UIL Holdings Corporation (NYSE:UIL) Q1 2015 Earnings Conference Call - Final Transcript
May 01, 2015 • 01:00 pm ET
Good afternoon and welcome to the UIL first quarter 2015 earnings conference call. (Operator Instructions) I will now turn the call over to your host, Susan Allen.
Thank you, Tammy, and good morning to everyone. Thank you for joining us to discuss UIL Holdings first quarter 2015 earnings results. I am Susan Allen, Vice President of Investor Relations. Participating on the call today is Jim Torgerson, UIL's President and Chief Executive Officer and Rich Nicholas, UIL's Executive Vice President and Chief Financial Officer. If you do not have a copy of our press release or presentation for today's call, they are on our website at www.uil.com. (Forward-Looking Cautionary Statements)I will now turn the call over to Jim Torgerson.
Thanks, Sue, and good afternoon, everybody, and welcome to the call. Our first quarter was a very interesting one. Obviously, you all know about our sale merger with Iberdrola, but we also had a great first quarter as far as earning go. The first quarter consolidated net income, and this is on Page 4 of our program, was $57.6 million or $1.01 per share compared to $55.5 million and $0.97.
Now, this does include all of the expenditures that were made in relationship to both the Iberdrola sale and also the proposed acquisition of Philadelphia Gas Works and the transmission ROE proceedings. What I want to point out that earnings were about 4% increase over the 2014 first quarter, and recognizing that weather was nearly 20% colder than normal, but it was really only a little over 5% colder than the first quarter of 2014.
And also we saw some very good customer growth that actually helped add to the earnings from our gas operations. So as I said, we had a number of one-time items. And when you sort through all that and looking at the chart at the bottom of that page, you can see that the consolidated earnings were up about 2.75%, excluding all the one-time items and the non-recurring items are related to the merger or acquisitions in both years for Iberdrola and also then Philadelphia Gas Works in 2014. And also we set up a reserve for the FERC ROE proceeding. The latest order really limited to the top of the range by project that we could then recognize an ROE on each project-by-project, so we elected to set up a reserve.
We also want to mention that the New England transmission owners did file a petition for review with the D.C. Circuit Court of Appeals yesterday. Now, let me update you a little bit on the Iberdrola sale. Let me give you a little bit of the history. The transaction does represent a total value of, depending on how you look at it, $50.97 to $54.53. The midpoint is $52.75 per share. And the midpoint of the premium to the closing price on February 25 is 24.6%, but the range is 20.4% to 28.8%. And then with a 30-day average closing price, 30 calendar days, the range