Cascade Natural Gas Fiscal Year 2004 1st Quarter Earnings.Business Editors SEATTLE--(BUSINESS WIRE)--Jan. 22, 2004 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 $7.9 million, or $0.71 per share for the 2004 fiscal first quarter, a 16% improvement over earnings of $6.7 million, or $0.61 per share for the first quarter ended December December: see month. 31, 2002. The fiscal 2004 first quarter included a mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. valuation of financial derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. that positively affected margin by $406,000. The fiscal 2003 quarter included a $375,000 charge for settlement of a personal injury claim. Residential and commercial 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 $1.1 million in the quarterly comparison. The increase is attributed to a 4% increase in per customer consumption, primarily due to colder weather, as well as a 4% increase in number of customers. Industrial operating margin was up $388,000 in the quarterly comparison with the increase attributable primarily to the positive mark-to-market swap valuation that supports fiscal year 2004 fixed-price gas supply contracts to a group of industrial customers. The mark-to-market valuation will change each quarter depending on natural gas prices and number of therms remaining to be delivered per the swap contract. Operating margin from electric generation customers was down $280,000 in the quarter ended December 31, 2003 compared to the December 31, 2002 quarter. Cost of operations for the quarter was lower by $660,000 compared to the fiscal year 2003 first quarter. Changes to employee benefit plans implemented in July July: see month. 2003 resulted in an $816,000 decrease in employee benefits expense. Partially offsetting these favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. comparisons were expense increases of $469,000 for bad debts, depreciation expense and property and miscellaneous taxes. Capital expenditures in the first quarter were $10.2 million, which included $2.9 million for a project to automate To turn a set of manual steps into an operation that goes by itself. See automation. meter reading. The project started in the third quarter of fiscal year 2003 and is expected to continue through the first quarter of fiscal year 2005 at a total cost of $16 million. Based on first quarter performance and other factors, management confirms the previously disclosed fiscal year 2004 earnings guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. of $1.30 to $1.40 per share. The Company previously announced its declaration of a $0.24 per share quarterly dividend on common stock, payable February 13, 2004 to shareholders of record at the close of business January 14, 2004. Cascade Natural Gas Corporation is a local distribution company providing natural gas service to approximately 212,000 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 2004
Fiscal Year 2004
-------------------------------
Three Months Ended
------------------------------- Year
to
Dec 31 Mar 31 Jun 30 Sep 30 Date
--------- ------- ------ ------ -----
Revenues $104,884 $104,884
Operating
Margin 30,693 30,693
Cost of
Operations 15,129 15,129
Operating Income
(Loss) 15,564 0 0 0 15,564
Interest and
Other 3,116 3,116
Income Taxes 4,543 4,543
Net Income
(Loss) $7,905 $- $- $- $7,905
Common Shares
Outstanding:
End of
Period 11,181 11,181
Average 11,158 11,158
Earnings (Loss) Per Share
Basic $0.71 $0.71
Diluted $0.71 $0.71
Dividends Paid per
share $0.24 $0.24
Capital Expenditures
(net) $10,216 $10,216
Book Value
Per Share $10.61 $10.61
Market Closing
Price $21.09 $21.09
Active Customers
(End of
Period) 216 216
Gas Deliveries (Therms):
Residential &
Commercial 86,070 86,070
Industrial
& Other 260,887 260,887
Degree Days
Normal 2,044 2,044
Actual 2,106 2,106
Colder (warmer)
than 5-year avg. 3% 3%
Fiscal Year 2003
-------------------------------
Three Months Ended Year
-------------------------------------
Ended
Dec 31 Mar 31 Jun 30 Sep 30 Sep 30
--------- --------- -------- -------- ---------
Revenues $100,496 $109,286 $53,793 $39,180 $302,755
Operating
Margin 29,509 29,647 17,328 14,191 90,675
Cost of
Operations 15,789 15,749 17,249 15,597 64,384
--------- --------- -------- -------- ---------
Operating Income
(Loss) 13,720 13,898 79 (1,406) 26,291
Interest and
Other 3,199 3,112 3,197 2,946 12,454
Income Taxes 3,840 3,937 (1,138) (1,906) 4,733
--------- --------- -------- -------- ---------
Net Income
(Loss) $6,681 $6,849 $(1,980) $(2,446) $9,104
Common Shares Outstanding:
End of Period 11,045 11,071 11,101 11,132 11,132
Average 11,045 11,057 11,086 11,114 11,075
Earnings (Loss) Per Share
Basic $0.61 $0.62 $(0.18) $(0.22) $0.82
Diluted $0.60 $0.62 $(0.18) $(0.22) $0.82
Dividends Paid per
share $0.24 $0.24 $0.24 $0.24 $0.96
Capital Expenditures
(net) $5,524 $5,254 $6,063 $10,852 $27,693
Book Value
Per Share $10.70 $11.10 $10.70 $10.11 $10.11
Market Closing
Price $20.00 $19.40 $19.10 $19.60 $19.60
Active Customers
(End of Period) 207 209 207 206 206
Gas Deliveries (Therms):
Residential &
Commercial 79,638 84,967 37,465 20,741 222,811
Industrial
& Other 260,369 252,025 176,667 250,041 939,102
Degree Days
Normal 2,042 2,272 871 233 5,418
Actual 2,027 2,049 826 140 5,042
Colder (warmer)
than 5-year avg. (1%) (10%) (5%) (40%) (7%)
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion