EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Arthur Dague
(203) 329-5094
adague@czn.com
CITIZENS UTILITIES ANNOUNCES 1997 THIRD-QUARTER
AND NINE-MONTH RESULTS
Stamford, Connecticut, November 14, 1997 -- Citizens Utilities' vice
president and treasurer, Robert J. DeSantis, announced today that the company's
operating income, earnings and earnings per share for the three months ended
September 30, 1997, increased significantly over second-quarter results.
In comparing third-quarter results to those for the second quarter
(excluding non-recurring charges), Mr. DeSantis reported the following
increases: operating income grew by 56% from $33 million to $51 million; net
income nearly doubled from $12 million to $23 million; and earnings per share
increased by 87% from 5 cents to 9 cents.
For the nine months ended September 30, 1997, excluding non-recurring
second-quarter charges, revenues were $1 billion, operating income totaled $147
million, net income was $65 million and earnings per share was 27 cents.
Commenting on Citizens' third-quarter results, Mr. DeSantis said, "The
actions associated with the company's mid-year restructuring have reduced
operating expenses and improved earnings. Although we are pleased with the
quarter over quarter improvements, further operating expense reductions are
necessary and are being planned. We believe that Citizens will continue to
experience upward earnings trends for the remainder of 1997 and beyond," Mr.
DeSantis added.
Additionally, Mr. DeSantis stated that Electric Lightwave, Inc. (ELI),
a wholly owned subsidiary of Citizens, had commenced a $175-million initial
public offering. According to Mr. DeSantis, ELI is offering approximately 10
million shares of its Class A Common Stock. Approximately 8 million shares are
expected to be offered in the United States and 2 million internationally. Mr.
DeSantis explained that the proceeds from the issuance will not only generate
significant capital expenditure funding for ELI but also a non-recurring gain to
partially offset the non-recurring charge taken in the second quarter.
Citizens Utilities (NYSE: CZN, CZNPr) provides telecommunications,
natural gas, electric and water and wastewater treatment services to
approximately 1.7 million customers in 20 states. Citizens has investments in
Centennial Cellular Corp.(NASDAQ: CYCL), a cellular telephone company, and
Hungarian Telephone and Cable Corp. (ASE: HTC) and owns Electric Lightwave,
Inc., a leading competitive provider of communications services for business
and long distance carriers in the western United States.
For more information, you may visit Citizens' web site at
http://www.czn.net.
This press release contains forward-looking statements relating to
future expenses, capital expenditures, revenues, charges and earnings. These
statements may differ from actual future results due to, but not limited to, the
actual effects of the restructuring, reduction in capital expenditures and other
actions described herein, changes in the local and overall economy, the nature
and pace of technological change, the number and effectiveness of competitors in
the company's markets, success in marketing and selling expenditures and
efforts, weather conditions, changes in legal and regulatory policy, name
recognition, and the mix of products and services offered in the company's
target markets. Investors may wish to consider these important factors in
evaluating any statements herein.
Citizens Utilities Company and Subsidiaries
Consolidated Financial Data
(unaudited)
For the quarter For the nine months
ended ended
September 30, September 30,
(Dollars in thousands, except per share amounts) 1997 1996 1997 1996
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Income Statement Data(1)
Revenues $ 336,118 $ 319,959 $ 1,035,518 $ 967,224
Natural gas, electric energy and fuel oil purchased 44,185 42,852 167,534 161,831
Sales and marketing expenses 8,062 13,281 35,614 30,829
Network expenses 23,983 20,692 81,187 42,831
Depreciation 58,352 46,246 172,931 140,475
Other operating expenses 150,099 122,667 431,765 371,963
Operating income 51,437 74,221 146,487 219,295
Non-recurring charges -- -- 191,090 --
Operating income/(loss) including non-recurring charges 51,437 74,221 (44,603) 219,295
Investment and other income 10,920 17,420 34,531 46,243
Interest expense 25,647 22,365 79,613 67,012
Other non-recurring charges -- -- 6,230 --
Income taxes 12,109 21,680 (30,213) 63,191
Convertible preferred dividends 1,553 1,564 4,657 4,196
Net income 23,048 46,032 (70,359) 131,139
Net income excluding non-recurring charges 23,048 46,032 64,805 131,139
Earnings/(loss) per share (2) $ .09 $ .19 $ (.29) $ .53
Earnings per share excluding non-recurring charges (2) $ .09 $ .19 $ .27 $ .53
Weighted average shares outstanding (2) 242,935 245,352
(1) In the second quarter of 1997, the company recorded certain charges to
earnings totaling approximately $197 million. The charges relate primarily to
certain assets deemed no longer recoverable, the effects of certain regulatory
commission orders, the cutback of certain long distance service operations and
accounting policy changes and other adjustments in preparation of the initial
public offering of Electric Lightwave, Inc., a wholly-owned subsidiary of the
Company. Intercompany transactions have been eliminated for the consolidated
income statement data.
(2) Adjusted for subsequent stock dividends.