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HOUSTON INDUSTRIES REPORTS THIRD QUARTER RESULTS

 HOUSTON INDUSTRIES REPORTS THIRD QUARTER RESULTS
 HOUSTON, Nov. 8 /PRNewswire/ -- Houston Industries Incorporated (HI)


(NYSE: HOU) today announced consolidated earnings of $223.8 million or $1.75 per share for the third quarter of 1991, compared to $209.2 million or $1.64 per share for the third quarter of 1990. Consolidated earnings for the first nine months of 1991 were $363.1 million or $2.85 per share, compared to $277.9 million or $2.19 per share for the same period in 1990. For the twelve months ended Sept. 30, 1991, HI reported consolidated net income of $424.7 million or $3.33 per share, compared to earnings of $408.2 million or $3.22 per share for the same period last year.
 The improvement in HI's earnings for the periods ended Sept. 30, 1991, resulted primarily from increased earnings at Houston Lighting & Power Company (HL&P), HI's electric utility subsidiary, and improved results at HI's cable television subsidiary, KBLCOM Incorporated (KBLCOM).
 HL&P reported income after preferred dividends of $231.1 million for the third quarter of 1991, compared to $219.7 million for the third quarter of 1990.
 The increase in HL&P's third quarter earnings resulted primarily from an increase in base rates. Higher rates were implemented under bond in May 1991 to reflect a $313 million base rate increase contained in a settlement agreed to by HL&P in February 1991. Consistent with the implementation of bonded rates, HL&P ceased recording deferred expenses, carrying costs and returns associated with the South Texas Project Electric Generating Station, and commenced amortization of such deferred costs. On Oct. 14, 1991, the Public Utility Commission of Texas approved rates consistent with the settlement.
 HL&P's total kilowatt-hour (KWH) sales for the quarter were level with sales for the third quarter of 1990. Both 1991 and 1990 benefited from warmer than normal weather. However, the utility's earnings were negatively impacted by increases in operating and maintenance expenses, primarily administrative and general, production maintenance and distribution maintenance.
 For the nine months ended Sept. 30, 1991, HL&P reported income after preferred dividends of $384.3 million, compared to $316.2 million for the same period in 1990. In addition to the base rate increase described above, HL&P's year-to-date earnings benefited from sales increases and interest received on a refund of prior years' income taxes. Year-to-date residential KWH sales increased by 2 percent, commercial sales climbed 3 percent while industrial sales were almost unchanged compared to the same period last year.
 HL&P's earnings for the twelve months ended Sept. 30, 1991, were $459.4 million, compared to $447.0 million a year earlier. Earnings for the twelve months ended Sept. 30, 1991, were favorably impacted by increases of 4 percent, 4 percent and 2 percent respectively in residential, commercial and industrial KWH sales. Earnings for the twelve months ended Sept. 30, 1990 included approximately $70 million, net of tax, from the settlement of a 1982 rate order, partially offset by regulatory disallowances in its June 1990 rate order.
 KBLCOM reported a loss of $13.5 million for the third quarter of 1991, an improvement of $4.5 million over the same quarter of 1990. For the nine months ended Sept. 30, 1991, KBLCOM experienced a loss of $43.6 million, compared to $56.7 million last year. For the twelve months ended Sept. 30, 1991, KBLCOM lost $58.8 million, compared to $73.1 million for 1990.
 Improvements in KBLCOM's results for the periods ended Sept. 30, 1991 are primarily the result of higher revenues, improved operating profit margins, reduced interest expense and the profits from its jointly-owned cable television partnership, Paragon Communications.
 Utility Fuels, Inc. (UFI), HI's coal supply subsidiary, reported earnings of $6.9 million for the third quarter of 1991, and $20.5 million for the nine months ended Sept. 30, 1991, compared to earnings of $7.8 million and $27.3 million for the same periods a year earlier. UFI's net income for the twelve months ended Sept. 30, 1991, was $28.4 million, compared to $39.0 million for the same period last year. The decrease for the periods ended Sept. 30, 1991, is primarily attributable to non-recurring items.
 HI is headquartered in Houston, Texas.
