GPU, Inc. Reports Fourth Quarter and Year End 2000 Earnings.Business Editors MORRISTOWN Morristown. 1 Town (1990 pop. 16,189), seat of Morris co., N N.J., on the Whippany River; settled c.1710, inc. 1865. Although chiefly residential, it has diverse manufactures, including electronic products, health and beauty aids, auto parts, and , N.J.--(BUSINESS WIRE)--Feb. 2, 2001 GPU GPU: see secret police. (Graphics Processing Unit) A specialized logic chip devoted to rendering 2D or 3D images. Display adapters contain one or more GPUs for fast graphics rendering. , Inc. today announced that net income for the fourth quarter ended December December: see month. 31, 2000 was $209.8 million or $1.72 per share, against $73.5 million or $0.60 per share for the 1999 fourth quarter. Non-recurring items in the 2000 fourth quarter totaled a gain of $148.4 million 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. or $1.22 per share. They consisted of an increase of $89.2 million after-tax, or $0.73 per share for a gain on the sale of GPU International; a gain of $40.8 million after-tax, or $0.34 per share for the net impact of the Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York Public Utility Commission's Phase II order; and a benefit from the revised computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of income tax effects related to the second quarter sale of GPU PowerNet, resulting in tax adjustments of $18.4 million, or $0.15 per share. Non-recurring items in the fourth quarter of 1999 came to a gain of $5.4 million after-tax or $0.04 per share. These items consisted of an increase of $8.3 million after-tax, or $0.07 per share for the sale of several GPU Energy generating assets related to wholesale operations, and a reduction of $2.9 million or $0.03 per share in the previously recorded gain on the sale of the supply business of Midlands Electricity The Midlands Electricity Board was formed in 1947, under the Electricity Act of that year. The counterpart of the East Midlands board, it served southern, and western parts of Warwickshire, as well as the counties of Worcestershire, Herefordshire, Shropshire, and Staffordshire, as plc, now GPU Power UK, GPU's British subsidiary. In addition to the non-recurring items noted above, there were adjustments made in the fourth quarter of 2000 resulting in charges to income amounting to $36.8 million after-tax or $0.30 per share. These adjustments consisted of an increase to the reserve for uncollectible Adj. 1. uncollectible - not capable of being collected; "a bad (or uncollectible) debt" bad invalid - having no cogency or legal force; "invalid reasoning"; "an invalid driver's license" customer accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying of $19.5 million after-tax or $0.16 per share, an increase to the Saxton Saxton can refer to:
Excluding the impact of non-recurring items and other fourth quarter adjustments, GPU's earnings for the fourth quarter of 2000 would have been $98.2 million or $0.80 per share. The lower 2000 fourth quarter income before non-recurring items was primarily due to higher energy costs in Pennsylvania partially offset by lower O&M and depreciation expenses and increased revenues due to colder than normal weather. Year 2000 Results Net income for the year 2000 was $233.5 million or $1.92 per share, against $459 million or $3.66 per share in 1999. Non-recurring items for the year 2000 totaled a net charge of $103.9 million after-tax or $0.86 per share. In addition to the 2000 fourth quarter items already noted, these items consisted of an increase of $26.2 million after-tax, or $0.22 per share for the recognition of a net gain primarily related to a restructured power purchase agreement between a GPU independent power project and Niagara Niagara, river, United States and Canada Niagara (nīăg`rə), river, 34 mi (55 km) long, issuing from Lake Erie between Buffalo, N.Y., and Fort Erie, Ont., Canada. Mohawk Mohawk, river, United States Mohawk, river, c.140 mi (230 km) long, rising in central New York and flowing S then SE past Utica and Schenectady to enter the Hudson River at Cohoes. ; an increase of $16.5 million, or $0.13 per share for the elimination of deferred taxes and the realization of an investment tax credit related to the sale of the Oyster Creek Oyster Creek may refer to:
Non-recurring items for the year 1999 totaled a net charge of $25.1 million after-tax or $0.20 per share. In addition to the 1999 fourth quarter items noted above, these items included an increase of $27.8 million after-tax, or $0.22 per share, for the gain on the sale of the Homer City Generating Station Homer City Generating Station is a large coal-burning power station at Homer City, in Indiana County, Pennsylvania, USA at . It is owned by Edison International and operated by its subsidiary Midwest Generation. related to wholesale operations; an after-tax reduction of $68 million or $0.54 per share as a result of the New Jersey Board of Public Utilities' 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). order; and an increase of $9.7 million after-tax, or $0.08 per share, for the gain on the sale of the GPU Power UK supply business. Earnings Expectations GPU continues to provide earnings guidance for 2001 at $3.35 per share before non-recurring charges. However, as noted previously, that guidance is contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent GPU obtaining regulatory relief in Pennsylvania for the negative earnings impact of its Provider of Last Resort (PLR PLR pupillary light reflex. ) obligation. On January January: see month. 19, GPU issued a news release increasing its estimate of the earnings loss associated with the Pennsylvania PLR obligation from the previous $0.45 per share to $0.72 per share. With no regulatory relief, that estimate would result in 2001 earnings per share of $2.63 per share. That estimate was based on an increase in energy costs and the fact that customers representing 175 megawatts (MWs) had notified us that they were returning. GPU's current estimate, based on just-completed customer surveys and other intelligence gathering, is that of the 1,450 MWs of Pennsylvania load for which customers have selected suppliers other than GPU, approximately 800 MWs will return by June June: see month. 1. That number represents an increase of 625 MWs above the previous 175 MW notification. GPU now estimates that the cost of providing energy to Pennsylvania customers, including the returning 800 MWs of Pennsylvania load, would have negative earnings impact in 2001 of $1.00 per share in the absence of regulatory relief, which would reduce earnings from $3.35 to $2.35 per share. Making Progress on Several Fronts GPU made progress on several fronts during the fourth quarter: - GPU shareholders and shareholders of FirstEnergy Corp. approved the proposed merger of the companies by overwhelming majorities. The merger now awaits a number of state and federal regulatory approvals. - GPU completed the sale of its wholly owned subsidiary, GPU International, including its interests in six independent generating plants and a development generating project, to the Aquila Energy subsidiary of UtiliCorp United for $225 million, resulting in an after-tax gain on the sale of $89.2 million, as noted above. - GPU Telcom Services, Inc., reached an agreement with Amtrak giving GPU right-of-way to construct a 375-mile fiber optic installation along Amtrak's Northeast Corridor rail line between New York City and Washington D.C., and along Amtrak's Keystone line between Philadelphia and Harrisburg, PA., to serve a total of six Tier 1 cities. GPU, Inc., headquartered in Morristown, NJ, is a registered public utility holding company providing utility and utility-related services to customers throughout the world. GPU serves 4.6 million customers directly through its electric companies -- GPU Energy in the US, GPU Power UK in England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , and Emdersa in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. . It serves an additional 1.4 million customers indirectly through GPU GasNet, its gas transmission subsidiary in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . The company's independent power project business units own interests in and operate eight projects in five countries. GPU's 2000 revenues were $5.2 billion and its total assets were more than $19 billion. GPU's other subsidiaries include MYR MYR In currencies, this is the abbreviation for the Malaysian Ringgit. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. Group Inc., GPU Advanced Resources, Inc., GPU Nuclear, Inc., GPU Service, Inc. GPU Telcom Services, Inc. and GPU Diversified diversified (di·verˑ·s Holdings LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . (http://www.gpu.com) This news release contains 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. 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. Statements made that are not historical facts are forward-looking and, accordingly, involve risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Although such forward-looking statements have been based on reasonable assumptions, there is no assurance that the expected results will be achieved. Some of the factors that could cause actual results to differ materially include, but are not limited to: the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the proposed merger of GPU, Inc. with FirstEnergy Corp.; the effects of regulatory decisions, including any conditions imposed upon the proposed merger with FirstEnergy Corp.; changes in law and other governmental actions and initiatives; economic or weather conditions affecting future sales and margins; the impact of 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. and increased competition in the industry; industry restructuring; expected outcomes of legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. ; energy prices and availability; and uncertainties involved with foreign operations including political risks and foreign currency fluctuations. PLEASE NOTE: This fourth quarter earnings news release and supplemental financial are available at GPU's website (http://www.gpu.com). - Members of the news media and the public are invited to listen to GPU's conference call with the investment community at 10 a.m. today, Friday, February 2, by dialing 973 321-2002. Callers dialing this number will be in a "listen only" mode. Please call in no later than 9:55 to assure being transferred into the call by 10 a.m. - The GPU investor conference call is also available as a webcast at the GPU website. A playback Playback could mean:
will be available beginning at 12 noon today through Monday at 402-220-2854.
Year-End 2000 Earnings Release
Financial Summary
Twelve Months Ended December 31, 2000 1999
-------------------------------- ---- ----
Operating revenues (000) (Notes 1) $5,196,256 $4,757,124
Net income (000) (Notes 2 & 3) $ 233,538 $ 459,014
Basic - Earnings per share
(Notes 2 & 3) $1.92 $3.66
- Average common shares
outstanding (000) 121,161 125,368
Diluted - Earnings per share
(Notes 2 & 3) $1.92 $3.66
- Average common shares
outstanding (000) 121,259 125,570
Three Months Ended December 31, (Unaudited) 2000 1999
------------------------------------------- ---- ----
Operating revenues (000) (Note 1) $1,284,152 $1,371,435
Net income (000) (Notes 2 & 3) $ 209,843 $ 73,486
Basic - Earnings per share
(Notes 2 & 3) $1.72 $0.60
- Average common shares
outstanding (000) 120,755 123,129
Diluted - Earnings per share
(Notes 2 & 3) $1.72 $0.60
- Average common shares
outstanding (000) 120,904 123,175
Note 1: The changes in operating revenues for the comparable 2000
versus 1999 periods were largely due to the following
acquisitions: MYR Group (April 2000); GPU Power UK, the
remaining 50% that GPU did not already own (July 1999); GPU
GasNet (June 1999); and Emdersa (March 1999). Partially
offsetting these increases were lower operating revenues
resulting from the impact of electric utility restructuring on
GPU Energy's operations; and the sale of GPU PowerNet (June
2000).
Note 2: Earnings for the three and twelve months ended December
31, 2000 included an increase of $89.2 million after-tax, or
$0.73 per share, for the gain on the sale of GPU
International, Inc.; an increase of $40.8 million after-tax,
or $0.34 per share, for the net impact of the PaPUC's Phase II
Order. In addition, in the fourth quarter 2000, GPU revised
its computation of income tax benefits related to the second
quarter sale of GPU PowerNet, resulting in additional tax
benefits (income) of $18.4 million, or $0.15 per share.
Earnings for twelve months ended December 31, 2000 also
included an increase of $26.2 million after-tax, or $0.22 per
share, for the recognition of a net gain primarily related to
a restructured power purchase agreement between a GPU
independent power project and Niagara Mohawk; an increase of
$16.5 million, or $0.13 per share, for the elimination of
deferred taxes and realization of an investment tax credit
related to the sale of the Oyster Creek nuclear generating
plant; and a loss of $295 million after-tax, or $2.43 per
share, as a result of the sale of GPU PowerNet.
Note 3: Earnings for the three and twelve months ended December
31, 1999 included an increase of $8.3 million after-tax, or
$0.07 per share, for the net gains on the sales of
substantially all GPU Energy's generating assets related to
wholesale operations; and, as a result of adjustments to the
working capital estimate, an after-tax reduction of $2.9
million after-tax, or $0.03 per share, was taken against the
previous gain on the sale of the GPU Power UK supply business.
Earnings for the twelve months ended December 31, 1999 also
included an increase of $27.8 million after-tax, or $0.22 per
share, for the gain on the sale of Penelec's Homer City
Generating Station related to wholesale operations; an
after-tax reduction in income of $68 million, or $0.54 per
share, as a result of the NJBPU's Restructuring Order; and an
increase of $9.7 million after-tax, or $0.08 per share, for
the gain on the sale of the GPU Power UK supply business.
Year-End 2000 Earnings Release
Earnings Per Share Comparison
4th Quarter Year-To-Date Change Per Share
Year-
To-
2000 1999 2000 1999 4th Quarter Date
---- ---- ---- ---- ----------- ----
GPU Energy:
JCP&L $ 0.22 $ 0.17 $ 1.68 $ 1.30 $ 0.05 $ 0.38
Met-Ed 0.42 0.01 0.68 0.75 0.41 (0.07)
Penelec 0.18 0.36 0.32 1.21 (0.18) (0.89)
Foreign Utility
Companies:
GPU Power UK 0.06 0.08 0.51 0.50 (0.02) 0.01
GPU PowerNet 0.15 (0.04) (2.20) (0.05) 0.19 (2.15)
GPU GasNet (0.01) 0.02 0.03 - (0.03) 0.03
Emdersa (0.03) (0.03) (0.01) (0.02) - 0.01
GPU Power/
GPU Inter-
national 0.03 0.07 0.36 0.15 (0.04) 0.21
GPU Advanced
Resources 0.01 0.02 (0.01) (0.04) (0.01) 0.03
GPU Telcom (0.01) - (0.02) - (0.01) (0.02)
MYR Group 0.03 - 0.04 - 0.03 0.04
GPU, Inc. 0.67 (0.06) 0.54 (0.14) 0.73 0.68
----- ----- ----- ----- ----- ------
Total $ 1.72 $ 0.60 $ 1.92 $ 3.66 $ 1.12 $(1.74)
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