-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AlWU56mVVnYXEdLklrJMSAHm/w38zye1af1W19haYuL4K4LhB70Lt9bd6hB1mY+f qcWiXzVMM9LdM60Hep1m4Q== 0000020520-97-000005.txt : 19970319 0000020520-97-000005.hdr.sgml : 19970319 ACCESSION NUMBER: 0000020520-97-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970316 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970318 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITIZENS UTILITIES CO CENTRAL INDEX KEY: 0000020520 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 060619596 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11001 FILM NUMBER: 97558431 BUSINESS ADDRESS: STREET 1: HIGH RIDGE PK BLDG 3 STREET 2: P O BOX 3801 CITY: STAMFORD STATE: CT ZIP: 06905 BUSINESS PHONE: 2033298800 MAIL ADDRESS: STREET 1: HIGH RIDGE PARK BLDG NO 3 CITY: STAMFORD STATE: CT ZIP: 06905 8-K 1 FORM 8-K DATED MARCH 18, 1997 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: March 16, 1997 --------------- (Date of earliest event reported) CITIZENS UTILITIES COMPANY -------------------------------------------------- (Exact name of Registrant as specified in charter) Delaware 001-11001 06-0619596 - ---------------------------- ------------------------ ---------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) High Ridge Park, P.O. Box 3801, Stamford, Connecticut 06905 - ----------------------------------------------------- ----- (Address of principal executive offices) (Zip Code) (203) 329-8800 -------------- (Registrant's telephone number, including area code) No change since last report --------------------------- (Former name or address, if changed since last report) Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. ------------------------------------------------------------------- (c) Exhibits 99 Press release of Citizens Utilities Company released March 16, 1997. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CITIZENS UTILITIES COMPANY -------------------------- Registrant By:/s/ Livingston E. Ross ----------------------------- Vice President and Controller Date: March 18, 1997 EX-99 2 PRESS RELEASE DATED MARCH 16, 1997 For additional information contact: Arthur Dague (203) 329-5094 adague@czn.com CITIZENS UTILITIES REPORTS 12% INCREASES IN EARNINGS AND EARNINGS PER SHARE FOR 1996 Stamford, Connecticut, March 16,1997 -- Citizens Utilities' vice president and treasurer, Bob DeSantis, announced today double-digit increases in earnings and earnings per share for the 1996 fourth quarter and year ended December 31, 1996. For the fourth quarter, revenues grew 17% to $339.3 million over the $290.6 million reported for the corresponding 1995 quarter. Earnings of $47.5 million increased 23% over the earnings of $38.6 million reported for the same period last year. Earnings per share of 20 cents for the fourth quarter increased 25% from 16 cents for the fourth quarter of 1995. For the full year, revenues were up 27% from $1.07 billion in 1995 to $1.31 billion in 1996. Earnings of $178.7 million for 1996 increased 12% over 1995 earnings of $159.5 million. Likewise, Citizens' earnings per share grew 12% from 69 cents in 1995 to 77 cents in 1996. Commenting on these financial results, Mr. DeSantis said, "Citizens' financial performance for 1996 was exceptional across the board, reflecting double-digit increases in revenues and operating income for Citizens Communications and Citizens Public Services. Our primary business, Citizens Communications, experienced revenue growth of 27% and operating income growth of 18%. In particular, long distance service revenues grew significantly in 1996 to $68 million. Citizens Communications' long distance market share in its local network service areas increased to approximately 16% at the end of 1996, making Citizens second to AT&T in long distance market share in these areas. This is an impressive achievement for our first full year as a long distance service provider," Mr. DeSantis noted. "Citizens Public Services posted healthy results as well," added Mr. DeSantis."Revenues increased by 15% and operating income rose by 11% due to strong performances by each of our operations: natural gas distribution, electric distribution, water delivery and wastewater treatment." Mr. DeSantis said that Citizens' 1996 record results represented the Company's 52nd consecutive year of increased revenues, earnings and earnings per share. Citizens Utilities (NYSE: CZNA, CZNB) provides telecommunications and public services to approximately 1.6 million customers in 22 states. Citizens Communications, one of the nation's fastest-growing communications companies, operates an integrated national distribution platform over which it provides local, long distance, paging, cellular, network sales and other communications products and services. Citizens also has investments in Centennial Cellular Corp. (NASDAQ: CYCL) and Hungarian Telephone and Cable Corp. (ASE: HTC) and owns Electric Lightwave, Inc., a leading competitive provider of telecommunications services for business and long distance carriers in the western United States. CITIZENS UTILITIES COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 and 1994 (In thousands, except for per-share amounts) 1996 1995 1994 ---- ---- ---- Revenues: Communications $ 786,307 $ 616,747 $ 456,875 Public Services 520,210 452,285 449,275 --------- --------- --------- Total revenues 1,306,517 1,069,032 906,150 --------- --------- --------- Operating expenses: Operating expenses 413,841 306,734 244,877 Depreciation 193,733 158,935 115,175 Natural gas purchased 127,913 108,385 116,419 Maintenance expenses 101,206 87,255 61,779 Electric energy and fuel oil purchased 93,191 85,168 80,931 Taxes other than income 80,947 68,382 58,845 --------- ---------- --------- Total operating expenses 1,010,831 814,859 678,026 --------- ---------- --------- Income from operations 295,686 254,173 228,124 Investment income 48,972 41,667 40,454 Other income - net 17,483 18,288 12,486 Interest expense 92,695 87,775 72,744 --------- ---------- --------- Income before income taxes 269,446 226,353 208,320 Income taxes 84,937 66,817 64,323 --------- ---------- --------- Income before dividends on convertible preferred securities 184,509 159,536 143,997 Dividends on convertible preferred securities, net of income tax benefit 5,849 0 0 --------- ---------- --------- Net income $ 178,660 $ 159,536 $ 143,997 ========= ========== ========= Earnings per share of Common Stock Series A and Series B $ .77 $ .69 $ .68 Citizens Utilities Company and Subsidiaries Consolidated Financial Data
For the quarter ended For the year ended December 31, December 31, ------------------------------------ -------------------------------- % % (Dollars in thousands) 1996 1995 Change 1996 1995 Change ------------------------------------ ------------------------------------ Income Statement Data Revenues $ 339,292 $ 290,588 17% $ 1,306,517 $1,069,032 22% Natural gas, electric energy and fuel oil purchased 59,273 53,861 10% 221,104 193,553 14% Depreciation 53,258 41,802 27% 193,733 158,935 22% Other operating expenses 150,370 134,726 12% 595,994 462,371 29% Operating income 76,391 60,199 27% 295,686 254,173 16% Investment and other income 20,211 17,857 13% 66,455 59,955 11% Interest expense 25,682 23,034 11% 92,695 87,775 6% Income taxes 21,746 16,389 33% 84,937 66,817 27% Convertible preferred dividends 1,653 - 5,849 - Net income 47,521 38,633 23% 178,660 159,536 12% Cash Flow and Capital Expenditure Data $ 149,860 $ 119,857 25% 555,874 $ 473,063 18% EBITDA (1) Cash flow from operations 156,542 145,040 8% 375,181 338,611 11% Capital expenditures 132,523 91,811 44% 317,763 240,733 32% Free cash flow 24,019 53,229 57,418 97,878
Select Balance Sheet Data Cash and investments $ 563,382 $ 347,012 62% Total assets 4,523,148 3,918,187 15% Net plant 3,138,052 2,908,030 8% Long-term debt 1,509,697 1,187,000 27% Equity (2) 1,879,433 1,559,913 20% Shares of common stock outstanding 239,148 227,587 5% Weighted average shares outstanding (3) 233,364 233,220
(1) Earnings before interest, income taxes, depreciation and amortization. (2) Includes convertible preferred securities. (3) Adjusted for subsequent stock dividends and stock splits and used in the calculation of all per share data. No adjustment has been made for the Company's 1.6% first quarter 1997 stock dividend because the effect is immaterial. Note: Where applicable, Data is shown for the quarters ended December 31, 1996 and 1995. Citizens Utilities Company and Subsidiaries Consolidated Financial Data (continued)
For the quarter ended For the year ended December 31, December 31, ----------------------------------- -------------------------------- % % 1996 1995 Change 1996 1995 Change ----------------------------------- ------------------------------------ Per-Share Data(1) Earnings per share $.20 $.16 25% $.77 $.69 12% Operating cash flow per share $0.66 $0.60 10% $1.61 $1.45 11% Book value per share $7.19 $6.69 7% Market price per share (2) $11.00 $12.00 Market price to earnings ratio 14.3x 17.3x Market price to book ratio 1.5x 1.8x Market price to cash flow ratio 6.8x 8.3x Other Financial Data Return on average shareholders' equity 11% 12% EBITDA margin (3) 44% 41% 43% 44% Debt to total debt and equity 45% 43% Ratio of earnings to fixed charges (4) 3.7x 3.4x Interest coverage (5) 5.8x 5.2x 6.0x 5.4x Common equity market capitalization (in billions) $2.6 $2.9 Equity market capitalization (in billions) (6) $2.8 $2.9 Market capitalization (in billions) (7) $4.4 $4.2
(1) Adjusted for subsequent stock dividends and stock splits and used in the calculation of all per share data. No adjustment has been made for the Company's 1.6% first quarter 1997 stock dividend because the effect is immaterial. (2) Dollar weighted for common stock Series A and Series B. (3) EBITDA divided by revenues. (4) "Earnings" consist of income before income taxes plus fixed charges. "Fixed charges" consist of interest charges and an amount representing the interest factor included in rentals. (5) EBITDA divided by interest expense. (6) Includes market value of convertible preferred securities. (7) Equity market capitalization plus market value of long-term debt. Note: Where applicable, Data is shown for the quarters ended December 31, 1996 and 1995. Citizens Utilities Company and Subsidiaries Sector Financial and Operating Data
For the quarter ended For the year ended December 31, December 31, ---------------------------- ---------------------------- % % (Dollars in thousands, except operating data) 1996 1995 Change 1996 1995 Change ------------------------------------- ------------------------------------ Citizens Communications Select Income Statement Data Revenues Network access services $ 95,086 $ 84,969 12% $ 394,821 $ 343,761 15% Local network services 61,359 52,667 17% 235,043 197,947 19% Long distance service 18,428 10,154 81% 67,634 15,800 328% Directory 7,987 7,053 13% 30,248 24,866 22% Other 11,622 14,207 -18% 58,561 34,373 70% Total revenues 194,482 169,050 15% 786,307 616,747 27% Operating and maintenance expenses 104,526 96,058 9% 426,199 321,943 32% Depreciation 42,405 32,104 32% 153,571 120,608 27% Operating income 47,551 40,888 16% 206,537 174,196 19% Cash Flow and Capital Expenditure Data Operating cash flow (1) $ 89,956 $ 72,992 23% $ 360,108 $ 294,804 22% Capital expenditures 95,221 54,713 74% 225,648 141,062 60% Free cash flow (2) (5,265) 18,279 134,460 153,742 Select Balance Sheet Data Total assets $ 2,412,382 $ 2,097,277 15% Net plant 1,986,233 1,814,454 9% Operating Data Access lines 834,180 776,764 7% Long distance customers - in territory 179,133 47,049 281% - out of territory 40,003 6,785 490% Employees 3,672 3,084 19% (1) Operating income plus depreciation. (2) Operating cash flow less capital expenditures. Note: Where applicable, Data is shown for the quarters ended December 31, 1996 and 1995.
Citizens Utilities Company and Subsidiaries Sector Financial and Operating Data
For the quarter ended For the year ended December 31, December 31, ---------------------------- ---------------------------- % % (Dollars in thousands, except operating data) 1996 1995 Change 1996 1995 Change ------------------------------------- ------------------------------------ Citizens Public Services Select Income Statement Data Revenues Residential $ 77,905 $ 65,897 18% $ 285,626 $ 245,983 16% Commercial 32,833 27,572 19% 119,260 105,045 14% Industrial 25,253 20,722 22% 85,238 75,182 13% Transportation 2,841 1,264 125% 5,519 4,255 30% Other 5,978 6,083 -2% 24,567 21,820 13% Total revenues 144,810 121,538 19% 520,210 452,285 15% Natural gas, electric energy and fuel oil purchased 59,273 53,861 10% 221,104 193,553 14% Operating and maintenance expenses 45,844 38,668 19% 169,795 140,428 21% Depreciation 10,853 9,698 12% 40,162 38,327 5% Operating income 28,840 19,311 49% 89,149 79,977 11% Cash Flow and Capital Expenditure Data Operating cash flow (1) $ 39,693 $ 29,009 37% $ 129,311 $ 118,304 9% Capital expenditures 26,371 37,063 -29% 73,330 89,466 -18% Free cash flow (2) 13,322 (8,054) 55,981 28,838 Select Balance Sheet Data Total assets $ 1,375,562 $ 1,337,780 3% Net plant 1,096,928 1,052,841 4% Operating Data Customers 765,452 749,633 2% Employees 1,519 1,489 2% (1) Operating income plus depreciation. (2) Operating cash flow less capital expenditures. Note: Where applicable, Data is shown for the quarters ended December 31, 1996 and 1995.
Citizens Utilities Company and Subsidiaries Financial and Operating Data by Service
For the quarter ended For the year ended December 31, December 31, ------------------------ -------------------------- % % (Dollars in thousands, except operating data) 1996 1995 Change 1996 1995 Change ---------------------------------- ----------------------------- Citizens Communications Telecommunications Select Income Statement Data Revenues Network access services $ 90,553 $ 81,955 10% $ 379,901 $ 333,516 14% Local network services 60,606 52,341 16% 232,904 197,092 18% Long distance service 17,065 9,660 77% 59,072 14,217 316% Directory 7,987 7,053 13% 30,248 24,866 22% Other 9,130 11,404 -20% 50,084 29,486 70% Total revenues 185,341 162,413 14% 752,209 599,177 26% Operating and maintenance expenses 87,577 87,940 373,683 294,364 27% Depreciation 40,136 30,380 32% 148,022 114,218 30% Operating income 57,628 44,093 31% 230,504 190,595 21% Operating margin 31% 27% 31% 32% Cash Flow and Capital Expenditure Data Operating cash flow (1) $ 97,764 $ 74,473 31% $ 378,526 $ 304,813 24% Capital expenditures 83,760 34,660 142% 184,041 113,657 62% Free cash flow (2) 14,004 39,813 194,485 191,156 Select Balance Sheet Data Total assets $ 2,206,092 $ 1,973,198 12% Net plant 1,843,298 1,702,989 8% Operating Data Access lines 834,180 776,764 7% Long distance customers - in territory 179,133 47,049 281% - out of territory 40,003 6,785 490% Employees 3,290 2,865 15% Access lines per employee 254 271 -6% Employees per 10,000 access lines 39 37 5% Revenue per access line $ 902 771 17% Revenue per employee (in thousands) $ 229 209 10% In-territory toll minutes of use (in millions) 1,100 600 83% 4,300 3,200 34% Citizens' long distance minutes of use (in millions) - in territory 83 25 232% 212 74 186% - out of territory 65 4 174 11 total long distance 148 29 410% 386 85 354% Citizens' in-territory long distance market share 16% 2%
(1) Operating income plus depreciation. (2) Operating cash flow less capital expenditures. Note: Where applicable, Data is shown for the quarters ended December 31, 1996 and 1995. Citizens Utilities Company and Subsidiaries Financial and Operating Data by Service
For the quarter ended For the year ended December 31, December 31, ------------------------ -------------------------- % % (Dollars in thousands, except operating data) 1996 1995 Change 1996 1995 Change ---------------------------------- ----------------------------- Citizens Communications Electric Lightwave, Inc.(1) Select Income Statement Data Revenues Network access services $ 4,533 $ 3,014 50% $ 14,920 $ 10,245 46% Local network services 753 326 131% 2,139 855 150% Long distance service 1,363 494 176% 8,562 1,583 441% Other 2,492 2,803 -11% 8,477 4,887 73% Total revenues 9,141 6,637 38% 34,098 17,570 94% Operating and maintenance expenses 16,949 8,118 109% 52,516 27,579 90% Depreciation 2,269 1,724 32% 5,549 6,390 -13% Operating income (10,077) (3,205) 214% (23,967) (16,399) 46% Cash Flow and Capital Expenditure Data Operating cash flow (2) $ (7,808) $ (1,481) -427% $ (18,418) $ (10,009) -84% Capital expenditures 11,461 20,053 -43% 41,607 27,405 52% Free cash flow (3) (19,269) (21,534) (60,025) (37,414) Select Balance Sheet Data Total assets $ 206,290 $ 124,079 66% Gross plant - owned 156,738 119,975 31% - leased 62,485 43,446 44% - total 219,223 163,421 34% Operating Data Route miles 1,490 780 91% Fiber miles 96,609 52,013 86% Customers 762 402 90% Buildings connected 454 282 61% Employees 382 219 74% Revenue per customer $ 44,748 $ 43,706 2% Revenue per employee $ 89,262 $ 80,228 11%
(1) Electric Lightwave, Inc. is Citizens' Competitive Local Exchange Company. (2) Operating income plus depreciation. (3) Operating cash flow less capital expenditures. Note: Where applicable, Data is shown for the quarters ended December 31, 1996 and 1995. Citizens Public Services Citizens Utilities Company and Subsidiaries Financial and Operating Data by Service
For the quarter ended For the year ended December 31, December 31, ------------------------ -------------------------- % % (Dollars in thousands, except operating data) 1996 1995 Change 1996 1995 Change ---------------------------------- ----------------------------- Citizens Public Services Natural Gas Select Income Statement Data Revenues Residential $ 40,305 $ 31,941 26% $ 134,888 $ 110,146 22% Commercial 14,745 10,998 34% 49,633 40,614 22% Industrial 12,960 10,053 29% 40,230 35,244 14% Transportation 2,841 1,264 125% 5,519 4,255 30% Other 2,283 2,517 -9% 9,349 7,643 22% Total revenues 73,134 56,773 29% 239,619 197,902 21% Natural gas purchased 36,356 33,058 10% 127,913 108,385 18% Gross margin 36,778 23,715 55% 111,706 89,517 25% Operating and maintenance expenses 23,406 14,111 66% 66,997 51,488 30% Depreciation 3,271 3,151 4% 10,953 12,155 -10% Operating income 10,101 6,453 57% 33,756 25,874 30% Operating margin 14% 11% 14% 13% Cash Flow and Capital Expenditure Data Operating cash flow (1) $ 13,372 $ 9,604 39% $ 44,709 $ 38,029 18% Capital expenditures 11,164 11,273 -1% 27,691 28,659 -3% Free cash flow (2) 2,208 (1,669) 17,018 9,370 Select Balance Sheet Data Total assets $ 381,740 344,036 11% Net plant 281,220 261,326 8% Operating Data Customers 371,244 363,293 2% Employees 799 776 3% Customers per employee 465 468 -1% Billion Cubic Feet of gas throughput (BCF) 22.1 23.0 -4% 73.9 83.0 -11%
(1) Operating income plus depreciation. (2) Operating cash flow less capital expenditures. Note: Where applicable, Data is shown for the quarters ended December 31, 1996 and 1995. Citizens Utilities Company and Subsidiaries Financial and Operating Data by Service
For the quarter ended For the year ended December 31, December 31, ------------------------ -------------------------- % % (Dollars in thousands, except operating data) 1996 1995 Change 1996 1995 Change ---------------------------------- ----------------------------- Citizens Public Services Electric Select Income Statement Data Revenues Residential $ 19,536 $ 17,015 15% $ 79,893 $ 72,460 10% Commercial 14,305 13,030 10% 55,826 52,152 7% Industrial 12,059 10,540 14% 44,165 39,362 12% Other 2,929 2,835 3% 12,413 11,377 9% Total revenues 48,829 43,420 12% 192,297 175,351 10% Electric energy and fuel oil purchased 22,917 20,803 10% 93,191 85,168 9% Gross margin 25,912 22,617 15% 99,106 90,183 10% Operating and maintenance expenses 9,164 11,862 -23% 55,583 43,088 29% Depreciation 5,509 4,596 20% 18,718 17,035 10% Operating income 11,239 6,159 82% 24,805 30,060 -17% Operating margin 23% 14% 13% 17% Cash Flow and Capital Expenditure Data Operating cash flow (1) $ 16,748 $ 10,755 56% $ 43,523 $ 47,095 -8% Capital expenditures 6,670 12,027 -45% 24,591 32,849 -25% Free cash flow (2) 10,078 (1,272) 18,932 14,246 Select Balance Sheet Data Total assets $ 482,194 $ 487,893 -1% Net plant 393,475 389,036 1% Operating Data Customers 109,802 107,274 2% Employees 345 342 1% Customers per employee 318 314 1% Megawatt hours sold 401,286 381,692 5% 1,691,384 1,594,814 6% Megawatt hours generated 90,855 87,254 4% 352,261 360,276 -2% Megawatt hours purchased 312,121 305,762 2% 1,395,073 1,331,495 5%
(1) Operating income plus depreciation. (2) Operating cash flow less capital expenditures. Note: Where applicable, Data is shown for the quarters ended December 31, 1996 and 1995. Citizens Utilities Company and Subsidiaries Financial and Operating Data by Service
For the quarter ended For the year ended December 31, December 31, ------------------------ -------------------------- % % (Dollars in thousands, except operating data) 1996 1995 Change 1996 1995 Change ---------------------------------- ----------------------------- Citizens Public Services Water/Wastewater Select Income Statement Data Revenues Residential $ 18,064 $ 16,941 7% $ 70,845 $ 63,377 12% Commercial 3,783 3,544 7% 13,801 12,279 12% Industrial 234 129 81% 843 576 46% Other 766 731 5% 2,805 2,800 Total revenues 22,847 21,345 7% 88,294 79,032 12% Operating and maintenance expenses 13,274 12,695 5% 47,215 45,852 3% Depreciation 2,073 1,951 6% 10,491 9,137 15% Operating income 7,500 6,699 12% 30,588 24,043 27% Operating margin 33% 31% 35% 30% Cash Flow and Capital Expenditure Data Operating cash flow (1) $ 9,573 $ 8,650 11% $ 41,079 $ 33,180 24% Capital expenditures 8,537 13,763 -38% 21,048 27,958 -25% Free cash flow (2) 1,036 (5,113) 20,031 5,222 Select Balance Sheet Data Total assets $ 511,628 $ 505,851 1% Net plant 422,233 402,479 5% Operating Data Customers 284,406 279,066 2% Employees 375 371 1% Customers per employee 758 752 1% Billions of gallons of water delivered 7.4 7.8 -5% 32.5 31.2 4% Billions of gallons of wastewater treated 1.4 1.3 8% 5.6 5.6
(1) Operating income plus depreciation. (2) Operating cash flow less capital expenditures. Note: Where applicable, Data is shown for the quarters ended December 31, 1996 and 1995. -----END PRIVACY-ENHANCED MESSAGE-----