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UTILICORP ANNOUNCES THIRD QUARTER RESULTS

 UTILICORP ANNOUNCES THIRD QUARTER RESULTS
 KANSAS CITY, Mo., Nov. 4 /PRNewswire/ -- UtiliCorp United


(NYSE: UCU) today announced that third quarter net income and primary earnings per common share were lower than results in the same period of 1991.
 Due to a $6.1 million pretax charge against earnings ($3.9 million after taxes), earnings for the three-month period ended Sept. 30, 1992 were $.11 lower than the company's estimate of $.21 per share announced on Sept. 15.
 For the third quarter, net income was $4.9 million and primary earnings per common share were $.10, compared with net income of $13.6 million and earnings per share of $.40 as restated for the third quarter of 1991. Revenues were $275 million, verses $194 million in the prior year's period.
 Average common shares outstanding have increased from 28.8 million in the 1991 quarter to 34.9 million in this year's third quarter. The increase is primarily due to a public offering of approximately 5 million new shares in late 1991.
 For the first nine months of this year, UtiliCorp's net income was $27.5 million and primary earnings per common share were $.64, compared with net income of $49.7 million and earnings per share of $1.54 as restated for the 1991 period. Revenues for the first three quarters of 1992 were $894 million, versus revenues of $700 million in the same period of 1991.
 The charge against third quarter earnings was taken as a result of a previously disclosed investigation into a misappropriation of funds at the company's Aquila Energy subsidiary. In the second quarter, UtiliCorp took an $11.6 million pretax charge against earnings ($7.4 million after taxes) as a result of the same investigation. In addition to the earnings charges, Aquila's 1992 financial results have been sharply reduced by lower margins on long-term, fixed-price gas sales contracts.
 In September, the company adopted the full cost accounting method in order to reflect a revised business strategy at Aquila Energy that is intended to minimize future earnings volatility. UtiliCorp formerly used the successful efforts method. Preliminary estimates which are subject to audit indicate that the change to full cost accounting increased primary earnings per share in the third quarter by $.02 and had no effect on year-to-date earnings. Primary earnings per share for the 1991 third quarter are estimated to increase by $.04 and $.08 for the nine-month period.
 "Milder than normal weather, a need for utility rate relief and the situation at Aquila will reduce our financial results for this year," said UtiliCorp Chairman and President Richard C. Green, Jr. "We anticipate a significant financial rebound in 1993."
 Green noted that management continues to recommend that the UtiliCorp board of directors maintain the present quarterly dividend rate of $.40 per common share.
 The 1993 outlook will be favorably affected by several rate increase filings that are expected to be completed over the next 12 months.
 UtiliCorp's Peoples Natural Gas division recently has reached settlements in three of the four states in which it has filed for rate increases. In Kansas, Peoples has agreed to a settlement that will increase annual revenues by $2.9 million. Peoples had requested a $4.3 million increase in February of this year.
 In Iowa, the Iowa Utilities Board is expected this month to approve new rates that will increase annual revenues by $3.3 million. A $4.8 million increase was requested earlier this year.
 In Colorado, the Colorado Public Utilities Commission has approved a settlement that will increase revenues by about $844,000 annually. A $1.2 million increase was requested in May 1992.
 In Minnesota, where Peoples' fourth rate filing is pending, an interim rate increase has been granted.
 UtiliCorp's Missouri Public Service division in July filed a rate increase request with the Missouri Public Service Commission that would increase revenues by $19.4 million, or 8.5 percent. A decision on that filing is expected by mid-1993.
 In October, UtiliCorp's West Virginia Power division reached an oral agreement with all other parties in a case that would increase revenues by $1 million annually. The West Virginia Public Service Commission still must approve the settlement before rates can become effective in January 1993.
 UtiliCorp's Canadian subsidiary, West Kootenay Power, also has a rate increase request pending.
 Green noted that Aquila's revised business strategy also should favorably affect the 1993 outlook.
 The revised strategy is intended to position the company to benefit from the future market impact of Order 636, the Federal Energy Regulatory Commission's new industry restructuring rule, and authorizes commencement of a conservative exploratory drilling program. Producing gas properties located in the Anadarko Basin of Oklahoma will be further developed under the program.
 Green said that Aquila Southwest Energy, formerly Aquila-Clajon, is performing very well and also has redeemed all of its outstanding 13 percent debentures. The debentures were replaced with $100 million of 8.29 percent senior notes due in 2002 which were issued in a private placement transaction. The refinancing will save approximately $4 million per year in interest costs.
 Green also noted that Utilicorp's UtilCo Group subsidiary continues to add to its project portfolio. In September, UtilCo Group acquired a 50 percent interest in a 120-megawatt, natural gas-fired cogeneration facility located in Orlando, Fla. The plant, which is presently under construction, will sell power under long term contracts to Florida Power Corporation and the Reedy Creek Industrial District in Orlando. UtilCo Group now owns interests in 15 power projects located in six states.
 Based in Kansas City, UtiliCorp provides gas and electric service to nearly a million customers in eight states and in British Columbia.
 CONSOLIDATED STATEMENT OF INCOME
 (in millions, except per share amounts)
 (unaudited)
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1992 1991 1992 1991
 (restated) (restated)
 Revenues $274.6 $194.4 $894.2 $700.4
 Expenses 242.5 157.2 783.0 570.5
 Income from operations 32.1 37.2 111.2 129.9
 Interest charges
 and other 24.0 16.1 67.6 52.8
 Income before
 income taxes 8.1 21.1 43.6 77.1
 Income taxes 3.2 7.5 16.1 27.4
 Net Income $4.9 $13.6 $27.5 $49.7
 Preference Dividends 1.5 2.0 5.1 5.9
 Earnings Available for
 Common Shares 3.4 11.6 22.4 43.8
 Weighted Average Common
 Shares Outstanding:
 Primary 34.93 28.77 34.83 28.43
 Fully diluted 34.93 30.19 34.83 32.98
 Earnings Per Common Shares
 Primary $.10 $.40 $.64 $1.54
 Fully diluted $.10 $.40 $.64 $1.54
 For the 12 months ended
 September 30,
 1992 1991
 (restated)
 (In millions except per share amounts)
 Revenues $1269.8 $969.0
 Income From Operations 178.1 175.9
 Net Income $55.9 $70.5
 Earnings Available for Common Shares 49.0 62.6
 Weighted Average Common Shares
 Outstanding:
 Primary 34.19 27.81
 Fully Diluted 35.11 32.42
 Earnings per Common Share:
 Primary $1.43 $2.25
 Fully Diluted $1.42 $2.15
 -0- 11/4/92
 /CONTACT: Phil Hermanson of UtiliCorp., 816-691-3541/
 (UCU) CO: UtiliCorp. United ST: Missouri IN: UTL SU: ERN


AL -- MN012 -- 2669 11/04/92 16:30 EST
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