Start Time: 11:00 End Time: 11:42 ITC Holdings Corp. (ITC) Q2 2012 Earnings Call August 1, 2012 11:00 a.m. ET Executives Gretchen Holloway – Head – IR Joe Welch – Chairman, President & CEO Cameron Bready – EVP, Treasurer & CFO Analysts Kevin L. Cole – Credit Suisse Caroline V. Bone – Deutsche Bank. Neil A. Kalton – Wells Fargo Securities Presentation Operator
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These risks and uncertainties are discussed in our reports filed with the SEC such as our periodic reports on Forms 10-Q and 10-K and our other SEC filings. You should consider these factors when evaluating our forward-looking statements. Our forward-looking statements represent our outlook only as of today and we disclaim any obligation to update these statements except as may be required by law.A reconciliation of the non-GAAP financial measures discussed on today’s call is available on the Investor Relations page of our website. In addition, on December 5, 2011, ITC and Entergy Corporation made an announcement regarding an intended transaction. Investors are encouraged to read the proxy statement and prospectus in its entirety regarding the proposed transaction, as well as any other relevant documents when they become publicly available. These documents will contain important information about the proposed transaction. A free copy of the proxy statement and prospectus, as well as other filings containing relevant information will be available without charge on the SEC website. Copies of the proxy statement and prospectus and the filings with the SEC that will be incorporated by reference in the proxy statement and prospectus can also be obtained when available and without charge from ITC or Entergy. Information regarding participants or persons who may be deemed to be participants in the solicitation of proxies with respect to the proposed transaction is contained in ITC’s proxy statement for its most recent annual meeting and Entergy’s proxy statement for its most recent annual meeting, both of which are filed with the SEC. This material contains forward-looking statements which involve a number of significant risks and uncertainties. I will now turn the call over to Joe Welch. Joe Welch Thank you, Gretchen, and good morning, everyone. The second quarter of 2012 proved to be yet another successful quarter for ITC on all fronts; strategic, operational and financial. As I have stressed over the past several months, we have worked very hard as an organization to position ourselves well to both, continue to deliver our stand-alone commitments, while also advancing the Entergy transaction towards closing, with a near-term focus on efficiently and successfully navigating the regulatory approval process. I believe that the results of the first half 2012 should demonstrate that we are capable of doing just that.
We are very pleased with our overall performance this year as we continue to invest significant amounts of capital in our system and execute our maintenance programs, all while maintaining top-tier system performance. In addition, as we continue to deliver the high level with system performance that our customers have come to expect, we have consistently produced financial results and further strengthened the overall financial position of the company. This is quite a testament to the capabilities of the team that we have developed at ITC.As Cameron will touch on further, we continue to effectively execute our stand-alone strategic plan. This plan provides for approximately $4.2 billion of transmission infrastructure investment over the next five years to improve reliability, reduce congestion, interconnect new generating resources and develop regional infrastructure to support a robust twenty-first century grid. As we have highlighted previously, the level of planned capital investment in 2012 reflects a significant ramp up relative to prior years and proposes a challenge for our organization, particularly in light of the fact that we are simultaneously pursuing the Entergy transaction. We believe that our performance in the first six months continues to support our ability to deliver on the commitments to our customers and our shareholders premised in our stand-alone strategic plan. Our investments in our base operations continue to support our objective of providing best-in-class transmission service to our customers. ITCTransmission and METC remain top performing systems and we see ongoing system performance improvements at ITC Midwest. Further, our development efforts are advancing through various initiatives, including our participation in SPP, our MVP projects and through the ongoing evolution of our development portfolio. We’ve reached a very important milestone with our development activities in the second quarter when we energized our first development projects in Oklahoma and Kansas. Read the rest of this transcript for free on seekingalpha.com