Unitil Corporation (NYSE: UTL) recently announced a net loss of ($0.6) million for the third quarter of 2009, compared to earnings of $1.5 million for the third quarter of 2008. Earnings (loss) per common share (EPS) were ($0.06) for the three months ended September 30, 2009 compared with $0.27 in the third quarter of 2008. For the nine months ended September 30, 2009, the Company reported net income of $8.7 million, an increase of $2.3 million over the same period of 2008 reflecting the acquisitions of Northern Utilities, Inc. (Northern Utilities) and Granite State Gas Transmission, Inc. (Granite State) on December 1, 2008. EPS for the nine months ended September 30 were $0.94 for 2009 compared to $1.12 for 2008, reflecting a higher number of average shares outstanding year over year, discussed below.
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"We continue to see the positive impact of our acquisition of Northern Utilities and the Granite State pipeline on our utility operations," said Robert G. Schoenberger, Unitil's Chairman and Chief Executive Officer. "In these challenging economic times, we are pleased to pass on the benefit of significantly lower energy costs to our customers. We are committed to aggressively manage our costs and to make prudent investments in our system for the benefit of our customers and shareholders."As a result of the acquisitions of Northern Utilities and Granite State, consolidated results for Unitil in the current period may not be directly comparable to prior period results until such time as the acquisitions are fully reflected in both reporting periods. Accordingly, the Company expects that results of operations will be positively affected during the first and fourth quarters, when sales of natural gas are typically higher, and negatively affected during the second and third quarters, when gas operating and maintenance expenses usually exceed sales margins in the period. Between December 2008 and June 2009, UNitil sold 4,970,000 shares of its common stock at a price of $20.00 per share in registered public offerings. The Company used the net proceeds of $93.1 million from these offerings to finance the acquisition of Northern Utilities and Granite State and for capital contributions to Unitil's other distribution utilities and the repayment of short-term debt. Overall, the results of operations and net income are reflected over a higher number of average shares outstanding year over year.Earnings in the third quarter reflect higher gas utility sales margins offset by higher operating, depreciation and interest costs in the quarter as well as a higher number of average shares outstanding year over year, discussed above. Natural gas sales margin increased $5.9 million and $32.4 million in the three and nine months ended September 30, 2009, respectively, compared to the same periods in 2008. These increases primarily reflect the contribution by Northern Utilities, the Company's recently acquired local gas distribution utility. Natural gas sales in the nine month period ended September 30, 2009 reflect a colder winter heating season this year. Average winter temperatures in the UNitil service territories were 6.4% colder than last year.
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