Exhibit 99-1
Energy East Corporation Announces First Quarter 2004 Financial Results
FOR IMMEDIATE RELEASE
Albany, NY, and Portland, ME, May 7, 2004, Energy East Corporation [NYSE:EAS] today announced the following financial results.
Earnings per share for the quarter ended March 31, 2004, were 83 cents while earnings per share for the 12 months ended March 31, 2004, were $1.35. These results exclude discontinued operations which reflect the results of three non-utility businesses sold in 2002 and 2003.
Earnings of 83 cents per share for the quarter ended March 31, 2004, were 7 cents lower than earnings from continuing operations of 90 cents per share for the quarter ended March 31, 2003. First quarter earnings were impacted by a modest decrease in sales as natural gas retail deliveries declined 1.8% and electric retail deliveries declined 0.5% for the quarter primarily because of warmer winter weather in 2004 as compared to 2003. First quarter earnings also reflect higher stock-based compensation costs. Items which contributed to earnings include integration savings and interest cost reductions.
Earnings per share from continuing operations for the 12 months ended March 31, 2004, were down 21 cents compared to $1.56 for the 12 months ended March 31, 2003. Items that contributed to the change in earnings for the 12-month period include: lower deliveries primarily due to the effects of weather, an electric rate reduction effective in March 2002 for New York State Electric & Gas Corporation, lower pension income, and higher stock based compensation costs. Those decreases were partially offset by savings from integration initiatives, interest cost reductions, and a restructuring charge that was recorded in 2002. Financial results for RGS Energy Group, Inc. are included in the company's results beginning July 1, 2002.
Preliminary Consolidated Statements of Income and Energy Delivery Statistics are presented on the following pages.
Energy East is a respected super-regional energy services and delivery company that our customers can depend on every day. We are a motivated and skilled team of professionals dedicated to creating shareholder value through our focus on profitable growth, operational excellence and strong customer partnerships. We serve about 3 million customers throughout upstate New York and New England.
Contact: | Scott Martin |
| Manager, Investor Relations |
| (207) 688-4336 |
Energy East Corporation
Consolidated Statements of Income - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended March 31 | 2004 | 2003 | 2004 | 2003 |
(Thousands, except per share amounts) | ||||
Operating Revenues | ||||
Sales and services | $1,586,091 | $1,508,295 | $4,671,616 | $4,319,337 |
Operating Expenses |
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Electricity purchased and fuel used in generation | 396,654 | 358,368 | 1,367,729 | 1,328,503 |
Natural gas purchased | 499,849 | 451,051 | 1,050,446 | 844,578 |
Other operating expenses | 218,408 | 199,701 | 856,661 | 752,104 |
Maintenance | 43,212 | 46,204 | 199,926 | 171,622 |
Depreciation and amortization | 85,498 | 75,759 | 311,003 | 271,877 |
Other taxes | 75,446 | 85,290 | 260,635 | 264,190 |
Restructuring expenses | - | - | - | 40,567 |
Total Operating Expenses | 1,319,067 | 1,216,373 | 4,046,400 | 3,673,441 |
Operating Income | 267,024 | 291,922 | 625,216 | 645,896 |
Writedown of Investment | - | - | - | 2,094 |
Other (Income) | (5,639) | (4,652) | (23,061) | (23,880) |
Other Deductions | 3,145 | 1,878 | 34,570 | 29,351 |
Interest Charges, Net | 69,990 | 67,736 | 287,056 | 268,240 |
Preferred Stock Dividends of Subsidiaries | 988 | 8,419 | 11,578 | 32,955 |
Income from Continuing Operations |
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Income Taxes | 77,988 | 88,032 | 117,643 | 121,725 |
Income From Continuing Operations | 120,552 | 130,509 | 197,430 | 215,411 |
Discontinued Operations | ||||
Income (loss) from businesses sold | - | 7,952 | (17,906) | 5,800 |
Income taxes (benefits) | - | 2,997 | (16,009) | 2,713 |
Income (Loss) From Discontinued Operations | - | 4,955 | (1,897) | 3,087 |
Net Income | $120,552 | $135,464 | $195,533 | $218,498 |
Earnings Per Share From Continuing |
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Earnings Per Share From Continuing |
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Total Earnings Per Share, basic | $.83 | $.93 | $1.34 | $1.58 |
Total Earnings Per Share, diluted | $.82 | $.93 | $1.34 | $1.58 |
Dividends Paid Per Share | $.26 | $.25 | $1.01 | $.97 |
Average Common Shares Outstanding, basic | 146,085 | 145,096 | 145,780 | 138,114 |
Average Common Shares Outstanding, diluted | 146,428 | 145,215 | 146,030 | 138,143 |
Energy Delivery Statistics - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended March 31 | 2004 | 2003 | 2004 | 2003 |
Electricity (thousands of megawatt-hours) | ||||
Residential | 3,358 | 3,352 | 11,682 | 11,156 |
Commercial | 2,335 | 2,311 | 9,290 | 8,696 |
Industrial | 1,761 | 1,806 | 7,367 | 7,018 |
Other | 597 | 621 | 2,215 | 2,110 |
Total retail | 8,051 | 8,090 | 30,554 | 28,980 |
Wholesale | 2,094 | 1,411 | 6,417 | 5,344 |
Total | 10,145 | 9,501 | 36,971 | 34,324 |
Natural Gas (thousands of dekatherms) | ||||
Residential | 41,293 | 42,205 | 84,489 | 82,068 |
Commercial | 13,019 | 12,314 | 26,643 | 25,314 |
Industrial | 1,623 | 1,522 | 3,558 | 3,495 |
Other | 3,178 | 3,429 | 11,050 | 13,959 |
Transportation of customer-owned gas | 28,484 | 29,746 | 85,386 | 90,131 |
Total retail | 87,597 | 89,216 | 211,126 | 214,967 |
Wholesale | - | 2,303 | 3,057 | 7,419 |
Total | 87,597 | 91,519 | 214,183 | 222,386 |
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