Bay State Gas reports record earnings for the fiscal year to data.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)--April 25, 1996 -- "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 ) is excited to announce record earnings of $2.82 per share for the fiscal year to date," 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, 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. for Bay State. "This is particularly exciting, given that during this same six month period we also completed a major corporate-wide restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). ." Earnings per share increased 18.5% ($0.44) for the fiscal first half of 1996 ending March 31, 1996, from the $2.38 per share reported one year ago. The major factors contributing to the $0.44 earnings increase were colder weather and sales growth, which were offset somewhat by restructuring costs. WEATHER AND SALES GROWTH ARE PRIMARY CONTRIBUTORS TO RECORD EARNINGS Weather during the first six months of fiscal 1996 was 14.1% colder than the year-earlier period, but only 4.3% colder than normal. This colder weather increased natural gas and transportation sales, but also increased bad debt and labor expense. The net effect was an increase in earnings of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.35 per share, compared to one year ago. Earnings growth also resulted from customer additions and increased gas utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be per customer. During the past 12 months, more than 5,300 customers were added. In addition, gas utilization per customer increased, particularly in the commercial-industrial sector. As a result of these effects, earnings increased by about $0.13 per share. In addition to weather and sales growth, the capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of the allowance for funds used during construction (AFUDC AFUDC Allowance for Funds Used During Construction AFUDC Accumulated Funds Used During Construction ) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the 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. Natural Gas Transmission System (PNGTS PNGTS Portland Natural Gas Transmission System (Maine) ) resulted in an earnings increase of $0.03 per share. CORPORATE RESTRUCTURING TO BENEFIT BAY STATE IN FUTURE YEARS Offsetting the positive impact of weather and sales growth on earnings were restructuring costs of approximately $0.07 per share. These expenses primarily related to consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" and employee team support costs. "We believe this restructuring effort, which involved employee-led teams from throughout the company, will benefit the company in both the near- and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ," said Singer. "The restructuring is consistent with our new strategies based on anticipating changes in the energy industry, and aggressively positioning ourselves to capture new growth opportunities which these changes create." ENERGY PRODUCTS & SERVICES EXPECTED TO GROW SIGNIFICANTLY "One of our exciting near-term near-term adj. Of, for, or involving a short period of time in the near future. initiatives is the integration and expansion of our Energy Products & Services business segment." Singer continued. "Today this segment includes a nonregulated gas marketing 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. , 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, financing services, 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. and water heater rentals." Bay State's Energy Products & Services business segment contributed $10.0 million to the company's total 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. during the fiscal year to date, and earned $908,000 in net income during that same period. Bay State expects to integrate its existing appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. insurance business and its energy management services business into its Energy Products & Services segment during the next six months. Within the next several years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time business segment is expected to grow significantly as additional products and services are offered to energy consumers throughout the Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. . 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. Singer, another initiative involves the planned participation of the company's nonregulated marketing affiliate in a two-year 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). electric 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 beginning next month. This will mark the affiliate's entrance into the electricity sales market. The pilot program will allow up to 17,000 New Hampshire electricity consumers, including residential customers, to purchase electricity from a nonregulated supplier. -0-
March 1996 March 1995
(In thousands except per-share amounts)
Three Months
Operating revenues $181,296 $174,269
Net income $23,545 $21,376
Earnings per average common share $1.75 $1.60
Avg. number of common shares
outstanding 13,398 13,339
Six Months
Operating revenues $314,021 $293,558
Net income $37,923 $31,853
Earnings per average common share $2.82 $2.38
Avg. number of common shares
outstanding 13,381 13,334
Twelve Months
Operating revenues $438,584 $407,496
Net income $29,198 $21,721
Earnings per average common share $2.16 $1.61
Avg. number of common shares
outstanding 13,365 13,262
-0- 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 297,000 customers in Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. , New Hampshire, and
