-----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, B5oQpaiw3QDz2qsmS46MHjuoZyqbA8rY8HtOwg05UC22kF4XtKQG1/JBD1rZUmuc w7TBSjRfUGPbVQ14ZamIcA== 0000049816-98-000008.txt : 19980218 0000049816-98-000008.hdr.sgml : 19980218 ACCESSION NUMBER: 0000049816-98-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980213 ITEM INFORMATION: FILED AS OF DATE: 19980213 SROS: CSE SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ILLINOIS POWER CO CENTRAL INDEX KEY: 0000049816 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 370344645 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03004 FILM NUMBER: 98536337 BUSINESS ADDRESS: STREET 1: 500 S 27TH ST STREET 2: C/O HARRIS TRUST & SAVINGS BANK CITY: DECATUR STATE: IL ZIP: 62525-1805 BUSINESS PHONE: 2174246600 FORMER COMPANY: FORMER CONFORMED NAME: ILLINOIS IOWA POWER CO DATE OF NAME CHANGE: 19660822 8-K 1 EARNINGS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report February 13, 1998 Commission Registrants; State of Incorporation; IRS Employer File Number Address; and Telephone Company Identification No. 1-11327 Illinova Corporation 37-1319890 (an Illinois Corporation) 500 S. 27th Street Decatur, IL 62525 (217) 424-6600 1-3004 Illinois Power Company 37-0344645 (an Illinois Corporation) 500 S. 27th Street Decatur, IL 62525 (217) 424-6600 Total number of sequentially numbered pages is 5. -1- Item 5. Other Events - -------------------------- Illinova today announced a loss of $90.4 million, or $1.22 per share (Basic and Diluted), for 1997. This compares to earnings of $190.3 million, or $2.51 per share, for the previous year. 1997's loss reflects an extraordinary charge of $2.63 per share for the write-off of regulatory assets recorded in December. Without these charges, 1997 earnings per share would have been $1.41. Losses for the fourth quarter were $0.46 per share, excluding the fourth-quarter extraordinary item, compared to earnings of $0.26 per share for the fourth quarter of 1996. Mild weather, the outage at the Clinton Power Station (Clinton), and increased purchases of replacement power contributed to the drop in 1997 earnings. Moderate temperatures during both summer and winter lowered earnings by $0.11 per share compared to 1996. Higher expenses accounted for the majority of the earnings decline: $0.27 per share in increased operation and maintenance expense for the outage at Clinton and $0.29 per share in additional expenditures for replacement power due to Clinton's outage. These declines were partially offset by a $0.06 per share earnings increase in gas margins, excluding the effects of weather. The year-end figures do not reflect one component of a fourth-quarter write-off the company announced in the 8-K filed January 8, 1998. Subject to the Securities and Exchange Commission's concurrence, Illinova had intended to accrue approximately $40 million, net of income taxes, in estimated incremental operation and maintenance expenses for a recovery plan to bring Clinton back to full operation. The Commission did not concur with this proposed accounting treatment because it believes such expenses should be recorded in the period in which the operations and maintenance activities are carried out. Please see the attached Illinova Consolidated Statements of Income. -2- 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 thereunto duly authorized. ILLINOVA CORPORATION (Registrant) By /s/ Larry F. Altenbaumer --------------------------- Larry F. Altenbaumer Chief Financial Officer Treasurer and Controller on behalf of Illinova Corporation Date: February 13, 1998 -3- 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 thereunto duly authorized. ILLINOIS POWER COMPANY (Registrant) By /s/ Larry F. Altenbaumer --------------------------- Larry F. Altenbaumer Senior Vice President and Chief Financial Officer on behalf of Illinois Power Company Date: February 13, 1998 -4-
Condensed Consolidated Statements of Income Three Months Ended * Twelve Months Ended December 31, December 31, ------------------------------ ---------------------------- % Change % Change Fav/ Fav/ 1997 1996** (Unfav) 1997 1996** (Unfav) ____ ______ ________ ____ ______ _____ (Millions) (Millions) Operating Revenues Electric $ 266.5 $ 264.5 1 % $ 1,244.4 $ 1,202.9 3% Electric interchange 34.2 28.8 19 175.6 137.6 28 Gas 88.0 124.6 (29) 353.9 348.2 2 Diversified enterprises 165.7 22.8 - 735.6 57.6 - -------- ------- -------- --------- Total 554.4 440.7 26 2,509.5 1,746.3 44 -------- ------- -------- --------- Operating Expenses Fuel for electric plants 68.5 62.2 (10) 232.4 248.1 6 Power purchased 62.3 17.1 - 217.9 65.2 - Gas purchased for resale 67.1 84.0 20 207.7 202.6 (3) Diversified enterprises 179.7 29.9 - 792.3 87.5 - Other operating and maintenance 127.7 101.8 (25) 402.2 349.6 (15) Depreciation and amortization 50.4 45.1 (12) 198.8 190.0 (5) General taxes 28.0 29.3 4 133.8 131.3 (2) -------- ------- -------- --------- Total 583.7 369.4 (58) 2,185.1 1,274.3 (71) -------- ------- -------- --------- Operating Income (Loss) (29.3) 71.3 (141) 324.4 472.0 (31) -------- ------- -------- --------- Other Income and Deductions Miscellaneous - net (1.5) (2.6) 42 (3.9) (9.0) 57 Equity earnings in affiliates 6.4 0.1 - 17.5 6.4 173 -------- ------- -------- --------- Total 4.9 (2.5) - 13.6 (2.6) - -------- ------- -------- --------- Income (Loss) Before Interest Charges and Income (24.4) 68.8 (135) 338.0 469.4 (28) -------- ------- -------- --------- Interest Charges Interest expense 33.8 33.2 (2) 136.8 134.7 (2) Allowance for borrowed funds used during construction (1.6) (1.3) 23 (5.0) (6.5) (23) Preferred dividend requirements of subsidiary 5.1 5.5 7 21.5 22.3 4 -------- ------- -------- --------- Total 37.3 37.4 - 153.3 150.5 (2) -------- ------- -------- --------- Income (Loss) Before Income Taxes (61.7) 31.4 - 184.7 318.9 (42) -------- ------- -------- --------- Income Taxes (27.4) 11.4 - 80.3 127.9 37 -------- ------- -------- --------- Net Income (Loss) Before Extraordinary Item (34.3) 20.0 - 104.4 191.0 (45) Extraordinary Item Net of Income Tax Benefit of $118.0 Million (195.0) - - (195.0) - - -------- ------- -------- --------- Net Income (Loss) (229.3) 20.0 - (90.6) 191.0 (147) Carrying amount over (under) consideration paid for redeemed preferred stock of subsidiary (0.9) 0.1 - 0.2 (0.7) 129 -------- ------- -------- --------- Net Income (Loss) Applicable to Common Stock $ (230.2) $ 20.1 - $ (90.4) $ 190.3 (148) ======== ======= ======== ========= Weighted average common shares 74.0 75.7 - 74.0 75.7 - Earnings (loss) per common shar before extraordinary item (basic and diluted) ($0.46) $0.26 - $1.41 $2.51 (44) Extraordinary item per common share (basic and diluted) ($2.63) $0.00 - ($2.63) $0.00 - - ---------------------------------------------------------------------------------------------- Earnings (loss) per common share (basic and diluted) ($3.09) $0.26 - ($1.22) $2.51 (149) Cash dividends declared $0.00 0 per common share $0.31 $0.31 - $1.24 $1.15 8 $0.00 0 Cash dividends paid per common share $0.31 $0.28 11 $1.24 $1.12 11 $0.03 0
* Unaudited ** Restated to conform to new financial format These statements are submitted as a matter of general information and are not intended to induce, or to be used in connection with, any sale or purchase of securities. These statements should be read in conjunction with Illinova's and Illinois Power Company's 1997 Quarterly Reports on Form 10-Q and Form 8-K filings to the Securities and Exchange Commission, Illinova's 1997 Annual Report to Shareholders (included in the Proxy Statement) and Illinova and Illinois Power Company's 1997 Form 10-K filings to the Securities and Exchange Commission. -5- -----END PRIVACY-ENHANCED MESSAGE-----