-----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, TxZpiYVns1iz8/J6A7f1CzWr648l4iT5N0AsOy+Rkk2t8vkj+kgXYVEbjB2tyitS vODN1G6LZyBUZI0TyWhxpA== 0000071932-98-000048.txt : 19981026 0000071932-98-000048.hdr.sgml : 19981026 ACCESSION NUMBER: 0000071932-98-000048 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981024 ITEM INFORMATION: FILED AS OF DATE: 19981023 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NIAGARA MOHAWK POWER CORP /NY/ CENTRAL INDEX KEY: 0000071932 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 150265555 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-02987 FILM NUMBER: 98730124 BUSINESS ADDRESS: STREET 1: 300 ERIE BLVD W CITY: SYRACUSE STATE: NY ZIP: 13202 BUSINESS PHONE: 3154741511 MAIL ADDRESS: STREET 1: 300 ERIE BLVD W CITY: SYRACUSE STATE: NY ZIP: 13202 FORMER COMPANY: FORMER CONFORMED NAME: CENTRAL NEW YORK POWER CORP DATE OF NAME CHANGE: 19710419 8-K 1 As filed with the Securities and Exchange Commission on October 23, 1998 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 - OCTOBER 23, 1998 NIAGARA MOHAWK POWER CORPORATION -------------------------------- (Exact name of registrant as specified in its charter) State of New York 1-2987 15-0265555 (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification No.) 300 Erie Boulevard West, Syracuse, N.Y. 13202 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 315-474-1511 Item 5. Other Events - --------------------- (a) On October 23, 1998, the Company issued a press release regarding earnings for the third quarter of 1998. See attached Exhibit 99. Item 7. Financial Statements and Exhibits - ------------------------------------------ (c) Exhibits - Following is the list of Exhibits furnished in accordance with the provisions of Item 601 of Regulation S-K, filed as part of this current report on Form 8-K. Exhibit No. 99 - Press release of registrant issued on October 23, 1998 relating to earnings of the Company for the third quarter of 1998. NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES SIGNATURE --------- 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. NIAGARA MOHAWK POWER CORPORATION -------------------------------- (Registrant) Date: October 23, 1998 By /s/ Steven W. Tasker ______________________________________ Steven W. Tasker Vice President-Controller and Principal Accounting Officer, in his respective capacities as such EXHIBIT INDEX ------------- Following is the index of Exhibits furnished in accordance with the provisions of Item 601 of Regulation S-K, filed as part of this current report on Form 8-K. Exhibit No. 99 - Press release of registrant issued on October 23, 1998 relating to earnings of the Company for the third quarter of 1998. EX-99 2 NIAGARA MOHAWK REPORTS THIRD-QUARTER EARNINGS DECLARES PREFERRED STOCK DIVIDENDS SYRACUSE, October 23 -- Niagara Mohawk Power Corp. (NYSE: NMK) today reported 1998 third-quarter earnings of $8.5 million, or 5 cents per share, compared to 1997 third-quarter earnings of $22.3 million, or 15 cents per share. The company also reported that at a regularly scheduled meeting yesterday its Board of Directors declared dividends for all series of preferred stock. Earnings for the third quarter 1998 were lower than last year's third-quarter earnings primarily as a result of the impact of the amortization of the Master Restructuring Agreement (MRA) regulatory asset and higher interest charges due to the new debt issued in connection with the MRA, offset in part by a reduction in electricity purchased. The earnings impact of the MRA and POWERCHOICE became effective on September 1, 1998. Earnings for the third quarter 1998 were also lower as a result of expenses incurred during a severe Labor Day storm. For the 12 months ended September 30, 1998, the company reported a loss of $132.3 million, or a loss of 85 cents per share, compared with earnings of $112.0 million, or 78 cents per share for the 12 months ended September 30, 1997. The 12-month period ended September 30, 1998, reflects the impact of $263.2 million pre-tax, or $1.18 per share, non-cash charge to earnings in the second quarter related to the closing of the MRA in June 1998. In addition, earnings per share for the third quarter and the 12 months ended September 30, 1998, were diluted by the issuance of 42.9 million shares of common stock in connection with the MRA. The MRA allowed Niagara Mohawk to terminate, restate or amend 27 government-mandated IPP contracts, reducing the company's IPP payments by more than $500 million annually. The improved cash flow will assist the company in reducing electricity prices for all customers and pay off the debt required to finance the MRA over a six - to seven-year period. In addition to the non-cash charge related to the MRA, earnings in the 12 months ended September 30, 1998, were lower due to the cost of the January 1998 ice storm and Labor Day 1998 wind storm, amortization of the MRA regulatory asset and higher interest charges due to the MRA debt, offset in part by lower electricity purchased. Earnings for the 12-month period ended September 30, 1997, included a December 1996 after-tax extraordinary write-off of $67.4 million or 47 cents per share, associated with the discontinued application of regulatory accounting principles to the company's fossil and hydro generation business. Excluding the extraordinary write-off, earnings for the 12 months ended September 30, 1997, were $217.0 million, or $1.25 per share. Earnings for the 12 months ended September 30, 1997, also reflected a $15 million after-tax gain, or 10 cents per share, in the fourth quarter of 1996 on the sale of a 50-percent interest in Canadian Niagara Power Company. Retail sales of electricity were up 0.3 percent in the third quarter 1998, due primarily to increased sales to residential and commercial customers. Total electricity sales, however, decreased 2.6 percent, as wholesale sales for the quarter were down 28.9 percent. Retail sales of electricity for the year ended September 30, 1998, were down 0.6 percent, and total electricity sales decreased 2.4 percent. Electric revenues for the third quarter 1998 were $859.6 million, 3.9 percent higher than third-quarter 1997 electric revenues of $827.7 million, primarily due to an increase in revenues from the delivery of energy for resale. For the 12 months ended September 30, 1998, electric revenues decreased 0.8 percent, compared to revenues for the 12 months ended September 30, 1997. Retail sales of natural gas decreased 7.4 percent in the third quarter of 1998 reflecting decreases in all customer classes. Total gas deliveries, which include the transportation of customer-owned gas, were down 13.5 percent. For the 12 months ended September 30, 1998, retail sales of natural gas decreased 12.1 percent, while total gas deliveries were down 8.8 percent. Natural gas revenues for the third-quarter 1998 were $71.0 million, up 3.1 percent from a year earlier, due primarily to an increase in revenues from sales for resale on the spot market. Gas revenues for the 12 months ended September 30, 1998, were down 7.6 percent. Dividends were declared at the prescribed rates for all series of preferred stock. The fourth-quarter dividend rate per annum for the adjustable rate preferred stock Series A is 6.50 percent; Series B is 7.50 percent; and Series C is 7.00 percent. These rates equate to payments of $0.40625; $0.46875; and $0.4375 per share, respectively. Preferred dividends are payable December 31 to holders of record December 7, 1998. Consolidated Statements of Income and Selected Operating Information will be filed today with the Securities and Exchange Commission on Form 8-K. NOTE: This release contains statements that constitute forward-looking information. Such statements are subject to certain risks, uncertainties and assumptions. All of these forward-looking statements are based on estimates and assumptions made by the company's management which, although believed by the company's management to be reasonable, are inherently uncertain. Such forward-looking statements are not guarantees of future performance or results and involve certain risks and uncertainties. Actual results or developments may differ materially from the forward-looking statements as a result of various factors.
