Connecticut Energy announces third quarter earnings and declares dividend.BRIDGEPORT, Conn.--(BUSINESS WIRE)--July 23, 1996--Connecticut Energy Corp. (NYSE NYSE See: New York Stock Exchange : CNE (Certified NetWare Engineer) See Novell certification. ) today reported earnings of $2.13 per share for the first nine months of fiscal 1996. For the three month period ended June 30, 1996 the company reported a loss of only eight cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared to a loss of 23 cents during the same period in 1995. It is typical for the company to report a loss in the third quarter because a large portion of its annual margin comes from space heating Space heating is the heating of a space, usually enclosed, such as a house or room. A space heater keeps the air and surroundings at a comfortable temperature for people or animals, or even plants in a greenhouse. during the winter months. "The significant improvement in third quarter results was due to higher margins from both firm and interruptible customers as well as our continued success in lowering operations and maintenance expenses," said Carol A. Forest, vice president finance, CFO See Chief Financial Officer. and treasurer. "Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. from sales to our firm customers during the quarter were over five percent higher than last year due to growth in our customer base. "We did not reach our interruptible margin sharing target until June due to the colder weather in the fiscal year 1996 heating season," Forest noted. "In fiscal year 1995, the target was reached in early April due to warm weather that allowed us to increase deliveries to interruptible customers during that heating season. Our interruptible margin sharing agreement provides for the retention of all margins from deliveries to interruptible customers until the target is reached, after which such margins are shared between firm customers and shareholders on an 80 percent- 20 percent split basis. "On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, growth in margins has also remained strong," continued Forest. "Firm margins for the nine months ending June 30, 1996 were approximately $1.7 million higher than the same period last year, an increase of approximately two percent on a normalized basis. This increase reflects customer growth since our principal subsidiary, The Southern Connecticut Gas Company, has a Weather Normalization In relational database management, a process that breaks down data into record groups for efficient processing. There are six stages. By the third stage (third normal form), data are identified only by the key field in their record. Adjustment. "In addition, as a result of our stringent cost control efforts, we have been able to reduce operations and maintenance expenses by approximately $1.3 million or three percent from the same period last year," stated Forest. "We are confident that our fiscal year 1996 earnings will be in line with analysts' expectations and continue the company's unmatched record of consecutive annual growth in earnings per share." At its meeting today the board of directors declared a quarterly dividend of 33 cents per share on its common stock, payable September 30, 1996 to shareholders of record at the close of business on September 13, 1996. This is the company's 347th consecutive quarterly dividend. The indicated annual rate is $1.32. Connecticut Energy Corp. is a holding company primarily engaged in the retail distribution of natural gas through its wholly-owned subsidiary, The Southern Connecticut Gas Company (Southern). Southern delivers natural gas in 22 Connecticut commmunities to approximately 157,000 customers which represent approximately 191,000 end-users, including over 175,000 firm residential units. Through its subsidiary, CNE Energy Services Group Inc., the company also provides an array of energy services to commercial and industrial customers throughout New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , from installation and maintenance of equipment to procuring Procuring, in general, is the act of acquiring goods or services, usually by contract. It may refer to:
n a group of dental professionals pooling their financial resources to purchase large quantities of supplies and equipment for the purpose of obtaining a discount. through another subsidiary, Connecticut Energy Development Corp. -0-
CONNECTICUT ENERGY CORPORATION
PRINCIPAL ITEMS
(000s omitted, except per share data)
Three Months Nine Months
Ended Ended
June 30 June 30 June 30 June 30
1996 1995 1996 1995
Operating Revenues $43,954 $39,755 $233,918 $208,562
Gross Margin $21,127 $19,063 $106,832 $104,595
Net (Loss) Income ($ 684) ($ 1,985) $ 18,980 $ 18,671
(Loss) Earnings
Per Share ($ 0.08) ($ 0.23) $ 2.13 $ 2.13
Weighted Average
Shares 8,942 8,797 8,906 8,754
CONTACT: Connecticut Energy Corp., Bridgeport Judith E. Falango, 203/382-8156 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion