WILKES-BARRE, Pa., Nov. 4 /PRNewswire/ -- Warm weather and revenue growth
in non-regulated operations were primary factors in Pennsylvania Enterprises,
Inc.'s, (PEI) (NYSE: PNT) third quarter financial performance.
For the three-month period ended September 30, 1998, PEI reported a
seasonal net loss of $2.7 million or 27 cents per share. PG Energy, a
regulated natural gas distribution company, is PEI's principal subsidiary.
Honesdale Gas Company is a regulated subsidiary of PG Energy.
Helping offset the effects of the cyclical nature of PG Energy's business
were revenue gains among PEI's non-regulated subsidiaries. Revenues from
non-regulated operations increased 47.8 percent -- from $7.9 million to
$11.7 million -- between the third quarters of 1997 and 1998. The growth was
attributed to PG Energy Services' sales of energy and energy-related products
and services as well as PEI Power Corporation's July startup of electricity
generation and sales. Also contributing were increased revenues from Keystone
Pipeline Services, Inc.
Year-to-date operating revenues for 1998 are down 10.2 percent, from
$155.6 million in 1997 to $139.7 million this year, because of lower sales by
PG Energy.
"Our core business is very weather dependent," said Thomas F. Karam,
President and CEO of PEI. "In that respect we are no different than any of
the natural gas utilities in the Northeast. We all endured a warm winter last
year and in September a slow start to this heating season.
"We will continue our efforts to reduce the weather sensitive nature of
our earnings," Mr. Karam said.
Mr. Karam reported that a number of events important to the company's
future occurred since PEI's last quarterly report. Chief among those was the
October Pennsylvania Public Utility Commission (PPUC) decision that granted PG
Energy a $7.4 million increase in revenues. The new rates approved by the
PPUC went into effect October 17.
Also in October, the PPUC Bureau of Consumer Services reported that PG
Energy received the most favorable rating in five of eight customer service
categories it tracks among natural gas distribution companies.
In September, the PPUC ruled that the operation of the Archbald
Cogeneration Plant will not be subject to Commission regulation. The Plant is
using landfill gas and natural gas to generate steam and electricity. The
power generated by the Plant eventually will be sold to occupants of PEI Power
Park. The industrial park is being developed adjacent to the Plant.
Laminations, Inc., a plastics manufacturer in Scranton, announced in
September that it will build a 200,000 square foot manufacturing plant in PEI
Power Park.
PEI is a holding company with regulated and non-regulated subsidiaries.
The regulated group consists of PG Energy and its subsidiary, Honesdale Gas
Company, which together provide natural gas to approximately 150,000 customers
in 13 counties in northeastern and central Pennsylvania. The non-regulated
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 related 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 and 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 our 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 our most
recent news release or a menu of our latest news releases. Company news will
be faxed to you immediately without charge.
PENNSYLVANIA ENTERPRISES, INC.
SUMMARY OF REVENUES AND EARNINGS
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 September 30 September 30
1998 1997 1998 1997 1998 1997
(In thousands, except
per share amounts)
OPERATING REVENUES:
Energy products
and services -
Regulated $15,177 $16,276 $105,187 $129,425 $166,295 $181,149
Nonregulated 8,112 4,589 25,254 18,015 33,557 23,972
Pipeline construction
and services 3,611 3,344 9,219 8,124 12,304 11,228
Total operating
revenues $26,900 $24,209 $139,660 $155,564 $212,156 $216,349
INCOME (LOSS) FROM CONTINUING
OPERATIONS, NET OF SUBSIDIARY'S
PREFERRED STOCK
DIVIDENDS $(2,711)$(2,367) $2,437 $5,836 $8,432 $9,963
INCOME WITH RESPECT TO
DISCONTINUED
OPERATIONS -- -- -- -- -- 17
NET INCOME
(LOSS) $(2,711)$(2,367) $2,437 $5,836 $8,432 $9,980
COMMON STOCK
BASIC EARNINGS (LOSS)
PER SHARE OF COMMON STOCK:
Continuing
operations $(0.27) $(0.24) $0.25 $0.61 $0.86 $1.04
Net income $(0.27) $(0.24) $0.25 $0.69(a) $0.86 $1.13(a)
DILUTED EARNINGS (LOSS)
PER SHARE OF COMMON STOCK:
Continuing
operations $(0.27) $(0.24) $0.24 $0.60 $0.85 $1.03
Net income $(0.27) $(0.24) $0.24 $0.68(a) $0.85 $1.12(a)
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING 10,062,702 9,669,614 9,906,282 9,643,088 9,857,911 9,634,367
(a) Reflects a $.08 increase in the nine month period and a $.09 increase
in the twelve month period ended September 30, 1997 for discounts on
the repurchase of subsidiary's preferred stock.
SOURCE Pennsylvania Enterprises, Inc.
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Related links:
http://www.pnt.com
Company News On-Call:
http://www.prnewswire.com/comp/684209.html or fax,
800-758-5804, ext. 684209
CONTACT:
John J. Hambrose of Pennsylvania Enterprises,
717-829-8756
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