WILKES BARRE, Pa., Aug. 4 /PRNewswire/ -- Pennsylvania Enterprises, Inc.
(NYSE: PNT) (PEI) today reported that warm weather resulted in lower second
quarter earnings in the Company's regulated operations. For the three-month
period ended June 30, 1998 there was a loss of $.04 per share compared to
earnings of $.10 per share for the same period in 1997. The $.10 per share
earnings last year included income of $.08 per share relating to discounts on
the repurchase of preferred stock of PG Energy, PEI's principal subsidiary.
For the current reporting period, net income decreased by $542,000 to a
loss of $391,000. Continuing growth in the Company's nonregulated natural gas
sales partially offset the reduced revenues of its regulated operations.
Overall, operating revenues decreased 14 percent from the prior year.
According to the Company, the chief factor affecting revenues was the mild
winter weather that lingered into spring. This year, April and May witnessed a
37.7 percent decrease in heating degree days compared to the same months last
spring. Heating degree days are a standard industry measure of the weather and
how it affects heating.
"As was the case with many utilities in the Northeast, PG Energy
experienced a dramatic decrease in degree days. This was the primary reason
for our revenue decline," said Thomas F. Karam, PEI President and CEO.
"All other aspects of our business are on track," Mr. Karam said. "We
continue to grow our nonregulated operations, which will work to mitigate the
weather-sensitive nature of PG Energy."
Continuing on track, Mr. Karam said, is development of several projects
that should make the company stronger in the future. PEI Power Corporation's
Archbald Cogeneration Plant began burning methane on July 28. The gas,
recovered from a local landfill, will allow the Plant to generate low-cost
steam and electricity. The steam and electricity will be sold at below-market
rates to occupants of the Corporation's newly announced PEI Power Park. The
Park is being developed on more than 200 acres of land adjacent to the Plant.
The Park is intended to be the future home of a number of manufacturing
concerns who the Company believes one day could employ up to several thousand
persons and provide a considerable boost to the local economy. The Company
soon is expected to announce its first Park occupant. Groundbreaking for that
firm's structure is expected to take place this fall.
PEI is a holding company with regulated and nonregulated subsidiaries. The
regulated group consists of PG Energy and its subsidiary, Honesdale Gas
Company, which together deliver natural gas to approximately 150,000 customers
in thirteen counties in northeastern and central Pennsylvania. The
nonregulated group consists of PEI Power Corporation, Theta Land Corporation
and PG Energy Services and its subsidiary, Keystone Pipeline Services, Inc. PG
Energy Services markets energy and energy products in a 26-county area of
central and northeastern Pennsylvania under the name PG Energy PowerPlus. In
addition to energy products PG Energy PowerPlus markets home and business
security systems, fire detection and environmental hazard monitoring systems
and Custom Care, a service maintenance contract for gas-fired heating
equipment and appliances.
PEI news releases are available 24 hours a day by fax machine or by
visiting the Company website at http://www.pnt.com. To receive a faxed copy of
its news release, call 1-800-758-5804 on a touch tone phone and use PEI's ID #
684209. Follow the prompted instructions to receive a copy of its most recent
news release or a menu of its latest news releases. Company news will be faxed
to you immediately without charge.
PENNSYLVANIA ENTERPRISES, INC.
SUMMARY OF REVENUES AND EARNINGS
Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
(in thousands except per share amounts)
OPERATING REVENUES:
Regulated $25,004 $33,210 $90,010 $113,149
Nonregulated -
Gas sales and services 7,576 5,991 16,601 13,366
Pipeline construction
and services 3,204 2,627 5,608 4,780
Other 87 36 541 60
Total operating revenues $35,871 $41,864 $112,760 $131,355
INCOME (LOSS) FROM CONTINUING
OPERATIONS, NET OF SUBSIDIARY'S
PREFERRED STOCK DIVIDENDS $(391) $151 $5,148 $8,203
INCOME WITH RESPECT TO
DISCONTINUED OPERATIONS - - - -
EXTRAORDINARY LOSS (NET OF TAX
BENEFIT OF $575,000) - - - -
NET INCOME (LOSS) $(391) $151 $5,148 $8,203
COMMON STOCK
BASIC EARNINGS (LOSS) PER
SHARE OF COMMON STOCK:
Continuing operations $(0.04) $0.02 $0.52 $0.85
Net income $(0.04) $0.10(A) $0.52 $0.94(A)
DILUTED EARNINGS (LOSS)
PER SHARE OF COMMON STOCK:
Continuing operations $(0.04) $0.02 $0.52 $0.85
Net income $(0.04) $0.10(A) $0.52 $0.94(A)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 9,899,397 9,643,642 9,826,776 9,629,606
Twelve Months Ended
June 30
1998 1997
(in thousands except per share amounts)
OPERATING REVENUES:
Regulated $167,395 $178,871
Nonregulated -
Gas sales and services 29,270 21,514
Pipeline construction and services 12,037 10,977
Other 781 129
Total operating revenues $209,483 $211,491
INCOME (LOSS) FROM CONTINUING
OPERATIONS, NET OF SUBSIDIARY'S
PREFERRED STOCK DIVIDENDS $8,775 $9,383
INCOME WITH RESPECT TO
DISCONTINUED OPERATIONS - 25
EXTRAORDINARY LOSS (NET OF TAX
BENEFIT OF $575,000) - (1,117)
NET INCOME (LOSS) $8,775 $8,291
COMMON STOCK
BASIC EARNINGS (LOSS) PER SHARE
OF COMMON STOCK:
Continuing operations $0.90 $0.98
Net income $0.91 $0.95(A)
DILUTED EARNINGS (LOSS) PER SHARE
OF COMMON STOCK:
Continuing operations $0.89 $0.98
Net income $0.90 $0.95(A)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 9,758,831 9,622,123
(A) Reflects a $.01 increase in the twelve month period ended June 30,
1998, as well as an $.08 increase in the three month period and a $.09
increase in the six and twelve month periods ended June 30, 1997 for discounts
on the repurchase of subsidiary's preferred stock.
SOURCE Pennsylvania Enterprises, Inc.
 back to top
Related links:
http://www.pnt.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 684209
CONTACT:
John Hambrose of PEI, 717-829-8756
|
