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 FORT WORTH, Texas, July 30 /PRNewswire/ -- TNP Enterprises, Inc. (NYSE: TNP) today announced a 2 percent increase in revenues to $449.9 million for the 12 months ended June 30, 1993 from $439.1 million for the 12 months ended June 30, 1992. Consolidated earnings available for common stock for the same period were $5.62 million, or $0.58 per share, compared to $13.89 million, or $1.67 per share, for the prior period.
 For the quarter just ended, the company reported a consolidated loss of $0.6 million, or $0.06 per share, compared to consolidated earnings of $2.6 million, or $0.31 per share, for the second quarter in 1992. Revenues for the quarter just ended increased 2 percent to $107.5 million from $105.8 million in 1992.
 TNP Enterprises is the Fort Worth-based holding company for Texas- New Mexico Power Company (Utility), an electric utility.
 The financial results for the quarter and 12 months reflect the effects of actions of the Public Utility Commission of Texas (PUCT) in December 1992 related to a Texas rate request of the Utility. The PUCT, in a revision of an earlier rate order in the Utility's rate case, abandoned its long-standing method for calculating the amount allowed in cost of service for Federal income tax expense for ratemaking purposes. The PUCT actions reduced the increase of approximately $26 million in annualized revenues, announced in October 1992, to approximately $19 million.
 In additional action on March 10, 1993, the PUCT again revised its order, taking action required to protect the Utility's ability to use otherwise available investment tax credits and accelerated tax depreciation on utility property. This action also restored, subject to refund, $1.6 million of the previous $7 million reduction in annual revenues. In order to recognize these additional revenues in results of operations, the Utility must receive a private letter ruling from the IRS that, generally, holds that the PUCT's action on Dec. 22, 1992, imperiled the availability of the tax benefits to the Utility. Operating revenues for the periods ended June 30, 1993 reflect the effect of the PUCT's Dec. 22, 1992 revision of its original rate order.
 Also, declines in results for the quarter and the 12 months ended June 30, 1993, were caused by increases in certain operating expenses and, during the 12 months, increased interest charges. Such increases were only partially offset by the increases in operating revenues and, during the 12 months, the decrease in the expense of power purchased for resale. Further, milder than normal weather in the Utility's Texas service area resulted in reduced residential usage per customer.
 The commercial operation of Unit 2 of TNP One, since October 1991, led to increases for the 12 months ended June 30, 1993 in interest charges and certain operating expenses such as fuel, depreciation, and other operating and general expenses; however, the Utility experienced a decrease in the expense of power purchased for resale as a result of the operation of Unit 2. An increase in purchased power costs since the first quarter of 1993 is reflected in increased recoveries of purchased power costs through revenues. TNP One is the Utility's two-unit lignite-fueled, 300 megawatt generating facility using circulating fluidized bed technology in Robertson County, Texas.
 The implementation on Jan. 1, 1993 of Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," reduced the Utility's earnings for the quarter and the 12 months ended June 30, 1993 by approximately $1,082,000 before income taxes. Those costs related primarily to the effect of the accounting methodology required for health care and death benefits for retired employees.
 (Amounts in thousands except per share amounts)
 Periods ended 3 Months 12 Months
 June 30 1993 1992 1993 1992
 Operating Revenues $107,530 $105,847 $449,941 $439,111
 Net Operating
 Income 15,722 19,669 71,886 70,996
 Net Earnings (Loss) (410) 2,881 6,544 14,897
 Earnings (Loss) Available
 for Common Stock:
 Utility Operations (620) 2,623 5,578 13,898
 Nonutility Operations (14) 12 43 (11)
 Consolidated Earnings (Loss)
 Available for Common
 Stock (634) 2,635 5,621 13,887
 Earnings (Loss) Per Share
 of Common Stock:
 Utility Operations (0.06) 0.31 0.58 1.67
 Nonutility Operations 0.00 0.00 0.00 0.00
 Consolidated Earnings (Loss)
 Per Share of Common Stock $ (0.06) $ 0.31 $ 0.58 $ 1.67
 Weighted Average Number of
 Common Shares Outstanding 10,626 8,406 9,659 8,332
 -0- 7/30/93
 /CONTACT: D. R. Barnard of TNP Enterprises, Inc., 817-731-0099, ext. 319/

CO: TNP Enterprises, Inc. ST: Texas IN: UTI SU: ERN

TS -- NY039 -- 7747 07/30/93 12:28 EDT
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Publication:PR Newswire
Date:Jul 30, 1993

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