CINergy releases second quarter earnings.CINCINNATI--(BUSINESS WIRE)--July 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 second quarter 1995 of $.39 per share compared with $.33 per share in the second quarter 1994. For the second 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 12.2% and net income up 22.7% despite lower electric sales resulting from milder weather. Continued emphasis on cost reductions and merger savings helped to offset the milder weather. In addition, the full effect of two rate increases for PSI Energy, a 4.3% increase in base rates effective February 17 and a 1.9% increase 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, was recognized in second quarter earnings. On July 24, 1995, Standard & Poor's Ratings Group raised its ratings on CINergy's operating units' senior secured debt to A- from BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. +, and senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to BBB+ from BBB. 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. S&P, "(m)anagement continues to strive to maximize the benefits of the merger of CG&E and PSI Energy...by lowering the combined entity's cost of power production. Savings in the areas of fuel cost, reduced operating and maintenance expense, as well as the deferral deferral - Waiting for quiet on the Ethernet. of capital expenditures, continue to be achieved." 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, "Our merger continues to deliver the benefits we predicted. Creative and innovative initiatives by CINergy employees have permitted us to leverage the strengths of both operating companies operating company A business that engages in transactions with outsiders. in finding ways to cut costs and improve efficiency. Additionally, the economy in our service area remains strong, due in part to our economic development efforts, and is reflected in a 3.8% increase in industrial electric sales." Mcf gas sales and transportation volumes for the quarter ended June 30, 1995, increased 8.5% when compared to the same period in 1994. Electric kwh sales were down 2.3% for the quarter, as previously discussed. For the 12 months ended June 30, 1995, earnings were $1.33 per share, which reflects write-offs totalling $.38 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 under the merger savings sharing mechanisms authorized by regulators. Earnings for the 12 months ended June 30, 1994 were $.49 per share after a write-off of $1.54 per share for certain disallowed costs of the Zimmer Generating Station. Following are summaries of CINergy's unaudited consolidated financial information for the second quarter and 12 month period ended June 30. The figures assume the companies were combined during the entire period. -0-
CINergy Corp.
(Rounded to thousands, except per share amounts)
Second Quarter 1995 1994
Revenues $668,369 $662,301 Earnings on Common Shares $60,026 $48,913 Earnings Per Share $.39 $.33 Av. Shares Outstanding 156,333 146,476
12 Mo. ended 6/30 1995 1994
Revenues $2,862,362 $2,978,859 Earnings on Common Shares $204,511 $71,928(a) Earnings Per Share $1.33 $.49(a) Av. Shares Outstanding 152,331 145,432
(a) Reflects the write-off of a portion of Zimmer Station of
$223 million, net of tax.
Second Quarter kwh Sales 1995 1994 %
Increase
(Decrease)
Residential 2,894,708 3,019,276 (4.1)
Commercial 2,705,132 2,708,201 (0.1)
Industrial 4,093,998 3,945,759 3.8
All Other 2,252,427 2,548,287 (11.6)
Total 11,946,265 12,221,523 (2.3)
Second Quarter mcf Sales
1995 1994
Residential 5,709 4,622 23.5
Commercial 2,121 2,465 (14.0)
Industrial 1,084 1,706 (36.5)
All other 494 693 (28.7)
Total sales 9,408 9,486 (0.8)
Gas transported 9,214 7,670 20.1
Total gas sales &
gas transported 18,622 17,156 8.5
CONTACT: CINergy Corp., Cincinnati Media Contact: 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) Angeline Protogere, 317/838-1338 (w) 317/298-3090 (h) or Investor Contact: Julie Janson, 513/287-3025 |
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