Providence Energy announces earnings second quarter fiscal year 1997.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)--April 30, 1997--Providence Energy Corporation (NYSE-PVY) today reported earnings for the three months ended March 31, 1997, of $1.17 per share of common stock, down 14.7 percent from last year's second quarter. Temperatures for the three months ended March 31, 1997 were 10.7 percent warmer than the same period last year and 5.2 percent warmer than normal. Warmer weather reduced margin by about $1.8 million or 21 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, when compared to the same period last year.
Operating expenses Operating expenses
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the current quarter increased due to inflation, costs associated with infrastructure and technology investments and the operations of Providence Energy Services, Inc. which began in August 1996. These increases were partially offset by a reduction in uncollectible expense resulting from improved collection efforts.
Earnings for the six months ended March 31, 1997 were $1.91, down 15.9 percent due mainly from weather, which was 8.4 percent warmer than the same period last year, reducing margin by about $2.4 million or 28 cents per share, net of tax. This weather impact was partially offset by the rate increase effective December 17, 1995. Operating expenses for the first half of this current fiscal year increased due to increased operating expenses for the second quarter. Gary S. Gillheeney, Senior Vice President, Chief Financial Officer and Treasurer stated, "Aside from the costs associated with the development of new energy ventures, we expect operating expenses to be lower for the remainder of the year versus last year due to aggressive monitoring of costs and a one time funding of $800,000 for the low income assistance program last year." Other for 1996 reflects the impact of one time adjustments from the rate order issued earlier that year.
James H. Dodge, Chairman, President and Chief Executive Officer stated, "We are pleased with the progress of Providence-Southern, our new energy venture with the Southern Company. The Company is on target in both its marketing and organizational efforts. This new venture strongly positions our Company to meet its vision of being New England's First Choice In Energy Services."
Providence Energy Corporation is a diversified diversified (di·verˑ·s energy services company. The Corporation owns and operates two natural gas distribution companies, the Providence Gas Company, which is the largest natural gas distributor in Rhode Island Rhode Island, island, United States
Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. , 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 Company in Massachusetts Massachusetts (măsəch`sĭts), most populous of the New England states of the NE United States. . The Corporation has recently joined with the Southern Company of Atlanta, Georgia Georgia, country, Asia
Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. to form a new company, Providence-Southern, LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control , to market natural gas and electricity throughout the 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. market.
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.
PROVIDENCE ENERGY CORPORATION AND SUBSIDIARIES SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION FOR THE PERIOD ENDED MARCH 31 (Unaudited) Three Months Six Months 1997 1996 1997 1996 (thousands, except per share amounts) Operating revenues $79,946 $81,107 $143,984 $139,513 Cost of gas sold 46,938 47,018 84,218 78,539 Operating margin 33,008 34,089 59,766 60,974 Operating expenses 20,638 20,251 38,649 38,145 Operating income 12,370 13,838 21,117 22,829 Other 77 193 (42) 1,148 Interest expense 1,979 1,965 3,849 3,873 Income before Federal income taxes 10,468 12,066 17,226 20,104 Provision for Federal income taxes 3,557 4,104 5,877 6,845 Preferred dividends of subsidiary (174) (174) (348) (348) Net income $ 6,737 $ 7,788 $11,001 $12,911 Earnings per common share $ 1.17 $ 1.37 $ 1.91 $ 2.27 Dividends paid per common share $ 0.27 $ 0.27 $ 0.54 $ 0.54 Weighted average common shares outstanding 5,779.2 5,700.1 5,768.5 5,690.1
CONTACT: Providence Energy Corp.
Investor Contact: Media Contact:
Maryann Pernorio Barbara H. Trainor
(401) 272-5040, Ext. 2274 (401) 272-5040, Ext. 2411