EXHIBIT 99.2
Citizens Utilities Company and Subsidiaries
Consolidated Financial Data
(unaudited)
For the quarter ended For the nine months ended
September 30, September 30,
-------------------- --------------------------------
% %
(Dollars in thousands) 1997 1996 Change 1997 1996 Change
---------------------------- --------------------------------
Income Statement Data (1)
Revenues $ 336,118 $ 319,959 5% $1,035,518 $ 967,224 7%
Natural gas, electric energy and fuel
oil purchased 44,185 42,852 3% 167,534 161,831 4%
Sales and marketing expenses 8,062 13,281 -39% 35,614 30,829 16%
Network expenses 23,983 20,692 16% 81,187 42,831 90%
Depreciation 58,352 46,246 26% 172,931 140,475 23%
Other operating expenses 150,099 122,667 22% 431,765 371,963 16%
Operating income 51,437 74,221 -31% 146,487 219,295 -33%
Nonrecurring charges - - 191,090 -
Operating income/(loss) including
nonrecurring charges 51,437 74,221 -31% (44,603) 219,295 -120%
Investment and other income 10,920 17,420 -37% 34,531 46,243 -25%
Interest expense 25,647 22,365 15% 79,613 67,012 19%
Other nonrecurring charges - - 6,230 -
Income taxes 12,109 21,680 -44% (30,213) 63,191 -148%
Convertible preferred dividends 1,553 1,564 -1% 4,657 4,196 11%
Net income 23,048 46,032 -50% (70,359) 131,139 -154%
Net income excluding nonrecurring charges 23,048 46,032 -50% 64,805 131,139 -51%
Cash Flow and Capital Expenditure Data
EBITDA (2) $ 120,709 $ 137,887 -12% $ 353,949 $ 406,013 -13%
Cash flow from operations 73,618 61,154 20% 175,173 210,967 -17%
Capital expenditures 124,704 76,302 63% 318,236 185,241 72%
Free cash flow (51,086) (15,148) -237% (143,063) 25,726 -656%
Select Balance Sheet Data
Cash and investments $ 449,313 $ 448,664 0%
Total assets 4,502,170 4,244,661 6%
Net plant 3,336,766 3,035,137 10%
Long-term debt 1,585,361 1,388,338 14%
Equity (3) 1,797,873 1,844,463 -3%
Shares of common stock outstanding 246,721 235,672 5%
Weighted average shares outstanding (4) 242,935 245,352 -1%
Per-Share Data(4)
Earnings/(loss) per share $ .09 $ .19 -52% $ (.29) $ .53 -154%
Earnings per share excluding
nonrecurring charges $ .09 $ .19 -52% $ .27 $ .53 -50%
Operating cash flow per share $ .30 $ .25 17% $ .72 $ .86 -16%
Book value per share $ 6.57 $ 6.70 -2%
Other Financial Data
EBITDA margin 36% 43% 34% 42%
Long-term debt to long-term debt and
equity 47% 43%
Interest coverage (5) 4.7x 6.2x 4.5x 6.1x
Common equity market capitalization
(in billions) $ 2.3 $ 2.9
Equity market capitalization (in billions) (6) $ 2.5 $ 3.1
Market capitalization (in billions) (7) $ 4.1 $ 4.4
(1)In the second quarter of 1997, the Company recorded certain charges to
earnings totalling 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 adjustments in preparation for 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)Earnings before interest, income taxes, depreciation and amortization.
Earnings excludes $197 million of nonrecurring charges made in the
second quarter 1997. (3) Includes convertible preferred securities and
the impact of $197 of nonrecurring charges made in the second quarter 1997.
(4)Adjusted for subsequent stock dividends.
(5)EBITDA divided by interest expense. EBITDA excludes $197 million of
nonrecurring noncash charges made in the second quarter 1997.
(6)Includes market value of convertible preferred securities.
(7)Equity market capitalization plus market value of long-term debt.
Note: Quarter ended information is not presented where it is the same as year
to date.
Citizens Utilities Company and Subsidiaries
Financial and Operating Data by Service
For the quarter ended For the nine months ended
September 30, September 30,
---------------------- -------------------------------
% %
(Dollars in thousands, except operating data) 1997 1996 Change 1997 1996 Change
--------------------------------------------------------------
Citizens Communications
Select Income Statement Data
Revenues
Network access services (1) $ 102,295 $ 101,384 1% $ 304,709 $ 298,135 2%
Local network services 63,366 58,421 8% 185,154 173,033 7%
Long distance service (2) 29,561 22,954 29% 80,934 41,696 94%
Directory (3) 9,334 7,471 25% 24,902 22,280 12%
Other (4) 11,530 13,447 -14% 36,911 40,951 -10%
Total revenues 216,086 203,677 6% 632,610 576,095 10%
Sales and marketing expenses (5) 6,154 10,842 -43% 28,087 24,070 17%
Network expenses (6) 24,773 20,635 20% 80,913 37,608 115%
Depreciation 43,511 36,431 19% 128,329 107,889 19%
Operating and maintenance expenses (7) 103,525 69,080 50% 299,017 233,501 28%
Operating income 38,123 66,689 -43% 96,264 173,027 -44%
Nonrecurring charges - - 140,638 -
Operating income/(loss) including nonrecurring charges 38,123 66,689 -43% (44,374) 173,027 -126%
Operating margin excluding nonrecurring charges 18% 33% 15% 30%
Cash Flow and Capital Expenditure Data
Operating cash flow (8) $ 81,634 $ 103,120 -21% $ 224,593 $ 280,916 -20%
Capital expenditures 62,105 35,597 74% 172,160 100,281 72%
Free cash flow (9) 19,529 67,523 -71% 52,433 180,635 -71%
Select Balance Sheet Data
Total assets $ 2,160,700 $ 2,056,613 5%
Net plant 1,904,094 1,764,810 8%
Operating Data
Access lines 868,502 829,277 5%
Long distance customers-in territory 223,000 157,000 42%
- out of territory 21,000 33,000 -36%
- total 244,000 190,000 28%
Employees 3,592 3,418 5%
Revenue per access line $ 249 $ 246 1% $ 728 $ 695 5%
Revenue per employee (in thousands) $ 60 $ 60 1% $ 176 $ 169 5%
In-territory toll minutes of use (in millions) 1,165 1,082 8% 3,349 3,185 5%
Citizens' long distance minutes of use (in millions)
- in territory 115 69 67% 314 142 121%
- out of territory 109 42 160% 315 95 232%
- total long distance 224 111 102% 629 237 165%
Citizens' in-territory long distance market share 19% 12% 19% 12%
(1) Includes transactions between the Company's long distance operations and
its local exchange operations of $7,326 and $7,633 for the third quarters
ended 1997 and 1996, respectively; $22,022 and $8,345 for the nine months
ended 1997 and 1996, respectively.
(2) Includes transactions between the Company's long distance operations and
its local exchange operations of $1,926 for the third quarter ended 1997
and $3,726 for the nine months ended 1997.
(3) Includes transactions between the Company's directory services and its
local exchange operations of $613 for the third quarter ended and for the
nine months ended 1997.
(4) Includes transactions between the Company's long distance operations and
its local exchange operations of $1,045 and ($1,215) for the third quarters
ended 1997 and 1996, respectively; $1,045 for the nine months ended 1997.
(5) Includes transactions between the Company's long distance operations and
its local exchange operations of $213 for the third quarter ended 1997 and;
$1,189 for the nine months ended 1997.
(6) Includes transactions between the Company's long distance operations and
its local exchange operations of $10,935 and $7,633 for the third quarters
ended 1997 and 1996, respectively; $21,328 and $8,345 for the nine months
ended 1997 and 1996, respectively.
(7) Includes transactions between the Company's long distance operations and
its local exchange operations of ($238) and ($1,215) for the third quarters
ended 1997 and 1996, respectively; $4,889 for the nine months ended 1997.
(8) Operating income plus depreciation.
(9) Operating cash flow less capital expenditures.
Note: Quarter ended information is not presented where it is the same as year to
date.
Citizens Utilities Company and Subsidiaries
Financial and Operating Data by Service
For the quarter ended For the nine months ended
September 30, September 30,
---------------------- -------------------------------
% %
(Dollars in thousands, except operating data) 1997 1996 Change 1997 1996 Change
--------------------------------------------------------------
Electric Lightwave, Inc.(1)
Select Income Statement Data
Revenues
Network access services (2) $ 9,922 $ 6,604 64% $ 25,810 $ 15,739 64%
Local network services 2,015 639 215% 4,410 1,461 202%
Long distance service 2,404 4,728 -49% 6,089 6,310 -4%
Other 2,684 673 299% 5,815 1,446 302%
Total revenues 17,025 12,104 41% 42,124 24,956 69%
Sales and marketing expenses 2,121 2,439 -13% 8,716 6,759 29%
Network expenses (2) 11,070 8,229 35% 24,217 14,449 68%
Depreciation 2,280 1,524 50% 6,893 3,279 110%
Operating and maintenance expenses 6,846 4,601 49% 25,196 14,509 74%
Operating income (5,292) (4,689) -13% (22,898) (14,040) 63%
Nonrecurring charges - - 14,576 -
Operating income/(loss) including nonrecurring charges (5,292) (4,689) -13% (37,474) (14,040) 167%
Cash Flow and Capital Expenditure Data
Operating cash flow (3) $ (3,012) $ ( 3,165) 5% $ (16,005) $ (10,761) -49%
Capital expenditures 33,578 19,178 75% 68,641 30,146 128%
Free cash flow (4) (36,590) (22,343) -64% (84,646) (40,907) -107%
Select Balance Sheet Data
Total assets $ 248,570 $ 191,372 30%
Gross plant- owned 249,499 160,648 55%
- leased 87,429 55,822 57%
- total 336,925 216,470 56%
Operating Data
Route miles 2,087 1,069 95%
Fiber miles 123,257 77,135 60%
Customers 1,085 638 70%
Buildings connected 540 375 44%
Employees 482 343 41%
Revenue per employee $ 35,322 $ 35,289 0% $ 87,394 $ 72,758 20%
(1) Electric Lightwave, Inc. is Citizens' Competitive Local Exchange Company.
(2) Includes transactions between the Company's long distance operations and
its local exchange operations of $925 and $539 for the third quarters ended
1997 and 1996, respectively; $2,615 and $881 for the nine months ended 1997
and 1996, respectively.
(3) Operating loss plus depreciation.
(4) Operating cash flow less capital expenditures.
Note: Quarter ended information is not presented where it is the same as year to
date.
Citizens Utilities Company and Subsidiaries
Sector Financial and Operating Data
For the quarter ended For the nine months ended
September 30, September 30,
---------------------- -----------------------
% %
(Dollars in thousands, except operating data) 1997 1996 Change 1997 1996 Change
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Citizens Public Services
Select Income Statement Data
Revenues
Residential distribution $ 60,275 $ 60,319 0% $ 218,171 $ 207,547 5%
Commercial distribution 27,536 26,458 4% 92,106 86,341 7%
Industrial distribution 18,945 18,319 3% 55,282 59,792 -8%
Municipal distribution 2,571 2,369 9% 8,686 7,766 12%
Total distribution 109,327 107,465 2% 374,245 361,446 4%
Transportation/Transmission 1,146 940 22% 3,839 3,523 9%
Other 4,369 2,730 60% 12,721 10,430 22%
Total revenues 114,842 111,135 3% 390,805 375,399 4%
Natural gas, electric energy and fuel oil purchased 44,185 42,852 3% 167,534 161,831 4%
Depreciation 12,562 8,291 52% 37,709 29,307 29%
Operating and maintenance expenses 39,488 47,771 -17% 112,441 123,953 -9%
Operating income 18,607 12,221 52% 73,121 60,308 21%
Nonrecurring charges - - 35,876 -
Operating income/(loss) including nonrecurring charges 18,607 12,221 52% 37,245 60,308 -38%
Cash Flow and Capital Expenditure Data
Operating cash flow (1) $ 31,169 $ 20,512 52% $ 110,830 $ 89,615 24%
Capital expenditures 19,704 18,136 9% 52,391 46,957 12%
Free cash flow (2) 11,465 2,376 383% 58,439 42,658 37%
Select Balance Sheet Data
Total assets $ 1,409,447 $ 1,336,505 5%
Net plant 1,145,725 1,076,636 6%
Operating Data
Customers 774,928 763,260 2%
Employees 1,480 1,533 -3%
(1) Operating income plus depreciation.
(2) Operating cash flow less capital
expenditures.
Note: Quarter ended information is not presented where it is the same as year to
date.
Citizens Utilities Company and Subsidiaries
Financial and Operating Data by Service
For the quarter ended For the nine months ended
September 30, September 30,
---------------------- -------------------------------
% %
(Dollars in thousands, except operating data) 1997 1996 Change 1997 1996 Change
--------------------------------------------------------------
Citizens Public Services
Natural Gas
Select Income Statement Data
Revenues
Residential distribution $ 17,450 $ 17,498 0% $ 101,675 $ 94,398 8%
Commercial distribution 7,436 7,048 6% 38,203 34,799 10%
Industrial distribution 7,573 7,027 8% 21,871 27,072 -19%
Municipal distribution 272 220 24% 2,316 1,689 37%
Total distribution 32,731 31,793 3% 164,065 157,958 4%
Transportation 437 394 11% 1,819 1,692 8%
Other 2,185 2,239 -2% 6,966 6,835 2%
Total revenues 35,353 34,426 3% 172,850 166,485 4%
Natural gas purchased 16,419 16,445 0% 94,598 91,557 3%
Gross margin 18,934 17,981 5% 78,252 74,928 4%
Depreciation 4,007 1,109 261% 11,915 7,682 55%
Operating and maintenance expenses 13,182 12,913 2% 38,446 43,591 -12%
Operating income 1,745 3,959 -56% 27,891 23,655 18%
Nonrecurring charges - - 12,657 -
Operating income/(loss) including nonrecurring charges 1,745 3,959 -56% 15,234 23,655 -36%
Operating margin excluding nonrecurring charges 5% 12% 16% 14%
Cash Flow and Capital Expenditure Data
Operating cash flow (1) $ 5,752 $ 5,068 13% $ 39,806 $ 31,337 27%
Capital expenditures 9,714 6,287 55% 24,196 16,527 46%
Free cash flow (2) (3,962) (1,219) -225% 15,610 14,810 5%
Select Balance Sheet Data
Total assets $ 376,028 $ 339,897 11%
Net plant 294,947 272,439 8%
Operating Data
Customers 372,469 365,595 2%
Employees 796 828 -4%
Customers per employee 468 442 6%
Billion Cubic Feet of gas throughput (BCF) 10.2 11.8 -14% 50.7 51.8 -2%
(1) Operating income plus depreciation.
(2) Operating cash flow less capital expenditures.
Note: Quarter ended information is not presented where it is the same as year to
date.
Citizens Utilities Company and Subsidiaries
Financial and Operating Data by Service
For the quarter ended For the nine months ended
September 30, September 30,
---------------------- -------------------------------
% %
(Dollars in thousands, except operating data) 1997 1996 Change 1997 1996 Change
--------------------------------------------------------------
Citizens Public Services
Electric
Select Income Statement Data
Revenues
Residential distribution $ 23,754 $ 23,815 0% $ 63,564 $ 60,366 5%
Commercial distribution 15,841 15,389 3% 43,546 41,526 5%
Industrial distribution 11,076 11,019 1% 32,682 32,112 2%
Municipal distribution 2,299 2,149 7% 6,370 6,077 5%
Total distribution 52,970 52,372 1% 146,162 140,081 4%
Transmission 709 546 30% 2,020 1,831 10%
Other 1,303 (268) 586% 3,232 1,555 108%
Total revenues 54,982 52,650 4% 151,414 143,467 6%
Electric energy and fuel oil purchased 27,766 26,407 5% 72,936 70,274 4%
Gross margin 27,216 26,243 4% 78,478 73,193 7%
Depreciation 5,589 4,412 27% 16,767 13,209 27%
Operating and maintenance expenses 12,647 22,931 -45% 36,576 46,419 -21%
Operating income 8,980 (1,100) 916% 25,135 13,565 85%
Nonrecurring charges - - 20,523 -
Operating income/(loss) including nonrecurring charges 8,980 (1,100) 916% 4,612 13,565 -66%
Operating margin excluding nonrecurring charges 16% -2% 17% 9%
Cash Flow and Capital Expenditure Data
Operating cash flow (1) $ 14,569 $ 3,312 340% $ 41,902 $ 26,774 57%
Capital expenditures 3,684 8,052 -54% 11,449 17,920 -36%
Free cash flow (2) 10,885 (4,740) 330% 30,453 8,854 244%
Select Balance Sheet Data
Total assets $ 485,806 $ 491,397 -1%
Net plant 393,506 392,035 0%
Operating Data
Customers 110,711 108,432 2%
Employees 321 338 -5%
Customers per employee 345 321 8%
Megawatt hours sold 483,010 488,107 -1% 1,257,772 1,261,467 0%
Megawatt hours generated 85,418 86,289 -1% 259,646 261,501 -1%
Megawatt hours purchased 461,134 443,059 4% 1,168,946 1,114,792 5%
(1) Operating income plus depreciation.
(2) Operating cash flow less capital expenditures.
Note: Quarter ended information is not presented where it is the same as year to
date.
Citizens Utilities Company and Subsidiaries
Financial and Operating Data by Service
For the quarter ended For the nine months ended
September 30, September 30,
---------------------- -------------------------------
% %
(Dollars in thousands, except operating data) 1997 1996 Change 1997 1996 Change
--------------------------------------------------------------
Citizens Public Services
Water/Wastewater
Select Income Statement Data
Revenues
Residential distribution $ 19,071 $ 19,006 0% $ 52,932 $ 52,783 0%
Commercial distribution 4,259 4,021 6% 10,357 10,016 3%
Industrial distribution 296 273 8% 729 608 20%
Other 881 759 16% 2,523 2,040 24%
Total revenues 24,507 24,059 2% 66,541 65,447 2%
Depreciation 2,966 2,770 7% 9,027 8,416 7%
Operating and maintenance expenses 13,659 11,927 15% 37,419 33,943 10%
Operating income 7,882 9,362 -16% 20,095 23,088 -13%
Nonrecurring charges - - 2,696 -
Operating income including nonrecurring charges 7,882 9,362 -16% 17,399 23,088 -25%
Operating margin excluding nonrecurring charges 32% 39% 30% 35%
Cash Flow and Capital Expenditure Data
Operating cash flow (1) $ 10,848 $ 12,132 -11% $ 29,122 $ 31,504 -8%
Capital expenditures 6,306 3,797 66% 16,746 12,510 34%
Free cash flow (2) 4,542 8,335 -46% 12,376 18,994 -35%
Select Balance Sheet Data
Total assets $ 547,613 $ 505,211 8%
Net plant 457,273 412,162 11%
Operating Data
Customers 291,748 289,233 1%
Employees 363 367 -1%
Customers per employee 804 788 2%
Billions of gallons of water delivered 10.3 10.9 -6% 24.4 25.1 -3%
Billions of gallons of wastewater treated 1.1 1.3 -15% 3.9 4.4 -11%
(1) Operating income plus depreciation.
(2) Operating cash flow less capital expenditures.
Note: Quarter ended information is not presented where it is the same as year to
date.
The foregoing information is unaudited and should be read in conjunction with
the financial statements and footnotes included in the Company's Form 10-K for
the three years ended December 31, 1996 and Form 10-Q for the nine months ended
September 30, 1997 filed with the Securities and Exchange Commission.
Allocations of expense and other items among services and sources of revenues
are derived from the Company's books with certain adjustments. The information
is not necessarily that which would be presented for a single service on a
stand-alone basis. The Company believes its primary risk factors include, but
are not limited to: 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.
Any and all Company information should be evaluated in light of these important
risk factors.