ITC Improves Profits, Raises 2010 Guidance
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ITC Holdings Corp. (NYSE: ITC), the Novi-based electric transmission company, reported higher sales and net income for the second quarter and six months ended June 30.
Revenue was $168.5 million, up from $157.2 million in 2009, for the quarter. For the six months, revenue was $329.8 million, up from $313.2 million a year earlier.
Net income was $36.3 million or 71 cents a share, up from $30.8 million or 61 cents a share a year earlier. For the six months, net income was $70.5 milion or $1.38 a share, up from $59.5 million or $1.17 a share in the same six months of 2009.
For the six months ended June 30, ITC invested $216 million in capital projects at its operating companies, including $29.3 million, $65.5 million, $114.1 million and $7.1 million at ITCTransmission, METC, ITC Midwest and ITC Great Plains, respectively.
Said Joseph L. Welch, chairman, president and CEO of ITC: “ITC continues to deliver on our commitments to our customers and shareholders through the successful execution of our strategic plan. In addition, as we look to the future, we are encouraged by recent regulatory developments that suggest the necessary transmission reforms we have been advocating are beginning to advance, particularly in the areas of planning and cost allocation. We anticipate these regulatory initiatives will facilitate the development of more regional transmission infrastructure to improve energy delivery, reliability and efficiency, and allow for the interconnection of new renewable resources, consistent with our longer term strategic vision.”
Key drivers that contributed to these results include:
* An increase in net income due to higher rate base and allowance for funds used during construction at all operating companies.
* Higher net income for the quarter and year-to-date period due to lower non-recoverable expenses.
* These increases in net income for the quarter and year-to-date period were partially offset by higher interest expense resulting from our recently completed financing activities for ITC Holdings.
As a result of ITC’s financial performance for the six months ended June 30, ITC raised its 2010 earnings per diluted common share guidance to a range of $2.70 to $2.75, from a previous range of $2.60 to $2.70.
ITC also revised its capital investment guidance for 2010 to a range of $420 million to $460 million, from a range of $405 million to $460 million. The revised guidance reflects expected capital expenditures of $50 million to $60 million, $130 million to $140 million, $220 million to $235 million and $20 million to $25 million for ITCTransmission, METC, ITC Midwest and ITC Great Plains, respectively.
ITC will conduct a conference call to discuss second quarter and year-to-date 2010 earnings results at 11 a.m. Eastern time Thursday, July 29. Those wishing to participate may dial toll-free (877) 644-1296 in the United States or (914) 495-8555 elsewhere; there is no passcode. The conference call replay, available through Aug. 13, 2010, can be accessed by dialing toll-free (800) 642-1687 (U.S.) or (706) 645-9291 (international), passcode 87281817. Investors, the news media and the public may listen to a live internet broadcast of the meeting at investor.itc-holdings.com. The webcast also will be archived on the ITC website at investor.itc-holdings.com.
More detail about the 2010 second quarter results and year-to-date results may be found in ITC’s Form 10-Q filing. Once filed with the Securities and Exchange Commission, an electronic copy of our 10-Q can be found at http://investor.itc-holdings.com.
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