 HOUSTON INDUSTRIES INCORPORATED
 SELECTED DATA FROM STATEMENTS OF CONSOLIDATED INCOME
 (Thousands of Dollars -- Unaudited)
 Periods ended Quarter Ended Year-To-Date
 Sept. 30; 1991 1990 1991 1990
 Revenues $1,370,609 $1,279,198 $3,348,374 $3,171,197
 Net income $223,831 $209,205 $363,104 $277,878
 Earnings per
 common share $1.75 $1.64 $2.85 $2.19
 Weighted average
 common shares
 outstanding (000) 128,974 127,435 128,635 127,042
 Twelve Months ended Sept. 30; 1991 1990
 Revenues $4,355,760 $4,063,590
 Net income 424,679 408,224
 Earnings per common share $3.33 $3.22
 Weighted average common shares
 outstanding (000) 128,446 126,857
 HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
 Statements of Consolidated Income
 (Unaudited -- Thousands of dollars)
 Periods Ended Quarter Year-To-Date
 Sept. 30 1991 1990 1991 1990
 Revenues:
 Electric $1,172,752 $1,087,149 $2,777,926 $2,645,729
 Coal and lignite 142,190 140,674 402,542 378,153
 Cable television 55,667 51,375 167,906 147,315
 Total 1,370,609 1,279,198 3,348,374 3,171,197
 Expenses:
 Electric:
 Fuel 262,934 284,926 713,938 747,838
 Purchased power 111,162 107,809 328,131 323,808
 Oper. & maintenance 214,736 192,432 604,372 558,340
 Taxes other than inc.
 taxes 53,062 45,590 148,002 143,022
 Deferred expenses -- (13,925) (22,973) (81,388)
 Cost of coal and
 lignite sold 122,501 119,408 339,766 315,224
 Cable television
 oper. expenses 34,917 32,404 105,424 93,699
 Depreciation and
 amortization 111,349 102,002 322,437 309,022
 Total 910,661 870,646 2,539,097 2,411,565
 Oper. income 459,948 408,552 809,277 759,632
 Other inc. (exp.):
 Allowance for other
 funds used during
 construction 1,449 831 4,439 2,583
 Settlement of 1982
 rate case -- -- -- --
 Deferred return under
 phase-in plan -- 13,915 38,758 13,915
 Disallowed plant
 costs - net -- -- -- (35,573)
 Interest income 68 399 20,259 2,114
 Other - net 4,843 793 20,919 (2,697)
 Total 6,360 15,938 84,375 (19,658)
 Fixed charges:
 Interest on long-term
 debt 108,257 108,449 324,361 326,891
 Other interest 6,664 13,873 28,459 39,548
 Allowance for borrowed
 funds used during
 construction (2,467) (1,937) (7,819) (6,527)
 Deferred carrying
 costs -- (10,997) (30,695) (74,007)
 Preferred dividends
 of subsidiary 11,957 11,927 35,751 35,696
 Total 124,411 121,315 350,057 321,601
 Inc. bef. inc. taxes 341,897 303,175 543,595 418,373
 Income taxes 118,066 93,970 180,491 140,495
 Net income 223,831 209,205 363,104 277,878
 Earns. per com. shr. $1.75 $1.64 $2.85 $2.19
 Weighted avg. com. shrs.
 outstanding (000) 128,974 127,435 128,635 127,042
 12 Months Ended
 Sept. 30 1991 1990
 Revenues:
 Electric $3,600,879 $3,373,212
 Coal and lignite 534,389 496,956
 Cable television 220,492 193,422
 Total 4,355,760 4,063,590
 Expenses:
 Electric:
 Fuel 953,267 981,358
 Purchased power 436,185 428,932
 Oper. & maintenance 805,965 726,160
 Taxes other than inc.
 taxes 192,968 163,295
 Deferred expenses (42,773) (103,493)
 Cost of coal and
 lignite sold 450,570 416,979
 Cable television
 oper. expenses 138,498 121,545
 Depreciation and
 amortization 421,345 403,143
 Total 3,356,025 3,137,919
 Oper. income 999,735 925,671
 Other inc. (exp.):
 Allowance for other
 funds used during
 construction 5,698 3,263
 Settlement of 1982
 rate case -- 108,045
 Deferred return under
 phase-in plan 60,112 13,915
 Disallowed plant
 costs - net -- (35,573)
 Interest income 20,634 4,988
 Other - net 16,462 (7,126)
 Total 102,906 87,512
 Fixed charges:
 Interest on long-term
 debt 433,402 437,066
 Other interest 37,783 44,068
 Allowance for borrowed
 funds used during
 construction (10,757) (8,885)
 Deferred carrying
 costs (47,840) (109,579)
 Preferred dividends
 of subsidiary 47,808 47,538
 Total 460,396 410,208
 Inc. bef. inc. taxes 642,245 602,975
 Income taxes 217,566 194,751
 Net income 424,679 408,224
 Earns. per com. shr. $3.33 $3.22
 Weighted avg. com. shrs.
 outstanding (000) 128,446 126,857
 Reference is made to the notes to the consolidated financial statements contained in the annual report to 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
 (Unaudited -- Thousands of dollars)
 Periods Ended Quarter Year-To-Date
 Sept. 30 1991 1990 1991 1990
 Operating revs. $1,172,752 $1,087,149 $2,777,926 $2,645,729
 Operating exps:
 Fuel 262,934 284,926 713,938 747,838
 Purchased power 111,162 107,809 328,131 325,808
 Operation 160,335 145,532 434,388 407,105
 Maintenance 54,401 46,900 169,984 151,235
 Depreciation and
 amortization 88,869 77,845 252,156 239,327
 Income taxes 117,647 107,763 174,598 180,419
 Other taxes 53,062 45,590 148,002 143,022
 Deferred expenses -- (13,925) (22,973) (81,388)
 Total 848,410 802,440 2,198,224 2,113,366
 Operating income 324,342 284,709 579,702 532,363
 Other inc. (exp.):
 Allowance for other
 funds used during
 construction 1,449 831 4,439 2,583
 Settlement of 1982
 rate case -- -- -- --
 Deferred return under
 phase-in plan -- 13,915 38,758 13,915
 Disallowed plant costs -
 net -- -- -- (35,573)
 Interest income 881 455 11,345 2,764
 Income taxes 258 5,866 (3,318) 27,972
 Other - net (1,909) (1,853) 9,059 (15,869)
 Total 679 19,214 60,283 (4,208)
 Inc. bef. interest
 charges 325,021 303,923 639,985 528,155
 Interest charges:
 Interest on long-term
 debt 81,637 79,875 243,071 239,616
 Other interest 2,787 5,400 15,409 16,613
 Allowance for borrowed
 funds used during
 construction (2,467) (1,937) (7,819) (6,012)
 Deferred carrying
 costs -- (10,997) (30,695) (74,007)
 Total 81,957 72,341 219,966 176,210
 Net income 243,064 231,582 420,019 351,945
 Dividends on preferred
 stock 11,957 11,927 35,751 35,696
 Inc. after preferred
 dividends 231,107 219,655 384,268 316,249
 12 Months Ended
 Sept. 30 1991 1990
 Operating revs. $3,600,879 $3,373,212
 Operating exps:
 Fuel 953,267 981,358
 Purchased power 436,185 428,932
 Operation 574,051 531,185
 Maintenance 231,914 194,975
 Depreciation and
 amortization 330,543 318,778
 Income taxes 211,215 211,334
 Other taxes 192,968 163,295
 Deferred expenses (42,773) (103,493)
 Total 2,887,370 2,726,364
 Operating income 713,509 646,848
 Other inc. (exp.):
 Allowance for other
 funds used during
 construction 5,698 3,263
 Settlement of 1982
 rate case -- 108,045
 Deferred return under
 phase-in plan 60,112 13,915
 Disallowed plant costs -
 net -- (35,573)
 Interest income 11,847 8,951
 Income taxes (598) (9,770)
 Other - net (13) (21,291)
 Total 77,046 67,540
 Inc. bef. interest
 charges 790,555 714,388
 Interest charges:
 Interest on long-term
 debt 323,184 318,895
 Other interest 18,759 18,126
 Allowance for borrowed
 funds used during
 construction (10,757) (7,584)
 Deferred carrying
 costs (47,840) (109,579)
 Total 283,346 219,858
 Net income 507,209 494,530
 Dividends on preferred
 stock 47,808 47,538
 Inc. after preferred
 dividends 459,401 446,992
 Reference is made to the notes to the consolidated financial statements contained in the annual report to 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)
 Periods ended Quarter Year-To-Date Twelve Months
 Sept. 30; 1991 1990 1991 1990 1991 1990
 Revenues:
 Basic services $36,742 $33,511 $109,278 $95,876 $143,012 $125,571
 Pay (premium)
 services 10,597 11,586 32,545 3,687 43,802 46,088
 Pay per view 2,197 1,666 9,430 5,858 12,187 7,848
 Advertising 3,128 2,377 8,464 6,185 11,111 7,890
 Other 3,003 2,235 8,189 4,709 10,380 6,025
 Total 55,667 51,375 167,906 147,315 220,492 193,422
 Cost of services &
 system operating
 Expenses 34,917 32,404 105,424 93,699 138,498 121,545
 Gross margin 20,750 18,971 62,482 53,616 81,994 71,877
 Depreciation &
 amortization 16,584 17,567 50,320 50,332 64,429 60,857
 Interest exp. 21,943 23,538 66,586 70,758 90,100 95,370
 Other expense (2,117) 204 (3,020) 3,683 (3,487) 5,494
 Income tax
 benefit (2,148) (4,326) (7,827) (14,451) (10,256) (16,725)
 Net loss before
 preferred
 dividends to
 parent (13,512) (18,012) (43,577) (56,706) (58,792) (73,119)
 -0- 11/8/91
 /CONTACT: Sandy Brendler, 713-629-3123, or Dan Bulla, 713-629-3120, both of Houston Industries/
 (HOU) CO: Houston Industires Incorporated ST: Texas IN: UTI SU: ERN PS-JT -- NY004 -- 2470 11/08/91 08:32 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 8, 1991
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