-----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, En5ZU4zNZwJHtsCUBW7k99fq5IjD9WwQX3RSFcgBOrKJo/66V0FTM+hRu6s1IpM8 hlD1/Yh2sknbR7kFfIAl/Q== 0000075594-95-000016.txt : 19951106 0000075594-95-000016.hdr.sgml : 19951106 ACCESSION NUMBER: 0000075594-95-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951026 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19951103 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACIFICORP /OR/ CENTRAL INDEX KEY: 0000075594 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 930246090 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05152 FILM NUMBER: 95586912 BUSINESS ADDRESS: STREET 1: 700 NE MULTNOMAH STE 1600 CITY: PORTLAND STATE: OR ZIP: 97232 BUSINESS PHONE: 5037312000 FORMER COMPANY: FORMER CONFORMED NAME: PACIFICORP /ME/ DATE OF NAME CHANGE: 19890628 FORMER COMPANY: FORMER CONFORMED NAME: PC/UP&L MERGING CORP DATE OF NAME CHANGE: 19890628 8-K 1 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 (date of earliest event reported): October 26, 1995 PACIFICORP (Exact name of registrant as specified in its charter) State of Oregon 1-5152 93-0246090 (State of Incorporation) (Commission (I.R.S. Employer File No.) Identification No.) 700 N.E. Multnomah, Suite 1600, Portland, Oregon 97232-4116 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (503) 731-2000 No Change (Former Name or Former Address, if changed since last report) Item 5. OTHER EVENTS Information contained in the news release of PacifiCorp issued on October 26, 1994 is incorporated herein by reference. Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS c) Exhibit 99. PacifiCorp news release issued October 26, 1995. 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. PACIFICORP (Registrant) By: Richard T. O'Brien Senior Vice President and Chief Financial Officer Date: November 2, 1995 EX-99 2 Chris Hunter (503) 731-2090 EXHIBIT 99 Scott Hibbs (503) 731-2123 FOR IMMEDIATE RELEASE..BUSINESS & FINANCIAL EDITORS..OCTOBER 26, 1995 PACIFICORP REPORTS THIRD QUARTER 1995 EARNINGS PacifiCorp (NYSE: PPW) today reported third quarter 1995 earnings on common stock of $159 million, or $0.56 per share, compared to $122 million, or $0.43 per share, for the same quarter a year ago. Included in 1995 results is an after-tax gain of $37 million, or $0.13 per share, relating to the completion of the sale of the Alaskan long-distance operations of the company's telecommunications subsidiary, Pacific Telecom, Inc. (PTI). Earnings in the current quarter also benefitted from gains on asset sales at the company's financial services subsidiary, which contributed $0.03 per share. Earnings in the third quarter of 1994 included gains from the sale of sulfur dioxide emission allowances, which contributed $0.02 per share, and the resolution of past cost study issues associated with the announcement of the sale of the Alaskan long-distance telephone operations of PTI, which contributed $0.03 per share. Fred Buckman, President and Chief Executive Officer, said, "The Company's earnings trend for 1995 remains flat, in the face of continuing weak wholesale energy prices and weather-related reductions in electric sales. We continue to aggressively manage fuel costs in our electric operations and take other prudent cost-reduction steps to help improve 1995 earnings. We also continue actively pursuing strategic opportunities related to our core competencies, both domestically and abroad, that we expect will enhance the earnings outlook for 1996 and beyond." THIRD QUARTER 1995 EARNINGS ANALYSIS ELECTRIC OPERATIONS Revenues Third quarter revenues decreased $12 million, or 2 percent, from the third quarter of last year, to $668 million. Retail revenues declined $5 million, or 1 percent, to $508 million. Residential revenues were flat at $158 million, with the effect of a 1.4 percent increase in the average number of customers being offset by the sale of the company's Sandpoint, Idaho distribution facilities in December, 1994, and by lower average prices resulting from changes in customer mix. Commercial revenues increased $3 million to $150 million on the strength of a 1.4 percent increase in average number of customers and increased customer usage. The sale of the company's Sandpoint, Idaho distribution facilities and weather-related reductions partially offset these increases. Industrial sales declined $8 million to $191 million primarily as the result of a $7 million decrease associated with permanent oil and gas well closures in Wyoming. Wholesale revenues declined $6 million, or 4 percent, to $145 million. Lower short-term and spot market sales prices and volumes reduced wholesale revenues by $7 million and $9 million, respectively. Partially offsetting these declines were increases in prices and volumes under the company's existing long-term wholesale contracts totalling $3 million and new long-term firm contracts, which contributed $7 million. Sales to new wholesale customers include traditional capacity and energy sales, as well as sales of ancillary services. The company's wholesale sales mix for the quarter was 76 percent long-term firm sales and 24 percent short-term and spot market sales. Operating Expenses Operating expenses decreased $20 million, or 4 percent, from the third quarter of last year. Reductions in fuel and purchased power costs totalling $17 million accounted for most of the decline. Thermal generation declined 569,000 mWh, or 4 percent. This was a result of reduced retail demand, an abundance of lower-cost purchased power alternatives in the spot market and a 174,000 mWh increase in hydro production at company-owned facilities. Other operating expenses declined $7 million in the quarter primarily due to reduced employee incentive plan accruals. Depreciation and amortization increased $5 million, or 6 percent, primarily due to additional plant in service. Earnings Contribution Earnings contribution at Electric Operations increased $1 million to $88 million. Income from operations increased $8 million, or 4 percent. Interest expense was up $3 million, or 4 percent, in the quarter due primarily to higher debt balances. Income taxes increased $2 million due to higher pre-tax income and an increase in the effective tax rate associated with the reversal of deductions flowed through to retail electric customers in prior years. TELECOMMUNICATIONS Revenues Revenues declined $51 million, or 26 percent, from the third quarter of last year, to $144 million. The sale of PTI's Alaskan long- distance operations (Alascom) in August, 1995, resulted in a revenue decline of $75 million that included the $19 million effect of settlement revenues in 1994 relating to past cost study issues. Partially offsetting this decline was $15 million of revenues from the Colorado local exchange operations purchased from US WEST in February, 1995. Increased revenues from PTI's cellular operations and existing local exchange operations totalling $8 million also helped offset the loss of Alascom revenues. Exclusive of acquisitions, the company's local exchange access lines grew 5 percent over the comparable quarter of 1994. Operating Expenses Operating expenses declined $35 million, or 25 percent, to $104 million. The sale of Alascom reduced operating expenses by $46 million. Operating expenses of $8 million from the new Colorado local exchange operations partially offset the decline. Earnings Contribution Earnings contribution increased $27 million, to $53 million. The gain on the sale of Alascom totalled $37 million. Excluding the effect of the Alascom gain and its earnings contribution, PTI's contribution increased $5 million, primarily due to the acquisition of local exchange properties in Colorado. In September and October, 1995, PTI announced the completion of acquisitions of local exchange properties in Oregon and Washington from US WEST. These acquisitions add 36,000 access lines. OTHER Earnings contribution increased $9 million as a result of gains on asset sales at the company's financial services subsidiary. The average number of common shares outstanding was 284 million for the quarter. The company is using open market purchases for its dividend reinvestment and employee stock ownership plans. PacifiCorp and its Consolidated Subsidiaries Summary Financial Information (In Thousands, Except Per Share Amounts) (Unaudited)
3 Months Ended September 30 $ % 1995 1994 Change Change - ------------------------------------------------------------------------------------ REVENUES Electric $ 668,100 $ 679,900 $ (11,800) (2) Telecommunications 143,500 194,500 (51,000) (26) Other (1) 38,100 40,600 (2,500) (6) ----------------------------------------------- TOTAL 849,700 915,000 (65,300) (7) ----------------------------------------------- EXPENSES Electric Fuel 122,900 132,100 (9,200) (7) Purchased power 72,100 80,300 (8,200) (10) Depreciation and amortization 80,400 75,600 4,800 6 Other 177,100 184,400 (7,300) (4) ----------------------------------------------- TOTAL 452,500 472,400 (19,900) (4) Telecommunications 104,300 139,500 (35,200) (25) Other (1)(2) 8,500 31,200 (22,700) (73) ----------------------------------------------- TOTAL 565,300 643,100 (77,800) (12) ----------------------------------------------- INCOME FROM OPERATIONS Electric 215,600 207,500 8,100 4 Telecommunications 39,200 55,000 (15,800) (29) Other (1)(2) 29,600 9,400 20,200 * ----------------------------------------------- TOTAL 284,400 271,900 12,500 5 Interest expense (2) 83,200 82,600 600 1 Minority interest and other (49,900) (14,500) (35,400) * ----------------------------------------------- Income before income taxes 251,100 203,800 47,300 23 Income taxes 82,100 72,000 10,100 14 ----------------------------------------------- NET INCOME $ 169,000 $ 131,800 $ 37,200 28 Preferred dividend requirement 10,100 10,000 100 1 ----------------------------------------------- EARNINGS CONTRIBUTION ON COMMON STOCK (3) Electric $ 88,100 $ 87,400 $ 700 1 Telecommunications 52,900 25,700 27,200 106 Other (1) 17,900 8,700 9,200 106 ----------------------------------------------- TOTAL $ 158,900 $ 121,800 $ 37,100 30 =============================================== Average common shares outstanding 284,277 283,503 774 - EARNINGS PER COMMON SHARE Electric $ 0.31 $ 0.31 $ - - Telecommunications 0.19 0.09 0.10 111 Other (1) 0.06 0.03 0.03 100 ----------------------------------------------- TOTAL $ 0.56 $ 0.43 $ 0.13 30 =============================================== Dividends paid per common share $ 0.27 $ 0.27 $ - - =============================================== * Not a meaningful number (See accompanying notes on page 11)
-7- PacifiCorp and its Consolidated Subsidiaries Summary Financial Information (Unaudited)
3 Months Ended September 30 % 1995 1994 Change Change - ------------------------------------------------------------------------------------ ELECTRIC REVENUES (In thousands) Residential $ 158,100 $ 158,100 $ - - Commercial 150,300 147,300 3,000 2 Industrial 191,300 199,000 (7,700) (4) Other 7,800 8,000 (200) (3) ----------------------------------------------- Retail Sales 507,500 512,400 (4,900) (1) Wholesale sales 144,700 150,600 (5,900) (4) Other 15,900 16,900 (1,000) (6) ----------------------------------------------- TOTAL $ 668,100 $ 679,900 $ (11,800) (2) =============================================== ENERGY SALES (Millions of kWh) Residential 2,594 2,604 (10) - Commercial 2,870 2,828 42 1 Industrial 5,446 5,633 (187) (3) Other 156 165 (9) (5) ----------------------------------------------- Retail Sales 11,066 11,230 (164) (1) Wholesale sales 4,348 4,363 (15) - ----------------------------------------------- TOTAL 15,414 15,593 (179) (1) =============================================== (See accompanying notes on page 11)
-8- PacifiCorp and its Consolidated Subsidiaries Summary Financial Information (In Thousands, Except Per Share Amounts) (Unaudited)
9 Months Ended September 30 $ % 1995 1994 Change Change - ------------------------------------------------------------------------------------ REVENUES Electric $ 1,909,500 $ 1,946,600 $ (37,100) (2) Telecommunications 517,500 530,800 (13,300) (3) Other (1) 84,800 139,000 (54,200) (39) ----------------------------------------------- TOTAL 2,511,800 2,616,400 (104,600) (4) ----------------------------------------------- EXPENSES Electric Fuel 326,400 365,400 (39,000) (11) Purchased power 214,700 225,700 (11,000) (5) Depreciation and amortization 239,500 224,600 14,900 7 Other 544,800 548,600 (3,800) (1) ----------------------------------------------- TOTAL 1,325,400 1,364,300 (38,900) (3) Telecommunications 392,700 406,400 (13,700) (3) Other (1)(2) 27,300 104,100 (76,800) (74) ----------------------------------------------- TOTAL 1,745,400 1,874,800 (129,400) (7) ----------------------------------------------- INCOME FROM OPERATIONS Electric 584,100 582,300 1,800 - Telecommunications 124,800 124,400 400 - Other (1)(2) 57,500 34,900 22,600 65 ----------------------------------------------- TOTAL 766,400 741,600 24,800 3 Interest expense (2) 282,200 250,300 31,900 13 Minority interest and other (68,200) (33,700) (34,500) (102) ----------------------------------------------- Income before income taxes 552,400 525,000 27,400 5 Income taxes 175,100 183,400 (8,300) (5) ----------------------------------------------- NET INCOME $ 377,300 $ 341,600 $ 35,700 10 Preferred dividend requirement 30,400 29,700 700 2 ----------------------------------------------- EARNINGS CONTRIBUTION ON COMMON STOCK (3) Electric $ 191,300 $ 233,200 $ (41,900) (18) Telecommunications 85,000 54,600 30,400 56 Other (1) 70,600 24,100 46,500 * ----------------------------------------------- TOTAL $ 346,900 $ 311,900 $ 35,000 11 =============================================== Average common shares outstanding 284,271 282,473 1,798 1 EARNINGS PER COMMON SHARE Electric $ 0.67 $ 0.83 $ (0.16) (19) Telecommunications 0.30 0.19 0.11 58 Other (1) 0.25 0.08 0.17 * ----------------------------------------------- TOTAL $ 1.22 $ 1.10 $ 0.12 11 =============================================== Dividends paid per common share $ 0.81 $ 0.81 $ - - =============================================== * Not a meaningful number. (See accompanying notes on page 11)
-9- PacifiCorp and its Consolidated Subsidiaries Summary Financial Information (Unaudited)
9 Months Ended September 30 % 1995 1994 Change Change - ------------------------------------------------------------------------------------ ELECTRIC REVENUES (In thousands) Residential $ 516,100 $ 511,800 $ 4,300 1 Commercial 427,200 421,600 5,600 1 Industrial 528,500 553,700 (25,200) (5) Other 22,500 23,100 (600) (3) ----------------------------------------------- Retail Sales 1,494,300 1,510,200 (15,900) (1) Wholesale sales 370,200 392,300 (22,100) (6) Other 45,000 44,100 900 2 ----------------------------------------------- TOTAL $ 1,909,500 $ 1,946,600 $ (37,100) (2) =============================================== ENERGY SALES (Millions of kWh) Residential 8,662 8,580 82 1 Commercial 8,018 7,893 125 2 Industrial 15,002 15,575 (573) (4) Other 447 470 (23) (5) ----------------------------------------------- Retail Sales 32,129 32,518 (389) (1) Wholesale sales 10,872 11,314 (442) (4) ----------------------------------------------- TOTAL 43,001 43,832 (831) (2) =============================================== September December $ % 1995 1994 Change Change ----------------------------------------------- CONSOLIDATED CAPITALIZATION Common equity $ 3,587,000 $ 3,460,000 $ 127,000 4 Preferred stock 586,000 586,000 - - Long-term debt and capital lease obligations 3,707,000 3,768,000 (61,000) (2) Short-term debt 683,000 551,000 132,000 24 ----------------------------------------------- TOTAL $ 8,563,000 $ 8,365,000 $ 198,000 2 =============================================== (See accompanying notes on page 11)
-10- PacifiCorp and its Consolidated Subsidiaries Summary Financial Information (Unaudited) (1) Other includes the operations of PacifiCorp Financial Services, Inc. and independent power production, as well as the activities of PacifiCorp Holdings, Inc. (2) Certain amounts from the prior year have been reclassified to conform with the 1995 method of presentation. Finance interest of $6.5 million and $23.5 million in the three- and nine-month periods ended September 30, 1994, respectively, was reclassified from operating expenses to interest expense. Reclassifications had no effect on previously reported consoli- dated net income. (3) Earnings contribution on common stock by segment: (a) Does not reflect elimination for interest on intercompany borrowing arrangements. (b) Includes income taxes on a separate company basis, with any benefit or detriment of consolidation reflected in Other. (c) Amounts are net of preferred dividend requirements and minority interest. -11- ### -----END PRIVACY-ENHANCED MESSAGE-----