GPU Reports Second Quarter 2001 Results.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)--July 26, 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 second quarter of 2001 of $86.8 million or $0.72 per share, against a loss of $210.8 million or $1.74 per share in the 2000 second quarter. The 2001 second quarter included a non-recurring gain of $11.6 million or $0.10 per share on the sale of the Humber Humber, river, Canada Humber, river, c.75 mi (120 km) long, rising in the Long Range Mts., W Newfoundland, N.L., Canada, and flowing SE then SW, through Deer Lake, to the Bay of Islands at Corner Brook. generating plant in the UK, an independent power project. The second quarter loss in 2000 included a non-recurring charge of $295 million or $2.43 per share, reflecting a loss on the sale of the GPU PowerNet unit 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. . Before the non-recurring items, second quarter net income in 2001 was $75.2 million or $0.62 per share, against $84.2 million or $0.69 per share in 2000. The second quarter 2001 results also included a loss of approximately $9 million or $0.07 per share incurred during the months of April and May related to GPU's obligation to supply electricity to customers 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 . On June June: see month. 14, the Pennsylvania Public Utility Commission (PaPUC) issued an order that allows GPU Energy to defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. , for future rate recovery from customers, energy costs in excess of its fixed generation tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic rate starting June 1. The order allows GPU Energy not to charge to current expense the cost of acquiring electricity at prices exceeding the retail rate caps at which it could 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. the electricity to customers in Pennsylvania. Excluding non-recurring items, international earnings during the 2001 second quarter were down $26.7 million or $0.21 per share from the second quarter of 2000. The lower income was due to a reduction in earnings contribution from GPU's independent power projects in Turkey and Pakistan Pakistan (păk`ĭstăn', päkĭstän`), officially Islamic Republic of Pakistan, republic (2005 est. pop. 162,420,000), 310,403 sq mi (803,944 sq km), S Asia. , as well as the absence of the following: revenues in 2001 at PowerNet, due to its sale in June 2000; a second quarter 2000 gain related to gas supply contracts in the UK; and a 2000 tax benefit affecting GasNet, GPU's gas transmission subsidiary in Australia. For the first six months of 2001, net income was $155.6 million or $1.30 per share, against a loss of $79.8 million or $0.66 per share in the 2000 first half. In addition to the non-recurring items noted above, the 2001 six months results include 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. There were no additional non-recurring items in the first half of 2000. GPU also reaffirmed its earnings guidance for 2001 of $3.25 per share before non-recurring charges, which it announced in its first quarter news release on April 25. That guidance was 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 impact of
its provider of last resort obligation for all of 2001. That relief has
now been granted by the PaPUC in the form of a rate deferral deferral - Waiting for quiet on the Ethernet. starting
June 1. Because GPU incurred $0.14 per share of supply losses from
January January: see month. through May, the $3.25 per share earnings guidance treats the
$0.14 per share of supply losses as a non-recurring charge for earnings
guidance purposes since GPU will not incur To become subject to and liable for; to have liabilities imposed by act or operation of law.Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. supply losses on a going forward basis due to the rate deferral. GPU's pending merger with FirstEnergy 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 seven 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 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. PLEASE NOTE: This second 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, Thursday, July
26, 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 of the conference call will be available beginning at noon
today at 973 341-3080, PIN #2717564.
2nd Quarter 2001 Earnings Release
Financial Summary
Three Months Ended June 30, (Unaudited) 2001 2000
--------------------------------------- ---- ----
Operating revenues (000) (Note 1) $1,347,871 $1,280,374
Net income (000) (Notes 2 & 3) $ 86,751 $ (210,813)
Basic - Earnings per share (Notes 2 & 3) $0.72 $(1.74)
- Average common shares outstanding
(000) 119,559 121,199
Diluted - Earnings per share (Notes 2 & 3) $0.72 $(1.74)
- Average common shares outstanding
(000) 119,680 121,314
Six Months Ended June 30, (Unaudited) 2001 2000
------------------------------------- ---- ----
Operating revenues (000) (Note 1) $2,648,310 $2,456,818
Net income (000) (Notes 2 & 3) $ 155,646 $ (79,815)
Basic - Earnings per share (Notes 2 & 3) $1.30 $(0.66)
- Average common shares outstanding
(000) 119,538 121,284
Diluted - Earnings per share (Notes 2 & 3) $1.30 $(0.66)
- Average common shares outstanding
(000) 119,654 121,389
Twelve Months Ended June 30, (Unaudited) 2001 2000
---------------------------------------- ---- ----
Operating revenues (000) (Note 1) $5,387,748 $5,252,539
Net income (000) (Notes 2 & 3) $ 468,999 $ 141,218
Basic - Earnings per share (Notes 2 & 3) $3.88 $1.13
- Average common shares outstanding
(000) 120,297 122,696
Diluted - Earnings per share (Notes 2 & 3) $3.88 $1.13
- Average common shares outstanding
(000) 120,411 122,875
Note 1: The increase in operating revenues for 2001 versus 2000
was largely due to new revenues resulting from the
acquisition of MYR Group Inc. (April 2000); and the return
of numerous shopping customers in Pennsylvania from
alternate generation suppliers. Partially offsetting the
impact of these increases were lower revenues due to the
sales of GPU PowerNet (June 2000) and GPU International,
Inc. (December 2000).
Note 2: Earnings for the three, six, and twelve months ended June
30, 2001 include an increase of $11.6 million after-tax,
or $0.10 per share, for the gain on the sale of GPU Power
UK's interest in the Humber generating station.
Earnings for the six and twelve months ended June 30, 2001
also include a charge of $10.7 million after-tax, or $0.09
per share, for costs related to Voluntary Enhanced
Retirement Programs offered 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.
In addition to the above, earnings for twelve months ended
June 30, 2001 include 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
Pennsylvania Public Utility Commission's Phase II Order on
Metropolitan Edison Company and Pennsylvania Electric
Company related to the companies' divestiture of
generating assets; 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; and, in the fourth quarter 2000, GPU
revised its estimate of income tax benefits related to the
sale of GPU PowerNet, resulting in additional tax benefits
(increase in income) of $18.4 million, or $0.15 per share.
Note 3: Earnings for the three, six and twelve months ended June
30, 2000 include a second quarter 2000 loss of $295
million after-tax, or $2.43 per share, as a result of the
sale of GPU PowerNet (as mentioned above, in the fourth
quarter 2000, the GPU PowerNet loss was reduced by $18.4
million after-tax to $276.6 million, or 2.28 per share).
Earnings for the twelve months ended June 30, 2000 also
include an increase of $8.3 million after-tax, or $0.07
per share, for the net gain on the sales of certain
generating assets of Metropolitan Edison Company and
Pennsylvania Electric Company, related to their wholesale
operations; and a reduction of the gain on the sale of the
GPU Power UK supply business of $2.9 million after-tax, or
$0.03 per share.
2nd Quarter 2001 Earnings Release
Earnings Per Share Comparison
2nd Quarter Year-To-Date Change Per Share
------------ ------------ ------------------------
2001 2000 2001 2000 2nd Quarter Year-To-Date
---- ---- ---- ---- ----------- ------------
GPU Energy:
JCP&L $ 0.37 $ 0.35 $ 0.79 $ 0.70 $ 0.02 $ 0.09
Met-Ed 0.13 0.07 0.27 0.29 0.06 (0.02)
Penelec 0.06 0.04 0.04 0.26 0.02 (0.22)
Foreign
Utility
Companies:
GPU Power UK 0.12 0.14 0.22 0.41 (0.02) (0.19)
GPU PowerNet - (2.38) - (2.35) 2.38 2.35
GPU GasNet 0.02 0.07 - 0.05 (0.05) (0.05)
Emdersa 0.02 0.01 0.04 0.02 0.01 0.02
GPU Power/GPU
International 0.02 - 0.04 0.03 0.02 0.01
GPU Advanced
Resources - - 0.01 0.01 - -
GPU Telcom - (0.01) - (0.01) 0.01 0.01
MYR Group 0.03 0.01 0.04 0.01 0.02 0.03
GPU, Inc. (0.05) (0.04) (0.15) (0.08) (0.01) (0.07)
------- ------- ------- ------- ------- -------
Total $ 0.72 $(1.74) $ 1.30 $(0.66) $ 2.46 $ 1.96
======= ======= ======= ======= ======= =======
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion