Bay State Gas Reports Fiscal Fourth Quarter Earnings Results and Progress on its Merger with NIPSCO Industries, Inc.WESTBOROUGH, Mass.--(BUSINESS WIRE)--Oct. 27, 1998--Bay State Gas Company (NYSE NYSE See: New York Stock Exchange :BGC BGC General Cable Corporation (stock symbol) BGC Billy Graham Center BGC Baptist General Conference (formerly Swedish Baptist Denomination) BGC Boys & Girls Club BGC Bubblegum Crisis ) today announced diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.91 for the fiscal year ended September 30, 1998, compared to $1.90 per share for the prior year. Earnings for 1998 were negatively affected by merger-related transaction and compensation costs as well as warmer than normal weather, and were partially offset by insurance recoveries of environmental expenditures and a change in a benefit plan accounting principle. Weather during 1998 was 9.1% warmer than normal and 7.8% warmer than fiscal 1997. For the quarter ended September 30, 1998, the company reported a 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. loss per share of ($0.78) compared to a diluted loss per share of ($1.21) for the year-ago quarter. Losses for the quarters ended June and September are typical for natural gas utilities due to the seasonal decline in demand for natural gas heating. Bay State Expects a Year-End Close on its Merger with NIPSCO NIPSCO Northern Indiana Public Service Company Industries The company's previously announced merger with NIPSCO Industries, Inc. of Merrillville, Indiana Merrillville (IPA: [ˈmɛ.ɹəlˌvɪl]) is a town in Lake County, Indiana, United States. The population was 30,560 at the 2000 census. Merrillville is located in the east-central portion of Lake County. , is expected to close in late 1998. Bay State shareholders approved the merger at a special shareholder meeting in May. The company also received approvals from regulators in Maine Maine, ship Maine, U.S. battleship destroyed (Feb. 15, 1898) in Havana harbor by an explosion that killed 260 men. The incident helped precipitate the Spanish-American War (Apr., 1898). Commanded by Capt. Charles Sigsbee, the ship had been sent (Jan. and New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). this past June and July, respectively, and is anticipating an order from Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. regulators
within a few weeks. Approvals such as these are customary for utility
mergers.-0-
Financial Highlights
Sept. 1998 Sept. 1997
In thousands, except per-share amounts
Three Months
Operating revenues $ 51,273 $ 52,091
Net loss $ (10,573) $ (16,174)
Diluted loss per average common share $ (0.78) $ (1.21)
Avg. number of common shares 13,787 13,635
outstanding - diluted
Twelve Months
Operating revenues $ 450,032 $ 473,581
Net income $ 12,664 $ 26,062
Diluted earnings per average common share $ 0.91 $ 1.90
Avg. number of common shares
outstanding - diluted 13,749 13,584
-0- Bay State serves more than 305,000 natural gas customers in the New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. states of Massachusetts, New Hampshire and Maine. The company's nonregulated subsidiaries, EnergyUSA(TM), SavageALERT, Inc. and EnergyEXPRESS(TM), provide energy products and services to about 94,000 residential, commercial, and industrial customers throughout the U.S. On December 18, 1997, Bay State announced its intent to merge with NIPSCO Industries, Inc. NIPSCO Industries, based in Merrillville, Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. ., is a holding company whose businesses are primarily energy or utility focused. These include marketing and trading; power generation; gas transmission, supply and storage; installation, repair and maintenance of underground pipelines; utility line locating and marking; and related products targeted to consumers and businesses. The company's regulated subsidiaries provide electricity and natural gas in northern Indiana Northern Indiana is the region of Indiana including 26 counties bordering parts of Illinois, Michigan, and Ohio. The area is generally sub-classified into other regions. The northwest is economically and culturally intertwined with Chicago, and is considered part of the Chicago , water in central Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , and interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. natural gas pipeline services. For additional information about Bay State, EnergyUSA(TM), SavageALERT(TM), EnergyEXPRESS(TM) and NIPSCO Industries, Inc., please visit the following web sites: "http://www.bgc.com;" "http://www.energyusa.com;" and "http://www.nipsco.com." This release contains 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 company cautions that, while it believes such statements to be reasonable and makes them in good faith, they almost always vary from actual results, and the differences between assumed facts or basis and actual results can be material, depending upon the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Investors should be aware of important factors that could have a material impact on future results. Factors include, but are not limited to, the regulatory environment and other uncertainties which are difficult to predict often beyond the control of the company. -0-
Bay State Gas Company
Consolidated Statements of Earnings
(Unaudited, in thousands except per share amounts)
Twelve months ended
September 30,
1998 1997
Operating revenues $450,032 $473,581
Operating expenses:
Recovered natural gas costs 212,250 262,571
Other cost of goods sold 31,201 10,328
Operations 116,565 95,455
Restructuring costs 626 11,213
Merger costs 4,385 --
Maintenance 10,425 10,573
Depreciation and amortization 29,730 28,486
Other taxes, principally property 14,263 13,251
Total operating expenses 419,445 431,877
Operating income 30,587 41,704
Other income:
Income from sale of subsidiary -- 13,344
Income from investments 1,639 2,667
AFUDC equity and other 8,529 2,653
Income before interest and income taxes 40,755 60,368
Interest income (220) (515)
Interest expense 18,513 17,842
Federal and state taxes on income 12,057 16,979
Net income before change in accounting 10,405 26,062
principle
Change in accounting principle (net of
of taxes) 2,259 --
Net income 12,664 26,062
Dividend requirements on preferred stock 118 288
Earnings applicable to common stock $12,546 $25,774
Average basic number of shares 13,522 13,455
outstanding
Basic earnings per share $0.93 $1.92
Average diluted number of shares 13,749 13,584
outstanding
Diluted earnings per share $0.91 $1.90
Dividends declared per common share $1.60 $1.56
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