CINergy Corp. releases first quarter earnings Business Editors.CINCINNATI--(BUSINESS WIRE)--April 27, 1995--CINergy Corp. (NYSE NYSE See: New York Stock Exchange :CIN CIN cervical intraepithelial neoplasia. Cervical intraepithelial neoplasia (CIN) A term used to categorize degrees of dysplasia arising in the epithelium, or outer layer, of the cervix. ), the parent company of The Cincinnati Gas & Electric Company and PSI Energy Inc., today announced consolidated earnings for the first quarter 1995 of $.65 per share compared with $.68 per share in the first quarter 1994. For the first quarter, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was up 4% and net income up 2.3% despite lower gas and electric sales volumes resulting from substantially warmer than normal weather. In addition to the effects of the mild weather, the lower earnings per share for the quarter resulted from a 6.8% increase in the average number of shares outstanding. The increased common equity was not recognized for ratemaking rate·mak·ing n. The practice of establishing rates of payment, as for public transportation or utilities. rate purposes until mid-quarter. In the first quarter, two rate increases became effective for PSI Energy, one for a 4.3% increase in base rates effective February 17 and a second for 1.9% on March 9 for carrying costs Carrying costs Costs that increase with increases in the level of investment in current assets. associated with environmental projects. The effect of the increases will be recognized in earnings for the remainder of the year. James E. Rogers, vice chairman, 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. of CINergy, said, ``Although the weather was mild, we were still able to show improving net income for the quarter. This reflects aggressive actions to capture the savings that the merger of CG&E and PSI creates. Total employment for CINergy is down 4.4%, the electric dispatch A dispatch or dispatches can refer to:
tr.v. post·poned, post·pon·ing, post·pones 1. To delay until a future time; put off. See Synonyms at defer1. 2. To place after in importance; subordinate. construction projects that were planned prior to the merger.'' Electric kwh sales were down 1.5% in the first quarter and gas mcf sales were down 4.3%, when compared with the same period in 1994. Heating degree days Heating degree day (HDD) and cooling degree day (CDD) are quantitative indices demonstrated to reflect demand for energy to heat or cool houses and businesses. These indices are derived from daily temperature observations and power demand. , which can be used to measure the impact of weather on energy use, were down more than 11% in the CINergy service area. As a result, total revenues declined 6.9%, or $59 million, for the quarter. Rogers said that even with the reduced revenues in the first quarter due to the weather, the positive contributions from aggressive cost control and the strength of the electric industrial sector (up 7.2% in kwh sales) ``have been satisfying. We continue to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op with regard to 1995 earnings.'' For the 12 months ended March 31, 1995, earnings were $1.29 per share, which reflects write-offs totalling $.41 per share primarily for merger-related costs, such as transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , the voluntary workforce reduction program attributable to CG&E's electric operations, and other costs that cannot be recovered from customers due to rate settlements related to securing support for the merger. Earnings for the 12 months ended March 31, 1994 were $.46 per share after a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of $1.54 for a portion of the Zimmer Generating Station. Following are summaries of CINergy's unaudited consolidated financial information for the first quarter and 12 month period ended March 31. The figures assume the companies were combined during the entire period. -0-
CINergy Corp.
(Rounded to thousands)
First Quarter 1995 1994
Revenues $804,502 $863,733 Earnings on Common Shares $101,610 $99,354 Earnings Per Share $.65 $.68 Av. Shares Outstanding 155,682 145,758
12 Mo. ended 3/31 1995 1994
Revenues $2,849,972 $2,915,174 Earnings on Common Shares $193,841 $67,192(a) Earnings Per Share $1.29 $.46(a) Av. Shares Outstanding 149,873 144,811 (a) Reflects the write-off of a portion of Zimmer Station of $223 million, net of tax.
First Quarter Kwh Sales 1995 1994 % Increase
(Decrease)
Residential 3,736,685 4,084,364 (8.5)
Commercial 2,771,785 2,744,287 1.0
Industrial 3,876,290 3,616,809 7.2
All Other 2,714,306 2,849,997 (4.8)
Total 13,099,066 13,295,457 (1.5)
First Quarter Mcf Sales 1995 1994
Residential 17,961 20,492 (12.4)
Commercial 9,948 11,306 (12.0)
Industrial 2,716 3,960 (31.4)
All other 2,256 2,562 (11.9)
Total sales 32,881 38,320 (14.2)
Gas transported 11,209 7,730 45.0
Total gas sales 44,090 46,050 (4.3)
& gas transported
CONTACT: CINergy Corp., Cincinnati Media: Steve Brash brash (brash) heartburn. water brash heartburn with regurgitation of sour fluid or almost tasteless saliva into the mouth. , 513/287-2226 (w); 513/231-6895 (h) or Investor: Angeline Protogere, 317/838-1338 (w); 317/298-3090 (h) |
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