November 18, 2011 at 7:55 PM EST
WGL Holdings, Inc. Reports Fiscal Year 2011 Financial Results; Issues Fiscal Year 2012 Guidance
-
Consolidated earnings per share up — $2.28 per share for fiscal
year 2011 vs. $2.16 per share for fiscal year 2010
-
Consolidated non-GAAP operating earnings — $2.25 per share vs.
$2.27 per share for fiscal year 2010
-
Earnings Guidance for fiscal year 2012 in a range of $2.63 and
$2.75 for GAAP earnings and $2.46 and $2.58 for non-GAAP operating
earnings
WASHINGTON--(BUSINESS WIRE)--
WGL Holdings, Inc. (NYSE: WGL):
Consolidated Results
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 fiscal year ended September 30, 2011, of $117.1 million, or
$2.28 per share, compared to net income of $109.9 million, or $2.16 per
share, reported for the fiscal year ended September 30, 2010.
For the quarter ended September 30, 2011, we reported a net loss
determined in accordance with GAAP of $(30.6) million, or $(0.60) per
share, compared to a net loss of $(26.1) million, or $(0.51) per share,
reported for the same quarter of the prior fiscal year. Reporting a net
loss for quarters ended September 30 is typical due to the seasonal
nature of our utility operations and the corresponding reduced demand
for natural gas during this period.
Financial performance is also evaluated based on non-GAAP operating
earnings (loss). Non-GAAP operating earnings (loss) excludes the effects
of: (i) unrealized mark-to-market gains (losses) on
energy-related derivatives; (ii) certain gains and losses
associated with optimizing the utility segment's system capacity assets
and (iii) 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 this
non-GAAP financial measure, 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 fiscal year ended September 30, 2011, non-GAAP operating
earnings were $115.5 million, or $2.25 per share, compared to non-GAAP
operating earnings of $115.0 million, or $2.27 per share, for the prior
fiscal year. For the fourth quarter of fiscal year 2011, our non-GAAP
operating loss was $(13.4) million, or $(0.26) per share, compared to a
non-GAAP operating loss of $(14.8) million, or $(0.29) per share, for
the same quarter of the prior fiscal year.
"Strong performance in our retail energy-marketing segment and our
ongoing focus on cost control helped us to deliver annual earnings that
exceeded our most recent guidance, recovering to 2010 levels," said
Terry D. McCallister, Chairman and Chief Executive Officer of WGL
Holdings. "I am pleased with this achievement in light of the headwinds
we've faced this year from increased pension and operating costs, and
given the amount of time that has passed since our last rate
adjustments. We have also continued to make investments to support our
strategy of delivering clean and efficient energy solutions, recently
announcing an investment of up to $30 million in an agreement with
Skyline Innovations to install and own commercial-scale solar water
heating systems. We now look forward to further earnings improvements in
2012 as we conclude rate cases in Maryland and Virginia and continue to
benefit from the growth of our non-utility businesses."
Fiscal Year and Fourth Quarter Results by
Business Segment
Regulated Utility Segment
For the fiscal year ended September 30, 2011, our regulated utility
segment reported net income of $69.2 million, or $1.35 per share,
compared to net income of $101.7 million, or $2.00 per share, for the
prior fiscal year. Net income for the 2011 fiscal year was impacted by
one-time adjustments in the fourth quarter as a result of charges
associated with regulatory proceedings. After adjustments, non-GAAP
operating earnings for the regulated utility segment were $86.2 million,
or $1.68 per share, for the fiscal year ended September 30, 2011,
compared to non-GAAP operating earnings of $96.0 million, or $1.89 per
share, for the prior fiscal year. The year-over-year comparisons of
non-GAAP operating earnings reflect: (i) higher employee benefit
expense due to changes in pension and retiree medical plan valuation
assumptions; (ii) the impact of the reduction in the Maryland
depreciation rates effective on June 1, 2010, creating a timing
difference between the recognition and recovery of depreciation expense
in 2010; (iii) higher depreciation expense due to the growth in,
and mix of, our investment in utility plant; (iv) higher costs
for weather protection products related to the District of Columbia; (v)
a comparison to 2010 results which were favorably impacted by
a one-time retroactive recovery of hexane costs and (vi) higher
operating expenses primarily attributable to system software upgrades
and workforce planning initiatives. Partially offsetting these
unfavorable variances were: (i) higher revenues from an increase
in average active customer meters of more than 9,800 over the same
twelve month period of the prior fiscal year; (ii) a decrease in
recurring business process outsourcing costs and (iii) a decrease
in incentive plan benefit costs.
For the quarter ended September 30, 2011, our regulated utility segment
reported a seasonal net loss of $(38.4) million, or $(0.75) per share,
compared to a net loss of $(19.6) million, or $(0.38) per share,
reported for the fourth quarter of the prior fiscal year. After
adjustments, the non-GAAP operating loss for the regulated utility
segment was $(24.2) million, or $(0.47) per share, for the quarter ended
September 30, 2011, compared to a non-GAAP operating loss of $(19.1)
million, or $(0.37) per share, for the same quarter of the prior fiscal
year. This three month comparison of non-GAAP operating earnings
reflects: (i) higher employee benefit expense due to changes in
pension and retiree medical plan valuation assumptions; (ii)
higher depreciation expense due to the growth in, and mix of, our
investment in utility plant and (iii) a comparison to 2010
results which were favorably impacted by a one-time retroactive recovery
of hexane costs. Partially offsetting these unfavorable variances was
lower uncollectible accounts expense which was associated with a reserve
adjustment recorded in the prior year.
Retail Energy-Marketing Segment
For the fiscal year ended September 30, 2011, the retail
energy-marketing segment reported net income of $48.8 million, or $0.95
per share, an increase of $37.7 million, or $0.73 per share, over net
income of $11.1 million, or $0.22 per share, reported for the prior
fiscal year. Non-GAAP operating earnings for the retail energy-marketing
segment were $34.1 million, or $0.67 per share, for the fiscal year
ended September 30, 2011, an increase of $11.3 million, or $0.22 per
share, over non-GAAP operating earnings of $22.8 million, or $0.45 per
share, for the prior fiscal year. For the quarter ended September 30,
2011, the retail energy-marketing segment reported net income of $6.0
million, or $0.12 per share, an increase of $11.7 million, or $0.23 per
share, compared to a net loss of $(5.7) million, or $(0.11) per share,
reported for the same quarter of the prior fiscal year. Non-GAAP
operating earnings for the retail energy-marketing segment were $11.7
million, or $0.23 per share, for the quarter ended September 30, 2011,
an increase of $5.8 million, or $0.11 per share, over non-GAAP operating
earnings of $5.9 million, or $0.12 per share, for the same quarter of
the prior fiscal year.
