Exhibit 99-1
Energy East Corporation Announces 2004 Financial Results
FOR IMMEDIATE RELEASE
Albany, NY, and Portland, ME, February 10, 2005 - Energy East Corporation [NYSE:EAS] today announced the following unaudited financial results.
Earnings per share from continuing operations for the 12 months ended December 31, 2004, were $1.63 while earnings per share for the quarter ended December 31, 2004, were 39 cents per share. Those earnings exclude discontinued operations that reflect the results of two nonutility businesses sold in 2004.
Earnings from continuing operations for the 12 months ended December 31, 2004, were up 20 cents compared to 2003 earnings of $1.43. The increase in earnings was primarily due to the RG&E Electric and Natural Gas Rate Agreements and the sale of the Ginna nuclear plant which increased earnings 16 cents per share, and 10 cents per share from lower financing costs and savings from integration and efficiency initiatives. The improvements in earnings for 2004, as compared to 2003, also reflect a loss on reacquired debt in the fourth quarter of 2003 of 9 cents per share. Those increases were partially offset by lower income from gas operations due, in part, to a 4% drop in retail sales of 7 cents per share, higher stock option expense of 6 cents per share and higher depreciation due to electric plant additions of 3 cents per share.
Earnings of 39 cents per share for the quarter ended December 31, 2004, were 7 cents higher than earnings for the fourth quarter of 2003 of 32 cent per share. Fourth quarter 2004 earnings were favorably affected by the ongoing impacts of the RG&E Electric and Natural Gas Rate Agreements of 3 cents per share, as well as lower financing costs of 2 cents per share. Earnings for 2004, as compared to 2003, also reflect a loss on reacquired debt in the fourth quarter of 2003 of 9 cents per share. Those increases were partially offset by an Earnings Sharing Mechanism at NYSEG, which reduced earnings 6 cents per share and higher stock option expense of 2 cents per share.
Unaudited Consolidated Statements of Income and Energy Delivery Statistics are presented on the following pages. The company expects to issue audited financial statements in conjunction with the filing of its Form 10-K for 2004.
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 December 31 | 2004 | 2003 | 2004 | 2003 |
(Thousands, except per share amounts) | ||||
Operating Revenues | ||||
Sales and services | $1,268,927 | $1,171,464 | $4,757,026 | $4,514,490 |
Operating Expenses |
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Electricity purchased and fuel used in generation | 411,112 | 323,087 | 1,570,410 | 1,338,369 |
Natural gas purchased | 318,959 | 262,843 | 1,030,665 | 939,464 |
Other operating expenses | 227,281 | 209,047 | 794,857 | 813,133 |
Maintenance | 54,162 | 74,545 | 181,725 | 203,042 |
Depreciation and amortization | 41,968 | 75,432 | 292,458 | 299,432 |
Other taxes | 64,425 | 64,996 | 252,860 | 269,238 |
Restructuring expenses | - | - | - | - |
Gain on sale of generation assets | - | - | (340,739) | - |
Deferral of asset sale gain | (1,998) | - | 228,785 | - |
Total Operating Expenses | 1,115,909 | 1,009,950 | 4,011,021 | 3,862,678 |
Operating Income | 153,018 | 161,514 | 746,005 | 651,812 |
Other (Income) | (8,955) | (11,565) | (36,249) | (21,852) |
Other Deductions | 4,598 | 28,631 | 11,603 | 32,712 |
Interest Charges, Net | 68,403 | 72,737 | 276,890 | 284,790 |
Preferred Stock Dividends of Subsidiaries | 476 | 864 | 3,691 | 19,009 |
Income from Continuing Operations |
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Income Taxes | 31,525 | 24,355 | 251,845 | 128,663 |
Income From Continuing Operations | 56,971 | 46,492 | 238,225 | 208,490 |
Discontinued Operations | ||||
Loss from discontinued operations | (1,485) | (1,715) | (7,108) | (12,032) |
Income taxes (benefits) | 136 | (8,467) | 1,176 | (13,988) |
(Loss) Income From Discontinued Operations | (1,621) | 6,752 | (8,284) | 1,956 |
Net Income | $55,350 | $53,244 | $229,941 | $210,446 |
Earnings Per Share From Continuing |
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Earnings Per Share From Continuing |
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Earnings (Loss) Per Share From Discontinued |
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Earnings (Loss) Per Share From Discontinued |
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Total Earnings Per Share, basic | $.38 | $.37 | $1.57 | $1.45 |
Total Earnings Per Share, diluted | $.38 | $.36 | $1.57 | $1.44 |
Dividends Paid Per Share | $.275 | $.25 | $1.055 | $1.00 |
Average Common Shares Outstanding, basic | 146,597 | 145,936 | 146,305 | 145,535 |
Average Common Shares Outstanding, diluted | 147,015 | 146,150 | 146,713 | 145,730 |
Energy Delivery Statistics - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended December 31 | 2004 | 2003 | 2004 | 2003 |
Electricity (thousands of megawatt-hours) | ||||
Residential | 2,961 | 2,849 | 11,856 | 11,676 |
Commercial | 2,353 | 2,252 | 9,480 | 9,266 |
Industrial | 1,876 | 1,849 | 7,446 | 7,412 |
Other | 593 | 570 | 2,245 | 2,239 |
Total retail | 7,783 | 7,520 | 31,027 | 30,593 |
Wholesale | 2,143 | 1,878 | 7,850 | 5,734 |
Total | 9,926 | 9,398 | 38,877 | 36,327 |
Natural Gas (thousands of dekatherms) | ||||
Residential | 24,449 | 24,321 | 82,572 | 85,401 |
Commercial | 7,386 | 7,652 | 26,604 | 25,938 |
Industrial | 1,222 | 982 | 3,959 | 3,458 |
Other | 3,252 | 3,257 | 11,026 | 11,301 |
Transportation of customer-owned gas | 23,025 | 21,739 | 84,278 | 86,647 |
Total retail | 59,334 | 57,951 | 208,439 | 212,745 |
Wholesale | 858 | 729 | 1,783 | 5,360 |
Total | 60,192 | 58,680 | 210,222 | 218,105 |
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