-----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, T6KcUQdnfGOkJt0QHRPj2g9Vqh+y/s/7fGGkYND3AeYqzvo9loGRduln8IVMl3bX Bw9m7TqV0aKBstCYZJ/gRg== 0000899652-99-000010.txt : 19990129 0000899652-99-000010.hdr.sgml : 19990129 ACCESSION NUMBER: 0000899652-99-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CINERGY CORP CENTRAL INDEX KEY: 0000899652 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 311385023 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11377 FILM NUMBER: 99515625 BUSINESS ADDRESS: STREET 1: 139 E FOURTH ST CITY: CINCINNATI STATE: OH ZIP: 45202 BUSINESS PHONE: 5134219500 MAIL ADDRESS: STREET 1: 139 E FOURTH STREET CITY: CINCINATI STATE: OH ZIP: 45202 8-K 1 FORM 8-K CURRENT REPORT--ANNUAL EARNINGS 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): December 31, 1998 Cinergy Corp. (Exact name of registrant as specified in its charter) Delaware 1-11377 31-1385023 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 139 East Fourth Street, Cincinnati, OH 45202 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (513) 421-9500 ITEM 5. OTHER EVENTS. Reference is made to the press release of Cinergy Corp., dated January 28, 1999, reporting annual consolidated earnings of Cinergy Corp., which is attached hereto as Exhibit 99 and incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. The following exhibit is filed herewith: Exhibit Designation Nature of Exhibit 99 Press release of Cinergy Corp., dated January 28, 1999 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. Cinergy Corp. (Registrant) Date: January 28, 1999 By: /s/ John P. Steffen --------------------------------- John P. Steffen Vice President and Comptroller (Signature) EXHIBIT 99 News contact: Steve Brash 513-287-2226 (w) 513-231-6895 (h) Angeline Protogere 317-838-1338 (w) 317-298-3090 (h) Investor contact: Felicia Ferguson 513-287-4348 Website: www.cinergy.com FOR IMMEDIATE RELEASE - January 28, 1999 CINERGY REPORTS ANNUAL EARNINGS CINCINNATI - Cinergy Corp. (NYSE:CIN) announced today consolidated annual 1998 earnings per share of $1.65, which reflects a reduction of $.14 per share for the effects of milder than normal weather, a charge of $.32 per share related to a previously reported settlement with Wabash Valley Power Association and total charges of $.54 per share in its power marketing and trading business for the establishment of net trading liabilities. Earnings of $1.65 per share in 1998 compared with $1.59 per share in 1997. Earnings in 1997 reflected a one-time extraordinary charge of $.69 per share for the windfall profits tax levied against the company's 50% owned UK subsidiary, Midlands Electricity plc, and a reduction of $.14 per share for the effects of mild weather. In 1998, the company recorded its highest ever realized profit margin from its Midwest trading operations, even though it increased its trading liabilities for future periods. These adjustments were primarily based on projections of future prices for transactions entered into prior to April 1998. The company continues to experience extreme volatility and illiquidity in the market for future periods. (more) Page 2. Cinergy announces earnings "Notwithstanding the charges in 1998, our underlying earnings were very strong. We are repositioning the company for a more competitive market," said James E. Rogers, vice chairman, president and chief executive officer of Cinergy. "We are taking important steps to create opportunities for sustainable growth in future earnings by investing in new domestic and international initiatives. Consequently, we incurred $.20 per share in net expenses for these initiatives in 1998." Some of the company's key achievements in 1998 included: Investments of more than $110 million in countries including the Czech Republic, Estonia, Spain and the United Kingdom Midlands Electricity's agreement to sell its supply business to National Power plc, a first-of-its-kind separation of an electric supply business from a distribution business in the UK Sale of the company's interest in Edesur SA, an electric distribution network in Argentina The acquisition of a major gas marketing firm, ProEnergy, adding physical gas supply and trading to the commodity portfolio Trigen-Cinergy Solutions' agreements with seven major corporations and governmental entities for energy systems and services The launch of electricity futures trading on the New York Mercantile Exchange with Cinergy as one of only four delivery points in the U.S. For the fourth quarter of 1998, earnings were $.45 per share compared with $.70 per share in the fourth quarter of 1997. The company said the reduction in fourth quarter earnings is primarily related to mild weather during the period and charges of $.20 per share for unrealized losses in its power trading portfolio. The reduction was partially offset by continued efforts to control costs and the sale of the company's interest in Edesur, which contributed $.07 per share to earnings. (more) Page 3. Cinergy announces earnings Warmer than normal weather conditions in the fourth quarter were reflected in regulated kwh and mcf sales which declined by 2.7 percent and 10.2 percent respectively over the same period a year ago. For the year 1998, total electric kwh sales were up 21.2 percent over the previous year reflecting the increase in power marketing and trading volumes. Regulated gas mcf sales and transportation volumes were down 7.6 percent when compared with 1997, primarily from the mild weather conditions during much of the year. Following are the unaudited Cinergy Corp. Consolidated Statements of Income and Selected Operating Statistics.
CINERGY CORP. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Periods Ended December 31, 1998 (unaudited) (in thousands, except per share amounts) - -------------------------------------------------------------------------------------------------------------------------------- Quarter Ended Year Ended ---------------------------------- ------------------------------------ 1998 1997 1998 1997 ------------ ----------- ------------- ------------ Operating Revenues Electric $964,377 $938,043 $4,747,235 $3,861,698 Gas 401,210 164,182 1,060,664 491,146 Other 18,133 12,681 68,395 34,258 ------------ ----------- ------------- ------------ 1,383,720 1,114,906 5,876,294 4,387,102 Operating Expenses Fuel used in electric production 179,946 185,971 722,661 693,435 Gas purchased 338,261 90,742 857,010 266,158 Purchased and exchanged power 347,754 256,121 2,123,662 1,219,358 Other operation 187,020 180,008 813,884 693,395 Maintenance 47,558 36,918 192,498 176,472 Depreciation 76,529 72,964 298,855 289,077 Amortization of phase-in deferrals 5,624 3,371 22,298 13,483 Amortization of post-in-service deferred operating expenses 1,091 1,091 4,362 4,362 Taxes other than income taxes 66,489 61,911 274,635 265,693 ------------ ----------- ------------- ------------ 1,250,272 889,097 5,309,865 3,621,433 Operating Income 133,448 225,809 566,429 765,669 Other Income and Expenses - Net Allowance for equity funds used during construction 875 (92) 1,668 98 Phase-in deferred return 1,811 2,002 7,243 8,009 Equity in earnings of unconsolidated subsidiaries 18,493 17,930 51,484 60,392 Other - net 19,510 (8,149) 1,435 (9,641) ------------ ----------- ------------- ------------ 40,689 11,691 61,830 58,858 Interest and Other Charges Interest on long-term debt 47,478 43,995 183,849 181,772 Other interest 16,225 16,109 67,219 59,948 Allowance for borrowed funds used during construction (1,626) (681) (7,481) (5,400) Preferred dividend requirements of subsidiaries 1,365 2,951 6,517 12,569 ------------ ----------- ------------- ------------ 63,442 62,374 250,104 248,889 Income before Taxes 110,695 175,126 378,155 575,638 Income Taxes 39,296 64,628 117,187 213,000 Net Income Before Extraordinary Item $71,399 $110,498 $260,968 $362,638 Extraordinary Item - Equity Share of Windfall Profits Tax - - - (109,400) ------------ ----------- ------------- ------------ Net Income $71,399 $110,498 $260,968 $253,238 Other comprehensive income, net of tax 2,853 (374) 2,055 (1,476) ------------ ----------- ------------- ------------ Comprehensive Income $74,252 $110,124 $263,023 $251,762 Average Common Shares Outstanding 158,616 157,701 158,238 157,685 Earnings Per Common Share (1) Net Income Before Extraordinary Item $0.45 $0.70 $1.65 $2.30 Net Income $0.45 $0.70 $1.65 $1.61 Earnings Per Common Share - Assuming Dilution (1) Net Income Before Extraordinary Item $0.45 $0.70 $1.65 $2.28 Net Income $0.45 $0.70 $1.65 $1.59 Dividends Declared Per Common Share $0.45 $0.45 $1.80 $1.80 (1) The after tax earnings per share impact of the extraordinary item equity share of windfall profits tax in 1997 was $.69 for both basic and diluted earnings per share.
CINERGY CORP. SELECTED OPERATING STATISTICS For the Periods Ended December 31, 1998 (In thousands, except where noted) - -------------------------------------------------------------------------------------------------------------------------------- Quarter Ended Twelve Months Ended --------------------------- --------------------------- % Increase % Increase 1998 1997 /(Decrease) 1998 1997 /(Decrease) ------------- ---------- ----------- ------------- ---------- ----------- Operating Revenues Residential $ 308,392 $ 343,936 (10.3) $ 1,268,611 $ 1,269,407 (0.1) Commercial 194,675 208,505 (6.6) 809,875 810,436 (0.1) Industrial 181,399 178,475 1.6 719,528 700,633 2.7 Other retail 22,560 35,250 (36.0) 111,556 128,600 (13.3) Firm power sales 44,280 25,186 75.8 134,182 95,435 40.6 Non-firm power sales 304,035 275,935 10.2 2,006,248 1,272,463 57.7 All other 25,681 34,937 (26.5) 91,553 75,870 20.7 ------------- ---------- ----------- ------------- ---------- ----------- Total regulated revenues 1,081,022 1,102,224 (1.9) 5,141,553 4,352,844 18.1 Total Pro Energy 278,575 0 100.0 658,771 0 100.0 ------------- ---------- ----------- ------------- ---------- ----------- Total revenues $ 1,359,597 $1,102,224 23.4 $ 5,800,324 $ 4,352,844 33.3 KWH Sales Residential 3,185,851 3,463,036 (8.0) 14,550,558 14,147,188 2.9 Commercial 2,932,232 3,006,433 (2.5) 12,523,524 12,033,975 4.1 Industrial 4,522,399 4,461,664 1.4 18,093,308 17,320,540 4.5 Other retail 444,620 461,801 (3.7) 1,815,432 1,824,900 (0.5) Firm power sales 1,560,172 842,501 85.2 4,522,166 3,102,852 45.7 Non-firm power sales 12,649,037 10,272,262 (a) 23.1 73,036,029 54,351,119 (a) 34.4 ------------- ---------- ----------- ------------- ---------- ----------- Total sales 25,294,311 22,507,697 12.4 124,541,017 102,780,574 21.2 MCF Sales Residential 12,991 15,808 (17.8) 36,256 41,846 (13.4) Commercial 3,870 6,017 (35.7) 13,999 19,141 (26.9) Industrial 718 1,276 (43.7) 2,941 5,240 (43.9) Other retail 475 869 (45.3) 2,150 2,813 (23.6) All other 102 122 (16.4) 299 349 (14.3) ------------- ---------- ----------- ------------- ---------- ----------- Total regulated sales 18,156 24,092 (24.6) 55,645 69,389 (19.8) Total Gas Transportation 15,868 13,781 15.1 57,881 53,448 8.3 ------------- ---------- ----------- ------------- ---------- ----------- Total regulated sales and transporte34,024 37,873 (10.2) 113,526 122,837 (7.6) Total Pro Energy 145,028 0 100.0 338,343 0 100.0 ------------- ---------- ----------- ------------- ---------- ----------- Total sales 179,052 37,873 372.8 451,869 122,837 267.9 Customers (end of period) Electric 1,437,270 1,412,554 1.7 Gas 436,935 455,030 (4.0) KWH Generated - net 13,877,996 14,459,074 (4.0) 56,919,362 54,849,772 3.8 Purchased and exchanged power 12,266,585 8,971,666 36.7 71,522,361 51,412,586 39.1 ------------- ---------- ----------- ------------- ---------- ----------- Total 26,144,581 23,430,740 11.6 128,441,723 106,262,358 20.9 Losses and company use 850,270 923,043 (7.9) 3,900,706 3,481,784 12.0 ------------- ---------- ----------- ------------- ---------- ----------- Total sales 25,294,311 22,507,697 12.4 124,541,017 102,780,574 21.2 Fuel Cost Per Million Btu $1.26 $1.33 (5.3) $1.27 $1.31 (3.1) MCF Natural gas purchased 17,759 23,665 (25.0) 54,804 69,957 (21.7) Transportation received 16,821 15,046 11.8 58,849 54,682 7.6 Produced 16 5 - 22 26 (15.4) ------------- ---------- ----------- ------------- ---------- ----------- Total 34,596 38,716 (10.6) 113,675 124,665 (8.8) Gas transportation 15,868 13,781 15.1 57,881 53,448 8.3 Losses and company use 572 843 (32.1) 149 1,828 (91.8) ------------- ---------- ----------- ------------- ---------- ----------- Total regulated sales 18,156 24,092 (24.6) 55,645 69,389 (19.8) Cost per MCF Purchased (cents) 337.29 383.38 (12.0) 364.36 380.41 (4.2) (a) Restated
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