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| Cascade Natural Gas Reports Record Earnings |
Targeting Six Percent Long-Term Growth
SEATTLE, Nov. 5 /PRNewswire/ --
Cascade Natural Gas Corporation (NYSE: CGC) reported record earnings of
$17.2 million, or $1.56 per basic share for fiscal year 2001. Results for the
year were positively affected $0.14 per share by contracts dealing with
off-system interstate pipeline capacity. This was partially offset by
$0.05 per share of operating expenses related to the installation of a new
integrated work management system. These were one-time transactions and are
not an on-going part of Cascade's business. Excluding these one-time items,
earnings were $1.47 per share compared to fiscal year 2000 results of
$15.4 million or $1.39 per share, a 6% increase.
The quarter ended September 30 had a loss of $2.2 million, or $0.20 per
share, which was $110,000 greater than the loss reported in 2000. The Company
historically reports a seasonal loss in the quarter ended September 30.
Residential and commercial operating margins improved $2.8 million for the
year but margins from large industrial customers declined $800,000 resulting
in a $2.0 million improvement for the year in on-going margins. The addition
of 6,921 residential and commercial customers led to $2.1 million in higher
margins and higher average commercial consumption per customer added another
$700,000 to margins. There was no change in residential average customer
consumption despite the fact that weather was colder in fiscal 2001. We
attribute the lack of increased residential usage to the January rates
increases in Washington and general conservation efforts in response to the
power crisis last winter.
Operating margins from electric generation customers were up $600,000 for
the year; however, other large industrial customers had $2.2 million lower
margins than fiscal 2000. Changes in both categories are in large part the
result of the power crisis last winter. Other margin from gas management and
miscellaneous services provided to existing and new customers increased
$800,000 for the year.
On-going operating expenses increased 4.6% during fiscal year 2001, which
was, in large part, due to increases in regular compensation and profit
sharing related to achievement of goals.
Fiscal year 2001 capital expenditures were $21.6 million, which was
$5.9 million more than fiscal year 2000 but $3.8 million lower than budget.
Postponement of a major reinforcement project was the major factor in lower
than budgeted expenditures, and the $4.5 million spent installing a new
integrated work management system was the major factor contributing to higher
expenditures than 2000.
Fourth quarter 2001 results compared to fourth quarter 2000 were affected
by lower industrial operating margins. Electric generation margins were
$250,000 lower when compared with a very strong 2000 fourth quarter and other
industrial load lagged due to the effects of last winter's power crisis and a
slowing economy. Higher operating expenses, depreciation expense, and
payroll/property taxes contributed to the quarterly loss.
On October 31 Cascade received Washington Utilities and Transportation
Commission approval for its purchased gas adjustment filing. As a result,
Cascade's rates to customers will increase approximately 2% and last winter's
gas costs will be recovered over the next 3 years. The 3-year period is
consistent with fixed price natural gas purchase contracts entered into to
stabilize costs for the period.
Cascade's retirement plan had unrealized losses from investments as of
September 30, 2001, that resulted in the Company recognizing, in compliance
with Financial Accounting Standard 87, a liability of $6.6 million for the
unfunded accumulated benefit obligation at September 30. The unrealized loss
in the retirement plan stems from the significant general decline in common
stock values which make up a large percentage of the retirement plan assets.
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.
The Company previously announced its declaration of a $0.24 per share
quarterly dividend on common stock, payable November 15, 2001 to shareholders
of record at the close of business October 15, 2001.
Cascade Natural Gas Corporation is a local distribution company providing
natural gas service to over 196,000 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)
Fourth Quarter Fiscal 2001
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 Earnings (Loss) 8,395 8,986 2,056 (2,201) 17,236
Preferred Dividends 0 0 0 0 0
Net Earnings (Loss)
Available
to Common Shareholders $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
Net Earnings (Loss) Per
Share $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 $22,692
Book Value Per Share $11.31 $11.88 11.83 10.41 $10.41
Market Closing Price $18.81 $20.35 21.30 21.60 $21.60
Customers (End of Period) 193 194 191 191 191
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%
Cascade Natural Gas Corporation
Financial Highlights - (Thousands, except per share amounts)
Fourth Quarter Fiscal 2001
Fiscal Year 2000
Three Months Ended Year
Ended
Dec 31 Mar 31 Jun 30 Sep 30 Sep 30
Revenues $73,791 $88,830 $41,563 $37,752 $241,936
Operating Margin 27,608 32,492 16,068 13,826 89,994
Cost of Operations 13,016 14,244 13,444 14,293 54,997
Operating Income (Loss) 14,592 18,248 2,624 (467) 34,997
Interest and Other 2,559 2,709 2,692 2,612 10,572
Income Taxes 4,392 5,672 (23) (990) 9,051
Net Earnings (Loss) 7,641 9,867 (45) (2,089) 15,374
Preferred Dividends 1 1 1 1 4
Net Earnings (Loss)
Available
to Common Shareholders $7,640 $9,866 ($46) ($2,090) $15,370
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
Net Earnings (Loss) Per
Share $0.69 $0.89 ($0.00) ($0.19) $1.39
Dividends Paid per share $0.24 $0.24 0.24 0.24 $0.96
Capital Expenditures (net) $2,990 $4,050 4,076 4,821 $15,937
Book Value Per Share $10.81 $11.46 11.22 10.79 $10.79
Market Closing Price $16.13 $16.13 16.69 17.50 $17.50
Customers (End of Period) 185 187 185 185 185
Gas Deliveries (Therms):
Residential & Commercial 79,432 98,443 30,910 19,782 228,567
Industrial & Other 358,102 322,967 287,644 377,275 1,345,988
Degree Days
Normal 2,002 2,367 982 318 5,669
Actual 1,944 2,361 765 302 5,372
Colder (warmer) than normal (3%) (0%) (22%) (5%) (5%)
SOURCE Cascade Natural Gas Corporation
back to topCONTACT:
J. D. Wessling of Cascade Natural Gas
Corporation, +1-206-624-3900
