Unitil(UTL)2022-05-03 20:33Financial Data and Key Metrics Changes - The company reported a net income of 1.35, representing a 7.1% increase compared to the same period in 2021 [9][21] - The adjusted gross margin for electric operations was 52 million, reflecting an 8.8% increase [23][24] - Overall sales increased by 1.4% year-over-year, with commercial and industrial unit sales rising by 2.3% [23] Business Line Data and Key Metrics Changes - Electric adjusted gross margin increased due to higher distribution rates and customer growth, with a total of 551 new customers added, marking a 1.5% increase [23] - Gas adjusted gross margin growth was driven by higher rates and customer growth, with colder winter weather contributing to the increase [24] Market Data and Key Metrics Changes - The company serves regions in Maine and New Hampshire, where approximately 1.7 billion expansion at the Portsmouth Naval Shipyard and a new Amazon Distribution Center in Massachusetts, which are expected to create jobs and drive further investment [16][17] Company Strategy and Development Direction - The company maintains a long-term earnings growth guidance of 5% to 7%, with near-term growth expected to exceed this range [9] - A focus on sustainability includes plans to integrate renewable natural gas into the supply portfolio, supported by legislative efforts in New Hampshire [11] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary impacts are expected to affect the capital budget more significantly in future years, with current increases in equipment and materials costs [39] - The company has mechanisms in place to recover increased capital costs due to inflation through regulatory solutions [44] Other Important Information - The company has a strong investment outlook totaling about $755 million over the next five years, aimed at ensuring safety, reliability, and modernization of the distribution system [28] - A recent increase in the quarterly dividend reflects confidence in the company's strategic plan and ability to execute [30] Q&A Session Summary Question: Updates on advanced energy systems and clean energy solutions - Management indicated that updates may come later in the year, depending on legislative progress and internal evaluations [36] Question: Inflationary impacts on raw materials and measures to mitigate customer bill impacts - Management highlighted significant cost increases in the capital budget and noted that they are not yet seeing impacts on operating and maintenance expenses [39][42] Question: Customer growth and assumptions for long-term EPS CAGR - The long-term earnings growth is based on historical customer growth rates, with no significant adjustments made at this time [45]