GULF STATES REPORTS FINANCIAL RESULTS
GULF STATES REPORTS FINANCIAL RESULTS BEAUMONT, Texas, Feb. 3 /PRNewswire/ -- Gulf States Utilities Co.
(NYSE: GSU) today reported 1991 earnings of 34 cents per share of common stock compared to a 99 cents per share loss for 1990.
Results for 1991 were helped by rate increases in Texas and Louisiana during the first quarter, reduced interest expenses and higher kilowatt-hour sales. Earnings would have been higher had it not been for one-time charges taken during the year. A refund reserve established in advance of a January 1992 ruling in a Louisiana rate of return dispute decreased earnings by 20 cents per share. The 1991 results also were reduced by 6 cents per share as a result of a $7.1 million net charge related to the River Bend deregulated asset plan that was reaffirmed and modified by the Louisiana Public Service Commission on Jan. 28. Kilowatt-hour sales increased from 29 billion in 1990 to 29.1 billion in 1991, the fourth straight year of improved sales. Largely as a result of charges taken late in 1991, the company reported a 14-cent per share loss for the fourth quarter, compared to an 11-cent loss for the same period in 1990. The 1990 results had been impacted negatively by a $135 million after-tax charge (equivalent to $1.25 per share) for the settlement with the Southern Co. that was booked during the second quarter of that year. Gulf States serves nearly 579,000 customers in a 28,000-square-mile area along the Gulf Coast between Houston and New Orleans. GULF STATES UTILITIES COMPANY Condensed Statement of Income (Unaudited, thousands of Dollars) Three months ended Dec. 31: 1991 1990 Operating revenue $416,372 $406,275 Provision for rate refund - Louisiana (4,143) -- Operating expenses and taxes 332,349 346,480 Operating income 79,880 59,795 Other income and deductions: Southern Company settlement -- -- Southern Company settlement related income taxes (A) -- 2,953 Other-net 4,643 9,733 Income before interest charges 84,523 72,481 Interest charges 64,527 68,669 Income (loss) before extraordinary item 19,996 3,812 Extraord. item (net of income taxes)(B) (20,166) -- Net income (loss) (170) 3,812 Dividends on preferred and preference stock 15,641 15,754 Income (loss) applic. to common stock ($15,811) ($11,942) Average shares of common stock outstanding 114,055 108,055 Earnings (loss) per average share of common stock outstanding before extraordinary item $0.04 ($0.11) Earnings (loss) per average share of common stock outstanding ($0.14) ($0.11) Twelve months ended Dec. 31 1991 1990 Operating revenue $1,726,378 $1,690,685 Provision for rate refund - Louisiana (24,143) -- Operating expenses and taxes 1,356,255 1,357,452 Operating income 345,980 333,233 Other income and deductions: Southern Company settlement -- (205,015) Southern Company settlement related income taxes (A) -- 80,834 Other - net 36,437 22,153 Income before interest charges 382,417 231,205 Interest charges 259,968 275,487 Income (loss) before extraordinary item 122,449 (44,282) Extraordinary item (net of income taxes)(B) (20,166) -- Net income (loss) 102,283 (44,282) Dividends on preferred and preference stock 63,070 62,742 Income (loss) applicable to common stock $39,213 ($107,024) Average shares of common stock outstanding 114,055 108,055 Earnings (loss) per average share of common stock outstanding before extraordinary item $0.52 ($0.99) Earnings (loss) per average share of common stock outstanding $0.34 ($0.99) (A) -- 1. Does not include $2,953 and $11,129 of state tax adjustments related to the Southern Company settlement, that are included in operating expenses and taxes for the three and twelve months ended Dec. 31, 1990, respectively. (B) -- The extraordinary item recorded ($.18 per share) in the fourth quarter of 1991 resulted from the discontinuation of regulatory accounting principles for the deregulated portion of River Bend in the Louisiana retail jurisdiction. This Allowed $13.1 million ($.12 per share) of tax benefits to be recorded in operating expenses and taxes to reflect tax benefits earned in other transactions but Previously not recorded due to the state net operating loss carryforward limitations. GULF STATES UTILITIES COMPANY Financial Highlights Kilowatt-Hour Sales Data (Unaudited) Three months ended Dec. 31: 1991 1990 Electric sales (millions of KWH): Residential 1,491 1,452 Commercial 1,296 1,275 Industrial 3,442 3,339 Industrial - steam department (C) 440 445 Sales for resale (D) 240 588 Other 73 72 Total 6,982 7,171 Twelve months ended Dec. 31: 1991 1990 ELECTRIC SALES (millions of KWH): Residential 6,925 6,834 Commercial 5,460 5,388 Industrial 13,629 13,347 Industrial - steam department (C) 1,712 1,930 Sales for resale (D) 1,048 1,180 Other 295 285 Total 29,069 28,964 (C) -- Represents kilowatt-hour sales to an industrial customer which purchases both electric and steam generation from the company. (D) -- In December 1990 the company reclassified 388 million KWH's and $8.3 million to sales for resale. Previously those amounts had been presented as a reduction to purchased power expense and MWH's purchased. The reclassification was done in accordance with guidelines from the Federal Energy Regulatory Commission. No provision, other than depreciation, has been made for exclusions related to the $1.4 billion of the company's total River Bend plant investment (approximately $411 million, net of accumulated depreciation and related tax benefits, on a Texas retail jurisdictional basis, as of Dec. 31, 1991) which the Public Utility Commission of Texas set aside with no finding of prudency in a May 16, 1988 rate order. On Oct. 1, 1991, the 200th Judicial District Court of Texas handed down its decision on the company's appeal of the May 16, 1988 rate order. The court ruled that the PUCT decision to set aside the $1.4 billion of River Bend plant investment had the same effect as a disallowance ruling. The court also ruled that the company's Texas retail jurisdiction's deferred River Bend costs should not be included in rate base. The company has appealed the court's decision. -0- 2/3/92 /CONTACT: Susan Gilley of Gulf States Utilities, 409/839-2846. (GSU) CO: Gulf States Utilities Co. ST: Texas IN: UTI SU: ERN
TS -- NY071 -- 6225 02/03/92 13:15 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Feb 3, 1992|
|Previous Article:||FLUOR DANIEL ENGINEERS CHALLENGE STUDENTS TO DISCOVER 'E'|
|Next Article:||NOVA CORP. OF ALBERTA ANNOUNCES DIVIDEND|