BayCorp Reports First Quarter 2004 Operating Results.Business Editors PORTSMOUTH, N.H.--(BUSINESS WIRE)--April 23, 2004 BayCorp Holdings, Ltd. ("BayCorp") (AMEX AMEX See: American Stock Exchange : MWH See watt-hour. ) announced today its operating results for the first quarter ended March 31, 2004. BayCorp reported a net loss of $2,098,000, or approximately $3.33 per share, for the first quarter of 2004 as compared to a net loss of $1,762,000, or approximately $0.22 per share, for the first quarter of 2003. The decrease in earnings in the first quarter of 2004 as compared to the first quarter of 2003 was primarily attributable to a higher unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on the mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. of the Company's firm forward 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. power sales contract Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. . The Company recorded a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for an unrealized loss on the mark-to-market of this power contract and recorded the amortization of the deferred gain on this contract for a total net unrealized loss of approximately $1,637,000 in the first quarter of 2004 as compared to a net unrealized loss of approximately $1,083,000 in the first quarter of 2003. The mark-to-market value of this long-term contract is based on current projections of power prices over the life of the contract. Forward power prices increased during 2003 and have continued to rise in the first quarter of 2004 primarily due to increases in the forward price of natural gas. Power generating plants that use natural gas as a fuel source are increasingly on the margin and therefore setting the forward price of power 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. Power Pool ("NEPOOL NEPOOL New England Power Pool "). Accordingly, the price of power in NEPOOL is highly dependent on the price of natural gas. 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. for the first quarter of 2004 were approximately $1,034,000 as compared to approximately $991,000 in the first quarter of 2003. These revenues were primarily from the Company's long-term power sales contract. The Company purchases power to satisfy its power supply obligations. To satisfy its obligations under its long-term power sales contract, the Company purchased power for approximately $1,131,000 in the first quarter of 2004 and approximately $1,195,000 in the first quarter of 2003. The Company has undertaken numerous cost savings measures that reduced administrative and general expenses in the first quarter of 2004 as compared to the first quarter of 2003. The Company reduced administrative and general expenses in the first quarter of 2004 by approximately $341,000, or approximately 45%, to $415,000 in the first quarter of 2004 as compared to $756,000 in the first quarter of 2003. Other income for the first quarter of 2004 was approximately $64,000 and included interest income of approximately $55,000. Other income for the first quarter of 2003 was approximately $409,000 and included approximately $402,000 in interest income. Cash balances in the first quarter of 2003 were significantly higher than in the first quarter of 2004. The average cash balance in the first quarter of 2003 was approximately $123,000,000 as compared to an average cash balance of approximately $10,900,000 in the first quarter of 2004. On January 31, 2003, BayCorp commenced an issuer tender offer to purchase up to 8,500,000 shares of its common stock at a price of $14.85 per share. The Company exercised its discretion to purchase up to an additional 2% of outstanding shares, purchasing a total of 8,673,887 shares and options, representing approximately 94.3% of the shares and options tendered. The Company distributed approximately $123,603,000 to tendering shareholders and options holders as of March 24, 2003. About BayCorp BayCorp Holdings, Ltd. is an 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. holding company incorporated in Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). . BayCorp currently owns three subsidiaries including Great Bay Power Marketing, Inc., which purchases and markets power on the open market, BayCorp Ventures, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which serves as a vehicle for the Company's investments and Great Bay Hydro Corporation, which was formed for the purpose of holding the generating facilities in Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. acquired from the Vermont Electric Division of Citizens Communications Citizens Communications is the parent company of Frontier Telephone, providing telephone and internet access in 24 states. The company headquarters are located at 3 High Ridge Park in Stamford, Connecticut. Company on April 1, 2004. BayCorp also owns an equity investment in HoustonStreet Exchange, Inc., which operates HoustonStreet.com, an independent internet-based crude oil and refined products trading exchange. Forward Looking Statements Any statements contained in this release regarding the Company's goals, strategies, and expectations are "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. ." No assurances can be given that the results in any forward-looking statements will be achieved and actual results could differ materially. Please review reports filed by BayCorp with the Securities and Exchange Commission for information and factors that could affect the Company's business.
BAYCORP HOLDINGS, LTD.
STATEMENT OF INCOME
(UNAUDITED)
(Dollars in thousands, except shares and per share data)
Three Months Ended
March 31,
2004 2003
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Operating Revenues $1,034 $991
Operating Expenses 1,559 2,079
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Operating Loss Before Mark to
Market of Energy Contracts (525) (1,088)
Unrealized Loss on Energy Contracts 1,637 1,083
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Operating Loss (2,162) (2,171)
Total Other Income 64 409
Income Taxes 0 0
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Net Loss ($2,098) ($1,762)
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Weighted Average Shares Outstanding - Basic 629,353 7,844,102
Weighted Average Shares Outstanding - Diluted 629,353 7,844,102
Basic Net Loss Per Share ($3.33) ($0.22)
Diluted Net Loss Per Share ($3.33) ($0.22)
As of March 31, 2004, there were 611,697 shares of common stock
outstanding.
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