IRS Employer | ||||
Commission | Registrant; State of Incorporation; | Identification | ||
File Number | Address; and Telephone Number | Number | ||
1-13739
|
UNISOURCE ENERGY CORPORATION | 86-0786732 | ||
(An Arizona Corporation) | ||||
One South Church Avenue, Suite 100 | ||||
Tucson, AZ 85701 | ||||
(520) 571-4000 | ||||
1-5924
|
TUCSON ELECTRIC POWER COMPANY | 86-0062700 | ||
(An Arizona Corporation) | ||||
One South Church Avenue, Suite 100 | ||||
Tucson, AZ 85701 | ||||
(520) 571-4000 |
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit 99.1
|
UniSource Energy Corporation Press Release, dated May 2, 2011. | |
Exhibit 99.2
|
Supplemental earnings information posted on UniSource Energys website, dated May 2, 2011. | |
Exhibit 99.3
|
Conference call presentation slides posted on UniSource Energys website, dated May 2, 2011. |
Date: May 2, 2011
|
UNISOURCE ENERGY CORPORATION
|
|||
/s/ Kevin P. Larson
|
||||
Senior Vice President and Principal | ||||
Financial Officer | ||||
Date: May 2, 2011
|
TUCSON ELECTRIC POWER COMPANY
|
|||
/s/ Kevin P. Larson
|
||||
Senior Vice President and Principal | ||||
Financial Officer |
FOR IMMEDIATE RELEASE
|
May 2, 2011 | |
Media Contact: Joe Salkowski, (520) 884-3625
|
Page 1 of 6 | |
Financial Analyst Contact: Jo Smith, (520) 884-3650 |
| UniSource Energys net income for the first quarter of 2011 was $17.0 million, or $0.44 per share of common stock on a fully-diluted basis, compared with net income of $20.0 million, or $0.52 per diluted share in the first quarter of 2010. Financial results for the first quarter of 2011 included a $3.5 million after-tax gain related to adjustments to deferred taxes recorded in prior periods. |
| Earnings at UniSource Energys primary subsidiary, Tucson Electric Power Company (TEP), were $7.0 million in the first quarter of 2011 compared with $10.3 million in the first quarter of 2010. Planned generating plant maintenance expense, higher depreciation and amortization expense and lower wholesale transmission revenues resulted in lower earnings at TEP. |
| Retail kilowatt-hour (kWh) sales at both TEP and UNS Electric increased compared with the first quarter of 2010. |
| Operating results for the first quarter were in-line with expectations. UniSource Energy is maintaining its estimates for 2011 base operating and maintenance expense of $272 million and 2011 earnings range of $2.60 to $2.90 per diluted share. |
2
1st Quarter | ||||||||
Net Income | 2011 | 2010 | ||||||
-Millions- | ||||||||
Tucson Electric Power |
$ | 7.0 | $ | 10.3 | ||||
UNS Gas |
6.4 | 5.8 | ||||||
UNS Electric |
3.1 | 2.9 | ||||||
Other (1) |
0.5 | 1.0 | ||||||
Net Income |
$ | 17.0 | $ | 20.0 | ||||
Avg. Basic Shares Outstanding (millions) |
36.8 | 36.1 | ||||||
Avg. Diluted Shares Outstanding (millions) |
41.4 | 40.7 |
1st Quarter | ||||||||
Earnings Per UniSource Energy Share | 2011 | 2010 | ||||||
Tucson Electric Power |
$ | 0.19 | $ | 0.29 | ||||
UNS Gas |
0.17 | 0.16 | ||||||
UNS Electric |
0.08 | 0.08 | ||||||
Other (1) |
0.02 | 0.02 | ||||||
Net Income per Basic Share |
$ | 0.46 | $ | 0.55 | ||||
Net Income per Diluted Share |
$ | 0.44 | $ | 0.52 | ||||
(1) | Includes UniSource Energy on a stand-alone basis and results from Millennium Energy Holdings, Inc. and UniSource Energy Development, wholly-owned subsidiaries of UniSource Energy. |
3
4
Three Months Ended | ||||||||||||||||
(in thousands of dollars, except per share amounts) | March 31, | Increase / (Decrease) | ||||||||||||||
(UNAUDITED) | 2011 | 2010 | Amount | Percent | ||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 217,215 | $ | 204,746 | $ | 12,469 | 6.1 | |||||||||
Electric Wholesale Sales |
40,781 | 37,064 | 3,717 | 10.0 | ||||||||||||
California Power Exchange (CPX) Provision for Wholesale Refunds |
| (2,970 | ) | 2,970 | N/M | |||||||||||
Gas Revenue |
57,189 | 55,781 | 1,408 | 2.5 | ||||||||||||
Other Revenues |
29,448 | 24,200 | 5,248 | 21.7 | ||||||||||||
Total Operating Revenues |
344,633 | 318,821 | 25,812 | 8.1 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
72,137 | 60,448 | 11,689 | 19.3 | ||||||||||||
Purchased Energy |
77,640 | 82,805 | (5,165 | ) | (6.2 | ) | ||||||||||
Transmission |
2,502 | 2,430 | 72 | 3.0 | ||||||||||||
Decrease to Reflect PPFAC/PGA Recovery Treatment |
(5,793 | ) | (12,631 | ) | 6,838 | 54.1 | ||||||||||
Total Fuel and Purchased Energy |
146,486 | 133,052 | 13,434 | 10.1 | ||||||||||||
Other Operations and Maintenance |
101,022 | 82,908 | 18,114 | 21.8 | ||||||||||||
Depreciation |
32,790 | 31,099 | 1,691 | 5.4 | ||||||||||||
Amortization |
7,377 | 6,572 | 805 | 12.2 | ||||||||||||
Taxes Other Than Income Taxes |
12,144 | 12,273 | (129 | ) | (1.1 | ) | ||||||||||
Total Operating Expenses |
299,819 | 265,904 | 33,915 | 12.8 | ||||||||||||
Operating Income |
44,814 | 52,917 | (8,103 | ) | (15.3 | ) | ||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
994 | 1,927 | (933 | ) | (48.4 | ) | ||||||||||
Other Income |
2,856 | 6,059 | (3,203 | ) | (52.9 | ) | ||||||||||
Other Expense |
(663 | ) | (844 | ) | 181 | 21.4 | ||||||||||
Total Other Income (Deductions) |
3,187 | 7,142 | (3,955 | ) | (55.4 | ) | ||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
18,092 | 15,240 | 2,852 | 18.7 | ||||||||||||
Capital Leases |
9,929 | 12,083 | (2,154 | ) | (17.8 | ) | ||||||||||
Other Interest Expense, Net of Interest Capitalized |
(921 | ) | 329 | (1,250 | ) | N/M | ||||||||||
Total Interest Expense |
27,100 | 27,652 | (552 | ) | (2.0 | ) | ||||||||||
Income Before Income Taxes |
20,901 | 32,407 | (11,506 | ) | (35.5 | ) | ||||||||||
Income Tax Expense |
3,909 | 12,435 | (8,526 | ) | (68.6 | ) | ||||||||||
Net Income |
$ | 16,992 | $ | 19,972 | $ | (2,980 | ) | (14.9 | ) | |||||||
Weighted-Average Shares of Common Stock Outstanding (000) |
36,789 | 36,052 | 737 | 2.0 | ||||||||||||
Basic Earnings per Share |
$ | 0.46 | $ | 0.55 | $ | (0.09 | ) | (16.4 | ) | |||||||
Diluted Earnings per Share |
$ | 0.44 | $ | 0.52 | $ | (0.08 | ) | (15.4 | ) | |||||||
Dividends Declared per Share |
$ | 0.42 | $ | 0.39 | $ | 0.03 | 7.7 | |||||||||
5
Three Months Ended | ||||||||||||||||
(in thousands of dollars) | March 31, | Increase / (Decrease) | ||||||||||||||
(UNAUDITED) | 2011 | 2010 | Amount | Percent | ||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 173,702 | $ | 167,419 | $ | 6,283 | 3.8 | |||||||||
Electric Wholesale Sales |
35,122 | 40,962 | (5,840 | ) | (14.3 | ) | ||||||||||
California Power Exchange (CPX) Provision for Wholesale Refunds |
| (2,970 | ) | 2,970 | N/M | |||||||||||
Other Revenues |
30,630 | 25,643 | 4,987 | 19.4 | ||||||||||||
Total Operating Revenues |
239,454 | 231,054 | 8,400 | 3.6 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
71,315 | 58,351 | 12,964 | 22.2 | ||||||||||||
Purchased Power |
16,601 | 24,654 | (8,053 | ) | (32.7 | ) | ||||||||||
Transmission |
695 | 796 | (101 | ) | (12.7 | ) | ||||||||||
Decrease to Reflect PPFAC Recovery Treatment |
(9,342 | ) | (3,118 | ) | (6,224 | ) | N/M | |||||||||
Total Fuel and Purchased Energy |
79,269 | 80,683 | (1,414 | ) | (1.8 | ) | ||||||||||
Other Operations and Maintenance |
88,492 | 70,365 | 18,127 | 25.8 | ||||||||||||
Depreciation |
25,733 | 24,060 | 1,673 | 7.0 | ||||||||||||
Amortization |
8,304 | 7,786 | 518 | 6.7 | ||||||||||||
Taxes Other Than Income Taxes |
9,904 | 9,951 | (47 | ) | (0.5 | ) | ||||||||||
Total Operating Expenses |
211,702 | 192,845 | 18,857 | 9.8 | ||||||||||||
Operating Income |
27,752 | 38,209 | (10,457 | ) | (27.4 | ) | ||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
734 | 1,690 | (956 | ) | (56.6 | ) | ||||||||||
Other Income |
1,372 | 948 | 424 | 44.7 | ||||||||||||
Other Expense |
(1,230 | ) | (2,216 | ) | 986 | 44.5 | ||||||||||
Total Other Income (Deductions) |
876 | 422 | 454 | N/M | ||||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
12,255 | 9,878 | 2,377 | 24.1 | ||||||||||||
Capital Leases |
9,929 | 12,081 | (2,152 | ) | (17.8 | ) | ||||||||||
Other Interest Expense, Net of Interest Capitalized |
(747 | ) | (25 | ) | (722 | ) | N/M | |||||||||
Total Interest Expense |
21,437 | 21,934 | (497 | ) | (2.3 | ) | ||||||||||
Income Before Income Taxes |
7,191 | 16,697 | (9,506 | ) | (56.9 | ) | ||||||||||
Income Tax Expense |
208 | 6,348 | (6,140 | ) | (96.7 | ) | ||||||||||
Net Income |
$ | 6,983 | $ | 10,349 | $ | (3,366 | ) | (32.5 | ) | |||||||
Three Months Ended | ||||||||||||||||
Tucson Electric Power | March 31, | Increase / (Decrease) | ||||||||||||||
Electric MWh Sales: | 2011 | 2010 | Amount | Percent | ||||||||||||
Retail Sales |
1,954,737 | 1,928,812 | 25,925 | 1.3 | ||||||||||||
Long-Term Wholesale Sales |
230,338 | 287,806 | (57,468 | ) | (20.0 | ) |
6
Safe Harbor and Non-GAAP Measures |
1 | |||
Variance Explanation |
2 | |||
UniSource Energy and TEP O&M |
3 | |||
TEP Operating Statistics |
4 | |||
TEP Margin Revenues |
5 | |||
UNS Electric Operating Statistics |
6 | |||
UNS Gas Operating Statistics |
7 | |||
Basic & Diluted Shares Outstanding |
8 |
1st Quarter 2010 UniSource Energy Net Income | $ | 20.0 | ||||||||||||||||||
1st Quarter | Change | |||||||||||||||||||
TEP | 2011 | 2010 | Pre-Tax | After Tax | ||||||||||||||||
-millions of dollars- | ||||||||||||||||||||
Retail Margin Revenues |
$ | 108.7 | $ | 108.4 | $ | 0.3 | $ | 0.2 | ||||||||||||
L-T Wholesale Margin Revenues |
7.0 | 8.1 | (1.1 | ) | (0.7 | ) | ||||||||||||||
Transmission Revenues |
3.9 | 7.5 | (3.6 | ) | (2.2 | ) | ||||||||||||||
TEP Utility Gross Margin (Non-GAAP) |
119.6 | 124.0 | (4.4 | ) | (2.7 | ) | ||||||||||||||
Loss related to the settlement of a dispute over tranactions with the California Power Exchange |
0.0 | (3.0 | ) | 3.0 | 1.9 | |||||||||||||||
Base O&M |
62.0 | 54.4 | 7.6 | 4.7 | ||||||||||||||||
Depreciation |
25.7 | 24.1 | 1.6 | 1.0 | ||||||||||||||||
Amortization |
8.3 | 7.8 | 0.5 | 0.3 | ||||||||||||||||
Operating synergies related to Springerville Unit 3&4 |
5.8 | 6.5 | (0.7 | ) | (0.4 | ) | ||||||||||||||
Other Line Item Changes |
(1.7 | ) | (3.0 | ) | 1.3 | 0.8 | ||||||||||||||
TEP Operating Income (GAAP) |
27.7 | 38.2 | (10.5 | ) | (6.5 | ) | ||||||||||||||
Other Income |
0.9 | 0.4 | 0.5 | 0.3 | ||||||||||||||||
Total Interest Expense |
21.4 | 21.9 | (0.5 | ) | (0.3 | ) | ||||||||||||||
Income Tax Expense (1) |
0.2 | 6.4 | (6.2 | ) | NM | |||||||||||||||
TEP Net Income (Loss) |
$ | 7.0 | $ | 10.3 | ($3.3 | ) | NM | |||||||||||||
Change in TEP Net Income | (3.3 | ) | ||||||||||||||||||
Other Business Segments |
||||||||||||||||||||
UNS Electric Net Income (2) |
3.1 | 2.9 | NM | 0.2 | ||||||||||||||||
UNS Gas Net Income |
6.4 | 5.8 | NM | 0.6 | ||||||||||||||||
Other (3) |
0.5 | 1.0 | NM | (0.5 | ) | |||||||||||||||
Total Other Income and Consolidating Adjustments |
$ | 10.0 | $ | 9.7 | NM | $ | 0.3 | |||||||||||||
Change in UNS Electric, UNS Gas and Other | 0.3 | |||||||||||||||||||
1st Quarter 2011 UniSource Energy Net Income | $ | 17.0 |
(1) | TEPs Q1 2011 income tax expense includes a prior period adjustment that reduced income tax expense by $2.3 million. | |
(2) | UNS Electrics net income in Q1 2011 includes a prior period tax adjustment that reduced income tax expense by $0.9 million. UNS Electrics net income in Q1 2010 includes a pre-tax gain of approximately $3 million related to the settlement of a dispute over transactions with the California Power Exchange. | |
(3) | Includes UniSource Energy on a stand-alone basis and results from Millennium Energy Holdings, Inc. and UniSource Energy Development, wholly-owned subsidiaries of UniSource Energy. | |
Note: Some columns and rows may not foot due to rounding. |
2 - Variance Explanation
UniSource Energy | 1st Quarter | |||||||
O&M Components | 2011 | 2010 | ||||||
-millions of dollars- | ||||||||
TEP Base O&M (Non-GAAP) |
$ | 62.0 | $ | 54.4 | ||||
UNS Gas Base O&M (Non-GAAP) |
6.5 | 6.2 | ||||||
UNS Electric Base O&M (Non-GAAP) |
5.0 | 4.8 | ||||||
Consolidating Adjustments & Other |
(2.5 | ) | (2.2 | ) | ||||
UniSource Energy Base O&M (Non-GAAP) |
$ | 71.0 | $ | 63.2 | ||||
Reimbursed O&M Related to Springerville Units 3 and 4 |
16.2 | 12.7 | ||||||
O&M Related to Customer-funded Renewable Energy and DSM Programs |
13.8 | 7.0 | ||||||
UniSource Energy O&M (GAAP) |
$ | 101.0 | $ | 82.9 | ||||
TEP | 1st Quarter | |||||||
O&M Components | 2011 | 2010 | ||||||
-millions of dollars- | ||||||||
Wages, A&G, Other |
$ | 39.1 | $ | 34.9 | ||||
Generating Plant Maintenance Expense |
19.0 | 16.0 | ||||||
Pension and Postretirement Benefits Expense |
3.9 | 3.5 | ||||||
TEP Base O&M (Non-GAAP) |
$ | 62.0 | $ | 54.4 | ||||
O&M Included in Other Expense |
(1.9 | ) | (1.9 | ) | ||||
Reimbursed O&M Related to Springerville Units 3 and 4 |
16.2 | 12.7 | ||||||
O&M Related to Customer-funded Renewable Energy and DSM Programs |
12.2 | 5.2 | ||||||
TEP O&M (GAAP) |
$ | 88.5 | $ | 70.4 | ||||
3 - O&M
3 Months Ended Mar. 31 | ||||||||||||||||
2011 | 2010 | Incr (Decr) | % Change | |||||||||||||
AVG. ELECTRIC CUSTOMERS |
||||||||||||||||
Residential |
366,308 | 365,627 | 681 | 0.2 | % | |||||||||||
Commercial |
35,917 | 35,814 | 103 | 0.3 | % | |||||||||||
Industrial |
634 | 632 | 2 | 0.3 | % | |||||||||||
Mining |
2 | 2 | | 0.0 | % | |||||||||||
Other |
62 | 61 | 1 | 1.6 | % | |||||||||||
Total |
402,923 | 402,136 | 787 | 0.2 | % | |||||||||||
RETAIL SALES MWH |
||||||||||||||||
Residential |
748,979 | 754,738 | (5,759 | ) | -0.8 | % | ||||||||||
Commercial |
401,133 | 394,607 | 6,526 | 1.7 | % | |||||||||||
Industrial |
489,770 | 473,771 | 15,999 | 3.4 | % | |||||||||||
Mining |
264,991 | 261,037 | 3,954 | 1.5 | % | |||||||||||
Other |
49,863 | 44,659 | 5,204 | 11.7 | % | |||||||||||
Total |
1,954,736 | 1,928,812 | 25,924 | 1.3 | % | |||||||||||
RETAIL USAGE KWH/CUSTOMER |
||||||||||||||||
Residential |
2,045 | 2,064 | (20 | ) | -0.9 | % | ||||||||||
Commercial |
11,168 | 11,018 | 150 | 1.4 | % | |||||||||||
Industrial |
772,508 | 749,638 | 22,870 | 3.1 | % | |||||||||||
Mining |
132,495,500 | 130,518,500 | 1,977,000 | 1.5 | % | |||||||||||
Other |
804,242 | 732,115 | 72,127 | 9.9 | % | |||||||||||
Total |
4,851 | 4,796 | 55 | 1.1 | % | |||||||||||
WEATHER HEATING DEGREE DAYS |
||||||||||||||||
Actual |
856 | 881 | (25 | ) | -2.8 | % | ||||||||||
10-Year Average |
806 | 805 | ||||||||||||||
% Change Actual vs. 10-Year Avg. |
6.2 | % | 9.4 | % | ||||||||||||
ENERGY MARKET INDICATORS |
||||||||||||||||
Avg. Wholesale Power Prices |
||||||||||||||||
Palo Verde Index $/MWh |
||||||||||||||||
On Peak |
$ | 32.61 | $ | 45.19 | $ | (12.58 | ) | -27.8 | % | |||||||
Off Peak |
$ | 21.41 | $ | 34.77 | $ | (13.36 | ) | -38.4 | % | |||||||
Avg. Natural Gas Prices |
||||||||||||||||
Permian Index $/MMBtu |
$ | 3.92 | $ | 5.26 | $ | (1.34 | ) | -25.5 | % |
* | Totals and percent changes calculated on un-rounded data; may not correspond to data shown in table |
4 - TEP Operating Stats
3 Months Ended Mar. 31 | ||||||||||||||||
2011 | 2010 | Incr (Decr) | % Change | |||||||||||||
RETAIL REVENUES $ MILLIONS |
||||||||||||||||
Margin Revenues: |
||||||||||||||||
Residential |
$ | 46.9 | $ | 47.3 | (0.4 | ) | -0.8 | % | ||||||||
Commercial |
31.1 | 30.6 | 0.5 | 1.6 | % | |||||||||||
Industrial |
20.6 | 21.0 | (0.4 | ) | -1.9 | % | ||||||||||
Mining |
7.6 | 7.3 | 0.3 | 4.1 | % | |||||||||||
Other |
2.5 | 2.2 | 0.3 | 13.6 | % | |||||||||||
Total |
$ | 108.7 | $ | 108.4 | $ | 0.3 | 0.3 | % | ||||||||
DSM / REST |
15.0 | 8.0 | 7.0 | 87.8 | % | |||||||||||
Fuel Revenues: |
||||||||||||||||
Recovered from Customers |
50.0 | 51.0 | (1.0 | ) | -2.0 | % | ||||||||||
Total Retail Revenues |
$ | 173.7 | $ | 167.4 | $ | 6.3 | 3.8 | % | ||||||||
RETAIL REVENUES CENTS / KWH |
||||||||||||||||
Margin Revenues: |
||||||||||||||||
Residential |
6.26 | 6.27 | (0.01 | ) | -0.1 | % | ||||||||||
Commercial |
7.75 | 7.75 | (0.00 | ) | 0.0 | % | ||||||||||
Industrial |
4.21 | 4.43 | (0.23 | ) | -5.1 | % | ||||||||||
Mining |
2.87 | 2.80 | 0.07 | 2.6 | % | |||||||||||
Other |
5.01 | 4.93 | 0.09 | 1.8 | % | |||||||||||
Total |
5.56 | 5.62 | (0.06 | ) | -1.1 | % | ||||||||||
DSM / REST |
0.77 | 0.41 | 0.35 | 85.3 | % | |||||||||||
Fuel Revenues: |
||||||||||||||||
Recovered from Customers |
2.56 | 2.64 | (0.09 | ) | -3.3 | % | ||||||||||
Total Retail Revenues |
8.89 | 8.68 | 0.21 | 2.4 | % | |||||||||||
LONG-TERM WHOLESALE MARGIN $ MILLIONS |
||||||||||||||||
Long-term Wholesale Revenues |
$ | 13.5 | $ | 14.9 | (1.4 | ) | -9.4 | % | ||||||||
Fuel and Purchased Power Expense |
(6.5 | ) | (6.8 | ) | 0.3 | -4.4 | % | |||||||||
Net |
$ | 7.0 | $ | 8.1 | (1.1 | ) | -13.6 | % | ||||||||
* | Totals and percent changes calculated on un-rounded data; may not correspond to data shown in table |
5 - TEP Margin Revenues
Three Months Ended March 31, | ||||||||||||||||
2011 | 2010 | Incr (Decr) | % Change | |||||||||||||
AVG. ELECTRIC CUSTOMERS |
||||||||||||||||
Residential |
80,547 | 80,023 | 524 | 0.7 | % | |||||||||||
Commercial |
10,368 | 10,336 | 32 | 0.3 | % | |||||||||||
Industrial |
22 | 24 | (2 | ) | -8.3 | % | ||||||||||
Mining |
2 | 1 | 1 | 100.0 | % | |||||||||||
Other |
249 | 266 | (17 | ) | -6.4 | % | ||||||||||
Total |
91,188 | 90,650 | 538 | 0.6 | % | |||||||||||
RETAIL SALES MWH |
||||||||||||||||
Residential |
180,166 | 175,345 | 4,821 | 2.7 | % | |||||||||||
Commercial |
131,062 | 131,308 | (246 | ) | -0.2 | % | ||||||||||
Industrial |
51,751 | 51,834 | (83 | ) | -0.2 | % | ||||||||||
Mining |
58,730 | 46,852 | 11,878 | 25.4 | % | |||||||||||
Other |
475 | 566 | (91 | ) | -16.1 | % | ||||||||||
Total |
422,184 | 405,905 | 16,279 | 4.0 | % | |||||||||||
RETAIL USAGE KWH/CUSTOMER |
||||||||||||||||
Residential |
2,237 | 2,191 | 46 | 2.1 | % | |||||||||||
Commercial |
12,641 | 12,704 | (63 | ) | -0.5 | % | ||||||||||
Industrial |
2,352,318 | 2,159,750 | 192,568 | 8.9 | % | |||||||||||
Mining |
29,365,000 | 46,852,000 | (17,487,000 | ) | -37.3 | % | ||||||||||
Other |
1,908 | 2,128 | (220 | ) | -10.3 | % | ||||||||||
Total |
4,630 | 4,478 | 152 | 3.4 | % | |||||||||||
RETAIL REVENUES MILLIONS |
||||||||||||||||
Margin Revenues: |
||||||||||||||||
Residential |
$ | 5.5 | $ | 4.5 | $ | 1.0 | 21.9 | % | ||||||||
Commercial |
5.6 | 5.0 | 0.6 | 12.4 | % | |||||||||||
Industrial |
1.9 | 1.7 | 0.2 | 8.9 | % | |||||||||||
Mining |
1.3 | 1.0 | 0.3 | 34.7 | % | |||||||||||
Other |
0.1 | 0.1 | 0.0 | 72.4 | % | |||||||||||
Total Margin Revenues |
$ | 14.4 | $ | 12.3 | $ | 2.1 | 17.4 | % | ||||||||
DSM / REST |
1.4 | 1.6 | (0.2 | ) | -13.4 | % | ||||||||||
Fuel Revenues: |
||||||||||||||||
Recovered from Customers |
27.7 | 23.4 | 4.3 | 18.1 | % | |||||||||||
Total Retail Revenues |
$ | 43.5 | $ | 37.3 | $ | 6.2 | 16.5 | % | ||||||||
WEATHER HEATING DEGREE DAYS |
