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February 4, 2008 at 12:00 AM EST
WGL Holdings, Inc. Reports Increased First Quarter FY 2008 Earnings and Raises Earnings Guidance
WASHINGTON, Feb 04, 2008 (BUSINESS WIRE) -- 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 quarter ended December 31, 2007 of $47.2 million, or $0.95 per share, an increase of $2.1 million, or $0.03 per share, over net income of $45.1 million, or $0.92 per share, reported for the first quarter of fiscal year 2007. "These excellent results for the first fiscal quarter underscore our progress in achieving a number of strategic objectives and reinforce our outlook for an excellent year," said James H. DeGraffenreidt, Jr., chairman and chief executive officer of WGL Holdings. "Successful regulatory outcomes, the expansion of our asset management program, continued customer growth and improved unregulated results will continue to drive fiscal year 2008 earnings growth." Financial performance is evaluated based on non-GAAP operating earnings (loss) per share. Non-GAAP operating earnings (loss) per share excludes the effects of: (i) warmer-than-normal/colder-than-normal weather for our regulated utility segment; (ii) certain unusual transactions and (iii) unrealized mark-to-market gains (losses) on energy-related derivatives. Refer to "Use of Non-GAAP Operating Earnings (Loss) Per Share" 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 earnings per share determined in accordance with GAAP to non-GAAP operating earnings (loss) per share for both our consolidated and segment results. For the first quarter of fiscal year 2008, our non-GAAP operating earnings were $0.96 per share, an increase of $0.06 per share over non-GAAP operating earnings of $0.90 per share for the same quarter of the prior fiscal year. First Quarter Results by Business Segment Regulated Utility Segment Our regulated utility segment reported net income determined in accordance with GAAP of $44.2 million, or $0.89 per share, for the first quarter fiscal year 2008, an increase of $1.2 million, or $0.01 per share over net income of $43.0 million, or $0.88 per share for the same quarter of the preceding fiscal year. For the first quarter of fiscal year 2008, non-GAAP operating earnings for the regulated utility segment were $0.88 per share, an increase of $0.05 per share, over non-GAAP operating earnings of $0.83 for the same period of the prior fiscal year. The increase in non-GAAP operating earnings is primarily due to: (i) the implementation of new rates in Virginia on February 13, 2007, in Maryland on November 27, 2007 and in the District of Columbia on December 31, 2007; (ii) an increase in realized margins from our asset management program; (iii) an increase in customer usage primarily due to a shift in weather patterns and (iv) the addition of over 12,300 active customer meters since December 31, 2006. Partially offsetting the increase in non-GAAP operating earnings were: (i) higher uncollectible accounts expense primarily due to an adjustment to the accumulated reserve made in the prior period to reflect better collections; (ii) transition related expenses for our business process outsourcing program and (iii) higher property taxes in Virginia. Retail Energy-Marketing Segment The retail energy-marketing segment reported net income determined in accordance with GAAP of $3.3 million, or $0.07 per share, for the quarter ended December 31, 2007, an increase of $605,000, or $0.02 per share, over net income of $2.7 million, or $0.05 per share, reported for the same quarter of fiscal year 2007. Non-GAAP operating earnings for the retail energy-marketing segment were $0.09 per share for the first quarter ended December 31, 2007, a $0.01 per share improvement over $0.08 per share for the same quarter of prior fiscal year. The year-over-year improvement in non-GAAP operating earnings reflects higher margins per therm sold for natural gas and lower interest expense. Partially offsetting these improvements were higher operating expenses. Earnings Outlook We are raising our GAAP earnings estimate for the full fiscal year 2008 to a range of $2.30 to $2.40 per share. This estimate includes projected full fiscal year 2008 earnings from our regulated utility segment in a range of $1.99 per share to $2.05 per share and projected full fiscal year 2008 earnings from our unregulated business segments in a range of $0.31 per share to $0.35 per share. We are also raising our consolidated earnings estimate for the full fiscal year 2008 based on non-GAAP operating earnings to a range of $2.35 per share to $2.45 per share. This estimate includes projected full fiscal year 2008 non-GAAP operating earnings from our regulated utility segment in a range of $1.97 per share to $2.03 per share, and projected full fiscal year 2008 non-GAAP operating earnings from our unregulated business segments in a range of $0.38 per share to $0.42 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 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 Web site, www.wglholdings.com. Other Information We will hold a conference call at 10:30 a.m. Eastern time on February 5, 2008, to discuss our first quarter financial results. The live conference call will be available to the public via a link located on the WGL Holdings Web site, 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 Web site through March 4, 2008. Headquartered in Washington, D.C., WGL Holdings 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 heating, ventilating and air conditioning (HVAC) 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 is available on our Web site. 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 earnings per share determined in accordance with GAAP to non-GAAP operating earnings (loss) per share 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 filed with or furnished to the Securities and Exchange Commission.
WGL Holdings, Inc.
Consolidated Statements of Income
Three Months Ended December 31, 2007 and 2006
(Unaudited)
-------------------------------------------------- -------------------
Three Months Ended
December 31,
----------------------------------------------------------------------
(In thousands, except per share data) 2007 2006
----------------------------------------------------------------------
OPERATING REVENUES
Utility $461,950 $431,021
Non-utility 289,676 301,941
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Total Operating Revenues 751,626 732,962
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OPERATING EXPENSES
Utility cost of gas 265,801 248,676
Non-utility cost of energy-related sales 275,543 289,843
Operation and maintenance 68,849 62,605
Depreciation and amortization 24,255 18,640
General taxes and other assessments 27,243 25,446
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Total Operating Expenses 661,691 645,210
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OPERATING INCOME 89,935 87,752
Other Income (Expenses)--Net 588 (172)
Interest Expense
Interest on long-term debt 9,980 10,008
Other - net 2,757 3,204
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Total Interest Expense 12,737 13,212
Dividends on Washington Gas preferred stock 330 330
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INCOME BEFORE INCOME TAXES 77,456 74,038
INCOME TAX EXPENSE 30,259 28,940
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NET INCOME APPLICABLE TO COMMON STOCK $ 47,197 $ 45,098
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AVERAGE COMMON SHARES OUTSTANDING
Basic 49,416 48,985
Diluted 49,645 49,130
======================================================================
EARNINGS PER AVERAGE COMMON SHARE
Basic $ 0.96 $ 0.92
Diluted $ 0.95 $ 0.92
======================================================================
Net Income (Loss) Applicable To Common Stock--By Segment ($000):
Regulated utility $ 44,202 $ 42,995
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Non-utility operations:
Retail energy-marketing 3,281 2,676
Commercial HVAC 273 97
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Total major non-utility 3,554 2,773
Other, principally non-utility activities (559) (670)
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Total non-utility 2,995 2,103
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NET INCOME APPLICABLE TO COMMON STOCK $ 47,197 $ 45,098
======================================================================
WGL Holdings, Inc.
Consolidated Balance Sheets
December 31, 2007
(Unaudited)
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December 31, September 30,
(In thousands) 2007 2007
----------------------------------------------------------------------
ASSETS
Property, Plant and Equipment
At original cost $ 3,095,963 $ 3,072,935
Accumulated depreciation and
amortization (934,351) (922,494)
----------------------------------------------------------------------
Net property, plant and equipment 2,161,612 2,150,441
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Current Assets
Cash and cash equivalents 18,967 4,870
Accounts receivable, net 531,090 192,021
Storage gas--at cost (first-in,
first-out) 253,453 294,889
Other 93,825 81,945
----------------------------------------------------------------------
Total current assets 897,335 573,725
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Deferred Charges and Other Assets 399,941 322,195
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Total Assets $ 3,458,888 $ 3,046,361
======================================================================
CAPITALIZATION AND LIABILITIES
Capitalization
Common shareholders' equity $ 1,013,255 $ 980,767
Washington Gas Light Company
preferred stock 28,173 28,173
Long-term debt 593,513 616,419
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Total capitalization 1,634,941 1,625,359
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Current Liabilities
Notes payable and current maturities
of long-term debt 347,451 205,341
Accounts payable and other accrued
liabilities 331,359 216,861
Other 237,569 134,854
----------------------------------------------------------------------
Total current liabilities 916,379 557,056
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Deferred Credits 907,568 863,946
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Total Capitalization and
Liabilities $ 3,458,888 $ 3,046,361
======================================================================
WGL Holdings, Inc.
Consolidated Financial and Operating Statistics
For Periods Ended December 31, 2007 and 2006
(Unaudited)
FINANCIAL STATISTICS
----------------------------------------------------------------------
Twelve Months Ended
December 31,
----------------------------------------------------------------------
2007 2006
----------------------------------------------------------------------
Closing Market Price--end of period $ 32.76 $ 32.58
52-Week Market Price Range $35.91-$29.79 $33.55-$27.04
Price Earnings Ratio 14.7 18.0
Annualized Dividends Per Share $ 1.37 $ 1.35
Dividend Yield 4.2% 4.1%
Return on Average Common Equity 11.2% 9.4%
Total Interest Coverage (times) (1) 4.6 4.1
Book Value Per Share--end of period $ 20.49 $ 19.52
Common Shares Outstanding--end of period
(thousands) 49,449 49,129
======================================================================
(1) Calculated using income from continuing operations.
UTILITY GAS STATISTICS
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------------------------------------------------
(In thousands) 2007 2006 2007 2006
----------------------------------------------------------------------
Operating Revenues
Gas Sold and
Delivered
Residential - Firm $ 304,400 $ 281,486 $1,010,323 $ 932,277
Commercial and
Industrial - Firm 87,669 80,220 286,398 284,839
Commercial and
Industrial -
Interruptible 2,298 2,248 6,668 8,108
Electric Generation 267 275 1,100 1,099
----------------------------------------------------------------------
394,634 364,229 1,304,489 1,226,323
----------------------------------------------------------------------
Gas Delivered for
Others
Firm 40,395 44,065 136,005 138,147
Interruptible 12,839 13,290 49,073 44,624
Electric Generation 90 57 326 253
----------------------------------------------------------------------
53,324 57,412 185,404 183,024
----------------------------------------------------------------------
447,958 421,641 1,489,893 1,409,347
Other 13,992 9,380 38,310 42,847
----------------------------------------------------------------------
Total $ 461,950 $ 431,021 $1,528,203 $1,452,194
======================================================================
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------------------------------------------------
(In thousands of
therms) 2007 2006 2007 2006
----------------------------------------------------------------------
Gas Sales and
Deliveries
Gas Sold and
Delivered
Residential - Firm 198,982 182,784 664,899 559,548
Commercial and
Industrial - Firm 62,633 57,729 208,866 194,172
Commercial and
Industrial -
Interruptible 1,847 1,868 5,254 6,377
----------------------------------------------------------------------
263,462 242,381 879,019 760,097
----------------------------------------------------------------------
Gas Delivered for
Others
Firm 134,108 124,093 443,435 392,642
Interruptible 74,341 76,793 264,853 255,002
Electric Generation 20,269 10,111 122,108 102,506
----------------------------------------------------------------------
228,718 210,997 830,396 750,150
----------------------------------------------------------------------
Total 492,180 453,378 1,709,415 1,510,247
======================================================================
WASHINGTON GAS ENERGY
SERVICES
----------------------------------------------------------------------
Natural Gas Sales
Therm Sales
(thousands of
therms) 196,474 204,612 717,327 677,831
Number of Customers
(end of period) 140,700 142,000 140,700 142,000
----------------------------------------------------------------------
Electricity Sales
Electricity Sales
(thousands of kWhs) 899,469 899,729 3,943,584 2,819,765
Number of Accounts
(end of period) 67,100 66,700 67,100 66,700
======================================================================
UTILITY GAS PURCHASED
EXPENSE
(excluding off 98.83 104.09 100.07 114.18
system) (cents) (cents) (cents) (cents)
======================================================================
HEATING DEGREE DAYS
----------------------------------------------------------------------
Actual 1,241 1,308 3,888 3,519
Normal 1,356 1,364 3,807 3,809
Percent Colder
(Warmer) than Normal (8.5)% (4.1)% 2.1% (7.6)%
======================================================================
Number of Active
Customer Meters (end
of period) 1,057,882 1,045,572 1,057,882 1,045,572
======================================================================
WGL Holdings, Inc. (Regulated Utility Segment)
Three Months Ended December 31, 2007 and 2006
(Unaudited)
Statements of Income
----------------------------------------------------------------------
Three Months Ended
December 31,
----------------------------------------------------------------------
(In thousands) 2007 2006
----------------------------------------------------------------------
Operating Revenues $464,428 $433,350
----------------------------------------------------------------------
Operating Expenses:
Cost of gas 268,279 251,005
Operation 50,867 46,588
Maintenance 10,510 9,465
Depreciation and amortization 24,046 18,551
General taxes and other assessments:
Revenue taxes 15,453 15,277
Other 10,882 9,275
----------------------------------------------------------------------
Total operating expenses 380,037 350,161
----------------------------------------------------------------------
Operating income 84,391 83,189
Other income (expenses) - net 536 (131)
Interest expense 12,151 11,974
Dividends on Washington Gas preferred stock 330 330
Income tax expense 28,244 27,759
----------------------------------------------------------------------
Net income $ 44,202 $ 42,995
======================================================================
Utility Net Revenues ($000) (1)
Operating revenues $464,428 $433,350
Less: Cost of gas 268,279 251,005
Revenue taxes 15,453 15,277
----------------------------------------------------------------------
Utility net revenues $180,696 $167,068
======================================================================
(1)We analyze the operating results of our regulated utility segment
based on utility net revenues. Washington Gas Light Company includes
the cost of the natural gas commodity and revenue taxes (comprised of
gross receipt taxes, PSC fees, franchise fees and energy taxes) in
its rates charged to customers as reflected in operating revenues.
Accordingly, changes in the cost of gas and revenue taxes associated
with sales made to customers have no direct effect on the net
revenues or net income of the regulated utility segment.
WGL HOLDINGS, INC. USE OF NON-GAAP OPERATING EARNINGS (LOSS) PER SHARE (Unaudited) The attached reconciliations are provided to clearly identify adjustments made to diluted earnings (loss) per average common share calculated in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) to derive non-GAAP operating earnings (loss) per share. Management believes non-GAAP operating earnings (loss) per share provides a more meaningful representation of our earnings from ongoing operations by excluding the effects of: (i) warmer-than-normal/colder-than-normal weather; (ii) certain unusual transactions and (iii) unrealized mark-to-market gains and losses from energy-related derivatives. 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. Additionally, we use this non-GAAP measure to report to the board of directors, evaluate management's performance and for incentive compensation purposes. We exclude from non-GAAP operating earnings (loss) per share the effects of warmer-than-normal/colder-than-normal weather to "normalize" weather. Utilization of normal weather is an industry standard, and it is our practice to evaluate our rate-regulated revenues by utilizing normal weather and to provide estimates and guidance on the basis of normal weather. Additionally, 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. 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 which are ultimately reversed when the derivatives are settled. These non-GAAP adjustments also assist both management and investors in analyzing period-to-period comparisons. There are limits in using non-GAAP operating earnings (loss) per share to analyze our results, as it is 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 diluted earnings (loss) per average common share, the most directly comparable GAAP financial measure.
WGL HOLDINGS, INC. (Consolidating by Segment)
RECONCILIATION OF GAAP DILUTED EARNINGS (LOSS) PER AVERAGE COMMON
SHARE TO NON-GAAP OPERATING EARNINGS (LOSS) PER SHARE
(Unaudited)
Quarter Ended December 31, 2007
----------------------------------------------------------------------
Regulated Retail Energy- Other
Utility Marketing HVAC Activities Consolidated
----------------------------------------------------------------------
GAAP diluted
earnings
(loss) per
average
common share $ 0.89 $ 0.07 $0.01 $ (0.02) $ 0.95
Adjusted for:
Reversal of
costs related
to business
process
outsourcing
(a) (0.02) - - - (0.02)
Unrealized
mark-to-
market loss
on energy-
related
derivatives
(b) 0.03 0.02 - - 0.05
Other
regulatory
adjustments
(c) (0.02) - - - (0.02)
----------------------------------------------------------------------
Non-GAAP
operating
earnings
(loss) per
share $ 0.88 $ 0.09 $0.01 $ (0.02) $ 0.96
======================================================================
Quarter Ended December 31, 2006
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Regulated Retail Energy- Other
Utility Marketing HVAC Activities Consolidated
----------------------------------------------------------------------
GAAP diluted
earnings
(loss) per
average
common share $ 0.88 $ 0.05 $ - $ (0.01) $ 0.92
Adjusted for:
Retroactive
depreciation
expense
adjustment
(d) (0.05) - - - (0.05)
Unrealized
mark-to-
market loss
on energy-
related
derivatives
(b) - 0.03 - - 0.03
----------------------------------------------------------------------
Non-GAAP
operating
earnings
(loss) per
share $ 0.83 $ 0.08 $ - $ (0.01) $ 0.90
======================================================================
WGL HOLDINGS, INC. (Consolidated by Quarter)
RECONCILIATION OF GAAP DILUTED EARNINGS (LOSS) PER AVERAGE COMMON
SHARE TO NON-GAAP OPERATING EARNINGS (LOSS) PER SHARE
(Unaudited)
Fiscal Year 2008
----------------------------------------------------------------------
Quarterly Period Ended
----------------------------------------------------------------------
Dec. 31 Mar. 31 Jun. 30 Sept. 30 Year-To-Date
----------------------------------------------------------------------
GAAP diluted earnings
per average common
share $ 0.95 $ 0.95
Adjusted for:
Reversal of costs
related to business
process outsourcing
(a) (0.02) (0.02)
Unrealized mark-to-
market loss on energy-
related derivatives
(b) 0.05 0.05
Other regulatory
adjustments (c) (0.02) (0.02)
----------------------------------------------------------------------
Non-GAAP operating
earnings per share $ 0.96 $ 0.96
======================================================================
Fiscal Year 2007
----------------------------------------------------------------------
Quarterly Period Ended
----------------------------------------------------------------------
Dec. 31 Mar. 31 Jun. 30 Sept. 30 Year-To-Date
----------------------------------------------------------------------
GAAP diluted earnings
per average common
share $ 0.92 $0.92
Adjusted for:
Retroactive
depreciation expense
adjustment (d) (0.05) (0.05)
Unrealized mark-to-
market loss on energy-
related derivatives
(b) 0.03 0.03
----------------------------------------------------------------------
Non-GAAP operating
earnings per share $ 0.90 $0.90
======================================================================
Footnotes: ---------------------------------------------------------------------- (a) Represents the reversal of expenses that were incurred in prior fiscal years for initial implementation costs allocable to the District of Columbia associated with our business process outsourcing plan. These costs were recorded to a regulatory asset in the first quarter of fiscal year 2008 upon approval of 10-year amortization accounting by the District of Columbia Public Service Commission in a December 28, 2007 Final Order. (b) 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 are recorded directly to income. (c) Represents favorable regulatory adjustments made during the first quarter of fiscal year 2008 applicable to prior fiscal years due to revised treatment for hexane costs in Maryland and certain shared revenues in the District of Columbia. (d) Represents an adjustment that reduced depreciation expense applicable to the period from January 1, 2006, through September 30, 2006. This adjustment was recorded in the first quarter of fiscal year 2007 upon approval of new depreciation rates by the staff of the Virginia State Corporation Commission.
WGL HOLDINGS, INC.
RECONCILIATION OF GAAP EARNINGS GUIDANCE TO
NON-GAAP EARNINGS GUIDANCE
FISCAL YEAR ENDING SEPTEMBER 30, 2008
Consolidated
----------------------------------------------------------------------
Low High
----------------------------------------------------------------------
GAAP Earnings Guidance Range $ 2.30 $ 2.40
Adjusted for:
Reversal of costs related to business process
outsourcing (a) (0.02) (0.02)
Unrealized mark-to-market loss on energy-related
derivatives (b) 0.09 0.09
Other regulatory adjustments (c) (0.02) (0.02)
----------------------------------------------------------------------
Non-GAAP Earnings Guidance Range $ 2.35 $ 2.45
======================================================================
Regulated Utility Segment
----------------------------------------------------------------------
Low High
----------------------------------------------------------------------
GAAP Earnings Guidance Range $ 1.99 $ 2.05
Adjusted for:
Reversal of costs related to business process
outsourcing (a) (0.02) (0.02)
Unrealized mark-to-market loss on energy-related
derivatives (b) 0.02 0.02
Other regulatory adjustments (c) (0.02) (0.02)
----------------------------------------------------------------------
Non-GAAP Earnings Guidance Range $ 1.97 $ 2.03
======================================================================
Unregulated Business Segments
----------------------------------------------------------------------
Low High
----------------------------------------------------------------------
GAAP Earnings Guidance Range $ 0.31 $ 0.35
Adjusted for:
Unrealized mark-to-market loss on energy-related
derivatives (a) 0.07 0.07
----------------------------------------------------------------------
Non-GAAP Earnings Guidance Range $ 0.38 $ 0.42
======================================================================
Footnotes: ---------------------------------------------------------------------- (a) Represents the reversal of expenses that were incurred in prior fiscal years for initial implementation costs allocable to the District of Columbia associated with our business process outsourcing plan. These expenses were reversed in the first quarter of fiscal year 2008 due to the approval of 10-year amortization accounting by the District of Columbia Public Service Commission in a December 28, 2007 Final Order. (b) 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 2008. 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 are recorded directly to income. (c) Represents favorable regulatory adjustments made during the first quarter of fiscal year 2008 applicable to prior fiscal years due to revised treatment for hexane costs in Maryland and certain shared revenues in the District of Columbia. SOURCE: WGL Holdings, Inc. WGL Holdings, Inc. News Media Eric Grant, 202-624-6091 or Financial Community Melissa E. Adams, 202-624-6410 Copyright Business Wire 2008 News Provided by COMTEX |
