Cascade Natural Gas Corporation Announces Fiscal Year 2003 First Quarter 7% Earnings Improvement.Business Editors SEATTLE--(BUSINESS WIRE)--Jan. 22, 2003 Cascade A connected series of devices or images. It often implies that the second and subsequent device takes over after the previous one is used up. For example, cascading tapes in a dual-tape backup system means the second tape is written after the first one is full. Natural Gas Corporation (NYSE NYSE See: New York Stock Exchange :CGC CGC Canine Good Citizen (AKC Dog Title) CGC Commission Géologique du Canada (Geological Survey of Canada) CGC Confédération Générale des Cadres (French labor union) ) reported earnings of $6.7 million, or $0.61 per share for the fiscal first quarter ended December December: see month. 31, 2002, compared to $6.2 million, or $0.57 per share for the first quarter ended December 31, 2001. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: (revenue minus gas costs and revenue taxes) were up $866,000 for the quarter with the improved results attributable to: -- The addition of 8,081 new residential and commercial customers, a 4.1% growth rate, contributed $838,000 to the improvement with a reduction of $150,000 due to a 3.7% decline in per customer consumption. Most of the consumption decline can be traced to warmer weather. -- Operating margin from gas management services was higher by $591,000 due primarily to an increase in the number of industrial customers served from 33 to 48. Operating margin improvements were negatively affected $410,000, in the quarterly comparison, from lower electric generation, other industrial, and off-system pipeline capacity revenue. The prior year's off-system pipeline capacity transaction of $235,000 was not part of normal, recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. operations. Total cost of Operations declined $122,000 for the quarter. The reduction is in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite an 18% benefits cost increase and a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge of $375,000 for settling a claim arising from the accidental accidental /ac·ci·den·tal/ (ak?si-den´t'l) 1. occurring by chance, unexpectedly, or unintentionally. 2. nonessential; not innate or intrinsic. death of a child playing on a meter barrier at a commercial customer site. Expense increases were offset by lower labor cost, lower bad debt expense, and lower amounts for other expenses. Additionally, due to more effective use of internal resources for construction vs. maintenance, sales, and other activities, 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. for the quarter were lower. Non-operating expense was higher primarily due to issuing $40 million of 7.50% 30-year debt in November 2001. The long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. replaced lower interest short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. . First quarter net capital expenditures were $5.5 million out of a total budget for the fiscal year of $24.5 million. Ninety-two percent of expenditures were for general pipeline system expansion. The Company previously announced its declaration of a $0.24 per share quarterly dividend on common stock, payable February 14, 2003, to shareholders of record at the close of business January 15, 2003. Cascade Natural Gas Corporation is a local distribution company providing natural gas service to over 207,000 customers in the states of Washington and Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. . Statements contained in this report that are not historical in nature 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual future results to differ materially. Such risks and uncertainties with respect to the Company include, among others, its ability to successfully implement internal performance goals, competition from alternative forms of energy, consolidation in the energy industry, the failure or inability of key natural gas suppliers to honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. their commitments, the capital-intensive Capital-intensive Used to describe industries that require large investments in capital assets to produce their goods, such as the automobile industry. These firms require large profit margins and/or low costs of borrowing to survive. nature of the Company's business, regulatory issues, including the need for adequate and timely rate relief to recover increased capital and operating costs operating costs npl → gastos mpl operacionales resulting from customer growth and to sustain dividend levels, the weather, increasing competition brought on by 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. initiatives at the federal and state regulatory levels, the potential loss of large volume industrial customers due to "bypass" or the shift by such customers to special competitive contracts at lower per unit margins, exposure to environmental cleanup The process of removing solid, liquid, and hazardous wastes, except for unexploded ordnance, resulting from the joint operation of US forces to a condition that approaches the one existing prior to operation as determined by the environmental baseline survey, if one was conducted. requirements, and economic conditions, particularly in the Company's service area.
Cascade Natural Gas Corporation
Financial Highlights - (Thousands, except per share amounts)
First Quarter Fiscal 2003
Fiscal Year 2003
-----------------------------------------------
Three Months Ended Year-to
------------------------------------- Date
Dec 31 Mar 31 Jun 30 Sep 30 Dec 31
--------- --------- -------- -------- ---------
Revenues $100,496 $100,496
Operating Margin 29,509 29,509
Cost of Operations 15,789 15,789
--------- --------- -------- -------- ---------
Operating Income
(Loss) 13,720 0 0 0 13,720
Interest and Other 3,199 3,199
Income Taxes 3,840 3,840
--------- --------- -------- -------- ---------
Net Income (Loss) $6,681 $- $- $- $6,681
Common Shares
Outstanding:
End of Period 11,045 11,045
Average 11,045 11,045
Earnings (Loss) Per
Share
Basic $0.61 $0.61
Diluted $0.60 $0.60
Dividends Paid per
share $0.24 $0.24
Capital Expenditures
(net) $5,524 $5,524
Book Value Per Share $10.70 $10.70
Market Closing Price $20.00 $20.00
Active Customers (End
of Period) 207 207
Gas Deliveries
(Therms):
Residential &
Commercial 79,638 79,638
Industrial & Other 260,369 260,369
Degree Days
Normal 2,042 2,042
Actual 2,027 2,027
Colder (warmer) than
5-year avg. (1%) (1%)
Fiscal Year 2002
------------------------------------------------
Three Months Ended Year
------------------------------------- Ended
Dec 31 Mar 31 Jun 30 Sep 30 Sep 30
--------- --------- -------- -------- ----------
Revenues $102,761 $122,361 $56,815 $39,041 $320,978
Operating Margin 28,643 33,456 14,253 14,150 90,502
Cost of Operations 15,911 15,282 14,890 15,256 61,339
--------- --------- -------- -------- ----------
Operating Income
(Loss) 12,732 18,174 (637) (1,106) 29,163
Interest and Other 2,901 3,247 3,224 3,248 12,620
Income Taxes 3,588 5,448 (1,409) (1,846) 5,781
--------- --------- -------- -------- ----------
Net Income (Loss) $6,243 $9,479 $(2,452) $(2,508) $10,762
Common Shares
Outstanding:
End of Period 11,045 11,045 11,045 11,045 11,045
Average 11,045 11,045 11,045 11,045 11,045
Earnings (Loss) Per
Share
Basic $0.57 $0.86 $(0.22) $(0.23) $0.97
Diluted $0.56 $0.86 $(0.22) $(0.23) $0.97
Dividends Paid per
share $0.24 $0.24 $0.24 $0.24 $0.96
Capital Expenditures
(net) $4,557 $5,240 $4,422 $6,515 $20,734
Book Value Per Share $11.34 $11.95 $11.48 $10.38 $10.38
Market Closing Price $22.05 $21.22 $20.90 $19.70 $19.70
Active Customers (End
of Period) 199 201 198 198 198
Gas Deliveries
(Therms):
Residential &
Commercial 79,412 98,713 36,655 21,709 236,489
Industrial & Other 303,130 285,692 160,047 216,036 964,905
Degree Days
Normal 2,136 2,282 872 220 5,510
Actual 2,038 2,351 840 226 5,455
Colder (warmer) than
5-year avg. (5%) 3% (4%) 3% (1%)
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion