BayCorp Reports Third Quarter 2004 Operating Results.PORTSMOUTH Portsmouth, city, England Portsmouth, city (1991 pop. 174,218) and district, Hampshire, S England, on Spithead Channel. The district includes Portsea (naval station), Southsea (residential district and resort), and the old town of Portsmouth proper. , N.H. -- BayCorp Holdings, Ltd. ("BayCorp") (AMEX AMEX See: American Stock Exchange : MWH See watt-hour. ) announced today its operating results for the third quarter ended September 30, 2004. BayCorp reported a net loss of $250,000, or approximately $0.45 per share, for the third quarter of 2004 as compared to a net loss of $936,000, or approximately $1.45 per share, for the third quarter of 2003. The decrease in net loss in the third quarter of 2004 as compared to the third quarter of 2003 was primarily attributable to other income of approximately $486,000 recorded in the third quarter of 2004 reflecting the settlement and final reconciliation of certain accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. related to the Company's sale of its interests in the Seabrook Nuclear Power Plant in November 2002. On April 1, 2004, BayCorp's subsidiary, Great Bay Hydro Corporation ("Great Bay Hydro"), completed the acquisition of the Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. generating facilities 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. The generating facilities include an operating hydroelectric facility of approximately 4 megawatts located in Newport, Vermont Newport is the name of a town and a city in the state of Vermont:
Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. at HoustonStreet Exchange, Inc. ("HoustonStreet") was completed. As a result, BayCorp's ownership interest in HoustonStreet increased to 59.7% and the Company began consolidating HoustonStreet effective May 1, 2004. BayCorp held a minority ownership interest in HoustonStreet in the third quarter of 2003 and accounted for HoustonStreet under the equity method in 2003. 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. increased approximately $435,000, or 43.2%, to $1,442,000 in the third quarter of 2004 as compared to $1,007,000 in the third quarter of 2003. Revenues for the third quarter of 2004 included Great Bay Hydro revenues of approximately $196,000 and HoustonStreet revenues of approximately $242,000. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the third quarter of 2004 decreased approximately $299,000, or 16.6%, from $1,798,000 in the third quarter of 2003 to $1,499,000 in the third quarter of 2004. Operating expenses for the third quarter of 2004 included Great Bay Hydro expenses of approximately $171,000 and HoustonStreet expenses of approximately $187,000. The reduction in operating expenses in the third quarter of 2004 as compared to the third quarter of 2003 was primarily attributable to a decrease in total administrative and general expenses. The Company has undertaken numerous cost savings measures that reduced administrative and general expenses in the third quarter of 2004 by approximately $371,000, or 41.6%, to $520,000 as compared to $891,000 in the third quarter of 2003. Offsetting these income items, BayCorp recorded an 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. energy contract. 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 a net unrealized loss of approximately $648,000 in the third quarter of 2004 as compared to a net unrealized loss of approximately $140,000 in the third 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 were higher in the third quarter of 2004 as compared to the third quarter of 2003 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 are 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. For the nine months ended September 30, 2004, BayCorp reported a net loss of approximately $2,253,000, or $3.79 per share, as compared to a net loss of approximately $2,663,000, or $0.88 per share, for the nine months ended September 30, 2003. The decrease in net loss for the nine months ended September 30, 2004 as compared to the same period in 2003 was primarily attributable to other income, which increased approximately $500,000, or 66.1%, from $756,000 for the nine months ended September 30, 2003 to $1,256,000 for the nine months ended September 30, 2004. This increase was primarily attributable to the final reconciliation and termination of certain escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. accounts that had been funded for potential closing adjustments and other costs specific to the Company's sale of its interests in the Seabrook Nuclear Power Plant in November 2002. In addition, the Company recognized an extraordinary gain of $278,000 in the nine months ended September 30, 2004 upon the consolidation of HoustonStreet. Operating revenues increased $925,000, or approximately 30.9%, to $3,919,000 for the nine months ended September 30, 2004 as compared to $2,994,000 for the nine months ended September 30, 2003. The increase in revenues in 2004 was primarily attributable to revenues of $479,000 from the sale of electricity generated by Great Bay Hydro and HoustonStreet revenues of approximately $398,000. Operating expenses for the nine months ended September 30, 2004 decreased approximately $1,011,000, or 17.8%, from $5,688,000 for the nine months ended September 30, 2003 to $4,677,000 for the nine months ended September 30, 2004. Operating expenses for the nine months ended September 30, 2004 included Great Bay Hydro expenses of approximately $293,000 and HoustonStreet expenses of approximately $361,000. The reduction in operating expenses was primarily attributable to a decrease in administrative and general expenses. The Company has undertaken numerous cost savings measures that have reduced administrative and general expenses approximately $1,042,000, or 40.8%, to $1,510,000 for the nine months ended September 30, 2004 as compared to $2,552,000 for the nine months ended September 30, 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 has three wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. 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 which was formed for the purpose of holding the generating facilities in Vermont acquired from the Vermont Electric Division of Citizens Communications Company on April 1, 2004. As of May 1, 2004, BayCorp had a majority interest in HoustonStreet Exchange, Inc., which operates HoustonStreet.com, an independent internet-based crude oil and refined products trading exchange. Prior to May 1, 2004, BayCorp held a minority interest in HoustonStreet. 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 Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
---------- --------- -------- ----------
Operating Revenues $1,442 $1,007 $3,919 $2,994
Operating Expenses 1,499 1,798 4,677 5,688
---------- --------- -------- ----------
Operating Loss Before Mark to
Market of Energy Contracts (57) (791) (758) (2,694)
Unrealized Loss on Energy
Contracts (648) (140) (3,000) (725)
---------- --------- -------- ----------
Operating Loss (705) (931) (3,758) (3,419)
Other Income (Deductions) -
net 486 (5) 1,256 756
---------- --------- -------- ----------
Loss before Income Taxes,
Minority Interest and
Extraordinary Item (219) (936) (2,502) (2,663)
Income Taxes (13) 0 (13) 0
Minority Interest Income (18) 0 (16) 0
---------- --------- -------- ----------
Net Loss before Extraordinary
Item (250) (936) (2,531) (2,663)
Extraordinary Item - Gain on
Consolidation of Subsidiary 0 0 278 0
---------- --------- -------- ----------
Net Loss ($250) ($936) ($2,253) ($2,663)
========== ========= ======== ==========
Weighted Average Shares
Outstanding - Basic 560,612 646,917 594,143 3,019,622
Weighted Average Shares
Outstanding - Diluted 560,612 653,357 594,143 3,019,622
Basic Net Loss Per Share
before Extraordinary Item ($0.45) ($1.45) ($4.26) ($0.88)
Diluted Net Loss Per Share
before Extraordinary Item ($0.45) ($1.45) ($4.26) ($0.88)
Basic Net Income Per Share -
Extraordinary Item - - $0.47 -
Diluted Net Income Per Share -
Extraordinary Item - - $0.47 -
Basic Net Loss Per Share ($0.45) ($1.45) ($3.79) ($0.88)
Diluted Net Loss Per Share ($0.45) ($1.45) ($3.79) ($0.88)
As of September 30, 2004, there were 557,945 shares of common
stock outstanding.
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