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| Cascade Natural Gas Corporation Announces Fiscal Year 2002 First Quarter Earnings |
SEATTLE, Jan 16. /PRNewswire-FirstCall/ -- Cascade Natural Gas Corporation (NYSE: CGC) reported earnings of $6.2 million, or $0.57 per share for the fiscal first quarter ended December 31, 2001 compared to $8.4 million, or $0.76 per share for the first quarter ended December 31, 2000. The earnings reduction was greater than previously anticipated by the Company primarily due to lower than expected margins from residential and commercial customers during December. Absent colder weather the remainder of the winter season, this decline could reduce full-year fiscal 2002 analyst earnings estimates by $0.06 to $0.10 per share. Residential and commercial operating margins were down in the quarterly comparison by $2.0 million. Due to warm weather through much of the quarter, conservation efforts that followed last year's western energy crisis, and the national recession, there was lower residential and commercial consumption which negatively affected operating margins by $2.6 million. On the positive side, 5,724 new residential and commercial customers added since the quarter ended December 31, 2000 increased margins $620,000. Operating margins from industrial customers increased by almost $600,000, with much of the increase coming from the Company's new gas management services. Margin from electric generation customers in the group was $200,000 lower than last year, reflecting abundant hydroelectric availability and a general reduction in demand for electricity in the West. Margins from gas deliveries to customers other than electric generators were up slightly compared to first quarter 2001, reflecting the favorable response of industrial customers to current gas costs. Since almost two months of the 2001 quarter predated last winter's sharp jump in wholesale gas costs and the resulting decline in industrial consumption, the comparison to last year is especially encouraging. Additionally, there was $240,000 of margin from off-system pipeline capacity agreements entered into last year. Total cost of Operations increased $2.2 million for the quarter. The largest portion was operating expenses, which increased $1.9 million from the 2001 fiscal first quarter. Most of the increase resulted from employee related expenses; software and plant maintenance; insurance premiums; and a one time charge. First quarter net capital expenditures were $4.6 million out of a total budget for the fiscal year of $22.8 million. The Company completed a $40 million, 30 year, 7.50% debt offering at the end of November with proceeds going toward pay down of short-term debt. Statements contained in this report that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual future results to differ materially. Such risks and uncertainties with respect to the Company include, among others, its ability to successfully implement internal performance goals, competition from alternative forms of energy, consolidation in the energy industry, the failure or inability of key natural gas suppliers to honor their commitments, the capital-intensive nature of the Company's business, regulatory issues, including the need for adequate and timely rate relief to recover increased capital and operating costs resulting from customer growth and to sustain dividend levels, the weather, increasing competition brought on by deregulation initiatives at the federal and state regulatory levels, the potential loss of large volume industrial customers due to "bypass" or the shift by such customers to special competitive contracts at lower per unit margins, exposure to environmental cleanup requirements, and economic conditions, particularly in the Company's service area. The Company previously announced its declaration of a $0.24 per share quarterly dividend on common stock, payable February 15, 2002 to shareholders of record at the close of business January 15, 2002. Cascade Natural Gas Corporation is a local distribution company providing natural gas service to over 199,000 customers in the states of Washington and Oregon. CONTACT: J. D. Wessling of Cascade Natural Gas Corporation, +1-206-624-3900. Cascade Natural Gas Corporation Financial Highlights - (Thousands, except per share amounts) First Quarter Fiscal 2002 Fiscal Year 2002 Three Months Ended Year to Dec 31 Mar 31 Jun 30 Sep 30 Date Revenues $102,761 $102,761 Operating Margin 28,643 28,643 Cost of Operations 15,911 15,911 Operating Income (Loss) 12,732 0 0 0 12,732 Interest and Other 2,901 2,901 Income Taxes 3,588 3,588 Net Income (Loss) $6,243 $-- $-- $-- $6,243 Common Shares Outstanding: End of Period 11,045 11,045 Average 11,045 11,045 Earnings (Loss) Per Share Basic $0.57 $0.57 Diluted $0.56 $0.56 Dividends Paid per share $0.24 $0.24 Capital Expenditures (net) $4,557 $4,557 Book Value Per Share $11.34 $11.32 Market Closing Price $22.05 $22.05 Customers (End of Period) 199 199 Gas Deliveries (Therms): Residential & Commercial 79,412 79,412 Industrial & Other 303,130 303,130 Degree Days Normal 2,136 2,136 Actual 2,038 2,038 Colder (warmer) than normal (5%) (5%) Cascade Natural Gas Corporation Financial Highlights - (Thousands, except per share amounts) First Quarter Fiscal 2002 Fiscal Year 2001 Three Months Ended Year Ended Dec 31 Mar 31 Jun 30 Sep 30 Sep 30 Revenues $104,965 $124,728 $64,085 $42,036 $335,814 Operating Margin 29,620 30,795 21,125 13,492 95,032 Cost of Operations 13,674 14,172 15,244 14,958 58,048 Operating Income (Loss) 15,946 16,623 5,881 (1,466) 36,984 Interest and Other 2,726 2,472 2,643 2,629 10,470 Income Taxes 4,825 5,165 1,182 (1,894) 9,278 Net Income (Loss) $8,395 $8,986 $2,056 $(2,201) $17,236 Common Shares Outstanding: End of Period 11,045 11,045 11,045 11,045 11,045 Average 11,045 11,045 11,045 11,045 11,045 Earnings (Loss) Per Share Basic $0.76 $0.81 $0.19 ($0.20) $1.56 Diluted $0.76 $0.81 $0.19 ($0.20) $1.56 Dividends Paid per share $0.24 $0.24 0.24 0.24 $0.96 Capital Expenditures (net) $5,255 $3,349 6,026 8,063 $22,693 Book Value Per Share $11.31 $11.88 11.83 10.41 $10.79 Market Closing Price $18.81 $20.35 21.30 21.60 $17.50 Customers (End of Period) 193 194 191 191 185 Gas Deliveries (Therms): Residential & Commercial 87,708 92,974 38,000 19,922 238,604 Industrial & Other 355,147 343,413 325,474 344,513 1,368,547 Degree Days Normal 1,998 2,288 871 233 5,390 Actual 2,308 2,345 936 204 5,793 Colder (warmer) than normal 16% 2% 7% (12%) 7%SOURCE Cascade Natural Gas Corporation
back to topCONTACT:
J. D. Wessling of Cascade Natural Gas
Corporation, +1-206-624-3900
