Puget Energy Reports 2002 Results of $1.24 Per Share.Business Editors BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash.--(BUSINESS WIRE)--Feb. 12, 2003 Puget For the explorer of Puget Sound, see Peter Puget. Puget is a commune of the Vaucluse département in southern France. Coordinates: Energy (NYSE NYSE See: New York Stock Exchange :PSD (tool) PSD - Portable Scheme Debugger. ) today reported income for common stock of $110.1 million or $1.24 per share, for the year ended Dec. 31, 2002, compared with $98.4 million, or $1.14 per share, for the 12 months ended Dec. 31, 2001. These results represent a 9 percent year-over-year increase in earnings per share. "In many respects, 2002 was a watershed watershed, elevation or divide separating the catchment area, or drainage basin, of one river system or group of river systems from another system or group of systems. The term is also often used synonymously with drainage basin. year for Puget Energy," said President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and P. Reynolds. "We took decisive actions, some of them painful, to deliver strong operating results and create a solid platform for building shareholder value. "I am pleased that we have accomplished our objectives for 2002, including earnings at the higher end Coordinates: For other places with the same name, see Billinge. Higher End or Billinge Higher End is a district of the Metropolitan Borough of Wigan, in Greater Manchester, England. of our expectations," added Reynolds. "Achieving regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. settlements for electric and gas operations in 2002 was critical to improving the financial strength and results of the company. Our common stock sale of $115 million last November November: see month. , together with $385 million of debt reduction in 2002, demonstrates our continued commitment to strengthening our balance sheet and improving financial flexibility. In addition, our liquidity was strengthened by the successful renewal of our $400 million short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowing facilities in December December: see month. 2002," said Reynolds. 2002 Highlights -- Puget Energy's electric and gas utility subsidiary, Puget Sound Energy (PSE), contributed $101.1 million, or $1.14 per share, compared with $96.0 million, or $1.11 per share, for the for the same period in 2001. -- InfrastruX Group, Puget Energy's construction services subsidiary, also met its annual 2002 earnings target of $9.5 million, or 10 cents per share, compared with $2.5 million, or 3 cents per share, in 2001. -- Approval of the settlement agreement in PSE's general electric rate case on June 20, 2002 granted PSE a 4.6 percent electric rate increase, intended to generate about $59 million annually, beginning July 1, 2002. -- PSE's electric-rate settlement agreement includes a power cost adjustment mechanism (PCA) which took effect for a four-year period starting July 1, 2002. The PCA allows PSE to recover power costs when the cost to provide electricity to its customers varies from levels stipulated in the rate settlement agreement. Variations are shared between PSE and its customers based on percentages applied to several levels of power costs. PSE's PCA limits the company's cumulative pre-tax earnings exposure for the four-year period ending June 30, 2006, due to power cost increases from the costs reflected in customer rates, to $40 million plus 1 percent of costs in excess of that amount. -- PSE also obtained from its rate settlement an imputed capital structure with an equity component of 40 percent and an authorized 11 percent return on equity. -- Approval of PSE's natural gas settlement agreement on Aug. 28, 2002 granted PSE a 5.8 percent increase in natural gas revenues intended to generate $35.6 million annually, beginning on Sept. 1, 2002. -- The number of gas customers in PSE's service territory grew by 2.6 percent to approximately 622,000 and electric customers increased by 1.8 percent to approximately 958,000 customers for electric service. -- Puget Energy sold a block of 5.75 million shares of common stock on Oct. 31, 2002. The net proceeds of $115 million were used to reduce PSE's debt. PSE's equity ratio increased to 36.1 percent at Dec. 1, 2002 from 30.3 percent at Dec. 31, 2001. PSE is well ahead of the requirement in its rate settlement to rebuild its common equity ratio to at least 39 percent over a 3 1/2- year period, with milestones of 34 percent, 36 percent and 39 percent at the end of 2003, 2004 and 2005 respectively. -- On Dec. 23, 2002, PSE replaced its $375 million line of credit, which was scheduled to expire in Feb. 13, 2003. PSE's new $400 million of short term liquidity facilities consist of a 364-day, $250 million unsecured credit agreement with eight banks and a three-year $150 million accounts receivable securitization program. PSE's short-term debt outstanding at year-end 2002 was $30.3 million, compared with $338.2 million at the end of 2001. Fourth-Quarter 2002 Results Puget Energy's fourth-quarter 2002 income for common stock was $49.6 million, or 55 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. , compared with income of $6.2 million, or 7 cents per share for the same period one year ago. The fourth quarter of 2001 was impacted by the under recovery of net power costs. This impact continued through the first quarter of 2002. PSE's fourth quarter earnings in 2002 were $47.8 million or 53 cents per share compared with $6.7 million or 8 cents per share in the fourth quarter of 2001. InfrastruX Group's income in the fourth quarter of 2002 was $2.0 million, or 2 cents per share, compared with a loss of $0.5 million or 1 cent per share for the same period in 2001. PSE's retail electric and gas sales in the fourth quarter of 2002 were adversely impacted by warmer than normal temperatures in the Pacific Northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. as compared to near normal temperatures in the same period in 2001. The negative impact warm temperatures had on PSE's retail sales was partially offset by a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. federal income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. that benefited Puget Energy's earnings by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3 cents per share. 2003 Outlook PSE's hydroelectric production and related power costs in 2003 are expected to be impacted negatively by drought conditions "Drought Conditions" is episode 126 of The West Wing. Plot Senator Rafferty, a new presidential candidate garnered much media attention with a ground-breaking speech about health care. in the Pacific Northwest region
The Northwest Region associated with El Nino weather conditions. The Northwest Rivers Forecast Center on Feb. 6, 2003 predicted that streamflows in the Columbia River Columbia River River, southwestern Canada and northwestern U.S. Rising in the Canadian Rockies, it flows through Washington state, entering the Pacific Ocean at Astoria, Ore.; it has a total length of 1,240 mi (2,000 km). Basin BASIN Boulder Area Sustainability Information Network (Boulder, Colorado) BASIN Brothers And Sisters In Need above Grand Coulee Dam Grand Coulee Dam (k `lē), 550 ft (168 m) high and 4,173 ft (1,272 m) long, on the Columbia River, N central Wash. would be
only 76 percent of normal. In a normal water year, PSE PSE1. pale soft exudative pork. 2. portosystemic encephalopathy. obtains about 38 percent of its energy supply from low cost hydroelectric facilities, primarily from dams below Grand Coulee Grand Coulee A gorge, about 48 km (30 mi) long, of north-central Washington, carved by the Columbia River. It is fed by water from the Grand Coulee Dam (built 1933-1942). on the Columbia River. If the forecasted streamflow Streamflow, or channel runoff, is the flow of water in streams, rivers, and other channels, and is a major element of the water cycle. It is one component of the runoff of water from the land to waterbodies, the other component being surface runoff. reductions occur, the company will need to replace that low-cost hydropower hy·dro·pow·er n. Hydroelectric power. with more expensive thermally-generated and purchased power. On Jan. 15, 2003, the company revised its previous 2003 earning estimate downward by 25 cents, taking into account the projected increase in power costs and the Purchased Cost Adjustment recovery mechanism in its electric retail rates. "We expect utility earnings to rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in 2004," said Reynolds. "The biggest single factor impacting our company's outlook for 2003 is the impact of persisting per·sist intr.v. per·sist·ed, per·sist·ing, per·sists 1. To be obstinately repetitious, insistent, or tenacious. 2. drought conditions in the Pacific Northwest. Given that we expect to reach the cumulative cap allowed under the PCA (tool, programming) PCA - A dynamic analyser from DEC giving information on run-time performance and code use. mechanism by the end of 2003, Puget Energy will be insulated in·su·late tr.v. in·su·lat·ed, in·su·lat·ing, in·su·lates 1. To cause to be in a detached or isolated position. See Synonyms at isolate. 2. from increases in power costs stemming stemming - stemmer from abnormal abnormal /ab·nor·mal/ (ab-nor´mal) not normal; contrary to the usual structure, position, condition, behavior, or rule. abnormal, adj hydrological hy·drol·o·gy n. The scientific study of the properties, distribution, and effects of water on the earth's surface, in the soil and underlying rocks, and in the atmosphere. conditions or other factors in 2004 and for the balance of the period that the PCA is in effect. Additionally, based on our current power-cost forecasts for 2003, we do not expect any increases to our customers' electric rates this year," added Reynolds. "With our earnings largely driven by stable utility operations and our small non-regulated business that is closely aligned with our core company strengths, we believe that Puget Energy is well-positioned to achieve our revised 2003 earnings target of $1.50-$1.60 per share," said Reynolds. Of this amount, PSE is estimated to contribute $1.35 - $1.45 per share and InfrastruX is estimated to contribute 15 cents per share. "In 2003, InfrastruX will be focused on organic growth of its existing group of companies, rather than growth through acquisitions," added Reynolds. "In light of the energy industry's shift away from 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. , we've we've Contraction of we have. we've have strengthened Puget Sound Puget Sound (py `jĕt), arm of the Pacific Ocean, NW Wash., connected with the Pacific by Juan de Fuca Strait, entered through the Admiralty Inlet and extending in two arms c. Energy's focus on
the fundamentals of a regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. natural gas and electricity utility business," added Reynolds. "We're we're Contraction of we are. we're we are positioning the company to meet our customer's energy requirements by working with state regulators and others in the Pacific Northwest to find low-cost energy resources. We are looking to add new energy resources as a regulated part of the business to serve our customers." 2002 Earnings Teleconference Puget Energy management will discuss the fourth quarter and 2002 results and the outlook for future performance at 10 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy (7 a.m. PST PST Paroxysmal supraventricular tachycardia, see there ) on Thursday Thursday: see week. , Feb. 13, 2003. The call will be broadcast live through a webcast at www.pse.com by accessing the Investors section of the website. The webcast will be archived and available for replay following the live call. Cautionary Statement: Certain statements contained in this news release are "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, among which include statements regarding estimates of earnings per share. In some cases, you can identify forward-looking statements by terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will likely result," "will continue" or similar expressions. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect actual results include, among others, governmental policies and regulatory actions, including those of the FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability and the WUTC WUTC Washington Utilities and Transportation Commission , with respect to financings, industry and rate structures, acquisition and disposal of assets and facilities, operation and construction of plant facilities, recovery of purchased energy and other capital investments, and present or prospective wholesale and retail competition; weather, which can have a serious impact on retail energy sales and on PSE's ability to procure To cause something to happen; to find and obtain something or someone. Procure refers to commencing a proceeding; bringing about a result; persuading, inducing, or causing a person to do a particular act; obtaining possession or control over an item; or making a person adequate supplies of gas, fuel or purchased power to serve its customers and on the cost of procuring Procuring, in general, is the act of acquiring goods or services, usually by contract. It may refer to:
The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of maturing debt. More information about these and other factors that potentially could affect Puget Energy's financial results is included in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 2001, Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the third quarter of 2002 and in their other public filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, Puget Energy and PSE undertake no obligation to update any forward-looking statements.
PUGET ENERGY -- SUMMARY INCOME STATEMENT
(In thousands, except per-share amounts)
Unaudited
Three months ended Twelve months ended
12/31(1) 12/31(1)
-------------------------------------------
2002 2001(2) 2002 2001(2)
-------------------------------------------
Operating revenues
Electric $387,071 $367,664 $1,365,885 $1,865,227
Gas 172,492 256,010 697,155 815,071
Other 94,404 49,390 329,282 206,262
-------------------------------------------
Total operating
revenues 653,967 673,064 2,392,322 2,886,560
-------------------------------------------
Operating expenses
Purchased electricity 202,640 193,493 645,371 918,676
Purchased gas 80,572 165,662 405,016 537,431
Electric generation
fuel 16,822 47,938 113,538 281,405
Residential exchange (49,832) (29,548) (149,970) (75,864)
FAS-133 unrealized
(gain)/loss 472 3,311 (11,612) (11,182)
Utility operations &
maintenance 77,715 74,982 286,220 265,789
Other operations &
maintenance 80,132 37,239 273,157 156,731
Depreciation &
amortization 58,248 57,282 228,743 217,540
Conservation
amortization 7,516 1,848 17,501 6,493
Taxes other than
income taxes 55,586 59,533 215,429 212,582
Income taxes 24,928 6,570 59,260 79,838
-------------------------------------------
Total operating
expenses 554,799 618,310 2,082,653 2,589,439
-------------------------------------------
Operating income 99,168 54,754 309,669 297,121
Other income (net of tax) 1,403 3,123 5,458 14,526
-------------------------------------------
Income before interest
charges & minority
interest 100,571 57,877 315,127 311,647
Interest charges 48,858 49,611 196,377 190,059
Minority interest 188 --- 867 ---
-------------------------------------------
Net income before
cumulative effect of
accounting change 51,525 8,266 117,883 121,588
FAS-133 transition
adjustment loss (net of
tax) --- --- --- 14,749
-------------------------------------------
Net Income 51,525 8,266 117,883 106,839
Less preferred stock
dividend accruals 1,940 2,085 7,831 8,413
-------------------------------------------
Income for common stock $49,585 $6,181 $110,052 $98,426
===========================================
Common shares outstanding 90,664 86,863 88,372 86,445
Diluted shares
outstanding 91,069 87,124 88,777 86,703
-------------------------------------------
Basic and diluted earnings
per common share before
before cumulative
effect of accounting
change $0.55 $0.07 $1.24 $1.31
Cumulative effect of
accounting change --- --- --- (0.17)
-------------------------------------------
Basic and diluted
earnings per common
share(3) $0.55 $0.07 $1.24 $1.14
===========================================
(1) Partial-year results may not accurately predict full-year
performance, as earnings are significantly affected by weather.
(2) Certain amounts previously reported have been reclassified to
conform with current year presentations with no effect on net income.
(3) Diluted earnings per common share include the dilutive effect
of securities related to employee compensation plans.
PUGET SOUND ENERGY(1) -- UTILITY OPERATING DATA
Unaudited
Three months ended Twelve months ended
12/31 12/31
-------------------------------------------------
2002 2001 2002 2001
-------------------------------------------------
Energy sales revenues
($ in thousands)
Electricity
Residential $154,430 $153,700 $622,499 $599,606
Commercial 140,940 127,631 540,885 520,702
Industrial 23,836 26,726 91,920 284,604
Other retail
sales(2) 21,374 31,825 5,567 (38,631)
-------------------------------------------------
Subtotal, retail
sales 340,580 339,882 1,260,871 1,366,281
Transportation(2) 2,678 2,201 15,551 2,537
Sales to other
utilities &
marketers(3) 37,405 42,881 88,288 533,945
Other(4) 6,408 (17,300) 1,175 (37,536)
-------------------------------------------------
Total
electricity
sales 387,071 367,664 1,365,885 1,865,227
Gas
Residential 112,899 163,861 428,569 486,761
Commercial 45,804 73,307 209,516 256,859
Industrial 6,738 12,881 35,119 49,453
-------------------------------------------------
Subtotal, retail
sales 165,441 250,049 673,204 793,073
Transportation 3,828 3,226 12,851 11,780
Other 3,223 2,735 11,100 10,218
-------------------------------------------------
Total gas sales 172,492 256,010 697,155 815,071
-------------------------------------------------
Total energy sales
revenues $559,563 $623,674 $2,063,040 $2,680,298
-------------------------------------------------
Energy sales volumes
(Unaudited)
Electricity (in mWh)
Residential 2,505,035 2,433,324 9,845,527 9,555,264
Commercial 2,033,143 1,952,848 8,012,538 7,953,165
Industrial 353,441 489,796 1,416,106 2,540,722
Other(2) 307,072 400,383 (11,970) (123,643)
-------------------------------------------------
Subtotal, retail
sales 5,198,691 5,276,351 19,262,201 19,925,508
Transportation(2) 505,366 247,791 2,307,081 363,826
Sales to other
utilities &
marketers(3) 1,087,401 1,036,832 3,466,571 4,982,342
-------------------------------------------------
Total mWh 6,791,458 6,560,974 25,035,853 25,271,676
Gas (in 000's of
therms)
Residential 162,779 177,112 500,672 494,648
Commercial 80,526 88,929 288,220 297,756
Industrial 12,690 15,993 50,683 57,977
Transportation 56,320 49,952 207,852 188,196
-------------------------------------------------
Total gas
volumes 312,315 331,986 1,047,427 1,038,577
-------------------------------------------------
Customers served(5)
(Unaudited)
Electricity
Residential 845,158 834,196 839,878 826,187
Commercial 106,852 100,574 104,273 100,015
Industrial 3,946 3,966 3,953 4,012
Other 2,010 1,844 1,932 1,758
Transportation 16 13 16 5
-------------------------------------------------
Total
electricity
customers 957,982 940,593 950,052 931,977
Gas
Residential 572,290 555,990 565,003 548,497
Commercial 46,807 47,082 46,523 46,783
Industrial 2,736 2,797 2,770 2,837
Transportation 134 112 122 112
-------------------------------------------------
Total gas
customers 621,967 605,981 614,418 598,229
-------------------------------------------------
Weather (Unaudited)
Actual heating
degree days 1,622 1,700 4,946 4,993
Normal heating
degree days 1,729 1,729 4,908 4,908
(1) Puget Sound Energy is the electric and natural gas utility
subsidiary of Puget Energy.
(2) Includes change in unbilled revenues.
(3) Includes optimization transactions reported net in the income
statement as required by EITF 02-03, effective after June 30, 2002.
Prior periods have been reclassified to conform with the presentation.
(4) Includes Conservation Trust collection and sales of non-core
gas suppliers.
(5) Quarterly data represents average served during December;
Twelve months ended data represents average for the 12 months ended.
PUGET ENERGY -- SEGMENT RESULTS
(In thousands)
Puget Sound Puget Energy
Three months ended Energy InfrastruX Other(1) Total
12/31/02 (Unaudited)
--------------------------------------------
Revenues $559,563 $90,273 $4,131 $653,967
Depreciation and
amortization 54,073 4,118 57 58,248
Income taxes 23,632 189 1,107 24,928
Operating income 93,489 3,561 2,117 99,167
Interest charges, net of
AFUDC 47,301 1,557 - 48,858
Net income 47,428 1,979 2,117 51,524
Goodwill, net - 125,555 - 125,555
Total assets 5,208,487 319,248 129,756 5,657,491
--------------------------------------------
Three months ended 12/31/01
(Unaudited)
--------------------------------------------
Revenues $623,673 $47,006 $2,384 $673,063
Depreciation and
amortization 53,653 3,625 4 57,282
Income taxes 4,634 1,062 874 6,570
Operating income 53,485 380 889 54,754
Interest charges, net of
AFUDC 48,467 1,144 - 49,611
Net income 7,968 (480) 778 8,266
--------------------------------------------
Twelve months ended 12/31/02
Revenues $2,063,041 $319,528 $9,753 $2,392,322
Depreciation and
amortization 215,097 13,426 220 228,743
Income taxes 50,600 6,703 1,957 59,260
Operating income 289,511 15,595 4,563 309,669
Interest charges, net of
AFUDC 190,861 5,516 - 196,377
Net income 104,044 9,455 4,384 117,883
--------------------------------------------
Twelve months ended 12/31/01
Revenues $2,680,298 $173,786 $32,476 $2,886,560
Depreciation and
amortization 208,705 8,820 15 217,540
Income taxes 68,005 2,956 8,877 79,838
Operating income 273,751 8,702 14,668 297,121
Interest charges, net of
AFUDC 186,129 3,656 274 190,059
Net income 80,137 2,518 24,184 106,839
--------------------------------------------
Goodwill at 12/31/01 - 102,151 - 102,151
Total assets at 12/31/01 5,178,601 229,125 139,251 5,546,977
--------------------------------------------
(1) Includes the non-regulated subsidiaries of Puget Sound Energy
and miscellaneous holding company expenses. The principal
non-regulated subsidiary of PSE is a real estate development company.
PSE sold the assets of its software development subsidiary, ConneXt,
Inc., in the third quarter of 2001.
PUGET SOUND ENERGY - CAPITALIZATION
(In thousands)
At December 31 2002 2001
--------------------------------------------
Amount % Amount %
--------------------------------------------
Short-term debt $30,340 0.7% $338,168 8.1%
Long-term debt, including
current maturities 2,093,832 53.0% 2,170,815 51.8%
Preferred Stock 103,162 2.6% 110,662 2.6%
Corporation obligated,
mandatorily redeemable 300,000 7.6% 300,000 7.2%
securities of subsidiary
trust holding solely
junior subordinated
debentures of the
corporation
Common Stock 1,426,121 36.1% 1,267,654 30.3%
--------------------------------------------
Total capitalization
including short-term debt $3,953,455 100.0%$4,187,299 100.0%
--------------------------------------------
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion