |
196,293 |
||||||||||||||||||||||||
Average Customers |
||||||||||||||||||||||||||||||||
Residential |
62,989 |
14,789 |
52,100 |
24,103 |
61,326 |
14,356 |
50,691 |
23,894 |
||||||||||||||||||||||||
Commercial |
6,571 |
1,355 |
4,223 |
7,412 |
6,453 |
1,380 |
4,343 |
7,411 |
||||||||||||||||||||||||
Industrial |
120 |
69 |
1,663 |
2 |
110 |
59 |
1,347 |
2 |
||||||||||||||||||||||||
Other |
4 |
— |
— |
— |
7 |
— |
— |
— |
||||||||||||||||||||||||
Total |
69,684 |
16,213 |
57,986 |
31,517 |
67,896 |
15,795 |
56,381 |
31,307 |
||||||||||||||||||||||||
Distribution Utility Statistical Data (Unaudited)
| ||||||||||||||||||||||||||||||||
For the Nine Months Ended |
For the Nine Months Ended | |||||||||||||||||||||||||||||||
Delmarva NG |
Chesapeake |
FPU NG |
|
Delmarva NG |
Chesapeake |
FPU NG |
| |||||||||||||||||||||||||
Operating Revenues (in thousands) |
||||||||||||||||||||||||||||||||
Residential |
$ |
53,339 |
$ |
3,788 |
$ |
17,646 |
$ |
37,495 |
$ |
51,016 |
$ |
3,617 |
$ |
18,399 |
$ |
33,607 |
||||||||||||||||
Commercial |
27,950 |
3,610 |
20,435 |
32,524 |
28,304 |
3,312 |
24,982 |
28,362 |
||||||||||||||||||||||||
Industrial |
5,379 |
4,536 |
11,955 |
2,361 |
4,677 |
3,794 |
9,354 |
2,911 |
||||||||||||||||||||||||
Other (1) |
(3,466) |
2,275 |
557 |
(8,979) |
(3,122) |
2,362 |
(1,746) |
(6,152) |
||||||||||||||||||||||||
Total Operating Revenues |
$ |
83,202 |
$ |
14,209 |
$ |
50,593 |
$ |
63,401 |
$ |
80,875 |
$ |
13,085 |
$ |
50,989 |
$ |
58,728 |
||||||||||||||||
Volume (in Dts/MWHs) |
||||||||||||||||||||||||||||||||
Residential |
3,128,130 |
255,273 |
970,570 |
244,344 |
2,953,300 |
254,612 |
957,430 |
244,631 |
||||||||||||||||||||||||
Commercial |
2,954,973 |
4,069,566 |
1,886,076 |
239,633 |
2,851,167 |
1,019,970 |
1,939,673 |
238,878 |
||||||||||||||||||||||||
Industrial |
3,372,321 |
8,187,722 |
3,035,617 |
14,220 |
3,163,735 |
9,861,224 |
2,930,761 |
23,960 |
||||||||||||||||||||||||
Other |
57,008 |
— |
(151,631) |
4,074 |
57,088 |
— |
(97,953) |
(4,309) |
||||||||||||||||||||||||
Total |
9,512,432 |
12,512,561 |
5,740,632 |
502,271 |
9,025,290 |
11,135,806 |
5,729,911 |
503,160 |
||||||||||||||||||||||||
Average Customers |
||||||||||||||||||||||||||||||||
Residential |
63,700 |
14,805 |
51,907 |
24,022 |
62,028 |
14,364 |
50,781 |
23,868 |
||||||||||||||||||||||||
Commercial |
6,637 |
1,351 |
4,258 |
7,390 |
6,531 |
1,363 |
4,383 |
7,413 |
||||||||||||||||||||||||
Industrial |
117 |
68 |
1,606 |
2 |
109 |
60 |
1,280 |
2 |
||||||||||||||||||||||||
Other |
5 |
— |
— |
— |
7 |
— |
— |
— |
||||||||||||||||||||||||
Total |
70,459 |
16,224 |
57,771 |
31,414 |
68,675 |
15,787 |
56,444 |
31,283 |
||||||||||||||||||||||||
(1) Operating Revenues from "Other" sources include unbilled revenue, under (over) recoveries of fuel cost, conservation revenue, other miscellaneous charges, fees for billing services provided to third parties and adjustments for pass-through taxes.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/chesapeake-utilities-corporation-reports-higher-third-quarter-results-300172877.html
SOURCE
News Provided by Acquire Media