PEI REPORTS THIRD QUARTER EARNINGS
PEI REPORTS THIRD QUARTER EARNINGS WILKES-BARRE, Pa., Nov. 1 /PRNewswire/ -- Pennsylvania Enterprises,
Inc. (NASDAQ: PENT) (PEI) reported today a consolidated seasonal net loss of $2.6 million for the three months ended Sept. 30, 1991, compared to a $3.0 million net loss for the three months ended Sept. 30, 1990.
The loss per share of common stock was $.97 compared to $1.10 in the prior year. For the nine months ended Sept. 30, 1991, PEI consolidated net income was $1.1 million compared to a $0.1 million loss for the nine months ended Sept. 30, 1990, which resulted in earnings per share of $0.41 compared to a $0.04 loss in the prior year. Higher earnings for the nine months and a lower loss for the three months ended Sept. 30, 1991, were primarily attributable to an increase in water operating revenues of Pennsylvania Gas and Water Company (PG&W) as a result of a rate increase, designed to produce an additional $15.0 million in annual revenue, for customers in its Scranton Water Rate Area. The effects of which were partially offset by increased operating costs, and increased interest charges resulting largely from borrowings to finance substantial water system improvements and from a decrease in the Allowance For Borrowed Funds Used During Construction (AFUDC) due to the completion of the four water treatment plants in the Scranton Water Rate Area in June and July of 1990. Also partially offsetting the higher earnings for the nine months ended Sept. 30, 1991, was a $385,000 provision relative to take-or-pay costs that was charged to the cost of gas in March 1991. PG&W officials noted that the company's gas business is highly seasonal, and PG&W's gas operating revenues and the company's net income have historically increased considerably in the fourth quarter due to colder weather. In the last three years, net income (loss) per share for the first nine months compared to the full year was $1.38 vs. $2.82 in 1988, $.70 vs. $2.68 in 1989, and $(.04) vs. $.25 in 1990. In April of 1991, PG&W filed an application with the Pennsylvania Public Utility Commission (PPUC) seeking a $2.6 million increase in annual water revenue with respect to the approximately 14,300 customers served exclusively by PG&W's Nesbitt Water Treatment Plant. On Oct. 17, 1991, a Joint Stipulation in Partial Settlement regarding this application was filed by PG&W, the PPUC Office of Trial Staff, the Pennsylvania Office of Small Business Advocate and the Pennsylvania Office of Consumer Advocate (OCA) which provides for a $1.9 million increase in annual revenue should the PPUC reject the issues raised by the OCA regarding water quality and alleged discriminatory rates and which the OCA and PG&W are continuing to litigate. The PPUC is scheduled to act on this rate request by Jan. 29, 1992. Pennsylvania Gas and Water Company, the utility operating subsidiary of PEI, serves approximately 130,000 natural gas customers and approximately the same number of water customers in northeastern Pennsylvania. PENNSYLVANIA ENTERPRISES, INC. Summary of Revenues and Earnings for the Periods as Listed Below Three months ended Sept. 30 1991 1990 Revenues $25,463,000 $22,147,000 Net income (loss) for common (2,645,000) (2,995,000) Earnings (loss) per common share $(.97) $(1.10) Nine months ended Sept. 30 1991 1990 Revenues $125,589,000 $114,996,000 Net income (loss) for common 1,123,000 (117,000) Earnings (loss) per common share $.41 $(.04) 12 months ended Sept. 30 1991 1990 Revenues $177,231,000 $177,459,000 Net income for common 1,908,000 5,249,000 Earnings per common share $.70 $1.93 -0- 11/1/91 /CONTACT: Juneann Greco of Pennsylvania Enterprises, 717-829-8825/ (PENT) CO: Pennsylvania Enterprises, Inc.; Pennsylvania Gas and Water Company ST: Pennsylvania IN: UTI SU: ERN CC -- PH001 -- 0074 11/01/91 08:47 EST
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|Date:||Nov 1, 1991|
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