Calpine Posts Record Earnings for Third Quarter 1999.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)--Oct. 22, 1999-- 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 nine months ended September 30, 1999. Net income was $42.9 million for the quarter ended September 30, 1999, representing an 86% increase compared to net income of $23.1 million for the third quarter of 1998. 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 after accounting for the recently completed two-for-one stock split rose 37% to $0.74 per share for the quarter, from $0.54 per share for the same period in 1998. Revenue for the quarter increased 42%, from $186.2 million a year ago to $263.6 million. 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 28% to $119.1 million for the quarter compared to $93.4 million a year ago. For the nine months ended September 30, 1999, net income was $64.3 million, an increase of 103% compared to $31.6 million for the same period in 1998. Diluted earnings per share rose 61% to $1.21 per share, compared to $0.75 per share for the nine months of 1998. Revenue for the nine months was $600.2 million, a 57% increase from $382.9 million a year ago. EBITDA for the nine months rose 43% to $268.2 million, from $187 million in 1998. Total assets as of September 30, 1999, were $2.7 billion, up 59% from $1.7 billion at December 31, 1998. Financial results for both the three and nine months ended September 30, 1999 benefited primarily from the acquisition of 14 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 plants -- totaling approximately 700 megawatts -- from Pacific Gas and Electric Company
The Pacific Gas and Electric Company (PG&E) , (NYSE: PCG), is the utility that provides natural gas and electricity to most of Northern California. , completed in May 1999. For certain of these facilities, revenue includes amounts received under a Reliability Must Run contract with the 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). Independent System Operator, which is awaiting final Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. approval. "Calpine has turned in another record quarter of earnings -- the 12th consecutive record quarter since Calpine went public in 1996," said Calpine President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Peter Cartwright
"We attribute our success to the continued strong performance from our operating facilities as we continue to advance Calpine's proven strategy of acquiring and developing clean, efficient power generating facilities." Highlights of recent activities include: Acquisition Program Sheridan Energy, Inc. -- In September 1999, Calpine further expanded its fuels capabilities through a $41 million cash tender offer for Houston, Texas-based Sheridan Energy, Inc., a natural gas exploration and production company. Sheridan's oil and gas properties are located 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 and the Gulf Coast region, including 148 billion cubic feet equivalent of proven reserves, 90% of which are natural gas. These reserves are located in strategic markets where Calpine is operating and developing natural gas-fired facilities. Calpine completed the transaction on October 1. Pending Acquisition of Cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. Corporation of America -- Calpine has reached agreement with Minneapolis, Minn.-based Cogeneration Corporation of American (CGCA CGCA Creative Glass Center of America CGCA Covent Garden Community Association CGCA Colorado Gun Collectors Association CGCA City and Guilds College Association CGCA Churches of God Cyber Auxiliary CGCA Cedar Grove Christian Academy ) to acquire 80% of CGCA's common stock for approximately $145 million. NRG Energy NRG Energy, Inc. (NRG) is a wholesale power generation company founded in 1989, which has an ownership interest in 47 power generating facilities around the world. The diverse portfolio of facilities, are primarily in the Northeast, South Central and Western regions of the United , Inc., a wholly owned subsidiary 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. of Northern States Power, will retain the remaining 20% interest. This acquisition will add 400 net megawatts of natural gas-fired production in key energy markets. Calpine also announced plans to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. approximately $80 million of CGCA corporate level debt. The proposed acquisition will increase Calpine's natural gas-fired energy production to 2,476 net megawatts of capacity -- representing a 20% increase in gas-fired production. Calpine expects to close the transaction by January 2000. Calistoga Geothermal Power Plant -- In a move to increase its green power production, Calpine has purchased the Calistoga geothermal power plant from Florida Power & Light affiliate FPL FPL feline panleukopenia. Energy and New York-based Caithness Corporation for approximately $78 million. 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: Power Factors, Inc. -- Calpine acquired the PowerSuite software technology from Power Factors, Inc. of Fort Collins, Colo. The software technology will equip e·quip tr.v. e·quipped, e·quip·ping, e·quips 1. a. To supply with necessities such as tools or provisions. b. Calpine's operations, asset optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. and power marketing functions with a real-time information technology tool to help maximize the performance and profitability of its U.S. power generating fleet. Development Program 18 Siemens-Westinghouse Combustion combustion, rapid chemical reaction of two or more substances with a characteristic liberation of heat and light; it is commonly called burning. The burning of a fuel (e.g., wood, coal, oil, or natural gas) in air is a familiar example of combustion. Turbines -- To help power Calpine's active development program, the company announced in August that it will purchase 18 F-class combustion turbines from Orlando, Fla.-based Siemens-Westinghouse Power Corporation. Beginning in 2002, Siemens-Westinghouse will deliver six turbines per year to Calpine through 2004. The new turbines will produce approximately 4,900 additional megawatts of electricity for Calpine's development portfolio. When combined with the turbines ordered to date, Calpine will have enough combustion turbines to meet new project requirements through 2003. Los Medanos Energy Center -- Construction is under way for Calpine's $350 million Los Medanos Energy Center. Calpine acquired development rights to build, own and operate the 500-megawatt, natural gas-fired cogeneration facility in September 1999 from Enron North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Calpine expects to begin energy deliveries in July 2001. Baytown Power Plant -- Calpine announced plans to develop an 800-megawatt, natural gas-fired cogeneration power plant at Bayer Corporation's chemical facility in Baytown, Texas Baytown is a city located along the Gulf Coast region in the U.S. state of Texas within the Houston–Sugar Land–Baytown metropolitan area. The city is mostly in Harris County with small portion in Chambers County, located along both State Highway 146 and . The proposed Baytown Power Plant will generate approximately 700 megawatts of electricity under baseload conditions, and will have the ability to produce an additional 100 megawatts of "peaking" power during hot summer months. The Baytown plant will supply Bayer with all of its electric and steam requirements for 20 years. Excess power will be sold into the Texas wholesale power market. Construction is scheduled to begin in early 2000, with the plant entering commercial operation in late 2001. Corporate Finance Two-For-One Stock Split and Proposed Offering of Common Stock and Convertible Securities -- Calpine completed a two-for-one split of its common stock on October 7, 1999. In addition, the company has filed a registration statement with the Securities and Exchange Commission relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a proposed public offering of six million shares of common stock. Calpine has granted the underwriters an option to purchase up to an additional 900,000 shares of common stock to cover over-allotments, if any. Calpine also expects to offer approximately $200.0 million of convertible preferred securities concurrently with the offering of its common stock. About Calpine Calpine Corporation is a national power company dedicated to providing customers with reliable and competitively priced 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 currently has approximately 9,800 megawatts of capacity in operation, pending acquisition, under construction or in announced development in 14 states -- enough energy to power nearly ten million households. Calpine has headquarters in San Jose, Calif., with regional offices in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the ; Pleasanton, Calif.; and Boston, Mass. 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. To learn more about Calpine, visit its website at www.calpine.com. 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) the risk associated with obtaining regulatory approvals; (iii) 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 (iv) the assurance that the Company will develop additional plants, (v) a competitor's development of a lower-cost generating gas-fired power plant, (vi) the risks associated with marketing and selling power from power plants in the newly competitive energy market, or (vii) that the information is of a preliminary nature and may be subject to further adjustments, (viii) risks associated with power plant acquisitions or mergers, (ix) the dependence on third parties, (x) the dependence on senior management. 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
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 1999 and 1998
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
1999 1998 1999 1998
Revenue:
Electricity
and steam sales $ 225,443 $ 168,561 $ 529,765 $ 347,359
Service contract
revenue 21,846 7,835 35,085 16,363
Income from
unconsolidated
investments in
power 15,842 9,778 34,163 16,631
Interest income
on loans to power
projects 517 -- 1,226 2,562
--------- --------- --------- --------
Total revenue 263,648 186,174 600,239 382,915
--------- --------- --------- --------
Cost of revenue:
Plant operating
expenses 31,696 20,745 81,480 49,583
Fuel expense 78,807 62,546 194,265 120,382
Depreciation
expenses 14,005 21,721 56,294 52,532
Operating lease
expense 9,987 4,375 23,539 10,990
Production
royalties expense 4,119 2,791 9,745 8,028
Service contract
expenses 21,219 4,926 32,680 11,714
--------- --------- --------- ---------
Total cost
of revenue 159,833 117,104 398,003 253,229
--------- --------- --------- ---------
Gross profit 103,815 69,070 202,236 129,686
Project
development
expenses 3,419 1,722 7,667 4,841
General and
administrative
expenses 13,291 7,389 34,255 18,431
--------- --------- --------- --------
Income from
operations 87,105 59,959 160,314 106,414
Other (income)
expense:
Interest expense 23,019 24,348 70,190 65,138
Interest income (6,473) (3,695) (16,305) (9,389)
Other (income)
expense, net (28) 72 (1,263) (834)
--------- --------- --------- --------
Income before
provision for
income taxes 70,587 39,234 107,692 51,499
Provision for
income taxes 27,670 15,820 42,215 19,213
--------- --------- -------- --------
Income before
extraordinary
charge 42,917 23,414 65,477 32,286
Extraordinary
charge,
net of tax
benefit of -- 339 1,150 641
--------- --------- --------- --------
Net income $ 42,917 $ 23,075 $ 64,327 $ 31,645
========= ========= ========= =========
Basic earnings
per common share:
Weighted average
shares outstanding 54,389 40,274 49,799 40,166
Income before
extraordinary
charge $ 0.79 $ 0.58 $ 1.31 $ 0.80
Extraordinary charge -- $ (0.01) $ (0.02) $ (0.01)
Net income $ 0.79 $ 0.57 $ 1.29 $ 0.79
Diluted earnings
per common share:
Weighted average
shares outstanding 57,990 42,344 52,966 42,182
Income before
extraordinary
charge $ 0.74 $ 0.55 $ 1.24 $ 0.77
Extraordinary
charge $ -- $ (0.01) $ (0.03) $ (0.02)
Net income $ 0.74 $ 0.54 $ 1.21 $ 0.75
Depreciation and
amortization $ 13,786 $ 33,749 $ 56,443 $ 65,852
Interest expense
per indenture $ 26,615 $ 25,976 $ 78,649 $ 69,187
EBITDA $ 119,103 $ 93,434 $ 268,239 $ 187,016
EBITDA to total
interest expense 4.48x 3.60x 3.41x 2.70x
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