WGL Holdings, Inc. (NYSE: WGL):
WGL Holdings, Inc. (NYSE: WGL), the parent company of Washington Gas Light Company (Washington Gas) and other energy-related subsidiaries, today reported net income determined in accordance with generally accepted accounting principles in the United States of America (GAAP) for the quarter ended December 31, 2012 of $52.4 million, or $1.01 per share, compared to net income of $50.4 million, or $0.98 per share, reported for the quarter ended December 31, 2011.
Financial performance is also evaluated based on non-GAAP operating earnings (loss). Non-GAAP operating earnings (loss) excludes the effects of:
unrealized mark-to-market gains (losses) on energy-related derivatives for our regulated utility and retail energy marketing segments;
certain gains and losses associated with optimizing the utility segment’s system capacity assets;
changes in the measured value of our inventory for our wholesale energy solutions segment;
the financial effects of warm or cold weather that exceeds weather protection for our regulated utility segment and
certain unusual transactions. Refer to “Use of Non-GAAP Operating Earnings (Loss)” and supporting reconciliations attached to this news release for a detailed discussion of management’s use of non-GAAP operating earnings, as well as reconciliations of net income determined in accordance with GAAP to non-GAAP operating earnings (loss) for both our consolidated and segment results.
For the quarter ended December 31, 2012, non-GAAP operating earnings were $58.9 million, or $1.14 per share, compared to non-GAAP operating earnings of $58.1 million, or $1.13 per share, for the same quarter of the prior fiscal year.
Since last year, we have made certain changes to our operating segments reporting to reflect the growth of our non-utility business activities and the impact of those activities on our financial performance. All activities of WGSW, Inc. (WGSW) are now reported within the Commercial Energy Systems segment. WGSW had previously been reported within “Other Activities”. As these operations align with those of the Commercial Energy Systems segment, management has begun analyzing results and making decisions on this combined set of activities. Prior period operating segment information has been recast to reflect this new classification.