The differences between GAAP net income and non-GAAP operating earnings
are due to adjustments to eliminate unrealized mark-to-market gains and
losses attributable to certain wholesale energy supply and retail sales
contracts. For both the fiscal year and quarter comparisons, the
increase in non-GAAP operating earnings reflects higher realized natural
gas and electricity margins, partially offset by higher general and
administrative expenses. The increase in natural gas sales margins for
the fiscal year is primarily attributed to higher gas sales volumes
driven by customer growth and higher unit margins related to colder
weather and higher wholesale deliveries. For the quarter, natural gas
margin improvements were driven by customer growth and favorable timing
on the recognition of margins compared to the prior year. Electric sales
margins increased for the full year and fourth quarter primarily due to
higher sales volumes driven by customer growth as well as favorable
weather and pricing conditions in 2011.
Design-Build Energy Systems Segment
For the fiscal year and quarter ended September 30, 2011, the
design-build energy systems segment reported modestly profitable results
which contributed approximately $0.01 per share for both periods. This
compares favorably to the minor loss of approximately $(0.01) per share,
for both the prior fiscal year and the same quarter last year. The
increase in earnings in fiscal year 2011 is primarily due to the
commencement of project work for government agency customers that was
delayed in the prior year. There were no non-GAAP adjustments for this
segment for any of the periods presented.
Other Activities
Other activities included unallocated net costs of the parent company
and the operating results of Capitol Energy Ventures and other
investments that were not considered operating segments. For the year
ended September 30, 2011, other activities reported a net loss of $(1.4)
million, or $(0.03) per share, compared to a net loss of $(2.3) million,
or $(0.05) per share, for the prior fiscal year. For the quarter ended
September 30, 2011, other activities reported net income of $1.5
million, or $0.02 per share, an increase of $2.1 million, or $0.03 per
share, compared to a net loss of $(0.6) million, or $(0.01) per share,
for the same period of the prior fiscal year. After adjustments to
eliminate mark-to-market gains and losses, the non-GAAP operating loss
for other activities was $(5.4) million, or $(0.11) per share, for the
year ended September 30, 2011, compared to an operating loss of $(3.1)
million, or $(0.06) per share, for the prior fiscal year. For the
quarter ended September 30, 2011, other activities reported non-GAAP
operating losses of $(1.3) million, or $(0.03) per share, compared to
$(1.5) million, or $(0.03) per share, for the same period of the prior
fiscal year. Non-GAAP operating losses for the year were higher than in
the prior year principally due to higher initial expenses associated
with activities of our non-utility wholesale energy company, Capitol
Energy Ventures that are expected to contribute revenues in subsequent
periods.
Earnings Outlook
Our GAAP earnings estimate for fiscal year 2012 is in a range of $2.63
per share to $2.75 per share. This estimate includes projected fiscal
year 2012 earnings from our regulated utility segment in a range of
$1.81 per share to $1.87 per share and projected fiscal year 2012
earnings from our unregulated business segments in a range of $0.82 per
share to $0.88 per share.
We are also providing a consolidated earnings estimate for fiscal year
2012 based on non-GAAP operating earnings in a range of $2.46 per share
to $2.58 per share. This estimate includes projected fiscal year 2012
non-GAAP operating earnings from our regulated utility segment in a
range of $1.80 per share to $1.86 per share, and projected fiscal year
2012 non-GAAP operating earnings from our unregulated business segments
in a range of $0.66 per share to $0.72 per share. Refer to the
"Reconciliation of GAAP Earnings Guidance to Non-GAAP Earnings Guidance"
attached to this press release for a reconciliation of our GAAP earnings
per share estimate to our estimate based on non-GAAP operating earnings
per share.
We assume no obligation to update this guidance. The absence of any
statement by us in the future should not be presumed to represent an
affirmation of this earnings guidance. For the assumptions underlying
this guidance, please refer to the slides accompanying our webcast that
will be posted to the WGL Holdings website, www.wglholdings.com.
Other Information
We will hold a conference call at 2 p.m. Eastern Time on November 21,
2011, to discuss our fourth quarter and fiscal year 2011 financial
results. The live conference call will be available to the public via a
link located on the WGL Holdings website, www.wglholdings.com.
To hear the live webcast, click on the "Webcast" link located on the
home page of the referenced site. The webcast and related slides will be
archived on the WGL Holdings website through December 21, 2011.
Headquartered in Washington, D.C., WGL Holdings, Inc. has three
operating segments: (i) the regulated utility segment which
primarily consists of Washington Gas, a natural gas utility that serves
over one million customers throughout metropolitan Washington, D.C., and
the surrounding region; (ii) the retail-energy marketing segment
which consists of Washington Gas Energy Services, Inc., a third-party
marketer that competitively sells natural gas and electricity and (iii)
the design-build energy systems segment, which consists of Washington
Gas Energy Systems, Inc., a provider of design-build energy efficiency
solutions to government and commercial clients. Additional information
about WGL Holdings, Inc. is available on our website, www.wglholdings.com.
Unless otherwise noted, earnings per share amounts are presented on a
diluted basis, and are based on weighted average common and common
equivalent shares outstanding.
Please see the attached comparative statements for additional
information on our operating results. Also attached to this news release
are reconciliations of net income determined in accordance with GAAP to
non-GAAP operating earnings (loss) for both our consolidated and segment
results as well as reconciliations of our GAAP earnings guidance to our
non-GAAP earnings guidance.
Forward-Looking Statements
This news release and other statements by us include forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 with respect to the outlook for earnings, revenues
and other future financial business performance or strategies and
expectations. Forward-looking statements are typically identified
by words such as, but not limited to, "estimates," "expects,"
"anticipates," "intends," "believes," "plans," and similar expressions,
or future or conditional verbs such as "will," "should," "would," and
"could." Although we believe such forward-looking statements are
based on reasonable assumptions, we cannot give assurance that every
objective will be achieved. Forward-looking statements speak only
as of today, and we assume no duty to update them. Factors that
could cause actual results to differ materially from those expressed or
implied include, but are not limited to, general economic conditions and
the factors discussed under the "Risk Factors" heading in our most
recent annual report on Form 10-K and other documents we have filed
with, or furnished to, the U.S. Securities and Exchange Commission.
WGL Holdings, Inc. Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
(In thousands)
|
|
2011
|
|
2010
|
ASSETS
|
|
|
|
|
Property, Plant and Equipment
|
|
|
|
|
At original cost
|
$
|
3,575,973
|
|
$
|
3,383,364
|
|
Accumulated depreciation and amortization
|
|
(1,086,072
|
)
|
|
(1,037,156
|
)
|
Net property, plant and equipment
|
|
2,489,901
|
|
|
2,346,208
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
Cash and cash equivalents
|
|
4,332
|
|
|
8,849
|
|
Accounts receivable, net
|
|
296,423
|
|
|
298,212
|
|
Storage gas — at cost (first-in, first-out)
|
|
290,394
|
|
|
242,223
|
|
Other
|
|
133,584
|
|
|
167,981
|
|
Total current assets
|
|
724,733
|
|
|
717,265
|
|
Deferred Charges and Other Assets
|
|
594,400
|
|
|
580,421
|
|
Total Assets
|
$
|
3,809,034
|
|
$
|
3,643,894
|
|
|
|
|
|
|
CAPITALIZATION AND LIABILITIES
|
|
|
|
|
Capitalization
|
|
|
|
|
Common shareholders' equity
|
$
|
1,202,715
|
|
$
|
1,153,395
|
|
Washington Gas Light Company preferred stock
|
|
28,173
|
|
|
28,173
|
|
Long-term debt
|
|
587,213
|
|
|
592,875
|
|
Total capitalization
|
|
1,818,101
|
|
|
1,774,443
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
Notes payable and current maturities of long-term debt
|
|
116,525
|
|
|
130,515
|
|
Accounts payable and other accrued liabilities
|
|
279,434
|
|
|
225,362
|
|
Other
|
|
180,781
|
|
|
188,174
|
|
Total current liabilities
|
|
576,740
|
|
|
544,051
|
|
Deferred Credits
|
|
1,414,193
|
|
|
1,325,400
|
|
Total Capitalization and Liabilities
|
$
|
3,809,034
|
|
$
|
3,643,894
|
|
|
|
|
|
|
|
|
WGL Holdings, Inc. Consolidated Statements of Income (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Fiscal Year Ended September 30,
|
(In thousands, except per share data)
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
2010
|
|
OPERATING REVENUES
|
|
|
|
|
|
|
|
Utility
|
$
|
115,523
|
|
$
|
127,250
|
|
$
|
1,264,580
|
|
1,297,786
|
|
Non-utility
|
|
332,602
|
|
|
337,892
|
|
|
1,486,921
|
|
1,411,090
|
|
Total Operating Revenues
|
|
448,125
|
|
|
465,142
|
|
|
2,751,501
|
|
2,708,876
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
Utility cost of gas
|
|
39,714
|
|
|
42,108
|
|
|
595,678
|
|
618,308
|
|
Non-utility cost of energy-related sales
|
|
301,838
|
|
|
331,803
|
|
|
1,334,773
|
|
1,340,774
|
|
Operation and maintenance
|
|
93,654
|
|
|
78,239
|
|
|
339,529
|
|
309,089
|
|
Depreciation and amortization
|
|
23,201
|
|
|
21,979
|
|
|
91,325
|
|
94,011
|
|
General taxes and other assessments
|
|
22,906
|
|
|
22,618
|
|
|
146,421
|
|
122,797
|
|
Total Operating Expenses
|
|
481,313
|
|
|
496,747
|
|
|
2,507,726
|
|
2,484,979
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
(33,188
|
)
|
|
(31,605
|
)
|
|
243,775
|
|
223,897
|
|
Other Income (Expenses) — Net
|
|
2,242
|
|
|
(213
|
)
|
|
2,291
|
|
931
|
|
Interest Expense
|
|
|
|
|
|
|
|
Interest on long-term debt
|
|
10,057
|
|
|
9,597
|
|
|
39,976
|
|
39,413
|
|
AFUDC and other — net
|
|
(61
|
)
|
|
511
|
|
|
570
|
|
654
|
|
Total Interest Expense
|
|
9,996
|
|
|
10,108
|
|
|
40,546
|
|
40,067
|
|
INCOME (LOSS) BEFORE INCOME TAXES
|
|
(40,942
|
)
|
|
(41,926
|
)
|
|
205,520
|
|
184,761
|
|
INCOME TAX EXPENSE (BENEFIT)
|
|
(10,710
|
)
|
|
(16,113
|
)
|
|
87,150
|
|
73,556
|
|
NET INCOME (LOSS)
|
|
(30,232
|
)
|
|
(25,813
|
)
|
|
118,370
|
|
111,205
|
|
Dividends on Washington Gas preferred stock
|
|
330
|
|
|
330
|
|
|
1,320
|
|
1,320
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK
|
$
|
(30,562
|
)
|
$
|
(26,143
|
)
|
$
|
117,050
|
|
109,885
|
|
|
|
|
|
|
|
|
|
AVERAGE COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
|
Basic
|
|
51,324
|
|
|
50,871
|
|
|
51,195
|
|
50,538
|
|
Diluted
|
|
51,324
|
|
|
50,871
|
|
|
51,295
|
|
50,765
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER AVERAGE COMMON SHARE
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.60
|
)
|
$
|
(0.51
|
)
|
$
|
2.29
|
|
2.17
|
|
Diluted
|
$
|
(0.60
|
)
|
$
|
(0.51
|
)
|
$
|
2.28
|
|
2.16
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Applicable To Common Stock — By Segment ($000):
|
|
|
|
|
|
|
|
|
Regulated utility
|
$
|
(38,424
|
)
|
$
|
(19,550
|
)
|
$
|
69,172
|
|
101,698
|
|
|
|
|
|
|
|
|
|
Non-utility operations:
|
|
|
|
|
|
|
|
Retail energy-marketing
|
|
6,029
|
|
|
(5,689
|
)
|
|
48,817
|
|
11,124
|
|
Design-build energy systems
|
|
302
|
|
|
(255
|
)
|
|
464
|
|
(635
|
)
|
Other activities
|
|
1,531
|
|
|
(649
|
)
|
|
(1,403
|
)
|
(2,302
|
)
|
Total non-utility
|
|
7,862
|
|
|
(6,593
|
)
|
|
47,878
|
|
8,187
|
|
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK
|
$
|
(30,562
|
)
|
$
|
(26,143
|
)
|
$
|
117,050
|
|
109,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WGL Holdings, Inc. Consolidated Financial and
Operating Statistics (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing Market Price — end of period
|
|
|
|
|
|
|
$
|
39.07
|
|
$
|
37.78
|
|
52-Week Market Price Range
|
|
|
|
|
|
$41.99-$34.69
|
$38.08-$30.96 |
|
Price Earnings Ratio
|
|
|
|
|
|
|
|
17.1
|
|
|
17.4
|
|
Annualized Dividends Per Share
|
|
|
|
|
|
|
$
|
1.55
|
|
$
|
1.51
|
|
Dividend Yield
|
|
|
|
|
|
|
|
4.0
|
%
|
|
4.0
|
%
|
Return on Average Common Equity
|
|
|
|
|
|
|
|
9.9
|
%
|
|
9.8
|
%
|
Total Interest Coverage (times)
|
|
|
|
|
|
|
|
5.8
|
|
|
5.5
|
|
Book Value Per Share — end of period
|
|
|
|
|
|
|
$
|
23.42
|
|
$
|
22.63
|
|
Common Shares Outstanding — end of period (thousands)
|
|
|
|
|
|
|
|
51,365
|
|
|
50,975
|
|
|
|
|
|
|
|
|
|
|
|
|
UTILITY GAS STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Fiscal Year Ended September 30,
|
|
|
|
|
|
|
(In thousands)
|
2011
|
|
2010
|
|
|
|
2011
|
|
|
2010
|
|
Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
Gas Sold and Delivered
|
|
|
|
|
|
|
|
|
|
|
Residential — Firm
|
$
|
57,890
|
$
|
70,883
|
|
$
|
|
815,843
|
$
|
|
864,788
|
|
Commercial and Industrial — Firm
|
|
17,647
|
|
18,384
|
|
|
|
195,659
|
|
|
193,212
|
|
Commercial and Industrial — Interruptible
|
|
360
|
|
507
|
|
|
|
2,490
|
|
|
3,803
|
|
Electric Generation
|
|
275
|
|
275
|
|
|
|
1,100
|
|
|
1,100
|
|
|
|
76,172
|
|
90,049
|
|
|
|
1,015,092
|
|
|
1,062,903
|
|
Gas Delivered for Others
|
|
|
|
|
|
|
|
|
|
|
Firm
|
|
21,591
|
|
21,101
|
|
|
|
169,127
|
|
|
160,952
|
|
Interruptible
|
|
7,965
|
|
8,054
|
|
|
|
50,573
|
|
|
47,116
|
|
Electric Generation
|
|
205
|
|
279
|
|
|
|
458
|
|
|
489
|
|
|
|
29,761
|
|
29,434
|
|
|
|
220,158
|
|
|
208,557
|
|
|
|
105,933
|
|
119,483
|
|
|
|
1,235,250
|
|
|
1,271,460
|
|
Other
|
|
9,590
|
|
7,767
|
|
|
|
29,330
|
|
|
26,326
|
|
Total
|
$
|
115,523
|
$
|
127,250
|
|
$
|
|
1,264,580
|
$
|
|
1,297,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Fiscal Year Ended September 30,
|
|
|
|
|
|
|
(In thousands of therms)
|
|
2011
|
|
2010
|
|
|
|
2011
|
|
|
2010
|
|
Gas Sales and Deliveries
|
|
|
|
|
|
|
|
|
|
|
Gas Sold and Delivered
|
|
|
|
|
|
|
|
|
|
|
Residential — Firm
|
|
29,722
|
|
36,115
|
|
|
|
677,558
|
|
|
662,357
|
|
Commercial and Industrial — Firm
|
|
13,882
|
|
14,570
|
|
|
|
179,207
|
|
|
170,534
|
|
Commercial and Industrial — Interruptible
|
|
487
|
|
445
|
|
|
|
2,573
|
|
|
3,649
|
|
|
|
44,091
|
|
51,130
|
|
|
|
859,338
|
|
|
836,540
|
|
Gas Delivered for Others
|
|
|
|
|
|
|
|
|
|
|
Firm
|
|
39,640
|
|
44,115
|
|
|
|
501,187
|
|
|
481,099
|
|
Interruptible
|
|
44,127
|
|
45,373
|
|
|
|
271,421
|
|
|
267,823
|
|
Electric Generation
|
|
73,153
|
|
104,839
|
|
|
|
140,557
|
|
|
172,995
|
|
|
|
156,920
|
|
194,327
|
|
|
|
913,165
|
|
|
921,917
|
|
Total
|
|
201,011
|
|
245,457
|
|
|
|
1,772,503
|
|
|
1,758,457
|
|
WASHINGTON GAS ENERGY SERVICES
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Sales
|
|
|
|
|
|
|
|
|
|
|
Therm Sales (thousands of therms)
|
|
68,152
|
|
63,181
|
|
|
|
678,424
|
|
|
593,319
|
|
Number of Customers (end of period)
|
|
172,200
|
|
160,900
|
|
|
|
172,200
|
|
|
160,900
|
|
Electricity Sales
|
|
|
|
|
|
|
|
|
|
|
Electricity Sales (thousands of kWhs)
|
|
3,047,798
|
|
2,909,970
|
|
|
|
10,793,095
|
|
|
9,276,202
|
|
Number of Accounts (end of period)
|
|
182,500
|
|
154,900
|
|
|
|
182,500
|
|
|
154,900
|
|
UTILITY GAS PURCHASED EXPENSE
|
|
|
|
|
|
|
|
|
|
|
(excluding asset optimization)
|
|
61.88
|
¢
|
74.85
|
|
¢
|
|
67.57
|
¢
|
|
74.72
|
¢
|
HEATING DEGREE DAYS
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
14
|
|
-
|
|
|
|
3,999
|
|
|
3,825
|
|
Normal
|
|
14
|
|
14
|
|
|
|
3,770
|
|
|
3,765
|
|
Percent Colder (Warmer) than Normal
|
|
-
|
%
|
(100.0
|
)
|
%
|
|
6.1
|
%
|
|
1.6
|
%
|
Average Active Customer Meters
|
|
1,084,110
|
|
1,074,396
|
|
|
|
1,084,388
|
|
|
1,074,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WGL HOLDINGS, INC.
