Allegheny Energy Announces Third Quarter Earnings.HAGERSTOWN, MD--(BUSINESS WIRE)--Oct. 17, 1997--Allegheny Energy, Inc. (NYSE NYSE See: New York Stock Exchange : AYE) today reported third quarter earnings of $74.8 million ($.61 per share), compared with 1996 third quarter earnings of $56.2 million ($.46 per share). Third quarter 1996 earnings included restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $4.8 million, net of taxes, or $.04 per share. The increase in third quarter earnings, excluding the restructuring charges, was primarily due to a $12.1 million interest refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies on a tax-related contract settlement and a reduction of expenses achieved through 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). efforts and other cost controls. Total kilowatt-hour (kWh) sales were up slightly for the quarter. For the nine months ended Sept. 30, 1997, consolidated net income was $204.1 million ($1.67 per share), compared with $161.4 million ($1.33 per share) for the corresponding 1996 period. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Sept. 1996 earnings included restructuring charges and an asset write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of $43.5 million, net of taxes, or $.36 per share. The decrease in year-to-date earnings, excluding the restructuring charges and asset write-off, was primarily due to decreased kWh sales to residential customers and anticipated start-up Start-up The earliest stage of a new business venture. losses of an unregulated Adj. 1. unregulated - not regulated; not subject to rule or discipline; "unregulated off-shore fishing" regulated - controlled or governed according to rule or principle or law; "well regulated industries"; "houses with regulated temperature" 2. subsidiary, AYP AYP Adequate Yearly Progress (National Assessment of Educational Progress) AYP Anarchist Yellow Pages AYP American Youth Philharmonic Energy, which commenced operations in late 1996. Residential kWh sales decreased 5% due to the mild first quarter winter weather as well as the mild summer weather. Commercial kWh sales were about the same as the previous period. Industrial kWh sales increased 1%. For the twelve months ended Sept. 1997, consolidated net income was $252.7 million ($2.07 per share), compared with $224.1 million ($1.85 per share) for the corresponding 1996 period. Earnings for the twelve months ended Sept. 1997 included restructuring charges of $19.1 million, net of taxes, or $.16 per share. Earnings for the twelve months ended Sept. 1996 included restructuring charges and asset write-offs of $49.5 million, net of taxes, or $.41 per share. Excluding the restructuring charges and asset write-offs, earnings for the twelve months ended Sept. 30, 1997, were down slightly from the prior year. Total kWh sales were 1.2% less than the prior twelve-month period primarily because of mild weather. The tax-related interest refund and reduced expenses mostly offset the effect of reduced sales and the losses of AYP Energy. AYE is a registered utility holding company with three electric utility subsidiaries doing business as Allegheny Power. AYE's utility subsidiaries annually provide approximately 41 billion kWh of electricity to approximately 1.4 million customers in 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 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 , Virginia 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. . AYE also owns AYP Capital, which invests in non-utility projects, including energy marketing activities. -0-
Allegheny Energy Earnings
Third Quarter 1997
Three months ended Sept. 30, 1997 1997 1996
Sales to regular customers, gigawatt-
hours (Note 1) 10,230 10,042
Revenues ($000)
Revenues Other Than Those Related to
Energy $375,682 $372,741
Energy Related Revenue $219,443 $181,249
Total $595,125 $553,990
Net Income ($000)(a) $ 74,808 $ 56,227
Earnings per average share(a) $ 0.61 $ 0.46
Average Common shares outstanding (000) 122,430 121,283
(a) Includes restructuring charges of $4.8 million ($.04 per share)
in the 1996 period.
Year to Date Sept. 30, 1997 1997 1996
Sales to regular customers, gigawatt-
hours (Note 1) 30,715 31,124
Revenues ($000)
Revenues Other Than Those Related to
Energy $1,138,492 $1,162,142
Energy Related Revenue (Note 2) $614,363 $590,811
Total $1,752,855 $1,752,953
Net Income ($000)(b) $204,082 $161,431
Earnings per average share(b) $ 1.67 $ 1.33
Average common shares outstanding (000) 122,132 120,999
(b) Includes restructuring charges and asset write-off of $43.5
million ($.36 per share) in the 1996 period.
Twelve Months Ended Sept. 30, 1997 1997 1996
Sales to regular customers, gigawatt-
hours (Note 1) 41,075 41,563
Revenues ($000)
Revenues Other Than Those Related to
Energy $1,528,503 $1,552,516
Energy Related Revenue (Note 2) $800,171 $786,835
Total $2,328,674 $2,339,351
Net Income ($000)(c) $252,698 $224,065
Earnings per average share(c) $ 2.07 $ 1.85
Average common shares outstanding (000) 121,989 120,850
(c) Includes restructuring charges of $19.1 million ($.16 per
share) in the 1997 period and restructuring charges and asset
write-offs of $49.5 million ($.41 per share) in the 1996 period.
Note 1: Excludes bulk power transaction sales.
Note 2: Primarily revenues related to fuel expenses and net
purchased power costs.
CONTACT: 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. , Hagerstown Cynthia A. Shoop, 301/665-2718 E-mail: cshoop@alleghenypower.com |
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