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MIDWEST RESOURCES REPORTS RESULTS

 DES MOINES, Oct. 21 /PRNewswire/ -- Midwest Resources Inc. (NYSE: MWR) today announced increased earnings for the third quarter.
 Earnings for the three months ended Sept. 30, 1993 are $33 million, or 60 cents per average share, compared to $11.3 million, or 21 cents per average share, for the third quarter of 1992. Third quarter revenues are $281.2 million, compared to $235.5 million in 1992.
 Earnings for the 12 months ended Sept. 30, are $77.8 million, or $1.42 per average share, compared to $43.9 million, or 82 cents per average share for the comparable period one year ago.
 "The increase primarily resulted for the return to more normal temperatures, compared to the unusually cool summer of 1992 and the exchange of a portion of our natural gas territory with Minnegasco in August," said Russell Christiansen, chairman and chief executive officer. The warmer weather increased third quarter earnings by $9.5 million, and the gas exchange resulted in an after-tax gain of $10 million. Minnegasco, a division of Arkla Inc., exchanged its Sioux Falls, S.D., service area for the Minnesota area served by Midwest Gas and also made a cash payment to Midwest Gas.
 Retail sales of electricity and natural gas increased more than 10 percent in the third quarter, compared to the like period of 1992. Temperatures during the period were 16 percent cooler than normal but 53 percent warmer than during the like period in 1992.
 Christiansen pointed out that the cost of restoring service after the early-July floods is reflected in the third quarter results. While revenues were reduced somewhat due to the flood, the company has not calculated a specific effect on third quarter revenues.
 "Damage to our utility facilities totaled $5 million, but most of it is covered by insurance so there's no significant impact on our overall financial results. Service to our customers was restored quickly, and permanent repairs to electric substations continue," Christiansen said.
 Third quarter results benefited from the refinancing of substantially all of the utility's long-term debt during 1993 and from the prior refunding of Preferred Stock. These actions increased third quarter earnings by $1.3 million.
 The third quarter results also reflect the retroactive impact of the new federal tax law. Midwest Resources' income tax expense increased $2 million, or about 4 cents per average share.
 1993 earnings have also benefited from reduced utility operating and maintenance costs. During the first nine months of 1993 these costs decreased by $2.7 million or 1.8 percent from 1992. Since the merger in 1990, Midwest Resources has identified over $16 million in annual operating costs savings as a result of the combination of Iowa Power and Iowa Public Service Co.
 Midwest Resources is a utility holding company headquartered in Des Moines. The utility subsidiary, Midwest Power Systems Inc., has two operating divisions: Midwest Power and Midwest Gas. Midwest Power provides electric service to 418,000 customers in Iowa and South Dakota. Midwest Gas serves 337,000 customers in Iowa, Nebraska and South Dakota. Nonregulated investments are operated through Midwest Capital Group Inc.
 MIDWEST RESOURCES INC.
 FINANCIAL AND STATISTICAL DATA
 (In thousands except earnings per share)
 Three Months Nine Months Twelve Months
 Ended Ended Ended
 Sept. 30, Sept. 30, Sept. 30,
 1993 1992 1993 1992 1993 1992
 Revenues(a)$281,231 $235,486 $857,699 $734,684 $1,156,359 $1,003,407
 Net income $33,003 $11,311 $68,514 $30,417 $77,837 $43,900
 Earnings/
 Average
 common share-
 From
 continuing
 operations $0.60 $0.21 $1.23 $0.56 $1.46 $0.89
 From
 discontinued
 oper-
 ations(b) --- --- 0.02 --- (0.04) (0.07)
 Net income $0.60 $0.21 $1.25 $0.56 $1.42 $0.82
 Average
 shares
 out-
 standing 54,635 54,635 54,635 54,267 54,635 53,371
 Electric
 sales - mWh
 Retail 2,511 2,271 7,174 6,574 9,459 8,792
 Sales for
 resale 1,087 1,580 3,102 4,134 4,053 5,123
 Gas
 sales - MMBtu
 Retail 6,281 5,651 44,479 38,280 66,955 61,151
 Trans-
 portation
 & other 3,429 2,753 12,053 8,713 15,761 11,989
 Capital
 expend-
 itures(c) $38,908 $30,536 $94,444 $96,984 $133,437 $140,121
 Return on
 average
 common
 equity --- --- --- --- 11.7 pct. 6.6 pct.
 (a) 1992 revenues have been restated to exclude discontinued oil
 and gas exploration operations.
 (b) Discontinued operations were sold in the second quarter of
 1993, and the gain from that sale is reflected in the current
 three-month, nine-month and 12-month periods.
 (c) Includes Cooper Nuclear Station capital improvements and
 allowance for funds used during construction.
 -0- 10/21/93
 /CONTACT: John McCarroll of Midwest Resources, 515-281-2785/
 (MWR)


CO: Midwest Resources Inc. ST: Iowa IN: UTI SU: ERN

MC -- DV010 -- 5405 10/21/93 15:58 EDT
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Date:Oct 21, 1993
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