Bay State Gas corrects and replaces previous announcement.--(BUSINESS WIRE)-- Bay State Gas reports fiscal first quarter earnings, surpasses 300,000 customer milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. , and plans expansion of "EnergyUSA" WESTBOROUGH Westborough, town (1990 pop. 14,133), Worcester co., E central Mass., on the Assabet River; inc. 1717. The town, which is largely residential, produces electronic components, tools, dyes, and other products. , Mass.--Jan. 22, 1997--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 ) announced today its first quarter results, achievement of a 300,000 customer milestone, comments on its financial expectations for fiscal 1997, and its plans for expanding its EnergyUSA(TM) affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. . Bay State Reports Financial Results and Growth Bay State reported earnings per share of $0.98 for the fiscal first quarter ended December December: see month. 31, 1996, compared to $1.07 reported for the year-ago quarter. Weather, which was 6% warmer than the year-earlier period, decreased earnings per share by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.12. The negative impact of warm weather on earnings was partially offset by the addition of more than 6,300 customers within the past 12-month period, which enabled Bay State to exceed the 300,000 customer mark. Earnings per share for the 12 months ended December 31, 1996 were $1.91, compared to $2.00 for the prior period. Given first quarter results, weather to date, and the absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. of start-up Start-up The earliest stage of a new business venture. and development costs for the company's nonregulated energy products and services affiliate, EnergyUSA, Bay State expects earnings for the fiscal year to be somewhat lower than the current consensus estimate of $2.00 per share (excluding the possibility of the sale of its MASSPOWER interest). Plans Continue for Expansion of EnergyUSA Existing residential product lines (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;. sales, heating system repair insurance, water heater leasing, and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ) are currently profitable and growing, while additional residential products are under development. Resources have also been dedicated to the expanding commercial/industrial services business. Revenues in this business are expected to grow dramatically over the remainder of fiscal 1997. "We project EnergyUSA's revenues, in aggregate, to grow significantly from last year's $17 million, with start-up and development costs incurred in fiscal 1997 ensuring earnings growth in fiscal 1998 and beyond," said Joel Joel, book of the Bible Joel, prophetic book of the Bible. It is a collection of the oracles of an otherwise unknown prophet, dated variously from the 9th to the 3d cent. B.C., though a date in c.400 B.C. is likely. L. Singer, Bay State's 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. . An acquisition strategy to enhance these product lines is an integral part of the company's overall growth strategy. Toward that end, Bay State expects to file this week with the Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. Department of Public Utilities for authorization The right or permission to use a system resource; the process of granting access. See access control. to invest up to an
additional $50 million for acquisitions through either cash or common
stock. This investment is an effort to fund the future growth of
EnergyUSA through the acquisition of companies it believes will provide
strong strategic benefits for this nonregulated business segment.
Future acquisitions will be made after considering prudency Pru´den`cyn. 1. Prudence. , due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , and an appropriate risk-adjusted rate of return. Acquisition Strategy Reflected in EnergyUSA's Plans to Merge See mail merge and concatenate. with SAVAGE-ALERT, Inc. On January January: see month. 8, Bay State announced the signing of a letter of intent to acquire SAVAGE-ALERT, Inc. and to merge the company with Bay State's affiliate, EnergyUSA. SAVAGE-ALERT is an energy design, engineering, and mechanical contracting firm currently serving customers from coast to coast and generating annual revenues of approximately $13 million. Under the terms of the letter of intent, Bay State will acquire closely-held adj. 1. owned by a relatively few shareholders; - of business organizations; as, a closely-held corporation s>. Adj. 1. closely-held - owned by a relatively few shareholders; "a closely-held corporation" SAVAGE-ALERT through a stock swap A stock swap also known as a share swap or equity swap is a business takeover in which the acquiring company uses its own stock to pay for the acquired company. of approximately 150,000 newly-issued Bay State Gas shares. The two entities will operate under a joint-venture agreement until the merger is finalized See finalization. within the next several months. "The acquisition of SAVAGE-ALERT represents a major step in Bay State's plans for dramatically growing our nonregulated retail energy services business," said Singer. "This acquisition effectively doubles the size of EnergyUSA, and more importantly, it brings significant technical skills and established distribution channels for serving customers across the U.S." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. EnergyUSA's president William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack L. Glascock, "the merger of SAVAGE-ALERT and EnergyUSA will create a combined entity that can provide total energy services to commercial, industrial, and institutional customers from coast to coast. I see the synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. of this merger coming from the combination of EnergyUSA's capabilities in marketing and energy commodity management with SAVAGE-ALERT's capabilities in engineering and project management. We've we've Contraction of we have. we've have worked closely with SAVAGE-ALERT over the last several years, and know we share much of the same culture and values for anticipating customer needs and providing technology-based solutions." The new combined entity will report to Glascock. According to SAVAGE-ALERT's president, John McGuire John McGuire is the name of:
The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the gas and electric utility industry; the emergence of new end-use energy technologies; and the continuing trend of businesses to outsource outsource verb To assign specific work to a 3rd party for a specific length of time at an set price and service level Managed care To use outside labor to perform functions–billing and collections, accounting, janitorial services, ER their energy management operations." -0-
Financial Highlights
Dec. 1996 Dec. 1995
(In thousands except per share amounts.)
Three Months
Operating revenues $137,000 $132,740
Net income $13,204 $14,378
Earnings per share $0.98 $1.07
Average number of
common shares outstanding 13,437 13,363
Twelve Months
Operating revenues $433,043 $431,572
Net income $25,897 $27,029
Earnings per share $1.91 $2.00
Average number of
common shares outstanding 13,415 13,350
-0- Bay State Gas Company operates in three distinct, but related energy business segments -- Local Transportation, Energy Products & Services, and Energy Ventures. Bay State's Local Transportation business serves almost 302,000 natural gas customers in 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. , and geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge , is the largest gas utility in New England, serving the states of Massachusetts, 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). , and 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. . The company's nonregulated Energy Products & Services segment currently offers energy commodities and related equipment and services to approximately 88,000 customers throughout New England under the brand name, "EnergyUSA." Bay State's Energy Ventures segment develops businesses and projects which are closely related to the company's core businesses. Additional information about Bay State is available on the World Wide Web at "http://www.bgc.com/bgc/ ." -0-
Bay State Gas Company
Consolidated Statements of Earnings
(Unaudited, in thousands except per share amounts)
3 months ended
December 31
1996 1995
-----------------------------------------------------
Operating revenues $137,000 $132,740
Operating expenses:
Recovered natural gas costs 73,485 70,330
Operations 25,700 23,908
Maintenance 2,940 2,360
Depreciation and
amortization 6,801 6,514
Other taxes, principally
property taxes 3,315 3,169
-----------------------------------------------------
Total operating expenses 112,241 106,281
-----------------------------------------------------
Operating income 24,759 26,459
-----------------------------------------------------
Other income:
Income (loss) from
investments 458 215
AFUDC and other 340 433
-----------------------------------------------------
Income before interest and
and income taxes 25,557 27,107
-----------------------------------------------------
Interest income (153) (158)
Interest expense 4,223 4,037
Federal and state taxes
on income 8,283 8,850
---------------------------------------------------------
Net income (loss) 13,204 14,378
Dividend requirements
on preferred stock 73 74
-----------------------------------------------------
Earnings (loss) applicable
to common stock $13,131 $14,304
-----------------------------------------------------
Average number of
shares outstanding 13,437 13,363
-----------------------------------------------------
Earnings per share $0.98 $1.07
-----------------------------------------------------
Dividends declared
per common share $0.385 0.375
-----------------------------------------------------
-0-
Bay State Gas Company
Consolidated Statements of Earnings
(Unaudited, in thousands except per share amounts)
12 months ended
December 31
1996 1995
-----------------------------------------------------
Operating revenues $433,043 $431,572
Operating expenses:
Recovered natural gas costs 229,991 238,793
Operations 98,056 87,435
Maintenance 10,975 8,772
Depreciation and
amortization 26,597 26,076
Other taxes, principally
property taxes 12,887 11,814
-----------------------------------------------------
Total operating expenses 378,506 372,890
-----------------------------------------------------
Operating income 54,537 58,682
-----------------------------------------------------
Other income:
Income (loss) from
investments 1,347 296
AFUDC and other 2,207 1,271
-----------------------------------------------------
Income before interest and
and income taxes 58,091 60,249
-----------------------------------------------------
Interest income (442) (624)
Interest expense 16,249 17,125
Federal and state taxes
on income 16,387 16,719
---------------------------------------------------------
Net income 25,987 27 029
Dividend requirements
on preferred stock 293 297
---------------------------------------------------------
Earnings applicable
to common stock $25,604 $26,732
---------------------------------------------------------
Average number of
shares outstanding 13,415 13,350
---------------------------------------------------------
Earnings per average common
share outstanding $1.91 $2.00
---------------------------------------------------------
Dividends declared
per common share $1.53 $1.49
---------------------------------------------------------
-0-
Bay State Gas Company
Consolidated Condensed Balance Sheets
(In thousands)
December 31, Sept 30,
1996 1995 1996
-------------------------------------------------------
(Unaudited) (Audited)
Assets:
Net plant, property
and investments $559,408 $529,995 $556,846
Current assets 154,467 107,689 93,640
Deferred debits 42,214 27,972 33,767
-------------------------------------------------------
Total Assets $756,089 $665,656 $684,253
======================================================
Capitalization & Liabilities:
Capitalization 457,807 $449,216 $429,495
Long term liabilities 98,347 93,707 97,504
Current Liabilities:
Short-term debt 86,500 33,950 64,650
Other 113,435 88,783 92,604
-------------------------------------------------------
Total current
liabilities 199,935 122,733 157,254
-------------------------------------------------------
Total Capitalization
& Liabilities $756,089 $665,656 $684,253
======================================================
-0-
Bay State Gas Company
Consolidated Statements of Capitalization
(Unaudited, in thousands)
December 31, Sept 30,
1996 1995 1996
-------------------------------------------------------
Common Stock equity:
Common stock,$3.33 1/3 par
value, authorized
36,000,000 shares;
13,443,594, 13,377,394
and 13,428,244 shares
outstanding $44,812 $44,558 $44,761
Paid-in-capital 102,089 100,695 101,784
Retained earnings 89,396 84,319 81,441
-----------------------------------------------------
Total common stock equity 236,297 229,572 227,986
-----------------------------------------------------
Cumulative preferred stock:
Non-redeemable cumulative
preferred stock 2,572 2,572 2,572
Redeemable cumulative
preferred stock 2,438 2,572 2,437
-----------------------------------------------------
Total cumulative preferred
stock 5,010 5,144 5,009
-----------------------------------------------------
Long-term debt:
Revolving credit agreements 18,000 13,000 18,000
Notes 216,500 201,500 196,500
-----------------------------------------------------
Total long-term debt 234,500 214,500 214,500
-----------------------------------------------------
Less current maturities of
long-term debt 18,000 -- 18,000
-----------------------------------------------------
Long-term debt, net 216,500 214,500 196,500
-----------------------------------------------------
Total capitalization $475,807 $449,216 $429,495
===================================================
-0-
Bay State Gas Company
Consolidated Condensed Statements of Cash Flows
For the three months ended December 31, 1996 and 1995
(In thousands)
1996 1995
-----------------------------------------------------
Cash flows from operating activities:
Net income $13,204 $14,378
Depreciation and amortization 6,801 6,514
Deferred income taxes 1,744 284
Investment income and AFUDC (824) (568)
Changes in operating assets
and liabilities (39,470) (40,396)
-----------------------------------------------------
Net cash used in
operating activities (18,545) (19,788)
-----------------------------------------------------
Cash flows from investing activities:
Additions to plant (14,910) (10,710)
Proceeds from sale of rental assets -- 20,667
Other investments (933) (1,009)
-----------------------------------------------------
Net cash provided by (used in)
investing activities (15,843) 8,948
-----------------------------------------------------
Cash flows from financing activities:
Issuance of common stock 356 403
Funds generated from other external
financing 41,850 19,450
Retirements of preferred stock and
long-term debt -- (1,505)
Dividends on common and preferred stock (5,248) (5,085)
-----------------------------------------------------
Net cash provided by
financing activities 36,958 13,263
-----------------------------------------------------
Net increase (decrease) in cash and
temporary cash investments 2,570 2,423
Cash and temporary cash investments at
beginning of period 4,583 2,581
-----------------------------------------------------
Cash and temporary cash investments at
end of period $7,153 $5,004
-----------------------------------------------------
-0-
Bay State Gas Company
Consolidated Condensed Statements of Cash Flows
For the twelve months ended December 31, 1996 and 1995
(In thousands)
1996 1995
-----------------------------------------------------
Cash flows from operating activities:
Net income $25,897 $27,029
Depreciation and amortization 26,597 26,076
Deferred income taxes 8,203 2,750
Dividends from investemnt in MASSPOWER (4,242) (875)
Changes in operating assets
and liabilities (53,024) (7,537)
-----------------------------------------------------
Net cash provided by operating
activities 3,431 47,443
-----------------------------------------------------
Cash flows from investing activities:
Additions to plant (49,957) (45,470)
Proceeds from sale of rental assets -- 20,667
Other investments (4,572) (4,055)
-----------------------------------------------------
Net cash used in investing activities (54,529) (28,858)
-----------------------------------------------------
Cash flows from financing activities:
Issuance of common stock 1,648 711
Funds generated from other external
financing 77,550 10,325
Retirements of preferred stock and
long-term debt (5,134) (8,649)
Dividends on common and preferred stock (20,817) (20,188)
-----------------------------------------------------
Net cash provided by (used in)
financing activities 53,247 (17,801)
-----------------------------------------------------
Net increase (decrease) in cash and
temporary cash investments 2,149 784
Cash and temporary cash investments at
beginning of period 5,004 4,220
-----------------------------------------------------
Cash and temporary cash investments at
end of period $7,153 $5,004
-----------------------------------------------------
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 on 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 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. environment, consumers' preferences, unforeseen competition, and other uncertainties, all of which are difficult to predict, and many of which are beyond the company's control. CONTACT: Bay State Gas Carol Churchill Churchill. 1 River, c.600 mi (970 km) long, issuing as the Ashuanipi River from Ashuanipi Lake, SW Labrador, N.L., Canada, and flowing in an arc north, then southeast through a series of lakes to Churchill Falls and McLean Canyon. , 508/836-7370 |
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