Printer Friendly

WHOLESALE ENERGY SALES, COLDER WINTER TEMPERATURES BOOST WASHINGTON WATER POWER EARNINGS

 SPOKANE, Wash., April 21 /PRNewswire/ -- The Washington Water Power Company (WWP) (NYSE: WWP) today reported increased earnings for both the first quarter of 1993 and for the 12 months ended March 31, 1993.
 The company posted first quarter earnings of $1.33 per share, up 34 percent from the $0.99 per share first quarter earnings for 1992. Earnings for the 12-month period ending March 31, 1993, increased 16 percent to $3.10 per share from the $2.68 per share posted at the same time in 1992.
 Paul A. Redmond, WWP board chairman and chief executive officer, said the company's first quarter results were among the strongest in his nearly 28 years with the company. The level of earnings and the quality of those earnings combined to make the results even more impressive, Redmond added.
 Redmond said the first quarter earnings improvement was the result of higher prices in both long-term and short-term wholesale energy markets, colder winter temperatures that increased both retail electric and natural gas sales and continued customer growth. Wholesale energy revenues were $43.4 million in the first quarter, compared with $24.2 million in the first quarter of 1992, an increase of 79 percent.
 "Obviously, we are very pleased with our first quarter results and our continued solid long-term financial performance. We are off to an excellent start in 1993." Redmond said. "And we were able to attain these earnings levels in spite of below-normal precipitation that continues to reduce generation of low-cost hydroelectric power and increase our energy purchases."
 Redmond said the company is projecting streamflows on its hydroelectric system to be between 65-70 percent of normal for the year, compared with 64 percent of normal streamflows in 1992.
 "Even with continued dry weather conditions, we expect our reservoirs to refill and that we will have adequate energy to meet all our customers' power needs. And we fully expect to be able to sell into regional wholesale energy markets throughout the remainder of 1993," Redmond said.
 The company's non-utility businesses, Redmond said, continued to make important contributions to both first quarter and 12 month ended results. Subsidiaries contributed $0.11 per share to first quarter earnings and $0.39 per share for the 12-month period.
 In the first quarter, Pentzer Corporation, WWP's wholly owned private investment company, announced plans to sell Northwest Telco, its long-distance telecommunications company. Impact Telecommunications has agreed to purchase the common and preferred stock of Northwest Telco, in a deal that will result in the formation of the largest Northwest-based long-distance company. The transaction is expected to be completed in the second quarter. Pentzer also completed the acquisition of Systran Financial Services during the first quarter. Systran provides freight bill factoring services for trucking companies throughout the United States.
 Redmond said WWP continues to see strong retail customer growth, especially on its natural gas system. The customer base for company's consolidated natural gas business, which includes WWP operations in Washington and Idaho and WP Natural Gas operations in Oregon and California, continues to grow at more than 8 percent.
 Redmond said the growth reflects competitive energy prices, access to diverse supplies of gas and the company's positioning of gas as the most cost-effective fuel for meeting home space and water heating needs.
 For the first quarter of 1993, utility operating revenues increased by $50.1 million, or 34 percent, over the first quarter of 1992. Net income for the first quarter increased by $10 million and was 42 percent higher than net income posted in the first quarter of 1992.
 For the 12-month period ending March 31, utility operating revenues increased $81.6 million or 17 percent, compared with the 1992 period. Electric revenues were up $50.7 million, or 12 percent, while revenues from the company's consolidated natural gas operations were higher by $30.8 million, or 37 percent.
 THE WASHINGTON WATER POWER COMPANY
 CONSOLIDATED COMPARATIVE STATEMENTS OF INCOME
 (Unaudited, dollars in thousands except per-share amounts)
 For the Twelve Months
 1st Quarter Ended March 31
 1993 1992 1993 1992
 OPERATING REVENUES $212,978 $157,146 $613,589 $562,656
 OPERATING EXPENSES:
 Operations and
 maintenance 106,401 71,998 296,434 269,098
 Administrative and general 12,482 12,258 50,240 47,257
 Depreciation and
 amortization 13,993 13,091 54,325 52,158
 Taxes other than income
 taxes 12,692 11,324 43,031 40,208
 Total operating expenses 145,568 108,671 444,030 408,721
 INCOME FROM OPERATIONS 67,410 48,475 169,559 153,935
 INTEREST EXPENSE AND
 (OTHER INCOME):
 Interest expense 12,008 13,150 50,584 52,984
 Interest capitalized (578) (439) (2,498) (1,144)
 Gain on sale of subsidiary
 stock (Note 1) 0 (6,685) 0 (6,685)
 Other - net (537) 1,341 (7,533) 471
 Total interest expense
 and other- net 10,893 7,367 40,553 45,626
 INCOME BEFORE INCOME TAXES 56,517 41,108 129,006 108,309
 INCOME TAXES 20,486 15,600 46,216 37,992
 INCOME FROM CONTINUING
 OPERATIONS 36,031 25,508 82,790 70,317
 Income from discontinued
 coal mining operations - net
 of income taxes (Note 2) 0 0 2,403 1,553
 NET INCOME 36,031 25,508 85,193 71,870
 DEDUCT - Preferred stock
 dividend requirements 2,099 1,530 7,386 8,414
 INCOME AVAILABLE FOR
 COMMON STOCK $ 33,932 $ 23,978 $ 77,807 $ 63,456
 Average common shares
 outstanding (thousands) 25,535 24,184 25,110 23,691
 EARNINGS PER COMMON SHARE:
 From continuing
 operations $ 1.33 $ 0.99 $ 3.00 $ 2.61
 From discontinued coal
 mining operations (Note 2) 0.00 0.00 0.10 0.07
 Total $ 1.33 $ 0.99 $ 3.10 $ 2.68
 DIVIDENDS PER SHARE
 OF COMMON STOCK $ 0.62 $ 0.62 $ 2.48 $ 2.48
 SUPPLEMENTAL INFORMATION
 INCOME FROM CONTINUING
 OPERATIONS:
 Utility operations $ 33,198 $ 21,710 $ 75,462 $ 65,510
 Non-utility operations $ 2,833 $ 3,798 $ 7,328 $ 4,807
 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 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- 4/21/93
 /CONTACT: Patrick Lynch, 509-482-4246, or Rob Strenge, 509-482-4230, both of Washington Water Power/
 (WWP)


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

LM -- SE006 -- 8675 04/21/93 11:17 EDT
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:Apr 21, 1993
Words:1106
Previous Article:HICKEY TO HEAD SEI CAPITAL RESOURCES CENTRAL REGION; HOWARD, HARRISON PROMOTED TO VICE PRESIDENT
Next Article:'HEALTHTEX MOMMY BEEPERS' TO SCORE HOLE IN ONE DURING KMART GGO
Topics:


Related Articles
PUGET POWER REPORTS 1991 FINANCIAL RESULTS
WARM WEATHER, LACK OF PRECIPITATION REDUCE WASHINGTON WATER POWER EARNINGS
PEOPLES ENERGY REPORTS IMPROVED THIRD-QUARTER RESULTS
WASHINGTON WATER POWER'S THIRD QUARTER EARNINGS SLIGHTLY IMPROVED OVER 1993; 12-MONTH ENDED EARNINGS OFF BY NEARLY 14 PERCENT
WEATHER, STREAMFLOWS CAUSE DECLINE IN WWP'S YEAR-END EARNINGS; FOURTH QUARTER EARNINGS UP 12 PERCENT FROM ONE YEAR AGO
WWP'S FIRST QUARTER AND 12-MONTH ENDED EARNINGS UP SLIGHTLY; COMPANY REACHES MILESTONE; NOW SERVES 500,000 CUSTOMER METERS IN FIVE STATES
PACIFICORP ANNOUNCES FIRST QUARTER 1995 FINANCIAL RESULTS
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