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CALIFORNIA ENERGY REPORTS THIRD QUARTER 1993 EARNINGS

 OMAHA, Neb., Oct. 14 /PRNewswire/ -- California Energy Company, Inc. (NYSE: CE) today reported that income before provision for income taxes for the quarter ended Sept. 30, 1993 increased 17.6 percent to $24,170,000, while net income after the effect of the Omnibus Budget Reconciliation Act of 1993 ("1993 Act") was $16,677,000 and net income available to common shareholders was $15,498,000 (net of $1,179,000 in preferred stock dividends paid in kind), or $0.41 per common share against 38,180,000 common shares. The 1993 Act became effective during the third quarter of 1993, resulting in an increase in the provision for income taxes by approximately $1,500,000. For the same period last year, income before provision for income taxes was $20,554,000 while net income was $15,670,000 and net income available to common shareholders was $14,581,000 (net of 1,089,000 in preferred stock dividends paid in kind), or $0.39 per common share against 37,331,000 common shares. Revenues for the quarter ended Sept. 30, 1993 were $46,257,000, up 12.4 percent as compared with $41,137,000 for the same 1992 three-month period.
 For the nine-month period ended Sept. 30, 1993, net income available to common shareholders was $35,482,000 (net of $3,429,000 in preferred stock dividends paid in kind), or $0.92 per common share against 38,436,000 common shares, compared with net income available to common shareholders of 27,451,000 (net of $3,165,000 in preferred stock dividends paid in kind), or $0.73 per common share against 37,503,000, common shares for the same period last year. Revenues for the nine-month period ending Sept. 30, 1993, were 113,340,000 up 15.6 percent as compared with $98,061,000 for the same nine-month period in 1992.
 David Sokol, president and CEO stated: "We are pleased to report that facilities operated by the company averaged 294 net megawatts in the third quarter of 1993, with the Coso operations achieving the maximum capacity and bonus payments under their contracts. The success of our existing operations continues to strengthen our financial position, allowing us to actively pursue new development opportunities, such as the two power sales contracts for a total of 300 megawatts recently signed in the Philippines."
 California Energy Company develops environmentally responsible power generating facilities. The company operates five facilities currently producing in excess of 250 megawatts.
 CALIFORNIA ENERGY COMPANY, INC.
 Consolidated Operating Results
 (in thousands except per share amounts)
 Three months ended
 9/30/93 9/30/92
 Revenues $46,257 $41,137
 Income Before Provision for
 Income Taxes 24,170 20,554
 Net Income $16,677 $15,670
 Preferred Dividends 1,179(a) 1,089(a)
 Net Income Available for
 Common Shareholders 15,498 $14,581
 Net Income Per Common Share $0.41 $0.39
 Average Common and Common
 Equivalent Shares
 Outstanding 38,180 37,331
 Nine Months Ended
 9/30/93 9/30/92
 Revenues $113,340 $98,061
 Income before Provision
 for Income Taxes 49,106 40,158
 Net Income $38,911(b) $30,616
 Preferred Dividends $3,429(a) $3,165(a)
 Net Income Available for
 Common Shareholders $35,482 $27,451
 Net Income per Common Share $0.92(b) $0.73
 Average Common and Common
 Equivalent Shares
 Outstanding 38,436 37,503
 (a) Reflects dividends on the company's Series C Redeemable Convertible Preferred Stock, which are payable in kind.
 (b) Includes the cumulative effect of adopting FAS 109, which resulted in a gain of $4,100 or $0.11 per share.
 OMNIBUS BUDGET RECONCILIATION ACT OF 1993
 The Omnibus Budget Reconciliation Act of 1993 ("1993 Act") substantially revised provisions of the Internal Revenue Code of 1986, as amended, that affect corporate tax payers by increasing corporate tax rates. Effective for taxable years beginning on or after Jan. 1, 1993, the 1993 Act provides a new 35 percent marginal rate of tax on corporate taxable income in excess of $10 million.
 Unrelated to the 1993 Act, on Jan. 1, 1993, the company adopted FAS 109. Pursuant to FAS 109 legislative changes in tax rates cause an immediate, cumulative adjustment of the deferred tax asset or liability recorded on the balance sheet, with a corresponding effect on the tax provision recorded in the income statement. The deferred taxes previously provided on temporary items will be adjusted upward to reflect the application of a higher corporate tax rate to the previously deferred items.
 The company's Sept. 30, 1993 deferred tax liability and related provision for income taxes were increased by a cumulative adjustment in the amount of approximately $1,500,000. The increases are primarily a result of utilizing the applicable 35 percent tax rate for the temporary differences between book and tax bases of the company's assets and liabilities. In addition, the change in the marginal tax rate to 35 percent is effective Jan. 1, 1993, and as a result the company's 1993 effective tax rate increases by 1 percent.
 -0- 10/14/93
 /CONTACT: David L. Sokol, president and chief executive officer; or John G. Sylvia, vice president and chief financial officer, California Energy Company, 402-330-8900/
 (CE)


CO: California Energy Company, Inc. ST: Nebraska IN: OIL SU: ERN

DB-DB -- MN006 -- 1998 10/14/93 07:56 EDT
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Date:Oct 14, 1993
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