ITC Profits Fall On One-Time Charges
NOVI — ITC Holdings Corp. (NYSE: ITC) last week reported net income of $42.4 million or 81 cents a share in the second quarter, down from $43 million or 83 cents a share in the second quarter of 2011.
Revenue was $197.4 million in the quarter, up from $185.1 million a year earlier.
For the six months, net income was $88.4 millionor $1.70 a share, up from $85 million or $1.64 a share a year earlier. Revenue was $394.1 million, up from $364.5 million a year earlier.
The company updated its earnings guidance to $3.95 fo $4.05 a share for 2012.
Operating earnings for the second quarter were $54.8 million or $1.05 a share, up from $43 million or 83 cents a share a year earlier. For the six months, operating earnings were $103.4 million or $1.98 a share, up from $85 million or $1.64 a share a year earlier.
Operating earnings exclude a charge of $4 million or 8 cents a share for the quarter and $6.6 million or 12 cents a share for the six months related to a transaction with Entergy Corp., and $8.4 million or 16 cents a share for both the quarter and six months associated with the estimated refund liability recorded for certain acquisition accounting adjustments for ITC Midwest, ITCTransmission and METC resulting from the FERC audit order on ITC Midwest issued in May 2012.
For the six months ended June 30, ITC invested $429.2 million in capital projects at its operating companies, including $104.9 million, $84.6 million, $182.2 million and $57.5 million at ITCTransmission, METC, ITC Midwest and ITC Great Plains, respectively.
“Our business performed very well during the second quarter of 2012 and we continue to make solid progress on our key near-term strategic objectives, including our stand-alone capital investment plans and advancing the Entergy transaction towards closing,” said Joseph L. Welch, chairman, president and CEO of ITC. “I remain pleased with our execution against our stand-alone plans, which are benefiting our customers by providing a more reliable and robust transmission system, particularly during the warm summer weather periods we have experienced. In addition, final preparations are underway to initiate our retail jurisdictional regulatory applications associated with the Entergy transaction. Based on our current anticipated timeline for the approval process, we remain confident in our ability to close the transaction in 2013.”
For 2012, ITC is updating its full year operating earnings guidance to a range of $3.95 to $4.05 per share from the prior range of $3.90 to $4.05 per share. In addition, aggregate capital investment guidance for 2012 is also being updated to a range of $750 million to $820 million from the prior range of $730 million to $830 million. The updated guidance range includes $195 million to $215 million, $145 million to $160 million, $315 million to $335 million and $95 million to $110 million for ITCTransmission, METC, ITC Midwest and ITC Great Plains, respectively.
To listen in on a conference call discussing the results, visit www.itctransco.com.