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HOUSTON INDUSTRIES REPORTS RESULTS

 HOUSTON INDUSTRIES REPORTS RESULTS
 HOUSTON, Oct. 26 /PRNewswire/ -- Houston Industries Incorporated


(HI) today announced consolidated earnings of $230.9 million or $1.80 per share for the third quarter of 1992, compared to $223.8 million or $1.75 per share for the third quarter of 1991. Consolidated earnings for the first nine months of 1992 were $272.0 million or $2.15 per share, compared to $363.1 million or $2.85 per share for the same period in 1991. For the twelve months ended Sept. 30, 1992, HI reported consolidated net income of $326.2 million or $2.58 per share, compared to earnings of $424.7 million or $3.33 per share for the same period last year.
 Earnings for the nine months and 12 months ended Sept. 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 $229.6 million for the third quarter of 1992, compared to $231.1 million for the third quarter of 1991.
 Residential and commercial kilowatt-hour (KWH) sales for the third quarter decreased approximately 3 percent and 1 percent, respectively, due to milder weather than the same period last year, while firm industrial sales were up 1 percent. A $19 million decrease in operating expenses, primarily due to restructuring of operations discussed below, and a $7 million decrease in interest expense and preferred dividends, primarily due to refinancing, were offset by the decrease in sales, and increases in production maintenance expense of approximately $7 million, and in property and state franchise taxes of approximately $5 million.
 For the nine months ended Sept. 30, 1992, HL&P reported income after preferred dividends of $280.9 million, compared to $384.3 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 included 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 commercial KWH sales decreased approximately 5 percent and 1 percent, respectively, while firm industrial sales were almost unchanged compared to the same period last year. Comparative earnings were also lower due to the recognition, in January 1991, of interest income of approximately $10 million associated with a refund of prior years' federal income taxes.
 For the twelve months ended Sept. 30, 1992, HL&P reported income after preferred dividends of $344.9 million, down from $459.4 million a year
earlier. In addition to the effects discussed above, earnings for this period were also negatively impacted by an increase in property taxes of an additional $17 million.
 KBLCOM Incorporated (KBLCOM), HI's cable television subsidiary, reported a loss of $6.7 million for the third quarter of 1992, an improvement of $6.8 million over the same quarter in 1991. For the nine months ended Sept. 30, 1992, KBLCOM experienced a loss of $24.7 million, compared to $43.6 million for the same period in 1991. For the twelve months ended Sept. 30, 1992, KBLCOM lost $36.4 million, compared to $58.8 million for 1991.
 Improvements in KBLCOM's results for the periods ended Sept. 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 1992 third quarter revenues increased 6 percent while operating expenses increased only 1 percent over the same period of the prior year. The gross operating margin increased to 40 percent in the third quarter of 1992 from 37 percent in the same period of 1991. Interest expense decreased $5.0 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 third quarter earnings also benefited from $6.1 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 $6.9 million for the third quarter of 1992 and $19.6 million for the nine months ended Sept. 30, 1992, compared to $6.9 million and $20.5 million for the same periods a year earlier. UFI's net income for the twelve months ended Sept. 30, 1992, was $27.2 million, compared to $28.4 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)
 Quarterd Nine Months Twelve Months
 September 30, September 30, September 30,
 1992 1991 1992 1991 1992 1991
 Revenues
 $1,392,164 $1,370,609 $3,465,058 $3,348,374 $4,560,423 $4,355,760
 Net Income
 230,913 223,831 271,952 363,104 326,231 424,679
 Earnings Per Common Share
 1.80 1.75 2.15 2.85 2.58 3.33
 Weighted Average Common Shares
 Outstanding (000)
 129,514 128,974 129,514 128,635 129,460 128,446
 HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
 STATEMENTS OF CONSOLIDATED INCOME
 (Thousands of Dollars)
 (Unaudited)
 Quarter Nine Months Twelve Months
 September 30, September 30, September 30,
 1992 1991 1992 1991 1992 1991
 Revenues:
 Electric
 $1,195,187 $1,172,752 $2,883,537 $2,777,926 $3,780,154 $3,600,879
 Coal and lignite
 138,076 142,190 405,458 402,542 547,385 534,389
 Cable television
 58,901 55,667 176,063 167,906 232,884 220,492
 Total
 1,392,164 1,370,609 3,465,058 3,348,374 4,560,423 4,355,760
 Expenses:
 Electric:
 Fuel
 294,685 262,934 730,958 713,938 977,112 953,267
 Purchased power
 119,575 111,162 358,786 328,131 474,695 436,185
 Operation and maintenance
 203,101 214,736 584,287 604,372 785,478 805,965
 Taxes other than income taxes
 57,986 53,062 163,786 148,002 206,310 192,968
 Deferred expenses
 (22,974) (42,773)
 Restructuring
 86,431 86,431
 Cost of coal and lignite sold
 118,890 122,501 347,188 339,766 468,866 450,570
 Cable television operating expenses
 35,332 34,917 106,224 105,424 141,023 138,498
 Depreciation and amortization
 114,847 111,349 343,460 322,438 456,055 421,345
 Total
 944,416 910,661 2,721,120 2,539,097 3,595,970 3,356,025
 Operating Income
 447,748 459,948 743,938 809,277 964,453 999,735
 Other Income (Expense):
 Allowance for other funds used during construction
 2,160 1,449 5,634 4,439 6,944 5,698
 Deferred return under phase-in plan
 38,758 60,112
 Interest income
 1,204 72 1,433 20,264 2,339 20,639
 Equity in income of cable television partnerships
 6,220 3,231 16,162 6,899 19,935 7,683
 Regulatory adjustment related to
 prior year's disallowed plant costs
 14,483 14,483
 Other - net
 (828) 1,608 (10,206) (468) (23,264) (5,709)
 Total
 8,756 6,360 13,023 84,375 5,954 102,906
 Interest and Other Charges:
 Interest
 103,112 114,921 319,745 352,820 439,797 471,185
 Allowance for borrowed funds used during construction
 (2,076) (2,467) (5,677) (7,819) (7,907) (10,757)
 Deferred carrying costs
 (30,695) (47,840)
 Preferred dividends of subsidiary
 9,965 11,957 29,791 35,751 40,226 47,808
 Total
 111,001 124,411 343,859 350,057 472,116 460,396
 Income Before Income Taxes
 345,503 341,897 413,102 543,595 498,291 642,245
 Income Taxes
 114,590 118,066 141,150 180,491 172,060 217,566
 Net Income
 $230,913 $223,831 $271,952 $363,104 $326,231 $424,679
 Earnings Per Common Share
 $1.80 $1.75 $2.15 $2.85 $2.58 $3.33
 Dividends Declared Per Common Share
 $0.75 $0.74 $2.23 $2.22 $2.97 $2.96
 Weighted Average Common Shares Outstanding (000)
 129,514 128,974 129,514 128,635 129,460 128,446
 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 your request 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)
 Quarter Ended Nine Months Ended Twelve Months Ended
 September 30, September 30, September 30,
 1992 1991 1992 1991 1992 1991
 Operating Revenues
 $1,195,187 $1,172,752 $2,883,537 $2,777,926 $3,780,154 $3,600,879
 Operating Expenses:
 Fuel
 294,685 262,934 730,958 713,938 977,112 953,267
 Purchased power
 119,575 111,162 358,786 328,131 474,695 436,185
 Operation
 141,514 160,335 406,869 434,388 546,936 574,051
 Maintenance
 61,587 54,401 177,418 169,984 238,542 231,914
 Depreciation and amortization
 91,108 88,869 271,706 252,157 360,949 330,543
 Income taxes
 112,931 117,647 136,721 174,598 170,038 211,215
 Other taxes
 57,986 53,062 163,786 148,002 206,310 192,968
 Deferred expenses
 (22,974) (42,773)
 Restructuring
 86,41 86,431
 Total
 879,386 848,410 2,332,675 2,198,224 3,061,013 2,887,370
 Operating Income
 315,801 324,342 550,862 579,702 719,141 713,509
 Other Income (Expense):
 Allowance for other funds used during construction
 2,160 1,449 5,634 4,439 6,944 5,698
 Deferred return under phase-in plan
 38,758 60,112
 Regulatory adjustment related to prior year's disallowed plant
 costs
 14,483 14,483
 Interest income
 1,904 881 2,122 11,345 4,300 11,847
 Income taxes
 258 258 774 (3,318) 2,150 (598)
 Other - net
 (3,637) (1,909) (7,947) (5,424) (14,389) (14,496)
 Total
 685 679 583 60,283 (995) 77,046
 Income Before Interest Charges
 316,486 325,021 551,445 639,985 718,146 790,555
 Interest Charges:
 Interest
 78,971 84,424 246,481 258,480 340,949 341,943
 Allowance for borrowed funds used during construction
 (2,076) (2,467) (5,677) (7,819) (7,907) (10,757)
 Deferred carrying costs
 (30,695) (47,840)
 Total
 76,895 81,957 240,804 219,966 333,042 283,346
 Net Income
 239,591 243,064 310,641 420,019 385,104 507,209
 Dividends on Preferred Stock
 9,965 11,957 29,791 35,751 40,226 47,808
 Income After Preferred Dividends
 $229,626 $231,107 $280,850 $384,268 $344,878 $459,401
 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 your request 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)
 Quarter Nine Months Twelve Months
 September 30, September 30, September 30,
 1992 1991 1992 1991 1992 1991
 Revenues:
 Basic services
 $39,420 $36,742 $117,849 $109,278 $156,052 $143,012
 Pay (Premium) services
 9,690 10,597 29,481 32,545 39,733 43,802
 Pay per view
 2,389 2,197 8,104 9,430 10,286 12,187
 Advertising
 3,663 3,128 10,678 8,464 14,223 11,111
 Other
 3,739 3,003 9,951 8,189 12,590 10,380
 Total
 58,901 55,667 176,063 167,906 232,884 220,492
 Cost of Services and System Operating Expenses
 35,332 34,917 106,224 105,424 141,023 138,498
 Gross Margin
 23,569 20,750 69,839 62,482 91,861 81,994
 Depreciation and amortization
 17,358 16,470 51,948 49,880 68,712 63,805
 Interest expense
 17,038 22,063 53,818 67,155 74,655 91,020
 Other expense
 610 1,108 2,962 3,750 3,851 3,900
 Equity in income of cable television partnerships
 (6,220) (3,231) (16,162) (6,899) (19,935) (7,683)
 Income taxes
 1,519 (2,148) 1,997 (7,827) 946 (10,256)
 Net Loss Before Preferred Dividends to Parent
 ($6,736) ($13,512) ($24,724) ($43,577) ($36,368) ($58,792)
 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 your request 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- 10/26/92
 /CONTACT: Randall Oliver, 713-629-3126, or Dan Bulla, 713-629-3120, both for Houston Industries/
 (HOU) CO: Houston Industries Incorporated ST: Texas IN: UTI SU: ERN


LR -- NY065 -- 4853 10/26/92 13:43 EST
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