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| Cascade Natural Gas Announces Fiscal 2000 Third Quarter and Nine Months Earnings |
SEATTLE, July 18 /PRNewswire/ -- Cascade Natural Gas Corporation reported
a loss of $46,000, or $0.00 per share compared to earnings of $690,000 or
$0.06 per share, for the quarter ended June 30, 1999. Other than last year's
unusually strong performance, earnings for the quarter ending June 30, 2000,
were the best in a trend of improvements going back to 1996. Last year the
weather was colder than the long-term average during the quarter, particularly
May, which contributed to strong earnings for the period. Third quarter 1999
earnings were also affected by a $0.01 per share gain from the sale of
non-utility property.
For the nine months ended June 30, 2000, net earnings were $17.5 million,
or $1.58 per share, a 14.5% improvement over net earnings of $15.2 million, or
$1.38 per share, reported in 1999. Earnings improvement resulted primarily
from higher operating margin in the second quarter and lower expenses.
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Weather during the third quarter 2000 was 22% warmer than the long-term
average and 25% warmer than the third quarter 1999. Primarily as a result of
the warmer weather, residential and commercial operating margins were
$1.9 million lower for the third quarter 2000 compared to third quarter 1999.
Partially offsetting the effects of warmer weather was a $452,000 positive
effect of 7,540 more residential and commercial customers in the third quarter
2000 compared to third quarter 1999.
Industrial & other margin increased in the quarter $302,000. This increase
is primarily attributable to increased consumption by the electric generation
group, which was up 51.7 million therms compared to the fiscal year 1999
third quarter.
For the nine months, residential and commercial margins were
$868,000 higher than last year. A margin increase of $2.3 million from
customer additions over the period was partially offset by a $1.5 million
reduction resulting from lower consumption per customer. Overall consumption
was impacted by weather, which was 5% warmer than the long-term average, the
timing of warmer weather, and the mix of customers.
Third quarter operating expenses were down from the 1999 third quarter by
$355,000, or 3.9%. Essentially all the improvement results from lower salary
and wage expense, which is due to 21 fewer employees and lower overtime
expense. Expense for medical benefits is the only category with an increase
over $100,000. Property taxes are up this quarter vs. last year due to an
increase in preliminary assessed valuation. On a year-to-date basis, operating
expenses were lower by $820,000, depreciation was up $345,000 and property and
payroll taxes were up $163,000.
Third quarter capital expenditures, net of
contributions-in-aid-of-construction, were $4.1 million. Year-to-date
expenditures were $11.1 million of a total fiscal year 2000 capital budget of
$23.5 million. Two large projects budgeted at $4.4 million were cancelled,
consequently expenditures for the year will likely end up at less than
$20 million. Cash flow for the first nine months was positive and resulted in
minimal short-term borrowing.
The Company previously announced its declaration of a $0.24 per share
quarterly dividend on common stock, payable August 15, 2000 to shareholders of
record at the close of business July 14, 2000.
Cascade Natural Gas Corporation is a local distribution company providing
natural gas service to over 185,000 customers in the states of Washington and
Oregon. The common stock is listed on the New York Stock Exchange with the
symbol CGC.
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; weather and other factors influencing natural gas
usage by customers; performance issues with key natural gas suppliers; and
collective bargaining labor disputes.
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 2000
Fiscal Year 2000
Three Months Ended Nine Months
Ended
Dec 31 Mar 31 Jun 30 Sep 30 Jun 30
Revenues $73,791 $88,830 $41,563 $204,184
Operating Margin 27,608 32,492 16,068 76,168
Cost of Operations 13,016 14,244 13,444 40,704
Operating Income
(Loss) 14,592 18,248 2,624 35,464
Interest and Other 2,559 2,709 2,692 7,961
Income Taxes 4,392 5,672 (23) 10,040
Net Earnings (Loss) 7,641 9,867 (45) 17,463
Preferred Dividends 1 1 1 3
Net Earnings (Loss)
Available to Common
Shareholders $7,640 $9,866 ($46) $17,460
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) $1.58
Dividends Paid
per share $0.24 $0.24 0.24 $0.72
Capital Expenditures
(net) $2,990 $4,050 4,076 $11,117
Book Value Per Share $10.81 $11.46 11.22 $11.22
Market Closing Price $16.13 $16.13 16.69 $16.69
Customers (End of
Period) 185 187 185 185
Gas Deliveries
(Therms):
Residential &
Commercial 79,432 98,443 30,910 208,785
Industrial & Other 358,102 322,967 287,644 968,713
Degree Days
Normal 2,002 2,367 982 5,351
Actual 1,944 2,361 765 5,070
Colder (warmer)
than normal (3%) (0%) (22%) (5%)
Fiscal Year 1999
Three Months Ended Year Nine Months
Ended Ended
Dec 31 Mar 31 Jun 30 Sep 30 Sep 30 Jun 30
Revenues $62,917 $71,118 $42,869 $31,706 $208,610 $176,904
Operating Margin 27,162 29,195 17,292 12,418 86,067 73,650
Cost of
Operations 13,724 13,791 13,501 12,712 53,728 41,016
Operating Income
(Loss) 13,438 15,404 3,791 (294) 32,339 32,634
Interest and
Other 2,622 2,584 2,477 2,528 10,211 7,683
Income Taxes 4,062 4,801 503 (1,291) 8,075 9,367
Net Earnings
(Loss) 6,754 8,019 811 (1,531) 14,053 15,584
Preferred
Dividends 123 119 121 120 483 362
Net Earnings
(Loss)
Available
to Common
Shareholders $6,631 $7,900 $690 $(1,651) $13,570 $15,222
Common Shares
Outstanding:
End of Period 11,045 11,045 11,045 11,045 11,045 11,045
Average 11,045 11,045 11,045 11,045 11,045 11,045
Net Earnings
(Loss)
Per Share $0.60 $0.72 $0.06 $(0.15) $1.23 $1.38
Dividends Paid
per share $0.24 $0.24 0.24 0.24 $0.96 $0.72
Capital
Expenditures
(net) $6,038 $3,206 3,488 4,530 $17,262 $12,732
Book Value
Per Share $10.45 $10.92 10.75 10.33 $10.33 $10.75
Market Closing
Price $18.13 $14.94 19.00 17.88 $17.88 $19.00
Customers
(End of Period) 177 179 178 177 177 178
Gas Deliveries
(Therms):
Residential &
Commercial 76,888 88,636 40,937 20,406 226,867 206,461
Industrial &
Other 347,585 281,395 240,793 286,768 1,156,541 869,773
Degree Days
Normal 2,002 2,367 982 318 5,669 5,351
Actual 2,015 2,205 1,014 302 5,536 5,234
Colder (warmer)
than normal 1% (7%) 3% (5%) (2%) (2%)
SOURCE Cascade Natural Gas Corporation
back to topCONTACT:
J. D. Wessling of Cascade Natural Gas
Corporation, 206-624-3900
