DPL Reports 3rd Quarter 2009 Earnings; Affirms 2009 and 2010 Earnings Guidance.DAYTON, Ohio Dayton is a city in southwestern Ohio, United States. It is the county seat and largest city of Montgomery County. As of the 2005 census estimate, the population of Dayton was 158,873. -- DPL (Digital PowerLine) An earlier technology for transmitting a 1 Mbps data signal over electric power lines from Nortel Networks. It was developed in the late 1990s, but later abandoned due to implementation difficulties. See broadband over power lines. Inc. (NYSE NYSE See: New York Stock Exchange : DPL) today reported third quarter 2009 earnings of $0.59 per share, compared to $0.42 per share for the same period in 2008. For the nine months ended September 30, 2009, earnings were $1.58 per share compared to $1.49 for the same period in 2008. Earnings per share information reported in this press release are based on 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. shares outstanding unless otherwise noted. "Solid operational performance, and continued cost control combined to mitigate the effects of the economy and the unseasonably mild weather of the third quarter," said Paul Barbas, DPL 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. . "Specifically, generation output increased 23%, resulting in reduced purchased power and higher margin." Third Quarter 2009 Financial Results Revenues decreased $7.2 million to $407.3 million for the three months ended September 30, 2009 compared to $414.5 million for the same period in 2008. This decrease was primarily the result of lower retail sales volume, lower average wholesale market prices, and decreased RTO (Recovery Time Objective) The amount of time a computer system or application can stop functioning before it is considered intolerable to the enterprise. It can be computed to be from seconds to days, depending on how critical the application is to the organization. capacity and other revenues, partially offset by higher average retail rates and increased wholesale volume. Retail revenues increased $3.1 million resulting from the continued recovery of environmental costs and the implementation of the transmission cost recovery rider, offset by an 11% decrease in retail sales driven largely by milder weather and the economic recession. Total cooling degree days were 29% below the same period in 2008 and 34% below normal. Wholesale revenues increased $3.0 million primarily as a result of a 167% increase in wholesale sales volume, partially offset by a 58% decrease in average wholesale market prices. RTO capacity and other revenues decreased $13.3 million compared to the same period in the prior year due largely to a decrease in PJM PJM Pacific Journal of Mathematics PJM Project Manager PJM Puerto Jimenez, Costa Rica (Airport code) PJM Pennsylvania New Jersey Maryland Interconnection LLC (Mid-Atlantic region power pool) transmission and congestion The condition of a network when there is not enough bandwidth to support the current traffic load. congestion - When the offered load of a data communication path exceeds the capacity. revenues of $9.8 million and a decrease in PJM capacity revenue of $3.7 million. [TABLE OMITTED] For the nine months ended September 30, 2009, revenues decreased 2% to $1,183.5 million from $1,209.4 million for the same period in 2008. Fuel Costs, which include coal (net of gains on sales), gas, oil, and emission allowances, increased $22.2 million for the three months ended September 30, 2009 compared to the same period in 2008 primarily due to a $17.7 million decrease in gains realized from the sale of coal and a 23% increase in generation output due to improved plant performance. [TABLE OMITTED] For the nine months ended September 30, 2009, fuel costs increased $49.2 million, or 26%, to $241.7 million compared to $192.5 million for the same period in 2008. Purchased Power costs decreased $54.8 million for the three months ended September 30, 2009 compared to the same period in 2008. The decrease in purchased power costs was due primarily to a 70% decrease in purchased power volume, a 59% decrease in average market prices, and lower RTO-related costs of $5.0 million. [TABLE OMITTED] Purchased power costs decreased $100.9 million, or 35%, to $188.0 million for the nine months ended September 30, 2009 compared to the same period in 2008. Gross margin increased $25.4 million, or 11%, to $257.9 million for the three months ended September 30, 2009 compared to the same period in 2008. For the nine months ended September 30, 2009, gross margin increased $25.8 million compared to the same period in 2008. Operation and maintenance expense increased $5.6 million for the three months ended September 30, 2009 compared to the same period in 2008. This increase was primarily the result of higher employee benefit, incentive and pension expenses of $4.5 million, a $1.4 million increase in deferred compensation costs, and a $1.3 million increase in the low-income assistance program funded by the Universal Service Fund (USF USF University of South Florida USF Universal Service Fund (often part of phone bill in US) USF University of San Francisco USF University of Sioux Falls USF University of St. ) rate rider. These increases were partially offset by lower operating costs operating costs npl → gastos mpl operacionales at generation facilities of $4.1 million. For the nine months ended September 30, 2009, operation and maintenance expense increased $25.9 million to $226.3 million compared to the same period in 2008. Depreciation expense for the three months ended September 30, 2009 increased $0.8 million compared to the same period in 2008 primarily as a result of higher asset balances due largely to the completion of the FGD FGD Fire & Gas Detection FGD Flue Gas Desulfurization FGD Focus Group Discussion FGD Feature Group D FGD Forged FGD Familial Glucocorticoid Deficiency projects in 2008. For the nine months ended September 30, 2009, depreciation costs increased $5.3 million, or 5%, to $107.8 million compared to the same period in 2008. General Taxes decreased $0.5 million for the three months ended September 30, 2009 compared to the same period in 2008 primarily due to lower property tax accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. . For the nine months ended September 30, 2009, general taxes decreased 3%, or $3.2 million, to $89.8 million compared to the same period in 2008. Amortization of Regulatory Assets decreased $0.8 million for the three months ended September 30, 2009 compared to the same period in 2008 primarily due to the 2004 and 2005 storm costs being fully recovered in the third quarter of 2008. For the nine months ended September 30, 2009, amortization of regulatory assets decreased $3.1 million to $4.5 million compared to the same period in 2008. Interest expense for the three months ended September 30, 2009 decreased $2.3 million, or 11%, compared to the same period in 2008. This decrease was primarily the result of interest savings related to the redemption of DPL's $175 million 8% Senior Notes in March 2009, partially offset by lower capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. costs of $1.0 million. For the nine months ended September 30, 2009, interest expense decreased $7.2 million, or 11%, to $60.7 million compared to the same period in 2008. Income Taxes for the three months ended September 30, 2009 increased $1.8 million, or 7%, compared to the same period in 2008, primarily reflecting an increase in pre-tax book income partially offset by a decrease in the effective tax rate. For the nine months ended September 30, 2009, income taxes decreased $1.7 million to $84.2 million compared to the same period in 2008. Liquidity and Cash Flow DPL's cash and cash equivalents totaled $62.8 million at September 30, 2009, compared to $62.5 million at December 31, 2008, an increase of $0.3 million. The increase in cash and cash equivalents was primarily attributed to $292.2 million of cash generated from operating activities, net borrowings from the revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facilities of $115 million, net withdrawals of $6.7 million from restricted funds drawn to fund pollution control capital expenditures and $5 million of cash from the maturity of a short-term investment, partially offset by cash paid to retire $175 million of 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. , $134.6 million of capital expenditures, $95.7 million of dividends paid on common stock, and $15.9 million used to repurchase outstanding stock warrants. At September 30, 2009, DPL had $7.9 million of restricted funds held in trust to fund pollution control capital expenditures. Construction additions were $100.7 million and $168.1 million during the nine month periods ended September 30, 2009 and 2008, respectively, and are expected to be approximately $161 million in 2009. Construction additions in 2009 are expected to be financed with a combination of cash on hand, short-term financing and cash flows from operations. Capital projects are subject to continuing review and are revised in light of changes in financial and economic conditions, load forecasts, legislative and regulatory developments and changing environmental standards, among other factors. For the period 2009 through 2011, DPL is projecting to spend an estimated $540 million on capital projects. This does not include projected capital costs associated with the AMI/Smart Grid plan The grid plan or gridiron plan is a type of city plan in which streets run at right angles to each other, forming a . Ancient grid plans The grid plan dates from antiquity; some of the earliest planned cities were built using grids. which was filed with the Public Utilities Commission of Ohio The Public Utilities Commission of Ohio (PUCO) is an agency of Federal State of Ohio that is charged with the regulation of utility service providers such as those of electricity, natural gas, and telecommunications as well as railroad safety and intrastate hazardous on August 4, 2009. 2009 - 2010 Earnings Guidance DPL has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its 2009 earnings guidance of $2.00 to $2.20 per share and its 2010 earnings guidance of $2.35 to $2.60 per share. The Company will discuss its 2009 and 2010 earnings guidance during its third quarter conference call and webcast. Common Stock Warrant Exercise; DPL Board Approves Limited Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program On October 26, 2009, a common stock warrant holder exercised 3.5 million warrants. As a result of this exercise, DPL issued 3.5 million shares of common stock from treasury and in turn received $73.5 million in cash. On October 28, 2009 the DPL Board of Directors approved a Stock Repurchase Program under which DPL may use proceeds it receives from the exercise of warrants to repurchase common stock from time to time in the open market, through private transactions or otherwise. The Program will run through June 30, 2012, which is three months after the end of the warrant exercise period. Conference Call and Webcast At 9:30 a.m. Eastern on Thursday, October 29, DPL will host a conference call and Webcast to review third quarter 2009 financial results and discuss its earnings guidance. The conference call will be available in listen-only mode for investors, media and the public by dialing 888.679.8035 for domestic participants or 617.213.4848 for international callers. The access code is 30833453. Please dial into the call at least 15 minutes prior to the start of the call to register. The Webcast can be accessed real-time at www.dplinc.com. Interested parties are encouraged to visit the Web site at least 15 minutes prior to the start of the Webcast to register. The Webcast will be available for replay on the DPL Web site in the investor relations Investor relations The process by which the corporation communicates with its investors. section following the conference call. About DPL DPL Inc. (NYSE:DPL) is a regional energy company. DPL was named one of Forbes' "100 Most Trustworthy Companies" in 2009. DPL's principal subsidiaries include The Dayton Power and Light Company (DP&L); DPL Energy, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (DPLE DPLE Declarative Programming Languages in Education (conference) DPLE Digital Principle Local Exchange DPLE Danish Primary Laboratory for Electricity ); and DPL Energy Resources, Inc. (DPLER). DP&L, a regulated electric utility, provides service to over 500,000 retail customers in West Central Ohio; DPLE engages in the operation of merchant peaking generation facilities; and DPLER is a competitive retail electric supplier in Ohio, selling to major industrial and commercial customers. DPL, through its subsidiaries, owns and operates approximately 3,700 megawatts of generation capacity, of which 2,800 megawatts are low cost coal-fired units and 900 megawatts are natural gas and diesel peaking units. Further information can be found at www.dplinc.com. Certain statements contained in this press release 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. Matters discussed in this press release that relate to events or developments that are expected to occur in the future, including management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters constitute forward-looking statements. Forward-looking statements are based on management's beliefs, assumptions and expectations of future economic performance, taking into account the information currently available to management. These statements are not statements of historical fact and are typically identified by terms and phrases such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," and similar expressions. Such forward-looking statements are subject to risks and uncertainties, and investors are cautioned that outcomes and results may vary materially from those projected due to various factors beyond our control, including but not limited to: abnormal or severe weather and catastrophic weather-related damage; unusual maintenance or repair requirements; changes in fuel costs and purchased power, coal, environmental emissions, natural gas, oil, and other commodity prices; volatility and changes in markets for electricity and other energy-related commodities; performance of our suppliers and other counterparties Counterparties The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position. ; increased competition and 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. in the electric utility industry; increased competition in the retail generation market; changes in interest rates; state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, emission levels and regulations, rate structures or tax laws; changes in federal and/or state environmental laws and regulations to which DPL and its subsidiaries are subject; the development and operation of Regional Transmission Organizations  This August 2006 is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. (RTOs), including PJM Interconnection, L.L.C. (PJM) to which DPL's operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. (DP&L) has given control of its transmission functions; changes in our purchasing processes Purchasing Purchasing is the formal process of buying goods and services. The Purchasing Process can vary from one organization to another but there are some key elements that are common throughout The process usually starts with a 'Demand' or requirements , pricing, delays, employee, contractor, and supplier performance and availability; significant delays associated with large construction projects; growth in our service territory and changes in demand and demographic patterns; changes in accounting rules and the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; financial market conditions, including impacts the current financial crisis may have on our business and financial condition; the outcomes of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and regulatory investigations, proceedings or inquiries; general economic conditions; and the risks and other factors discussed in DPL's and DP&L's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of the document in which they are made. We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. The information contained herein is submitted for general information and not in connection with any sale or offer for sale of, or 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 of any offer to buy, any securities. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] Inquiries concerning this report should be directed to: Craig Jackson Craig Jackson may be:
The information contained herein is submitted for general information and not in connection with any sale or offer for sale of, or solicitation of any offer to buy, any securities. |
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