Earnings Call Excerpt
Xcel Energy, (XEL)
Q2 2006 Earnings Conference Call
August 1, 2006, 10:00 a.m. EST
Executives:
Richard Kolkmann, Managing Director of IR
Benjamin Fowke, Chief Financial Officer and VP
Analysts:
Paul Rizdon, McDonald Investments
Daniele Seitz, Maxcor Financial
Elizabeth Parrella, Merrill Lynch
Paul Debbas, Value Line
Ashar Khan, SAC Capital
Nathan Judge, Atlantic Equities
Dan Jenkins, State of Wisconsin Investment Board
Presentation
Operator
At this time, I would like to welcome everyone to the Xcel Energy Second Quarter 2006 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks there will be a question and answer session. At that time we will only take questions from analysts and institutional investors. Any other questions from the news medium can direct their questions to the Investor Relations Department. If you have a question at that time simply press * then the number 1 on your telephone keypad. And if you would like to withdraw your question, press * then the number 2. Thank you, I will now like to turn the call over to Mr. Richard Kolkmann. Sir, you may begin your conference.
Richard Kolkmann, Managing Director of IR
Thanks Matthew and welcome to Xcel Energy's Second Quarter 2006 Earnings Release Conference Call. I'm Dick Kolkmann, Managing Director of Investor Relations, and with me is Ben Fowke, Vice President and Chief Financial Officer of Xcel Energy. We also have several others here to help provide answers to your questions. Some of the comments that will be made contain forward-looking information. Significant factors that could cause results to differ from those anticipated are described in our earnings release and Xcel Energy filings with the Securities and Exchange Commission.
With that, I'll turn the call over to Ben.
Benjamin Fowke, Chief Financial Officer and VP
Thanks Dick and welcome everyone. Xcel Energy recorded earnings from continuing operations of $0.24 per share for the second quarter of 2006. This compares with $0.19 per share for the second quarter of 2005. Total earnings for the second quarter 2006 were $0.24 per share compared with $0.20 per share for 2005. Our earnings from continuing operations increased by $0.05 per share for the quarter, largely due to higher electric retail margins which increased earnings by $0.10 per share, a lower effective tax rate which increased earnings by $0.02 per share, and other items that together increased earnings by about $0.01 per share. These positive factors were partially offset by lower short-term wholesale margins which decreased earnings by $0.06 per share, higher utility O&M expenses which decreased earnings by $0.01 per share, and higher depreciation expense which decreased earnings by $0.01 per share. That summarizes our second quarter 2006 results. Now, let's look into the details.
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