This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Integrys Energy Group's CEO Discusses Q2 2011 Results - Earnings Call Transcript

So turning to Slide 5, our second quarter 2011 consolidated diluted earnings per share adjusted were lower than for the same periods a year ago. Due to the seasonal nature of our energy businesses the second quarter is traditionally the weakest quarter during our financial reporting year, because of the temperate whether typical for the second quarter and lower natural gas and electric sales less favorable and offsetting factors that affect our business tend to have a greater impact in the second quarter then they would in any other quarter. So I will summarize the drivers that caused our earnings to decline this year versus last year.

On the plus side all of our natural gas service territories experienced colder weather this quarter and usage per customer excluding the impact of whether was up, the decoupling mechanism we have in place don’t cover all jurisdictions are customer classes so some of this increased usage was reflected in our quarterly results. In addition, there was an overall increase in margins in the retail markets that Integrys Energy services continues to focus on.

Offsetting these pluses were consolidated operating and maintenance expense increases, this – in public services maintenance expense was higher due to the timing of schedule plant outages, the cost for our outages are included in our revenue requirements but these costs are collected evenly over 12 months, while the actual expenses occur with the scheduled outages.

Natural gas distribution expenses were up Peoples Gas because certain cost related to the accelerated main replacement program are not included in the writer. And finally there was decrease in wholesale margins for Integrys Energy services due to the sale of the whole sale business in prior periods.

The key takeaway from today’s call is that we have narrowed our guidance for 2011 diluted earnings per share adjusted to a range of $3.30 and $3.50 and we are seeing some shifts among our reporting segments, we reduced our core earnings expectation for Integrys Energy services, although we still expect its core 2011 earnings to be more than twice what it contributed to consolidated earnings in 2010. And we have increased the earnings expectation for our natural gas utility segment. Joe will summarize the details of this in his formal remarks.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs