DPL Reports Fourth-Quarter EPS of 21 Cents, Up 40 Percent From a Year Ago, as Colder Weather Drives Increased Revenues.Business Editors DAYTON Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and , Ohio--(BUSINESS WIRE)--Feb. 6, 2003 Company Reports Full-Year Earnings of 73 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. Or $1.50 Per Share Excluding Second-Quarter 2002 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. ; 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. Provides Guidance on 2003 Results DPL Inc. (NYSE NYSE See: New York Stock Exchange :DPL) today reported fourth-quarter basic earnings of 21 cents per share, up 40% from 15 cents per share a year ago. For the full year, the Company had earnings of 73 cents per share, compared with earnings of $1.66 per share in 2001. DPL's 2002 full-year results include a 77 cent per share impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. write-down of certain assets in the Company's financial portfolio. Excluding this, DPL had earnings of $1.50 per share for 2002. Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and F. Koziar, President and Chief Executive Officer, said, "DPL had strong fourth-quarter performance, driven primarily by increased residential and commercial sales due to the colder weather. The Company's operational results for both the quarter and the year demonstrated DPL's successful efforts to enhance productivity and increase operating efficiencies." "Our near-term near-term adj. Of, for, or involving a short period of time in the near future. strategy -- given the uncertainties and challenges of the current economic environment -- is to focus on what we do best: operating efficient, low-cost facilities and achieving best-in-class targets," added Koziar. "DPL is a solid, asset-based energy company operating with a strong and secure cash flow, stable customer base and solid regulatory relationships. These are enviable en·vi·a·ble adj. So desirable as to arouse envy: "the enviable English quality of being able to be mute without unrest" Henry James. fundamentals for any business, and we are working hard to maintain them going forward." Fourth-Quarter Results DPL reported fourth-quarter electric revenues of $282.2 million, up 11.0% from $254.3 million a year ago. Retail revenues climbed 6% to $255.1 million, with this increase attributed to colder weather. Wholesale revenues doubled to $27.2 million as increased plant availability and fewer planned outages resulted in additional generation output. As a result, purchased power costs were reduced by 16.3% to $11.8 million and fuel costs increased 15.1% to $54.1 million in the quarter, as compared to the prior year. DPL's financial asset portfolio had a $13.9 million loss, compared with a year-ago loss of $22.8 million. The portfolio returned $10.9 million of cash gains for the quarter. DPL reported fourth-quarter net income of $25.4 million, up 46% from $17.4 million in the same quarter a year ago. Full-Year Results DPL reported 2002 electric revenues of $1.19 billion, as compared to $1.20 billion a year ago. Retail electric revenues rose by 4% to $1.05 billion, driven by increased cooling and 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. . Wholesale revenues decreased by 30.2% to $124.5 million, as a result of the soft 2002 wholesale energy market. Fuel costs for 2002 were $227.0 million, down 2.3% from a year ago as a result of increased generation availability at lower cost coal plants. Purchased power costs increased by 9.1% to $79.3 million from $72.7 million a year ago as a result of unplanned outages partially offset by lower wholesale prices. Operation and maintenance expenses for the year were reduced 4.0% to $159.4 million from $166.0 million a year ago, reflecting continuing efforts to enhance efficiencies and reduce costs, as well as the timing and extent of power plant planned maintenance. DPL's financial asset portfolio, after a $148.4 million write-down, reflecting the effects of global market conditions and current economics, political uncertainty and currency devaluations Currency devaluation A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold. in certain non-U.S. markets, had a full-year loss of $105.7 million, compared with year-ago income of $25.2 million. For the year, the portfolio returned cash gains of $82 million. To date, the portfolio has cumulative gains of $430 million and a net gain of $115 million. "The objective of the financial asset portfolio has been and continues to be, first, asset preservation and, second, earning an above-market rate while seeking to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. risk through
diversification DiversificationA risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. ," said Koziar. "To date we have achieved this and we expect to continue to do so." DPL reported full-year net income of $87.3 million, or $179.3 million before the write-down, compared to $197.9 million a year ago. Outlook for 2003 Commenting on the year ahead, Koziar said, "Considering current economic and industry conditions, DPL is well positioned. Our operations are strong and efficient, costs are controlled and major construction initiatives are behind us. We have no need for external financing In the theory of capital structure, External financing is the phrase used to describe funds that firms obtain from outside of the firm. It is contrasted to internal financing which consists mainly of profits retained by the firm for investment. in 2003, credit lines are in place and our dividend is secure. Capital expenditures, including completion of our NOx SCR (Sequence Control Register) See program counter. program, will be internally financed from 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. . We expect DPL to continue to generate excellent operational results and achieve low production costs, however, we anticipate a continuing soft market for wholesale energy and capacity which may affect 2003 results." The Company noted that earnings for the current year may also be affected by increased corporate costs, primarily legal, regulatory and pension expenses, and the timing of planned power plant maintenance. Additionally, the Company expects to experience pressure on sales from continued weakness in the economy. The Company currently anticipates full-year 2003 basic earnings per share from the utility operations in the range of $1.10 to $1.15, excluding results from the Company's financial asset portfolio. About DPL DPL Inc. is a diversified diversified (di·verˑ·s 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 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. 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 2001 Annual Report on Form 10-K/A. See attached tables.
DPL Inc.
FINANCIAL DATA
(Unaudited)
(in millions, except per share amounts)
Quarter Ended
December 31,
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2002 2001
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Earnings Per Share of Common Stock - Basic $0.21 $0.15
Earnings Per Share of Common Stock - Diluted $0.21 $0.14
Earnings $25.4 $17.4
Average Number of Common Shares Outstanding:
Basic 119.0 118.9
Diluted 119.0 122.9
Year Ended
December 31,
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2002 2001
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Earnings Per Share of Common Stock - Basic $0.73 $1.66
Earnings Per Share of Common Stock - Diluted $0.72 $1.57
Earnings $87.3 $197.9
Average Number of Common Shares Outstanding:
Basic 119.1 119.1
Diluted 121.9 126.6
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