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| Cascade Natural Gas Corporation Announces Fiscal 2001 Third Quarter and Nine Months Results |
SEATTLE, July 16 /PRNewswire/ -- Cascade Natural Gas Corporation (NYSE: CGC) reported third quarter earnings of $2.1 million or $0.19 per share compared to a $46,000, or $0.00 per share, third quarter 2000 loss. For the nine months earnings were $19.4 million or $1.76 per share compared to $17.5 million or $1.58 per share for the nine months ended June 30, 2000. Contracts dealing with off-system interstate pipeline capacity had a $0.14 per share, positive impact on earnings for the quarter and nine months. These transactions were one-time opportunities and are not an on going part of Cascade's business. Excluding the off-system capacity transactions, operating margin was greater than third quarter 2000 by $2 million. Residential and commercial margin exceeded third quarter fiscal year 2000 by $1.6 million. Residential consumption was up 33% contributing to higher margins of $1.1 million. Higher consumption is primarily attributable to colder weather as measured in degree-days, which were 22% higher. There were 6,500 more residential and commercial customers this year compared to last which added $296,000 of additional margin. Industrial operating margin exceeded the prior year third quarter by $484,000. Electric generation customers were the major contributors, with $448,000 of additional margin from a 33% increase in gas consumption. Consumption from industrial customers other than electric generators declined but the decline was more than offset by margin from other services provided to these customers. Opportunities arising from the western electricity crisis mentioned last quarter are developing as expected. As stated above, Cascade electric generation customers operated existing plants at higher levels than last year. Four new generating projects, completed within the past month, are expected to contribute over $1 million of additional operating margin annually, and as many as four or five more new generating customers may come on line yet this summer. Cost of operations is up for the quarter by $1.8 million, due primarily to $900,000 of incentive compensation accruals, $403,000 of expense related to the design, installation and training required with the new integrated work management system, salary and wage increases, higher maintenance expense, and other. Year-to-date costs have increased $2.4 million with $1 million attributable to the work management system. Year to date capital expenditures, net of contributions in aid of construction, were $14.6 million. Expenditures for the full year are expected to be approximately $5 million less than the $25.4 million budget, due primarily to lower overall pipeline installation costs. Our new integrated work management system is on schedule for completion before fiscal year end. A conference call will be conducted July 17 at 7:30 a.m. Pacific Daylight Time. The Company previously announced its declaration of a quarterly $0.24 per share dividend on common stock, payable August 15, 2001 to shareholders of record at the close of business July 13, 2001. 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, performance issues with key natural gas suppliers, 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. Cascade Natural Gas Corporation is a local distribution company providing natural gas service to over 194,000 customers in the states of Washington and Oregon. CONTACT: J. D. Wessling of Cascade Natural Gas Corporation, 206-624-3900. Cascade Natural Gas Corporation Financial Highlights - (Thousands, except per share amounts) Third Quarter Fiscal 2001 Fiscal Year 2001 Three Months Ended Year to Date Dec 31 Mar 31 Jun 30 Sep 30 Jun 30 Revenues $104,965 $124,728 $64,085 $293,778 Operating Margin 29,620 30,795 21,125 81,540 Cost of Operations 13,674 14,172 15,244 43,090 Operating Income (Loss) 15,946 16,623 5,881 38,450 Interest and Other 2,726 2,472 2,643 7,841 Income Taxes 4,825 5,165 1,182 11,172 Net Earnings (Loss) 8,395 8,986 2,056 19,437 Preferred Dividends 0 0 0 0 Net Earnings (Loss) Available to Common Shareholders $8,395 $8,986 $2,056 $19,437 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 $0.76 $0.81 $0.19 $1.76 Dividends Paid per share $0.24 $0.24 0.24 $0.72 Capital Expenditures (net) $5,255 $3,349 6,026 $14,629 Book Value Per Share $11.31 $11.88 11.83 $11.83 Market Closing Price $18.81 $20.35 21.30 $21.30 Customers (End of Period) 193 194 191 191 Gas Deliveries (Therms): Residential & Commercial 87,708 92,974 38,000 218,682 Industrial & Other 355,147 343,413 325,474 1,024,034 Degree Days Normal 1,998 2,288 871 5,157 Actual 2,308 2,345 936 5,589 Colder (warmer) than normal 16% 2% 7% 8% Fiscal Year 2000 Three Months Ended Dec 31 Mar 31 Jun 30 Sep 30 Revenues $73,791 $88,830 $41,563 $37,752 Operating Margin 27,608 32,492 16,068 13,826 Cost of Operations 13,016 14,244 13,444 14,293 Operating Income (Loss) 14,592 18,248 2,624 (467) Interest and Other 2,559 2,709 2,692 2,612 Income Taxes 4,392 5,672 (23) (990) Net Earnings (Loss) 7,641 9,867 (45) (2,089) Preferred Dividends 1 1 1 1 Net Earnings (Loss) Available to Common Shareholders $7,640 $9,866 ($46) ($2,090) 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 $0.69 $0.89 ($0.00) ($0.19) Dividends Paid per share $0.24 $0.24 0.24 0.24 Capital Expenditures (net) $2,990 $4,050 4,076 4,821 Book Value Per Share $10.81 $11.46 11.22 10.79 Market Closing Price $16.13 $16.13 16.69 17.50 Customers (End of Period) 185 187 185 185 Gas Deliveries (Therms): Residential & Commercial 79,432 98,443 30,910 19,782 Industrial & Other 358,102 322,967 287,644 377,275 Degree Days Normal 2,002 2,367 982 318 Actual 1,944 2,361 765 302 Colder (warmer) than normal (3%) (0%) (22%) (5%) Fiscal Year 2000 Year Year Ended to Date Sep 30 Jun 30 Revenues $241,936 $204,184 Operating Margin 89,994 76,168 Cost of Operations 54,997 40,704 Operating Income (Loss) 34,997 35,464 Interest and Other 10,572 7,961 Income Taxes 9,051 10,040 Net Earnings (Loss) 15,374 17,463 Preferred Dividends 4 3 Net Earnings (Loss) Available to Common Shareholders $15,370 $17,460 Common Shares Outstanding: End of Period 11,045 11,045 Average 11,045 11,045 Net Earnings (Loss) Per Share $1.39 $1.58 Dividends Paid per share $0.96 $0.72 Capital Expenditures (net) $15,937 $11,116 Book Value Per Share $10.79 $11.22 Market Closing Price $17.50 $16.69 Customers (End of Period) 185 185 Gas Deliveries (Therms): Residential & Commercial 228,567 208,785 Industrial & Other 1,345,988 968,713 Degree Days Normal 5,669 5,351 Actual 5,372 5,070 Colder (warmer) than normal (5%) (5%)SOURCE Cascade Natural Gas Corporation
back to topCONTACT:
J. D. Wessling of Cascade Natural Gas
Corporation, 206-624-3900
