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REPEATING TO CORRECT GARBLE IN FOURTH PARAGRAPH PUBLIC SERVICE COMPANY REPORTS INCREASED QUARTERLY EARNINGS

 / REPEATING TO CORRECT GARBLE IN FOURTH PARAGRAPH /
 PUBLIC SERVICE COMPANY REPORTS INCREASED QUARTERLY EARNINGS
 GASTONIA, N.C., July 22 /PRNewswire/ -- Public Service Company of North Carolina, Inc.(NASDAQ-NMS: PSNC), a natural gas utility, today reported operating results for the quarter ended June 30, 1992, the third quarter of fiscal 1992. These quarterly operating results reflect the effect of weather which was 36 percent colder than normal during the first two months of the period.
 Total operating revenues for the quarter ended June 30, 1992 were $45,104,000, an increase of $11,349,000 over the same quarter the prior year, while the cost of gas increased $7,678,000 to $23,112,000. This resulted in gross margin for the current quarter of $21,992,000, a 20 percent increase as compared to $18,321,000 for the same quarter the prior year. Net income for the current quarter increased to $791,000, as compared to a net loss of $65,000 for the third quarter of fiscal 1991. Quarterly earnings per share were $.07, based on 10,295,000 average common shares outstanding, as compared to a loss of $.01 for the same quarter in fiscal 1991, based on 9,993,000 average common shares then outstanding.
 The year-to-year increase in quarterly gross margin reflects increased quantities of natural gas sold for heating requirements to higher-margin residential and small commercial customers. Quantities of gas sold to those customers increased 50 percent and 51 percent, respectively, due primarily to weather for the first two months of the quarter that was 102 percent colder than during the same period the prior year and to increases in both customer bases of 5 percent. Deliveries to lower-margin industrial and large commercial customers decreased 5 percent as compared to the same quarter in fiscal 1991 because sales to two large coal customers in June 1991 did not recur in June 1992. Quarterly results also included the effects of a rate order effective Nov. 1, 1991 from the North Carolina Utilities Commission which granted the Company increased annual revenues of $5,300,000 with a return on common equity of 12.9 percent and an overall return of 11.1 percent. Included in this rate order was a weather normalization adjustment mechanism. Application of this mechanism, effective November through April, lowered gross margin for the current quarter from the initial unadjusted level associated with the quarter's colder than normal weather.
 Operating revenues for the twelve months ended June 30, 1992 were $234,486,000 compared to $192,111,000 for the same period in 1991, a 22 percent increase. Gross margin for the comparative periods was $109,238,000 and $88,992,000, respectively, a 23 percent increase. Net income for the period increased to $17,962,000 as compared to $10,199,000 for the same period the prior year, a 76 percent increase. Earnings per average common share for the twelve months ended June 30, 1992 were $1.76, based on 10,171,000 average common shares outstanding. This compares to $1.02 for the prior twelve-month period, based on 9,880,000 average common shares then outstanding.
 Public Service Company distributes natural gas to over 246,000 customers in 87 cities, towns and communities in a 26-county service territory ranging from the Raleigh, Durham and Chapel Hill areas in the northeast; the Concord, Statesville, Gastonia and Forest City areas in the Piedmont; to the Asheville, Hendersonville and Brevard areas in the western part of the state. Public Service Company, through subsidiaries of its wholly-owned subsidiary, PSNC Natural Resources Corporation, also participates in oil and gas exploration and production, and retails propane gas.
 COMPARATIVE RESULTS
 (Amounts in Thousands, except Raleigh/Durham degree Day
 and Per Share Data)
 Three Months Nine Months Twelve Months
 1992 1991 1992 1991 1992 1991
 Periods Ended
 June 30:
 Normal degree
 days(A) 255 255 3,356 3,338 3,374 3,356
 Actual degree
 days(A) 348 171 3,165 2,702 3,189 2,720
 Percent of
 normal 136 67 94 81 95 81
 Total volume
 throughput
 (DT) 11,968 10,486 46,551 41,974 55,050 50,154
 Revenues $45,104 $33,755 $210,042 $168,795 $234,486 $192,111
 Gross margin $21,992 $ 18,321 $ 96,346 $ 78,435 $109,238 $ 88,992
 Operating
 income $ 4,508 $ 3,507 $ 31,221 $ 23,638 $ 31,742 $ 23,085
 Net income $ 791 $ (65) $ 21,099 $ 13,727 $ 17,962 $ 10,199
 Earnings for
 common $ 767 $ (92) $ 21,026 $ 13,643 $ 17,862 $ 10,085
 Average common
 shares 10,295 9,993 10,212 9,920 10,171 9,880
 Earnings per
 share $ .07 $ (.01) $ 2.06 $ 1.38 $ 1.76 $ 1.02
 Cash dividends
 declared
 per share $ .285 $ .275 $ .835 $ .825 $ 1.11 $ 1.10
 (A) Degree day information for the nine and twelve months reflects an additional day for leap year in 1992.
 -0- 7/22/92
 /CONTACT: Charles E. Zeigler, Jr., President and Chief Executive Officer, Public Service Company of North Carolina, 704-864-6731/
 (PSNC) CO: Public Service Company of North Carolina ST: North Carolina IN: UTI SU: ERN


CM -- CH004X -- 1872 07/22/92 11:49 EDT
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Date:Jul 22, 1992
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