Bay State Gas reports increased earnings for fiscal first quarter and preliminary results of its change process.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.--(BUSINESS WIRE)--Jan. 23, 1996--Bay State Gas Co. (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 earnings per share of $1.07 for the fiscal first quarter ended December December: see month. 31, 1995, a 37% increase from the $0.78 reported for the year-ago quarter. Weather, which was 18% colder than the year-earlier period, increased earnings per share by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.23. Had weather been normal during the year-earlier quarter, earnings for the most recent fiscal first quarter would have increased by about $0.10. "The fiscal first quarter actions described below provided for an improvement in first quarter earnings, and also give strong evidence of the solid financial base that supports our accelerated growth process," said Roger A. Young, President and Chief Executive Officer for Bay State Gas. The addition of 6,100 customers during the past 12 months, along with colder weather, contributed to higher earnings for the most recent quarter and 12-month period. Earnings for the 12 months ended December 31 increased by 16% over the prior period to $2.00 per share. Sale and Lease-Back Sale and lease-back Sale of an existing asset to a financial institution that then leases it back to the user. Related: Lease. Arrangement Generates Significant Capital Bay State formed a nonregulated subsidiary, Energy Asset Funding, during the fiscal first quarter. The purpose of the subsidiary is to manage water heater and conversion burner A drive that writes write-once optical discs such as CD-Rs and DVD-Rs. A "burner" implies a one-time recording, but the term is erroneously used to refer to drives that "write" to re-recordable CD-RW and DVD-RW/+RW media as well. See burn, CD-R and DVD-R. assets, which are rented to Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. customers. Through a sale and lease-back arrangement with
a third-party financing company, $20.7 million in cash has been
generated for redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. into higher growth investment opportunities. Approval of Demand-Side The Demand side is a term used in economics to refer to a number of things:
The company has filed with the Massachusetts Department of Public Utilities requesting a review of its residential demand-side management program results, which are based on the actual energy savings that have resulted from Bay State's conservation and load management efforts since April 1993. The company has booked $436,000, the equivalent of $0.02 per share, during the fiscal first quarter. This is the minimum amount Bay State expects regulators to allow it to collect from residential customers beginning April 1, 1996. The approved amount should represent a performance bonus based on achieving a two-year preapproved goal, lost net revenues resulting from conservation programs, and carrying costs Carrying costs Costs that increase with increases in the level of investment in current assets. . Within the next few months, the company plans to file for the recovery of a similar goal achievement bonus and costs associated with its commercial-industrial demand-side management efforts. Company Reaches Agreement to Extend Natural Gas Pipeline Lease Bay State's pipeline subsidiary, Granite granite, coarse-grained igneous rock of even texture and light color, composed chiefly of quartz and feldspars. It usually contains small quantities of mica or hornblende, and minor accessory minerals may be present. State Gas Transmission, Inc., and Portland Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. Pipe Line Corporation reached an agreement to extend for 13 months a lease on a converted crude oil pipeline that currently transports natural gas into 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. . The agreement, which is subject to approval by the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ), will extend the lease from March 31, 1997 to April 30, 1998, after which Portland Pipe Line will return the pipeline to crude oil service. This lease extension will allow Bay State to continue to provide economic and reliable gas service until its new facilities are on line in 1998. Granite State has invested in two new projects that will replace and expand the gas transportation capacity that was available on the converted crude oil line. These include a US$44 million liquefied natural gas liquefied natural gas: see under natural gas. Liquefied natural gas (LNG) A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. (LNG LNG (liquefied natural gas): see under natural gas. ) storage facility in Wells, Maine Wells is a town in York County, Maine, United States. The population was 9,400 at the 2000 census. Wells Beach is a popular summer destination. History The Abenaki Indians called the area Webhannet, meaning "at the clear stream," a reference to the Webhanet River. and the proposed Portland Natural Gas Transmission System (PNGTS PNGTS Portland Natural Gas Transmission System (Maine) ), a US$230 million, 250-mile pipeline that will bring an expected 175 million cubic feet per day of natural gas into New England from Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . New Large Customers to Contribute to Future Revenues Bay State is concluding an innovative arrangement, whereby it has agreed to purchase and install an industrial energy consumer's gas equipment in return for a minimal gas use guarantee. Cascade A connected series of devices or images. It often implies that the second and subsequent device takes over after the previous one is used up. For example, cascading tapes in a dual-tape backup system means the second tape is written after the first one is full. Diamonds of Palmer, Massachusetts Palmer is a town in Hampden County, Massachusetts, United States. The population was 12,497 at the 2000 census. The estimated 2005 population is 12,925. For geographic and demographic information on specific parts of the town of Palmer, please see the articles on , located off a major gas main extension completed several years ago, recently signed a letter of intent to use a minimum of 150,000 MMBtu of gas annually. Bay State expects equipment conversions to be completed within the next six months, with gas consumption beginning soon thereafter. Bay State Begins Development of a Massachusetts Residential Unbundling A regulatory requirement that enables a competing service provider to purchase parts of the incumbent local exchange carrier's network in order to provide service to its customers. See ILEC. Pilot Program Bay State received approval in December to implement a residential pilot program later this year, and has already begun to plan program development. This program will allow participating households to buy "unbundled" transportation service from Bay State, while providing these customers the choice to select gas supplies from unregulated Adj. 1. unregulated - not regulated; not subject to rule or discipline; "unregulated off-shore fishing" regulated - controlled or governed according to rule or principle or law; "well regulated industries"; "houses with regulated temperature" 2. suppliers. "This residential unbundling pilot program is the cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to of our initiative to accelerate the 'unbundling' process, which will result in a more competitive retail gas industry and greater customer choice," 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 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. . "Increased competition should mean opportunity for progressive companies like Bay State that will grow far beyond that of a traditional utility and become a much different energy product and service company." Company Reports Preliminary Results on Accelerated Transition Process "In December, we began a three-month 'Accelerated Transition' process with two clear objectives: (1) to identify dramatic growth initiatives, and the necessary changes to achieve competitive advantage; and (2) to begin to achieve accelerated real change," said Singer. "Although we will not be announcing formal results until March or April," Singer continued, "we can share several preliminary indications at this point of the types of new growth opportunities that we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall be pursuing: o Significant expansion of our Energy Products & Services business. We envision significant investment in several customer interaction models (marketing call center, regional offices, possible retail alliance, etc.), which will significantly expand our presence both inside and outside of our current service territories. The focus of our strategy will be on razor-sharp Adj. 1. razor-sharp - very clearly delineated; "razor-sharp definition" distinct - easy to perceive; especially clearly outlined; "a distinct flavor"; "a distinct odor of turpentine"; "a distinct outline"; "the ship appeared as a distinct silhouette"; "distinct target marketing. o In-sourcing and shared services shared services, n.pl the administrative, clinical, or other service functions that are common to two or more hospitals or their health care facilities and used jointly or cooperatively by them. to other utilities (gas, electric, etc.). We have already begun senior level discussions with other New England utilities regarding Bay State providing services, such as dispatching, meter meter, unit of measure meter, abbr. m, fundamental unit of length in the metric system. The meter was originally defined as 1/10,000,000 of the distance between the equator and either pole; however, the original survey was inaccurate and the meter was later reading, billing and payments, call center functions, etc. We believe the opportunities to provide these services will leverage our strong information systems investments and skills. o Residential unbundling pilot program. As discussed above, we recently announced a residential unbundling pilot program to be implemented during 1996. Consistent with our interest in promoting competition on our system and providing more choices for customers, we are expanding our program to draw significant industry support and involvement." "We believe our three-month Accelerated Transition process will lead to dramatic real change," added Singer. "We began the process by setting aggressive goals for defining growth, innovation, and new skills and behaviors. To achieve these goals we are executing a rigorous fact-based process, and are achieving broad involvement with all of our key stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. (employees, regulators, investors, and customers). Through involvement in the process, all of our stakeholders appear to be in strong support of our Strategic Vision." Financial Highlights
Dec. 1995 Dec. 1994
(In thousands except per share amounts.)
Three Months Operating revenues $132,725 $119,289 Net income $14,378 $10,477 Earnings per share $1.07 $0.78 Average number of common shares outstanding 13,363 13,331 Twelve Months Operating revenues $431,557 $443,249 Net income $27,029 $23,164 Earnings per share $2.00 $1.73 Average number of common shares outstanding 13,350 13,184 -0- Bay State Gas Company Consolidated Statements of Earnings (Unaudited, in thousands except per share amounts)
3 months ended
December 31
1995 1994
-----------------------------------------------------
Operating revenues:
Local transportation $54,648 $47,437
Energy products and services:
Natural gas sales 70,425 66,599
Other energy products and
services 7,652 5,253
-----------------------------------------------------
Total energy products and
services 78,077 71,852
-----------------------------------------------------
Total operating revenues 132,725 119,289
-----------------------------------------------------
Operating expenses:
Recovered natural gas costs 70,425 66,599
Operations 24,021 20,756
Maintenance 2,360 2,133
Depreciation and
amortization 6,294 6,465
Other taxes, principally
property taxes 3,167 2,717
-----------------------------------------------------
Total operating expenses 106,267 98,670
-----------------------------------------------------
Operating income 26,458 20,619
-----------------------------------------------------
Other income (expense):
Income (loss) from
investments in energy
ventures 215 171
Interest income and other 592 324
Interest expense (4,037) (3,931)
-----------------------------------------------------
Total other income (expense) (3,230) (3,436)
-----------------------------------------------------
Income before
income taxes 23,228 17,183
---------------------------------------------------------
Federal and state taxes
on income 8,850 6706
Net income (loss) 14,378 10,477 Dividend requirements on preferred stock 74 76 ----------------------------------------------------- Earnings (loss) applicable to common stock $14,304 $10,401 ----------------------------------------------------- Average number of shares outstanding 13,363 13,331 ----------------------------------------------------- Earnings per share $1.07 $0.78 ----------------------------------------------------- Dividends declared per common share $0.375 0.365 ----------------------------------------------------- -0- Bay State Gas Company Consolidated Statements of Earnings (Unaudited, in thousands except per share amounts)
12 months ended
December 31
1995 1994
-----------------------------------------------------
Operating revenues:
Local transportation $167,773 $162,559
Energy products and services:
Natural gas sales 239,096 260,468
Other energy products and
services 24,688 20,222
-----------------------------------------------------
Total energy products and
services 263,784 280,690
-----------------------------------------------------
Total operating revenues 431,557 443,249
-----------------------------------------------------
Operating expenses:
Recovered natural gas costs 239,096 260,468
Operations 87,341 87,135
Maintenance 8,772 8,774
Depreciation and
amortization 25,856 24,477
Other taxes, principally
property taxes 11,810 11,456
-----------------------------------------------------
Total operating expenses 372,875 392,310
-----------------------------------------------------
Operating income 58,682 50,939
---------------------------------------------------------
Other income (expense):
Income (loss) from
investments in energy
ventures 296 188
Interest income and other 1,895 1,932
Interest expense (17,125) (15,323)
---------------------------------------------------------
Total other income (expense) (14,934) (13,203)
---------------------------------------------------------
Income before
income taxes 43,748 37,736
---------------------------------------------------------
Federal and state taxes
on income 16,719 14,572
Net income (loss) 27,029 23,164 Dividend requirements on preferred stock 297 308 --------------------------------------------------------- Earnings (loss) applicable to common stock $26,732 $22,856 --------------------------------------------------------- Average number of shares outstanding 13,350 13,184 --------------------------------------------------------- Earnings per average common share outstanding $2.00 $1.73 --------------------------------------------------------- Dividends declared per common share $1.49 $1.45 --------------------------------------------------------- -0- Bay State Gas Company Consolidated Condensed Balance Sheets (In thousands)
December 31, Sept 30,
1995 1994 1995
-------------------------------------------------------
(Unaudited) (Audited)
Assets:
Net plant, property and investments $529,995 $519,677 $538,541 Current assets 104,231 101,337 60,886 Deferred debits 27,972 23,369 24,928 ------------------------------------------------------- Total Assets $662,198 $644,383 $624,355 ====================================================== Capitalization & Liabilities: Capitalization 542,923 $506,242 $512,752 Long term liabilities 93,707 85,931 88,730 Current Liabilities: Short-term debt 33,950 53,625 31,500 Other 85,325 84,516 86,103 ------------------------------------------------------- Total current liabilities 119,275 138,141 117,603 ------------------------------------------------------- Total Capitalization & Liabilities $662,198 $644,383 $630,355 ====================================================== -0- Bay State Gas Company Consolidated Statements of Capitalization (Unaudited, in thousands)
December 31, Sept 30,
1995 1994 1995
----------------------------------------------------------
Common Stock equity:
Common stock,$3.33 1/3 par
value, authorized
36,000,000 shares;
13,350,394, 13,183,511
and 13,290,491 shares
outstanding $44,558 $44,459 $44,511
Paid-in-capital 100,695 100,083 100,339
Retained earnings 84,319 77,476 75,023
-----------------------------------------------------------
Total common stock equity 229,572 222,018 219,873
-----------------------------------------------------------
Cumulative preferred stock:
Non-redeemable cumulative
preferred stock 2,572 2,572 2,572
Redeemable cumulative
preferred stock 2,572 2,721 2,577
----------------------------------------------------------
Total cumulative preferred
stock 5,144 5,293 5,149
-----------------------------------------------------------
Long-term debt: Revolving credit agreements 13,000 20,000 6,000 Notes 201,500 173,000 193,000 ---------------------------------------------------------- Total long-term debt 214,500 193,000 199,000 ---------------------------------------------------------- Total capitalization $449,216 $420,311 $424,022 ========================================================== -0- Bay State Gas Company Consolidated Condensed Statements of Cash Flows For the three months ended December 31, 1995 and 1994 (In thousands)
1995 1994
----------------------------------------------------------
Cash flows from operating activities:
Net income $14,378 $10,477 Depreciation and amortization 6,294 6,465 Deferred income taxes (284) 3,872 Dividends from investemnt in MASSPOWER -- -- Changes in operating assets and liabilities (39,822) (15,910) ---------------------------------------------------------- Net cash provided by operating activities (19,434) 4,904 ---------------------------------------------------------- Cash flows from investing activities: Additions to plant (10,710) (18,515) Proceeds from sale of rental assets 20,667 -- Investments in energy ventures (1,363) (175) ----------------------------------------------------------- Net cash used in investing activities 8,594 (18,690) ----------------------------------------------------------- Cash flows from financing activities: Issuance of common stock 403 1,095 Funds generated from other external financing 19,450 17,875 Retirements of preferred stock and long-term debt (1,505) -- Dividends on common and preferred stock (5,085) (4,944) ----------------------------------------------------------- Net cash used in financing activities 13,263 14,026 ---------------------------------------------------------- Net increase (decrease) in cash and temporary cash investments 2,423 240 Cash and temporary cash investments at beginning of period 2,759 3,980 ---------------------------------------------------------- Cash and temporary cash investments at end of period $5,182 $4,220 ---------------------------------------------------------- -0- Bay State Gas Company Consolidated Condensed Statements of Cash Flows For the twelve months ended December 31, 1995 and 1994 (In thousands)
1995 1994
----------------------------------------------------------
Cash flows from operating activities:
Net income $27,029 $23,164 Depreciation and amortization 25,856 24,477 Deferred income taxes 2,750 2,918 Dividends from investemnt in MASSPOWER 859 -- Changes in operating assets and liabilities 3,793 23,089 ----------------------------------------------------- Net cash provided by operating activities 60,287 73,648 ----------------------------------------------------- Cash flows from investing activities: Additions to plant (56,417) (55,682) Proceeds from sale of rental assets 20,667 -- Investments in energy ventures (5,774) (589) ---------------------------------------------------------- Net cash used in investing activities (41,524) (56,271) ----------------------------------------------------------- Cash flows from financing activities: Issuance of common stock 711 8,417 Funds generated from other external financing 10,325 9,625 Retirements of preferred stock and long-term debt (8,649) (14,099) Dividends on common and preferred stock (20,188) (19,418) ----------------------------------------------------------- Net cash used in financing activities (17,801) (15,475) ---------------------------------------------------------- Net increase (decrease) in cash and temporary cash investments 962 1,902 Cash and temporary cash investments at beginning of period 4,220 2,318 ---------------------------------------------------------- Cash and temporary cash investments at end of period $5,182 $4,220 ---------------------------------------------------------- Bay State Gas Company operates in three distinct, but related energy business segments -- Local Transportation, Energy Products & Services, and Energy Ventures. As New England's largest independent gas distributor, Bay State's Local Transportation business serves 296 ,000 customers in 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 Energy Products & Services segment offers energy commodities (such as natural gas, 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;. , etc.) and related equipment and services. In addition, the company invests in Energy Ventures, which today include MASSPOWER, the Portland Natural Gas Transmission System (PNGTS), Wells LNG, and KBC KBC Kenya Broadcasting Corporation KBC Kaun Banega Crorepati (Indian TV show) KBC Koahnic Broadcast Corporation (Anchorage, Alaska) KBC Keyboard Connector KBC Kill Before Capture Energy Services. CONTACT: Bay State Gas Company, Westborough 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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