Total revenues of $74,310 for the first quarter of 2013 increased by $6,443 or 9% compared to the same period of 2012. Rentals revenues increased marginally by $235 to $47,082 in the first quarter of 2013, primarily due to a rental rate increase implemented in January 2013, partially offset by a reduction in installed assets. Sub-metering revenues in the first quarter of 2013 were $26,960, an increase of $6,125 or 29% over the same period in 2012, as a result of increased commodity charges and billable units. Sub-metering revenue includes total pass through energy charges of $22,151 in 2013, and $16,545 in 2012, an increase of $5,606.
Investment income increased by $83 in the first quarter of 2013 to $268 compared to $185 in the same period of 2012. The increase in investment income was primarily attributable to greater investment balances as a result of the issuance of $225,000 of 4.60% Series 2013-1 Senior Unsecured Notes of EnerCare Solutions ("2013 Notes") and the drawdown of the $60,000 single draw, variable rate, interest only, open loan ("Term Loan") approximately 30 days prior to the redemption of the $270,000 6.75% Series 2009-2 Senior Notes of EnerCare Solutions ("2009-2 Notes"), which were redeemed on March 6, 2013.
Selling, General and Administrative Expenses
Total SG&A expenses were $10,462 in the first quarter of 2013, an increase of $160 or 2% compared to the same period in 2012. Sub-metering SG&A expenses were $3,284 in the first quarter of 2013, $500 more than the same period in 2012, primarily as a result of increased wages and benefits of approximately $400 associated with the internalization of customer care and billing functions, bad debts and provisions of $300 and selling and professional fees of $200, partially offset by $400 in reductions in cost of goods. Rentals and corporate expenses of $7,178 decreased by $340 in the first quarter of 2013 over that in the same period of 2012, primarily due to a decrease of approximately $500 for professional fees and selling expenses. Increases of approximately $300 for claims and bad debts were offset by decreases in a number of other expense categories.
Amortization expense decreased by $1,518 or 6% to $24,356 in the first quarter of 2013, primarily due to a smaller installed asset base in the rentals portfolio, partially offset by increased sub-metering capital investments, which are amortized over a shorter life than the rentals business.
Loss on Disposal of Equipment
In the first quarter of 2013, EnerCare reported a loss on disposal of equipment of $2,892, a reduction of $1,223 over the same period in 2012. The loss on disposal amount is influenced by the number of assets retired, proceeds on disposal of equipment, changes in the retirement asset mix and the age of the assets retired. In 2012, loss on disposal was elevated primarily as a result of higher buyout activity and attrition.
Interest expense payable in cash decreased by $753 to $8,294 in the first quarter of 2013, compared to $9,047 in the first quarter of 2012. The decrease is primarily related to the conversion of convertible debentures to shares, repayment of the $60,000 6.20% Series 2009-1 Senior Unsecured Notes of EnerCare Solutions ("2009-1 Notes"), which matured and were repaid on April 30, 2012 and the redemption of the $240,000 5.25% Series 2010-1 Senior Unsecured Notes of EnerCare Solutions ("2010 Notes"), which were redeemed on December 21, 2012 in the fourth quarter of 2012 with the proceeds from the offering of the $250,000 4.30% Series 2012-1 Senior Unsecured Notes of EnerCare Solutions, which mature on November 30, 2017. The make-whole payment of $13,754 was incurred upon the early redemption of the 2009-2 Notes associated with the issuance of the 2013 Notes and the drawdown of the Term Loan. Amortization of other comprehensive income ("OCI") and financing costs for 2013 include the previously unamortized costs associated with the 2009-2 Notes and $4,023 of accumulated OCI which has been fully reclassified to earnings in the current period.
Most Popular Stories
- NSA Defends Global Cellphone Tracking Legality
- Top Websites for U.S. Hispanics
- Networks Vie for U.S. Hispanic TV Viewers
- Ad Counts Rise in 2013 for Hispanic Magazines
- Apple Wants Samsung to Pay $22M for Patent Dispute Legal Bills
- Starbucks Gets Grinchy; No Gingerbread Lattes for Tampa Customers
- Apple Paid Its Lawyers More Than $60MM to Defeat Samsung in Court
- Jobs Report Brings Cheer As Unemployment Drops to Five-year Low
- Economic Bright Spots Not a Sure Boost for President Obama
- US Consumer Borrowing Rose $18.2B in Oct.