Exhibit 99-1
Energy East Corporation Announces First Quarter 2005 Financial Results
FOR IMMEDIATE RELEASE
Albany, NY, and Portland, ME, May 5, 2005, Energy East Corporation [NYSE:EAS] today announced the following financial results.
Earnings per share for the quarter ended March 31, 2005, were $1.05 and earnings per share for the 12 months ended March 31, 2005, were $1.85. Those earnings exclude discontinued operations, which reflect the results of several nonutility businesses sold in 2003 and 2004.
Earnings from continuing operations for the quarter ended March 31, 2005, increased 22 cents per share compared to 83 cents per share for the quarter ended March 31, 2004. First quarter earnings rose due to higher margins on electricity sales, incentives earned from the renegotiation of nonutility generator contracts and from the sale of the Ginna nuclear plant and lower stock-based compensation costs.
Earnings per share from continuing operations for the 12 months ended March 31, 2005, increased 49 cents per share compared to $1.36 for the 12 months ended March 31, 2004. The increase in earnings is primarily due to rate adjustments and the sale of the Ginna nuclear plant. Additional items that contributed to the increase in earnings for the 12 months include: lower stock-based compensation costs, lower costs for reacquired debt and lower interest charges.
Unaudited 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 | 2005 | 2004 | 2005 | 2004 |
| | | | |
(Thousands, except per share amounts) | | | | |
Operating Revenues | $1,637,278 | $1,551,356 | $4,842,614 | $4,582,002 |
Sales and services | | | | |
Operating Expenses | | | | |
Electricity purchased and fuel used in generation | 437,191 | 396,654 | 1,610,947 | 1,376,656 |
Natural gas purchased | 519,130 | 483,515 | 1,065,929 | 991,910 |
Other operating expenses | 179,642 | 208,678 | 761,890 | 827,793 |
Maintenance | 44,546 | 42,662 | 183,609 | 199,457 |
Depreciation and amortization | 67,921 | 78,513 | 281,866 | 302,615 |
Other taxes | 68,031 | 73,642 | 247,249 | 258,146 |
Gain on sale of generation assets | - | - | (340,739) | - |
Deferral of asset sale gain | - | - | 228,785 | - |
| | | | |
Total Operating Expenses | 1,316,461 | 1,283,664 | 4,039,536 | 3,956,577 |
| | | | |
Operating Income | 320,817 | 267,692 | 803,078 | 625,425 |
Other (Income) | (10,067) | (5,739) | (39,825) | (23,065) |
Other Deductions | 4,218 | 3,278 | 16,744 | 34,204 |
Interest Charges, Net | 69,736 | 69,990 | 276,636 | 287,044 |
Preferred Stock Dividends of Subsidiaries | 476 | 988 | 3,179 | 11,579 |
| | | | |
Income from Continuing Operations
Before Income Taxes |
256,454
|
199,175
|
546,344
|
315,663
|
Income Taxes | 102,088 | 78,246 | 275,286 | 118,014 |
| | | | |
Income From Continuing Operations | 154,366 | 120,929 | 271,058 | 197,649 |
| | | | |
Discontinued Operations | | | | |
Loss from discontinued operations | - | (635) | (6,473) | (18,496) |
Income taxes (benefits) | - | (258) | 1,434 | (16,381) |
| | | | |
Loss From Discontinued Operations | - | (377) | (7,907) | (2,115) |
| | | | |
Net Income | $154,366 | $120,552 | $263,151 | $195,534 |
| | | | |
Earnings Per Share From Continuing
Operations, basic |
$1.05
|
$.83
|
$1.85
|
$1.36
|
| | | | |
Earnings Per Share From Continuing
Operations, diluted |
$1.05
|
$.82
|
$1.84
|
$1.35
|
| | | | |
Earnings Per Share, basic | $1.05 | $.83 | $1.80 | $1.34 |
| | | | |
Earnings Per Share, diluted | $1.05 | $.82 | $1.79 | $1.34 |
| | | | |
Dividends Paid Per Share | $.275 | $.26 | $1.07 | $1.01 |
| | | | |
Average Common Shares Outstanding, basic | 146,875 | 146,085 | 146,500 | 145,780 |
| | | | |
Average Common Shares Outstanding, diluted | 147,196 | 146,428 | 146,903 | 146,030 |
| | | | |
Energy Delivery Statistics - (Unaudited)
| | Three Months | Twelve Months |
| | | | |
Periods Ended March 31 | 2005 | 2004 | 2005 | 2004 |
| | | | |
| | | | | |
Electricity (thousands of megawatt-hours) | | | | |
Residential | 3,402 | 3,358 | 11,892 | 11,682 |
Commercial | 2,377 | 2,335 | 9,522 | 9,290 |
Industrial | 1,699 | 1,761 | 7,384 | 7,367 |
Other | 598 | 597 | 2,246 | 2,215 |
| | | | |
Total retail | 8,076 | 8,051 | 31,044 | 30,554 |
Wholesale | 1,631 | 2,094 | 7,388 | 6,417 |
| | | | |
Total | 9,707 | 10,145 | 38,432 | 36,971 |
| | | | |
Natural Gas (thousands of dekatherms) | | | | |
Residential | 39,788 | 41,293 | 81,008 | 84,489 |
Commercial | 13,094 | 13,019 | 26,621 | 26,643 |
Industrial | 1,657 | 1,623 | 4,102 | 3,558 |
Other | 3,512 | 3,178 | 11,612 | 11,050 |
Transportation of customer-owned gas | 28,205 | 28,484 | 83,760 | 85,386 |
| | | | |
Total retail | 86,256 | 87,597 | 207,103 | 211,126 |
Wholesale | 350 | - | 1,681 | 3,057 |
| | | | |
Total | 86,606 | 87,597 | 208,784 | 214,183 |
| | | | |
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