Cinergy Reports Second Quarter Earnings; Webcast of Analyst Conference Call Scheduled Today for 9:00 a.m. EDT on Cinergy.com.CINCINATTI -- Cinergy Cinergy Corp. was an energy company based in Cincinnati, Ohio. Cinergy was created on October 24, 1994, from the merger of the Cincinnati Gas & Electric Company (CG&E) with PSI Energy and later included Union Light, Heat & Power (ULH&P) as well. 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. ) today reported net income for the second quarter of 2005 of $51 million, or $0.25 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared with net income of $59 million, or $0.32 per share on a diluted basis in the second quarter of 2004. Earnings for the second quarter of 2005 were negatively impacted by ($0.04) per share resulting from the recognition of unrealized mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. losses on gas, fuel and power contracts that hedge gas storage and generation assets. These contracts, which are economic hedges, do not meet the accounting requirements to qualify for accrual accounting Accrual Accounting An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions happen. Notes: . Earnings for the quarter were also reduced by ($0.07) per share for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments and certain costs incurred in connection with the proposed merger with Duke Energy announced in May 2005. Excluding these impacts, adjusted earnings for the second quarter of 2005 were $0.36 per share, compared with $0.43 per share for the second quarter of 2004. In 2004, earnings were impacted in the second quarter by losses from similar unrealized mark-to-market adjustments of ($0.02) per share and by charges of ($0.09) per share for implementation costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's "CIN-10" continuous improvement initiative, costs associated with exiting a non-regulated energy service and the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of certain investments. Cinergy uses adjusted earnings internally for analysis of performance and for reporting results to the Board of Directors to provide a more meaningful representation of Cinergy's fundamental earnings power. The company also uses adjusted earnings when communicating its earnings outlook to analysts and investors. "While results from our regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. businesses and our other core electric generation activities continue to meet our expectations, we are disappointed with this quarter's results from our commercial gas operations," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. E. Rogers, chairman, president and chief executive officer. "Our commercial gas group has consistently contributed to earnings over the last few years, and we're we're Contraction of we are. we're we are taking the necessary steps to restore their contribution in the future. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. J. Cyrus Cy·rus Known as "the Younger." 424?-401 b.c. Persian prince who led a mammoth force of Greeks against his brother Artaxerxes II. , formerly executive vice president and chief executive officer of the Regulated Businesses, has returned to the leadership of the Commercial Businesses, where he successfully grew the power and gas commercial businesses for Cinergy from 2000 through the first half of 2004." "Our commercial gas group clearly missed our expectations this quarter," said Cyrus. "We're moving quickly to restore the success of this business by making necessary organizational changes, attacking operating costs operating costs npl → gastos mpl operacionales by consolidating support functions and again executing on our strengths in the physical and financial markets." Unaudited consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statements of income for the quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. ended June June: see month. 30, 2005 and 2004, and unaudited consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. as of June 30, 2005 and December December: see month. 31, 2004 can be found on Schedules 1 and 2 of this release. Reconciliations of items included in GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings but excluded from adjusted earnings can be found on Schedules 3 and 4 of this release. Business Segment Results The Commercial Businesses segment reported adjusted earnings of $0.09 per share in the second quarter of 2005 compared with adjusted earnings of $0.23 per share in the same period of 2004. The segment realized a ($0.13) per share decrease from its gas marketing, trading and origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real activities. Increases in fuel costs that are not yet reflected in the prices charged to residential and non-retail customers and increases in operation and maintenance expenses further reduced earnings by a combined ($0.05) per share. Higher margins realized from generation assets serving Ohio commercial and industrial customers and higher margins from portfolio optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. activities partially offset these decreases. Second quarter adjusted earnings from the Regulated Businesses segment were $0.27 per share in 2005, compared with $0.22 per share from a year earlier. The increase in earnings was primarily due to an increase in electric gross margins resulting from the electric rate increase approved for PSI Energy, Inc in May 2004. Partially offsetting the increased margins was increased operation and maintenance expenses, higher financing costs, dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. and higher depreciation expense, which resulted from increased plant in service and higher depreciation rates associated with PSI's electric rate increase. Adjusted earnings for the Power Technology and Infrastructure Services segment were flat (or $0.00 per share) for the second quarter of 2005, as compared to a ($0.02) per share loss from the prior year. Complete details of second quarter and year-to-date 2005 results compared to 2004 can be found on Schedules 5 through 8 of this release. Earnings Guidance After taking into consideration the results from the commercial gas business during the quarter and the prospects for that business during the remainder of the year, the company is lowering its previously issued earnings guidance for 2005 to a range of $2.50 to $2.65 per share on an adjusted basis. With regard to 2006, Cinergy is evaluating the ongoing earnings contribution of the commercial gas operations as well as other items in the context of completing its normal budgeting process. Until that process is concluded and the company issues updated 2006 guidance, the company's preliminary 2006 earnings estimate previously provided is no longer applicable. The company's earnings guidance is based on adjusted earnings. The corresponding GAAP equivalent for 2005 earnings guidance is $2.27 to $2.42 per share. Other Activities In May, Cinergy announced that it had reached a definitive merger agreement with Duke Energy to create an energy company with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $36 billion in market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. and 5.4 million retail customers. Under the merger agreement, each common share of Cinergy will be converted to 1.56 shares of Duke Energy upon closing of the merger. The companies also began the process of filing merger review proceedings in the five states served by their regulated subsidiaries and at the federal level. The approvals are expected to be received in the summer of 2006. Cinergy's operating companies operating company A business that engages in transactions with outsiders. , PSI Energy and The Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. Gas & Electric Co., announced that they had signed a definitive agreement with subsidiaries of Allegheny Energy Allegheny Energy (NYSE: AYE) is a traditional public utility based in the Pittsburgh suburb of Greensburg. It services communities in Western Pennsylvania, Western Maryland, Northern West Virginia, Northwest Virginia. , Inc., to acquire the 512-megawatt Wheatland Wheatland can refer to several things: Places
gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- output will be used to bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz the reserve margins on the PSI and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. CG&E systems. Regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals or clearances have been received from the 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. and the U.S. Justice Department, and other regulatory approvals are pending. The transaction is expected to close in the third quarter of 2005. Cinergy Corp. has a balanced, integrated portfolio consisting of two core businesses: regulated operations and commercial businesses. Cinergy's regulated public utilities in Ohio, Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , and Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. serve 1.5 million electric customers and about 500,000 gas customers. In addition, its Indiana regulated company owns 7,000 megawatts of generation. Cinergy's competitive commercial businesses have 6,300 megawatts of generating capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site 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. . Cinergy's integrated businesses make it a Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians leader in providing both low-cost generation and reliable electric and gas service. 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. This document includes statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding benefits of the proposed mergers and Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Transactions, integration plans and expected synergies, anticipated future financial operating performance and results, including estimates of growth. These statements are based on the current expectations of management of Duke and Cinergy. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this document. For example, (1) the companies may be unable to obtain shareholder approvals required for the transaction; (2) the companies may be unable to obtain regulatory approvals required for the transaction, or required regulatory approvals may delay the transaction or result in the imposition The printing of pages on a single sheet of paper in a particular order so that they come out in the correct sequence when cut and folded. of conditions that could have a material adverse effect on the combined company or cause the companies to abandon abandon v. to intentionally and permanently give up, surrender, leave, desert, or relinquish all interest or ownership in property, a home or other premises, a right of way, and even a spouse, family, or children. the transaction; (3) conditions to the closing of the transaction may not be satisfied; (4) problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected; (5) the combined company may be unable to achieve cost-cutting synergies or it may take longer than expected to achieve those synergies; (6) the transaction may involve unexpected costs or unexpected liabilities, or the effects of purchase accounting may be different from the companies' expectations; (7) the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; (8) the businesses of the companies may suffer as a result of uncertainty surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the transaction; (9) the industry may be subject to future regulatory or legislative actions that could adversely affect the companies; and (10) the companies may be adversely affected by other economic, business, and/or competitive factors. Additional factors that may affect the future results of Duke and Cinergy are set forth in their respective filings with the Securities and Exchange Commission ("SEC"), which are available at www.duke-energy.com/investors and www.cinergy.com/investors, respectively. Duke and Cinergy undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additional Information and Where to Find It In connection with the proposed transaction, a registration statement of Duke Energy Holding Corp., which includes a joint proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. of Duke and Cinergy, and other materials has been filed with the SEC on July July: see month. 1, 2005. WE URGE URGE Uniform Rating of Generating Equipment INVESTORS TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT AND THESE OTHER MATERIALS CAREFULLY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT DUKE, CINERGY, DUKE ENERGY HOLDING CORP., AND THE PROPOSED TRANSACTION. Investors may obtain free copies of the registration statement and proxy statement as well as other filed documents containing information about Duke and Cinergy at http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. , the SEC's website. Free copies of Duke's SEC filings are also available on Duke's website at www.duke-energy.com/investors, and free copies of Cinergy's SEC filings are also available on Cinergy's website at www.cinergy.com/investors. Participants in the Solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual Duke, Cinergy and their respective executive officers and directors may be deemed, under SEC rules, to be participants in the solicitation of proxies from Duke's or Cinergy's stockholders with respect to the proposed transaction. Information regarding the officers and directors of Duke is included in its definitive proxy statement for its 2005 Annual Meeting filed with the SEC on March 31, 2005. Information regarding the officers and directors of Cinergy is included in its definitive proxy statement for its 2005 Annual Meeting filed with the SEC on March 28, 2005. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities, holdings or otherwise, will be set forth in the registration statement and proxy statement and other materials to be filed with the SEC in connection with the proposed transaction.
Schedule 1
CINERGY CORP.
CONSOLIDATED STATEMENTS OF INCOME
For the Periods Ended June 30, 2005 and 2004
(unaudited)
(dollars in thousands, except per share amounts)
----------------------------------------------------------------------
Quarter Ended Year To Date
--------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ----------- -----------
Operating Revenues
Electric $914,338 $870,236 $1,840,635 $1,728,672
Gas 79,598 108,082 392,694 458,928
Other 120,327 75,419 225,183 154,795
---------- ---------- ----------- -----------
Total Operating Revenues 1,114,263 1,053,737 2,458,512 2,342,395
Operating Expenses
Fuel, emission
allowances and
purchased power 312,714 298,756 617,677 592,646
Gas purchased 56,089 47,420 264,689 270,936
Costs of fuel resold 93,087 59,062 178,849 116,524
Operation and
maintenance 351,121 332,358 682,910 643,194
Depreciation 130,455 114,331 256,941 219,188
Taxes other than income
taxes 65,083 65,072 144,015 147,319
---------- ---------- ----------- -----------
Total Operating Expenses 1,008,549 916,999 2,145,081 1,989,807
Operating Income 105,714 136,738 313,431 352,588
Equity in Earnings of
Unconsolidated
Subsidiaries 13,576 7,331 18,411 10,079
Miscellaneous Income
(Expense) - Net 14,535 5,033 16,875 (10,475)
Interest Expense 68,649 70,276 132,712 137,671
Preferred Dividend
Requirements of
Subsidiaries 858 858 1,716 1,716
---------- ---------- ----------- -----------
Income Before Taxes 64,318 77,968 214,289 212,805
Income Taxes 13,610 19,464 46,225 51,286
---------- ---------- ----------- -----------
Net Income $50,708 $58,504 $168,064 $161,519
Average Common Shares
Outstanding - Basic 198,492 180,236 197,066 179,749
Earnings Per Common Share
- Basic $0.25 $0.33 $0.85 $0.90
Average Common Shares
Outstanding - Diluted 199,441 182,277 198,075 182,106
Earnings Per Common Share
- Diluted $0.25 $0.32 $0.85 $0.89
Cash Dividends Declared
Per Common Share $0.48 $0.47 $0.96 $0.94
Note: Prior year data has been reclassified to conform with current
year presentation.
Schedule 2
CINERGY CORP.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
----------------------------------------------------------------------
June 30 December 31
2005 2004
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $148,178 $164,541
Notes receivable, current 122,976 214,513
Accounts receivable less accumulated
provision for doubtful accounts of $5,455
at June 30, 2005, and $5,514 at
December 31, 2004 939,715 1,061,140
Fuel, emission allowances, and supplies 502,482 444,750
Prepayments and other 279,138 174,624
Energy risk management current assets 352,397 381,146
------------ ------------
Total current assets 2,344,886 2,440,714
Property, Plant, and Equipment - at Cost
Utility plant in service 10,386,087 10,076,468
Construction work in progress 377,517 333,687
------------ ------------
Total utility plant 10,763,604 10,410,155
Non-regulated property, plant, and
equipment 4,798,284 4,700,009
Accumulated depreciation 5,355,813 5,180,699
------------ ------------
Net property, plant, and equipment 10,206,075 9,929,465
Other Assets
Regulatory assets 988,308 1,030,333
Investments in unconsolidated
subsidiaries 488,411 513,675
Energy risk management non-current assets 306,495 138,787
Notes receivable, non-current 182,815 193,857
Other investments 125,192 125,367
Goodwill and intangible assets 154,047 132,752
Restricted funds held in trust 313,692 358,006
Other 147,685 119,361
------------ ------------
Total other assets 2,706,645 2,612,138
Total Assets $15,257,606 $14,982,317
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $1,255,484 $1,348,576
Accrued taxes 128,713 216,804
Accrued interest 59,016 54,473
Notes payable and other short-term
obligations 865,257 958,910
Long-term debt due within one year 478,046 219,967
Energy risk management current
liabilities 370,960 310,741
Other 134,525 171,188
------------ ------------
Total current liabilities 3,292,001 3,280,659
Non-current Liabilities
Long-term debt 3,975,072 4,227,741
Deferred income taxes 1,554,037 1,597,120
Unamortized investment tax credits 95,413 99,723
Accrued pension and other postretirement
benefit costs 732,361 688,277
Regulatory liabilities 575,729 557,419
Energy risk management non-current
liabilities 299,541 127,340
Other 205,247 225,298
------------ ------------
Total non-current liabilities 7,437,400 7,522,918
Total Liabilities 10,729,401 10,803,577
Cumulative Preferred Stock of Subsidiaries
Not subject to mandatory redemption 62,818 62,818
Common Stock Equity
Common stock - $0.01 par value; authorized
shares - 600,000,000; issued shares -
198,668,812 at June 30, 2005 and
187,653,506 at December 31, 2004;
outstanding shares - 198,528,683 at
June 30, 2005 and 187,524,229 at
December 31, 2004 1,987 1,877
Treasury shares at cost - 140,129 at
June 30, 2005, and 129,277 shares at
December 31, 2004 (4,766) (4,336)
Paid-in capital 2,941,747 2,559,715
Retained earnings 1,594,053 1,613,340
Accumulated other comprehensive income
(loss) (67,634) (54,674)
------------ ------------
Total common stock equity 4,465,387 4,115,922
Total Liabilities and Equity $15,257,606 $14,982,317
Note: Prior year data has been reclassified to conform with current
year presentation.
Schedule 3
CINERGY CORP.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS - 2005
(unaudited)
----------------------------------------------------------------------
----------------------------------------------------------------------
Q1 Q2 Total
----------------------------------------------------------------------
Regulated Businesses
----------------------------------------------------------------------
EPS As Reported $0.39 $0.24 $0.63
Special Items:
Merger and Severance Costs - 0.03 0.03
----------------------------------------------------------------------
EPS Adjusted $0.39 $0.27 $0.66
----------------------------------------------------------------------
----------------------------------------------------------------------
Commercial Businesses
----------------------------------------------------------------------
EPS As Reported $0.23 $0.02 $0.25
Special Items:
Merger and Severance Costs - 0.03 0.03
Mark-to-Market Effect on Asset Hedges 0.12 0.04 0.16
----------------------------------------------------------------------
EPS Adjusted $0.35 $0.09 $0.44
----------------------------------------------------------------------
----------------------------------------------------------------------
Power Technology & Infrastructure Services
----------------------------------------------------------------------
EPS As Reported $(0.02) $(0.01) $(0.03)
Special Items:
Merger and Severance Costs 0.00 0.01 $0.01
----------------------------------------------------------------------
EPS Adjusted $(0.02) $- $(0.02)
----------------------------------------------------------------------
----------------------------------------------------------------------
Cinergy Corp.
----------------------------------------------------------------------
EPS As Reported $0.60 $0.25 $0.85
Special Items 0.12 0.11 $0.23
----------------------------------------------------------------------
EPS Adjusted $0.72 $0.36 $1.08
----------------------------------------------------------------------
Schedule 4
CINERGY CORP.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS - 2004
(unaudited)
----------------------------------------------------------------------
----------------------------------------------------------------------
Q1 Q2 Total
----------------------------------------------------------------------
Regulated Businesses
----------------------------------------------------------------------
EPS As Reported $0.44 $0.19 $0.63
Special Items:
CIN-10 Implementation Costs - 0.03 0.03
----------------------------------------------------------------------
EPS Adjusted $0.44 $0.22 $0.66
----------------------------------------------------------------------
----------------------------------------------------------------------
Commercial Businesses
----------------------------------------------------------------------
EPS As Reported $0.25 $0.17 $0.42
Special Items:
CIN-10 Implementation Costs
and Other Charges - 0.04 0.04
Mark-to-Market Effect on Asset Hedges (0.05) 0.02 (0.03)
----------------------------------------------------------------------
EPS Adjusted $0.20 $0.23 $0.43
----------------------------------------------------------------------
----------------------------------------------------------------------
Power Technology & Infrastructure Services
----------------------------------------------------------------------
EPS As Reported $(0.12) $(0.04) $(0.16)
Special Items:
Impairment Writedowns and
Other Charges 0.11 0.02 0.13
----------------------------------------------------------------------
EPS Adjusted $(0.01) $(0.02) $(0.03)
----------------------------------------------------------------------
----------------------------------------------------------------------
Cinergy Corp.
----------------------------------------------------------------------
EPS As Reported $0.57 $0.32 $0.89
Special Items 0.06 0.11 0.17
----------------------------------------------------------------------
EPS Adjusted $0.63 $0.43 $1.06
----------------------------------------------------------------------
For 2004, the Regulated and Commercial segments have each been
restated from prior presentations to reflect the reclassification of
PSI's off-system sales from the Commercial Businesses to the Regulated
Businesses.
Schedule 5
CINERGY CORP.
BUSINESS SEGMENT SUMMARY INFORMATION
For the Quarter Ended June 30
(unaudited)
(dollars in thousands, except per share amounts)
----------------------------------------------------------------------
2005 2004
------------ -----------
Regulated Businesses
--------------------
Net Income $49,659 $34,260
Earnings Per Share - diluted $0.24 $0.19
Operational Statistics:
Electric Retail MWh Sales and
Transportation 12,802,042 12,836,087
Gas Retail Mcf Sales and Transportation 13,343,597 13,350,193
Electric Customers (End of Period) 1,562,722 1,543,967
Gas Customers (End of Period) 509,238 509,444
Commercial Businesses
---------------------
Net Income $3,518 $31,255
Earnings Per Share - diluted $0.02 $0.17
Power Technology & Infrastructure Services
------------------------------------------
Net Income $(2,469) $(7,011)
Earnings Per Share - diluted $(0.01) $(0.04)
For 2004, the Regulated and Commercial segments have each been
restated from prior presentations to reflect the reclassification of
PSI's off-system sales from the Commercial Businesses to the Regulated
Businesses.
Schedule 6
CINERGY CORP.
BUSINESS SEGMENT EARNINGS DRIVER ANALYSIS
For the Quarter Ended June 30, 2005
(unaudited)
----------------------------------------------------------------------
Regulated Businesses
--------------------
Earnings Per Share - diluted - 2004 (Adjusted(a)) $0.22
Weather 0.01
Price increases 0.11
Regulatory deferrals 0.02
Regulatory transition charge amortization (0.01)
Operation and maintenance (0.03)
Depreciation (0.03)
Financing and dilution (0.03)
Other - net 0.01
----------
Earnings Per Share - diluted - 2005 (Adjusted(a)) $0.27
=========
Commercial Businesses
---------------------
Earnings Per Share - diluted - 2004 (Adjusted(a)) $0.23
Price increases 0.03
Fuel costs (0.03)
Optimization activities 0.05
Operation and maintenance (0.02)
Power marketing, trading and origination (0.02)
Gas marketing, trading and origination (0.13)
Financing and dilution 0.02
Other - net (0.04)
----------
Earnings Per Share - diluted - 2005 (Adjusted(a)) $0.09
=========
Power Technology & Infrastructure Services
------------------------------------------
Earnings Per Share - diluted - 2004 (Adjusted(a)) ($0.02)
Results of investments 0.02
----------
Earnings Per Share - diluted - 2005 (Adjusted(a)) $0.00
=========
For 2004, the Regulated and Commercial segments have each been
restated from prior presentations to reflect the reclassification of
PSI's off-system sales from the Commercial Businesses to the
Regulated Businesses.
(a) See Schedules 3 and 4 for a reconciliation to the most comparable
GAAP measure.
Schedule 7
CINERGY CORP.
BUSINESS SEGMENT SUMMARY INFORMATION
For the Year to Date June 30
(unaudited)
(dollars in thousands, except per share amounts)
----------------------------------------------------------------------
2005 2004
----------- -----------
Regulated Businesses
--------------------
Net Income $125,555 $115,121
Earnings Per Share - diluted $0.63 $0.63
Operational Statistics:
Electric Retail MWh Sales and Transportation 26,112,328 26,203,453
Gas Retail Mcf Sales and Transportation 51,880,766 55,144,422
Electric Customers (End of Period) 1,562,722 1,543,967
Gas Customers (End of Period) 509,238 509,444
Commercial Businesses
---------------------
Net Income $48,710 $75,991
Earnings Per Share - diluted $0.25 $0.42
Power Technology & Infrastructure Services
------------------------------------------
Net Income $(6,201) $(29,593)
Earnings Per Share - diluted $(0.03) $(0.16)
For 2004, the Regulated and Commercial segments have each been
restated from prior presentations to reflect the reclassification of
PSI's off-system sales from the Commercial Businesses to the Regulated
Businesses.
Schedule 8
CINERGY CORP.
BUSINESS SEGMENT EARNINGS DRIVER ANALYSIS
For the Year to Date June 30, 2005
(unaudited)
----------------------------------------------------------------------
Regulated Businesses
--------------------
Earnings Per Share - diluted - 2004 (Adjusted(a)) $0.66
Weather (0.01)
Electric and gas sales volumes 0.01
Price increases 0.23
Regulatory deferrals 0.04
Regulatory transition charge amortization (0.04)
Operation and maintenance (0.07)
Depreciation (0.08)
Financing and dilution (0.08)
----------
Earnings Per Share - diluted - 2005 (Adjusted(a)) $0.66
==========
Commercial Businesses
---------------------
Earnings Per Share - diluted - 2004 (Adjusted(a)) $0.43
Weather (0.01)
Electric sales volumes 0.01
Price increases 0.07
Fuel costs (0.06)
Optimization activities 0.15
Operation and maintenance (0.03)
Power marketing, trading and origination 0.02
Gas marketing, trading and origination (0.13)
Financing and dilution 0.01
Other - net (0.02)
----------
Earnings Per Share - diluted - 2005 (Adjusted(a)) $0.44
==========
Power Technology & Infrastructure Services
------------------------------------------
Earnings Per Share - diluted - 2004 (Adjusted(a)) ($0.03)
Results of investments 0.01
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Earnings Per Share - diluted - 2005 (Adjusted(a)) ($0.02)
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For 2004, the Regulated and Commercial segments have each been
restated from prior presentations to reflect the reclassification of
PSI's off-system sales from the Commercial Businesses to the Regulated
Businesses.
(a) See Schedules 3 and 4 for a reconciliation to the most comparable
GAAP measure.
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