Dominion Posts 15 Percent Increase in First-Quarter Operating Earnings to $1.20 Per Share.Business Editors/Energy Writers RICHMOND Richmond, cities, United States Richmond. 1 City (1990 pop. 87,425), Contra Costa co., W Calif., on San Pablo Bay, an inlet of San Francisco Bay; inc. 1905. , Va.--(BUSINESS WIRE)--April 20, 2001 Conference Call at 3 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT Today Dominion dominion, power to rule, or that which is subject to rule. Before 1949 the term was used officially to describe the self-governing countries of the Commonwealth of Nations—e.g., Canada, Australia, or India. (NYSE NYSE See: New York Stock Exchange : D) today announced unaudited consolidated operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the first quarter ended March 31, 2001 of $299 million ($1.20 per share), up from operating earnings of $233 million ($1.04 per share) for the same period in 2000. Other financial highlights for the first quarter include: -a 52 percent increase in revenues to $3.2 billion in 2001 from $2.1 billion in 2000. -a 17 percent increase in cash operating earnings per share, excluding goodwill expense, to $1.29 per share from $1.10 per share. Thos. E. Capps, chairman, president and chief executive officer, said: "We are very pleased with the continued strong financial performance of all of our core operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . We grew first-quarter operating earnings more than 15 percent, and we are on track to meet or exceed our full-year earnings target of $4.10 per share and then grow earnings 10 percent or higher annually through at least 2003. "Also gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. is our substantial increase in cash earnings - earnings before non-cash goodwill charges related to last year's merger with Consolidated Natural Gas. Cash earnings are important because we use cash to pay dividends and reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. in the company to improve customer service, fuel earnings growth, and build shareholder value." First-quarter 2001 operating earnings exclude an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $136 million (55 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. ) related to the buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. of power purchase contracts and non-utility generating plants previously serving the company under long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contracts. First-quarter 2000 operating earnings exclude a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. after-tax gain of $21 million (10 cents per share) from the cumulative effect of pension accounting changes, and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and merger-related after-tax charges of $86 million (39 cents per share). Earnings Breakdown by Operating Segment Dominion Energy, the company's electric generation and gas pipeline business segment, contributed $160 million (64 cents per share) to first-quarter 2001 operating earnings, up from $116 million (52 cents per share) in the first quarter of 2000. The increase in Dominion Energy's first-quarter 2001 earnings is primarily attributable to the addition of Consolidated Natural Gas's pipeline operations for the full quarter, strong customer growth and colder weather in the company's electric service area, and a higher contribution from the company's power marketing operations, partially offset by higher taxes and other expenses. Dominion Delivery, the company's electric and gas distribution and customer service segment, contributed $157 million (63 cents per share) to first-quarter operating earnings, up from $116 million (52 cents per share) in the first quarter of 2000. The increase is primarily attributable to the addition of CNG's distribution operations for the full quarter, colder weather in the company's electric and gas service areas, and lower service restoration costs. Dominion Exploration & Production, the company's gas and oil exploration and production unit, earned $71 million (29 cents per share) in the first quarter of 2001, up from $46 million (20 cents per share) in the prior-year period. The increase is primarily attributable to the addition of CNG CNG Compressed Natural Gas CNG Calling (Tone) CNG Comfort Noise Generation CNG Cryptography Next Generation (Microsoft Windows Vista) CNG Centre National de Génotypage Producing Company operations for the full quarter and higher natural gas and oil commodity prices, partially offset by higher operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Dominion Capital, the company's financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. subsidiary, earned $2 million (1 cent per share) in the first quarter of 2001, compared to $3 million (1 cent per share) in the prior-year period. Dominion has agreed to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. Dominion Capital pursuant to regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. that were part of its January January: see month. 2000 merger with CNG. Legal Entity Results While Dominion has restructured its daily operations as described above, assets remain wholly owned by its legal subsidiaries, including Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). Power, Consolidated Natural Gas and Dominion Energy, pending full implementation of electric and gas 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 company's service areas. First-quarter 2001 operating earnings for Virginia Power, the company's electric utility, were 62 cents per share, compared to 59 cents per share in the first quarter of 2000. First-quarter 2001 operating earnings for Consolidated Natural Gas, the company's gas utility, were 72 cents per share, compared to 53 cents per share in the first quarter of 2000. First-quarter 2000 earnings for CNG reflect operations since its merger with Dominion on January 28. Dominion Energy, the company's independent power and natural gas subsidiary, earned 15 cents per share, compared to 9 cents per share last year. Conference Call for Investors Dominion will host a conference call at 3 p.m. EDT today discussing first-quarter earnings. Domestic investors who wish to participate should call 800-967-7134. International investors should call 719-457-2625. The confirmation number required to join the call is 759393. A simultaneous web cast of the call will be available on Dominion's investor web pages (www.dom.com/investors), or at www.streetfusion.com. Detailed first-quarter financial statements and operating statistics will also be posted on the investor pages of the company's web site immediately following the conference call. A tape recording of the conference call will be available beginning at approximately 6 p.m., EDT, April 20 through 11 p.m., April 24. Domestic investors may access the recording by dialing 888-203-1112. International callers should dial 719-457-0820 to access the recording. The access code for the tape-recorded tape-re·cord tr.v. tape-re·cord·ed, tape-re·cord·ing, tape-re·cords To record on magnetic tape. Adj. 1. tape-recorded - recorded on tape taped replay is also 759393. A replay of the conference call also will be available on Dominion's investor information home pages by the end of the day on April 20. Dominion is one of the nation's largest producers of energy, with a production capability of 2.7 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. British Thermal Units British thermal unit, abbr. Btu, unit for measuring heat quantity in the customary system of English units of measurement, equal to the amount of heat required to raise the temperature of one pound of water at its maximum density [which occurs at a temperature of 39. (BTUs) of energy per day. The company has a power generation portfolio of more than 21,000 megawatts, which is expected to grow to approximately 28,000 megawatts by 2005. Dominion is also one of the largest independent oil and natural gas exploration and production companies in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , with 2.8 trillion cubic feet equivalent of natural gas reserves, with an annual production capability of over 300 billion cubic feet equivalent of natural gas. The company has 7,600 miles of interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. natural gas pipeline with a delivery capability of 6.3 billion cubic feet per day. In addition, the company operates the nation's largest underground natural gas storage system, with more than 950 billion cubic feet of storage capacity. Dominion also serves 3.8 million retail natural gas and electric customers, and owns a managing equity interest in Dominion Fiber Ventures LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , owner of Dominion Telecom. Dominion Telecom is expanding its fiber-optic network from its current 35,000 fiber miles (3,600 route miles The number of miles that are spanned by a telecommunications network. It does not include combined wire mileage due to multiple wires or fibers within a single cable or by overlapping segments, just the total geographic distance between cities or other terminal points. ) to more than 800,000 planned fiber miles (9,000 route miles). For more information about Dominion, visit the company's website at www.dom.com. This release contains 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. that are subject to various risks and uncertainties. Discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations may include factors that are beyond the company's ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. . Other factors include, but are not limited to, weather conditions, economic conditions in the company's service area, fluctuations in energy-related commodity prices, risks associated with successfully executing the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. business plan and other uncertainties. Other risk factors are detailed from time to time in the company's Securities & Exchange Commission filings.
Dominion Resources Inc.
Preliminary Earnings Report - Operating Segments
March 2001
(millions, except earnings per share)
1st Quarter Ended
March 31
2001 2000 (1)
----- --------
Operating Revenues & Income $ 3,156 $ 2,069
======== ========
Earnings:
Dominion Energy $ 160 $ 116
Dominion Delivery 157 116
Dominion Exploration & Production 71 46
Dominion Capital 2 3
Corporate & Other (2) (92) (47)
---- ----
OPERATING EARNINGS (EXCLUDING SPECIAL
ITEMS) $ 299 $ 233
========= ========
Special Items (see Note 2) (136) (65)
REPORTED NET INCOME $ 162 $ 168
========= ========
Common Shares Outstanding (average, diluted) 248.8 223.4
Earnings Per Share (EPS):
Dominion Energy $ 0.64 $ 0.52
Dominion Delivery 0.63 0.52
Dominion Exploration & Production 0.29 0.20
Dominion Capital 0.01 0.01
Corporate & Other (2) (0.37) (0.21)
------ ------
OPERATING EPS (EXCLUDING SPECIAL ITEMS) $ 1.20 $ 1.04
========= ========
Special Items (see Note 2) (0.55) (0.29)
REPORTED EPS $ 0.65 $ 0.75
========= ========
Note 1: Goodwill (noncash expense) included
in operating earnings $ (22) $ (13)
Note 2: Special Items
Pre-tax
NUG Buyout $ (220)
Restructuring & merger-related charges $ (130)
Cumulative effect of change in Accounting
- Pension $ 33
After-tax
NUG Buyout $ (136)
Restructuring & merger-related charges $ (86)
Cumulative effect of change in Accounting
- Pension $ 21
EPS impact
NUG Buyout $(0.55)
Restructuring & merger-related charges $ (0.39)
Cumulative effect of change in Accounting
- Pension $ 0.10
(1) 2000 results include CNG as of 1/28/00
(2) Includes goodwill, interest and Corby Power Station
Note: Figures may not add due to rounding
Dominion Resources Inc.
Preliminary Earnings Report - Legal Entities
March 2001
(millions, except earnings per share)
1st Quarter Ended
March 31
2001 2000 (1)
----- --------
Operating Revenues & Income $ 3,156 $ 2,069
======== ========
Earnings:
Virginia Power $ 155 $ 133
Consolidated Natural Gas 179 119
Dominion Energy 37 20
Dominion Capital 2 3
Corporate & Other (2) (74) (41)
---- ----
OPERATING EARNINGS (EXCLUDING SPECIAL
ITEMS) $ 299 $ 233
========= ========
Special Items (see Note 2) (136) (65)
REPORTED NET INCOME $ 162 $ 168
========= ========
Common Shares Outstanding (average, diluted) 248.8 223.4
Earnings Per Share (EPS):
Virginia Power $ 0.62 $ 0.59
Consolidated Natural Gas 0.72 0.53
Dominion Energy 0.15 0.09
Dominion Capital 0.01 0.01
Corporate & Other (2) (0.30) (0.18)
------ ------
OPERATING EPS (EXCLUDING SPECIAL ITEMS) $ 1.20 $ 1.04
========= ========
Special Items (see Note 2) (0.55) (0.29)
REPORTED EPS $ 0.65 $ 0.75
========= ========
Note 1: Goodwill (noncash expense) included
in operating earnings $ (22) $ (13)
Note 2: Special Items
Pre-tax
NUG Buyout $ (220)
Restructuring & merger-related charges $ (130)
Cumulative effect of change in accounting
- Pension $ 33
After-tax
NUG Buyout $ (136)
Restructuring & merger-related charges $ (86)
Cumulative effect of change in accounting
- Pension $ 21
EPS impact
NUG Buyout $(0.55)
Restructuring & merger-related charges $ (0.39)
Cumulative effect of change in accounting
- Pension $ 0.10
(1) 2000 results include CNG as of 1/28/00
(2) Includes goodwill, interest and Corby Power Station
Note: Figures may not add due to rounding
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