DPL Reports First Quarter EPS of 44 Cents.Business Editors DAYTON, Ohio--(BUSINESS WIRE)--May 1, 2003 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 first quarter 2003 earnings of $0.44 per share, compared with earnings of $0.34 per share in the first quarter 2002. Results for the first quarter 2003 included a net after-tax gain Net after-tax gain Capital gain after income taxes have been paid. of $0.14 per share from the cumulative effect of an accounting change and an investment loss of $0.02 per share. Earnings per share numbers are before share dilution. During the first quarter, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 11% to $106.9 million as a result of increased retail and wholesale sales and margins. Retail residential and commercial revenues increased $13.3 million or 8% as a result of higher sales volume driven by colder weather as compared to 2002 with heating degree days Heating degree day (HDD) and cooling degree day (CDD) are quantitative indices demonstrated to reflect demand for energy to heat or cool houses and businesses. These indices are derived from daily temperature observations and power demand. increasing 25% compared to the first quarter of last year. Wholesale capacity and energy revenues increased $10.2 million or 52% as a result of increased operating output at DPL's generating units and higher average wholesale electric commodity prices. Fuel costs increased $8.6 million or 18% as a result of higher plant availability and increased production. Purchased power costs decreased $1.7 million or 8% as a result of lower purchased power volumes resulting from increased production and higher plant availability, partially offset by higher market prices. Investment income for the current quarter was comprised of realized gains and income from public securities of $3.2 million and from private securities under the cost method of $5.0 million, less losses of $11.8 million from private securities under the equity method. Investment income for the first quarter of last year was $4.5 million of realized gains and investment income from the public securities and $12.0 million of income from private investments under the cost method, offset by losses of $10.4 million for equity method private investments. Other income decreased $7.5 million as a result of income recognized in the prior year for the business interruption insurance Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril policy related to 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. . DPL's operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. increased 124%, driven by improvements in operating income and decreased cash required for working capital. The Company had no short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. outstanding at quarter end versus $61.0 million at the end of the first quarter of 2002. Construction additions were $21 million for the first three months of 2003 and are expected to approximate $110 million for the year. Current year additions relate to DPL's environmental compliance program, power plant equipment, and the installation of meters and distribution lines. DPL expects to finance its 2003 construction program, debt maturities, and investments in financial assets Financial assets Claims on real assets. with internal funds internal funds Funds that are raised within a firm. For example, income after taxes and noncash expenses, such as depreciation, provide a firm with funds to use in the acquisition of investments. . In 2004, DPL expects to finance its construction program and investments in financial assets with internal funds. Debt maturities in 2004 are expected to be financed with a combination of internal and external funds External funds Funds originating from a source outside the corporation to increase cash flow and to aid in expansion efforts, e.g., bank loan or bond offering. external funds The funds that are raised from sources outside a firm. . The level of external funding necessary to finance any debt maturities will depend upon market and other conditions. DPL has sold forward approximately 70% of its excess peaking capacity for the 2003 summer period. Remaining excess peaking capacity will be sold either on a prescheduled basis as opportunities for attractive margins emerge or on the spot market. About DPL DPL Inc. is a diversified regional energy company. DPL's principal subsidiaries include The Dayton Power & Light Company (DP&L) and DPL Energy. DP&L provides electric services to over 500,000 retail customers in West Central Ohio. DPL Energy markets over 4,600 megawatts of generation capacity throughout the eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . DPL Inc., through its subsidiaries, ranks among the top energy companies in generation efficiency and productivity. Further information on DPL Inc. can be found at www.dplinc.com. Reported Results Unaudited This press release may contain certain forward-looking statements regarding plans and expectations for the future. Investors are cautioned that actual outcomes may vary materially from those projected due to various factors beyond DPL's control. Such matters are described in the Company's 2002 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. .
DPL Inc.
FINANCIAL DATA
(Unaudited)
(in millions, except per share amounts)
Three Months Ended
March 31,
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2003 2002
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Earnings Per Share of Common Stock - Basic:
Earnings Before Unusual Items $0.30 $0.34
Earnings After Unusual Items $0.44 $0.34
Earnings Per Share of Common Stock - Diluted:
Earnings After Unusual Items $0.44 $0.33
Earnings Before Unusual Items $36.1 $40.6
Earnings After Unusual Items $53.1 $40.6
Average Number of Common Shares Outstanding:
Basic 119.8 119.1
Diluted 119.8 123.6
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