SEATTLE, April 17 /PRNewswire/ -- Cascade Natural Gas Corporation
(NYSE: CGC) reported a 24% improvement in second quarter earnings per share
over second quarter 1999 results. Net earnings available to common
shareholders for the quarter ended March 31, 2000 were $9,866,000, or
$0.89 per share, compared to $7,900,000, or $0.72 per share for the second
quarter of fiscal 1999.  For the six months ended March 31, 2000, net earnings
available to common shareholders were $17,506,000 or $1.58 per share, compared
to $14,532,000, or $1.32 per share for the six months ended March 31, 1999, a
20% increase.
    The primary reason for the 24% growth in earnings was a $3.3 million
increase in operating margin for the most recent quarter. Major contributors
were:

    -- Operating margin from residential & commercial customers was up
$2.2 million with $940,000 due to the addition of 7,900 new customers since
March 31, 1999, and $1.3 million resulting from increased per customer
consumption, which can be attributed, in large part, to weather that was about
7% colder this year vs. last year. Temperatures for the most recent quarter
were essentially equal to the long term average or normal.
    -- Operating margin from industrial customers was higher by $1 million
with half the increase contributed by electric generation customers, $174,000
from new customers, and the remainder from higher deliveries to other industry
categories.

    For the six months ended March 31, operating margins improved
$3.7 million and temperatures were 2% colder than the six months for fiscal
1999 and 2% warmer than the long term average or normal.
    Cost of Operations increased $453,000 for the quarter, a 3% increase.
Depreciation accounted for $106,000, with the remainder attributable to
performance based compensation accruals. For the six months through March 31,
Cost of Operations was lower by $255,000 compared to the six months ended
March 31, 1999. The reduction for the six months is the result of lower
operating expense of $466,000 partially offset by $238,000 of higher
depreciation expense. Operating expense reductions are primarily the result of
lower labor expense reflecting 28 fewer employees this year compared to last
and improved operating efficiency.
    Year to date capital expenditures, net of contributions in aid of
construction, were $7.0 million. The fiscal year 2000 capital budget is
$23.5 million. These expenditures are expected to be financed approximately
75% from operating activities and 25%  from debt financing.
    The Company previously announced its declaration of a quarterly $0.24 per
share dividend on common stock, payable May 15, 2000 to shareholders of record
at the close of business April 14, 2000.
    Statements containing "forward-looking" information involve uncertainty.
Actual future results may differ materially depending on a variety of factors,
including the Company's successful execution of internal performance plans;
regulatory uncertainties; the weather; performance issues with key natural gas
suppliers and collective  bargaining labor disputes.
    Cascade Natural Gas Corporation is a local distribution company providing
natural gas service to over 187,000 customers in the states of Washington and
Oregon. The common stock is listed on the New York Stock Exchange with the
symbol CGC.

                         Cascade Natural Gas Corporation
           Financial Highlights - (Thousands, except per share amounts)
                            Second Quarter Fiscal 2000

                                Fiscal Year 2000

                                     Three Months Ended
                                                               Year      Six
                                                               Ended    Months
                                                                        Ended
                             Dec 31   Mar 31   Jun 30 Sep 30  Sep 30   Mar 31

    Revenues                $73,791  $88,830                        $162,621
    Operating Margin         27,608   32,492                          60,100
    Cost of Operations       13,016   14,244                          27,260

    Operating Income (Loss)  14,592   18,248                          32,840
    Interest and Other        2,559    2,709                           5,268
    Income Taxes              4,392    5,672                          10,064

    Net Earnings (Loss)       7,641    9,867                          17,508
    Preferred Dividends           1        1                               2
    Net Earnings (Loss)
     Available to
     Common Shareholders     $7,640   $9,866                         $17,506
    Common Shares
     Outstanding:
      End of Period          11,045   11,045                          11,045
      Average                11,045   11,045                          11,045
    Net Earnings (Loss)
     Per Share                $0.69    $0.89                           $1.58
    Dividends Paid
     per share                $0.24    $0.24                           $0.48
    Capital Expenditures
     (net)                   $2,990   $4,050                          $7,040
    Book Value Per Share     $10.81   $11.46                          $11.46
    Market Closing Price     $16.13   $16.13                          $16.13
    Customers
     (End of Period)            185      187                             187
    Gas Deliveries (Therms):
     Residential &
      Commercial             79,432   98,443                         177,875
     Industrial & Other     358,102  322,967                         681,069
    Degree Days
     Normal                   2,002    2,367                           4,369
     Actual                   1,942    2,361                           4,303
    Colder (warmer) than
     normal                    (3%)     (0%)                             (2%)



                                                    Fiscal Year 1999
                                                   Three Months Ended

                                           Dec 31    Mar 31   Jun 30    Sep 30

    Revenues                              $62,917   $71,118  $42,869   $31,706
    Operating Margin                       27,162    29,195   17,292    12,418
    Cost of Operations                     13,724    13,791   13,501    12,712
    Operating Income (Loss)                13,438    15,404    3,791     (294)
    Interest and Other                      2,622     2,584    2,477     2,528
    Income Taxes                            4,062     4,801      503   (1,291)
    Net Earnings (Loss)                     6,754     8,019      811   (1,531)
    Preferred Dividends                       123       119      121       120
    Net Earnings (Loss) Available
     to Common Shareholders                $6,631    $7,900     $690  $(1,651)
    Common Shares Outstanding:
      End of Period                        11,045    11,045   11,045    11,045
      Average                              11,045    11,045   11,045    11,045
    Net Earnings (Loss) Per Share           $0.60     $0.72   $ 0.06   $(0.15)
    Dividends Paid per share                $0.24     $0.24     0.24      0.24
    Capital Expenditures (net)             $6,038    $3,206    3,488     4,530
    Book Value Per Share                   $10.45    $10.92    10.75     10.33
    Market Closing Price                   $18.13    $14.94    19.00     17.88
    Customers (End of Period)                 177       179      178       177
    Gas Deliveries (Therms):
      Residential & Commercial             76,888    88,636   40,937    20,406
      Industrial & Other                  347,585   281,395  240,793   286,768
    Degree Days
      Normal                                2,002     2,367      982       318
      Actual                                2,015     2,205    1,014       302
    Colder (warmer) than normal                1%      (7%)       3%      (5%)


                                                  Fiscal Year 1999
                                                Year     Six Months
                                               Ended          Ended
                                              Sep 30         Mar 31

    Revenues                                $208,610       $134,035
    Operating Margin                          86,067         56,358
    Cost of Operations                        53,728         27,515
    Operating Income (Loss)                   32,339         28,843
    Interest and Other                        10,211          5,206
    Income Taxes                               8,075          8,864
    Net Earnings (Loss)                       14,053         14,773
    Preferred Dividends                          483            241
    Net Earnings (Loss) Available
     to Common Shareholders                  $13,570        $14,532
    Common Shares Outstanding:
     End of Period                            11,045         11,045
     Average                                  11,045         11,045
    Net Earnings (Loss) Per Share              $1.23          $1.32
    Dividends Paid per share                   $0.96          $0.48
    Capital Expenditures (net)               $17,262         $9,244
    Book Value Per Share                      $10.33         $10.92
    Market Closing Price                      $17.88         $14.94
    Customers (End of Period)                    177            179
    Gas Deliveries (Therms):
     Residential & Commercial                226,867        165,524
     Industrial & Other                    1,156,541        628,980
    Degree Days
     Normal                                    5,669          4,369
     Actual                                    5,536          4,220
    Colder (warmer) than normal                 (2%)           (3%)

Link to this page: