GPU Reports First Quarter 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)--April 25, 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. (NYSE NYSE See: New York Stock Exchange : GPU) today reported net income for the first quarter of 2001 of $68.9 million or $0.58 per share, compared with $131.0 million or $1.08 per share in the first quarter of 2000. The 2001 first quarter results were after non-recurring charges of $20.1 million or $0.17 per share. They included a charge of $9.4 million or $0.08 per share on the termination of a wholesale energy contract with Allegheny Allegheny (ăl`əgā'nē, ăl`əgä'nē), river, 325 mi (523 km) long, rising in N central Pa., and flowing NW into N.Y., then SW through Pa. Electric Cooperative and a charge of $10.7 million or $0.09 per share for pension costs and other post-employment benefits associated with a voluntary early retirement program offered to certain bargaining unit A bargaining unit in labor relations is a group of employees with a clear and identifiable community of interests who are (under U.S. law) represented by a single labor union in collective bargaining and other dealings with management. employees in 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 . There were no non-recurring items in the first quarter of 2000. The 2001 first quarter earnings included a loss of about $8.4 million or $0.07 per share related to GPU's obligation to supply electricity to customers in Pennsylvania (as compared to the 2000 first quarter in which GPU's Pennsylvania energy supply business earned about $12 million or $0.10 per share) and lower earnings related to international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. of $22.3 million, or $0.19 per share. The Pennsylvania energy supply loss reflects the fact that GPU must purchase electricity as provider of last resort at prices well above the retail rate caps at which it can resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. it, as well as the effect of increasing numbers of customers returning from alternate suppliers. The reduction in international earnings was due primarily to the reset of electricity delivery rates in the UK that took effect after the 2000 first quarter. Earnings Expectations Based on first quarter results, GPU is modifying its earnings guidance for 2001 from $3.35 to $3.25 per share before non-recurring charges. However, as noted previously, the earnings 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 to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the negative earnings impact of its Provider of Last Resort
(PLR PLRpupillary light reflex. ) obligation. GPU currently estimates that, of the 1,450 megawatts (MWs) of Pennsylvania load for which customers had selected suppliers other than GPU as of January January: see month. 1 of this year, approximately 1,100 MWs will return by June June: see month. 1. This estimate is an increase over GPU's previous estimate of 800 MWs of returning customer load by June 1. In the absence of regulatory relief, GPU estimates that the increased cost of providing energy to Pennsylvania customers, including the returning 1,100 MWs of Pennsylvania load, would have a negative earnings impact in 2001 of $1.25 per share, which would reduce earnings from $3.25 to $2.00 per share. If all 1,450 MWs of Pennsylvania load returned by June 1, GPU's earnings for 2001 would be reduced by an additional $0.12 per share. PLEASE NOTE: This first quarter earnings news release and supplemental financial information 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, Wednesday Wednesday: see week. , April 25, 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:
1st Quarter 2001 Earnings Release
Financial Summary
Three Months Ended March 31, (Unaudited) 2001 2000
---------------------------------------- ---- ----
Operating revenues (000) (Notes 1) $1,300,439 $1,176,444
Net income (000) (Notes 2) $ 68,895 $ 130,998
Basic - Earnings per share (Notes 2) $0.58 $1.08
- Average common shares
outstanding (000) 119,516 121,367
Diluted - Earnings per share (Notes 2) $0.58 $1.08
- Average common shares
outstanding (000) 119,627 121,426
Twelve Months Ended March 31, (Unaudited) 2001 2000
----------------------------------- ---- ----
Operating revenues (000) (Note 1) $5,320,251 $4,864,864
Net income (000) (Notes 2 & 3) $ 171,435 $ 399,293
Basic - Earnings per share (Notes 2 & 3) $1.42 $3.25
- Average common shares
outstanding (000) 120,705 123,813
Diluted - Earnings per share (Notes 2 & 3) $1.42 $3.25
- Average common shares
outstanding (000) 120,814 123,961
Note 1: The increase in operating revenues for 2001 versus 2000
was largely due to the acquisition of MYR Group (April
2000); also contributing to the increase was the return of
numerous shopping customers in Pennsylvania from alternate
generation suppliers during the first quarter 2001.
Partially offsetting these increases was the impact of the
sale of GPU PowerNet in June 2000.
Note 2: Earnings for the three months ended March 31, 2001
included a charge of $10.7 million after-tax, or $0.09 per
share, for costs related to Voluntary Enhanced Retirement
Programs to certain bargaining unit employees in
Pennsylvania; and a charge of $9.4 million after-tax, or
$0.08 per share, for costs related to the termination of a
wholesale energy contract with Allegheny Electric
Cooperative.
Earnings for twelve months ended March 31, 2001 also
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; 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 $276.6 million after-tax,
or $2.28 per share, as a result of the sale of GPU
PowerNet.
Note 3: Earnings for the twelve months ended March 31, 2000
include an after-tax increase of $8.3 million, or $0.07 per
share, for the net gains on the sales of substantially all
GPU Energy's generating assets (excluding Homer City, which
was sold in the first quarter of 1999), related to
wholesale operations; an after-tax gain on the sale of the
Midlands supply business of $6.8 million, or $0.05 per
share; and an after-tax charge of $68 million, or $0.54 per
share, as a result of the NJBPU's Restructuring Order on
JCP&L.
1st Quarter 2001 Earnings Release
Earnings Per Share Comparison
1st
Quarter
-----------------------------------
2001 2000 Change Per
Share
---- ---- -----------
GPU Energy:
JCP&L $ 0.42 $ 0.35 $ 0.07
Met-Ed 0.14 0.22 (0.08)
Penelec (0.02) 0.22 (0.24)
Foreign Utility Companies:
GPU Power UK 0.10 0.27 (0.17)
GPU PowerNet - 0.03 (0.03)
GPU GasNet (0.02) (0.02) -
Emdersa 0.02 0.01 0.01
GPU Power/GPU International 0.02 0.03 (0.01)
GPU Advanced Resources 0.01 0.01 -
GPU Telcom - - -
MYR Group 0.01 - 0.01
GPU, Inc. (0.10) (0.04) (0.06)
------- ----- --------
Total $ 0.58 $ 1.08 $(0.50)
===== ===== ======
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, and Emdersa in Argentina. It serves an additional 1.4 million customers indirectly through GPU GasNet, its gas transmission subsidiary in Australia. 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 $19.3 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 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 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). ; 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. |
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