Printer Friendly

/C O R R E C T I O N -- PHILADELPHIA SUBURBAN DIVIDEND/

 Editors: In PH028, Philadelphia Suburban earnings and dividend, moved late Feb. 2 and repeated early Feb. 3 as PHT28, we have been advised by the company that in the 2nd graph, last line, the record date should read "Feb. 16" rather than "Feb. 17" as originally issued.
 The complete, correct release follows:
 PHILADELPHIA SUBURBAN CORPORATION REPORTS
 HIGHER NET INCOME FOR THE QUARTER AND DECLARES DIVIDEND
 BRYN MAWR, Pa., Feb. 2 /PRNewswire/ -- Philadelphia Suburban Corporation (NYSE: PSC) today reported higher income from continuing operations for the fourth quarter and the year.
 In addition, the company's board of directors declared the regular quarterly dividend of $.26 per share. This is the company's 192nd consecutive dividend and will be paid on March 1, 1993, to shareholders of record on Feb. 16.
 Income from continuing operations in the fourth quarter of 1992 increased to $2.8 million from $2.6 million in the same period in 1991. Income from continuing operations for the year improved to $1.06 million from $10.2 million in 1991. The increase for the year was primarily due to the water utility's October 1991 rate increase of 7.7 percent cost control measures, and the elimination of the parent company's higher cost debt.
 Net income for the quarter, which includes a charge related to the early retirement of the debt, was $2.8 million, a $.2 million improvement over the same period in 1991. Net income for the year, which includes a $.8 million extraordinary pre-payment premium charge for the early retirement of the debt and a $5.5 million charge for the company's discontinued operations, was $4.3 million for the year, down from the $4.9 million reported in 1991.
 Nicholas DeBenedictis, president and chief executive officer, said, "With the corporate-wide cost reduction measures now taking effect and our improved financial position, we look forward with confidence to refocusing management attention on growing our key subsidiary, Philadelphia Suburban Water Company, in the expanding Southeastern Pennsylvania region."
 For the year, revenues from continuing operations were $93.3 million, up $4.7 million or 5.3 percent. However, revenues from continuing operations for the fourth quarter were $23 million, a decrease of $.7 million or 3.1 percent, as compared to the fourth quarter of 1991. While customer water consumption declined in both the quarter and the year, the impact on the year was mitigated by the rate increase granted in 1991. It is believed that the decline in customer consumption is associated with the unfavorable weather patterns in 1992, conservation, and the effects of the recession.
 The company strengthened its financial position by selling a record $24.4 million of stock to the customers of its water utility through its customer stock purchase plan. A portion of the proceeds were used to retire the parent company's $25 million 10-1/8 percent debt, which will have a positive effect on future earnings. Despite higher income from continuing operations, the dilutive effect of the increased shares caused income per share to decline as compared to 1991 from $1.29 to $1.23 for the year and $.32 to $.30 for the fourth quarter.
 The 1992 earnings were not impacted by the recently concluded acquisitions of the Uwchlan Township municipal authority and West Whiteland Township systems. These purchases will add approximately 8,000 customers and 40 square miles in an area in Southeastern Pennsylvania presently experiencing double the customer growth rate of the water utility's existing system.
 DeBenedictis emphasized, "We are confident in the future economic viability of the Southeastern Pennsylvania region which we serve and under our new strategy, we believe Philadelphia Suburban Water Company is well positioned to become the regional solution to Southeastern Pennsylvania's water needs."
 Philadelphia Suburban Water Company is one of the nation's largest investor-owned water utilities and is a wholly owned subsidiary of Philadelphia Suburban Corporation (NYSE: PSC). The company serves 250,000 customers in 71 municipalities in Chester, Delaware and Montgomery counties.
 The following table shows the comparative earned revenues, net income and net income per share for Philadelphia Suburban Corporation for the quarters and 12 months ended Dec. 31, 1922 and 1991 (in thousands of dollars):
 PHILADELPHIA SUBURBAN CORPORATION
 (Dollars in thousands)
 Periods ended Quarter Year
 Dec. 31 1992 1991 1992 1991
 (Unaudited)
 Earned revenues $22,971 $23,705 $93,307 $88,648
 Income (loss):
 Continuing operations 2,825 2,589 10,626 10,179
 Discontinued operations --- --- (5,500) (5,290)
 Extraordinary item (50) --- (834) ---
 Net income 2,775 2,589 4,292 4,889
 Income (loss) per share:
 Continuing operations $.30 $.32 $1.23 $1.29
 Discontinued operations --- --- (.63) (.67)
 Extraordinary item (.01) --- (.10) ---
 Net income per share .29 .32 .50 .62
 Average common and common
 equivalent shares
 outstanding during
 the period 9,440,000 8,026,000 8,635,000 7,910,000
 /delval/
 -0- 2/4/93
 /CONTACT: Robert E. Deddy, vp-public relations, 215-525-1400, or Michael P. Graham, chief financial officer and treasurer, 215-645-1087, both of Philadelphia Suburban/
 (PSC)


CO: Philadelphia Suburban Corporation ST: Pennsylvania IN: UTI SU: ERN DIV

LJ -- PH014 -- 2913 02/04/93 11:04 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 4, 1993
Words:849
Previous Article:WESTINGHOUSE, SGS TOOL TARGET COMMERCIAL DIAMOND FILMS
Next Article:COURT DENIES MOTION FOR PRELIMINARY INJUNCTION FILED BY JOHNSON & JOHNSON-MERCK
Topics:


Related Articles
HOUSTON LIGHTING & POWER DECLARES DIVIDENDS
IBM AND MULTI SOFT SIGN SOFTWARE MARKETING AGREEMENT
DCA ANNOUNCES SELECT COMM SERVER WITH PC ROUTER SUPPORT
IBM Ships OS/390 2.7, Previews Future Releases.
A magical pair of 6x6 chemical squares.
ACCESS' NetFront Mobile Content Viewer Selected for Adobe GoLive CS 2; ACCESS Solution Provides Advanced Preview and Test Environment for Mobile...
Compuware Delivers Enhanced Enterprise Test Data Management Solution; Compuware File-AID/CS 3.0 Offers Rich Data-Management Functionality With...
Patients With HIV-Associated Wasting Gain More Weight With Concentrated Form of Megestrol Acetate, Study Shows.
Safety and efficacy of two preparations of megestrol acetate in HIV-infected individuals with weight loss in Africa, India, and the United States.
Efeito de simbiotico na racao inicial de frangos de corte sobre o desempenho, qualidade de carcaca e carne.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters