Atmos Energy Reports Third Quarter Earnings.DALLAS--(BUSINESS WIRE)--Aug. 14, 1996--Atmos Energy 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 ) Wednesday Wednesday: see week. reported net income of $.3 million, or $.02 per share for its third fiscal quarter ended June 30, 1996. Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. were $93.6 million for the quarter. This compares with net income of $.1 million, or $.01 per share, on operating revenues of $84.7 million for 1995's third quarter. Average shares outstanding increased 3.3 percent from the third quarter of 1995 to 15.96 million shares. The third quarter is typically less profitable for natural gas utilities because of the seasonal nature of gas heating sales. The company's results for this quarter were positively impacted by rate increases and customer growth. Results also were positively affected by increased sales of natural gas used by farmers in West Texas, western Kansas and eastern Colorado for fueling irrigation irrigation, in agriculture, artificial watering of the land. Although used chiefly in regions with annual rainfall of less than 20 in. (51 cm), it is also used in wetter areas to grow certain crops, e.g., rice. pumps due to dry weather in April and May. Irrigation sales provide revenues for the company during off-peak spring and summer months. The company sold and transported 29.2 billion cubic feet (Bcf) of natural gas during the current quarter, compared with 27.7 Bcf during last year's quarter. Operations and maintenance expenses were down $1.7 million, or 7.6 percent, from the comparable quarter last year. For the nine months ended June 30, 1996, Atmos reported net income of $27.9 million, or $1.76 per share on operating revenues of $415.1 million. This compares with net income of $20.5 million, or $1.33 per share, on operating revenues of $359.8 million for the previous year's nine-month period. The volume of gas sold and transported for the nine months in 1996 was 121.8 Bcf, compared with 114.0 Bcf during the same period last year. Year to date in 1996, the weather has been about two percent warmer than normal but 10 percent colder than last year. For the 12 months ending June 30, 1996, return on average shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. improved to 15.4 percent. "The effect of rate increases, combined with customer growth and increased irrigation sales improved earnings for the quarter. We served a record 673,212 customers for the third quarter," said Robert F. Stephens, Atmos president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . On July 22, 1996, the company entered into a definitive agreement to acquire by merger United Cities United cities refers to the neighbouring cities divided by political borders, that were united, when due to political changes they happened in the same entity. (See also Divided cities)
The merger is consistent with the company's long-standing corporate development strategy of seeking natural gas distribution properties throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. to provide diversity in weather patterns, economic conditions, markets and regulatory climates regulatory climate The extent to which a regulated firm or industry is permitted to earn an adequate return on the stockholders' investment. This term is nearly always used in reference to utilities, which are required to obtain approval for rate changes. . United Cities serves approximately 340,000 natural gas and propane propane, CH3CH2CH3, colorless, gaseous alkane. It is readily liquefied by compression and cooling. It melts at −189.9°C; and boils at −42.2°C;. customers and operates in 10 states. The merger must be approved by shareholders of both companies and approval is required by certain federal and state regulatory bodies. Atmos expects the acquisition to be additive additive In foods, any of various chemical substances added to produce desirable effects. Additives include such substances as artificial or natural colourings and flavourings; stabilizers, emulsifiers, and thickeners; preservatives and humectants (moisture-retainers); and to earnings, exclusive of the one-time costs associated with the acquisition and assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation . Atmos has agreed to increase the indicated annual dividend from the current $.96 per share to not less than $1.02 per share, for no less than four quarters, at the first board meeting following the closing of the transaction. In a filing with the Securities and Exchange Commission on Aug. 1, 1996, Southern Union Company announced that it owned 6.5 percent of United Cities' outstanding common stock. Southern Union stated in its press statements related to the announcement that it opposes the merger of United Cities with Atmos and may propose alternatives to the merger. On Aug. 7, 1996, Atmos and United Cities jointly filed a complaint with the Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. Public Service Commission contending that Southern
Union purchased United Cities stock in 1995 and 1996 in violation of a
Missouri statute which requires prior approval by the commission for any
purchase by a public utility of the stock of a public utility operating
in Missouri.
The complaint seeks, among other things, that the Missouri commission declare the purchases null A character that is all 0 bits. Also written as "NUL," it is the first character in the ASCII and EBCDIC data codes. In hex, it displays and prints as 00; in decimal, it may appear as a single zero in a chart of codes, but displays and prints as a blank space. and void. In late May, the company filed for a $7.7 million rate increase in a portion of its West Texas service area, affecting about 200,000 customers in 67 cities. A final determination is expected from rate-setting authorities in the cities by October 1996. The company's Board of Directors today approved a $63.8 million capital budget for 1997, compared to a capital budget of $67.6 million in 1996. The Board also today declared a regular quarterly dividend of $.24 per share on the company's common stock to be paid on Sept. 10, 1996, to shareholders of record on Aug. 26, 1996. 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 provides natural gas service to approximately 673,000 customers in Texas, Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , Kentucky Kentucky, state, United StatesKentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. , Colorado, Kansas and Missouri through its operating companies operating company A business that engages in transactions with outsiders. - Energas Company, Greeley Gas Company, Trans Louisiana Gas Company and Western Kentucky Gas Company. -0-
Financial Highlights
(Unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
------------------ -----------------
1996 1995 1996 1995
---- ---- ---- ----
Statements of Income
(000's except per share)
------------------------
Operating revenue $ 93,571 $ 84,685 $415,143 $359,827
Purchased gas 59,795 50,616 265,248 222,699
-------- -------- -------- --------
Gross profit 33,776 34,069 149,895 137,128
Operating & maintenance
expense 20,367 22,048 65,176 66,343
Depreciation and
amortization 5,456 5,177 16,382 15,500
Taxes, other than income 3,742 3,825 13,446 13,290
Income taxes 152 32 15,715 11,533
-------- -------- -------- --------
Total operating expenses 29,717 31,082 110,719 106,666
-------- -------- -------- --------
Operating income 4,059 2,987 39,176 30,462
Other income (expense) (303) 473 (288) 387
Interest charges 3,440 3,378 10,956 10,346
-------- -------- -------- --------
Net income $ 316 $ 82 $27,932 $20,503
Net income per share $0.02 $0.01 $1.76 $1.33
Cash dividends per share $.24 $.23 $.72 $.69
Average shares
outstanding 15,965 15,450 15,855 15,386
Statistics
Heating degree days 291 365 3,870 3,507
Percent of normal 89% 111% 98% 89%
Total volumes handled
(mmcf as metered) 29,204 27,673 121,820 114,036
Meters in service
(average) 673,011 656,570 672,302 656,006
June 30, Sept. 30,
1996 1995
-------- ---------
Balance Sheet Items (000's)
---------------------------
Property, plant and
equipment $650,995 $595,359
Net property, plant and
equipment $398,695 $363,252
Total assets $488,285 $445,783
Shareholders' equity $179,056 $158,278
CONTACT: Atmos Energy MEDIA: Margaret Watson, 214/450-4050 or INVESTOR/ANALYST: Jack Eversull, 214/788-3729 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion