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WGL Holdings, Inc. Reports Increased First Quarter Fiscal Year 2006 Earnings and Updates Earnings Guidance

WASHINGTON, Feb. 7 /PRNewswire-FirstCall/ -- WGL Holdings, Inc. (NYSE: WGL) (the Company), the parent company of Washington Gas Light Company and other energy-related subsidiaries, today reported net income of $44.4 million, or $0.91 per share, for the three months ended December 31, 2005, the first quarter of its fiscal year 2006. This represents a $1.3 million, or $0.03 per share, increase over net income reported of $43.1 million, or $0.88 per share, for the three months ended December 31, 2004. Unless otherwise noted, earnings per share amounts are presented in this news release on a diluted basis, and are based on weighted average common and common equivalent shares outstanding.

Commenting on first quarter results and the outlook for the year, WGL Holdings' Chairman and CEO James H. DeGraffenreidt, Jr. said, "We continue to produce solid results. Our utility customer growth remains strong, and the implementation in the first quarter of our new revenue normalization adjustment in Maryland contributed favorably to our reported results. This mechanism, along with weather insurance in the District of Columbia and a weather derivative in Virginia, is providing us with protection against the effects of warmer-than-normal weather that we have experienced so far in the second fiscal quarter."

Results from Normal Operations

The Company reviews its financial results from normal operations (based on normal weather, and uninfluenced by unique transactions) to monitor its progress towards achieving its five-year financial objectives. Excluding the effects of colder-than-normal weather described below, the Company's consolidated earnings from normal operations for the first quarter of fiscal year 2006 were $0.84 per share as compared to earnings from normal operations of $0.88 per share reported for the same quarter of fiscal year 2005. There were no unique transactions in the current or prior year's first quarter. Earnings from normal operations for the current quarter, when compared to the same quarter of the prior fiscal year, reflect lower earnings from the Company's retail energy-marketing business which more than offset improved earnings of the Company's regulated utility segment. Items that favorably affected earnings from normal operations during the current period include: (i) continued utility customer growth; (ii) the favorable impact of a Revenue Normalization Adjustment (RNA) mechanism that was implemented in Maryland on October 1, 2005; (iii) increased earnings from carrying costs on higher balances of storage gas inventory at the regulated utility; and (iv) lower costs, as well as accrued benefits, associated with managing weather risk. Reducing earnings in the current quarter in relation to the same quarter of the prior fiscal year were higher operation and maintenance, depreciation and interest expenses.

As discussed above, earnings from normal operations exclude the effect of variations from normal weather. The Company's regulated operations are weather sensitive, with a significant portion of its revenue coming from deliveries of natural gas to residential and commercial heating customers. Weather, when measured by heating degree days, was 10.1 percent colder than normal for the three months ended December 31, 2005, enhancing net income in relation to normal by an estimated $4 million, or $0.07 per share. Weather was 2.2 percent colder than normal for the three months ended December 31, 2004; however, the deviation in the weather pattern from normal levels did not have any effect on operating results during that period. Accordingly, results from normal operations for the first quarter of fiscal year 2005 do not exclude any effects of weather.

Reconciliations of the Company's and the regulated utility segment's earnings per share reported in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) to earnings per share from normal operations are included with this press release.

Three Months Ended December 31, 2005

Regulated Utility Operations

The operating results of the Company's core regulated utility segment are the primary influence on overall consolidated operating results. For the first three months of fiscal year 2006, the regulated utility segment reported net income of $44.8 million, or $0.92 per share, an increase of $5.0 million, or $0.11 per share, over net income of $39.8 million, or $0.81 per share, reported for the same quarter of the prior fiscal year. The 12 percent improvement in earnings for this segment primarily reflects a $14.8 million (pre-tax), or $0.19 per share, increase in utility net revenues during the first quarter of fiscal year 2006 when compared to the same quarter of the prior fiscal year, tempered by increased operation and maintenance expenses, depreciation and amortization expense, general taxes and interest expense.

Higher utility net revenues for the current quarter reflect a 35.1 million therm, or 8.9 percent, increase in total gas deliveries to firm customers that grew to 429.6 million therms during the current quarter. Driving this growth in therm deliveries was 7.9 percent colder weather in the first three months of fiscal year 2006, when compared to the same quarter of the prior fiscal year. Increased utility net revenues also reflect the addition of more than 23,200 active customer meters, an increase of 2.3 percent from the end of the same quarter of the prior fiscal year, as well as $2.2 million (pre-tax) of increased earnings from carrying costs on a higher balance of storage gas inventory that was primarily the result of higher natural gas prices.

Net revenues of the regulated utility segment also benefited in the first quarter of fiscal year 2006 from the effects of the RNA mechanism that was implemented in Maryland on October 1, 2005. The RNA is a billing mechanism that is designed to stabilize the level of net revenues collected from Maryland customers by eliminating the effect of deviations in customer usage caused by variations in weather from normal levels and certain other factors such as customer conservation.

First quarter fiscal year 2006 earnings for the regulated utility segment were reduced by a $4.4 million (pre-tax), or $0.06 per share, increase in operation and maintenance expenses. Contributing to the increase in these pre-tax expenses were $2.8 million of higher expenses for uncollectible accounts primarily due to the effects of higher natural gas costs and greater volumes delivered. Other drivers of the increased operation and maintenance expenses were information technology projects and higher accruals for equity- based compensation pursuant to a new accounting standard that became effective on October 1, 2005. Results from the regulated utility segment also reflect higher depreciation and amortization expense, higher general taxes and increased interest expense that, together, reduced net income by $2.4 million (pre-tax), or $0.03 per share, partially offset by $1.2 million (pre-tax), or $0.02 per share, of greater net benefits associated with weather protection products.

Non-Utility Operations

The Company's non-utility operations, principally comprised of the results of the Company's unregulated energy-marketing and commercial heating, ventilating and air conditioning (HVAC) segments, reported a net loss of $384,000, or $0.01 per share, for the three months ended December 31, 2005, as compared to net income of $3.3 million, or $0.07 per share, reported for the same three-month period of the prior fiscal year. The current quarter reflects $0.08 per share of reduced earnings from the Company's retail energy- marketing segment.

The retail energy-marketing segment reported net income of $423,000, or $0.01 per share, for the first quarter of fiscal year 2006, as compared to net income of $4.1 million, or $0.09 per share, reported for the same quarter in fiscal year 2005. The year-over-year decline in earnings primarily reflects lower gross margins from the sale of natural gas and electricity. Lower gross margins from natural gas sales reflect lower gross margins per therm, partially offset by a 9.4 percent increase in natural gas sales volumes. The lower gross margins per therm resulted, in part, from a larger number of commercial customers entering into long-term, fixed-price contracts during the later part of the first quarter of fiscal year 2006 compared to the same period in the prior year. Gas costs for these contracts in the current quarter were relatively high in relation to the sales prices, which caused compression in gross margins in the current quarter in relation to the prior year. Higher natural gas purchase costs stemmed from a sharp rise in natural gas prices during the current quarter due to the natural gas supply shortage in the Gulf of Mexico region that occurred in the aftermath of the fall 2005 hurricane season.

Lower gross margins from natural gas sales for the current quarter also reflect the realization of increased mark-to-market losses associated with certain contracts used to hedge risks associated with the volatility in the price of natural gas and with fluctuations in weather and customer usage. The increase in these mark-to-market losses in the current quarter decreased net income by $1.2 million (after-tax), or $0.02 per share. Lower gross margins from electric sales reflect a decline in both sales volumes and the margin per kilowatt hour sold.

The Company's commercial HVAC segment reported a net loss of $431,000, or $0.01 per share, for the first quarter of fiscal year 2006, unchanged from the same quarter in fiscal year 2005.

Earnings Outlook

The Company is lowering its consolidated earnings estimate for the full fiscal year 2006 to a range of $1.81 to $1.91 per share from its previous guidance of $1.85 to $1.95 per share. This updated estimate includes a decrease in projected full fiscal year 2006 earnings from its unregulated businesses to a range of $0.10 to $0.14 per share from the previous range of $0.15 to $0.19 per share. The annual guidance for the consolidated entity includes estimated earnings for the second quarter of fiscal year 2006 of $1.17 to $1.23 per share, which reflects a projected loss from the Company's unregulated businesses of $(0.03) to $(0.01) per share.

This guidance reflects the estimated effect of actual weather through January 31, 2006, and assumes normal weather thereafter. The guidance also includes assumptions related to estimated conservation for reduced customer usage driven by high natural gas prices. This guidance incorporates assumptions related to income from weather insurance and weather derivatives that reflect the effect of 23 percent warmer-than-normal weather during the month of January 2006, and normal weather thereafter. This weather pattern is 3 percent warmer-than-normal weather for the fiscal year-to-date period through January 31, 2006. The guidance also assumes no effect that may result from performing earnings tests on a quarterly basis pursuant to a December 18, 2003 rate order issued by the State Corporation Commission of Virginia, and excludes the effect of unusual items that could arise in the future. This guidance has been determined as of January 31, 2006, and the Company assumes no obligation to update this guidance. The absence of any statement by the Company in the future should not be presumed to represent an affirmation of the earnings guidance given herein.

Other Information

The Company will hold a conference call at 10:30 a.m. Eastern time on February 8, 2006, to discuss its first quarter financial results. The live conference call will be available to the public via a link located on the WGL Holdings Web site, http://www.wglholdings.com. To hear the live Webcast, click on the "Live Webcast" link located on the home page of the referenced

site. The Webcast will be archived for replay on the WGL Holdings Web site through March 8, 2006.

Headquartered in Washington, D.C., WGL Holdings is the parent company of Washington Gas Light Company, a natural gas utility that serves over one million customers throughout metropolitan Washington, D.C., and the surrounding region. In addition, it holds a group of energy-related retail businesses that focus primarily on retail energy-marketing and commercial heating, ventilating and air conditioning services.

Additional information about WGL Holdings is available on its Web site, http://www.wglholdings.com.

Note: This news release and other statements by the Company include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the outlook for earnings, revenues and other future financial business performance or strategies and expectations. Forward-looking statements are typically identified by words such as, but not limited to, "estimates," "expects," "anticipates," "intends," "believes," "plans," and similar expressions, or future or conditional verbs such as "will," "should," "would," and "could." Although the Company believes such forward-looking statements are based on reasonable assumptions, it cannot give assurance that every objective will be achieved. Forward-looking statements speak only as of today, and the Company assumes no duty to update them.

As previously disclosed in the Company's filings with the Securities and Exchange Commission, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the level and rate at which costs and expenses are incurred in connection with constructing, operating and maintaining the Company's natural gas distribution system; the ability to implement successful approaches to modify the current or future composition of gas used to supply customers as a result of the introduction of Cove Point gas into the Company's natural gas distribution system; variations in weather conditions from normal levels; the availability of natural gas supply and interstate pipeline transportation and storage capacity; the ability of natural gas producers, pipeline gatherers and natural gas processors to deliver natural gas into interstate pipelines for delivery by those interstate pipelines to the entrance points of the regulated utility's natural gas distribution system as a result of factors beyond the control of the Company or its subsidiaries; changes in economic, competitive, political and regulatory conditions and developments; changes in capital and energy commodity market conditions; changes in credit ratings of debt securities of WGL Holdings, Inc. or Washington Gas Light Company that may affect access to capital or the cost of debt; changes in credit market conditions and creditworthiness of customers and suppliers; changes in laws and regulations, including tax, environmental and employment laws and regulations; legislative, regulatory and judicial mandates and decisions affecting business operations or the timing of recovery of costs and expenses; the timing and success of business and product development efforts and technological improvements; the pace of deregulation efforts and the availability of other competitive alternatives; changes in accounting principles; terrorist activities; and other uncertainties. The outcome of negotiations and discussions the Company may hold with other parties from time to time regarding utility and energy-related investments and strategic transactions that are both recurring and non-recurring may also affect future performance. For a further discussion of the risks and uncertainties, see the Company's most recent annual report on Form 10-K, and other reports filed with the Securities and Exchange Commission.

Please see the following comparative statements for additional information. Also included are reconciliations of the Company's and regulated utility segment's earnings per share reported in accordance with GAAP to earnings per share from normal operations.

                              WGL Holdings, Inc.
                      Consolidated Statements of Income
                 For Periods Ended December 31, 2005 and 2004
                                 (Unaudited)

                                   Three Months Ended     Twelve Months Ended
    (In thousands, except per          December 31,          December 31,
     share data)                      2005      2004        2005        2004

    UTILITY OPERATIONS
     Operating Revenues            $601,337  $408,951  $1,571,776  $1,301,585
      Less:  Cost of gas            406,586   228,611     950,873     698,801
             Revenue taxes           16,693    17,095      57,768      53,405
        Utility Net Revenues        178,058   163,245     563,135     549,379

     Other Operating Expenses
      Operation and maintenance      60,411    55,998     241,745     227,541
      Depreciation and amortization  22,960    22,196      90,623      88,501
      General taxes                  10,039     9,057      41,460      35,730
      Income taxes                   28,088    24,037      53,233      57,742
        Utility Other Operating
         Expenses                   121,498   111,288     427,061     409,514
        Utility Operating Income     56,560    51,957     136,074     139,865

