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SOUTHEASTERN MICHIGAN GAS ENTERPRISES REPORTS THIRD-QUARTER EARNINGS

    SOUTHEASTERN MICHIGAN GAS ENTERPRISES REPORTS THIRD-QUARTER EARNINGS
    PORT HURON, Mich., Nov. 11 /PRNewswire/ -- Robert J. Thomson, chairman, president and chief executive officer of Southeastern Michigan Gas Enterprises, Inc. (NASDAQ: SMGS) stated that the company reported a net loss of $1,917,000 ($.23 per share) for the third quarter of 1991, compared to a net loss of $1,990,000 ($.25 per share) for the same period in 1990.  Losses in the third quarter are normal and expected for the company's weather-sensitive business.
    The improvement in earnings for the quarter is primarily due to an increase in gas volumes sold by the company's natural gas distribution subsidiaries.  Colder temperatures during September of this year boosted sales volumes for the quarter over the same period last year.  Results for the quarter ended Sept. 30, 1991, also reflect a decrease in transportation and marketing revenues and a $450,000 charge to depletion expense related to the company's oil and gas producing assets.
    For the nine months ended Sept. 30, 1991, the company reported net income of $2,821,000 ($.35 per share), compared to $2,783,000 ($.35 per share) in 1990.  Although temperatures and gas volumes sold during the current period were comparable to the prior period, a rate increase which took effect in July 1990 at Michigan Gas Company increased gas sales revenues.  The year-to-date results for 1991 reflect revenues from gas transmission projects placed in service during 1991 and increases in depreciation, depletion, property taxes and income taxes.  The company also recorded a $665,000 write-off, net of tax, in the second quarter of 1991 related to a real estate development project.
    For the 12-month period ended Sept. 30, 1991, net income was $6,666,000 ($.82 per share), compared to net income of $6,574,000 ($.83 per share) for the 12-month period ended Sept. 30, 1990.  In addition to the items discussed above, earnings for the current period reflect the impact of warmer temperatures than the prior period on gas volumes sold.
    The following is a summary of the results for the quarter, year-to- date and 12 months ended Sept. 30:
              SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
                                         1991           1990
    Quarter Ended Sept. 30
    Operating revenue(a)             $23,593,000    $21,729,000
    Net income (loss) for common     ($1,917,000)   ($1,990,000)
    Earnings per share(b)                  ($.23)         ($.25)
    Dividends per share(b)                  $.20           $.19
    Average common shares
     outstanding(b)                    8,220,000      8,025,000
    Year-to-Date Ended Sept. 30
    Operating revenue(a)            $125,782,000   $123,800,000
    Net income for common             $2,821,000     $2,783,000
    Earnings per share(b)                   $.35           $.35
    Dividends per share(b)                  $.58           $.55
    Average common shares
     outstanding(b)                    8,176,000      7,984,000
    12 Months Ended Sept. 30
    Operating revenue(a)            $182,619,000   $187,765,000
    Net income for common             $6,666,000     $6,574,000
    Earnings per share(b)                   $.82           $.83
    Dividends per share(b)                  $.77           $.73
    Average common shares
     outstanding(b)                    8,150,000      7,962,000
    (a) -- Reflects marketing revenues net of cost of gas marketed.
    (b) -- Adjusted to give retroactive effect to 5 percent stock dividends in May 1990 and May 1991.
    Enterprises is the parent company of six wholly owned subsidiaries: Southeastern Michigan Gas Company (Port Huron); Battle Creek Gas Company (Battle Creek, Mich.); Michigan Gas Company (Three Rivers, Mich.); Southeastern Development Company (Port Huron); Southeastern Financial Services, Inc. (Port Huron); and SEMCO Energy Services, Inc. (Port Huron).
    Enterprises serves natural gas to approximately 199,000 customers in 20 counties in the Lower and Upper peninsulas of Michigan through its subsidiaries Southeastern Michigan Gas Company, Battle Creek Gas Company, and Michigan Gas Company.
    -0-                       11/11/91
    /CONTACT:  Allan E. Peattie of Southeastern Michigan Gas Enterprises, Inc., 313-987-2200/
    (SMGS) CO:  Southeastern Michigan Gas Enterprises, Inc. ST:  Michigan IN:  UTI OIL SU:  ERN JG-ML -- DE023 -- 3169 11/11/91 16:55 EST
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Publication:PR Newswire
Date:Nov 11, 1991
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