Atmos Energy Corporation Reports Impressive Results for Fiscal 2005; Issues Fiscal 2006 Guidance.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- Atmos Energy Atmos Energy (NYSE: ATO), headquartered in Dallas, Texas, is the largest distributor of natural gas in the United States, serving 3.1 million customers nationwide. Atmos acquired TXU's natural gas and pipeline holdings in 2004. Corporation (NYSE NYSE See: New York Stock Exchange :ATO ATO Australian Taxation Office ATO Ambito Territoriale Ottimale (Italy) ATO Alpha Tau Omega ATO Air Traffic Organization (FAA) ATO Arab Towns Organization ATO Air Tasking Order ATO Assemble To Order ) today reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results for its fiscal year and fourth quarter ended September September: see month. 30, 2005. --For fiscal year 2005, net income was $135.8 million, or $1.72 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with net income of $86.2 million, or $1.58 per diluted share the prior year. Fiscal 2005 results exceeded First Call's mean estimate of $1.71 per diluted share. --For the fiscal 2005 fourth quarter, the net loss was $16.8 million, or $0.21 per diluted share, compared with a net loss of $6.4 million, or $0.11 per diluted share in the prior year quarter. Atmos Energy historically reports a loss in the fourth quarter of its fiscal year because customers' natural gas usage is lowest in the summer months. The net loss widened for the fiscal 2005 fourth quarter due to the acquisition of TXU TXU Texas Utilities (Electric and Gas Company) TXU Transmitter Unit Gas Company (TXU Gas). --Results for the prior fiscal year ended September 30, 2004, included a nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $4.2 million, or $0.08 per diluted share associated with the sale of an office building and the sale of the company's remaining indirect interest in Heritage Propane Partners, L.P. (Heritage). --Fiscal 2005 results from the TXU Gas acquisition were accretive to consolidated earnings by $0.18 per diluted share. --Hurricane Katrina KATRINA Keeping All the Resources in New Orleans Alive KATRINA Krewe Aiding Trash Removal In the New Orleans Area adversely affected net income by $3.8 million or $0.05 per diluted share for fiscal 2005. --Atmos Energy expects fiscal 2006 earnings to be in the range of $1.80 to $1.90 per diluted share. "Atmos Energy had a record-breaking Adj. 1. record-breaking - surpassing any previously established record; "a record-breaking high jump"; "record-breaking crowds" best - (superlative of `good') having the most positive qualities; "the best film of the year"; "the best solution"; "the best time for year, with more than $1 billion in gross profit for the first time in our company's history," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. W. Best, chairman, president and chief executive officer of Atmos Energy Corporation. "We also saw our net income increase 57 percent to $136 million, while our gas marketing earnings rose 41 percent to $23 million." "Our TXU Gas acquisition was a major contributor, surpassing our original estimate of a contribution to earnings of $0.05 to $0.10 per diluted share. Acquiring the TXU Gas operations nearly doubled the number of utility customers to make Atmos Energy the largest pure-gas provider in the nation. In our nonutility business, gas marketing operations contributed an outstanding $0.30 per diluted share to set a new company record. In every way, it was a banner Same as banner ad. 1. banner - The title page added to printouts by most print spoolers. Typically includes user or account ID information in very large character-graphics capitals. year for Atmos Energy," Best said. Net income for fiscal 2005 was adversely affected by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $22.8 million, or $0.29 per diluted share, by weather that was 11 percent warmer than normal, as adjusted for jurisdictions with weather-normalized rates. However, because of solid results in its nonutility operations coupled with the acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. of $12.4 million after-tax ($20.0 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ) of expense reductions from the TXU Gas acquisition that were originally anticipated in fiscal 2006, Atmos Energy substantially overcame the negative effect of weather on fiscal 2005 results. The realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of these operational synergies improved net income by $0.16 per diluted share in the current fiscal year. Earnings in fiscal 2005 include the results of operations of the acquired natural gas utility distribution and pipeline operations of TXU Gas. After completing the acquisition on October October: see month. 1, 2004, Atmos Energy formed its Mid-Tex Division to operate the acquired utility distribution operations and its Atmos Pipeline-Texas Division to operate the gas pipeline and storage operations. Together, the new divisions contributed $52.7 million in net income during fiscal 2005 and generated a net loss of $3.0 million during the fiscal 2005 fourth quarter. Earnings per diluted share for fiscal 2005 and the fiscal 2005 fourth quarter reflect dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. associated with a 24.6 million share increase, year over year, and a 19.6 million share increase, quarter over quarter, in the company's weighted average number of diluted shares outstanding. The increases in shares were primarily due to equity offerings in July July: see month. and October 2004, resulting in a total issuance of 26.0 million new shares to finance a portion of the TXU Gas acquisition. Results for the Year Ended September 30, 2005 Consolidated gross profit for the fiscal year ended September 30, 2005, was approximately $1.1 billion, compared with $562.2 million in the prior year. The $566.9 million increase in consolidated gross profit primarily reflects the positive effects of the TXU Gas acquisition coupled with a strong performance in the nonutility natural gas marketing segment. Utility gross profit increased $404.3 million to $907.4 million for fiscal 2005, compared with $503.1 million in the prior year, before intersegment eliminations. Consolidated utility throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. increased to 411.1 billion cubic feet (Bcf) for fiscal 2005, compared with 246.0 Bcf for the prior year, an increase of 165.1 Bcf. The increases in utility gross profit and throughput primarily reflect the contribution of $398.2 million in gross profit and 174.3 Bcf in throughput from the Mid-Tex Division. Additionally, gross profit increased $6.1 million primarily due to rate increases in the West Texas and Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by jurisdictions that were not in effect during the same period last year, coupled with the recognition of a $1.9 million 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 to customers in the Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. service area in the prior fiscal year that did not recur in the current year. Offsetting these increases was a $3.9 million reduction in gross profit in the Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. Division due to the impact of Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. .
For the fiscal year ended September 30, 2005, weather was 11 percent
warmer than normal, as adjusted for jurisdictions with
weather-normalized operations. In the Louisiana and Mid-Tex Divisions,
where the company does not have weather-normalized rates, weather was 22
percent and 20 percent warmer than normal. Atmos Energy is currently
exploring alternatives to reduce the impact of weather on earnings in
these two jurisdictions.
Natural gas marketing gross profit increased $15.4 million to $62.0 million for fiscal 2005 compared with $46.6 million last year, before intersegment eliminations. The increase in natural gas marketing gross profit was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to capturing more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. arbitrage arbitrage: see foreign exchange. arbitrage Business operation involving the purchase of foreign currency, gold, financial securities, or commodities in one market and their almost simultaneous sale in another market, in order to profit from price spreads through storage activities coupled with improved profitability from successfully executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. marketing efforts on higher-margin customers and customers in new market areas. This increase was partially offset by weather that was warmer than normal across the market areas and an unfavorable mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. effect on increased physical volumes in storage. At September 30, 2005, physical volumes in storage were 6.9 Bcf, compared to 5.5 Bcf in the prior year. Consolidated natural gas marketing sales volumes were 238.1 Bcf during fiscal 2005, compared with 222.6 Bcf in the prior year. On October 1, 2004, Atmos Energy created a separate pipeline and storage reporting segment under which it manages its gas pipeline and storage operations. This segment combines the 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. pipeline and storage operations of the Atmos Pipeline-Texas Division and the nonregulated pipeline and storage operations of Atmos Pipeline and Storage, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which were previously included in the company's other nonutility segment. Pipeline and storage gross profit was $157.9 million for fiscal 2005, compared with $10.4 million in the prior year. The increase was primarily due to $149.5 million in gross profit associated with 375.6 Bcf of incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. pipeline transportation volumes from the new Atmos Pipeline-Texas Division. Consolidated operation and maintenance expense for fiscal 2005 was $427.7 million, compared with $214.5 million for fiscal 2004. Excluding the provision for doubtful accounts and a $196.3 million increase attributable to the new Mid-Tex and Atmos Pipeline-Texas Divisions, operation and maintenance expense for the fiscal year ended September 30, 2005, increased $2.0 million compared with the prior year. The increase was primarily attributable to higher operation and maintenance expense of $2.3 million associated with the effects of Hurricane Katrina and increases in personnel costs in the natural gas marketing segment partially offset by cost control efforts in the utility segment. The provision for doubtful accounts increased from $5.4 million in the prior year to $20.3 million for the fiscal year ended September 30, 2005. The $14.9 million increase in the provision for doubtful accounts was primarily attributable to the new Mid-Tex Division operations and increases in the utility and natural gas marketing segment provisions due to potential increased collection risk associated with higher natural gas prices. Exceptional customer accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying collection efforts helped to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. these increases. In the utility segment, the
average cost of natural gas for the fiscal year ended September 30,
2005, was $7.41 per thousand cubic feet (Mcf), compared with $6.55 per
Mcf for the 2004 fiscal year.
Depreciation and amortization expense for the fiscal year ended September 30, 2005, was $178.0 million, compared with $96.6 million in the prior year. The $81.4 million increase primarily reflects the depreciation associated with the operations of the new Mid-Tex and Atmos Pipeline-Texas Divisions. Taxes, other than income taxes, for the fiscal year ended September 30, 2005, were $174.7 million, compared with $57.4 million for the prior year. The $117.3 million increase was primarily attributable to additional franchise, payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. and property taxes associated with the new Mid-Tex and Atmos Pipeline-Texas Divisions and higher franchise taxes due to higher revenues. Increases in franchise taxes have no permanent effect on net income because these amounts are revenue based and are ultimately recovered through collection of customer bills. Interest charges for the fiscal year ended September 30, 2005, were $132.7 million, compared with $65.4 million for the fiscal year ended September 30, 2004. The $67.3 million increase was primarily due to higher average outstanding debt balances and the resulting incremental interest expense associated with Atmos Energy's $1.4 billion debt offering in October 2004, which was used to finance a portion of the TXU Gas acquisition. Miscellaneous income for the fiscal year ended September 30, 2005, was $2.0 million, compared with miscellaneous income of $9.5 million for fiscal 2004. The $7.5 million decrease was primarily due to the absence in the current year of a $5.9 million pretax gain associated with the sale of the company's indirect interest in Heritage in fiscal 2004 and a $0.8 million pretax gain on the sale of an office building in fiscal 2004, partially offset by a $1.6 million increase in interest income earned on higher cash balances during fiscal 2005 compared with fiscal 2004. For fiscal 2005, operating activities provided cash of $386.9 million, compared with $270.7 million for the fiscal year ended September 30, 2004. The period-over-period increase was primarily due to increased net income, more effective management of working capital and seasonally favorable purchased gas cost recoveries, partially offset by lower than expected utility sales volumes due to the effects of warmer weather. In addition, cash flow was negatively affected by a 40 percent quarter-over-quarter higher average cost of natural gas, resulting in higher accounts receivable and natural gas inventories compared with the prior year and an increase in margin deposits due to net unfavorable movements in the market indices used to value the natural gas marketing segment financial instruments. Capital expenditures increased to $333.2 million for the fiscal year ended September 30, 2005, from $190.3 million for fiscal 2004 primarily reflecting spending for the new Mid-Tex Division of $115.0 million and for the Atmos Pipeline-Texas Division of $31.4 million. Results for the 2005 Fourth Quarter Ended September 30, 2005 Consolidated gross profit for the three months ended September 30, 2005, was $201.7 million, compared with $89.5 million for the three months ended September 30, 2004. The $112.2 million increase in consolidated gross profit primarily reflects the positive effects of the TXU Gas acquisition and substantially increased margins in the company's natural gas marketing segment. Utility gross profit increased $69.7 million to $151.8 million for the three months ended September 30, 2005, compared with $82.1 million in the same period last year, before intersegment eliminations. Consolidated utility throughput increased by 22.0 Bcf to 59.4 Bcf for the three months ended September 30, 2005, compared with 37.4 Bcf for the prior year quarter. The increases in utility gross profit and throughput primarily reflect the contribution of $73.7 million in gross profit and 23.6 Bcf in throughput from the Mid-Tex Division. Excluding the new Mid-Tex Division, gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. decreased $4.0 million, primarily due to the loss of $3.9 million in gross profit margin in Atmos Energy's Louisiana operations from the impact of Hurricane Katrina. Natural gas marketing gross profit was $13.6 million for the three months ended September 30, 2005, compared with $5.6 million in the same quarter last year, before intersegment eliminations. The $8.0 million increase in natural gas marketing gross profit was largely attributable to increases resulting from successfully capturing more favorable arbitrage spreads through the company's storage activities, partially offset by increased storage fees associated with incremental storage contracted in the third quarter of this fiscal year. Consolidated natural gas marketing sales volumes were 58.4 Bcf during the three months ended September 30, 2005, compared with 48.8 Bcf in the prior year quarter. Pipeline and storage gross profit was $36.0 million for the three months ended September 30, 2005, compared with $1.3 million for the three months ended September 30, 2004. The $34.7 million increase was primarily due to $38.0 million in gross profit associated with 121.1 Bcf of incremental pipeline transportation volumes from the operations of the Atmos Pipeline-Texas Division, coupled with higher transportation and related service margins due to significant "basis differentials" at the three major Texas gas hubs hubs - hub . Consolidated operation and maintenance expense for the three months ended September 30, 2005, increased $66.0 million to $114.0 million, compared with $48.0 million for the three months ended September 30, 2004. Excluding the provision for doubtful accounts and a $55.1 million increase attributable to the new Mid-Tex and Atmos Pipeline-Texas Divisions, operation and maintenance expense for the three months ended September 30, 2005, increased $4.9 million compared with the prior year period. The increase in operation and maintenance expense is primarily attributable to increased operation and maintenance expense of $2.3 million associated with the effects of Hurricane Katrina and increases in personnel costs in the company's natural gas marketing segment partially offset by the effects of cost-control efforts in the utility segment. The provision for doubtful accounts increased $6.0 million during the three months ended September 30, 2005, compared with the prior year quarter due to increases in the utility and natural gas marketing segments reflecting potential increased collection risk associated with higher natural gas prices. In the utility segment, the average cost of natural gas for the three months ended September 30, 2005, was $9.05 per Mcf, compared with $6.46 per Mcf for the three months ended September 30, 2004. Depreciation and amortization expense for the quarter ended September 30, 2005, was $45.2 million, compared with $26.8 million in the prior year period. The $18.4 million increase primarily reflects the depreciation associated with the operations of the new Mid-Tex and Atmos Pipeline-Texas Divisions. Taxes, other than income taxes, for the three months ended September 30, 2005, were $34.2 million, compared with $11.5 million for the prior year period. The $22.7 million increase was primarily attributable to additional franchise, payroll and property taxes associated with the new Mid-Tex and Atmos Pipeline-Texas Divisions. Interest charges for the three months ended September 30, 2005, were $33.4 million, compared with $15.9 million for the three months ended September 30, 2004. The $17.5 million increase was primarily due to higher average outstanding debt balances and the resulting incremental interest expense associated with the company's $1.4 billion debt offering in October 2004 used to finance a portion of the TXU Gas acquisition. Miscellaneous expense for the three months ended September 30, 2005, was $0.8 million, compared with miscellaneous income of $1.7 million for the three months ended September 30, 2004. The $2.5 million decrease primarily reflects a $1.0 million increase in charitable donations towards the Hurricane Katrina relief effort combined with lower interest income attributable to a lower average cash balance in the current year quarter compared with the prior year quarter as the proceeds from the July 2004 equity offering were still on hand in the prior year quarter in advance of the TXU Gas acquisition. Outlook Atmos Energy said its leadership remains focused on enhancing shareholder value by delivering consistent earnings growth and providing a sound and attractive dividend. Atmos Energy expects fiscal 2006 earnings to be in the range of $1.80 to $1.90 per diluted share, assuming normal weather conditions and the negative impact of Hurricane Katrina, which is expected to reduce fiscal 2006 earnings by as much as $0.08 to $0.10 per diluted share. Capital expenditures for fiscal 2006 are expected to be in the range of $400 to $415 million. The Board of Directors today announced an increase in the company's annual dividend for the 18th consecutive year, raising the indicated dividend Indicated Dividend The total dividends that would be paid on a share of stock throughout the next year if each dividend is the same amount as the previous payment. Notes: For example, if General Motors paid a dividend of $0. in fiscal 2006 to $1.26 per share of common stock. Conference Call to be Webcast November November: see month. 9, 2005 Atmos Energy Corporation will host a conference call with financial analysts to discuss the financial results for the fiscal year ended September 30, 2005 on Wednesday Wednesday: see week. , November 9, 2005, at 7 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. . The phone number is 800-218-0713. The conference call will be webcast live on the Atmos Energy Web site at www.atmosenergy.com. A slide presentation also will be available on the company's Web site, and a playback Playback could mean:
German chemist known for his research on the components of blood. He won a 1930 Nobel Prize for his work on the synthesis of hemin. , senior vice president, utility operations; JD Woodward, senior vice president, nonutility operations; Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. Meisenheimer, vice president and controller; Laurie Laurie long in love with Jo March, he begs her to marry him and is rejected. [Am. Lit.: Louisa May Alcott Little Women] See : Love, Spurned Sherwood, vice president, corporate development, and treasurer TREASURER. An officer entrusted with the treasures or money either of a private individual, a corporation, a company, or a state. 2. It is his duty to use ordinary diligence in the performance of his office, and to account with those whose money he has. ; and Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE Kappes, vice president, investor relations Investor relations The process by which the corporation communicates with its investors. . Highlights and Recent Developments $600 Million Credit Facility On October 18, 2005, Atmos Energy entered into a $600 million 3-year committed revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The credit facility will expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. on October 18, 2008. This facility serves as a backup liquidity facility for the company's commercial paper program. The credit facility, which replaced the company's $600 million 364-day working capital facility, contains essentially the same terms as those of the previous facility. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. The matters discussed in this news release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the Company and are intended to qualify for the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. from liability established by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. When used in this news release or in any of the Company's other documents or oral presentations, the words "anticipate," "believes," "estimate," "expects," "forecast," "goal," "intends," "objective," "plans," "projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. ," "seek," "strategy" or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this news release, including the risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the acquisition of the operations of TXU Gas, the Company's ability to continue to access the capital markets and the other factors discussed in the Company's SEC filings. These factors include the risks and uncertainties discussed in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended September 30, 2004, and the Company's Form 10-Q Form 10-Q See 10-Q. for the three and nine month periods ended June June: see month. 30, 2005. Although the Company believes these forward-looking statements to be reasonable, there can be no assurance that they will approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. actual experience or that the expectations derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from them will be realized. The Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. About Atmos Energy Atmos Energy Corporation, headquartered in Dallas, is the country's largest natural gas-only distributor, serving about 3.2 million gas utility customers. Atmos Energy's utility operations serve more than 1,500 communities in 12 states from the Blue Ridge Mountains Blue Ridge also Blue Ridge Mountains A range of the Appalachian Mountains extending from southern Pennsylvania to northern Georgia. It rises to 2,038.6 m (6,684 ft) at Mount Mitchell in the Black Mountains of western North Carolina. in the East to the Rocky Mountains Rocky Mountains, major mountain system of W North America and easternmost belt of the North American cordillera, extending more than 3,000 mi (4,800 km) from central N.Mex. to NW Alaska; Mt. Elbert (14,431 ft/4,399 m) in Colorado is the highest peak. in the West. Atmos Energy's nonutility operations, organized under Atmos Energy Holdings, Inc., operate in 22 states. They provide natural gas marketing and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. services to industrial, commercial and municipal customers and manage company-owned natural gas pipeline and storage assets, including one of the largest intrastate in·tra·state adj. Relating to or existing within the boundaries of a state. Adj. 1. intrastate - relating to or existing within the boundaries of a state; "intrastate as well as interstate commerce" natural gas pipeline systems in Texas. For more information, visit www.atmosenergy.com.
Atmos Energy Corporation
Financial Highlights (Unaudited)
Statements of Income Three Months Ended Year Ended
------------------------ September 30 September 30
(000s except per share) 2005 2004 2005 2004
---------- --------- ----------- -----------
Operating revenues:
Utility segment $452,347 $212,706 $3,103,140 $1,637,728
Natural gas marketing
segment 632,751 363,216 2,106,278 1,618,602
Pipeline and storage
segment (1) 33,944 1,515 164,742 19,758
Other nonutility
segment (1) 1,244 1,144 5,302 3,393
Intersegment
eliminations (115,659) (85,703) (406,136) (359,444)
---------- --------- ----------- -----------
1,004,627 492,878 4,973,326 2,920,037
Purchased gas cost:
Utility segment 300,593 130,617 2,195,774 1,134,594
Natural gas marketing
segment 619,177 357,576 2,044,305 1,571,971
Pipeline and storage
segment (1) (2,084) 225 6,811 9,383
Other nonutility
segment (1) -- -- -- --
Intersegment
eliminations (114,765) (85,060) (402,654) (358,102)
---------- --------- ----------- -----------
802,921 403,358 3,844,236 2,357,846
---------- --------- ----------- -----------
Gross profit 201,706 89,520 1,129,090 562,191
Operation and maintenance
expense 113,981 47,994 427,734 214,470
Depreciation and
amortization 45,234 26,768 178,005 96,647
Taxes, other than income 34,159 11,478 174,696 57,379
---------- --------- ----------- -----------
Total operating
expenses 193,374 86,240 780,435 368,496
Operating income 8,332 3,280 348,655 193,695
Miscellaneous income
(expense), net (846) 1,657 2,021 9,507
Interest charges 33,354 15,931 132,658 65,437
---------- --------- ----------- -----------
Income (loss) before
income taxes (25,868) (10,994) 218,018 137,765
Income tax expense
(benefit) (9,066) (4,610) 82,233 51,538
---------- --------- ----------- -----------
Net income (loss) $(16,802) $(6,384) $135,785 $86,227
========== ========= =========== ===========
Basic net income (loss)
per share $(0.21) $(0.11) $1.73 $1.60
Diluted net income (loss)
per share $(0.21) $(0.11) $1.72 $1.58
Cash dividends per share $.310 $.305 $1.24 $1.22
Weighted average shares
outstanding:
Basic 80,030 60,477 78,508 54,021
Diluted 80,030 60,477 79,012 54,416
Three Months Ended Year Ended
Summary Net Income (Loss) September 30 September 30
by Segment (000s) 2005 2004 2005 2004
------------------------ ---------- --------- ----------- -----------
Utility $(22,889) $(8,025) $81,117 $63,096
Natural gas marketing 3,991 1,725 23,404 16,633
Pipeline and storage (1) 2,035 123 30,599 2,767
Other nonutility (1) 61 (207) 665 3,731
---------- --------- ----------- -----------
Consolidated net
income (loss) $(16,802) $(6,384) $135,785 $86,227
========== ========= =========== ===========
(1) Effective October 1, 2004, Atmos Energy created the pipeline and
storage segment, which reflects the regulated pipeline and storage
operations of the Atmos Pipeline -- Texas Division and the
nonregulated pipeline and storage operations of Atmos Pipeline and
Storage, LLC, which was previously included in the other
nonutility segment. Segment information for all prior year periods
has been restated to reflect this new organizational structure.
Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
Condensed Balance Sheets
------------------------ September 30, September 30,
(000s) 2005 2004
--------------- ---------------
Net property, plant and equipment $3,374,367 $1,722,521
Cash and cash equivalents 40,116 201,932
Cash held on deposit in margin account 80,956 --
Accounts receivable, net 454,313 211,810
Gas stored underground 450,807 200,134
Other current assets 238,238 99,319
--------------- ---------------
Total current assets 1,264,430 713,195
Goodwill and intangible assets 744,596 245,528
Deferred charges and other assets 276,943 231,383
--------------- ---------------
$5,660,336 $2,912,627
=============== ===============
Shareholders' equity $1,602,422 $1,133,459
Long-term debt 2,183,104 861,311
--------------- ---------------
Total capitalization 3,785,526 1,994,770
Accounts payable and accrued
liabilities 468,123 185,295
Other current liabilities 503,368 238,682
Short-term debt 144,809 --
Current maturities of long-term debt 3,264 5,908
--------------- ---------------
Total current liabilities 1,119,564 429,885
Deferred income taxes 292,207 241,257
Deferred credits and other liabilities 463,039 246,715
--------------- ---------------
$5,660,336 $2,912,627
=============== ===============
Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
Condensed Statements of Cash Flows
---------------------------------- Year Ended September 30
(000s) 2005 2004
-------------- ---------
Cash flows from operating activities
Net income $135,785 $86,227
Gain on sales of assets -- (6,700)
Depreciation and amortization 178,796 98,112
Deferred income taxes 12,669 36,997
Changes in assets and liabilities 48,172 57,870
Other 11,522 (1,772)
-------------- ---------
Net cash provided by operating activities 386,944 270,734
Cash flows from investing activities
Capital expenditures (333,183) (190,285)
Acquisitions (1,916,696) (1,957)
Proceeds from sales of assets -- 27,919
Other (2,131) (570)
-------------- ---------
Net cash used in investing activities (2,252,010) (164,893)
Cash flows from financing activities
Net increase (decrease) in short-term debt 144,809 (118,595)
Net proceeds from issuance of long-term debt 1,385,847 5,000
Repayment of long-term debt (103,425) (9,713)
Settlement of Treasury lock agreements (43,770) --
Cash dividends paid (98,978) (66,736)
Net proceeds from equity offering 381,584 235,737
Issuance of common stock 37,183 34,715
-------------- ---------
Net cash provided by financing activities 1,703,250 80,408
-------------- ---------
Net (decrease) increase in cash and cash
equivalents (161,816) 186,249
Cash and cash equivalents at beginning of
period 201,932 15,683
--------------- ---------
Cash and cash equivalents at end of period $40,116 $201,932
=============== =========
Three Months Ended Year Ended
September 30 September 30
Statistics 2005 2004 2005 2004
-------------------------- ---------- ---------- ---------- ----------
Heating degree days (a) 8 22 2,587 3,271
Percent of normal (a) 47% 76% 89% 96%
Consolidated utility gas
throughput
(MMcf as metered) 59,422 37,449 411,134 246,033
Consolidated natural gas
marketing sales volumes
(MMcf) 58,418 48,843 238,097 222,572
Consolidated pipeline
transportation volumes
(MMcf) 121,076 -- 375,604 --
Natural gas meters in
service 3,157,840 1,679,136 3,157,840 1,679,136
Utility average cost of
gas $9.05 $6.46 $7.41 $6.55
(a) Adjusted for weather-normalized operations.
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