EX-99.2 3 c04114exv99w2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2
UniSource Energy Corporation
Supplemental Earnings Information
August 3, 2010
TABLE OF CONTENTS
         
Safe Harbor and Non-GAAP Measures
     1  
Variance Explanation – 2nd Quarter
     2  
Variance Explanation – Year-to-Date
     3  
Operations & Maintenance Components
     4  
TEP Operating Statistics
     5  
TEP Margin Revenues
     6  
UNS Electric Operating Statistics
     7  
UNS Gas Operating Statistics
     8  
Basic & Diluted Shares Outstanding
     9  
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 forecast assumptions and estimates below are not intended to be a full list of factors which could cause UniSource Energy’s future results to differ from current expectations. Please refer to UniSource Energy’s SEC filings for more information regarding risks and other uncertainties that could cause current expectations to differ from future results.
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.

 

 

UNISOURCE ENERGY 2ND QUARTER EARNINGS VARIANCE EXPLANATION
                                         
2nd Quarter 2009 UniSource Energy Net Income   $ 31.3  
 
                                        
    2nd Quarter     Change          
TEP   2010     2009     Pre-Tax     After Tax          
    -millions of dollars-          
Retail Margin Revenues
   $ 136.5     $ 141.6     $ (5.1 )   $ (3.2 )        
L-T Wholesale Margin Revenues
     6.9       5.2       1.7       1.1          
Transmission Revenues
     3.7       4.4       (0.7 )     (0.4 )        
 
                                
TEP Utility Gross Margin (Non-GAAP)
     147.1       151.2     $ (4.1 )     (2.5 )        
Base O&M
     55.4       57.7       (2.3 )     (1.4 )        
Depreciation (1)
     24.9       26.8       (1.9 )     (1.2 )        
Amortization (1)
     8.0       11.0       (3.0 )     (1.9 )        
Operating synergies related to Springerville Units 3&4
     6.0       3.4       2.6       1.6          
Other Income (1)
     2.0       8.6       (6.6 )     (4.1 )        
Total Interest Expense (1)
     21.6       22.5       (0.9 )     (0.6 )        
Other Line Item Changes
     (2.6 )     (2.5 )     (0.1 )     (0.1 )        
Income Tax Expense (Benefit)
     15.0       16.2     NM       (1.2 )        
 
                                
TEP Net Income (GAAP)
   $ 27.6     $ 26.5     NM     $ 1.1          
 
                                
 
                                        
Change in TEP Net Income     1.1  
 
                                        
Other Business Segments — After Tax Amounts
                                        
UNS Electric Net Income
     2.0       1.5     NM       0.5          
UNS Gas Net Income
     0.6       0.0     NM       0.6          
After-Tax Income from MEH, UED and Consolidating Adj.
     (1.5 )     3.3     NM       (4.8 )        
 
                                
 
                                        
Total Other Income and Consolidating Adjustments
     1.1       4.8     NM       (3.7 )        
 
                                
 
                                        
Change in UNS Electric, UNS Gas and Other     (3.7 )
 
                                        
2nd Quarter 2010 UniSource Energy Net Income   $ 28.7  
     
(1)   In June 2009, TEP adjusted its accounting for a 2006 investment in 14.14% of Springerville Unit 1 lease equity. As a result, TEP recorded a net increase to the income statement of $0.6 million, before tax. The adjustment recorded in June 2009 included additional depreciation expense of $7 million; a reduction of amortization expense of $3 million; a reduction of interest expense on capital leases of $2 million; and $3 million of equity in earnings which is included in Other Income on the income statement . For comparison purposes, these amounts have been excluded from 2nd quarter 2009 depreciation, amortization, interest expense and other income shown above.
2 — Q2 Variance Explanation

 

 

 

UNISOURCE ENERGY YEAR-TO-DATE EARNINGS VARIANCE EXPLANATION
                                         
YTD June 30, 2009 UniSource Energy Net Income   $ 36.2  
 
                                        
    YTD June 30,     Change          
TEP   2010     2009     Pre-Tax     After Tax          
    -millions of dollars-          
Retail Margin Revenues
   $ 244.9     $ 249.2     $ (4.3 )   $ (2.7 )        
L-T Wholesale Margin Revenues
     14.9       13.1       1.8       1.1          
Transmission Revenues
     11.2       8.3       2.9       1.8          
 
                                
TEP Utility Gross Margin (Non-GAAP)
     271.0       270.6     $ 0.4       0.2          
 
                                        
Loss related to the settlement of a dispute over transactions with the California Power Exchange (CPX)
     (3.0 )     0.0       (3.0 )     (1.9 )        
Base O&M
     109.6       120.8       (11.2 )     (6.9 )        
Depreciation (1)
     48.9       53.5       (4.6 )     (2.9 )        
Amortization (1)
     15.8       19.3       (3.5 )     (2.2 )        
Operating synergies related to Springerville Units 3&4
     12.5       5.9       6.6       4.1          
Other Income (1)
     4.1       10.9       (6.8 )     (4.2 )        
Total Interest Expense (1)
     43.5       44.2       (0.7 )     (0.4 )        
Other Line Item Changes
     (7.4 )     (7.7 )     0.3       0.2          
Income Tax Expense (Benefit)
     21.4       15.9       5.5       5.5          
 
                                
TEP Net Income (GAAP)
   $ 38.0     $ 26.0     NM     $ 12.0          
 
                                
 
                                        
Change in TEP Net Income     12.0  
 
                                        
Other Business Segments — After Tax Amounts
                                        
UNS Electric Net Income (2)
     5.0       2.3     NM       2.7          
UNS Gas Net Income
     6.4       4.9     NM       1.5          
(Loss) Income from MEH, UED and Consolidating Adj.
     (0.7 )     3.0     NM       (3.7 )        
 
                                
Total Other Income and Consolidating Adjustments
     10.7       10.2     NM       0.5          
 
                                
 
                                        
Change in UNS Electric, UNS Gas and Other     0.5  
 
                                        
YTD June 30, 2010 UniSource Energy Net Income   $ 48.7  
     
(1)   In June 2009, TEP adjusted its accounting for a 2006 investment in 14.14% of Springerville Unit 1 lease equity. As a result, TEP recorded a net increase to the income statement of $0.6 million, before tax. The adjustment recorded in June 2009 included additional depreciation expense of $7 million; a reduction of amortization expense of $3 million; a reduction of interest expense on capital leases of $2 million; and $3 million of equity in earnings which is included in Other Income on the income statement . For comparison purposes, these amounts have been excluded from 2nd quarter 2009 depreciation, amortization, interest expense and other income shown above.
 
(2)   UNS Electric’s results in the first six months of 2010 includes a pre-tax gain of $3 million related to the settlement of a dispute over transactions with the CPX.
3 — YTD Variance Explanation

 

 

 

UNISOURCE ENERGY AND TEP O&M
                                 
UniSource Energy   2nd Quarter     YTD June 30,  
O&M Components   2010     2009     2010     2009  
    -millions of dollars-     -millions of dollars-  
TEP Base O&M (Non-GAAP)
   $ 55.4     $ 57.7     $ 109.6     $ 120.8  
UNS Gas Base O&M
     6.1       5.9       12.3       12.1  
UNS Electric Base O&M
     5.3       4.7       10.1       9.4  
Consolidating Adjustments & Other
     (2.6 )     (1.9 )     (4.6 )     (3.4 )
 
                        
UniSource Energy Base O&M (Non-GAAP)
   $ 64.2     $ 66.4     $ 127.4     $ 138.9  
Reimbursed O&M Related to Springerville Units 3 and 4
     13.8       8.6       26.5       17.8  
O&M Related to Customer-funded Renewable Energy and DSM Programs
     9.1       3.9       16.1       7.2  
 
                        
UniSource Energy O&M (GAAP)
   $ 87.1     $ 78.9     $ 170.0     $ 163.9  
 
                        
                                 
TEP   2nd Quarter     YTD June 30,  
O&M Components   2010     2009     2010     2009  
    -millions of dollars-     -millions of dollars-  
Wages, A&G, Other
   $ 36.6     $ 37.8     $ 70.8     $ 74.3  
Generating Plant Maintenance Expense
     15.4       15.6       31.8       38.2  
Pension and Postretirement Benefits Expense
     3.4       4.3       7.0       8.8  
 
                        
TEP Base O&M (Non-GAAP)
   $ 55.4     $ 57.7     $ 109.6     $ 120.8  
Reimbursed O&M Related to Springerville Units 3 and 4
     13.8       8.6       26.5       17.8  
O&M Related to Customer-funded Renewable Energy and DSM Programs
     6.9       2.8       12.1       5.2  
 
                        
TEP O&M (GAAP)
   $ 76.1     $ 69.1     $ 148.2     $ 143.8  
 
                        
4 — O&M

 

 

 

TEP — OPERATING STATISTICS
                                                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2010     2009     Incr (Decr)     % Change     2010     2009     Incr (Decr)     % Change  
AVG. ELECTRIC CUSTOMERS
                                                                
Residential
     365,687       364,885       802       0.2 %     365,657       364,855       802       0.2 %
Commercial
     35,861       35,643       218       0.6 %     36,524       35,573       951       2.7 %
Industrial
     632       628       4       0.7 %     632       632       (6 )     -0.9 %
Mining
     2       2       —       0.0 %     2       2       —       0.0 %
Other
     62       61       1       1.6 %     62       61       1       1.6 %
 
                                                
Total
     402,244       401,219       1,025       0.3 %     402,877       401,123       1,754       0.4 %
 
                                                
 
                                                                
RETAIL SALES — MWH
                                                                
Residential
     909,808       948,839       (39,031 )     -4.1 %     1,664,546       1,676,017       (11,471 )     -0.7 %
Commercial
     508,991       521,696       (12,705 )     -2.4 %     903,598       925,559       (21,961 )     -2.4 %
Industrial
     535,880       549,331       (13,451 )     -2.4 %     1,009,651       1,038,839       (29,188 )     -2.8 %
Mining
     271,114       264,925       6,189       2.3 %     532,151       523,619       8,532       1.6 %
Other
     68,211       71,599       (3,388 )     -4.7 %     112,870       121,615       (8,745 )     -7.2 %
 
                                                
Total
     2,294,004       2,356,390       (62,386 )     -2.6 %     4,222,816       4,285,649       (62,833 )     -1.5 %
 
                                                
 
                                                                
RETAIL USAGE — KWH/CUSTOMER
                                                                
Residential
     2,488       2,600       (112 )     -4.3 %     4,552       4,594       (41 )     -0.9 %
Commercial
     14,193       14,637       (443 )     -3.0 %     24,740       26,019       (1,279 )     -4.9 %
Industrial
     847,911       875,195       (27,284 )     -3.1 %     1,597,549       1,643,733       (46,184 )     -2.8 %
Mining
     135,557,000       132,462,500       3,094,500       2.3 %     266,075,500       261,809,500       4,266,000       1.6 %
Other
     1,100,177       1,173,754       (73,577 )     -6.3 %     1,820,484       1,993,689       (173,205 )     -8.7 %
 
                                                
Total
     5,703       5,873       (170 )     -2.9 %     10,482       10,684       (202 )     -1.9 %
 
                                                
 
                                                                
WEATHER — COOLING DEGREE DAYS
                                                                
Actual
     395       417       (22 )     -5.3 %     395       417       (22 )     -5.3 %
10-Year Average
     455       440                       456       441                  
% Change Actual vs. 10-Year Avg.
     -13.2 %     -5.2 %                     -13.4 %     -5.4 %                
 
                                                                
ENERGY MARKET INDICATORS
                                                                
Avg. Wholesale Power Prices Palo Verde Index — $/MWh
                                                                
On Peak
   $ 35.65     $ 30.46     $ 5.19       17.0 %   $ 40.42     $ 32.11     $ 8.31       25.9 %
Off Peak
   $ 24.01     $ 19.16     $ 4.85       25.3 %   $ 29.39     $ 22.48     $ 6.91       30.7 %
 
                                                                
Avg. Natural Gas Prices Permian Index — $/MMBtu
   $ 3.85     $ 2.76     $ 1.09       39.5 %   $ 4.55     $ 3.17     $ 1.38       43.5 %
     
*   Totals and percent changes calculated on un-rounded data; may not correspond to data shown in table
5 — TEP Operating Stats

 

 

 

TEP — RETAIL AND WHOLESALE MARGIN REVENUES
                                                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2010     2009     Incr (Decr)     % Change     2010     2009     Incr (Decr)     % Change  
RETAIL REVENUES — $ MILLIONS
                                                                
Margin Revenues:
                                                                
Residential
   $ 59.3     $ 61.8       (2.5 )     -4.0 %   $ 106.6     $ 107.1       (0.5 )     -0.5 %
Commercial
     41.7       42.6       (0.9 )     -2.1 %     72.3       72.90       (0.6 )     -0.8 %
Industrial
     24.3       25.7       (1.4 )     -5.4 %     45.3       48.30       (3.0 )   NM  
Mining
     7.8       7.8       —       0.0 %     15.1       14.90       0.2     NM  
Other
     3.4       3.7       (0.3 )     -8.1 %     5.6       6.00       (0.4 )     -6.7 %
 
                                                
Total
   $ 136.5     $ 141.6     $ (5.1 )     -3.6 %   $ 244.9     $ 249.2     $ (4.3 )     -1.7 %
DSM / REST
     10.0       2.8       7.2     NM       17.9       5.2       12.7     NM  
Fuel Revenues:
                                                                
Recovered from Customers
     71.1       75.7       (4.6 )     -6.1 %     122.1       123.2       (1.1 )     -0.9 %
 
                                                  
Total Retail Revenues
   $ 217.6     $ 220.1     $ (2.5 )     -1.1 %   $ 384.9     $ 377.6     $ 7.3       1.9 %
 
                                                
 
                                                                
RETAIL REVENUES — CENTS / KWH
                                                                
Margin Revenues:
                                                                
Residential
     6.52       6.51       0.00       0.1 %     6.40       6.39       0.01       0.2 %
Commercial
     8.19       8.17       0.03       0.3 %     8.00       7.88       0.13       1.6 %
Industrial
     4.53       4.68       (0.14 )     -3.1 %     4.49       4.65       (0.16 )     -3.5 %
Mining
     2.88       2.94       (0.07 )     -2.3 %     2.84       2.85       (0.01 )     -0.3 %
Other
     4.98       5.17       (0.18 )     -3.5 %     4.96       4.93       0.03       0.6 %
 
                                                
Total
     5.95       6.01       (0.06 )     -1.0 %     5.80       5.81       (0.02 )     -0.3 %
DSM / REST
     0.44       0.12       0.32     NM       0.42       0.12       0.30     NM  
Fuel Revenues:
                                                                
Recovered from Customers
     3.10       3.21       (0.11 )     -3.5 %     2.89       2.87       0.02       0.6 %
 
                                                
Total Retail Revenues
     9.49       9.34       0.15       1.6 %     9.11       8.81       0.30       3.5 %
 
                                                
 
                                                                
LONG-TERM WHOLESALE MARGIN — $ MILLIONS
                                                                
Long-term Wholesale Revenues
   $ 13.0     $ 10.1       2.9       28.7 %   $ 27.9     $ 24.2       3.7       15.3 %
Fuel and Purchased Power Expense
     6.1       4.9       1.2       24.5 %     13.0       11.1       1.9       17.1 %
 
                                                
Net
   $ 6.9     $ 5.2       1.7       32.7 %   $ 14.9     $ 13.1       1.8       13.7 %
 
                                                
6 — TEP Margin Revenues

 

 

 

UNS ELECTRIC — OPERATING STATISTICS
                                                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2010     2009     Incr (Decr)     % Change     2010     2009     Incr (Decr)     % Change  
AVG. ELECTRIC CUSTOMERS
                                                                
Residential
     80,209       79,496       713       0.9 %     80,116       79,452       664       0.8 %
Commercial
     10,352       10,342       10       0.1 %     10,344       10,343       1       0.0 %
Industrial
     24       21       3       14.3 %     24       20       4       20.0 %
Mining
     1       1       —       0.0 %     1       1       —       0.0 %
Other
     266       263       3       1.1 %     266       262       4       1.5 %
 
                                                
Total
     90,852       90,123       729       0.8 %     90,751       90,078       673       0.7 %
 
                                                
 
                                                                
RETAIL SALES — MWH
                                                                
Residential
     175,921       184,126       (8,205 )     -4.5 %     351,266       350,696       570       0.2 %
Commercial
     157,277       159,585       (2,308 )     -1.4 %     288,585       293,235       (4,650 )     -1.6 %
Industrial
     49,377       49,478       (101 )     -0.2 %     101,211       87,834       13,377       15.2 %
Mining
     51,287       39,680       11,607       29.3 %     98,139       73,607       24,532     NM  
Other
     474       476       (2 )     -0.4 %     1,040       1,087       (47 )     -4.3 %
 
                                                
Total
     434,336       433,345       991       0.2 %     840,241       806,459       33,782       4.2 %
 
                                                
 
                                                                
RETAIL USAGE — KWH/CUSTOMER
                                                                
Residential
     2,193       2,316       (123 )     -5.3 %     4,384       4,414       (29 )     -0.7 %
Commercial
     15,193       15,431       (238 )     -1.5 %     27,899       28,351       (452 )     -1.6 %
Industrial
     2,057,375       2,356,095       (298,720 )     -12.7 %     4,217,125       4,391,700       (174,575 )     -4.0 %
Mining
     51,287,000       39,680,000       11,607,000       29.3 %     98,139,000       73,607,000       24,532,000       33.3 %
Other
     1,782       1,810       (28 )     -1.5 %     3,910       4,149       (239 )     -5.8 %
 
                                                
Total
     4,781       4,808       (28 )     -0.6 %     9,259       8,953       306       3.4 %
 
                                                
 
                                                                
RETAIL REVENUES — MILLIONS
                                                                
Margin Revenues:
                                                                
Residential
   $ 4.6     $ 4.7       (0.1 )     -2.1 %   $ 9.1     $ 9.0       0.1       1.1 %
Commercial
     5.8       5.8       —       0.0 %     10.8       10.8       (0.0 )     -0.2 %
Industrial
     1.9       1.6       0.3       18.8 %     3.6       3.1       0.6       19.4 %
Mining
     1.1       0.8       0.3       37.5 %     2.1       1.6       0.5       32.5 %
Other
     0.0       0.1       (0.1 )     -95.0 %     0.1       0.2       (0.1 )     -59.6 %
 
                                                
Total Margin Revenues
   $ 13.4     $ 13.0     $ 0.4       3.1 %   $ 25.7     $ 24.6     $ 1.1       4.3 %
DSM / REST
     2.0       1.0       1.0       100.0 %     3.6       1.7       1.9       115.5 %
Fuel Revenues:
                                                                
Recovered from Customers
     27.0       33.2       (6.2 )     -18.7 %     50.4       64.5       (14.1 )     -21.8 %
 
                                                
Total Retail Revenues
   $ 42.4     $ 47.2     $ (4.8 )     -10.2 %   $ 79.7     $ 90.8     $ (11.1 )     -12.2 %
 
                                                
 
                                                                
WEATHER — COOLING DEGREE DAYS
                                                                
Actual
     2,437       2,967       (530 )     -17.9 %     2,477       3,043       (566 )     -18.6 %
10-Year Average
     2,918       3,021                       3,029       3,134                  
% Change Actual vs. 10-Year Avg.
     -16.5 %     -1.8 %                     -18.2 %     -2.9 %                
     
*   Totals and percent changes calculated on un-rounded data; may not correspond to data shown in table
7 — UNS Electric Op. Stats

 

 

 

UNS GAS — OPERATING STATISTICS
                                                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2010     2009     Incr (Decr)     % Change     2010     2009     Incr (Decr)     % Change  
AVG. GAS CUSTOMERS
                                                                
Residential
     133,135       132,414       721       0.5 %     133,425       132,813       612       0.5 %
Commercial
     11,260       11,371       (111 )     -1.0 %     11,332       11,449       (117 )     -1.0 %
Industrial
     23       24       (1 )     -4.2 %     23       24       (1 )     -4.2 %
All Other
     1,110       1,102       8       0.7 %     1,108       1,102       6       0.5 %
 
                                                
Total
     145,528       144,911       617       0.4 %     145,888       145,388       500       0.3 %
 
                                                
 