||||||||||||||||
Actual |
3,522 | 3,570 | (48 | ) | -1.3 | % | ||||||||||
10-Year Average |
3,402 | 3,389 | 13 | 0.4 | % | |||||||||||
% Change Actual vs. 10-Year Avg. |
3.5 | % | 5.3 | % |
* | Totals and percent changes calculated on un-rounded data; may not correspond to data shown in table |
6 - UNS Electric
Three Months Ended March 31, | ||||||||||||||||
2011 | 2010 | Incr (Decr) | % Change | |||||||||||||
AVG. GAS CUSTOMERS |
||||||||||||||||
Residential |
134,426 | 133,715 | 711 | 0.5 | % | |||||||||||
Commercial |
11,307 | 11,405 | (98 | ) | -0.9 | % | ||||||||||
Industrial |
22 | 23 | (1 | ) | -4.3 | % | ||||||||||
All Other |
1,127 | 1,107 | 20 | 1.8 | % | |||||||||||
Total |
146,882 | 146,250 | 632 | 0.4 | % | |||||||||||
RETAIL SALES THOUSANDS OF THERMS |
||||||||||||||||
Residential |
32,770 | 33,401 | (632 | ) | -1.9 | % | ||||||||||
Commercial |
11,458 | 11,445 | 13 | 0.1 | % | |||||||||||
Industrial |
741 | 692 | 48 | 7.0 | % | |||||||||||
All Other |
9,963 | 10,411 | (447 | ) | -4.3 | % | ||||||||||
Total |
54,932 | 55,950 | (1,018 | ) | -1.8 | % | ||||||||||
RETAIL USAGE THERMS/CUSTOMER |
||||||||||||||||
Residential |
244 | 250 | (6 | ) | -2.4 | % | ||||||||||
Commercial |
1,013 | 1,004 | 10 | 1.0 | % | |||||||||||
Industrial |
33,661 | 30,103 | 3,558 | 11.8 | % | |||||||||||
All Other |
8,840 | 9,404 | (564 | ) | -6.0 | % | ||||||||||
Total |
374 | 383 | (9 | ) | -2.2 | % | ||||||||||
RETAIL REVENUES MILLIONS |
||||||||||||||||
Margin Revenues: |
||||||||||||||||
Residential |
$ | 14.4 | $ | 14.1 | $ | 0.4 | 2.6 | % | ||||||||
Commercial |
3.7 | 3.4 | 0.3 | 7.7 | % | |||||||||||
All Other |
0.9 | 0.9 | 0.1 | 6.1 | % | |||||||||||
Total Margin Revenues |
$ | 19.1 | $ | 18.4 | $ | 0.7 | 3.7 | % | ||||||||
DSM Revenues |
0.3 | 0.2 | 0.1 | 30.4 | % | |||||||||||
Transport/NSP Revenues |
4.6 | 5.1 | (0.5 | ) | -10.5 | % | ||||||||||
Fuel Revenues: |
||||||||||||||||
Recovered from Customers |
33.5 | 32.9 | 0.5 | 1.6 | % | |||||||||||
Total Gas Revenues |
$ | 57.5 | $ | 56.7 | $ | 0.8 | 1.3 | % | ||||||||
WEATHER HEATING DEGREE DAYS |
||||||||||||||||
Actual |
10,111 | 10,356 | (245 | ) | -2.4 | % | ||||||||||
10-Year Average |
9,929 | 9,885 | ||||||||||||||
% Change Actual vs. 10-Year Avg. |
1.8 | % | 4.8 | % |
* | Totals and percent changes calculated on un-rounded data; may not correspond to data shown in table |
7 - UNS Gas
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
-Thousands of Dollars- | ||||||||
Numerator: |
||||||||
Net Income |
$ | 16,992 | $ | 19,972 | ||||
Income from Assumed Conversion of Convertible Senior Notes |
1,097 | 1,097 | ||||||
Adjusted Numerator |
$ | 18,089 | $ | 21,069 | ||||
Denominator: |
||||||||
Weighted-average Shares of Common Stock Outstanding: |
||||||||
Common Shares Issued |
36,596 | 35,850 | ||||||
Participating Securities |
76 | 95 | ||||||
Fully Vested Deferred Stock Units |
117 | 107 | ||||||
Total Weighted-average Shares of Common Stock Outstanding and Participating Securities Basic |
36,789 | 36,052 | ||||||
Effect of Dilutive Securities: |
||||||||
Convertible Senior Notes |
4,242 | 4,140 | ||||||
Options and Stock Issuable Under Employee Benefit Plans and the Directors Plans |
374 | 481 | ||||||
Total Shares Diluted |
41,405 | 40,673 | ||||||
8 - Diluted Share Count
1st Quarter 2011 Earnings May 2, 2011 UniSource Energy Corporation |
UniSource Energy Safe Harbor Safe Harbor and Non-GAAP Measures This document contains forward-looking information that involves risks and uncertainties, that include, but are not limited to: state and federal regulatory and legislative decisions and actions; regional economic and market conditions which could affect customer growth and energy usage; weather variations affecting energy usage; the cost of debt and equity capital and access to capital markets; the performance of the stock market and changing interest rate environment, which affect the value of the company's pension and other postretirement benefit plan assets and the related contribution requirements and expense; unexpected increases in O&M expense; resolution of pending litigation matters; changes in accounting standards; changes in critical accounting estimates; the ongoing restructuring of the electric industry; changes to long-term contracts; the cost of fuel and power supplies; performance of TEP's generating plants; and other factors listed in UniSource Energy's Form 10-K and 10-Q filings with the Securities and Exchange Commission. The preceding factors may cause future results to differ materially from historical results or from outcomes currently expected by UniSource Energy.The Company's press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company's financial statements. Non-GAAP financial measures utilized by the Company include presentations of revenues, operating expenses, operating income and earnings (loss) per share. The Company uses these non-GAAP measures to evaluate the operations of the Company. Certain non-GAAP financial measures utilized by the Company exclude: the impact of non-recurring items: the effect of accounting changes or adjustments; expenses that are reimbursed by third parties; and other items. The Company's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings or cash flow capacity of the Company's operations. Management also believes that the presentation of the non-GAAP financial measures is largely consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures with respect to prior periods. 1 |
(CHART) UniSource Energy Earnings Walk 2 1st Quarter 2011 vs. 1st Quarter 2010Per Diluted Share Q1 2010 Diluted EPS UNS Base O&M TEP Wholesale Transmission Q1 2011 Diluted EPS UNS Tax Adjustment Related to Prior Periods UNS Depr. & Amort. TEP L-T Wholesale Margin TEP and UES Retail Gross Margin Other |
TEP Retail kWh Sales 3 (CHART) (CHART) (CHART) (CHART) |
&A;#X!4`/5:%@$V0%<-)/^]-1\,M`=BD"7B
M%#`2DB2#`@!X06IH $T$]``9:"43Z$;DC`4O-$'R.JB551`&4(Z6A&C,!``T0H&
M,'``.Y`%*%(*VBJV8%@*"X$B-S((E)`08BNI99L+)Y(8!78)%?J)GD(*/9(/
M[QJQ6U16')$+>ANO<%M@@SNVE;:V&SLB3AK_%X,@#AH+M[>0K=H*N"9B`6)0
M!55%?U7``IWB`57F&'4@!T'@I;+*/0[79!(P!V-```=0!OZ6%3^+`BZP!P7%
M0KHA"`&""E%+0%(R0VJ1.`9P`#5Z!L3K!RY``R#`MI)K8,[WMZD@L86ZI#61
MKY*0MXW+I>(`N((@(-PK'JZ`L> (`,'H+R51@,"X`4V'N0T+@`J\+1>
M\0 62#,*Z,50:;B
M8(.[B6BZM@^M*A&&7QW6"93%B;RRV1,FP?O]U/QE7VTJ/1A,JM(;V\OC5P?6
MP9GBW5/E71[>"00&+@Q^NA5FX?;S*(Y*81C,JU1LP7/DPO^S."LFW3U255:`
M530U7F.-2BH:8" 7'/.W2)==,R)
M$WTTND+S'+G2JN:,=.=1,QVZNOK:&Z_I^::NNKRR/M``/4C^-)N3;88--IA@
MWWXFVGF6G;;9O<<=_-O$WRVRWRBK7.SQA#>K_,K03[HW\L=7*KCUH:YL^+66
MB^KYYH@WCOGFE8:/\^698VXYY%"+SK314I<;].B ,P2(<0A`L0B4TP`:`PBI*-?FSEWG1@"O$
M`'K```W(0G7@PG+(PB[\PC#D0G700BZD!W78PO\N7,,TU$(P/,,P],(U'$,M
M3,,Z7$,S;$,,@,,][$,TQ(`Y+$,TG,,YO$,^),-`C,,W3$1&7,1`Y,(R?,0_
ME,-(5,0V5$-`+`=']$-,',0\!$0\!$1!7$,PM$1.U,1$Q,-#[$-63$0])$0_
M1,5*S,-')$58#,-6+,131$1+%,52#$,W1,0X-$0]I,0Q),1/3$5?[$4Q'$9G
M-$4VY$5*G$5./,1BQ,1JS$1I[$)KG,-HO,9I],1G_,1PY$9A/$9(!$5G),5J
M?$97M,-O?,5D5$=)Q,1QU,5?7$0OG) _&V1P>:,#4PD!S2O=LR.O%H[C
M4\ROSMD%R6Y?">2(Z@_(_Y=YO^#[PL;CBV;CQ)1J&
M9$0]*D=1`$';63('0`6X,WAUM?]W!X`%(A00IW5GHI$NE4(.%38*(\E34O,.
M-T`,$#FF>*1C*0):ZQ0Y1%`$9VAJ,`8GX$%BBB2Z0,`9S_$#:S`!/">),"$!
M*``#73`!>G!S.T)FG``3<6`#`]`!7T`&&7!M2)S$TG)=UL0#;;")/0J7[2L`
M[TL2(-`IMW+%];N+][O%^;L*%^*_JZ@*%\)3X*$=MMH=?E!R$7)Z?F,"GO@(
M?)@`&,4,R1!2?<.E=T0"A^4?2D`"ZH([>-$+!_`",\4NM`131$`#$$*8KR$G
M\0#(KPL"*W"!X;0+>J`%LG%-,:"58C4'.`%%OJ$]UA0#'%`"5&=UGLK*#4L)
M2&!-!C#_!7F\OE&,L5.L2&%0C!N(Q4RJQ8P2S%)!S."ZL@1W>2SB6'_Z&II!
M,1SW!SCP(*,0ERK]&85G82O,4R*D!"N0KL;H!PWP*;&5`&8#0I4;2XDXE-:,
M(($*U,J0`#/PLJOP!U$`!'S3@FJ0$"A@Q"VZ(P6P!W-0%TOS/5Z]31%M"/,X
M"$CBT(5@!T@`$V*@`YB:D.M!RXZ5T7!4!+@*
8'=I0>K$;P?>^-\((0H_ZU/.;C:#/O>XNN'O>@1[U@:B]"->M
M^QE2K747$'KQ0.?%0*QQ]+TOG>N/\#K8V2'VGS<>T:8WR"X:H6O`_QSTHB](
MZ2V?$+63%[N2OSL[T/!S-&SCU=;X_39
#ZK:8J$)BPK46JJMC:F=@*!P0!!]:JKM]ZKNQ0K<1`$-I:K^IEK>>:">MJ
MK^]:E]E:#/ZZK6XJ$-X0KMR:"0/;K?!JK>PZ$.[J``5KF.':L-?J!,9Y8<2P
MK4]`$)=PKL,`K@41L=V*KP)QK]?UKWVYK19;K>?*#?2ZL-9JLMJ@LNS_T`W9
M.J[L<`G76IC\>JT$\;,]"[`Q.Q`HFZ_5VK(/*Q`DB[!.^[10&[7;*JTF,1L/
M<+58F[5:N[5
+!)Q`%?:VH?*K'T@V-\('SF^`L[K>_X;XO27.\(COF][<3KBZ
MYUUMC9?[X.S^>,A%_FUM.WS6]'ZUO=M]\7Q?O-_G-CC'W>WQC\> 74#.:,R\R`SL!$2>B\#.N4SNS$RGOY
MS>/D3:-,3B]C3NR<3LP8RNG$SLS(3*/\S?3>42B$B*BXS0?9S`6>$9FJP5RJ<1E#>-JK(,:$;$9G?,9ES)ZY
M]4"H05@'/B2BAY+'F2GIB84%CW*H9;!/BH;FBC*,06@'
MFSF'B#E$EDJ8I0$IAN8EJS7AE!K&E8V,S;G3EA:'>GV;E%:'!$P;ZT$IJTEI
M_OE'C3(HYWQ#L\&)F=Y<+^8HG,@'IB"2QEU)L;&>G""-B#H8J:Q;5!9)J`C%
MS6F)O*WF;Q1+I?I;D$BJLLA*KE@JF=A>K#W+M^6;Q^7)I%0)=3PJQI$/!JY*
MK&TJL2S%JA;+RR26O@3
+BXZL?
MOF!$L<+B$BQ2/B&)/)&O":9S\#DMN6MMS`R%,G!&`+)$4[XC*Q1J2"N[$P_*
M%@.P$ZRVDI.32/)P+!"`$8,KU-!#$4T4M^+:(I0]*B=<\C:55F+O10`.:*Z\
M1W.#U$]"\9$`'SMELI2O*(=T%*,U';VM4>2>>X@"!19:Z2HL89W,(YD(-4_3
M'%_T5%>V8GT40>1R@^8??+[+U+CM"&HKRTX]S'57/R^,T54*3R5PS6P%&C(^
M9S<]%B$)1!4OI7P.8]+*`]FDDE)!N_T44F?K>S7&7F.,_U(V?=^-%-XHJTV)
M@DK_'=/5A+<,6"C*6$4V+%PO;9#@B5.5^-H0B\7H@ESQW8ZR!!4MV>232^;3
M7(&08H"GC>]Z>:[MD*H.G8WV8ADAEW'C&=X$?;0GI-;T6U,"I2B6L;D$?8XT
MRYHAPN<@?/#YQ[HL5_WF9TAOUFN[/<%J>F>MV8(Z`+1XY4OLZZ@1&J&N
:9#=93IL3_:++I7>WO_VHC[L,-F=I1[A;K),&87K@]#XQO?^5
M-.!9&[6<:Z+NTL9`
_+3HL(S^ZLC/PTC?X"&^W<
MSJU83]VD".RT,8G$,?I,T(DH+^6L"KT\N>=ZS@45(J-YS1X3IN%"4'6S1`65
M3H9P1CIZ4`C=F0SMS=0ST.1,#UKCLBW,CWZ`BUQKDAH5+,Q#M&\TCW23M9'D
M(;HHM4:;T>:ST;%I$CSA*$-\B8=R&A]M$`0!MH/H-4W;#4YCDFK;C1:ATC_[
MT1MQ-A]AK.7;D1X1RD3+#63C/2AS#CV+TI]`$&IH$V)C,F@;$RQ;CQ8Y`(E"
M4Y?HC3E5,C_-4SG_H:DZ@=(\,34N2Y,RJ37M^Y!/FYI!Q1,=)=0W0PE<@Q(P
M$Q-$=;4I&=0W([1)15(^XM$H>=-3$S8[P53&:K('T3/_()