    NON-UTILITY OPERATIONS
     Operating Revenues
      Retail energy-marketing       296,785   205,288     864,543     792,889
      Heating, ventilating and
       air conditioning (HVAC)       11,074     8,859      34,656      31,448
      Other non-utility
       activities                       130       294       1,261       1,784
        Non-Utility Operating
         Revenues                   307,989   214,441     900,460     826,121

     Other Operating Expenses
      Operating expenses            308,679   208,667     875,725     823,547
      Income tax expense (benefit)     (545)    2,239      10,676       1,890
        Non-Utility Operating
         Expenses                   308,134   210,906     886,401     825,437
        Non-Utility Operating
         Income (Loss)                 (145)    3,535      14,059         684

    TOTAL OPERATING INCOME           56,415    55,492     150,133     140,549
    Other Income (Expenses) - Net
      Income (expenses) - net           199    (1,645)       (126)      4,368
      Income tax benefit                 84       646         462         214
        Other Income (Expenses) -
         Net                            283      (999)        336       4,582

    INCOME BEFORE INTEREST EXPENSE   56,698    54,493     150,469     145,131
    Interest expense                 11,982    11,031      44,402      43,585
    Dividends on Washington
     Gas preferred stock                330       330       1,320       1,320
    NET INCOME (APPLICABLE TO
     COMMON STOCK)                 $ 44,386  $ 43,132  $  104,747  $  100,226

    AVERAGE COMMON SHARES
     OUTSTANDING
        Basic                        48,741    48,669      48,708      48,653
        Diluted                      48,894    48,936      48,999      48,879

    EARNINGS PER AVERAGE
     COMMON SHARE
        Basic                      $   0.91  $   0.89  $     2.15  $     2.06
        Diluted                    $   0.91  $   0.88  $     2.14  $     2.05



             Net Income Applicable To Common Stock -- By Segment ($000):

      Regulated utility            $ 44,770  $ 39,803  $   92,459  $   94,075

      Non-utility operations:
        Retail energy-marketing         423     4,108      18,609       7,578
        Commercial HVAC                (431)     (432)     (3,892)     (5,330)
            Total major non-utility      (8)    3,676      14,717       2,248
        Other, principally non-
         utility activities            (376)     (347)     (2,429)      3,903
            Total non-utility          (384)    3,329      12,288       6,151
    NET INCOME                     $ 44,386  $ 43,132  $  104,747  $  100,226



                              WGL Holdings, Inc.
                         Consolidated Balance Sheets
                          December 31, 2005 and 2004
                                 (Unaudited)

                                                            December 31,
    (In thousands)                                      2005           2004

    ASSETS
    Property, Plant and Equipment
        At original cost                           $ 2,809,551    $ 2,690,018
        Accumulated depreciation and
         amortization                                 (829,272)      (767,771)
            Net property, plant and equipment        1,980,279      1,922,247

    Current Assets
        Cash and cash equivalents                       25,818         10,725
        Accounts receivable, net                       561,475        374,120
        Storage gas--at cost (first-in, first-out)     286,116        198,673
        Other                                           88,942         47,659
            Total current assets                       962,351        631,177
    Deferred Charges and Other Assets                  288,971        216,487
            Total Assets                           $ 3,231,601    $ 2,769,911


    CAPITALIZATION AND LIABILITIES
    Capitalization
        Common shareholders' equity                $   921,759    $   881,344
        Washington Gas Light Company preferred
         stock                                          28,173         28,173
        Long-term debt                                 560,414        573,721
            Total capitalization                     1,510,346      1,483,238

    Current Liabilities
        Notes payable and current maturities of
         long-term debt                                385,805        221,181
        Accounts payable and other accrued
         liabilities                                   351,407        236,516
        Other                                          255,105        169,497
            Total current liabilities                  992,317        627,194
    Deferred Credits                                   728,938        659,479
            Total Capitalization and Liabilities   $ 3,231,601    $ 2,769,911



                              WGL Holdings, Inc.
               Consolidated Financial and Operating Statistics
                 For Periods Ended December 31, 2005 and 2004
                                 (Unaudited)

    COMMON STOCK DATA
                             December 31, 2005         52 Week
                               Closing Price         Price Range

                                $    30.06         $34.79 - $28.85

                             Earnings Per Share
                             Twelve Months Ended           Annualized
                                 December 31,        P/E    Dividend   Yield
                               2005       2004

                Basic         $2.15      $2.06      14.0      $1.33     4.4%
                Diluted       $2.14      $2.05



    FINANCIAL STATISTICS
                                                 Twelve Months Ended
                                             December 31,    December 31,
                                                 2005            2004

    Return on Average Common Equity              11.6 %          11.6 %
    Total Interest Coverage (times)               4.7             4.6
    Book Value Per Share (end of period)       $18.91          $18.11
    Common Shares Outstanding-end of period
     (thousands)                               48,754          48,674



    UTILITY GAS STATISTICS
                                   Three Months Ended    Twelve Months Ended
                                      December 31,           December 31,
    (In thousands)                   2005      2004        2005        2004

    Operating Revenues
      Gas Sold and Delivered
        Residential - Firm        $398,864  $252,237  $1,019,932  $  807,559
        Commercial and Industrial
         - Firm                    133,669    90,634     324,115     263,100
        Commercial and Industrial
         - Interruptible             2,330     2,342       8,812       7,127
        Electric Generation            408       275       1,233       1,100
                                   535,271   345,488   1,354,092   1,078,886
      Gas Delivered for Others
        Firm                        41,906    43,357     139,323     148,536
        Interruptible               10,952    10,020      38,049      33,754
        Electric Generation             91        54         565         253
                                    52,949    53,431     177,937     182,543
                                   588,220   398,919   1,532,029   1,261,429
      Other                         13,117    10,032      39,747      40,156
            Total                 $601,337  $408,951  $1,571,776  $1,301,585


                                  Three Months Ended     Twelve Months Ended
                                     December 31,           December 31,
    (In thousands of therms)        2005      2004        2005        2004

    Gas Sales and Deliveries
      Gas Sold and Delivered
        Residential - Firm         216,830   183,626     658,455     615,967
        Commercial and
         Industrial - Firm          77,554    73,188     226,953     230,339
        Commercial and Industrial
         - Interruptible             1,676     2,156       7,329       6,760
                                   296,060   258,970     892,737     853,066
      Gas Delivered for Others
        Firm                       135,263   137,719     431,643     456,844
        Interruptible               72,794    77,498     275,220     264,087
        Electric Generation         15,920     9,307      80,487      39,791
                                   223,977   224,524     787,350     760,722
            Total                  520,037   483,494   1,680,087   1,613,788


    WASHINGTON GAS ENERGY SERVICES
     Natural Gas Sales
      Therm Sales (thousands of
       therms)                     223,475   204,364     732,787     713,171

      Number of Customers (end of
       period)                     144,300   147,100     144,300     147,100

     Electricity Sales
      Electricity Sales
       (thousands of kWhs)         492,371   776,828   2,396,012   5,721,639

      Number of Accounts (end of
       period)                      35,100    41,600      35,100      41,600

    UTILITY GAS PURCHASED EXPENSE
     (excluding off system)         136.86 c   88.57 c    106.26 c     80.97 c

    HEATING DEGREE DAYS
     Actual                          1,499     1,389       4,133       4,025
     Normal                          1,362     1,359       3,801       3,789
     Percent Colder than Normal       10.1 %     2.2 %       8.7 %       6.2 %

     Number of Active
      Customer Meters (end of
       period)                   1,029,430 1,006,227   1,029,430   1,006,227



                      WGL HOLDINGS, INC. (CONSOLIDATED)
            RECONCILIATION OF REPORTED GAAP EARNINGS PER SHARE AND
                         ADJUSTED EARNINGS PER SHARE
                                 (Unaudited)


                               February 7, 2006

The reconciliation below is provided to demonstrate management's utilization of historical earnings per share, as derived in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), and adjusted earnings per share from normal operations, a non-GAAP measure. This reconciliation is provided to more clearly identify the results from normal operations for WGL Holdings, Inc. and its consolidated subsidiaries (the Company), and identify certain unique transactions that are not expected to repeat. This information should assist investors and analysts to track progress towards achieving the Company's five-year financial objectives, which are based on normal weather and uninfluenced by single, one- time, non-repeating transactions.

    Utilization of normal weather is an industry standard, and it is the
practice of the Company to provide estimates and guidance on the basis of
normal weather.  Actual performance and results may vary from normal weather
projections and the Company consistently identifies and explains this
variation to assist users in the analysis of actual results versus the
guidance. There may be other uses for the data, and the Company does not imply
that this is the only use or the best use of this data for purposes of this
analysis.


                      WGL Holdings, Inc. (Consolidated)
            Reconciliation of Reported GAAP Earnings Per Share to
              Adjusted Earnings Per Share from Normal Operations
                       Fiscal Year 2006 By Quarter (1)

                                           Fiscal Year 2006 Results
                                                 Quarter Ended
                                                                         Year-
                                                                          To-
                                    Dec. 31  Mar. 31  Jun. 30  Sept. 30  Date
    GAAP diluted earnings per share  $ 0.91                            $ 0.91
    Adjustments for:
    Colder-than-normal weather        (0.07)                            (0.07)
    Adjusted diluted earnings per
     share from normal operations    $ 0.84                            $ 0.84


                      WGL Holdings, Inc. (Consolidated)
            Reconciliation of Reported GAAP Earnings Per Share to
              Adjusted Earnings Per Share from Normal Operations
                       Fiscal Year 2005 By Quarter (1)

                                           Fiscal Year 2005 Results
                                                 Quarter Ended
                                                                         Year-
                                                                          To-
                                    Dec. 31  Mar. 31  Jun. 30  Sept. 30  Date
    GAAP diluted earnings per share  $ 0.88                            $ 0.88
    Adjustments                           -                                 -
    Adjusted diluted earnings per
     share from normal operations    $ 0.88                            $ 0.88

    (1) Quarterly earnings (loss) per share may not sum to year-to-date or
        annual earnings (loss) per share as quarterly calculations are based
        on weighted average common shares outstanding which may vary for each
        of those periods.



                WGL HOLDINGS, INC. (REGULATED UTILITY SEGMENT)
            RECONCILIATION OF REPORTED GAAP EARNINGS PER SHARE AND
                         ADJUSTED EARNINGS PER SHARE
                                 (Unaudited)


                               February 7, 2006

The reconciliation below is provided to demonstrate management's utilization of historical earnings per share, as derived in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), and adjusted earnings per share from normal operations, a non-GAAP measure. This reconciliation is provided to more clearly identify the results from normal operations for the Company's regulated utility segment, and identify certain unique transactions that are not expected to repeat. This information should assist investors and analysts to track progress towards achieving the Company's five-year financial objectives, which are based on normal weather and uninfluenced by single, one-time, non-repeating transactions.

    Utilization of normal weather is an industry standard, and it is the
practice of the Company to provide estimates and guidance on the basis of
normal weather.  Actual performance and results may vary from normal weather
projections, and the Company consistently identifies and explains this
variation to assist users in the analysis of actual results versus the
guidance. There may be other uses for the data, and the Company does not imply
that this is the only use or the best use of this data for purposes of this
analysis.


                WGL Holdings, Inc. (Regulated Utility Segment)
            Reconciliation of Reported GAAP Earnings Per Share to
              Adjusted Earnings Per Share from Normal Operations
                       Fiscal Year 2006 By Quarter (1)

                                           Fiscal Year 2006 Results
                                                 Quarter Ended
                                                                         Year-
                                                                          To-
                                    Dec. 31  Mar. 31  Jun. 30  Sept. 30  Date
    GAAP diluted earnings per share  $ 0.92                            $ 0.92
    Adjustments for:
    Colder-than-normal weather        (0.07)                            (0.07)
    Adjusted diluted earnings per
     share from normal operations    $ 0.85                            $ 0.85


                WGL Holdings, Inc. (Regulated Utility Segment)
            Reconciliation of Reported GAAP Earnings Per Share to
              Adjusted Earnings Per Share from Normal Operations
                       Fiscal Year 2005 By Quarter (1)

                                           Fiscal Year 2005 Results
                                                 Quarter Ended
                                                                         Year-
                                                                          To-
                                    Dec. 31  Mar. 31  Jun. 30  Sept. 30  Date
    GAAP diluted earnings per share  $ 0.81                            $ 0.81
    Adjustments                           -                                 -
    Adjusted diluted earnings per
     share from normal operations    $ 0.81                            $ 0.81

    (1) Quarterly earnings per share may not sum to year-to-date or annual
        earnings per share as quarterly calculations are based on weighted
        average common shares outstanding which may vary for each of those
        periods.

SOURCE WGL Holdings, Inc.

CONTACT: News Media, Kimberly Greer, office, +1-202-624-6704; or
Financial Community, Melissa E. Adams, office, +1-202-624-6410, both of WGL
Holdings, Inc.

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