REPEAT/Providence Energy Announces Improved Third Quarter Results; Results Reflect Stronger Earnings Base of Core Businesses.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)--Aug. 4, 1999-- Providence Energy Corporation (NYSE NYSE See: New York Stock Exchange :PVY PVY Potato Virus Y PVY Presion Venosa Yugular (Spanish: Jugular Venous Pressure ) ) today reported results for the 1999 third quarter that were both ahead of plan and stronger than the comparable quarter of 1998. For the three months ended June June: see month. 30, 1999, ProvEnergy reported a net loss of ($376,000), or ($.06) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, versus a net loss of ($1,843,000), or ($.31) per diluted share, for the 1998 third quarter. Losses in the summer months are typical for gas distribution companies 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. because of the seasonal nature of heating sales. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the quarter was $20,023,000, up 3.6 percent over last year's third quarter margin of $19,327,000. Temperatures for the 1999 third quarter were 12.9 percent warmer than normal and 5.1 percent warmer than for the comparable quarter last year, which reduced margin by about $525,000, and had an earnings impact of ($.06) per diluted share. This margin reduction was offset by the recognition of revenues recoverable under the "exogenous Exogenous Describes facts outside the control of the firm. Converse of endogenous. changes" provision of 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. The reduction in the net loss for the quarter was also attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to reimbursements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc ProvGas' LNG LNG (liquefied natural gas): see under natural gas. service agreement and to ProvEnergy's participation in the Providence Place Providence Place, opened on August 20, 1999, is a modern urban shopping mall in the central part of Providence, Rhode Island, near the Rhode Island State House and Union Station. Mall. For the nine months ended June 30, 1999, the operating margin was $91,134,000, up 6.0 percent over the operating margin in the first nine months of 1998 of $86,003,000. Net income was $13,537,000, or $2.25 per diluted share, versus $12,095,000, or $2.04 per diluted share, in 1998. The per-share results reflect the fact that the weighted average number of shares outstanding in the first nine months of 1999 of 6,005,200 shares was higher than 5,916,800 shares a year earlier. Temperatures for the first nine months of 1999 were 8.2 percent warmer than normal and 1.4 percent warmer than the same period of 1998. Commenting on ProvEnergy's results, James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. H. Dodge, chairman and chief executive officer, stated, "Our performance for the quarter and the first nine months continues to reflect a stronger earnings base for the company that has positive implications looking out over the horizon of the next three to five years. While our revenues continued to be adversely impacted by warmer weather, our margins and the numbers of customers are growing and operations are significantly stronger than they were last year at this time." Dodge added, "The outlook for the remainder of the year continues to be favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. because of the operating cost reductions enacted earlier this year; further year-over-year improvement in our energy marketing and fuel oil company operations, which include the opening of the Providence Place Mall in August of 1999." ProvEnergy and a joint-venture partner have been selected to be the exclusive provider of electric, heat, air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. and related energy services to most of the Providence Place Mall for the next 30 years. 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, Keenan Keenan is a male Irish name which means "Ancient, Distant". Keenan is an anglicisation of the Irish name Cianáin. The Keenans were historians to the McGuire clan. 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. ProvEnergy has paid cash dividends for 149 years, an achievement unmatched by any other gas-distribution company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . 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 presentation 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 Third Quarter Ended June 30, 1999
Quarter Quarter
Ended Ended
June 30, June 30,
1999 1998
Income Statement
Energy revenues $ 38,737 $ 39,462
Cost of energy 18,714 20,135
Operating margin 20,023 19,327
Operating expenses:
Operation and maintenance 11,877 13,193
Depreciation and
amortization 4,267 3,660
Taxes, other than income 3,221 3,307
Total operating expenses 19,365 20,160
Operating income (loss) 658 (833)
Other income 815 219
Interest expense 2,049 2,032
Income (loss) before Federal
income taxes (576) (2,646)
Provision for Federal income
taxes (269) (908)
Net income (loss) (307) (1,738)
Preferred dividends of
subsidiary (69) (105)
Earnings (loss) applicable to
common stock (376) ($ 1,843)
Common Shares Outstanding
End of Period 6,020.2 5,948.8
Average - Basic 6,012.0 5,935.6
Average - Diluted 6,023.6 5,935.6
Basic Earnings Per Share ($) (0.06) (0.31)
Diluted Earnings Per Share ($) (0.06) (0.31)
Cash Flow Per Share (a) ($) 0.99 2.25
Dividends Paid Per Share ($) 0.27 0.27
Capital Expenditures ($) 8,551 7,916
Book Value Per Share ($) 16.28 15.98
Market Closing Price ($) 26.69 21.06
Balance Sheet
% total capitalization represented by:
Common equity 50.56 50.83
Preferred stock 1.65 2.57
Long-term debt 47.80 46.60
Unrealized loss on
financial instruments (0.01) --
Gas Distribution Operating Statistics
Gas sold and transported (MMcf)
(1 MMcf is one million cubic feet)
Residential 1,844 2,050
Commercial/industrial 605 787
Firm transportation 1,087 968
Total firm 3,536 3,805
Interruptible and other 229 296
Non-firm transportation 337 196
Company use and other 101 120
Total gas delivered 4,203 4,417
Twelve month average customers 171,193 169,434
Number of Employees 552 553
Degree Days - Actual 627 661
Normal 720 720
Warmer than normal (12.9)% (8.2)%
Fiscal Fiscal
YTD '99 YTD '98
Income Statement
Energy revenues $ 196,344 $ 195,200
Cost of energy 105,210 109,197
Operating margin 91,134 86,003
Operating expenses:
Operation and maintenance 40,236 38,996
Depreciation and
amortization 12,995 11,029
Taxes, other than income 11,812 11,580
Total operating expenses 65,043 61,605
Operating income (loss) 26,091 24,398
Other income 1,032 570
Interest expense 6,306 6,089
Income (loss) before Federal
income taxes 20,817 18,879
Provision for Federal income
taxes 7,002 6,401
Net income (loss) 13,815 12,478
Preferred dividends of
subsidiary (278) (383)
Earnings (loss) applicable to
common stock $ 13,537 $ 12,095
Common Shares Outstanding
End of Period 6,020.2 5,948.8
Average - Basic 5,994.2 5,906.4
Average - Diluted 6,005.2 5,916.8
Basic Earnings Per Share ($) 2.26 2.05
Diluted Earnings Per Share ($) 2.25 2.04
Cash Flow Per Share (a) ($) 3.91 6.54
Dividends Paid Per Share ($) 0.81 0.81
Capital Expenditures ($) 24,704 19,004
Book Value Per Share ($) 16.28 15.98
Market Closing Price ($) 26.69 21.06
Balance Sheet
% total capitalization represented by:
Common equity 50.56 50.83
Preferred stock 1.65 2.57
Long-term debt 47.80 46.60
Unrealized loss on
financial instruments (0.01) --
Gas Distribution Operating Statistics
Gas sold and transported (MMcf)
(1 MMcf is one million cubic feet)
Residential 11,973 12,005
Commercial/industrial 4,237 5,207
Firm transportation 4,583 3,518
Total firm 20,793 20,730
Interruptible and other 733 1,143
Non-firm transportation 1,156 911
Company use and other 701 857
Total gas delivered 23,383 23,641
Twelve month average customers 171,193 169,434
Number of Employees 552 553
Degree Days - Actual 5,090 5,161
Normal 5,546 5,546
Warmer than normal (8.2)% (6.9)%
Twelve Twelve
months months
ended ended
June 30, 1999 June 30, 1998
Income Statement
Energy revenues $ 222,450 $ 228,715
Cost of energy 118,746 126,761
Operating margin 103,704 101,954
Operating expenses:
Operation and maintenance $ 53,233 $ 51,847
Depreciation and
amortization $ 16,451 $ 14,248
Taxes, other than income 14,213 14,271
Total operating expenses 83,897 80,366
Operating income (loss) 19,807 21,588
Other income $ 1,067 $ 506
Interest expense 8,350 7,955
Income (loss) before Federal
income taxes 12,524 14,139
Provision for Federal income
taxes 4,258 4,827
Net income (loss) 8,266 9,312
Preferred dividends of
subsidiary (382) (522)
Earnings (loss) applicable to
common stock $ 7,884 $ 8,790
Common Shares Outstanding
End of Period 6,020.2 5,948.8
Average - Basic 5,985.5 5,885.3
Average - Diluted 5,996.4 5,894.4
Basic Earnings Per Share ($) 1.32 1.49
Diluted Earnings Per Share ($) 1.31 1.49
Cash Flow Per Share (a) ($) 4.41 6.23
Dividends Paid Per Share ($) 1.08 1.08
Capital Expenditures ($) 34,463 27,650
Book Value Per Share ($) 16.28 15.98
Market Closing Price ($) 26.69 21.06
Balance Sheet
% total capitalization represented by:
Common equity 50.56 50.83
Preferred stock 1.65 2.57
Long-term debt 47.80 46.60
Unrealized loss on
financial instruments (0.01) --
Gas Distribution Operating Statistics
Gas sold and transported (MMcf)
(1 MMcf is one million cubic feet)
Residential 12,975 13,218
Commercial/industrial 4,757 6,067
Firm transportation 5,288 3,518
Total firm 23,020 22,803
Interruptible and other 999 1,727
Non-firm transportation 1,244 1,671
Company use and other 790 790
Total gas delivered 26,053 26,991
Twelve month average customers 171,193 169,434
Number of Employees 552 553
Degree Days - Actual 5,135 5,249
Normal 5,652 5,652
Warmer than normal (9.1)% (7.1)%
(a) Cash flow per share calculated by taking net cash provided by
operations for each quarter and dividing by the average common shares
outstanding for the quarter.
Results are unaudited.
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