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HOUSTON INDUSTRIES ANNOUNCES RESULTS

 HOUSTON INDUSTRIES ANNOUNCES RESULTS
 HOUSTON, Aug. 3 /PRNewswire/ -- Houston Industries Incorporated (HI)


(NYSE: HOU) today announced consolidated earnings of $74.9 million or $.60 per share for the second quarter of 1992, compared to $87.4 million or $.69 per share for the second quarter of 1991. Consolidated earnings for the first six months of 1992 were $41.0 million or $.35 per share, compared to $139.3 million or $1.10 per share for the same period in 1991. For the 12 months ended June 30, 1992, HI reported consolidated net income of $319.1 million or $2.52 per share, compared to earnings of $410.1 million or $3.22 per share for the same period last year.
 Earnings for the six months and 12 months ended June 30, 1992, were negatively impacted by the recognition of charges related to the restructuring of operations at Houston Lighting & Power Company (HL&P), HI's electric utility subsidiary.
 HL&P reported income after preferred dividends of $76.6 million for the second quarter of 1992, compared to $97.1 million for the second quarter of 1991. The decrease in HL&P's second quarter earnings resulted primarily from decreased kilowatt-hour (KWH) sales. Residential, commercial and firm industrial KWH sales decreased approximately 10 percent, 2 percent and 3 percent, respectively. The decrease in residential and commercial sales is primarily due to substantially milder weather than the same period last year, while the decrease in firm industrial sales is primarily due to differences in the length of billing cycles between the two periods. A $13 million decrease in operating expenses, due to a restructuring of operations discussed below, was offset by increases of $6 million in depreciation and amortization, and $6 million in property and other taxes.
 For the six months ended June 30, 1992, HL&P reported income after preferred dividends of $51.2 million, compared to $153.2 million for the same
period in 1991. Earnings were negatively impacted by the recording, in March 1992, of a one-time, pre-tax charge of $86 million to reflect the implementation of the Success Through Excellence in Performance (STEP) program, a restructuring of operations. The charge includes costs of early retirement and severance benefits related to the elimination of approximately 1,600 positions. HL&P anticipates that the effect on earnings will be substantially mitigated by the savings derived from the STEP program by the end of the first quarter of 1993.
 Year-to-date residential and firm industrial KWH sales decreased approximately 7 percent and 1 percent, respectively, while commercial sales were almost unchanged compared to the same period last year. Comparative earnings were also lower due to the recognition, in January 1991, of approximately $10 million in interest income associated with a refund of prior years' federal income taxes.
 For the 12 months ended June 30, 1992, HL&P reported net income after preferred dividends of $346.4 million, down from $447.9 million a year earlier. In addition to the effects discussed above, earnings for this period were also negatively impacted by an increase of approximately $7 million in employee benefits expense, primarily medical and pension expenses, and an increase of approximately $8 million in production maintenance expense.
 KBLCOM Incorporated (KBLCOM), HI's cable television subsidiary, reported a loss of $7.7 million for the second quarter of 1992, an improvement of $6.0 million over the same quarter in 1991. For the six months ended June 30, 1992, KBLCOM lost $18.0 million, compared to $30.1 million for the same period in 1991. For the 12 months ended June 30, 1992, KBLCOM lost $43.1 million, compared to $63.3 million for 1991.
 Improvements in KBLCOM's results for the periods ended June 30, 1992 are primarily the result of higher revenues, improved operating margins, reduced interest expense and increased profits from its cable television partnership, Paragon Communications (Paragon).
 KBLCOM's second quarter revenues increased 3 percent over the same period of the prior year while operating expenses were unchanged. The gross operating margin increased to 40 percent in the second quarter of 1992 from 38 percent in the same period of 1991. Interest expense decreased $5.1 million or 23 percent due to lower interest rates and lower debt balances resulting from the conversion, in March 1992, of $117 million of intercompany loans to common stock equity. KBLCOM's second quarter earnings also benefited from $5.5 million of pre-tax earnings from the Paragon partnership, up $3.0 million from the same period in 1991.
 Utility Fuels, Inc. (UFI), HI's coal supply subsidiary, reported earnings of $6.7 million for the second quarter of 1992 and $12.7 million for the six months ended June 30, 1992, compared to $7.0 million and $13.7 million for the same periods a year earlier. UFI's net income for the 12 months ended June 30, 1992 was $27.2 million, compared to $29.3 million for the same period last year.
 HI is headquartered in Houston, Texas.
 Selected operating results are summarized below:
 HOUSTON INDUSTRIES INCORPORATED
 SELECTED DATA FROM STATEMENTS OF CONSOLIDATED INCOME
 (Thousands of Dollars)
 (Unaudited)
 Periods ended June 30
 Quarter Six months 12 months
 1992 1991 1992 1991 1992 1991
 Revenues
 $1,097,644 $1,059,605 $2,072,894 $1,977,765 $4,538,868 $4,264,342
 Net income
 $74,947 $87,424 $41,039 $139,273 $319,149 $410,054
 Earnings Per Common Share
 $0.60 $0.69 $0.35 $1.10 $2.52 $3.22
 Weighted Average Common Shares Outstanding (000)
 129,514 128,635 129,514 128,463 129,324 128,058
 HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
 STATEMENTS OF CONSOLIDATED INCOME
 (Thousands of Dollars)
 (Unaudited)
 Periods ended June 30
 Quarter Six months 12 months
 1992 1991 1992 1991 1992 1991
 Revenues:
 Electric
 $902,387 $870,804 $1,688,350 $1,605,174 $3,757,719 $3,515,276
 Coal and lignite
 135,430 130,749 267,382 260,352 551,498 532,874
 Cable television
 59,827 58,052 117,162 112,239 229,651 216,192
 Total
 1,097,644 1,059,605 2,072,894 1,977,765 4,538,868 4,264,342
 Expenses:
 Electric:
 Fuel
 241,711 237,984 436,273 451,004 945,360 975,260
 Purchased power
 119,848 110,565 239,211 216,969 466,282 432,832
 Operation and maintenance
 190,640 203,248 381,186 389,636 797,115 783,660
 Taxes other than income taxes
 51,737 45,978 105,800 94,940 201,386 185,496
 Deferred expenses
 --- (7,699) --- (22,974) --- (56,698)
 Restructuring
 --- --- 86,431 --- 86,431 ---
 Cost of coal and lignite sold
 115,557 109,002 228,298 217,265 472,477 447,479
 Cable television operating expenses
 35,926 35,930 70,892 70,507 140,609 135,976
 Depreciation and amortization
 114,569 108,579 228,613 211,089 452,521 411,815
 Total
 869,988 843,587 1,776,704 1,628,436 3,562,181 3,315,820
 Operating Income
 227,656 216,018 296,190 349,329 976,687 948,522
 Other Income (Expense):
 Allowance for other funds used during construction
 1,963 1,479 3,474 2,990 6,233 5,080
 Deferred return under phase-in plan
 --- 17,655 --- 38,758 --- 74,027
 Interest income
 186 484 222 20,191 1,191 20,964
 Equity in income of cable television partnerships
 5,334 2,565 9,942 3,668 16,947 5,112
 Disallowed plant cost and regulatory adjustment
 --- 8,129 --- 14,483 --- 14,483
 Other - net
 (1,487) (1,474) (9,371) (2,075) (20,821) (8,427)
 Total 5,996 28,838 4,267 78,015 3,550 111,239
 Interest and Other Charges:
 Interest
 108,576 119,257 216,633 237,899 451,631 477,523
 Allowance for borrowed funds used during construction
 (1,886) (2,519) (3,601) (5,352) (8,299) (10,227)
 Deferred carrying costs
 --- (14,049) --- (30,695) --- (58,837)
 Preferred dividends of subsidiary
 10,133 11,917 19,826 23,794 42,219 47,779
 Total
 116,823 114,606 232,858 225,646 485,551 456,238
 Income Before Income Taxes
 116,829 130,250 67,599 201,698 494,686 603,523
 Income Taxes
 41,882 42,826 26,560 62,425 175,537 193,469
 Net Income
 $74,947 $87,424 $41,039 $139,273 $319,149 $410,054
 Earnings Per Common Share
 $0.60 $0.69 $0.35 $1.10 $2.52 $3.22
 Weighted Average Common Shares Outstanding (000)
 129,514 128,635 129,514 128,463 129,324 128,058
 Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report of Houston Industries Incorporated.
 The information furnished is given in response to requests for information concerning the company and not in connection with any sale or offer for sale of, or solicitation of an offer to buy, any securities.
 HOUSTON LIGHTING & POWER COMPANY
 STATEMENTS OF INCOME
 (Thousands of Dollars)
 (Unaudited)
 Periods ended June 30
 Quarter Six months 12 months
 1992 1991 1992 1991 1992 1991
 Operating Revenues
 $902,387 $870,804 $1,688,350 $1,605,174 $3,757,719 $3,515,276
 Operating Expenses:
 Fuel 241,711 237,984 436,273 451,004 945,360 975,260
 Purchased power
 119,848 110,565 239,211 216,969 466,282 432,832
 Operation
 130,359 143,068 265,355 274,053 565,757 559,248
 Maintenance
 60,281 60,180 115,831 115,583 231,358 224,412
 Depreciation and amortization
 90,551 84,143 180,598 163,288 358,707 319,519
 Income taxes
 38,643 39,983 23,790 56,951 174,755 201,331
 Other taxes
 51,737 45,978 105,800 94,940 201,386 185,496
 Deferred expenses
 --- (7,699) --- (22,974) --- (56,698)
 Restructuring
 --- --- 86,431 --- 86,431 ---
 Total
 733,130 714,202 1,453,289 1,349,814 3,030,036 2,841,400
 Operating Income
 169,257 156,602 235,061 255,360 727,683 673,876
 Other Income (Expense):
 Allowance for other funds used during construction
 1,963 1,479 3,474 2,990 6,233 5,080
 Deferred return under phase-in plan
 --- 17,655 --- 38,758 --- 74,027
 Disallowed plant cost and regulatory adjustment
 --- 8,129 --- 14,483 --- 14,483
 Interest income
 157 341 218 10,464 3,277 11,422
 Income taxes
 258 (1,700) 516 (3,576) 2,151 5,010
 Other - net
 (2,294) (1,889) (4,310) (3,515) (12,663) (14,440)
 Total 84 24,015 (102) 59,604 (1,002) 95,582
 Income Before Interest Charges
 169,341 180,617 234,959 314,964 726,681 769,458
 Interest Charges:
 Interest
 84,544 88,204 167,510 174,056 346,401 342,795
 Allowance for borrowed funds used during construction
 (1,886) (2,519) (3,601) (5,352) (8,299) (10,227)
 Deferred carrying costs
 --- (14,049) --- (30,695) --- (58,837)
 Total 82,658 71,636 163,909 138,009 338,102 273,731
 Net Income
 86,683 108,981 71,050 176,955 388,579 495,727
 Dividends on Preferred Stock
 10,133 11,917 19,826 23,794 42,219 47,779
 Income After Preferred Dividends
 $76,550 $97,064 $51,224 $153,161 $346,360 $447,948
 Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report of Houston Industries Incorporated.
 The information furnished is given in response to requests for information concerning the Company and not in connection with any sale or offer for sale of, or solicitation of an offer to buy, any securities.
 KBLCOM INCORPORATED
 CONDENSED STATEMENTS OF INCOME
 (Thousands of Dollars)
 (Unaudited)
 Periods ended June 30
 Quarter Six months 12 months
 1992 1991 1992 1991 1992 1991
 Revenues:
 Basic services
 $39,509 $36,858 $78,429 $72,536 $153,374 $139,781
 Pay (Premium) services
 9,871 10,861 19,791 21,948 40,639 44,792
 Pay per view
 2,968 4,470 5,715 7,233 10,094 11,656
 Advertising
 4,092 3,146 7,015 5,336 13,689 10,359
 Other 3,387 2,717 6,212 5,186 11,855 9,604
 Total 59,827 58,052 117,162 112,239 229,651 216,192
 Cost of Services and System Operating Expenses
 35,926 35,930 70,892 70,507 140,609 135,976
 Gross Margin
 23,901 22,122 46,270 41,732 89,042 80,216
 Depreciation and amortization
 17,265 16,691 34,590 33,410 67,825 64,719
 Interest expense
 17,375 22,455 36,780 45,092 79,681 92,708
 Other expense
 1,287 1,280 2,352 2,642 4,349 3,627
 Equity in income of cable television partnerships
 (5,334) (2,565) (9,942) (3,668) (16,947) (5,112)
 Income taxes
 982 (2,108) 478 (5,679) (2,722) (12,434)
 Net Loss Before Preferred Dividends to Parent
 ($7,674) ($13,631) ($17,988) ($30,065) ($43,144) ($63,292)
 Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report of Houston Industries Incorporated.
 The information furnished is given in response to requests for information concerning the Company and not in connection with any sale or offer for sale of, or solicitation of an offer to buy, any securities.
 -0- 8/3/92 R
 /CONTACT: Sandy Brendler, 713-629-3123, or Dan Bulla, 713-629-3120, both of Houston Industries/
 (HOU) CO: Houston Industries Incorporated ST: Texas IN: UTI SU: ERN


KD -- NY091R -- 6473 08/04/92 08:05 EDT
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Date:Aug 4, 1992
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