New Jersey Resources Corp. (NYSE:NJR) Q1 2015 Earnings Conference Call - Final Transcript

Feb 04, 2015 • 10:00 am ET


New Jersey Resources Corp. (NYSE:NJR) Q1 2015 Earnings Conference Call - Final Transcript


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Good day, and welcome to the New Jersey Resources Corporation First Quarter 2015 Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note that this event is being recorded.

I would now like to turn the conference over to Mr. Dennis Puma with Investor Relations. Please go ahead, sir.

Dennis Puma

Thank you, Dan; and good morning, everybody. Welcome to our fiscal 2015 first quarter conference call and webcast. I'm joined today by Larry Downes, our Chairman and CEO; Glenn Lockwood, our CFO; as well as other members of our senior management team.

(Forward-Looking Cautionary Statements)

With that said, I'd like to turn the call over to our Chairman and CEO, Larry Downes. Larry?

Laurence M. Downes

Thanks, Dennis. Good morning, everyone, and thank you for joining us today. For those of you who follow our company and have seen this morning's earnings release, you know that fiscal 2015 is off to a strong start for New Jersey Resources. And during my presentation this morning, I'll be discussing our future and I'll be making forward-looking statements. Our actual results will be affected by many factors, including those that are listed on slide one. The complete list is included in our 10-K and I would ask you to please review them carefully.

And also as noted on slide two, I'll be referring to certain non-GAAP measures such as net financial earnings or NFE as I'm discussing our results. We believe that NFE provides a more complete understanding of our financial performance. However, NFE is not intended to be a substitute for GAAP.

Our non-GAAP measures are disclosed more fully in Item 7 of our 10-K, and again I would ask you to take the time to review those disclosures carefully.

Now moving to slide three. This morning, we announced net financial earnings of $55.1 million or $1.30 per share for the fiscal first quarter of 2015 and that compared with $39.9 million or $0.95 per share last year. In looking at our results you can see that all of our primary business units performed well.

Our excellent first fiscal quarter NFE performance was driven by strong net financial earnings from NJR Energy Services, which is off to another good start in fiscal 2015, steady growth from our twp regulated businesses, New Jersey Natural Gas and NGR Midstream and a solid contribution from NJR Clean Energy Ventures.

On slides four and five, I'll review the individual performances of our subsidiaries results in New Jersey Natural Gas reflecting continued customer growth, as well as increases in our BGSS incentives and regulatory initiatives, which include our accelerated infrastructure programs. NJRES results were driven by periods of cold weather across the country during the first fiscal quarter that created short term increases in demand for natural gas, as well as price volatility and those factors in turn generated higher net financial earnings.

Turning to slide five, you can see the Clean Energy Ventures