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
TheStreet Open House

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs