EX-99.F.S.2 4 w54129ex99-f_s2.txt CONECTIV CONSOLIDATED INCOME STATEMENT 6/30/01 CONECTIV Item 6(b) FS-2 PRO FORMA CONSOLIDATED STATEMENTS OF INCOME Page 1 of 1 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
12 MONTHS ENDED JUNE 30, 2001 ----------------------------------------- ACTUAL ADJUSTMENTS PRO FORMA ----------- ----------- ----------- OPERATING REVENUES Electric $ 3,310,467 $ 3,310,467 Gain on sales of electric generating plants 313,752 313,752 Gas 1,955,817 1,955,817 Other services 534,242 534,242 ----------- -------- ----------- 6,114,278 6,114,278 ----------- -------- ----------- OPERATING EXPENSES Electric fuel and purchased energy and capacity 2,027,525 2,027,525 Gas purchased 1,881,565 1,881,565 Other services' cost of sales 457,740 457,740 Operation and maintenance 513,193 513,193 Depreciation and amortization 248,696 248,696 Taxes other than income taxes 76,947 76,947 ----------- -------- ----------- 5,205,666 5,205,666 ----------- -------- ----------- OPERATING INCOME 908,612 908,612 ----------- -------- ----------- OTHER INCOME 72,275 72,275 ----------- -------- ----------- INTEREST EXPENSE Interest charges 216,528 94,650 311,178 Capitalized interest and allowance for borrowed funds used during construction (16,449) (16,449) ----------- -------- ----------- 200,079 94,650 294,729 ----------- -------- ----------- PREFERRED STOCK DIVIDEND REQUIREMENTS OF SUBSIDIARIES 20,427 20,427 ----------- -------- ----------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 760,381 (94,650) 665,731 INCOME TAXES 319,637 (33,128) 286,509 ----------- -------- ----------- INCOME FROM CONTINUING OPERATIONS 440,744 (61,522) 379,222 DISCONTINUED TELECOMMUNICATION OPERATIONS LOSS FROM OPERATIONS, NET OF INCOME TAXES (23,885) (23,885) LOSS FROM DISPOSAL, NET OF INCOME TAXES (118,788) (118,788) ----------- -------- ----------- NET INCOME $ 298,071 $(61,522) $ 236,549 =========== ======== =========== EARNINGS FROM CONTINUING OPERATIONS APPLICABLE TO COMMON STOCK Common stock $ 429,159 $(61,522) $ 367,637 Class A common stock 11,585 11,585 ----------- -------- ----------- $ 440,744 $(61,522) $ 379,222 =========== ======== =========== AVERAGE SHARES OUTSTANDING (000) Common stock 82,702 82,704 Class A common stock 5,742 5,742 EARNINGS FROM CONTINUING OPERATIONS PER PER AVERAGE SHARE--BASIC AND DILUTED Common stock $ 5.19 $ (0.74) $ 4.45 Class A common stock $ 2.02 -- $ 2.02 DIVIDENDS DECLARED PER SHARE Common stock $ 0.88 $ 0.88 Class A common stock $ 2.65 $ 2.65
See the following notes to Pro Forma Consolidated Conectiv financial statements. NOTES TO PRO FORMA CONSOLIDATED CONECTIV FINANCIAL STATEMENTS (Dollars in Thousands) (1) For purposes of the Pro Forma Consolidated Balance Sheet, the following transactions were assumed to occur on June 30, 2001:
Short-term Debt Principal --------- (A) $1,000,000 of 5.0% short-term debt issued by Conectiv Energy Holding Company $1,000,000 (B) $750,000 of outstanding Conectiv short-term debt redeemed with proceeds from the issuance of Conectiv long-term debt, as discussed below. (750,000) ---------- Increase in short-term debt and cash $ 250,000 Long-term Debt (C) $750,000 of 7.0% long-term debt issued by Conectiv, with the proceeds used to redeem $750,000 of outstanding Conectiv short-term debt. $ 750,000 (D) $500,000 of 8.0% long-term debt issued by Conectiv Energy Holding Company 500,000 ---------- Increase in long-term debt and cash 1,250,000 Total increase in cash due to proceeds received from the issuance of long- and short-term ---------- debt, net of the cash used to retire short-term debt $1,500,000 ---------- (2) For purposes of the Pro Forma Consolidated Statement of Income, the transactions discussed in Note 1 above were assumed to occur at the beginning of the twelve month period ended June 30, 2001. Interest Interest expense increased due to the following: Expense ---------- (A) $1,000,000 of 5.0% short-term debt issued by Conectiv Energy Holding Company $ 50,000 (B) $750,000 of Conectiv short-term debt redeemed, with interest expense assumed to decrease based on Conectiv's average short-term debt interest rate of 6.38% during the twelve months ended June 30, 2001. (47,850) (C) $750,000 of 7.0% long-term debt issued by Conectiv 52,500 (D) $500,000 of 8.0% long-term debt issued by Conectiv Energy Holding Company 40,000 ---------- Total interest expense increase $ 94,650 ----------
(3) Represents the federal tax benefit, at 35%, of the interest expense described above in Note 2.