                                                                
RETAIL SALES - THOUSANDS OF THERMS
                                                                
Residential
     11,151       9,797       1,354       13.8 %     44,553       39,366       5,186       13.2 %
Commercial
     5,576       5,343       233       4.4 %     17,021       15,717       1,305       8.3 %
Industrial
     360       444       (84 )     -18.9 %     1,052       1,103       (51 )     -4.6 %
All Other
     978       836       142       17.0 %     4,113       3,700       413       11.2 %
 
                                                
Total
     18,065       16,419       1,646       10.0 %     66,739       59,886       6,853       11.4 %
 
                                                
 
                                                                
RETAIL USAGE - THERMS/CUSTOMER
                                                                
Residential
     84       74       10       13.2 %     334       296       38       12.7 %
Commercial
     495       470       25       5.4 %     1,502       1,373       129       9.4 %
Industrial
     15,640       18,480       (2,840 )     -15.4 %     45,742       45,954       (211 )     -0.5 %
All Other
     881       759       123       16.2 %     3,712       3,358       354       10.6 %
 
                                                
Total
     124       113       11       9.6 %     457       412       46       11.1 %
 
                                                
 
                                                                
RETAIL REVENUES — MILLIONS
                                                                
Margin Revenues:
                                                                
Residential
   $ 7.7     $ 6.6       1.1       16.7 %   $ 21.8     $ 19.5       2.3       11.8 %
Commercial
     2.1       1.9       0.2       10.5 %     5.5       5.1       0.5       9.5 %
All Other
     0.3       0.3       —       0.0 %     1.2       1.1       0.1       5.6 %
 
                                                
Total Margin Revenues
   $ 10.1     $ 8.8     $ 1.3       14.8 %   $ 28.5     $ 25.6     $ 2.8       11.1 %
DSM Revenues
     0.2       0.1       0.1       62.0 %     0.4       0.3     $ 0.2       60.2 %
Transport/NSP Revenues
     3.2       3.4       (0.2 )     -5.0 %     8.4       8.7     $ (0.3 )     -3.2 %
Fuel Revenues:
                                                                
Recovered from Customers
     11.9       13.5       (1.6 )     -11.9 %     44.8       50.7       (5.8 )     -11.5 %
 
                                                
Total Gas Revenues
   $ 25.4     $ 25.8     $ (0.4 )     -1.6 %   $ 82.1     $ 85.2     $ (3.1 )     -3.7 %
 
                                                
 
                                                                
WEATHER — HEATING DEGREE DAYS
                                                                
Actual
     3,030       2,324       706       30.4 %     13,396       11,578       1,818       15.7 %
10-Year Average
     2,433       2,297                       12,408       12,181                  
% Change Actual vs. 10-Year Avg.
     24.5 %     1.2 %                     8.0 %     -5.0 %                
     
*   Totals and percent changes calculated on un-rounded data; may not correspond to data shown in table
8 — UNS Gas Op. Stats

 

 

 

BASIC AND DILUTED SHARES OUTSTANDING
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2010     2009     2010     2009  
    -Thousands of Dollars-     -Thousands of Dollars-  
Numerator:
                                
Net Income
   $ 28,715     $ 31,275     $ 48,688     $ 36,194  
Income from Assumed Conversion of Convertible Senior Notes
     1,097       1,097       2,195       2,195  
 
                        
Adjusted Numerator
   $ 29,812     $ 32,372     $ 50,883     $ 38,389  
 
                        
 
                                
Denominator:
                                
Weighted-average Shares of Common Stock Outstanding:
                                
Common Shares Issued
     36,106       35,589       36,006       35,573  
Fully Vested Deferred Stock Units
     121       98       114       103  
Participating Securities
     95       —       95       —  
 
                        
Total Weighted-average Shares of Common Stock Outstanding — Basic
     36,322       35,687       36,215       35,676  
Effect of Dilutive Securities:
                                
Convertible Senior Notes
     4,166       4,087       4,153       4,079  
Options and Stock Issuable Under Employee Benefit Plans and the Directors’ Plans
     412       449       446       494  
 
                        
Total Shares — Diluted
     40,900       40,223       40,814       40,249  
 
                        
Stock options to purchase 232,000 and 395,000 shares of Common Stock were outstanding during the six months ended June 30, 2010 and 2009, respectively, but were not included in the computation of diluted EPS because the stock options’ exercise prices were greater than the average market price of the Common Stock.
9 — Diluted Share Count