ALLEGHENY & WESTERN ENERGY ANNOUNCES SECOND QUARTER EARNINGS
NEW YORK, Feb. 20 /PRNewswire/ -- John G. McMillian, chairman and chief executive officer of Allegheny & Western Energy Corporation (NASDAQ: ALGH), announced today as part of the discussion at the annual meeting of shareholders that during the second quarter of fiscal 1992 the company earned $1,977,000 or 24 cents per share compared to $2,378,000 or 29 cents per share in the second quarter of fiscal 1991.
Pretax profit was $2,824,000 for the second quarter in fiscal 1992 compared to a pretax profit of $3,397,000 in fiscal 1991. For the first six months of fiscal 1992 the company earned $278,000 or 3 cents per share compared to $765,000 or 9 cents per share in the comparable period in fiscal 1991.
Allegheny & Western's non-utility part of the business was impacted by lower oil and gas prices, reduced production volume as well as a decrease in investment and other income. Although Mountaineer had colder weather in its service area in the first half of fiscal 1992 compared to the same period last year, its distribution, general and administrative expenses increased due to higher labor, employee medical expenses and other employee benefit costs. These increases were partially inflationary in nature except for Mountaineer's employee medical expenses. Accordingly, on Jan. 17, 1992, Mountaineer Gas Company filed a request for an approximate $8.3 million increase in its base rates with the Public Service Commission of West Virginia (this increase reflects the non-gas cost portion of the rates). Mountaineer requested that the filing take effect in February 1992, however, the commission has determined that any increase will not be effective until November 1992.
Notwithstanding the lower earnings for the first half of the year, Allegheny's balance sheet was stronger; cash and equivalents on Dec. 31, 1991, were $4,120,000 compared to $1,550,000 on Dec. 31, 1990. On Dec. 31, 1991, the company had working capital of $19,704,000 compared to $16,386,000 on Dec. 31, 1990. The current ratio also improved slightly during the same accounting periods to 1.55 to 1 on Dec. 31, 1991, vs. 1.36 to 1 on Dec. 31, 1990. In addition, Mountaineer had no seasonal short-term borrowings outstanding on Dec. 31, 1991, compared to the previous year in which Mountaineer had short-term borrowings of $11,607,000 as of Dec. 31, 1990.
ALLEGHENY & WESTERN ENERGY CORPORATION
Periods ended Three Months Six Months
Dec. 31 1991 1990 1991 1990
Revenues $58,921,000 $59,242,000 $81,717,000 $83,207,000
Pretax income 2,824,000 3,397,000 397,000 1,093,000
Net income 1,977,000 2,378,000 278,000 765,000
Earnings per share $.24 $.29 $.03 $.09
Avg. shrs. outstg. 8,083,188 8,083,188 8,083,188 8,083,188
Allegheny & Western Energy Corporation, based in Charleston, W.Va., conducts oil and gas exploration and development primarily in West Virginia, and owns Mountaineer Gas Company, the largest gas distribution utility in West Virginia, operating approximately 3,600 miles of natural gas distribution pipeline.
/CONTACT: Jonathan M. Conrad of Allegheny & Western Energy, 212-758-5556/
(ALGH) CO: Allegheny & Western Energy Corporation ST: West Virginia IN: OIL SU: ERN CK -- NY002 -- 0786 02/20/92 09:01 EST