Maine Maine, shipMaine, 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, 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), and Wells LNG LNG (liquefied natural gas): see under natural gas. . This release contains statements of future business plans, including growth projections, that are "forward looking statements" under the federal securities laws. The courses of action actually taken could differ materially from those planned or projected, and there is no assurance that expectations of future results will be achieved. Important factors that could cause actual results to differ materially from those we currently expect include, but are not limited to: o Unforeseen competition and the uncertainty of customer acceptance of new and existing products and services. o Unforeseen regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. and corporate commitments. -0- Bay State Gas Company Consolidated Statements of Earnings (Unaudited, in thousands except per share amounts)
3 months ended
March 31
1996 1995
-----------------------------------------------------
Operating revenues:
Local transportation $74,445 $67,618
Natural gas sales 98,337 100,180
Energy products and services 5,949 4,946
Other revenue 2,565 1,525
-----------------------------------------------------
Total operating revenues 181,296 174,269
-----------------------------------------------------
Operating expenses:
Recovered natural gas costs 98,337 100,180
Operations 29,110 23,004
Maintenance 2,878 2,306
Depreciation and
amortization 6,603 6,500
Other taxes, principally
property taxes 3,517 3,263
-----------------------------------------------------
Total operating expenses 140,445 135,253
-----------------------------------------------------
Operating income 40,851 39,016
-----------------------------------------------------
Other income (expense):
Income (loss) from
investments 481 305
Interest income and other 933 383
Interest expense (4,027) (4,361)
-----------------------------------------------------
Total other income (expense) (2,613) (3,673)
-----------------------------------------------------
Income before
income taxes 38,238 35,343
---------------------------------------------------------
Federal and state taxes
on income 14,693 13967
---------------------------------------------------------
Net income (loss) 23,545 21,376
Dividend requirements
on preferred stock 75 75
-----------------------------------------------------
Earnings (loss) applicable
to common stock $23,470 $21,301
-----------------------------------------------------
Average number of shares outstanding 13,398 13,339 ----------------------------------------------------- Earnings per share $1.75 $1.60 ----------------------------------------------------- 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)
6 months ended
March 31
1996 1995
-----------------------------------------------------
Operating revenues:
Local transportation $129,188 $115,111
Natural gas sales 168,667 166,723
Energy products and services 9,983 7,556
Other revenue 6,183 4,168
-----------------------------------------------------
Total operating revenues 314,021 293,558
-----------------------------------------------------
Operating expenses:
Recovered natural gas costs 168,667 166,723
Operations 53,226 43,817
Maintenance 5,237 4,439
Depreciation and
amortization 12,897 12,964
Other taxes, principally
property taxes 6,685 5,981
-----------------------------------------------------
Total operating expenses 246,712 233,924
-----------------------------------------------------
Operating income 67,309 59,634
-----------------------------------------------------
Other income (expense):
Income (loss) from
investments 696 477
Interest income and other 1,525 706
Interest expense (8,065) (8,292)
-----------------------------------------------------
Total other income (expense) (5,844) (7,109)
-----------------------------------------------------
Income before
income taxes 61,465 52,525
---------------------------------------------------------
Federal and state taxes
on income 23,542 20672
---------------------------------------------------------
Net income (loss) 37,923 31,853
Dividend requirements
on preferred stock 149 151
-----------------------------------------------------
Earnings (loss) applicable
to common stock $37,774 $31,702
-----------------------------------------------------
Average number of shares outstanding 13,381 13,334 ----------------------------------------------------- Earnings per share $2.82 $2.38 ----------------------------------------------------- Dividends declared per common share $0.750 $0.730 ----------------------------------------------------- -0- Bay State Gas Company Consolidated Statements of Earnings (Unaudited, in thousands except per share amounts)
12 months ended
March 31
1996 1995
-----------------------------------------------------
Operating revenues:
Local transportation $174,903 $157,813
Natural gas sales 236,950 229,470
Energy products and services 15,871 12,644
Other revenue 10,860 7,569
-----------------------------------------------------
Total operating revenues 438,584 407,496
-----------------------------------------------------
Operating expenses:
Recovered natural gas costs 236,950 229,470
Operations 93,750 83,844
Maintenance 9,344 8,566
Depreciation and
amortization 25,959 24,910
Other taxes, principally
property taxes 12,064 11,513
-----------------------------------------------------
Total operating expenses 378,067 358,303
-----------------------------------------------------
Operating income 60,517 49,193
---------------------------------------------------------
Other income (expense):
Income (loss) from
investments 472 197
Interest income and other 2,446 1,648
Interest expense (16,792) (15,489)
---------------------------------------------------------
Total other income (expense) (13,874) (13,644)
---------------------------------------------------------
Income before
income taxes 46,643 35,549
---------------------------------------------------------
Federal and state taxes
on income 17,445 13,828
Net income (loss) 29,198 21,721 Dividend requirements on preferred stock 298 306 --------------------------------------------------------- Earnings (loss) applicable to common stock $28,900 $21,415 --------------------------------------------------------- Average number of shares outstanding 13,365 13,262 --------------------------------------------------------- Earnings per average common share outstanding $2.16 $1.61 --------------------------------------------------------- Dividends declared per common share $1.50 $1.46 --------------------------------------------------------- -0- Bay State Gas Company Consolidated Condensed Balance Sheets (In thousands)
March 31, Sept 30,
1996 1995 1995
-------------------------------------------------------
(Unaudited) (Audited)
Assets:
Net plant, property and investments $534,204 $522,496 $538,541 Current assets 132,326 114,716 66,886 Deferred debits 31,382 23,734 24,928 ------------------------------------------------------- Total Assets $697,912 $660,946 $630,355 ====================================================== Capitalization & Liabilities: Capitalization 463,378 $436,743 $424,022 Long term liabilities 90,625 86,604 88,730 Current Liabilities: Short-term debt 41,000 17,950 31,500 Other 102,909 119,649 86,103 ------------------------------------------------------- Total current liabilities 143,909 137,599 117,603 ------------------------------------------------------- Total Capitalization & Liabilities $697,912 $660,946 $630,355 ====================================================== -0- Bay State Gas Company Consolidated Statements of Capitalization (Unaudited, in thousands)
March 31, Sept 30,
1996 1995 1995
-------------------------------------------------------
Common Stock equity:
Common stock,$3.33 1/3 par
value, authorized
36,000,000 shares;
13,408,594, 13,341,294
and 13,353,394 shares
outstanding $44,691 $44,471 $44,511
Paid-in-capital 101,379 100,145 100,339
Retained earnings 102,761 93,908 75,023
-----------------------------------------------------
Total common stock equity 248,831 238,524 219,873
-----------------------------------------------------
Cumulative preferred stock:
Non-redeemable cumulative
preferred stock 2,572 2,572 2,572
Redeemable cumulative
preferred stock 2,475 2,647 2,577
-----------------------------------------------------
Total cumulative preferred
stock 5,047 5,219 5,149
-----------------------------------------------------
Long-term debt: Revolving credit agreements 13,000 20,000 6,000 Notes 196,500 173,000 193,000 ----------------------------------------------------- Total long-term debt 209,500 193,000 199,000 ----------------------------------------------------- Total capitalization $463,378 $436,743 $424,022 =================================================== -0- Bay State Gas Company Consolidated Condensed Statements of Cash Flows For the six months ended March 31, 1996 and 1995 (In thousands)
1996 1995
-----------------------------------------------------
Cash flows from operating activities:
Net income $37,923 $31,853 Depreciation and amortization 12,897 12,964 Deferred income taxes (348) 4,258 Dividends from investemnt in MASSPOWER 213 -- Changes in operating assets and liabilities (53,795) 7,178 ----------------------------------------------------- Net cash provided by (used in) operating activities (3,110) 56,253 ----------------------------------------------------- Cash flows from investing activities: Additions to plant (16,685) (26,886) Proceeds from sale of rental assets 20,667 -- Other investments (3,558) (905) ----------------------------------------------------- Net cash provided by (used in) investing activities 424 (27,791) ----------------------------------------------------- Cash flows from financing activities: Issuance of common stock 1,220 1,169 Funds generated from other external financing 26,500 (17,800) Retirements of preferred stock and long-term debt (6,602) (74) Dividends on common and preferred stock (10,187) (9,887) ----------------------------------------------------- Net cash provided by (used in) financing activities 10,931 (26,592) ----------------------------------------------------- Net increase (decrease) in cash and temporary cash investments 8,245 1,870 Cash and temporary cash investments at beginning of period 2,759 3,980 ----------------------------------------------------- Cash and temporary cash investments at end of period $11,004 $5,850 ----------------------------------------------------- -0- Bay State Gas Company Consolidated Condensed Statements of Cash Flows For the twelve months ended March 31, 1996 and 1995 (In thousands)
1996 1995
-----------------------------------------------------
Cash flows from operating activities:
Net income $29,198 $21,721 Depreciation and amortization 25,959 24,910 Deferred income taxes (2,993) 2,918 Dividends from investemnt in MASSPOWER 1,072 -- Changes in operating assets and liabilities (40,848) 38,351 ----------------------------------------------------- Net cash provided by operating activities 12,388 87,900 ----------------------------------------------------- Cash flows from investing activities: Additions to plant (41,190) (56,119) Proceeds from sale of rental assets 20,667 -- Other investments (7,196) (1,479) ----------------------------------------------------- Net cash used in investing activities (27,719) (57,598) ----------------------------------------------------- Cash flows from financing activities: Issuance of common stock 1,454 6,200 Funds generated from other external financing 53,050 (8,400) Retirements of preferred stock and long-term debt (13,672) (6,126) Dividends on common and preferred stock (20,347) (19,662) ----------------------------------------------------- Net cash provided by (used in) financing activities 20,485 (27,988) ----------------------------------------------------- Net increase (decrease) in cash and temporary cash investments 5,154 2,314 Cash and temporary cash investments at beginning of period 5,850 3,536 ----------------------------------------------------- Cash and temporary cash investments at end of period $11,004 $5,850 ----------------------------------------------------- CONTACT: 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. Bay State Gas Company 508/836-7370 |
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