Providence Energy Announces Fiscal Year 1998 Earnings.PROVIDENCE Providence, city (1990 pop. 160,728), state capital and seat of Providence co., NE R.I., a port at the head of Providence Bay; founded by Roger Williams 1636, inc. as a city 1832. , R.I.--(BUSINESS WIRE)--Nov. 6, 1998--Providence Energy Corporation (ProvEnergy) (NYSE NYSE See: New York Stock Exchange :PVY PVY Potato Virus Y PVY Presion Venosa Yugular (Spanish: Jugular Venous Pressure ) ) today reported earnings for the fiscal year ended September September: see month. 30, 1998 of $6.4 million, or $1.09 per share of common stock. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the fiscal year 1998 was $98.6 million, an increase of $2.5 million from fiscal year 1997. Providence Gas Company's (ProvGas) price stabilization price stabilization See peg, PROBLEM">[removed]. plan, Energize en·er·gize v. en·er·gized, en·er·giz·ing, en·er·giz·es v.tr. 1. To give energy to; activate or invigorate: "His childhood RI, contributed a net margin increase of $7.2 million or 80 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. , net of tax, to fund the investments included in the plan. The oil distribution operations added margin of $2.7 million or 30 cents per share, net of tax. These margin increases were partially offset by 8 percent warmer temperatures on average during fiscal year 1998 compared to fiscal year 1997, which reduced ProvGas' margin by $4.0 million or 45 cents per share, net of tax. Low oil prices during a period of relatively high gas prices resulted in a sharp drop in ProvGas' interruptible gas sales, which reduced margin by $2.2 million or 25 cents per share, net of tax. A further offset to margin was driven by the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the Integrated Resource Plan. Operation and maintenance expenses for fiscal year 1998 increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.2 million or 36 cents per share, net of tax, when compared to fiscal year 1997, largely due to the addition of the oil distribution business which increased expenses by $4.1 million or 46 cents per share, net of tax. Operation and maintenance expenses for the gas distribution business were down. Costs associated with investments, including Energize RI commitments, and the oil distribution business contributed to the increases in depreciation and amortization. Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. S. Gillheeney, Senior Vice President, Treasurer TREASURER. An officer entrusted with the treasures or money either of a private individual, a corporation, a company, or a state. 2. It is his duty to use ordinary diligence in the performance of his office, and to account with those whose money he has. , and Chief Financial Officer stated, "While our entry into the oil business positions ProvEnergy to be a leading energy provider in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , we realized significant earnings dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. in the first year of operations. Warmer weather and costs associated with liquidating fixed oil purchase commitments, as a result of market prices dropping, were primarily responsible for the dilution. Assuming weather is normal in 1999, we expect ProvEnergy's earnings to be much stronger, without significant dilution from our nonregulated businesses." ProvEnergy is a distributor and marketer of natural gas, heating oil, and petroleum products as well as a marketer of electricity and energy services. ProvEnergy's goal is to provide complete and competitive energy services to homes and businesses throughout New England. Its principal subsidiaries include ProvGas, ProvEnergy Services, Super Service Oil and North Attleboro North Attleboro (ă`təlbərə), industrial town (1990 pop. 25,038), Bristol co., SE Mass., near the R.I. line; settled 1669, set off from Attleboro and inc. 1887. Jewelry has been made there since 1807. Gas. 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. in this document are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation those risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. -0-
PROVIDENCE ENERGY CORPORATION
Financial Highlights (Thousands, except per share amounts)
For the Fiscal Year Ended September 30, 1998
Fiscal Year 1998
Quarter Ended Fiscal
Dec 31 Mar 31 Jun 30 Sep 30 Year '98
Income Statement
Energy revenues $67,942 $87,796 $39,462 $26,106 $221,306
Cost of energy 39,939 49,123 20,135 13,536 122,733
Operating margin 28,003 38,673 19,327 12,570 98,573
Operating expenses:
Operation and
maintenance 12,057 13,746 13,193 12,997 51,993
Depreciation and
amortization 3,579 3,790 3,660 3,456 14,485
Taxes, other than
income 3,747 4,526 3,307 2,401 13,981
Total operating
expenses 19,383 22,062 20,160 18,854 80,459
Operating income
(loss) 8,620 16,611 (833) (6,284) 18,114
Other income 188 163 219 35 605
Interest expense 2,004 2,053 2,032 2,044 8,133
Income (loss) before
Federal income taxes 6,804 14,721 (2,646) (8,293) 10,586
Provision for Federal
income taxes 2,262 5,047 (908) (2,744) 3,657
Net income (loss) 4,542 9,674 (1,738) (5,549) 6,929
Preferred dividends of
subsidiary (139) (139) (105) (104) (487)
Earnings applicable to
common stock $4,403 $9,535 ($1,843) ($5,653) $6,442
Common Shares Outstanding
End of Period 5,905.0 5,925.8 5,948.8 5,968.9 5,968.9
Average 5,868.4 5,915.3 5,935.6 5,959.5 5,919.7
Basic Earnings Per
Share ($) 0.75 1.61 (0.31) (0.95) 1.09
Cash Flow Per Share
(a) ($) 0.06 4.22 2.23 0.50 7.01
Dividends Paid Per
Share ($) 0.27 0.27 0.27 0.27 1.08
Capital Expenditures
($) 5,861 5,227 7,785 9,759 28,632
Book Value Per Share
($) 15.18 16.53 15.98 14.78 14.78
Market Closing Price
($) 21.81 20.94 21.06 19.50 19.50
Balance Sheet
% total capitalization
represented by:
Common equity 53.06 55.89 50.83 51.06 51.06
Preferred stock 3.79 2.74 2.57 2.78 2.78
Long-term debt 43.15 41.37 46.60 46.39 46.39
Unrealized gain/(loss)
on hedge instruments - - - (0.23) (0.23)
Gas Distribution
Operating Statistics
Gas sold and transported (MMcf)
(1 MMcf is one million cubic feet)
Residential 4,349 5,606 2,050 1,002 13,007
Commercial/industrial 2,253 2,167 787 520 5,727
Total firm 6,602 7,773 2,837 1,522 18,734
Interruptible and other 431 416 296 266 1,409
Transportation 1,256 2,009 1,164 793 5,222
Company use and other 360 377 120 89 946
Total gas sold and
transported 8,649 10,575 4,417 2,670 26,311
Off-system sales - - - - -
Total sendout 8,649 10,575 4,417 2,670 26,311
Twelve month average
customers 168,603 168,995 169,434 169,825 169,825
Number of Employees 548 544 553 559 559
Degree Days - Actual 2,071 2,429 661 45 5,206
Normal 1,949 2,877 720 106 5,652
Colder (Warmer) than
normal 6.3% (15.6)% (8.2)% (57.5)% (7.9)%
Fiscal Year 1997
Quarter Ended Fiscal
Dec 31 Mar 31 Jun 30 Sep 30 Year '97
Income Statement
Energy revenues $64,038 $79,946 $42,921 $33,515 $220,420
Cost of energy 37,280 46,938 22,594 17,564 124,376
Operating margin 26,758 33,008 20,327 15,951 96,044
Operating expenses:
Operation and
maintenance 11,374 12,930 11,613 12,851 48,768
Depreciation and
amortization 3,099 3,297 3,259 3,219 12,874
Taxes, other than
income 3,538 4,411 3,092 2,691 13,732
Total operating
expenses 18,011 20,638 17,964 18,761 75,374
Operating income (loss) 8,747 12,370 2,363 (2,810) 20,670
Other income (expense) (118) 77 (114) (64) (219)
Interest expense 1,870 1,979 1,888 1,866 7,603
Income (loss) before
Federal income taxes 6,759 10,468 361 (4,740) 12,848
Provision for Federal
income taxes 2,321 3,557 87 (1,574) 4,391
Net income (loss) 4,438 6,911 274 (3,166) 8,457
Preferred dividends of
subsidiary (174) (174) (139) (139) (626)
Earnings applicable to
common stock $4,264 $6,737 $135 ($3,305) $7,831
Common Shares
Outstanding
End of Period 5,767.4 5,791.1 5,812.0 5,831.9 5,831.9
Average 5,757.8 5,779.2 5,801.4 5,821.9 5,790.1
Basic Earnings Per
Share ($) 0.74 1.17 0.02 (0.58) 1.35
Cash Flow Per Share
(a) ($) (1.28) 2.04 4.39 (0.34) 4.81
Dividends Paid Per
Share ($) 0.27 0.27 0.27 0.27 1.08
Capital Expenditures
($) 5,596 4,116 4,937 8,646 23,295
Book Value Per Share
($) 14.85 15.74 15.51 14.69 14.69
Market Closing Price
($) 17.50 17.75 17.50 19.63 19.63
Balance Sheet
% total capitalization
represented by:
Common equity 52.10 53.66 53.23 52.10 52.10
Preferred stock 4.87 3.77 3.78 3.89 3.89
Long-term debt 43.03 42.57 42.99 44.01 44.01
Unrealized gain/
(loss) on hedge
instruments - - - - -
Gas Distribution
Operating Statistics
Gas sold and transported (MMcf)
(1 MMcf is one million cubic feet)
Residential 4,277 6,057 2,306 1,213 13,853
Commercial/industrial 2,393 3,517 1,316 860 8,086
Total firm 6,670 9,574 3,622 2,073 21,939
Interruptible and other 776 480 793 584 2,633
Transportation 619 631 715 760 2,725
Company use and other 316 437 185 (67) 871
Total gas sold and
transported 8,381 11,122 5,315 3,350 28,168
Off-system sales (22) - (4) (254) (280)
Total sendout 8,359 11,122 5,311 3,096 27,888
Twelve month average
customers 166,538 166,938 167,385 167,983 167,983
Number of Employees 560 556 558 553 553
Degree Days - Actual 1,946 2,728 895 88 5,657
Normal 1,949 2,877 720 106 5,652
Colder (Warmer) than
normal (0.2)% (5.2)% 24.3% (17.0)% 0.1%
(a) Cash flow per share is calculated by taking net cash provided by
operations for each quarter and dividing by the average common
shares outstanding for the quarter.
Quarterly results are unaudited; yearly results are audited.
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