Strong International Initiatives Drive Cinergy Third Quarter Business Results.CINCINNATI--(BUSINESS WIRE)--Oct. 28, 1999-- Cinergy Cinergy Corp. was an energy company based in Cincinnati, Ohio. Cinergy was created on October 24, 1994, from the merger of the Cincinnati Gas & Electric Company (CG&E) with PSI Energy and later included Union Light, Heat & Power (ULH&P) as well. Corp. (NYSE NYSE See: New York Stock Exchange :CIN CIN cervical intraepithelial neoplasia. Cervical intraepithelial neoplasia (CIN) A term used to categorize degrees of dysplasia arising in the epithelium, or outer layer, of the cervix. ) announced today that earnings for the third quarter of 1999 were $0.76 per share on a 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. basis, up more than 10 percent over results of $0.69 per share in the third quarter of 1998. "The third quarter clearly accentuated the volatility of our businesses and the tough decisions required to be successful in the future. This unprecedented time in our history highlighted several key areas of success for Cinergy," said 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. E. Rogers, Cinergy vice chairman, president and chief executive officer. "Our international efforts were rewarded through our timely recognition and response to the adverse change in the 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. environment in the United Kingdom, leading to the sale of our share in Midlands Electricity The Midlands Electricity Board was formed in 1947, under the Electricity Act of that year. The counterpart of the East Midlands board, it served southern, and western parts of Warwickshire, as well as the counties of Worcestershire, Herefordshire, Shropshire, and Staffordshire, as plc., adding $0.43 to earnings. This is the third year in the past five that earnings were bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by timely sales of assets as markets began to adversely change, demonstrating our ability to monetize Monetize 1. To convert into money. 2. To convert from securities into currency that can be used to purchase goods and services. Notes: For example, you'll often hear Internet marketers talk about "monetizing website visitors. investments quickly for the benefit of shareholders." Also, in the third quarter, the company once again demonstrated the ability to operate its facilities under extremely adverse weather conditions. "We are very pleased with the continued outstanding performance of our people operating the generation fleet and the electric transmission and distribution system. I am proud that during one of the most severe heat waves in our history, we continued to place the highest priority on serving human needs without significant interruptions," said Rogers. Additionally, to meet continuing growth in energy demand in the region, Cinergy Capital & Trading, Inc., a part of the energy commodities business unit, crafted a joint venture with Duke Energy North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , in which they will jointly own, and Cinergy is expected to operate, three wholesale generating facilities currently under development in Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). and Ohio, totaling about 1,400 megawatts of generating capacity. These facilities are located in the Cinergy service area and will address merchant energy opportunities and continuing concerns about transmission constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. . The construction of two 640-megawatt plants began in August. Along with a 130-megawatt facility, they are planned to be operational by the summer of 2000. "While the imbalance imbalance /im·bal·ance/ (im-bal´ans) 1. lack of balance, such as between two opposing muscles or between electrolytes in the body. 2. dysequilibrium (2). in our supply business clearly plagued us during this period, we are galvanized gal·va·nize tr.v. gal·va·nized, gal·va·niz·ing, gal·va·niz·es 1. To stimulate or shock with an electric current. 2. in our resolve to acquire the assets, such as the peakers Peakers (www.peakers.net) was a famous Sydney based rave, dance music and drug discussion website that ran from 1998 - 2003. Initially started by a group of friends who were all ravers, Peakers was an online guestbook where ravers could talk to each other midweek and post , and the skill sets required to create profitable margins and to control risks, while significantly positioning us for growth in the region," said Rogers. Cinergy will host a meeting for the investment community in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. on November November: see month. 3, 1999 to discuss its supply business and financial picture for the year 2000. The meeting will be held at 4 p.m. at the Downtown New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Marriott Marriott has several meanings:
For the third quarter of 1999, net income was $121.6 million compared with $109.4 million in the third quarter a year ago. For the nine months ended September September: see month. 30, 1999, net income was $307.9 million, or $1.93 per share, compared with net income of $189.6 million, or $1.20 per share, after previously reported charges, for the comparable period in 1998. The contribution to earnings of the company's international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. increased $0.36 per share in the third quarter compared with the same period a year ago, primarily the result of the sale of the company's share of Midlands Electricity, as previously reported. Domestic non-regulated businesses were down $0.02 per share over a year ago. Earnings from 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. operations, including the supply business, decreased $0.27 per share in the third quarter 1999 compared with a year earlier. The decrease is primarily due to the results of the supply business and more normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of and maintenance expenses following significant cost reductions in 1998, offset somewhat by growth in the service territory. Third quarter results for the supply business were down $0.36 per share from the same period in 1998. This is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the previously reported losses experienced in July July: see month. 1999. "All of our business units continued to make solid contributions during the quarter," said Rogers. Energy commodities, energy delivery, Cinergy Investments and international posted significant additional accomplishments: -- In closing on the sale of the company's share of Midlands Midlands, region of central England. It is usually considered to include the counties of Derbyshire, Leicestershire, Northamptonshire, Nottinghamshire, Staffordshire, Warwickshire, and Worcestershire, as well as Birmingham and the surrounding metropolitan districts , the international business unit retained Midlands' natural gas trading business and the 29-megawatt Redditch Redditch, city (1991 pop. 61,639) and district, Worcestershire, central England. Redditch was designated one of the new towns in 1964 to alleviate overpopulation in Birmingham and the Black Country. Power Station. -- The IBU IBU International Biathlon Union IBU Ibuprofen IBU Inshore Boat Unit (US Navy) IBU International Bitterness Unit IBU International Boxing Union IBU Independent Business Unit IBU Inland Boatman's Union IBU International Banking Unit also expanded its renewable energy Renewable energy utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. Renewable energy technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation. portfolio by acquiring interests in two wind energy projects. -- The ECBU ECBU Examen Cytobactériologique des Urines received approval by the Indiana Utility Regulatory Commission on the purchase of a coal gasification Coal gasification The conversion of coal or coal char to gaseous products by reaction with steam, oxygen, air, hydrogen, carbon dioxide, or a mixture of these. contract from Dynegy Dynegy Inc. (NYSE: DYN), headquartered in Houston, Texas, provides wholesale power, capacity and ancillary services to utilities, cooperatives, municipalities and other energy companies in 15 states in three key U.S. Inc. for the Wabash River Wabash River River, flowing westward across Indiana, U.S. After crossing Indiana, the Wabash forms the 200-mi (320-km) southern section of the Indiana-Illinois boundary below Terre Haute, Ind. Repowering Project, which will provide cost savings for customers while reducing in the long term the company's stranded strand 1 n. The land bordering a body of water; a beach. v. strand·ed, strand·ing, strands v.tr. 1. To drive or run ashore or aground. 2. investment risk in Indiana. -- Trigen-Cinergy Solutions, a part of Cinergy Investments, signed an agreement with Lafarge Gypsum gypsum (jĭp`səm), mineral composed of calcium sulfate (calcium, sulfur, and oxygen) with two molecules of water, CaSO4·2H2O. It is the most common sulfate mineral, occurring in many places in a variety of forms. for construction and operation of a combined heat and power system for its new wallboard manufacturing plant in Silver Grove, Ky. -- Cadence cadence, in music, the ending of a phrase or composition. In singing the voice may be raised or lowered, or the singer may execute elaborate variations within the key. Network, a joint venture that is also a CIBU portfolio company, continues to sign major national chains to its web-based utility cost-tracking and cost-reduction services, capturing 50 percent of the market's growth, while serving restaurant, retail and supermarket chains in all 50 states. -- The energy delivery business unit and the other business units successfully tested its emergency contingency plan A plan involving suitable backups, immediate actions and longer term measures for responding to computer emergencies such as attacks or accidental disasters. Contingency plans are part of business resumption planning. for the Year 2000 and found that its systems, applications and software were not affected by the 9-9-99 phenomenon. Cinergy Corp. is one of the nation's leading diversified diversified (di·verˑ·s energy companies. Its operating companies operating company A business that engages in transactions with outsiders. , The Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. Gas & Electric Company and PSI Energy, Inc., serve more than 1.4 million electric customers and 470,000 gas customers in Indiana, Ohio and Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. . Cinergy is active in U.S. power and natural gas markets and maintains a 24-hour-a-day, seven-day-a-week trading operation. The company's international business unit, Cinergy Global Resources, has assets in power generation, transmission and distribution projects in the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , the United Kingdom, Zambia Zambia (zăm`bēə), officially Republic of Zambia, republic (2005 est. pop. 11,262,000), 290,584 sq mi (752,614 sq km), central Africa. , Bangladesh Bangladesh (bäng-lädĕsh`, băng–) [Bengali,=Bengal nation], officially People's Republic of Bangladesh, republic (2005 est. pop. 144,320,000), 55,126 sq mi (142,776 sq km), S Asia. , Estonia Estonia (ĕstō`nēə), Estonian Eesti, officially Republic of Estonia, republic (2005 est. pop. 1,333,000), 17,413 sq mi (45,100 sq km). , and 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. . Following are summaries of Cinergy's unaudited consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial information for the third quarter and the nine month period ended September 30. -0-
CINERGY CORP.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Periods Ended September 30, 1999
(unaudited)
(in thousands, except per share amounts)
----------------------------------------------------------------------
Quarter Ended
-----------------------------
1999 1998
-------------- --------------
Operating Revenues
Electric $1,396,837 $1,602,211
Gas 375,837 359,830
Other 9,524 14,670
-------------- --------------
1,782,198 1,976,711
Operating Expenses
Fuel used in electric production 199,964 206,649
Gas purchased 349,259 324,145
Purchased and exchanged power 691,387 864,104
Other operation 206,665 176,055
Maintenance 38,665 50,260
Depreciation 81,096 74,900
Amortization of phase-in deferrals 6,547 5,594
Amortization of post-in-service
deferred operating expenses 1,091 1,091
Taxes other than income taxes 70,077 69,346
-------------- --------------
1,644,751 1,772,144
Operating Income 137,447 204,567
Other Income and (Expenses) - Net
Allowance for equity funds used
during construction 1,562 661
Phase-in deferred return 1,464 1,810
Equity in earnings of
unconsolidated subsidiaries 99,644 11,421
Other - net 5,703 (2,586)
-------------- --------------
108,373 11,306
Interest and Other Charges
Interest on long-term debt 51,265 48,778
Other interest 6,628 14,155
Allowance for borrowed funds
used during construction (1,489) (1,983)
Preferred dividend
requirements of subsidiaries 1,364 1,365
-------------- --------------
57,768 62,315
Income Before Taxes 188,052 153,558
Income Taxes 66,489 44,127
-------------- --------------
Net Income $121,563 $109,431
Other comprehensive income,
net of tax 2,803 (329)
-------------- --------------
Comprehensive Income $124,366 $109,102
Average Common Shares Outstanding 158,907 158,539
Earnings Per Common Share
Net Income $0.77 $0.69
Earnings Per Common Share
- Assuming Dilution
Net Income $0.76 $0.69
Dividends Declared Per Common Share $0.45 $0.45
Year To Date
-----------------------------
1999 1998
-------------- --------------
Operating Revenues
Electric $3,307,462 $3,782,857
Gas 1,125,812 686,923
Other 26,602 23,101
-------------- --------------
4,459,876 4,492,881
Operating Expenses
Fuel used in electric production 583,831 542,715
Gas purchased 977,174 544,488
Purchased and exchanged power 1,191,755 1,775,909
Other operation 572,770 601,453
Maintenance 153,540 144,939
Depreciation 240,498 222,326
Amortization of phase-in deferrals 19,642 16,673
Amortization of post-in-service
deferred operating expenses 3,272 3,272
Taxes other than income taxes 208,688 208,125
-------------- --------------
3,951,170 4,059,900
Operating Income 508,706 432,981
Other Income and (Expenses) - Net
Allowance for equity funds used
during construction 2,841 793
Phase-in deferred return 4,392 5,432
Equity in earnings of
unconsolidated subsidiaries 157,348 32,992
Other - net (10,198) (18,075)
-------------- --------------
154,383 21,142
Interest and Other Charges
Interest on long-term debt 153,113 136,371
Other interest 29,695 50,994
Allowance for borrowed funds
used during construction (4,851) (5,855)
Preferred dividend
requirements of subsidiaries 4,093 5,153
-------------- --------------
182,050 186,663
Income Before Taxes 481,039 267,460
Income Taxes 173,173 77,891
-------------- --------------
Net Income $307,866 $189,569
Other comprehensive income,
net of tax (6,749) (798)
-------------- --------------
Comprehensive Income $301,117 $188,771
Average Common Shares Outstanding 158,844 158,110
Earnings Per Common Share
Net Income $1.94 $1.20
Earnings Per Common Share
- Assuming Dilution
Net Income $1.93 $1.20
Dividends Declared Per Common Share $1.35 $1.35
CINERGY CORP.
SELECTED OPERATING STATISTICS
For the Periods Ended September 30, 1999
(In thousands, except where noted)
----------------------------------------------------------------------
Quarter Ended
---------------------------
% Increase
1999 1998 /(Decrease)
----------- ----------- -----------
Operating Revenues
Residential $ 365,761 $ 340,092 7.5
Commercial 227,575 208,480 9.2
Industrial 203,156 182,505 11.3
Other retail 32,599 29,577 10.2
Firm power sales 51,988 37,572 38.4
Non-firm power sales 512,103 830,966 (38.4)
All other 22,639 27,551 (17.8)
----------- ----------- -----------
Total regulated
revenues 1,415,821 1,656,743 (14.5)
Non-regulated
revenues 366,377 319,968 14.5
----------- ----------- -----------
Total revenues $ 1,782,198 $ 1,976,711 (9.8)
KWH Sales
Residential 4,921,341 4,298,263 14.5
Commercial 3,920,245 3,612,408 8.5
Industrial 5,073,764 4,600,335 10.3
Other retail 546,942 502,062 8.9
Firm power sales 1,691,144 1,245,342 35.8
Non-firm power sales 12,530,670 23,997,328 (47.8)
----------- ----------- -----------
Total regulated
sales 28,684,106 38,255,738 (25.0)
Non-regulated sales 247,429 - -
----------- ----------- -----------
Total sales 28,931,535 38,255,738 (24.4)
MCF Sales
Residential 2,158 4,211 (48.8)
Commercial 867 940 (7.8)
Industrial 218 298 (26.8)
Other retail 657 358 83.5
All other 18 24 (25.0)
----------- ----------- -----------
Total regulated sales 3,918 5,831 (32.8)
Gas transportation 7,142 11,663 (38.8)
----------- ----------- -----------
Total regulated sales
and transportation 11,060 17,494 (36.8)
Non-regulated sales 126,666 150,811 (16.0)
----------- ----------- -----------
Total sales 137,726 168,305 (18.2)
Customers (end of period)
Electric
Gas
KWH
Generated - net 16,047,784 15,541,288 3.3
Purchased and exchanged
power 13,096,517 23,747,261 (44.9)
----------- ----------- -----------
Total 29,144,301 39,288,549 (25.8)
Losses and company use 460,195 1,032,811 (55.4)
----------- ----------- -----------
Total regulated
sales 28,684,106 38,255,738 (25.0)
Fuel Cost Per Million Btu $1.15 $1.29 (10.9)
MCF
Natural gas purchased 2,999 3,870 (22.5)
Transportation received 7,668 11,786 (34.9)
Produced - - -
----------- ----------- -----------
Total 10,667 15,656 (31.9)
Gas transportation 7,142 11,663 (38.8)
Losses and company use (393) (1,838) 78.6
----------- ----------- -----------
Total regulated sales 3,918 5,831 (32.8)
Cost per MCF Purchased (cents) 475.29 556.67 (14.6)
Year to Date
--------------------------
% Increase
1999 1998 /(Decrease)
----------- ----------- -----------
Operating Revenues
Residential $ 1,019,690 $ 960,219 6.2
Commercial 636,322 615,200 3.4
Industrial 559,746 538,128 4.0
Other retail 96,437 88,999 8.4
Firm power sales 133,019 89,902 48.0
Non-firm power sales 982,360 1,697,480 (42.1)
All other 78,455 70,603 11.1
----------- ----------- -----------
Total regulated
revenues 3,506,029 4,060,531 (13.7)
Non-regulated
revenues 953,847 432,350 120.6
----------- ----------- -----------
Total revenues $ 4,459,876 $ 4,492,881 (0.7)
KWH Sales
Residential 12,645,045 11,364,707 11.3
Commercial 10,068,225 9,591,291 5.0
Industrial 14,103,333 13,570,909 3.9
Other retail 1,441,935 1,370,790 5.2
Firm power sales 4,615,111 2,961,994 55.8
Non-firm power sales 30,952,548 60,387,015 (48.7)
----------- ----------- -----------
Total regulated
sales 73,826,197 99,246,706 (25.6)
Non-regulated sales 605,150 - -
----------- ----------- -----------
Total sales 74,431,347 99,246,706 (25.0)
MCF Sales
Residential 21,873 23,265 (6.0)
Commercial 10,084 10,129 (0.4)
Industrial 1,905 2,223 (14.3)
Other retail 1,798 1,675 7.3
All other 212 196 8.2
----------- ----------- -----------
Total regulated sales 35,872 37,488 (4.3)
Gas transportation 29,775 42,013 (29.1)
----------- ----------- -----------
Total regulated sales
and transportation 65,647 79,501 (17.4)
Non-regulated sales 391,472 193,314 102.5
----------- ----------- -----------
Total sales 457,119 272,815 67.6
Customers (end of period)
Electric 1,453,813 1,424,589 2.1
Gas 471,464 460,258 2.4
KWH
Generated - net 45,154,172 43,041,365 4.9
Purchased and exchanged
power 30,450,060 59,255,778 (48.6)
----------- ----------- -----------
Total 75,604,232 102,297,143 (26.1)
Losses and company use 1,778,035 3,050,437 (41.7)
----------- ----------- -----------
Total regulated
sales 73,826,197 99,246,706 (25.6)
Fuel Cost Per Million Btu $1.23 $1.23 -
MCF
Natural gas purchased 38,303 37,046 3.4
Transportation received 27,633 42,028 (34.3)
Produced 41 5 720.0
----------- ----------- -----------
Total 65,977 79,079 (16.6)
Gas transportation 29,775 42,013 (29.1)
Losses and company use 330 (422) 178.2
----------- ----------- -----------
Total regulated sales 35,872 37,488 (4.3)
Cost per MCF Purchased (cents) 296.48 377.43 (21.4)
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