Atmos Energy Corporation Reports Results for Fiscal 2005 Second Quarter and Six Months.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 results for its fiscal 2005 second quarter and six months ended March 31, 2005. Second quarter financial highlights include: --Net income of $88.5 million, or $1.11 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 for the current quarter, compared with $58.3 million, or $1.12 per diluted share in the prior year quarter. --Prior period results included a $2.9 million 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, or $0.05 per diluted share, on the sale of the company's indirect interest in Heritage Propane Partners, L.P. in January January: see month. 2004. --Net income for the current quarter was adversely affected by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $11.8 million, or $0.15 per diluted share due to weather that was 10 percent warmer than normal, as adjusted for jurisdictions with weather-normalized rates. --Because of the positive effects of its TXU TXU Texas Utilities (Electric and Gas Company) TXU Transmitter Unit Gas acquisition coupled with cost-control efforts across the enterprise, Atmos Energy maintained its fiscal 2005 earnings guidance at the lower end of the previously announced range of $1.65 to $1.75 per diluted share. For the six months ended March 31, 2005, net income was $148.1 million, or $1.90 per diluted share, compared with net income of $87.8 million, or $1.69 per diluted share for the six months ended March 31, 2004. Results for the same period last year included a $2.9 million after-tax gain, or $0.05 per diluted share, as referenced above. Net income for the six months was adversely affected by approximately $17.1 million, or $0.22 per diluted share due to weather that was 11 percent warmer than normal, as adjusted for jurisdictions with weather-normalized rates. Earnings in fiscal 2005 include the results of operations of the acquired natural gas utility distribution and pipeline operations of TXU Gas Company (TXU Gas). After completing the acquisition on October October: see month. 1, 2004, Atmos Energy formed its Mid-Tex Division to operate the utility distribution operations and its Atmos Pipeline-Texas Division to operate the gas pipeline and storage operations. Together, the new divisions contributed $29.3 million in net income for the three months ended March 31, 2005, and $53.7 million in net income for the six months ended March 31, 2005. Earnings per diluted share for the three and six month periods ended March 31, 2005 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 27.5 million share increase, quarter over quarter, and a 25.7 million share increase, year over year, 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 partially the TXU Gas acquisition. "Due to the continued strong performance by our acquired distribution and pipeline operations and our controlling of discretionary expenses during the second quarter of fiscal 2005, we were able to offset much of the effect on our earnings of the one thing we cannot control -- unseasonably warm weather in jurisdictions without weather-normalized rates," 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 remain focused on seeking rate design to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the effects of weather,
conservation and regulatory 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. lag on our utility margins." Results for the 2005 Second Quarter Ended March 31, 2005 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: gross profit for the three months ended March 31, 2005 was $378.6 million, compared with $206.1 million for the three months ended March 31, 2004. The increase in consolidated gross profit reflects the positive effects of the TXU Gas acquisition. Utility gross profit increased to $323.1 million in the current quarter, compared with $189.5 million in the same period last 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 160.1 billion cubic feet (Bcf) for the three months ended March 31, 2005, compared with 97.8 Bcf for the prior year quarter. The increases in utility gross profit and throughput primarily reflect the contribution of $131.2 million in gross profit and 70.2 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. increased $2.4 million, primarily due to the effect of rate increases in 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 that were not in effect during the same quarter last year and the absence of a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. regulatory 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 recorded in the prior year quarter, partially offset by weather that was 3 percent warmer than the same period last year. Natural gas marketing gross profit was $11.2 million for the three months ended March 31, 2005, compared with $11.9 million in the same quarter last year, before intersegment eliminations. The slight decrease 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 the 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 offset by improved profitability from certain restructured asset management transactions. Consolidated natural gas marketing sales volumes were 66.6 Bcf during the three months ended March 31, 2005, compared with 67.2 Bcf in the prior year quarter. On October 1, 2004, Atmos Energy created a separate pipeline and storage reporting segment to manage the company's 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 was previously included in our other nonutility segment. Pipeline and storage gross profit was $43.8 million for the three months ended March 31, 2005, compared with $4.3 million for the three months ended March 31, 2004. The increase was primarily due to 84.2 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, which was formed from the acquired TXU Gas pipeline and storage operations. Consolidated operation and maintenance expense for the three months ended March 31, 2005, was $106.1 million, compared with $59.1 million for the three months ended March 31, 2004. Excluding the provision for doubtful accounts and a $51.1 million increase attributable to the new Mid-Tex and Atmos Pipeline-Texas Divisions, operation and maintenance expense for the three months ended March 31, 2005 decreased $2.4 million compared with the same quarter in 2004, primarily due to the impact of cost-control efforts in our utility segment and reduced contract labor costs in our natural gas marketing segment. The provision for doubtful accounts decreased $1.7 million to $2.8 million for the three months ended March 31, 2005, compared with $4.5 million in the prior year quarter. The decrease in the provision for doubtful accounts was primarily attributable to 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, partially offset by the incremental provision for doubtful accounts associated with the new Mid-Tex Division operations. In the utility segment, the average cost of natural gas for the three months ended March 31, 2005 was $7.12 per thousand cubic feet (Mcf), compared with $6.72 per Mcf for the three months ended March 31, 2004. Depreciation and amortization expense for the quarter ended March 31, 2005 was $45.3 million, compared with $23.1 million in the prior year period. The $22.2 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 March 31, 2005 were $55.0 million, compared with $18.5 million for the prior year period. The $36.5 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 recovered through customer billings Billings, city (1990 pop. 81,151), seat of Yellowstone co., S Mont., on the Yellowstone River, in a valley surrounded by seven mountain ranges; inc. as a city 1885. . Interest charges for the three months ended March 31, 2005 were $33.1 million, compared with $16.2 million for the three months ended March 31, 2004. The $16.9 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 used to finance partially the TXU Gas acquisition. Miscellaneous income for the three months ended March 31, 2005 was $1.0 million, compared with $4.5 million for the three months ended March 31, 2004. The $3.5 million decrease was primarily due to the absence of the $4.9 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain associated with the sale of the company's indirect interest in Heritage Propane Partners, L.P., in January 2004. Results for the Six Months Ended March 31, 2005 Consolidated gross profit for the six months ended March 31, 2005 was $703.0 million, compared with $365.2 million for the six months ended March 31, 2004. The increase in consolidated gross profit reflects the positive effects of the TXU Gas acquisition coupled with strong performance in the nonutility natural gas marketing segment. Utility gross profit increased to $580.4 million for the six months ended March 31, 2005, compared with $327.9 million in the same period last year, before intersegment eliminations. Consolidated utility throughput increased to 279.0 Bcf for the six months ended March 31, 2005, compared with 166.0 Bcf for the prior year period. The increases in utility gross profit and throughput primarily reflect the contribution of $245.1 million in gross profit and 122.1 Bcf in throughput from the Mid-Tex Division, as well as the effect of rate increases in West Texas and Mississippi that were not in effect during the same period last year. For the six months ended March 31, 2005, weather was 11 percent warmer than normal, as adjusted for jurisdictions with weather-normalized operations. Natural gas marketing gross profit was $38.0 million for the six months ended March 31, 2005, compared with $29.4 million in the same period last year, before intersegment eliminations. The increase in natural gas marketing gross profit was primarily attributable to improved profitability from certain restructured asset-management transactions partially offset by an unfavorable mark-to-market effect on increased physical volumes in storage. Consolidated natural gas marketing sales volumes were 126.9 Bcf during the six months ended March 31, 2005, compared with 126.1 Bcf in the prior year period. Pipeline and storage gross profit was $83.6 million for the six months ended March 31, 2005, compared with $6.9 million for the six months ended March 31, 2004. The increase was due to 157.0 Bcf of incremental pipeline transportation volumes from the operations of the Atmos Pipeline-Texas Division. Consolidated operation and maintenance expense for the six months ended March 31, 2005 was $219.2 million compared with $116.0 million for the six months ended March 31, 2004. Excluding the provision for doubtful accounts and a $100.0 million increase attributable to the new Mid-Tex and Atmos Pipeline-Texas Divisions, operation and maintenance expense for the six months ended March 31, 2005 was flat compared with the same period in 2004. The provision for doubtful accounts increased $2.5 million to $10.2 million for the six months ended March 31, 2005, compared with $7.7 million in the prior year period. The increase in the provision for doubtful accounts was primarily attributable to the new Mid-Tex Division operations partially offset by exceptional customer accounts receivable collection efforts. In the utility segment, the average cost of natural gas for the six months ended March 31, 2005 was $7.16 per Mcf, compared with $6.58 per Mcf for the six months ended March 31, 2004. Depreciation and amortization expense for the six months ended March 31, 2005 was $89.3 million, compared with $46.6 million in the prior year period. The $42.7 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 six months ended March 31, 2005 were $93.6 million, compared with $33.6 million for the prior year period. The $60.0 million increase was primarily attributable to additional franchise, payroll and property taxes associated with the new Mid-Tex and Atmos Pipeline-Texas Divisions and higher franchise taxes due to higher revenues. Interest charges for the six months ended March 31, 2005 were $65.6 million, compared with $33.5 million for the six months ended March 31, 2004. The $32.1 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 used to finance partially the TXU Gas acquisition. Miscellaneous income for the six months ended March 31, 2005 was $1.3 million, compared with $5.7 million for the six months ended March 31, 2004. The $4.4 million decrease was primarily due to the absence of the $4.9 million pretax gain associated with the sale of the company's indirect interest in Heritage Propane Partners, L.P., in January 2004. For the six months ended March 31, 2005, operating activities provided cash of $400.1 million, compared with $290.6 million for the six months ended March 31, 2004. The period over period increase was primarily due to increased net income and more effective management of working capital, partially offset by lower than expected utility sales volumes due to the effect of warmer weather. In addition, cash flow was negatively affected by higher volumes of natural gas held in inventory and a 9 percent higher average cost of gas, as compared with the prior year period, and by seasonally unfavorable purchased gas cost recoveries. Capital expenditures increased to $137.5 million for the six months ended March 31, 2005 from $83.7 million for the six months ended March 31, 2004, primarily reflecting spending for the new Mid-Tex Division of $45.8 million and for the Atmos Pipeline-Texas Division of $7.9 million. Outlook Atmos Energy said its leadership remains focused on enhancing shareholder value by delivering consistent earnings growth and providing a sound and attractive dividend. Despite the slight reduction in earnings per share, the company experienced a net increase in cash and cash equivalents of $45.2 million for the six months of fiscal 2005. Additionally, the company had a $247.1 million cash balance with no short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. outstanding at March 31, 2005. Debt comprised 58.1 percent of total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. , down from 59.8 percent at December December: see month. 31, 2004. Revised expectations for operation and maintenance expense are that it will decline to $430 to $440 million for fiscal 2005. Capital expenditures for fiscal 2005 are still expected to be $340 to $350 million. As previously announced, earnings per diluted share in fiscal 2005 are expected to be at the lower end of the $1.65 to $1.75 range. The indicated annual dividend remains $1.24 per share. Conference Call to be Webcast May 10 Atmos Energy Corporation will host a conference call with financial analysts to discuss the financial results for the second quarter and first six months of fiscal 2005 on Tuesday Tuesday: see week. , May 10, 2005, at 7 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT . The telephone number is 800-218-0204. 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. and corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. . Highlights and Recent Developments Atmos Energy Opens Third Call Center On April 1, 2005, Atmos Energy took control of a third customer support center in Waco, Texas For the Branch Davidian siege in Waco, Texas, see . For other uses of "Waco", see Waco (disambiguation). Waco (pronounced: /ˈweɪkoʊ/) is the county seat of McLennan County, Texas. . The Waco call center handles approximately 10,000 calls a day from utility customers in Texas. Annually, the center is expected to respond to more than 3.5 million calls, making it the second largest of Atmos Energy's three call centers. In addition to 1,896 telephone lines at the 55,000-square-foot facility, state-of-the-art equipment was installed recently to provide faster customer service. The center primarily answers service requests and billing questions from the 1.5 million customers in the company's Mid-Tex Division. Previously, this work was handled by an outside contractor outside contractor n → contratista m/f independiente . 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 or 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 successful integration of the Company's 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 September: see month. 30, 2004, and the Company's Form 10-Q Form 10-Q See 10-Q. for the three months ended December 31, 2004. 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. 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 18 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)
Three Months Ended Six Months Ended
Statements of Income March 31 March 31
-----------------------
(000s except per share) 2005 2004 2005 2004
----------- ---------- ----------- -----------
Operating revenues:
Utility segment $1,235,377 $708,282 $2,149,058 $1,168,770
Natural gas marketing
segment 512,891 517,218 1,006,692 891,047
Pipeline and storage
segment (1) 45,546 9,967 89,236 12,886
Other nonutility
segment (1) 1,278 687 2,637 1,396
Intersegment
eliminations (110,007) (118,669) (193,914) (192,998)
----------- ---------- ----------- -----------
1,685,085 1,117,485 3,053,709 1,881,101
Purchased gas cost:
Utility segment 912,309 518,820 1,568,679 840,884
Natural gas marketing
segment 501,731 505,356 968,688 861,687
Pipeline and storage
segment (1) 1,718 5,681 5,590 6,008
Other nonutility
segment (1) -- -- -- --
Intersegment
eliminations (109,256) (118,498) (192,283) (192,657)
----------- ---------- ----------- -----------
1,306,502 911,359 2,350,674 1,515,922
----------- ---------- ----------- -----------
Gross profit 378,583 206,126 703,035 365,179
Operation and
maintenance expense 106,109 59,093 219,235 116,009
Depreciation and
amortization 45,326 23,138 89,323 46,611
Taxes, other than
income 54,967 18,481 93,622 33,604
----------- ---------- ----------- -----------
Total operating
expenses 206,402 100,712 402,180 196,224
Operating income 172,181 105,414 300,855 168,955
Miscellaneous income 958 4,456 1,343 5,663
Interest charges 33,073 16,160 65,615 33,495
----------- ---------- ----------- -----------
Income before income
taxes 140,066 93,710 236,583 141,123
Income tax expense 51,564 35,405 88,482 53,277
----------- ---------- ----------- -----------
Net income $88,502 $58,305 $148,101 $87,846
=========== ========== =========== ===========
Basic net income per
share $1.12 $1.12 $1.92 $1.70
Diluted net income per
share $1.11 $1.12 $1.90 $1.69
Cash dividends per
share $.310 $.305 $.620 $.610
Weighted average shares
outstanding:
Basic 79,270 51,850 77,290 51,666
Diluted 79,760 52,240 77,769 52,057
Three Months Six Months Ended
Ended March 31
March 31
Summary Net Income by Segment
(000s) 2005 2004 2005 2004
--------------------------------- -------- -------- --------- --------
Utility $73,651 $50,558 $110,674 $71,669
Natural gas marketing 3,791 3,422 17,053 10,958
Pipeline and storage (1) 10,638 1,587 19,722 2,102
Other nonutility (1) 422 2,738 652 3,117
-------- -------- --------- --------
Consolidated net income $88,502 $58,305 $148,101 $87,846
======== ======== ========= ========
(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 March 31, September 30,
-----------------------------------------
(000s) 2005 2004
-------------- -------------
Net property, plant and equipment $3,251,595 $1,722,521
Cash and cash equivalents 247,126 201,932
Cash held on deposit in margin account 16,990 --
Accounts receivable, net 527,411 211,810
Gas stored underground 273,811 200,134
Other current assets 112,428 63,236
-------------- -------------
Total current assets 1,177,766 677,112
Goodwill and intangible assets 722,044 238,272
Deferred charges and other assets 261,039 231,978
-------------- -------------
$5,412,444 $2,869,883
============== =============
Shareholders' equity $1,632,270 $1,133,459
Long-term debt 2,254,817 861,311
-------------- -------------
Total capitalization 3,887,087 1,994,770
Accounts payable and accrued liabilities 533,232 185,295
Other current liabilities 298,802 223,265
Short-term debt -- --
Current maturities of long-term debt 5,887 5,908
-------------- -------------
Total current liabilities 837,921 414,468
Deferred income taxes 245,836 213,930
Deferred credits and other liabilities 441,600 246,715
-------------- -------------
$5,412,444 $2,869,883
============== =============
Atmos Energy Corporation
Financial Highlights, continued (Unaudited)
Condensed Statements of Cash Flows Six Months Ended March
31
-----------------------------------------------
(000s) 2005 2004
----------- ----------
Cash flows from operating activities
Net income $148,101 $87,846
Gain on sales of assets -- (4,898)
Depreciation and amortization 89,800 47,212
Deferred income taxes 42,605 10,081
Changes in assets and liabilities 116,272 151,306
Other 3,315 (944)
----------- ----------
Net cash provided by operating activities 400,093 290,603
Cash flows from investing activities
Capital expenditures (137,466) (83,729)
Acquisitions (1,912,532) (1,950)
Proceeds from sales of assets -- 24,661
Other (1,957) 2,878
----------- ----------
Net cash used in investing activities (2,051,955) (58,140)
Cash flows from financing activities
Net decrease in short-term debt -- (118,595)
Net proceeds from issuance of long-term debt 1,385,847 5,000
Repayment of long-term debt (3,849) (5,546)
Settlement of Treasury lock agreements (43,770) --
Cash dividends paid (49,211) (31,616)
Net proceeds from equity offering 382,014 --
Issuance of common stock 26,025 17,594
----------- ----------
Net cash provided (used) by financing
activities 1,697,056 (133,163)
----------- ----------
Net increase in cash and cash equivalents 45,194 99,300
Cash and cash equivalents at beginning of
period 201,932 15,683
----------- ----------
Cash and cash equivalents at end of period $247,126 $114,983
=========== ==========
Three Months Ended Six Months Ended
March 31 March 31
Statistics 2005 2004 2005 2004
-------------------------- ---------- ---------- ---------- ----------
Heating degree days (a) 1,422 1,772 2,415 3,012
Percent of normal (a) 90% 97% 89% 96%
Consolidated utility gas
throughput (MMcf as
metered) 160,099 97,831 279,034 166,010
Consolidated natural gas
marketing sales volumes
(MMcf) 66,644 67,172 126,940 126,089
Consolidated pipeline
transportation volumes
(MMcf) 84,208 -- 156,961 --
Natural gas meters in
service 3,185,612 1,682,401 3,185,612 1,682,401
Utility average cost of
gas $7.12 $6.72 $7.16 $6.58
(a) Adjusted for weather-normalized operations.
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