Allegheny Energy, Inc. Announces Third Quarter Earnings.HAGERSTOWN Hagerstown (hā`gərztoun'), city (1990 pop. 35,445), seat of Washington co., NW Md., on Antietam Creek near its junction with the Potomac River, in the fertile Cumberland Valley; inc. 1791. , Md.--(BUSINESS WIRE)--Oct. 15, 1999-- Allegheny Energy Allegheny Energy (NYSE: AYE) is a traditional public utility based in the Pittsburgh suburb of Greensburg. It services communities in Western Pennsylvania, Western Maryland, Northern West Virginia, Northwest Virginia. , Inc. (NYSE NYSE See: New York Stock Exchange :AYE AYE Allegheny Energy, Inc. (stock symbol) AYE Ayer Rajah Expressway AYE Amplifying Your Effectiveness (conference) ) today reported that its third quarter earnings declined from the third quarter a year ago, however, increased earnings from its nonutility energy sales combined with higher sales to regular utility customers has resulted in an increase in year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings. Allegheny Energy reported 1999 third quarter earnings of $71.3 million ($.63 per share), compared to third quarter of 1998 earnings of $82.7 million ($.68 per share). The 1999 earnings were down $11.4 million ($.05 per share), a 7 percent decrease in earnings per share compared to 1998 third quarter earnings. This decrease in earnings is primarily attributed to increased energy costs and higher operation and maintenance costs in 1999 compared to third quarter 1998, and $3.7 million of premiums paid to retire preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. in 1999. The decrease in earnings per share for the quarter compared to the prior year was partly offset by the lower number of shares outstanding due to the Company's common stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. Earnings for the nine months ended September September: see month. 30, 1999, were $233.6 million ($1.98 per share), compared to $214.9 million ($1.76 per share) for the same period in 1998 before the extraordinary charge. Included in the results for the nine months ended September 30, 1998, is a previously reported extraordinary charge of $265.4 million ($2.17 per share), net of taxes, associated with the Company's restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). order in Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York . The increase in earnings for the period was attributed primarily to increased kilowatt-hour kil·o·watt-hour n. Abbr. kWh or kW-hr A unit of electric energy equal to the work done by one kilowatt acting for one hour. sales, including increased sales to residential customers due to winter weather that was 22 percent colder than the relatively warm winter of 1998. Nonutility sales also contributed to the year-to-date increase in earnings. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. P. Morrell Morrell is a surname, and may refer to:
Excluding Pennsylvania restructuring and settlement costs, earnings for the twelve months ended September 30, 1999, were $305.5 million ($2.56 per share), compared to $292.1 million ($2.39 per share) for the twelve months ended September 30, 1998. The increase in the twelve months ended earnings, which exclude the restructuring and settlement costs, was due to increased earnings from nonutility sales and increased kilowatt-hour sales to utility residential and commercial customers. Per share earnings for the comparable 1999 and 1998 periods are: -0-
9 Months 12 Months
Third Quarter Ended Sept. Ended Sept.
1999 1998 1999 1998 1999 1998
---- ---- ---- ---- ---- ----
Earnings before
restructuring
and settlement
costs $ .63 $ .68 $1.98 $1.76 $2.56 $2.39
Pennsylvania
extraordinary
charges (2.17) (.08) (2.17)
Pennsylvania
settlement
costs (.20)
----- ----- ----- ----- ----- -----
Reported
earnings $ .63 $ .68 $1.98 ($ .41) $2.28 $ .22
===== ===== ===== ===== ===== =====
Allegheny Energy, Inc. is a diversified diversified (di·verˑ·s energy company headquartered in Hagerstown, Md. The Allegheny Energy family includes Allegheny Allegheny (ăl`əgā'nē, ăl`əgä'nē), river, 325 mi (523 km) long, rising in N central Pa., and flowing NW into N.Y., then SW through Pa. Power, which delivers electric energy to about three million people in parts of Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , Ohio, Pennsylvania, Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). , and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. ; Allegheny Energy Supply, which operates and markets competitive retail and wholesale electric generation and operates regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. electric generation for its affiliates; and Allegheny Ventures, which actively invests in and develops energy-related and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. projects. For more information about Allegheny Energy, Inc., visit our web site at www.alleghenyenergy.com.
ALLEGHENY ENERGY EARNINGS
THIRD QUARTER 1999
Three months ended September 30 1999 1998
----------------------------------------------------------------------
Sales to regular utility
customers,
gigawatt-hours (Note 1) 11,150 11,063
Revenues ($000)
Regular Utility Customers $556,824 $578,933
Other Utility Revenues 26,873 41,321
Nonutility Revenues (Note 2) 157,662 106,353
-------- --------
Total $741,359 $726,607
======== ========
Consolidated net income ($000) $71,332 $82,736
======== ========
Basic and diluted earnings
per average share (Note 4)
Consolidated net income $0.63 $0.68
Average common shares outstanding (000) 114,120 122,436
Year-to-date September 30 1999 1998
----------------------------------------------------------------------
Sales to regular utility customers,
gigawatt-hours (Note 1) 32,794 32,042
Revenues ($000)
Regular Utility Customers $1,646,000 $1,673,312
Other Utility Revenues 64,480 107,325
Nonutility Revenues (Note 2) 364,270 219,092
---------- ----------
Total $2,074,750 $1,999,729
========== ==========
Consolidated income before
restructuring and
settlement costs ($000) $233,621 $214,864
Extraordinary charges ($000) (Note 3) - (265,446)
---------- ----------
Consolidated net income
(loss) ($000) $233,621 ($50,582)
========== ==========
Basic and diluted earnings
per average share (Note 4)
Before extraordinary charge $1.98 $1.76
Pennsylvania extraordinary charges - (2.17)
----- -----
Consolidated net income (loss) $1.98 ($0.41)
===== =====
Average common shares outstanding (000) 118,192 122,436
Twelve months ended September 30 1999 1998
----------------------------------------------------------------------
Sales to regular utility
customers,
gigawatt-hours (Note 1) 43,401 42,797
Revenues ($000)
Regular Utility Customers (Note 5) $2,177,135 $2,236,045
Other Utility Revenues 82,158 128,306
Nonutility Revenues (Note 2) 392,164 252,014
---------- ----------
Total $2,651,457 $2,616,365
========== ==========
Consolidated income before
restructuring and
settlement costs ($000) $305,511 $292,078
Pennsylvania extraordinary
charges ($000) (Note 3) (9,980) (265,446)
Pennsylvania settlement costs ($000) (23,748) -
-------- --------
Consolidated net income ($000) $271,783 $26,632
======== ========
Basic and diluted earnings
per average share (Note 4)
Before restructuring
and settlement costs $2.56 $2.39
Pennsylvania extraordinary charges (0.08) (2.17)
Pennsylvania settlement costs (0.20) -
----- -----
Consolidated net income $2.28 $0.22
===== =====
Average common shares outstanding (000) 119,262 122,436
Note 1: Excludes bulk power transaction sales.
Note 2: Excludes intercompany sales between nonutility and utility.
Note 3: Costs after taxes, determined to be unrecoverable as a result
of deregulation proceedings in Pennsylvania.
Note 4: Basic and diluted earnings per share are the same.
Note 5: 1998 retail revenues are reduced by a 2.5% rate refund ($25.1
million) for Pennsylvania customers as a result of the 1998
settlement agreement.
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