WILKES-BARRE, Pa., Feb. 18 /PRNewswire/ -- Pennsylvania Enterprises, Inc.
(NYSE: PNT) (PEI) today reported basic and diluted earnings of $1.30 per share
for 1997, a 155% increase from 1996 earnings of 51 cents per share including a
charge of 13 cents per share on the repurchase of preferred stock. Net income
for 1997 was $11.8 million compared to $6.6 million for 1996. This increase
of $5.2 million in net income allowed PEI to earn its dividend for the first
time in eight years.
For year-ended 1997, PEI's operating revenues rose by $43.6 million to
$228 million, as a result of increased sales in both PEI's regulated and
nonregulated operations. The higher operating revenues in regulated
operations were primarily the result of higher gas costs.
In 1997, PEI experienced strong performance by its core regulated
business, as well as record growth in its nonregulated activities. The
Company had a 3% growth in the number of new or expanded natural gas services
for PG Energy, PEI's principal subsidiary, and acquired an additional 3,200
customers through the purchase of Honesdale Gas Company, a natural gas
distribution company. On the Company's nonregulated side, the aggressive
marketing efforts of PG Energy PowerPlus, a division of PG Energy Services,
doubled operating revenues from $13 million in 1996 to $26 million in 1997,
while adding nearly 5,000 electric and gas customers.
For the quarter ended December 31, 1997, PEI reported basic and diluted
earnings per share of 62 cents and 61 cents respectively, on net income of
$6.0 million, compared to net income of $4.1 million or 43 cents per share on
a basic and diluted basis for the same period last year. PEI reported
$72.5 million in total operating revenues for the fourth quarter of 1997, an
increase of $11.7 million.
Thomas F. Karam, President & CEO of PEI, stated, "Our 1997 earnings of
$1.30 per share is a satisfying financial highlight in a year of transition
and growth for our Company. Strict efforts to control costs, combined with
exceptional growth by our subsidiaries, exhibits the progress made in becoming
a multifaceted energy company. The Board of Directors and Management are
pleased to announce that 1997 was a truly historic year in all aspects of our
operations, including the fact that we witnessed an enormous earnings growth
in the midst of a transition from what was formerly known as simply a gas
company to a total energy company."
Karam continued, "The energy industry has begun a transformation in the
Commonwealth of Pennsylvania and throughout the entire country, and PEI has
positioned itself to compete in this new atmosphere. In 1997, PG Energy
PowerPlus took part in the Customer Choice Electric Pilot Program offered by
the state's electric utilities. For the first time in our 140 year history,
customers are being supplied electricity by our Company. PG Energy PowerPlus
will continue to attract new customers as the knowledge and experience gained
in 1997 guides the Company through 1998." PEI also anticipates 1998 to be a
landmark year, as the Company's newest subsidiary, PEI Power Corporation, is
expected to produce low cost electricity for local consumers using the
renewable energy produced by a nearby landfill. PEI Power Corporation is
working with the United States Environmental Protection Agency and
Pennsylvania's Department of Environmental Protection to promote the benefits
created by this form of electric generation.
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 provide 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, in alliance with CNG Services, markets energy and
energy products in a 26-county area of central and northeastern Pennsylvania
under the name PG Energy PowerPlus.
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 a news release, call 1-800-758-5804 on a touch tone phone and use PEI's
ID No. 684209. Follow the prompted instructions to receive a copy of the most
recent news release or a menu of PEI's latest news releases. Company news
will be faxed to you immediately without charge.
PENNSYLVANIA ENTERPRISES, INC.
SUMMARY OF REVENUES AND EARNINGS
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
(In thousands, except per share amounts)
OPERATING REVENUES:
Regulated $61,108 $51,724 $190,533 $160,594
Nonregulated-
Gas sales and services 8,115 5,942 26,004 13,028
Pipeline construction
and services 3,086 3,099 11,210 10,733
Other 173 17 299 125
Total operating
revenues $72,482 $60,782 $228,046 $184,480
INCOME FROM CONTINUING
OPERATIONS, NET OF
SUBSIDIARY'S PREFERRED
STOCK DIVIDENDS $5,994 $4,122 $11,830 $8,064
INCOME (LOSS) WITH RESPECT
TO DISCONTINUED
OPERATIONS --- 23 --- (363)
EXTRAORDINARY LOSS
(NET OF TAX BENEFIT
OF $575,000) --- --- --- (1,117)
NET INCOME $5,994 $4,145 $11,830 $6,584
COMMON STOCK (Note 1)
BASIC EARNINGS PER SHARE
OF COMMON STOCK:
Continuing
operations $0.62 $0.43 $1.22 $0.79
Net income $0.62 $0.43 $1.30 (2) $0.51 (2)
DILUTED EARNINGS PER SHARE
OF COMMON STOCK:
Continuing
operations $0.61 $0.43 $1.22 $0.79
Net income $0.61 $0.43 $1.30 (2) $0.51 (2)
WEIGHTED AVERAGE NUMBER
OF SHARES
OUTSTANDING 9,714,374 9,608,486 9,661,056 10,222,002
(1) All share data has been restated to reflect the two-for-one split
effective March 20, 1997.
(2) Reflects the impact of an $.08 per share increase in 1997 and a $.13
per share reduction in 1996 on repurchase/redemption of subsidiary's preferred
stock.
SOURCE Pennsylvania Enterprises, Inc.
 back to top
Related links:
http://www.pnt.com
CONTACT:
Albert Fereck of Pennsylvania Enterprises,
717-829-8756
CNOC: http://www.prnewswire.com or fax, 1-800-758-5804, ext.
684209
|
