Bay State Gas reports strong performance for first half of fiscal 1997 reflecting early benefits of restructuring effort; Increases dividend.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)--May 1, 1997-- Bay State Gas (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 $2.68 for the six months ended March 31, 1997 versus $2.82 for the same period last year. Weather was 7.6% warmer during the six-month period than the year earlier. After adjusting for weather differences, earnings per share increased to $2.84 for the six-month period versus $2.70 last year, representing a 5.2% growth rate. For the second quarter ended March 31, 1997, earnings per share were $1.70, versus $1.75 for the same period last year. Weather was 8.7% warmer during the quarter than one year ago. Adjusting for weather results in earnings per share of $1.77 versus $1.65 last year, a 7.3% growth rate. "This improved growth in underlying earnings reflects the early results of our 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). on our cost management efforts," 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. . This quarter alone showed reductions in operating and maintenance expenses of $1.7 million, of which $1.1 million resulted from a reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of expense due to a change in the accounting for off-site off-site adj. Taking place or located away from the site, as of a particular activity: an off-site waste treatment operation. off inventory, the first step in a process redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re of Bay State's inventory management operations. "And we believe Bay State has only just begun to feel the positive effects of these restructuring efforts," Singer continued, "which have included a business process redesign, productivity improvements, technological applications, and an early retirement program." "While our cost management improvements will continue to positively impact earnings for the long term, the company's restructuring efforts were also focused on accelerating revenue growth from the company's utility business segment, Local Transportation, as well as our nonregulated 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. , EnergyUSA, during fiscal 1998 and beyond," added Singer. Board of Directors Increases Common Stock Dividend for Fourteenth Consecutive Year Confidence by the Board of Directors that the corporate restructuring efforts will continue to positively impact earnings for the long term resulted in their vote today to increase the company's common stock dividend by 2.6%. The new quarterly dividend of $0.395 per share is payable June June: see month. 1, 1997 to shareholders of record on May 16, 1997 and increases the annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. dividend rate from $1.54 to $1.58 per share. This marks the fourteenth consecutive year Bay State has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a dividend increase, and the 144th year of consecutive dividend payments.
Financial Highlights
March 1997 March 1996
(In thousands except per share amounts, unaudited)
Three Months
Operating revenues $199,879 $181,336
Net income $22,934 $23,545
Earnings per share $1.70 $1.75
Average number of
common shares outstanding 13,442 13,397
Six Months
Operating revenues $336,885 $314,081
Net income $36,138 $37,923
Earnings per share $2.68 $2.82
Average number of
common shares outstanding 13,440 13,380
Twelve Months
Operating revenues $451,615 $438,648
Net income $25,286 $29,198
Earnings per share $1.86 $2.16
Average number of
common shares outstanding 13,426 13,365
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Bay State Gas Company operates in three related energy business
segments -- Local Transportation, Energy Products & Services, and
Energy Ventures. Geographically, Bay State is the largest gas
utility in New England, serving about 304,000 natural gas customers
in the states of Massachusetts, New Hampshire, and Maine. The
company's nonregulated Energy Products & Services business segment
serves about 88,000 residential, commercial, and industrial customers
throughout New England, and markets products and services under the
brand name "EnergyUSA(TM)." Bay State's Energy Ventures segment
develops business opportunities 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 ."
This release contains forward-looking statements. 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.
Investors should be aware of important factors that could have a
material impact on future results. Factors include, but are not
limited to, the effectiveness of the company's cost control and
restructuring efforts, the regulatory environment, customers'
preferences, unforeseen competition, and other uncertainties, all of
which are difficult to predict, and many of which are beyond the
company's control.
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Bay State Gas Company
Consolidated Statements of Earnings
(Unaudited, in thousands except per share amounts)
3 months ended
March 31
1997 1996
-----------------------------------------------------
Operating revenues $199,879 $181,336
Operating expenses:
Recovered natural gas costs 117,092 98,337
Operations 28,159 29,369
Maintenance 2,370 2,878
Depreciation and
amortization 7,350 6,385
Other taxes, principally
property taxes 3,696 3,521
-----------------------------------------------------
Total operating expenses 158,667 140,490
-----------------------------------------------------
Operating income 41,212 40,846
-----------------------------------------------------
Other income:
Income from investments 692 1,345
AFUDC and other 493 420
-----------------------------------------------------
Income before interest and
and income taxes 42,397 42,611
-----------------------------------------------------
Interest income (71) (86)
Interest expense 4,517 4,459
Federal and state taxes
on income 15,017 14,693
---------------------------------------------------------
Net income 22,934 23,545
Dividend requirements
on preferred stock 72 75
-----------------------------------------------------
Earnings applicable
to common stock $22,862 $23,470
-----------------------------------------------------
Average number of
shares outstanding 13,442 13,397
-----------------------------------------------------
Earnings per share $1.70 $1.75
-----------------------------------------------------
Dividends declared
per common share $0.385 $0.375
-----------------------------------------------------
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Bay State Gas Company
Consolidated Statements of Earnings
(Unaudited, in thousands except per share amounts)
6 months ended
March 31
1997 1996
-----------------------------------------------------
Operating revenues $336,885 $314,081
Operating expenses:
Recovered natural gas costs 190,577 168,667
Operations 53,866 53,282
Maintenance 5,309 5,237
Depreciation and
amortization 14,150 12,900
Other taxes, principally
property taxes 7,011 6,690
-----------------------------------------------------
Total operating expenses 270,913 246,776
-----------------------------------------------------
Operating income 65,972 67,305
-----------------------------------------------------
Other income:
Income from investments 1,423 1,622
AFUDC and other 694 821
-----------------------------------------------------
Income before interest and
and income taxes 68,089 69,748
-----------------------------------------------------
Interest income (225) (244)
Interest expense 8,876 8,527
Federal and state taxes
on income 23,300 23,542
-----------------------------------------------------
Net income 36,138 37,923
Dividend requirements
on preferred stock 144 149
-----------------------------------------------------
Earnings applicable
to common stock $35,994 $37,774
-----------------------------------------------------
Average number of
shares outstanding 13,440 13,380
-----------------------------------------------------
Earnings per share $2.68 $2.82
-----------------------------------------------------
Dividends declared
per common share $0.770 $0.750
-----------------------------------------------------
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Bay State Gas Company
Consolidated Statements of Earnings
(Unaudited, in thousands except per share amounts)
12 months ended
March 31
1997 1996
-----------------------------------------------------
Operating revenues $451,615 $438,648
Operating expenses:
Recovered natural gas costs 248,746 236,950
Operations 96,867 93,808
Maintenance 10,466 9,344
Depreciation and
amortization 27,562 25,962
Other taxes, principally
property taxes 13,062 12,071
-----------------------------------------------------
Total operating expenses 396,703 378,135
-----------------------------------------------------
Operating income 54,912 60,513
-----------------------------------------------------
Other income:
Income from investments 2,304 1,573
AFUDC and other 1,466 1,323
-----------------------------------------------------
Income before interest and
and income taxes 58,682 63,409
-----------------------------------------------------
Interest income (427) (575)
Interest expense 17,112 17,341
Federal and state taxes
on income 16,711 17,445
---------------------------------------------------------
Net income 25,286 29,198
Dividend requirements
on preferred stock 289 298
---------------------------------------------------------
Earnings applicable
to common stock $24,997 $28,900
---------------------------------------------------------
Average number of
shares outstanding 13,426 13,365
---------------------------------------------------------
Earnings per average common
share outstanding $1.86 $2.16
---------------------------------------------------------
Dividends declared
per common share $1.54 $1.50
---------------------------------------------------------
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Bay State Gas Company
Consolidated Condensed Balance Sheets
(In thousands)
March 31, Sept 30,
1997 1996 1996
-------------------------------------------------------
(Unaudited) (Audited)
Assets:
Net plant, property
and investments $560,228 $534,204 $556,846
Current assets 163,514 132,910 93,640
Deferred debits 43,173 31,382 33,767
-------------------------------------------------------
Total Assets $766,915 $698,496 $684,253
======================================================
Capitalization & Liabilities:
Capitalization $475,449 $463,378 $429,495
Long term liabilities 98,113 90,625 97,504
Current Liabilities:
Short-term debt 69,500 41,000 64,650
Other 123,853 103,493 92,604
-------------------------------------------------------
Total current
liabilities 193,353 144,493 157,254
-------------------------------------------------------
Total Capitalization
& Liabilities $766,915 $698,496 $684,253
======================================================
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Bay State Gas Company
Consolidated Statements of Capitalization
(Unaudited, in thousands)
March 31, Sept 30,
1997 1996 1996
----------------------------------------------------------
Common Stock equity:
Common stock,$3.33 1/3 par
value, authorized
36,000,000 shares;
13,441,974, 13,407,244
and 13,428,244 shares
outstanding $44,812 $44,691 $44,761
Paid-in-capital 102,044 101,379 101,784
Retained earnings 107,083 102,761 81,441
----------------------------------------------------------
Total common stock equity 253,939 248,831 227,986
----------------------------------------------------------
Cumulative preferred stock:
Non-redeemable cumulative
preferred stock 2,572 2,572 2,572
Redeemable cumulative
preferred stock 2,438 2,475 2,437
----------------------------------------------------------
Total cumulative preferred
stock 5,010 5,047 5,009
----------------------------------------------------------
Long-term debt:
Revolving credit agreements 18,000 13,000 18,000
Notes 216,500 196,500 196,500
----------------------------------------------------------
Total long-term debt 234,500 209,500 214,500
----------------------------------------------------------
Less current maturities of
long-term debt 18,000 -- 18,000
----------------------------------------------------------
Long-term debt, net 216,500 209,500 196,500
----------------------------------------------------------
Total capitalization $475,449 $463,378 $429,495
==========================================================
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Bay State Gas Company
Consolidated Condensed Statements of Cash Flows
For the six months ended March 31, 1997 and 1996
(In thousands)
1997 1996
--------------------------------------------------------
Cash flows from operating activities:
Net income $36,138 $37,923
Depreciation and amortization 14,150 12,900
Deferred income taxes 779 (348)
Investment income and AFUDC (1,817) (2,392)
Changes in operating assets
and liabilities (28,462) (50,450)
--------------------------------------------------------
Net cash provided by (used in)
operating activities 20,788 (2,367)
---------------------------------------------------------
Cash flows from investing activities:
Additions to plant (23,576) (17,231)
Proceeds from sale of rental assets -- 20,667
Other investments (855) (3,577)
--------------------------------------------------------
Net cash used in
investing activities (24,431) (141)
--------------------------------------------------------
Cash flows from financing activities:
Issuance of common stock 311 1,220
Funds generated from other external
financing 24,850 26,500
Retirements of preferred stock and
long-term debt -- (6,602)
Dividends on common and preferred stock (10,496) (10,187)
--------------------------------------------------------
Net cash provided by
financing activities 14,665 10,931
--------------------------------------------------------
Net increase in cash and
temporary cash investments 11,022 8,423
Cash and temporary cash investments at
beginning of period 4,583 2,581
--------------------------------------------------------
Cash and temporary cash investments at
end of period $15,605 $11,004
--------------------------------------------------------
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Bay State Gas Company
Consolidated Condensed Statements of Cash Flows
For the twelve months ended March 31, 1997 and 1996
(In thousands)
1997 1996
----------------------------------------------------------
Cash flows from operating activities:
Net income $25,286 $29,198
Depreciation and amortization 27,562 25,962
Deferred income taxes 7,174 (2,993)
Investment income and AFUDC (3,659) (2,662)
Changes in operating assets
and liabilities (30,530) (36,720)
----------------------------------------------------------
Net cash provided by operating
activities 25,833 12,785
----------------------------------------------------------
Cash flows from investing activities:
Additions to plant (52,586) (42,620)
Proceeds from sale of rental assets -- 20,667
Other investments (1,932) (6,163)
----------------------------------------------------------
Net cash used in investing activities (54,518) (28,116)
----------------------------------------------------------
Cash flows from financing activities:
Issuance of common stock 786 1,454
Funds generated from other external
financing 53,500 53,050
Retirements of preferred stock and
long-term debt (37) (13,672)
Dividends on common and preferred stock (20,963) (20,347)
----------------------------------------------------------
Net cash provided by
financing activities 33,286 20,485
----------------------------------------------------------
Net increase in cash and
temporary cash investments 4,601 5,154
Cash and temporary cash investments at
beginning of period 11,004 5,850
----------------------------------------------------------
Cash and temporary cash investments at
end of period $15,605 $11,004
----------------------------------------------------------
CONTACT: Bay State Gas Company Media Relations: 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 Investor Relations Investor relations The process by which the corporation communicates with its investors. : Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by Tenney Tenney may refer to: People
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