Calpine Posts Record Earnings for Second Quarter 1998; Earnings Per Share Increase 24% to $0.56.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--July 30, 1998--San Jose, Calif.-based Calpine Corporation (NYSE NYSE See: New York Stock Exchange :CPN CPN Communist Party of Nepal CPN Commercial Property News CPN Civic Practices Network CPN Calling Party Number CPN Community Psychiatric Nurse (UK) CPN Cisco Powered Network CPN Connaitre et Proteger la Nature ), one of the nation's fastest growing independent power companies, announced today record earnings for the three and six months ended June 30, 1998. Net income was $11.6 million for the quarter ended June 30, 1998, representing a 23% increase compared to net income of $9.4 million for the second quarter of 1997. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , excluding the effect of an extraordinary charge of $302,000 for the retirement of debt, rose 24% to $0.56 per share, from $0.45 per share for the same period in 1997. Revenues for the quarter jumped 109% to $141.6 million, from $67.7 million a year ago. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) increased 56% to $67.6 million for the quarter, compared to $43.2 million a year ago. For the first half of 1998, net income was $8.6 million, an increase of 59% compared to $5.4 million for the same period in 1997. Diluted earnings per share, excluding the effect of the extraordinary charge, rose 62% to $0.42 per share, compared to $0.26 per share for the first six months of 1997. Revenues for the first six months were $196.7 million, an 84% increase from $107.0 million a year ago. EBITDA for the first six months rose 49% to $93.4 million, from $62.7 million in 1997. Total assets as of June 30, 1998, were $1.7 billion, up 21% from $1.4 billion at December 31, 1997. Earnings for the quarter and first six months benefited primarily from the acquisition of 827 megawatts of gas-fired power production in Texas and outstanding operations at Calpine's power facilities. "Calpine's strong financial performance in the second quarter confirms our strategy of maintaining a solid operating portfolio of quality generating assets," said Peter Cartwright
"We increased our portfolio significantly during the quarter through the acquisition of assets Acquisition of assets A merger or consolidation in which an acquirer purchases the selling firm's assets. both in natural gas and geothermal ge·o·ther·mal also ge·o·ther·mic adj. Of or relating to the internal heat of the earth. ge ," continued Cartwright. "Our first facility in Calpine's new power development program -- Pasadena 1 -- went on-line ahead of schedule just in time to help meet the peak summer demand in Texas. In short, it was a great quarter for Calpine, and we're well on our way to another great year." Highlights of recent activities include: State-of-the-Art Development Program Calpine's Pasadena 1 Power Plant Enters Operations -- Calpine's 240-megawatt Pasadena 1 Power Plant began producing power for the deregulated Texas wholesale market in July. The plant, under construction since 1997, came on-line three months ahead of schedule and approximately $21 million under budget. Calpine is selling steam to Phillips Petroleum's chemical complex and electricity to Phillips and to wholesale customers in Texas from the $131 million plant. Recent power demand, high energy prices and Calpine's success in winning wholesale power agreements validates the company's strategy of developing new power plants to serve the growing Texas market. Calpine and Bechtel Join Forces to Develop 2,000 Megawatts of New Power Plants in Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern -- Calpine and Bechtel Enterprises, an affiliate of Bechtel Group, Inc., the global engineer-constructor, entered into a joint venture to develop, own and operate approximately 2,000 megawatts of new natural gas-fired power plants in northern California to primarily serve the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay . The proposed plants will generate low-cost, clean electric power, eventually replacing less efficient Bay Area power plants, which are from 26 to more than 40 years old. The new plants will be constructed by Bechtel and operated by Calpine. The first plant of this billion-dollar power program will begin production as early as 2001. Calpine Signs Contract with Magic Valley Electric Cooperative -- Calpine signed a 20-year contract to provide electricity to the Mercedes, Texas-based Magic Valley Electric Cooperative, Inc. beginning in 2001. Power will be supplied from Calpine's Magic Valley Generating Station, a 700-megawatt natural gas-fired power plant under development in south Texas. South Texas is one of the fastest growing power Growing Power is an urban agriculture organization headquartered in Milwaukee, Wisconsin. It runs the last functional farm within the Milwaukee city limits and also organizes activities in Chicago. markets in the U.S. The electric co-op will purchase 250 to 400 megawatts initially, with an option to purchase additional capacity to serve membership expansion. Calpine is marketing additional capacity to other wholesale customers. Calpine Signs Lease to Develop First Power Plant on Indian Reservation -- Calpine entered into a 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. lease with the Fort Mojave Indian Tribe INDIAN TRIBE. A separate and distinct community or body of the aboriginal Indian race of men found in the United States. 2. Such a tribe, situated within the boundaries of a state, and exercising the powers of government and, sovereignty, under the national to secure a site on which to develop a 500-megawatt natural gas-fired power plant at the tribe's reservation in Mojave County, Ariz. The proposed South Point Power Plant will be the first power plant to be developed by an independent power producer on an Indian Reservation. When the plant begins production in 2000, it will deliver clean, low-cost power to the Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , Nevada and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). energy markets. Acquisition Program Calpine Acquires 70-megawatt Gas-Fired Power Plant and Gas Pipeline Assets -- Calpine acquired the Dow Chemical Company's 70-megawatt natural gas-fired power plant, located at Dow's Pittsburg, Calif. chemical facility, for $13 million. As part of the transaction, the company also acquired an extensive gas pipeline system, which will tie into Calpine's existing Sacramento basin pipeline, to provide the plant with low-cost fuel. Key to the transaction is Calpine's plan to build a 500- to 800-megawatt state-of-the-art, gas-fired power plant. The new unit will be the first of a 2,000-megawatt program that Calpine and Bechtel Enterprises are developing to serve the San Francisco Bay Area. Calpine Acquires 60-megawatt Geothermal Power Geothermal power Thermal or electrical power produced from the thermal energy contained in the Earth (geothermal energy). Use of geothermal energy is based thermodynamically on the temperature difference between a mass of subsurface rock and water and a mass Plant -- Enhancing its role as a low-cost geothermal power producer, Calpine acquired a 60-megawatt geothermal power plant from the Sacramento Municipal Utility District (SMUD SMUD Sacramento Municipal Utility District SMUD Stand-off Munitions Disruption ) for $13 million. The Sonoma Power Plant is located in The Geysers The examples and perspective in this USA may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. This is an alphabetical list of notable geysers, a type of erupting hot spring: Corporate Finance Program Calpine Announces $100 Million Corporate Revolver revolver: see small arms. revolver Pistol with a revolving cylinder that provides multishot action. Some early versions, known as pepperboxes, had several barrels, but as early as the 17th century pistols were being made with a revolving chamber to -- Calpine entered into a $100 million, three-year revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. with a consortium of banks led by The Bank of Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography . The new facility will replace a similar $50 million facility and will be used for working capital and other general corporate purposes. Calpine Completes $100 Million 7-7/8% Bond Offering -- Calpine completed its offering of an additional $100 million principal amount of 7 7/8% Senior Notes Due 2008. Proceeds will be used to repay existing indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , to acquire interests in and develop power generating facilities, and for general corporate purposes. About Calpine Calpine Corporation is a leading independent power company dedicated to providing customers with low-cost electricity and thermal energy thermal energy Internal energy of a system in thermodynamic equilibrium (see thermodynamics) by virtue of its temperature. A hot body has more thermal energy than a similar cold body, but a large tub of cold water may have more thermal energy than a cup of boiling . Calpine brings in-depth expertise to the development, acquisition, ownership and operation of power generation facilities. Calpine's operating projects include clean-burning natural gas-fired, combined-cycle power plants and geothermal facilities. Calpine currently has 5,200 megawatts of capacity in operation, under construction or in development in 10 states-enough energy to power five million households. The company was founded in 1984 and is publicly traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CPN. Please visit Calpine's website at www.calpine.com for more information. This news release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Calpine Corporation ("the Company") and its management. Prospective investors are cautioned that any such 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. are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to, (i) changes in government regulations and anticipated deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the electric energy industry; (ii) commercial operations of new plants that may be delayed because of various development and construction risks, such as a failure to obtain financing and the necessary permits to operate or the failure of third-party contractors to perform their contractual obligations; (iii) the assurance that the Company will develop additional plants; (iv) a competitor's development of a lower-cost generating gas-fired power plant or (v) the risks associated with marketing and selling power from power plants in the newly competitive energy market. Prospective investors are also referred to the other risks identified from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission. -0-
CALPINE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 1998 and 1997
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenue:
Electricity and steam sales $135,408 $62,639 $178,798 $96,326
Service contract revenue 3,048 1,715 8,529 3,529
Income from unconsolidated
investments in power projects 3,099 2,131 6,853 4,164
Interest income on loans to
power projects 42 1,259 2,562 2,956
Total revenue 141,597 67,744 196,742 106,975
Cost of revenue:
Plant operating expenses,
depreciation, operating
lease expense and production
royalties 94,864 35,537 129,337 64,276
Service contract expenses 1,892 1,669 6,788 3,519
Total cost of revenue 96,756 37,206 136,125 67,795
Gross profit 44,841 30,538 60,617 39,180
Project development expenses 1,438 1,786 3,119 3,947
General and administrative
expenses 5,807 4,373 11,043 8,584
Income from operations 37,596 24,379 46,455 26,649
Other expense (income):
Interest expense 22,267 13,168 40,790 26,145
Interest income (3,332) (3,489) (5,695) (6,890)
Other income, net (503) (803) (904) (1,003)
Income before provision for
income taxes 19,164 15,503 12,264 8,397
Provision for income taxes 7,236 6,103 3,393 3,037
Income before extraordinary
charge 11,928 9,400 8,871 5,360
Extraordinary charge
for retirement of
debt, net of tax
benefit of $207 302 -- 302 --
Net income $11,626 $9,400 $8,569 $5,360
Basic earnings
per common share:
Weighted average shares
outstanding 20,105 19,911 20,056 19,882
Income before
extraordinary
charge $ 0.59 $ 0.47 $ 0.44 $ 0.27
Extraordinary charge $ (0.01) $ -- $ (0.01) $ --
Net income $ 0.58 $ 0.47 $ 0.43 $ 0.27
Diluted earnings per
common share:
Weighted average shares
outstanding 21,126 20,998 21,050 20,989
Income before
extraordinary
charge $ 0.56 $ 0.45 $ 0.42 $ 0.26
Extraordinary charge $ (0.01) $ -- $ (0.01) $ --
Net income $ 0.55 $ 0.45 $ 0.41 $ 0.26
Depreciation and amortization $ 19,522 $12,216 $32,104 $23,548
Interest expense per indenture $ 23,482 $14,453 $43,212 $28,621
EBITDA $ 67,557 $43,218 $93,374 $62,697
EBITDA to total interest
expense 2.88x 2.99x 2.16x 2.19x
CONTACT: Calpine Corporation Katherine Potter A potter is someone who makes pottery. Potter may also refer to: People
Rick Barraza, 408/995-5115, x1125 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) |
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