NIAGARA MOHAWK POWER CORPORATION THIRD QUARTER REPORT CONSOLIDATED STATEMENTS OF INCOME Niagara Mohawk Power Corporation and Subsidiary Companies (Unaudited) In thousands of dollars Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 1998 1997 1998 1997 1998 1997 ---- ---- ---- ---- ---- ---- OPERATING REVENUES: Electric. . . . . . . . . . . . . . . . . $859,597 $827,697 $2,506,048 $2,509,603 $3,305,886 $3,333,618 Gas . . . . . . . . . . . . . . . . . . . 71,034 68,873 433,893 496,497 594,359 643,588 -------- -------- ----------- ---------- ----------- ----------- 930,631 896,570 2,939,941 3,006,100 3,900,245 3,977,206 -------- -------- ----------- ---------- ----------- ----------- OPERATING EXPENSES: Fuel for electric generation. . . . . . . 80,045 54,674 178,433 127,331 230,557 167,187 Electricity purchased . . . . . . . . . . 240,068 293,324 866,677 939,125 1,163,660 1,247,567 Gas purchased . . . . . . . . . . . . . . 39,760 41,625 216,372 253,180 308,802 326,555 Other operation and maintenance expenses. 223,481 198,805 697,787 605,262 927,807 839,884 Amortization of the MRA regulatory asset. 32,184 - 32,184 - 32,184 - POWERCHOICE charge. . . . . . . . . . . . - - 263,227 - 263,227 - Depreciation and amortization . . . . . . 88,767 85,148 264,540 254,169 350,012 337,315 Other taxes . . . . . . . . . . . . . . . 116,039 112,820 356,961 354,218 474,212 468,051 -------- -------- ----------- ---------- ----------- ----------- 820,344 786,396 2,876,181 2,533,285 3,750,461 3,386,559 -------- -------- ----------- ---------- ----------- ----------- OPERATING INCOME. . . . . . . . . . . . . 110,287 110,174 63,760 472,815 149,784 590,647 Other income. . . . . . . . . . . . . . . 45,024 7,484 47,620 20,853 51,764 41,111 -------- -------- ----------- ---------- ----------- ----------- INCOME BEFORE INTEREST CHARGES. . . . . . 155,311 117,658 111,380 493,668 201,548 631,758 Interest charges. . . . . . . . . . . . . 133,658 68,380 265,109 205,260 333,755 274,078 -------- -------- ----------- ---------- ----------- ----------- INCOME (LOSS) BEFORE FEDERAL & FOREIGN INCOME TAXES. . . . . . . . . . . 21,653 49,278 (153,729) 288,408 (132,207) 357,680 Federal & foreign income taxes. . . . . . 4,000 17,595 (50,337) 112,954 (36,696) 140,670 -------- -------- ----------- ---------- ----------- ----------- INCOME (LOSS) BEFORE EXTRAORDINARY ITEM . . . . . . . . 17,653 31,683 (103,392) 175,454 (95,511) 217,010 Extraordinary item for the discontinuance of regulatory accounting principles, net of income taxes of $36,273 . . . . . . . . . - - - - - (67,364) -------- -------- ----------- ---------- ----------- ----------- NET INCOME (LOSS) . . . . . . . . . . . . 17,653 31,683 (103,392) 175,454 (95,511) 149,646 Dividends on preferred stock. . . . . . . 9,137 9,353 27,531 28,161 36,767 37,682 -------- -------- ----------- ---------- ----------- ----------- BALANCE AVAILABLE FOR COMMON STOCK. . . . $ 8,516 $ 22,330 ($130,923) $ 147,293 ($132,278) $ 111,964 ======== ======== =========== ========== =========== =========== AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING (IN THOUSANDS). . . . . 187,365 144,417 159,049 144,399 155,362 144,391 BASIC AND DILUTED EARNINGS (LOSS) PER AVERAGE SHARE OF COMMON STOCK BEFORE EXTRAORDINARY ITEM . . . . . $ 0.05 $ 0.15 ($0.82) $ 1.02 ($0.85) $ 1.25 EXTRAORDINARY ITEM. . . . . . . . . . . . - - - - - ($0.47) -------- -------- ----------- ---------- ----------- ----------- BASIC AND DILUTED EARNINGS (LOSS) PER AVERAGE SHARE OF COMMON STOCK. . . . . . . . . . . . . . . $ 0.05 $ 0.15 ($0.82) $ 1.02 ($0.85) $ 0.78 ======== ======== =========== ========== =========== =========== OTHER OPERATING DATA: Earnings before interest charges, interest income, income taxes, depreciation and amortization, and other regulatory adjustments (EBITDA) . . . . . $329,450 - $ 720,320 - $ 881,757 - Net cash interest . . . . . . . . . . . . $125,256 - $ 231,381 - $ 287,000 - Ratio of EBITDA to net cash interest. . . 2.6 - 3.1 - 3.1 - -------- -------- ----------- ---------- ----------- ----------- NOTES: * The above information is not given in connection with any sale or offer to sell or buy any stock or security. * The Company files periodic reports pursuant to the Securities Exchange Act of 1934. Accordingly, with respect to the financial information set forth above, you are requested to refer to such filings for more detailed information.
NIAGARA MOHAWK POWER CORPORATION THIRD QUARTER REPORT SELECTED OPERATING & FINANCIAL INFORMATION Niagara Mohawk Power Corporation and Subsidiary Companies (Unaudited) ELECTRIC OPERATIONS SALES (MILLIONS OF KWH) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, % % % 1998 1997 Change 1998 1997 Change 1998 1997 Change ---- ---- ------- ---- ---- ------- ---- ---- ------- Residential . . . . . . . . 2,429 2,348 3.4 7,358 7,574 (2.9) 9,689 9,916 (2.3) Commercial. . . . . . . . . 3,166 2,999 5.6 8,824 8,737 1.0 11,639 11,511 1.1 Industrial. . . . . . . . . 1,719 1,900 (9.5) 5,186 5,413 (4.2) 6,964 7,187 (3.1) Industrial - Special. . . . 1,088 1,135 (4.1) 3,378 3,341 1.1 4,544 4,437 2.4 Other . . . . . . . . . . . 53 51 3.9 172 165 4.2 242 233 3.9 --------- --------- ---------- --------- --------- ---------- ------ ------ ------ TOTAL TO ULTIMATE CUSTOMERS 8,455 8,433 0.3 24,918 25,230 (1.2) 33,078 33,284 (0.6) Sales for resale. . . . . . 663 932 (28.9) 3,082 3,066 0.5 3,762 4,446 (15.4) --------- --------- ---------- --------- --------- ---------- ------ ------ ------ TOTAL SALES . . . . . . . . 9,118 9,365 (2.6) 28,000 28,296 (1.0) 36,840 37,730 (2.4) --------- --------- ---------- --------- --------- ---------- ------ ------ ------ Peak load - MW. . . . . . . 5,928 6,348 (6.6) 5,928 6,348 (6.6) 5,928 6,348 (6.6) Peak load - Date. . . . . . 7/16/1998 7/15/1997 7/16/1998 7/15/1997 7/16/1998 7/15/1997
GAS OPERATIONS SALES (THOUSANDS OF DEKATHERMS) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, % % % 1998 1997 Change 1998 1997 Change 1998 1997 Change ---- ---- ------- ---- ---- ------- ---- ---- ------- Residential. . . . . . . . . . . . . 3,038 3,244 (6.4) 36,828 42,409 (13.2) 49,622 54,445 (8.9) Commercial . . . . . . . . . . . . . 1,296 1,429 (9.3) 13,443 16,947 (20.7) 18,565 22,400 (17.1) Industrial . . . . . . . . . . . . . 92 107 (14.0) 589 1,154 (49.0) 816 1,623 (49.7) ------ ------ ------ ------- ------- ------ ------- ------- ------ TOTAL TO ULTIMATE CUSTOMERS. . . . . 4,426 4,780 (7.4) 50,860 60,510 (15.9) 69,003 78,468 (12.1) Transportation of customer-owned gas 28,423 36,033 (21.1) 101,999 113,333 (10.0) 141,507 152,047 (6.9) Spot market sales. . . . . . . . . . 2,714 316 758.9 4,104 3,053 34.4 3,502 4,214 (16.9) ------ ------ ------ ------- ------- ------ ------- ------- ------ TOTAL GAS DELIVERED. . . . . . . . . 35,563 41,129 (13.5) 156,963 176,896 (11.3) 214,012 234,729 (8.8) ------ ------ ------ ------- ------- ------ ------- ------- ------ Degree days - Actual . . . . . . . . . . . . . 129 171 (24.6) 3,676 4,412 (16.7) 6,106 6,723 (9.2) Normal . . . . . . . . . . . . . 166 166 4,477 4,477 6,803 6,803
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES (Unaudited) EARNINGS REPORT (IN THOUSANDS OF DOLLARS) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 1998 1997 1998 1997 1998 1997 ----- ----- ----- ----- ----- ----- Operating Revenues. . . . . . . . . . . . $930,631 $896,570 $2,939,941 $3,006,100 $3,900,245 $3,977,206 Operating Income. . . . . . . . . . . . . 110,287 110,174 63,760 472,815 149,784 590,647 Income (Loss) Before Extraordinary Item . 17,653 31,683 (103,392) 175,454 (95,511) 217,010 Extraordinary Item for Discontinuance of SFAS No. 71 (Net) . . . . . . . . - - - - - (67,364) Net Income (Loss) . . . . . . . . . . . . 17,653 31,683 (103,392) 175,454 (95,511) 149,646 Balance Available for Common Stock. . . . $ 8,516 $ 22,330 $ (130,923) $ 147,293 $ (132,278) $ 111,964 Average Number of Shares of Common Stock Outstanding (in thousands) . . 187,365 144,417 159,049 144,399 155,362 144,391 Basic and Diluted Earnings (Loss) per Average Share of Common Stock After Extraordinary Item . . . . . . . . . $ 0.05 $ 0.15 $ (0.82) $ 1.02 $ (0.85) $ 0.78 EBITDA. . . . . . . . . . . . . . . . . . $329,450 - $ 720,320 - $ 881,757 - Net Cash Interest . . . . . . . . . . . . $125,256 - $ 231,381 - $ 287,000 - Ratio of EBITDA to Net Cash Interest. . . 2.6 - 3.1 - 3.1 - Note 1: The above information is not given in connection with any sale or offer to sell or buy any stock or security. Note 2: The company files periodic reports pursuant to the Securities Exchange Act of 1934. Accordingly, with respect to the financial information set forth above, you are requested to refer to such filings for more detailed information.
-----END PRIVACY-ENHANCED MESSAGE-----