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8-K - UIL HOLDINGS CORPORATION 8-K 12-1-2011 - UIL HOLDINGS CORPform8k.htm
EX-99.3 - EXHIBIT 99.3 - UIL HOLDINGS CORPex99_3.htm
EX-99.1 - EXHIBIT 99.1 - UIL HOLDINGS CORPex99_1.htm
EX-99.2 - EXHIBIT 99.2 - UIL HOLDINGS CORPex99_2.htm

EXHIBIT 99.4
 
 
FINANCIAL STATEMENTS
 
OF
 
THE BERKSHIRE GAS COMPANY
 
AS OF SEPTEMBER 30, 2011 AND DECEMBER 31, 2010 AND
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
 
(UNAUDITED)
 
 
 

 
 
THE BERKSHIRE GAS COMPANY
 
TABLE OF CONTENTS
 
 
Page Number
   
Financial Statements:
   
Statement of Income for the three and nine months ended September 30, 2011 and 2010
3
   
Balance Sheet as of September 30, 2011 and December 31, 2010
4
   
Statement of Cash Flows for the nine months ended September 30, 2011 and 2010
6
   
Statement of Changes in Shareholder's Equity
7

 
 

 
 
THE BERKSHIRE GAS COMPANY
STATEMENT OF INCOME
(In Thousands)
(Unaudited)

   
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
             
   
2011
   
2010
   
2011
   
2010
 
                         
                         
Operating Revenues
  $ 5,719     $ 5,888     $ 49,138     $ 48,823  
                                 
Operating Expenses
                               
Operation
                               
Natural gas purchased
    2,103       2,088       24,466       25,314  
Operation and maintenance
    3,553       3,089       10,740       9,400  
Depreciation and amortization
    1,220       1,529       4,847       4,939  
Goodwill impairment charge
    -       -       -       5,994  
Taxes - other than income taxes
    590       529       1,855       1,735  
Total Operating Expenses
    7,466       7,235       41,908       47,382  
Operating Income
    (1,747 )     (1,347 )     7,230       1,441  
                                 
Other Income and (Deductions), net
    308       335       756       1,333  
                                 
Interest Charges, net
                               
Interest on long-term debt
    756       792       2,315       2,422  
Other interest, net
    7       6       51       19  
      763       798       2,366       2,441  
Amortization of debt expense and redemption premiums
    35       21       68       66  
Total Interest Charges, net
    798       819       2,434       2,507  
                                 
                                 
Income Before Income Taxes, Equity Earnings
    (2,237 )     (1,831 )     5,552       267  
                                 
Income Taxes
    (889 )     (714 )     2,143       2,438  
                                 
Net Income
    (1,348 )     (1,117 )     3,409       (2,171 )
Less:
                               
Preferred Stock Dividends of Subsidiary, Noncontrolling Interests
    -       1       2       4  
                                 
Net Income attributable to The Berkshire Gas Company
  $ (1,348 )   $ (1,118 )   $ 3,407     $ (2,175 )
 
THE BERKSHIRE GAS COMPANY
STATEMENT OF COMPREHENSIVE INCOME
For the Three and Nine Months Ended September 30, 2011 and 2010
(Thousands of Dollars)

   
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
   
2011
   
2010
   
2011
   
2010
 
                         
Net Income
  $ (1,348 )   $ (1,117 )   $ 3,409     $ (2,171 )
Other Comprehensive Loss
    (22 )     -       (16 )     -  
Less:
                               
Preferred Stock Dividends of Subsidiary, Noncontrolling Interests
    -       1       2       4  
Comprehensive Income
  $ (1,370 )   $ (1,118 )   $ 3,391     $ (2,175 )
 
 
3

 
 
THE BERKSHIRE GAS COMPANY
BALANCE SHEET
 
ASSETS
(In Thousands)
(Unaudited)

   
September 30,
2011
   
December 31,
2010
 
Current Assets
           
Unrestricted cash and temporary cash investments
  $ 9,516     $ 5,993  
Accounts receivable less allowance of $740 and $1,260, respectively
    3,893       8,483  
Unbilled revenues
    -       1,504  
Current regulatory assets
    938       5,021  
Deferred income taxes
    909       909  
Natural gas in storage, at average cost
    4,551       4,872  
Materials and supplies
    572       392  
Prepayments
    1,649       1,701  
Total Current Assets
    22,028       28,875  
                 
Other investments
    1,477       1,535  
                 
Net Property, Plant and Equipment
    112,865       111,222  
                 
Regulatory Assets (future amounts owed from customers through the ratemaking process)
    39,245       39,660  
                 
Deferred Charges and Other Assets
               
Unamortized debt issuance expenses
    1,115       1,182  
Goodwill
    52,525       52,476  
Other
    46       11  
Total Deferred Charges and Other Assets
    53,686       53,669  
                 
Total Assets
  $ 229,301     $ 234,961  

 
4

 
 
THE BERKSHIRE GAS COMPANY
BALANCE SHEET
 
LIABILITIES AND CAPITALIZATION
(In Thousands)
(Unaudited)
 
   
September 30,
2011
   
December 31,
2010
 
Current Liabilities
           
Current portion of long-term debt
  $ 2,393     $ 5,417  
Accounts payable
    2,312       4,354  
Accrued liabilities
    4,297       3,930  
Current regulatory liabilities
    685       492  
Interest accrued
    416       877  
Taxes accrued
    4,702       3,425  
Current portion of derivative liabilities
    4       16  
Total Current Liabilities
    14,809       18,511  
                 
Noncurrent Liabilities
               
Pension accrued
    990       1,090  
Other
    18,655       19,132  
Total Noncurrent Liabilities
    19,645       20,222  
                 
Deferred Income Taxes (future tax liabilities owed to taxing authorities)
    13,865       14,372  
                 
                 
Regulatory Liabilities (future amounts owed to customers through the ratemaking process)
    32,359       32,890  
                 
Commitments and Contingencies
               
                 
Capitalization
               
Long-term debt
    39,558       40,263  
                 
Preferred Stock of Subsidiary
               
Redeemable preferred stock, noncontrolling interests
    -       78  
                 
Common Stock Equity
               
Paid-in capital
    106,095       106,046  
Retained earnings
    2,993       2,586  
Accumulated other comprehensive income
    (23 )     (7 )
Net Common Stock Equity
    109,065       108,625  
                 
Total Capitalization
    148,623       148,966  
                 
Total Liabilities and Capitalization
  $ 229,301     $ 234,961  

 
5

 

THE BERKSHIRE GAS COMPANY
STATEMENT OF CASH FLOWS
(In Thousands)
(Unaudited)

   
Nine Months Ended
September 30,
 
   
2011
   
2010
 
Cash Flows From Operating Activities
           
Net income
  $ 3,409     $ (2,171 )
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    4,915       5,005  
Deferred income taxes
    (1,594 )     (1,232 )
Pension expense
    (81 )     371  
Goodwill impairment charge
    -       5,994  
Deferred purchased gas
    3,320       3,505  
Other non-cash items, net
    352       (205 )
Changes in:
               
Accounts receivable, net
    4,418       4,487  
Unbilled revenues
    1,291       1,156  
Prepayments
    51       (516 )
Natural gas in storage
    320       436  
Accounts payable
    (1,855 )     (3,211 )
Interest accrued
    (461 )     (434 )
Taxes accrued
    1,429       1,951  
Accrued liabilities
    367       (402 )
Other assets
    189       32  
Other liabilities
    (624 )     (840 )
Total Adjustments
    12,037       16,097  
Net Cash provided by Operating Activities
    15,446       13,926  
                 
Cash Flows from Investing Activities
               
Plant expenditures including AFUDC debt
    (5,969 )     (3,917 )
Other
    122       4,599  
Net Cash (used in) Investing Activities
    (5,847 )     682  
                 
Cash Flows from Financing Activities
               
Payment on long-term debt
    (3,000 )     (3,000 )
Line of credit borrowings (repayments)
    -       (5,700 )
Payment of common stock dividend
    (3,000 )     -  
Other
    (76 )     (4 )
Net Cash provided by Financing Activities
    (6,076 )     (8,704 )
                 
Unrestricted Cash and Temporary Cash Investments:
               
Net change for the period
    3,523       5,904  
Balance at beginning of period
    5,993       370  
Balance at end of period
  $ 9,516     $ 6,274  
 
 
6

 
 
THE BERKSHIRE GAS COMPANY
STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
September 30, 2011
(In Thousands)
(Unaudited)

                           
Accumulated
       
                           
Other
       
   
Common Stock
   
Paid-in
   
Retained
   
Comprehensive
       
   
Shares
   
Amount
   
Capital
   
Earnings
   
Income
   
Total
 
Balance as of December 31, 2010
    100     $ -     $ 106,046     $ 2,586     $ (7 )   $ 108,625  
                                                 
Net income
                            3,409               3,409  
Adjustment to goodwill
                    49                       49  
Other comprehensive income, net of tax
                                    (16 )     (16 )
Payment of common stock dividend
                            (3,000 )             (3,000 )
Payment of preferred stock dividend
                            (2 )             (2 )
Balance as of September 30, 2011
  $ 100     $ -     $ 106,095     $ 2,993     $ (23 )   $ 109,065  
 
 
7