Printer Friendly

WASHINGTON WATER POWER'S FOURTH-QUARTER, YEAR-END EARNINGS IMPROVE, INCREASE IN SPITE OF WEATHER-RELATED IMPACTS

 SPOKANE, Wash., Jan. 27 /PRNewswire/ -- The Washington Water Power Company (NYSE: WWP) today reported increased earnings for both the fourth quarter of 1992 and for the 12 months ended December 31, 1992.
 The company posted year-end earnings of $2.74 per share, up slightly from the $2.68 per share earnings achieved in 1991. Earnings for the fourth quarter were $0.83 per share, compared with the $0.71 per share posted in the fourth quarter of 1991.
 Paul A. Redmond, WWP board chairman and chief executive officer, was pleased with the company's year-end results, which were achieved in spite of weather conditions in the first three quarters of 1992 that reduced retail electric and natural gas sales, hampered the company's ability to generate low-cost hydroelectric power and caused the company to purchase and generate more expensive thermal power.
 "What we accomplished in 1992 was exceptional, particularly in light of the warmer-than-normal weather conditions and below-normal precipitation experienced on our system for most of the year," Redmond said. "It is a testimony to our management and employees -- and their combined efforts in managing costs -- that we were able to see an increase in profits over 1991 in spite of the weather-related impacts on earnings."
 Redmond said reduced streamflows on the company's hydroelectric system caused WWP to purchase more power than expected during the year and also caused the company to purchase additional fuel for thermal plant operation. As a result, fuel costs and purchased power costs were a combined $27.6 million over expense levels incurred during 1991.
 Even though utility revenues increased by 8 percent in 1992 -- primarily the result of continued strong customer growth and a full year of operations for WP Natural Gas -- the additional costs expended for fuel and purchased power, as well as purchased gas costs, were the primary reasons for a utility earnings decrease. Utility earnings were $2.31 per share in 1992, compared with $2.55 per share in 1991.
 Redmond pointed out that WWP's electric customer base grew by 2 percent in 1992, including the addition of nearly 2,000 new customers obtained in December 1992 through the acquisition of Citizens Utilities Company's northern Idaho electric distribution properties. Customer growth on the natural gas system was substantial. The company's consolidated natural gas business, which includes WWP operations in Washington and Idaho and WP Natural Gas operations in Oregon and California, saw its customer base grow by 7 percent in 1992. Redmond said the growth reflects the company's competitive energy prices, access to diverse supplies of gas and the company's positioning of gas as most cost-effective fuel for meeting home space and water heating needs.
 Redmond said the 1992 earnings increase was largely the result of improved earnings from the company's subsidiary operations. Subsidiary income for 1992 included a gain recorded by Pentzer Corporation, which oversees the company's non-utility businesses, resulting from Itron's acquisition of EnScan, and also included a gain from prior-period accounting adjustments for WIDCo, WWP's former coal mining operation. The net result of these one-time adjustments was $0.28 per share. But overall subsidiary income also increased and was bolstered by improved earnings at Northwest Telco, the company's telecommunications subsidiary, and an earnings increase from natural gas brokering activities at Development Associates. In addition, Redmond said he was encouraged by improving operating results at Itron, the company's electronic manufacturing subsidiary.
 "Our 1992 results reinforce the importance of our diversified interests to overall company earnings," Redmond said. "In a difficult operating year for our utility business, our subsidiary operations were critical to our success. These businesses will play a key role in our ability to grow our company, and we will continue to carefully evaluate investment opportunities in profitable companies with strong management and growth potential."
 For the fourth quarter of 1992, both utility income and earnings per share increased and were primarily the result of colder weather and an increase in the number of retail customers. Net income for the fourth quarter of 1992 was 23 percent higher than net income posted in the final quarter of 1991.
 For the year's final quarter, utility operating revenues increased $10.4 million or 7.2 percent, compared with 1991. Electric revenues were up $6 million, or 5.3 percent, while revenues from the company's consolidated natural gas operations were higher by $4.4 million, or 13.7 percent.
 THE WASHINGTON WATER POWER COMPANY
 CONSOLIDATED COMPARATIVE STATEMENTS OF INCOME (UNAUDITED)
 (Dollars in Thousands except Per Share Amounts)
 For the Twelve Months
 4th Quarter Ended December 31
 1992 1991 1992 1991
 OPERATING REVENUES $163,135 $168,324 $557,758 $566,807
 OPERATING EXPENSES:
 Operations and maintenance 81,484 88,143 262,031 269,808
 Administrative and general 13,388 12,019 50,016 46,055
 Depreciation and amortization 13,257 13,070 53,422 52,003
 Taxes other than income taxes 9,811 11,710 41,664 39,764
 Total operating expenses 117,940 124,942 407,133 407,630
 INCOME FROM OPERATIONS 45,195 43,382 150,625 159,177
 INTEREST EXPENSE AND (OTHER INCOME):
 Interest expense 13,234 14,340 53,541 54,552
 Interest capitalized (1,101) (266) (2,359) (863)
 Gain on sale of subsidiary
 stock (Note 1) 0 0 (6,685) 0
 Other - net (3,238) 3,751 (7,469) (3,229)
 Total interest expense
 and other- net 8,895 17,825 37,028 50,460
 INCOME BEFORE INCOME TAXES 36,300 25,557 113,597 108,717
 INCOME TAXES 13,287 6,329 41,330 38,086
 INCOME FROM CONTINUING
 OPERATIONS 23,013 19,228 72,267 70,631
 Income from discontinued coal
 mining operations - net of
 income taxes (Note 2) 0 0 2,403 1,553
 NET INCOME 23,013 19,228 74,670 72,184
 DEDUCT - Preferred stock
 dividend requirements 2,137 2,283 6,817 9,292
 INCOME AVAILABLE FOR
 COMMON STOCK $ 20,876 $ 16,945 $ 67,853 $ 62,892
 Average common shares
 outstanding (thousands) 25,235 23,703 24,775 23,458
 EARNINGS PER COMMON SHARE:
 From continuing operations $ 0.83 $ 0.71 $ 2.64 $ 2.61
 From discontinued coal
 mining operations (Note 2) 0.00 0.00 0.10 0.07
 Total $ 0.83 $ 0.71 $ 2.74 $ 2.68
 DIVIDENDS PER SHARE
 OF COMMON STOCK $ 0.62 $ 0.62 $ 2.48 $ 2.48
 SUPPLEMENTAL INFORMATION
 INCOME FROM CONTINUING OPERATIONS:
 Utility operations $ 22,301 $ 17,946 $ 63,975 $ 69,211
 Non-utility operations $ 712 $ 1,282 $ 8,292 $ 1,420
 Note 1: The gain resulted from stock issued by the Company's electronics subsidiary for the purpose of acquiring Enscan, an electronics equipment production company. Net of tax, the gain was $4,412,000 and equates to $0.18 per share.
 Note 2: The Company has sold the assets of its coal mining subsidiary to PacifiCorp for $40,800,000. The sale closed on July 31, 1990. The financial statements have been reclassified to reflect the Company's continuing operations.
 -0- 1/27/93
 /CONTACT: Patrick Lynch, 509-482-4246, or Rob Strenge, 509-482-4230, both of The Washington Water Power Company/
 (WWP)


CO: The Washington Water Power Company ST: Washington IN: UTI SU: ERN

LM -- SE009 -- 9585 01/27/93 11:18 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 27, 1993
Words:1195
Previous Article:UNIVAR DECLARES DIVIDEND
Next Article:EQUIFAX BOARD RAISES DIVIDEND, AUTHORIZES $75 MILLION SHARE REPURCHASE PROGRAM
Topics:


Related Articles
THE WASHINGTON WATER POWER COMPANY REPORTS EARNINGS
AMERICAN ELECTRIC POWER EARNINGS FOR 1992 DECREASE 6 PERCENT
DOMINION RESOURCES ANNOUNCES DECREASED EARNINGS FOR 1992 DESPITE STRONG FOURTH QUARTER
HOUSTON INDUSTRIES INCORPORATED REPORTS RESULTS
WHOLESALE ENERGY SALES, COLDER WINTER TEMPERATURES BOOST WASHINGTON WATER POWER EARNINGS
WEATHER, STREAMFLOWS CAUSE DECLINE IN WWP'S YEAR-END EARNINGS; FOURTH QUARTER EARNINGS UP 12 PERCENT FROM ONE YEAR AGO
WWP POSTS YEAR-END EARNINGS INCREASE OF 10 PERCENT; FOURTH QUARTER EARNINGS UP BY 17 PERCENT
Washington Water Power Reports Third Quarter Earnings
Washington Water Power Reports Year-End, Fourth Quarter Earnings; Year-to-Year Results Reflect 1997 Income Tax Gain, Merger, Storm Costs in 1996
Washington Water Power Reports First Quarter Earnings

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters