Exhibit 99-1
Energy East Corporation Announces Second Quarter 2005 Financial Results
FOR IMMEDIATE RELEASE
Albany, NY, and Portland, ME, August 4, 2005, Energy East Corporation [NYSE:EAS] today announced the following financial results.
Earnings per share from continuing operations, basic for the quarter ended June 30, 2005, were 12 cents and earnings per share for the 12 months ended June 30, 2005, were $1.67.
Earnings from continuing operations for the second quarter of 2005 decreased 17 cents per share compared to last year because earnings for the second quarter of 2004 included one-time benefits of 7 cents per share related to the Rochester Gas and Electric Corporation (RG&E) Electric and Natural Gas Rate Agreements. Second quarter 2004 earnings also reflected a Ginna sale incentive, recorded in the first quarter of 2005, and an annual credit from the RG&E asset sale gain account, to be recorded in the third quarter of 2005, totaling 2 cents per share. In addition, earnings for the second quarter of 2005 were negatively affected 9 cents per share because of increased operating and maintenance expenses primarily related to storm damage, higher stock option expense and New York Independent System Operator pricing errors in May 2000 which were subsequently billed back to NYSEG and RG&E in June 2005. Because these back billings were not predictable, they were not reserved for.
Earnings per share from continuing operations for the 12 months ended June 30, 2005, increased 22 cents per share as compared to earnings for the 12 months ended June 30, 2004. The increase in earnings is primarily due to higher margins on electric sales, a loss in 2003 from the redemption, with available cash, of the company's outstanding Putable Asset Term Securities, other revenues including NUG restructuring incentives and lower interest charges. These increases were partially offset by the one-time benefits of the RG&E Electric and Natural Gas Rate Agreements mentioned above.
The company has a policy of not providing earnings guidance. It will, however, alert investors to instances where analyst consensus earnings estimates differ materially from management's expectations for the year. Although earnings from continuing operations for the second quarter of 2005 were somewhat below last year, they did not differ materially from management's expectations for the quarter. As such, management's expectations for 2005 remain materially unchanged as well.
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.
Forward-looking Statements: The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for certain forward-looking statements. This news release contains certain forward-looking statements that are based on management's current expectations and information that is currently available. Whenever used in this report, the words "estimate," "expect," "believe," "anticipate," or similar expressions are intended to identify such forward-looking statements. For a discussion of certain risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Forward-looking Statements" in Energy East's Annual Report on Form 10-K for the year ended December 31, 2004, and subsequent Quarterly Reports on Form 10-Q.
Contact: | Scott Martin |
| Manager, Investor Relations |
| (207) 688-4336 |
Energy East Corporation
Consolidated Statements of Income - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended June 30 | 2005 | 2004 | 2005 | 2004 |
(Thousands, except per share amounts) | ||||
Operating Revenues | ||||
Sales and services | $1,081,945 | $968,938 | $4,955,621 | $4,582,034 |
Operating Expenses | ||||
Electricity purchased and fuel used in generation | 436,779 | 338,253 | 1,709,474 | 1,410,082 |
Natural gas purchased | 180,993 | 144,312 | 1,102,610 | 970,516 |
Other operating expenses | 184,772 | 185,164 | 762,388 | 812,821 |
Maintenance | 53,236 | 42,814 | 194,031 | 198,962 |
Depreciation and amortization | 68,121 | 74,994 | 274,993 | 303,838 |
Other taxes | 59,743 | 57,885 | 248,215 | 258,824 |
Gain on sale of generation assets | - | (319,487) | (21,252) | (319,487) |
Deferral of asset sale gain | - | 214,368 | 14,417 | 214,368 |
Total Operating Expenses | 983,644 | 738,303 | 4,284,876 | 3,849,924 |
Operating Income | 98,301 | 230,635 | 670,745 | 732,110 |
Other (Income) | (8,996) | (11,680) | (37,139) | (32,476) |
Other Deductions | 6,984 | 1,159 | 22,569 | 34,102 |
Interest Charges, Net | 72,282 | 68,822 | 280,096 | 287,778 |
Preferred Stock Dividends of Subsidiaries | 432 | 1,791 | 1,820 | 4,631 |
Income from Continuing Operations |
|
|
|
|
Income Taxes | 10,234 | 127,720 | 157,801 | 225,683 |
Income From Continuing Operations | 17,365 | 42,823 | 245,598 | 212,392 |
Discontinued Operations | ||||
Income (loss) from businesses sold | - | (4,316) | (2,156) | (22,319) |
Income taxes (benefits) | - | 441 | 992 | (15,810) |
Income (Loss) From Discontinued Operations | - | (4,757) | (3,148) | (6,509) |
Net Income | $17,365 | $38,066 | $242,450 | $205,883 |
Earnings Per Share From Continuing |
|
|
|
|
Earnings Per Share From Continuing |
|
|
|
|
Total Earnings Per Share, basic | $.12 | $.26 | $1.65 | $1.41 |
Total Earnings Per Share, diluted | $.12 | $.26 | $1.65 | $1.40 |
Dividends Paid Per Share | $.275 | $.26 | $1.085 | $1.02 |
Average Common Shares Outstanding, basic | 146,831 | 146,148 | 146,670 | 145,962 |
Average Common Shares Outstanding, diluted | 147,390 | 146,596 | 147,101 | 146,267 |
Energy Delivery Statistics - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended June 30 | 2005 | 2004 | 2005 | 2004 |
Electricity (thousands of megawatt-hours) | ||||
Residential | 2,692 | 2,626 | 11,957 | 11,751 |
Commercial | 2,302 | 2,248 | 9,577 | 9,356 |
Industrial | 1,817 | 1,887 | 7,315 | 7,372 |
Other | 530 | 534 | 2,241 | 2,227 |
Total retail | 7,341 | 7,295 | 31,090 | 30,706 |
Wholesale | 2,460 | 1,870 | 8,330 | 6,906 |
Total | 9,801 | 9,165 | 39,420 | 37,612 |
Natural Gas (thousands of dekatherms) | ||||
Residential | 11,994 | 11,619 | 81,384 | 82,337 |
Commercial | 3,807 | 3,808 | 26,620 | 26,620 |
Industrial | 586 | 654 | 4,036 | 3,663 |
Other | 2,450 | 2,307 | 11,755 | 11,028 |
Transportation of customer-owned gas | 18,351 | 17,564 | 84,543 | 84,403 |
Total retail | 37,188 | 35,952 | 208,338 | 208,051 |
Wholesale | 348 | - | 1,582 | 1,509 |
Total | 37,536 | 35,952 | 209,920 | 209,560 |
-30-