ENERGY EAST CORPORATION ANNOUNCES SECOND QUARTER 2008 FINANCIAL RESULTS
FOR IMMEDIATE RELEASE
Portland, Maine, July 31, 2008 - Energy East Corporation [NYSE:EAS] today announced its second quarter financial results. Earnings per basic share for the second quarter 2008 were 10 cents compared to 12 cents per share earned in the second quarter 2007.
For the 12 months ended June 30, 2008, earnings per basic share were $1.56 compared with $1.68 per share for the 12 months ended June 30, 2007.
Earnings per basic share for the second quarter of 2008 were 2 cents lower than second quarter 2007 earnings of 12 cents per share. Results for the quarter included a charge of two cents per share resulting from provisions of Central Maine Power Company (CMP)'s new rate plan which was approved by the Maine Public Utilities Commission in June 2008. As part of this rate plan, CMP was required to write off $5.2 million in previously deferred costs, including $4.1 million in storm costs.
Merger Update
To date, all regulatory approvals have been received for Energy East's acquisition by Iberdrola with the exception of approval from the New York State Public Service Commission (NYPSC). The New York merger approval proceeding culminated in early July with the submittal of Briefs Opposing Exceptions to the Administrative Law Judge's recommended decision, and Energy East and Iberdrola are awaiting a NYPSC decision. Energy East is currently unable to predict either the outcome of this proceeding or the timing of a NYPSC decision.
Unaudited Consolidated Statements of Income and Energy Distribution and Weather Statistics are presented on the following pages.
In addition, Energy East today filed its Form 10-Q with the Securities and Exchange Commission. The document contains additional details regarding second quarter 2008 financial results and is available on Energy East's website: www.energyeast.com. Shareholders may obtain a free copy of our Form 10-Q by contacting Investor Relations at (207) 688-4386.
Forward Looking Statement:
This communication contains forward-looking information and statements about Energy East. Forward-looking statements are statements that are not historical facts. These statements may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects," "anticipates," "believes," "intends," "estimates" and similar expressions. Although the management of Energy East Corporation believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Energy East Corporation shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Energy East Corporation, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public documents sent by Energy East to their regulators and under "Risk Factors" in their annual and quarterly reports filed with the SEC. Except as required by applicable law, Energy East undertakes no obligation to update any forward-looking information or statements.
About Energy East:
Energy East is a respected super-regional energy services and delivery company serving about 3 million customers throughout upstate New York and New England. By providing outstanding customer service and meeting customers' energy requirements in an environmentally friendly manner, Energy East will continue to be a valuable asset to the communities we serve.
Energy East Corporation
Consolidated Statements of Income - (Unaudited)
| | Three Months | Twelve Months |
| | | | |
Period Ended June 30, | 2008 | 2007 | 2008 | 2007 |
| | | | |
(Thousands, except per share amounts) | | | | |
Operating Revenues | | | | |
Utility | $957,915 | $977,006 | $4,581,291 | $4,718,605 |
Other | 124,361 | 112,020 | 542,979 | 506,387 |
| | | | |
Total Operating Revenues | 1,082,276 | 1,089,026 | 5,124,270 | 5,224,992 |
| | | | |
Operating Expenses | | | | |
Electricity purchased and fuel used in generation | | | | |
Utility | 317,416 | 351,412 | 1,360,625 | 1,472,205 |
Other | 96,490 | 85,164 | 379,193 | 353,791 |
Natural gas purchased | | | | |
Utility | 195,634 | 174,232 | 1,145,871 | 1,110,286 |
Other | 14,189 | 12,120 | 91,456 | 80,632 |
Other operating expenses | 199,936 | 203,503 | 841,178 | 801,295 |
Maintenance | 43,769 | 48,809 | 165,691 | 216,855 |
Depreciation and amortization | 69,513 | 68,273 | 278,433 | 280,176 |
Other taxes | 61,451 | 58,787 | 260,806 | 252,204 |
| | | | |
Total Operating Expenses | 998,398 | 1,002,300 | 4,523,253 | 4,567,444 |
| | | | |
Operating Income | 83,878 | 86,726 | 601,017 | 657,548 |
Other (Income) | (7,426) | (10,752) | (33,100) | (48,523) |
Other Deductions | 2,577 | 1,423 | 10,019 | 21,085 |
Interest Charges, Net | 69,234 | 67,855 | 277,654 | 291,217 |
Preferred Stock Dividends of Subsidiaries | 282 | 282 | 1,128 | 1,129 |
| | | | |
Income Before Income Taxes | 19,211 | 27,918 | 345,316 | 392,640 |
Income Taxes | 4,256 | 8,427 | 99,893 | 141,549 |
| | | | |
Net Income | $14,955 | $19,491 | $245,423 | $251,091 |
| | | | |
Earnings per Share, basic | $.10 | $.12 | $1.56 | $1.68 |
| | | | |
Earnings per Share, diluted | $.09 | $.12 | $1.55 | $1.67 |
| | | | |
Dividends Declared per Share | $.31 | $.30 | $1.23 | $1.19 |
| | | | |
Average Common Shares Outstanding, basic | 157,016 | 157,112 | 157,137 | 149,627 |
| | | | |
Average Common Shares Outstanding, diluted | 158,299 | 158,122 | 158,277 | 150,500 |
| | | | |
Energy East Corporation
Energy Distribution Statistics - (Unaudited)
| | Three Months | Twelve Months |
| | | | | | |
Periods Ended June 30, | 2008 | 2007 | % change | 2008 | 2007 | % change |
| | | | | | |
| | | | | | | |
Electricity (thousands of megawatt-hours) | | | | | | |
Residential | 2,648 | 2,784 | (5%) | 12,257 | 12,428 | (1%) |
Commercial | 2,351 | 2,470 | (5%) | 9,892 | 9,887 | - |
Industrial | 1,857 | 1,945 | (5%) | 7,337 | 7,167 | 2% |
Other | 564 | 545 | 3 % | 2,338 | 2,249 | 4% |
| | | | | | |
Total retail | 7,420 | 7,744 | (4%) | 31,824 | 31,731 | - |
Wholesale | 1,005 | 1,783 | (44%) | 5,836 | 8,050 | (28%) |
| | | | | | |
Total Deliveries | 8,425 | 9,527 | (12%) | 37,660 | 39,781 | (5%) |
| | | | | | |
Natural Gas (thousands of dekatherms) | | | | | | |
Residential | 9,901 | 11,493 | (14%) | 74,110 | 75,846 | (2%) |
Commercial | 3,439 | 4,234 | (19%) | 24,397 | 25,567 | (5%) |
Industrial | 486 | 539 | (10%) | 3,495 | 3,564 | (2%) |
Other | 2,692 | 2,698 | - | 13,025 | 13,494 | (3%) |
Transportation of customer-owned gas | 16,927 | 16,885 | - | 79,315 | 77,955 | 2% |
| | | | | | |
Total retail | 33,445 | 35,849 | (7%) | 194,342 | 196,426 | (1%) |
Wholesale | 86 | 267 | (68%) | 1,777 | 638 | 179% |
| | | | | | |
Total Deliveries | 33,531 | 36,116 | (7%) | 196,119 | 197,064 | - |
| | | | | | |
Energy East Corporation
Weather Statistics - (Unaudited)
Three Months Ended June 30, | 2008 | 2007 | Normal |
| | | |
New York | | | |
Heating degree days | 806 | 910 | 957 |
(Warmer) than prior year | (11%) | | |
(Warmer) than normal | (16%) | | |
| | | |
New England | | | |
Heating degree days | 731 | 824 | 835 |
(Warmer) than prior year | (11%) | | |
(Warmer) than normal | (12%) | | |
| | | |