USE OF NON-GAAP OPERATING EARNINGS (LOSS)
(Unaudited)
The attached reconciliations are provided to clearly identify
adjustments made to net income calculated in accordance with GAAP to
derive non-GAAP operating earnings (loss). Management believes non-GAAP
operating earnings (loss) provides a more meaningful representation of
our earnings from ongoing operations by adjusting for the effects of:
(i) unrealized mark-to-market gains and losses from energy-related
derivatives; (ii) certain gains and losses associated with
optimizing the utility segment's capacity assets and (iii)
certain unusual transactions. This presentation facilitates analysis by
providing a consistent and comparable measure to help management,
investors and analysts better understand and evaluate our operating
results and performance trends, and assist in analyzing period-to-period
comparisons. Additionally, we use this non-GAAP measure to report to the
board of directors and to evaluate management's performance.
The economic substance underlying our adjustments to calculate non-GAAP
operating earnings (loss) is as follows:
-
We exclude unrealized mark-to-market adjustments for our
energy-related derivatives to provide a more transparent and accurate
view of the ongoing financial results of our operations. For our
regulated utility segment, we use derivatives to substantially lock-in
a future profit. This profit does not change even though the
unrealized fair value of the underlying derivatives may change
period-to-period, until settlement. For our retail energy-marketing
segment, we use derivatives to lock-in a price for energy supplies to
match future retail sales commitments. These derivatives are subject
to mark-to-market treatment, while most of the corresponding retail
sales contracts are not. With the exception of certain transactions
related to the optimization of system capacity assets, as discussed
below, when these derivatives settle the economic impact is reflected
in our non-GAAP operating results, as we are only removing the interim
unrealized mark-to-market amounts that are ultimately reversed when
the derivatives are settled.
-
We adjust for certain gains and losses associated with the
optimization of the regulated utility segment's capacity assets.
Transactions to optimize our system storage capacity assets are
structured to lock-in a profit that is recognized, for regulatory
purposes, as the natural gas is delivered to end-use customers. These
transactions may result in gains and losses that consist of: (i)
the settlement of physical and financial derivatives related to the
management of our storage inventory and (ii) lower-of-cost or
market adjustments from the difference between the cost of physical
inventory compared to the amount realized through rates when the
inventory is ultimately delivered to customers. In our GAAP results,
due to timing differences between when the physical and financial
transactions settle, and when the natural gas is sold to the end-use
customer, gains and losses associated with our storage optimization
strategy may be spread across different reporting periods. For
purposes of calculating non-GAAP operating earnings (loss), gains and
losses associated with these transactions are included in the
reporting period when the gas is delivered to the end-use customer and
the ultimate profit is realized for regulatory purposes. In addition,
losses incurred to terminate long-term contracts affecting
transportation capacity optimization margins of future periods are
included in the reporting period when the transportation capacity
optimization margins earned as a result of the termination are
realized. These adjustments reflect a better matching between the
economic costs and benefits of the overall optimization strategy.
We
also exclude valuation adjustments to the carrying value of non-system
natural gas storage inventory. This inventory is held solely to
support asset optimization transactions. Valuation adjustments to
reflect lower-of-cost or market under current accounting standards may
not be representative of the margins that will be realized and shared
with our utility ratepayers. Non-GAAP earnings reflect actual margins
realized based on the unadjusted historical cost in storage when
inventory is withdrawn and sold.
-
We exclude certain unusual transactions that may be the result of
regulatory or legal decisions, or items that we may deem outside of
the ordinary course of business.
There are limits in using non-GAAP operating earnings (loss) to analyze
our results, as they are not prepared in accordance with GAAP and may be
different from non-GAAP financial measures used by other companies. In
addition, using non-GAAP operating earnings (loss) per share to analyze
our earnings may have limited value as it excludes certain items that
may have a material impact on our reported financial results. We
compensate for these limitations by providing investors with the
attached reconciliations to net income, the most directly comparable
GAAP financial measure.
WGL HOLDINGS, INC. (Consolidating by Segment) RECONCILIATION
OF GAAP NET INCOME (LOSS) TO NON-GAAP OPERATING
EARNINGS (LOSS) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30, 2011
|
(In thousands, except per share data)
|
Regulated Utility
|
Retail Energy- Marketing
|
Design-Build Energy Systems
|
Other Activities*
|
Consolidated
|
GAAP net income (loss)
|
$
|
69,172
|
|
$
|
48,817
|
|
$
|
464
|
|
$
|
(1,403
|
)
|
$
|
117,050
|
|
Adjusted for (items shown after-tax):
|
|
|
|
|
|
|
|
|
|
|
Unrealized mark-to-market loss (gain) on energy-related derivatives
(a)
|
|
7,932
|
|
|
(14,684
|
)
|
|
-
|
|
|
(4,274
|
)
|
|
(11,026
|
)
|
Storage optimization program (b)
|
|
(1,305
|
)
|
|
-
|
|
|
-
|
|
|
301
|
|
|
(1,004
|
)
|
Amortization of derivative contract termination (c)
|
|
(1,065
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,065
|
)
|
Weather derivative products (d)
|
|
290
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
290
|
|
Competitive service provider imbalance cash settlement (e)
|
|
3,205
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,205
|
|
Regulatory asset write-off — outsourcing implementation
costs (f)
|
|
3,291
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,291
|
|
Regulatory asset write-off — tax effect Medicare Part D(g)
|
|
4,720
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4,720
|
|
Non-GAAP operating earnings (loss)
|
$
|
86,240
|
|
$
|
34,133
|
|
$
|
464
|
|
$
|
(5,376
|
)
|
$
|
115,461
|
|
GAAP diluted earnings (loss) per average common share (51,295
shares)
|
$
|
1.35
|
|
$
|
0.95
|
|
$
|
0.01
|
|
$
|
(0.03
|
)
|
$
|
2.28
|
|
Per share effect of non-GAAP adjustments
|
|
0.33
|
|
|
(0.28
|
)
|
|
-
|
|
|
(0.08
|
)
|
|
(0.03
|
)
|
Non-GAAP operating earnings (loss) per share
|
$
|
1.68
|
|
$
|
0.67
|
|
$
|
0.01
|
|
$
|
(0.11
|
)
|
$
|
2.25
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30, 2010
|
(In thousands, except per share data)
|
Regulated Utility
|
Retail Energy- Marketing
|
Design-Build Energy Systems
|
Other Activities^
|
Consolidated
|
GAAP net income (loss)
|
$
|
101,698
|
|
$
|
11,124
|
|
$
|
(635
|
)
|
$
|
(2,302
|
)
|
$
|
109,885
|
|
Adjusted for (items shown after-tax):
|
|
|
|
|
|
|
|
|
|
|
Unrealized mark-to-market loss (gain) on energy-related derivatives
(a)
|
|
(7,234
|
)
|
|
11,719
|
|
|
-
|
|
|
(812
|
)
|
|
3,673
|
|
Storage optimization program (b)
|
|
204
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
204
|
|
Amortization of derivative contract termination (c)
|
|
(964
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(964
|
)
|
Weather derivative products (d)
|
|
110
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
110
|
|
Partial settlement of the Supplemental Executive Retirement Program
(h)
|
|
2,140
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,140
|
|
Non-GAAP operating earnings (loss)
|
$
|
95,954
|
|
$
|
22,843
|
|
$
|
(635
|
)
|
$
|
(3,114
|
)
|
$
|
115,048
|
|
GAAP diluted earnings (loss) per average common share (50,765
shares)
|
$
|
2.00
|
|
$
|
0.22
|
|
$
|
(0.01
|
)
|
$
|
(0.05
|
)
|
$
|
2.16
|
|
Per share effect of non-GAAP adjustments
|
|
(0.11
|
)
|
|
0.23
|
|
|
-
|
|
|
(0.01
|
)
|
|
0.11
|
|
Non-GAAP operating earnings (loss) per share
|
$
|
1.89
|
|
$
|
0.45
|
|
$
|
(0.01
|
)
|
$
|
(0.06
|
)
|
$
|
2.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2011
|
(In thousands, except per share data)
|
Regulated Utility
|
Retail Energy- Marketing
|
Design-Build Energy Systems
|
Other Activities*
|
Consolidated
|
GAAP net income (loss)
|
$
|
(38,424
|
)
|
$
|
6,029
|
|
$
|
302
|
|
$
|
1,531
|
|
$
|
(30,562
|
)
|
Adjusted for (items shown after-tax):
|
|
|
|
|
|
|
|
|
|
|
Unrealized mark-to-market loss (gain) on energy-related derivatives
(a)
|
|
2,079
|
|
|
5,718
|
|
|
-
|
|
|
(3,157
|
)
|
|
4,640
|
|
Storage optimization program (b)
|
|
523
|
|
|
-
|
|
|
-
|
|
|
301
|
|
|
824
|
|
Amortization of derivative contract termination (c)
|
|
9
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9
|
|
Weather derivative products (d)
|
|
441
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
441
|
|
Competitive service provider imbalance cash settlement (e)
|
|
3,205
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,205
|
|
Regulatory asset write-off — outsourcing implementation
costs(f)
|
|
3,291
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,291
|
|
Regulatory asset write-off — tax effect Medicare Part D(g)
|
|
4,720
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4,720
|
|
Non-GAAP operating earnings (loss)
|
$
|
(24,156
|
)
|
$
|
11,747
|
|
$
|
302
|
|
$
|
(1,325
|
)
|
$
|
(13,432
|
)
|
GAAP diluted earnings (loss) per average common share (51,324
shares)
|
$
|
(0.75
|
)
|
$
|
0.12
|
|
$
|
0.01
|
|
$
|
0.02
|
|
$
|
(0.60
|
)
|
Per share effect of non-GAAP adjustments
|
|
0.28
|
|
|
0.11
|
|
|
-
|
|
|
(0.05
|
)
|
|
0.34
|
|
Non-GAAP operating earnings (loss) per share
|
$
|
(0.47
|
)
|
$
|
0.23
|
|
$
|
0.01
|
|
$
|
(0.03
|
)
|
$
|
(0.26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2010
|
(In thousands, except per share data)
|
Regulated Utility
|
Retail Energy- Marketing
|
Design-Build Energy Systems
|
Other Activities^
|
Consolidated
|
GAAP net loss
|
$
|
(19,550
|
)
|
$
|
(5,689
|
)
|
$
|
(255
|
)
|
$
|
(649
|
)
|
$
|
(26,143
|
)
|
Adjusted for (items shown after-tax):
|
|
|
|
|
|
|
|
|
|
|
Unrealized mark-to-market loss (gain) on energy-related derivatives
(a)
|
|
929
|
|
|
11,628
|
|
|
-
|
|
|
(812
|
)
|
|
11,745
|
|
Storage optimization program (b)
|
|
(554
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(554
|
)
|
Weather derivative products (d)
|
|
111
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
111
|
|
Non-GAAP operating earnings (loss)
|
$
|
(19,064
|
)
|
$
|
5,939
|
|
$
|
(255
|
)
|
$
|
(1,461
|
)
|
$
|
(14,841
|
)
|
GAAP diluted loss per average common share (50,871 shares)
|
$
|
(0.38
|
)
|
$
|
(0.11
|
)
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
$
|
(0.51
|
)
|
Per share effect of non-GAAP adjustments
|
|
0.01
|
|
|
0.23
|
|
|
-
|
|
|
(0.02
|
)
|
|
0.22
|
|
Non-GAAP operating earnings (loss) per share
|
$
|
(0.37
|
)
|
$
|
0.12
|
|
$
|
(0.01
|
)
|
$
|
(0.03
|
)
|
$
|
(0.29
|
)
|
* Other Activities for fiscal year 2011 include the results of
operations of Capitol Energy Ventures and include non-GAAP
adjustments for net unrealized losses (gains) on energy-related
derivatives. Per share amounts may include adjustments for
rounding.
|
^ Other Activities for fiscal year 2010 may include adjustments
for rounding in its per share amounts.
|
(Footnote references are described on the following page.)
|
WGL HOLDINGS, INC. (Consolidated by Quarter) RECONCILIATION
OF GAAP NET INCOME (LOSS) TO NON-GAAP OPERATING
EARNINGS (LOSS) (Unaudited)
|
|
Fiscal Year 2011
|
|
|
Quarterly Period Ended (i)
|
(In thousands, except per share data)
|
Dec. 31 |
Mar. 31 |
Jun. 30 |
Sept. 30 |
Fiscal Year
|
GAAP net income (loss)
|
$
|
65,232
|
|
$
|
79,428
|
|
$
|
2,952
|
|
$
|
(30,562
|
)
|
$
|
117,050
|
|
Adjusted for (items shown after-tax):
|
|
|
|
|
|
|
|
|
|
|
Unrealized mark-to-market (gain) loss on energy-related derivatives
(a)
|
|
(10,667
|
)
|
|
236
|
|
|
(5,235
|
)
|
|
4,640
|
|
|
(11,026
|
)
|
Storage optimization program (b)
|
|
(1,720
|
)
|
|
(637
|
)
|
|
529
|
|
|
824
|
|
|
(1,004
|
)
|
Amortization of derivative contract termination (c)
|
|
(429
|
)
|
|
(645
|
)
|
|
-
|
|
|
9
|
|
|
(1,065
|
)
|
Weather derivative products (d)
|
|
(182
|
)
|
|
58
|
|
|
(27
|
)
|
|
441
|
|
|
290
|
|
Competitive Service Provider imbalance cash settlement (e)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,205
|
|
|
3,205
|
|
Regulatory asset write-off — outsourcing implementation
costs(f)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,291
|
|
|
3,291
|
|
Regulatory asset write-off — tax effect Medicare Part D(g)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4,720
|
|
|
4,720
|
|
Non-GAAP operating earnings (loss)
|
$
|
52,234
|
|
$
|
78,440
|
|
$
|
(1,781
|
)
|
$
|
(13,432
|
)
|
$
|
115,461
|
|
Diluted average common shares outstanding
|
|
51,143
|
|
|
51,242
|
|
|
51,314
|
|
|
51,324
|
|
|
51,295
|
|
GAAP diluted earnings (loss) per average common share
|
$
|
1.28
|
|
$
|
1.55
|
|
$
|
0.06
|
|
$
|
(0.60
|
)
|
$
|
2.28
|
|
Per share effect of non-GAAP adjustments
|
|
(0.26
|
)
|
|
(0.02
|
)
|
|
(0.09
|
)
|
|
0.34
|
|
|
(0.03
|
)
|
Non-GAAP operating earnings (loss) per share
|
$
|
1.02
|
|
$
|
1.53
|
|
$
|
(0.03
|
)
|
$
|
(0.26
|
)
|
$
|
2.25
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2010
|
|
|
Quarterly Period Ended (i)
|
(In thousands, except per share data)
|
Dec. 31 |
Mar. 31 |
Jun. 30 |
Sept. 30 |
Fiscal Year
|
GAAP net income (loss)
|
$
|
47,641
|
|
|
78,706
|
|
$
|
9,681
|
|
$
|
(26,143
|
)
|
$
|
109,885
|
|
Adjusted for (items shown after-tax):
|
|
|
|
|
|
|
|
|
|
|
Unrealized mark-to-market (gain) loss on energy-related derivatives
(a)
|
|
2,371
|
|
|
5,147
|
|
|
(15,590
|
)
|
|
11,745
|
|
|
3,673
|
|
Storage optimization program (b)
|
|
385
|
|
|
871
|
|
|
(498
|
)
|
|
(554
|
)
|
|
204
|
|
Amortization of derivative contract termination (c)
|
|
(385
|
)
|
|
(579
|
)
|
|
-
|
|
|
-
|
|
|
(964
|
)
|
Weather derivative products (d)
|
|
786
|
|
|
(1,424
|
)
|
|
637
|
|
|
111
|
|
|
110
|
|
Partial settlement of the Supplemental Executive Retirement Program
(h)
|
|
-
|
|
|
-
|
|
|
2,140
|
|
|
-
|
|
|
2,140
|
|
Non-GAAP operating earnings (loss)
|
$
|
50,798
|
|
$
|
82,721
|
|
$
|
(3,630
|
)
|
$
|
(14,841
|
)
|
$
|
115,048
|
|
Diluted average common shares outstanding
|
|
50,429
|
|
|
50,572
|
|
|
50,918
|
|
|
50,871
|
|
|
50,765
|
|
GAAP diluted earnings (loss) per average common share
|
$
|
0.94
|
|
$
|
1.56
|
|
$
|
0.19
|
|
$
|
(0.51
|
)
|
$
|
2.16
|
|
Per share effect of non-GAAP adjustments
|
|
0.07
|
|
|
0.08
|
|
|
(0.26
|
)
|
|
0.22
|
|
|
0.11
|
|
Non-GAAP operating earnings (loss) per share
|
$
|
1.01
|
|
$
|
1.64
|
|
$
|
(0.07
|
)
|
$
|
(0.29
|
)
|
$
|
2.27
|
|
Footnotes:
|
|
|
|
(a)
|
|
Represents the change in the unrealized mark-to-market
positions of our energy-related derivatives that were recorded to
income during the period. For the regulated utility segment, to
the extent that our unrealized mark-to-market gains and losses are
not shared with customers, these amounts are recorded directly to
income. All unrealized mark-to-market gains and losses for the
retail energy-marketing segment and to Capitol Energy Ventures in
the other activities segment are recorded directly to income.
|
|
|
|
(b)
|
|
Adjustments to shift the timing of storage optimization margins
from the periods recognized for GAAP purposes to the periods in
which such margins are recognized for regulatory sharing purposes.
In addition, lower-of-cost-or-market adjustments related to system
and non-system storage optimization are eliminated for non-GAAP
reporting, since the margins will be recognized for regulatory
purposes when the withdrawals are made at the unadjusted
historical cost of storage inventory.
|
|
|
|
(c)
|
|
During the fourth quarter of fiscal year 2009, Washington Gas
terminated a long-term energy-related derivative contract related
to its transportation capacity optimization and recognized an
associated loss of $3.9 million for GAAP purposes. For non-GAAP
purposes, this loss is being recognized in this period to be
matched against the margins earned in the quarters that would have
been constrained if the contract had not been terminated.
|
|
|
|
(d)
|
|
Represents weather derivatives that are recorded at fair value
rather than being valued based on actual variations from normal
weather. Thus, any portion of recorded fair value that is not
directly offset by an increase/decrease in revenue due to weather
is excluded for non-GAAP purposes.
|
|
|
|
(e)
|
|
Represents a refund to customers ordered by the Public Service
Commission of Maryland (PSC of MD) in September 2011 associated
with a cash settlement of gas imbalances with competitive service
providers. The order remanded the matter to a hearing examiner to
determine the amount of the refund as the difference between
charges made to customers and the charges that would have been
incurred had the imbalances been made up through volumetric
adjustments.
|
|
|
|
(f)
|
|
Represents a write-off of a previously approved Maryland
regulatory asset established in 2008 for the initial
implementation costs associated with our business process
outsourcing plan. As a result of the rate case in Maryland, these
costs are no longer probable of recovery and therefore do not
qualify for regulatory asset treatment.
|
|
|
|
(g)
|
|
In March 2010, the Patient Protection and Affordable Care Act
(PPACA) eliminated future Medicare Part D (Med D) tax benefits for
Washington Gas' tax years beginning after September 30, 2013. The
deferred tax asset related to this benefit was reversed and a
regulatory asset was established to reflect the probable recovery
of higher future tax expense from customers. Based on positions
taken by the Virginia State Corporation Commission (SCC of VA) in
Washington Gas' rate case and in other cases, we determined that
it was not probable that the SCC of VA would permit recovery of
this asset.
|
|
|
|
(h)
|
|
Represents the partial settlement of the Supplemental Employee
Retirement Program due to lump sum distributions to certain
retired employees that occurred in 2010.
|
|
|
|
(i)
|
|
Quarterly earnings per share may not sum to year-to-date or
annual earnings per share as quarterly calculations are based on
weighted average common and common equivalent shares outstanding,
which may vary for each of those periods.
|
|
|
|
WGL HOLDINGS, INC. RECONCILIATION OF GAAP EARNINGS
GUIDANCE TO NON-GAAP EARNINGS GUIDANCE FISCAL
YEAR ENDING SEPTEMBER 30, 2012
|
|
Consolidated
|
|
|
Low
|
|
High
|
GAAP Earnings Per Share Guidance Range
|
$
|
2.63
|
|
$
|
2.75
|
|
Adjusted for:
|
|
|
|
|
Unrealized mark-to-market gain on energy-related derivatives
(a) |
|
(0.16
|
)
|
|
(0.16
|
)
|
Storage optimization program (b)
|
|
0.02
|
|
|
0.02
|
|
Retroactive depreciation expense adjustment (c)
|
|
(0.03
|
)
|
|
(0.03
|
)
|
Non-GAAP Operating Earnings Per Share Guidance Range
|
$
|
2.46
|
|
$
|
2.58
|
|
|
|
|
|
|
|
|
|
|
|
Regulated Utility Segment
|
|
|
Low
|
|
High
|
GAAP Earnings Per Share Guidance Range
|
$
|
1.81
|
|
$
|
1.87
|
|
Adjusted for:
|
|
|
|
|
Storage optimization program (b)
|
|
0.02
|
|
|
0.02
|
|
Retroactive depreciation expense adjustment (c)
|
|
(0.03
|
)
|
|
(0.03
|
)
|
Non-GAAP Operating Earnings Per Share Guidance Range
|
$
|
1.80
|
|
$
|
1.86
|
|
|
|
|
|
|
|
|
|
|
|
Unregulated Business Segments
|
|
|
Low
|
|
High
|
GAAP Earnings Per Share Guidance Range
|
$
|
0.82
|
|
$
|
0.88
|
|
Adjusted for:
|
|
|
|
|
Unrealized mark-to-market gain on energy-related derivatives
(a)
|
|
(0.16
|
)
|
|
(0.16
|
)
|
Non-GAAP Operating Earnings Per Share Guidance Range
|
$
|
0.66
|
|
$
|
0.72
|
|
Footnotes:
|
|
|
|
(a)
|
|
Represents the estimated reversal of certain of our existing
unrealized mark-to-market positions related to our energy
derivatives that will be recorded to income during fiscal year
2012. For the regulated utility segment, to the extent that our
unrealized mark-to-market gains and losses are not shared with
customers, these amounts are recorded directly to income. All
unrealized mark-to-market gains and losses for the retail-energy
marketing segment and to Capitol Energy Ventures in the other
activities segment are recorded directly to income.
|
|
|
|
(b)
|
|
Adjustments to shift the timing of storage optimization margins
from the periods recognized for GAAP purposes to the periods in
which such margins are recognized for regulatory sharing purposes.
In addition, lower-of-cost-or-market adjustments related to system
and non-system storage optimization are eliminated for non-GAAP
reporting, since the margins will be recognized for regulatory
purposes when the withdrawals are made at the unadjusted
historical cost of storage inventory.
|
|
|
|
(c)
|
|
Represents an adjustment that reduces depreciation expense
applicable to the period from January 1, 2010, through September
30, 2011. This adjustment will be recorded upon approval of new
depreciation rates by the SCC of VA.
|

WGL Holdings, Inc. News Media Ruben
Rodriguez, 202-624-6620 or Financial
Community Douglas Bonawitz, 202-624-6129
Source: WGL Holdings, Inc.
News Provided by Acquire Media
|