This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

WGL Holdings, Inc. Reports Fiscal Year 2012 Financial Results; Issues Fiscal Year 2013 Guidance

Stocks in this article: WGL

“We are pleased to announce record non-GAAP earnings per share at WGL Holdings in 2012,” said Terry D. McCallister, Chairman and Chief Executive Officer of WGL Holdings. “Non-GAAP earnings increased 21% for our regulated utility segment. In addition, we saw another year of record results for our retail business and an increase in the contribution from our commercial energy systems segment. These results were realized in spite of record warm temperatures this past winter and an unusually hot summer, and they demonstrate our ability to deliver consistent results in the face of an uncertain economy and unusual weather patterns. We believe we are well positioned to continue to grow earnings.”

Fiscal Year and Fourth Quarter Results by Business Segment

Regulated Utility

For the quarter ended September 30, 2012, our regulated utility segment reported a seasonal net loss of ($1.2) million, or ($0.02) per share, compared to a net loss of ($38.4) million, or ($0.75) per share, reported for the fourth quarter of the prior fiscal year. After adjustments, the non-GAAP operating loss for the regulated utility segment was ($12.6) million, or ($0.24) per share, for the quarter ended September 30, 2012, compared to a non-GAAP operating loss of ($24.2) million, or ($0.47) per share, for the same quarter of the prior fiscal year. This three month comparison of non-GAAP operating earnings reflect: (i) higher revenues from the implementation of new rates in Virginia and Maryland; (ii) higher margins associated with our asset optimization program including the favorable impact of the commission decision in Maryland validating the benefits of our program in the asset optimization case; (iii) lower interest expense and (iv) a lower effective tax rate. Partially offsetting these favorable variances was higher depreciation expense due to the growth in our investment in utility plant.

For the fiscal year ended September 30, 2012, our regulated utility segment reported net income of $109.7 million, or $2.13 per share, an increase of $40.5 million, or $0.78 per share, over net income of $69.2 million, or $1.35 per share, for the prior fiscal year. After adjustments, non-GAAP operating earnings for the regulated utility segment were $104.4 million, or $2.02 per share, for the fiscal year ended September 30, 2012, an increase of $18.2 million, or $0.34 per share, over non-GAAP operating earnings of $86.2 million, or $1.68 per share, for the prior fiscal year. The year-over-year improvement in non-GAAP earnings for the fiscal year ended September 30, 2012 reflects: (i) higher revenues from the implementation of new rates in Virginia and Maryland; (ii) an increase in average active customer meters of more than 8,900 over the same twelve month period of the prior fiscal year; (iii) higher margins associated with our asset optimization program; (iv) lower interest expense and (v) a lower effective tax rate. Partially offsetting these favorable variances were higher operations and maintenance expenses and higher depreciation expense due to the growth in our investment in utility plant.

Retail Energy-Marketing

For the quarter ended September 30, 2012, the retail energy-marketing segment reported net income of $14.4 million, or $0.28 per share, an increase of $8.4 million, or $0.16 per share, over net income of $6.0 million, or $0.12 per share, reported for the same quarter of the prior fiscal year. Non-GAAP operating earnings for the retail energy-marketing segment were $8.9 million, or $0.17 per share, for the quarter ended September 30, 2012, compared to non-GAAP operating earnings of $11.8 million, or $0.23 per share, for the same quarter of the prior fiscal year. For the fiscal year ended September 30, 2012, the retail energy-marketing segment reported net income of $39.3 million, or $0.76 per share, compared to net income of $49.0 million, or $0.95 per share, reported for the prior fiscal year. Non-GAAP operating earnings for the retail energy-marketing segment were $36.2 million, or $0.70 per share, for the fiscal year ended September 30, 2012, an increase of $1.9 million, or $0.03 per share, over non-GAAP operating earnings of $34.3 million, or $0.67 per share, for the prior fiscal year.

2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

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