DPL Reports Third-Quarter EPS of $0.62, up 15 Percent From $0.54 a Year Ago; For the First Nine Months, Earnings Climb to $1.34 Per Share.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)--Nov. 6, 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 solid third-quarter 2003 results, with basic earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) of $0.62, up 15% from $0.54 a year ago. For the first nine months of 2003, DPL reported EPS of $1.34, compared with EPS of $0.52 in the same period a year ago. EPS amounts are before 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. . "DPL's third-quarter results were enhanced by investment income of $54.5 million, which includes realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. and income on the financial asset portfolio and the effect of the Company's interest-rate hedge," said Caroline E. Muhlenkamp, Group Vice President and Interim Chief Financial Officer. "This income helped to offset a weather-related reduction in retail sales revenue of $22 million and increased O&M expense of $6 million, as compared to last year. As the year has progressed, DPL's liquidity has continued to increase. When our cash of $235.2 million, excluding proceeds from our recent debt issue, is combined with the value of our public securities, DPL has $384 million in total liquidity, up $83 million since the end of the second quarter of 2003." "We continue to execute against our previously announced plan to strengthen DPL's balance sheet and to capture interest-rate savings," added Muhlenkamp. "In the third quarter, DP&L issued $470 million of First Mortgage Bonds at a rate of 5.125% and announced the redemption of two higher coupon series of First Mortgage Bonds, moving us toward our interest-expense-reduction goal of $20 million. We remain on track to achieve a $300 million reduction in 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. , bringing our debt-to-total-capital ratio below 60% by the end of 2005." "With the recently approved 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 price-stabilization order, DP&L customers will continue to enjoy stable prices through 2008," said Muhlenkamp. "DP&L has not raised its rates since 1994. Our focus remains to profitably operate our coal-fired generation, deliver reliable service to our customers and harvest our financial asset portfolio. Our earnings outlook from the energy business for full-year 2003 continues to be in the range of $1.15-to-$1.25 per share. This outlook excludes results from the financial asset portfolio." In the third quarter, DPL's retail electric revenues decreased by $22.5 million due to reduced sales resulting from mild weather. The decline was partially offset by a $4.0 million increase in wholesale revenues resulting from the sale of available generating capacity into the wholesale market at favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market rates. For the nine months ended September 2003, electric retail revenues were down $24.5 million primarily because of mild summer temperatures, while wholesale revenues increased by $21.8 million due to higher market rates and a 5% increase in sales. Third-quarter fuel costs decreased by $5.6 million, or 8%, due to lower retail sales. For the first nine months, fuel costs increased by $0.4 million, primarily because of increased generation output. Purchased power costs rose $4.3 million, or 6%, in the first nine months, reflecting higher market prices despite the use of internal generation to support retail and wholesale sales. Operation and maintenance expense increased by $5.7 million in the third quarter and by $21.4 million in the first nine months, primarily as a result of higher generating plant costs associated with the increase in production and the expensing of the cost of removal for retired assets required by SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 143 effective January 1, 2003. Higher corporate costs, including increased insurance premiums, also contributed to the increase in both periods. Depreciation and amortization expense increased by $0.3 million, or 1%, in the quarter, and by $3.2 million, or 3%, in the first nine months as a result of the Company's $179 million investment in 480 megawatts of peaking generation capacity in the summer of 2002, and the completion of selective catalytic reduction Selective catalytic reduction (SCR) is a means of removing nitrogen oxides, often the most abundant and polluting component in exhaust gases, through a chemical reaction between the exhaust gases, a (reductant) additive, and a catalyst. installations at certain power plants. Capital expenditures were $90.4 million in the first nine months and are expected to be approximately $110 million for the full year. Current year expenditures relate to DPL's environmental compliance program, power plant equipment, and the transmission and distribution system, in order to provide the reliable service that DP&L customers have come to expect. DPL's financial asset portfolio consists of $987 million of public and private securities and $81 million of cash, which is included in cash and temporary investments, for a combined total of $1.068 billion at September 30, 2003. Other income/(deductions) decreased in the third quarter by $8.8 million compared with a year ago primarily due to $10.9 million of income related to a release from the business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. policy reserve in the third quarter of 2002. Other income/(deductions) increased by $29.1 million in the first nine months primarily as a result of the settlement of 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 coverage 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. in the second quarter of 2003. The Company reported today in its Third Quarter 2003 Form 10-Q Form 10-Q See 10-Q. that a tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. settlement of pending shareholder lawsuits, subject to court approval, had been reached. As a result of this settlement, a one-time after-tax charge of approximately $0.35 per share will be reflected in the fourth quarter of 2003. 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. Certain statements contained in this 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 presented which 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 expectation of the Company's future economic performance, taking into account the information currently available to management. These statements are not statements of historical fact. 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 many factors beyond DPL's control. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which the forward-looking statement is based. See attached tables.
DPL Inc.
FINANCIAL DATA
(Unaudited)
(in millions, except per share amounts)
Three Months Ended
September 30,
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2003 2002
--------- --------
Earnings Per Share of Common Stock - Basic: $ 0.62 $ 0.54
Earnings Per Share of Common Stock - Diluted: $ 0.62 $ 0.54
Earnings $ 73.7 $ 64.7
Average Number of Common Stocks Outstanding:
Basic 119.4 119.0
Diluted 119.4 119.0
Nine Months Ended
September 30,
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2003 2002
--------- --------
Earnings Per Share of Common Stock - Basic: $ 1.34 $ 0.52
Earnings Per Share of Common Stock - Diluted: $ 1.34 $ 0.50
Earnings $ 160.9 $ 61.9
Average Number of Common Stocks Outstanding:
Basic 119.7 119.1
Diluted 119.7 122.9
Twelve Months Ended
September 30,
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2003 2002
--------- --------
Earnings Per Share of Common Stock - Basic: $ 1.56 $ 0.67
Earnings Per Share of Common Stock - Diluted: $ 1.56 $ 0.65
Earnings $ 186.3 $ 79.3
Average Number of Common Stocks Outstanding:
Basic 119.5 119.0
Diluted 119.5 122.9
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