EXHIBIT 99.2
Citizens Utilities Company and Subsidiaries
Consolidated Financial Data
(unaudited)
For the quarter ended For the year ended
December 31, December 31,
--------------------- ------------------
(Dollars in thousands) % %
Income Statement Data 1998 1997 Change 1998 1997 Change
-----------------------------------------------------------
Revenues $ 393,883 $370,868 6% $1,542,372 $ 1,414,386 9%
Cost of services 91,101 84,840 7% 359,762 333,561 8%
Sales and marketing expenses 13,529 7,301 85% 47,325 46,073 3%
Depreciation and amortization 64,365 61,465 5% 257,844 235,812 9%
Other operating expenses 180,495 159,103 13% 688,624 592,008 16%
Operating income 44,393 58,159 -24% 188,817 206,932 -9%
Special items (1) (4,343) - (10,648) (191,090)
Operating income including special items 40,050 58,159 -31% 178,169 15,842 1025%
Investment and other income 18,580 8,789 111% 53,916 42,931 26%
Interest expense 27,666 27,995 -1% 112,239 107,584 4%
Special items (2) (31,905) 78,734 (34,239) 72,504
Income taxes (3,852) 36,950 -110% 22,337 7,383 203%
Convertible preferred dividends 1,553 1,553 0% 6,210 6,210 0%
Net income as reported 1,358 79,184 -98% 57,060 10,100 465%
Net income excluding special items 23,730 28,007 -15% 85,658 94,087 -9%
Net income excluding special items and ELI 31,926 36,014 -11% 120,376 117,912 2%
Cash Flow and Capital Expenditure Data (excludes special items)
EBITDA (3) 127,337 132,414 -4% 500,577 485,676 3%
EBITDA excluding ELI (3) 142,199 136,063 5% 545,190 511,945 6%
Cash flow from operations 37,852 54,443 -30% 268,940 260,553 3%
Cash flow from operations excluding ELI 45,121 53,592 -16% 305,716 277,742 10%
Capital expenditures 181,676 206,253 -12% 522,032 524,489 0%
Capital expenditures excluding ELI 122,204 150,345 -19% 322,032 399,940 -19%
Free cash flow (4) (143,824) (151,810) 5% (253,092) (263,936) 4%
Free cash flow excluding ELI (4) (77,083) (96,753) 20% (16,316) (122,198) 87%
Select Balance Sheet Data
Cash and investments $ 446,683 $ 433,662 3%
Total assets 5,292,932 4,872,852 9%
Net plant 4,048,623 3,667,793 10%
Long-term debt 1,900,246 1,706,532 11%
Equity (5) 1,994,021 1,880,461 6%
Shares of common stock outstanding 259,149 258,609 0%
Weighted average shares outstanding (6) 259,679 258,868 0% 258,879 260,226 -1%
Per-Share Data (6)
Basic and diluted net income per share of
common stock as reported $ .01 $ .31 -97% $ .22 $ .04 450%
Basic net income per share of common stock
excluding special items $ .09 $ .11 -18% $ .33 $ .36 -8%
Basic net income per share of common stock
excluding special items and ELI $ .12 $ .14 -14% $ .47 $ .45 4%
Operating cash flow per share $ .14 $ .21 -33% $ 1.01 $ .89 13%
Operating cash flow per share excluding special items $ .15 $ .21 -29% $ 1.04 $ 1.00 4%
Operating cash flow per share excluding special items
and ELI $ .17 $ .21 -19% $ 1.18 $ 1.07 10%
Book value per share $ 6.93 $ 6.45 7%
Other Financial Data
Long-term debt to long-term debt and equity 49% 48%
Long-term debt to long-term debt and equity excluding ELI 44% 47%
Interest coverage (7) 3.3x 7.4x 4.1x 3.4x
Interest coverage excluding special items (7) 4.6x 4.7x 4.5x 4.5x
Interest coverage excluding special items and ELI (7) 5.1x 4.9x 4.9x 4.8x
Common equity market capitalization (in billions) $ 2.1 $ 2.4
Equity market capitalization (in billions) (8) $ 2.2 $ 2.6
Market capitalization (in billions) (9) $ 4.1 $ 4.4
ELI public enterprise value (in billions) (10) $ 0.7 $ 0.8
(1) For 1998, special items include Y2K and separation costs. For 1997, special
items include the charges to earnings for certain assets deemed no longer
recoverable, the effects of certain regulatory commission orders and the
cutback of certain long distance service operations.
(2) For 1998, special items include the write down of the Company's investment
in HTCC and the cumulative effect in accounting principle at ELI. For 1997,
special items include the nonoperating gain on sale of subsidiary stock
offset by charges to earnings for certain regulatory commission orders.
(3) Earnings before interest expense, income taxes, depreciation and
amortization.
(4) Cash flow from operations less capital expenditures.
(5) Includes convertible preferred securities.
(6) Adjusted for subsequent stock dividends and stock splits and used in the
calculation of all per share data.
(7) EBITDA divided by interest expense.
(8) Includes market value of convertible preferred securities.
(9) Equity market capitalization plus market value of long-term debt.
(10) Includes common equity market capitalization plus net 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 year ended
December 31, December 31,
--------------------- -----------------------
% %
(Dollars in thousands, except operating data) 1998 1997 Change 1998 1997 Change
------------------------------ ---------------------------------
Citizens Communications
Select Income Statement Data
Revenues
Network access services $ 116,686 $ 100,606 16% $ 432,018 $ 403,990 7%
Local network services 67,486 61,293 10% 262,239 250,521 5%
Long distance services 21,962 27,706 -21% 96,584 104,914 -8%
Directory services 7,934 7,693 3% 31,691 31,982 -1%
Other 9,816 12,496 -21% 44,914 48,922 -8%
Eliminations (1) (9,321) (6,242) 49% (32,407) (23,573) 37%
Total revenues 214,563 203,552 5% 835,039 816,756 2%
Cost of services (network expenses) 21,899 19,387 13% 89,514 96,303 -7%
Sales and marketing expenses 3,992 5,265 -24% 19,744 32,168 -39%
Depreciation 44,467 45,618 -3% 181,656 175,363 4%
Other operating expenses 110,962 101,272 10% 414,772 399,693 4%
Eliminations (1) (10,117) (6,968) 45% (35,468) (26,914) 32%
Operating income 43,360 38,978 11% 164,821 140,143 18%
Special items (2) (2,914) - (7,254) (142,723)
Operating income/(loss) including special items 40,446 38,978 4% 157,567 (2,580) 6207%
Operating margin 20% 19% 20% 17%
Cash Flow and Capital Expenditure Data
Operating cash flow (3) $ 87,827 $ 84,596 4% $ 346,477 $ 315,506 10%
Capital expenditures 69,945 90,851 -23% 201,453 263,011 -23%
Free cash flow (4) 17,882 (6,255) 386% 145,024 52,495 176%
EBITDA margin (5) 41% 42% 41% 39%
Select Balance Sheet Data
Total assets $2,434,183 $2,379,936 2%
Net plant 2,122,794 2,024,220 5%
Operating Data
Access lines 951,513 895,880 6%
Long distance customers- in territory 230,871 236,000 -2%
- out of territory 8,101 22,000 -63%
- total 238,972 258,000 -7%
Revenue per access line $ 225 $ 227 -1% $ 878 $ 912 -4%
In-territory access minutes of use (in millions) 1,073 1,147 -6% 4,526 4,496 1%
Citizens' long distance minutes of use (in millions)
-in territory 119 121 -2% 483 435 11%
-out of territory 35 99 -65% 221 414 -47%
-total 154 220 -30% 704 849 -17%
Citizens' long distance in territory minutes of use market share 19% 20%
Citizens' long distance in territory customer market share 24% 26%
(1) Eliminations represent network access revenues received by the Company's
local exchange operations from its long-distance and competitive local
exchange operations.
(2) For 1998, special items include Y2K and separation costs. For 1997, special
items include the charge to earnings.
(3) Operating income excluding special items plus depreciation. This is the equivalent of sector EBITDA.
(4) Operating cash flow less capital expenditures.
(5) Operating cash flow divided by total revenues.
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 year ended
December 31, December 31,
---------------------- -------------------------
% %
(Dollars in thousands, except operating data) 1998 1997 Change 1998 1997 Change
--------------------------------- ------------------------------------
Electric Lightwave, Inc. (1)
Select Income Statement Data
Revenues
Network services $ 10,102 $ 10,222 -1% $ 36,589 $ 33,522 9%
Local telephone services 14,389 4,429 225% 38,169 10,565 261%
Long distance services 6,076 2,042 198% 12,309 8,140 51%
Data services 3,149 2,267 39% 13,813 8,857 56%
Eliminations (1) (796) (726) 10% (3,061) (3,341) -8%
Total revenues 32,920 18,234 81% 97,819 57,743 69%
Cost of services (network expenses) 19,568 5,329 267% 50,957 29,546 72%
Gross margin 13,352 12,905 3% 46,862 28,197 66%
Sales and marketing expenses 9,537 5,189 84% 27,581 13,905 98%
Depreciation 5,248 4,274 23% 17,002 11,167 52%
Other operating expenses 23,388 15,365 52% 77,926 40,561 92%
Operating loss (24,821) (11,923) -108% (75,647) (37,436) -102%
Special items (2) (276) - (276) (10,765)
Operating loss including special items (25,097) (11,923) -110% (75,923) (48,201) -58%
Cash Flow and Capital Expenditure Data
Operating cash flow (3) $ (19,573) $ (7,649) -156% $ (58,645) $ (26,269) -123%
Capital expenditures 59,472 55,908 6% 200,000 124,549 61%
Free cash flow (4) (79,045) (63,557) -24% (258,645) (150,818) -71%
Select Balance Sheet Data
Total assets $ 532,309 $ 359,962 48%
Gross plant - owned 528,582 328,664 61%
- leased 108,541 87,426 24%
- total 637,123 416,090 53%
Operating Data
Route miles 3,091 2,494 24%
Fiber miles 181,368 140,812 29%
Customers 1,644 1,165 41%
Buildings connected 766 610 26%
Employees 1,090 573 90%
Revenue per employee $ 30,202 $ 31,822 -5% $ 89,742 $ 100,773 -11%
(1) The Company's facilities based Competitive Local Exchange Carrier (CLEC) subsidiary, Electric Lightwave, Inc.
(ELI). Eliminations reflect intercompany activity between the Company's CLEC and communications operations.
(2) For 1998, special items include Y2K and separation costs. For 1997, special
items include the charge to earnings.
(3) Operating loss excluding special items plus depreciation. This is the equivalent of sector EBITDA.
(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 year ended
December 31, December 31,
------------------------ -------------------------
% %
(Dollars in thousands, except operating data) 1998 1997 Change 1998 1997 Change
---------------------------------- -----------------------------------
Citizens Public Services
Select Income Statement Data
Revenues
Residential distribution $ 73,048 $ 80,695 -9% $ 307,440 $ 298,866 3%
Commercial distribution 44,568 43,565 2% 181,669 135,671 34%
Industrial distribution 22,766 19,574 16% 87,924 74,856 17%
Municipal distribution 2,722 3,450 -21% 11,922 12,136 -2%
Total distribution 143,104 147,284 -3% 588,955 521,529 13%
Transportation / transmission 1,212 1,477 -18% 5,262 5,316 -1%
Other 2,084 321 549% 15,297 13,042 17%
Total revenues 146,400 149,082 -2% 609,514 539,887 13%
Cost of services (1) 59,751 67,092 -11% 254,759 234,626 9%
Gross margin 86,649 81,990 6% 354,755 305,261 16%
Depreciation 14,650 11,573 27% 59,186 49,282 20%
Other operating expenses 46,144 39,313 17% 195,926 151,754 29%
Operating income 25,855 31,104 -17% 99,643 104,225 -4%
Special items (2) (1,153) - (3,118) (37,602)
Operating income including special items 24,701 31,104 -21% 96,525 66,623 45%
Cash Flow and Capital Expenditure Data
Operating cash flow (3) $ 40,505 $ 42,677 -5% $ 158,829 $ 153,507 3%
Capital expenditures 44,758 51,204 -13% 95,456 103,595 -8%
Free cash flow (4) (4,253) (8,527) 50% 63,373 49,912 27%
Select Balance Sheet Data
Total assets $ 1,631,635 $1,580,181 3%
Net plant 1,344,643 1,269,271 6%
Operating Data
Customers 867,300 845,600 3%
Employees 1,787 1,719 4%
Customers per employee 485 492 -1%
Gross margin (net revenue) per employee $ 48,489 $ 47,696 2% $ 198,520 $ 177,581 12%
(1) Natural gas, electric energy and fuel oil purchased.
(2) For 1998, special items include Y2K and separation costs. For 1997, special
items include the charge to earnings.
(3) Operating income excluding special items plus depreciation. This is the equivalent of sector EBITDA.
(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
Financial and Operating Data by Service
For the quarter ended For the year ended
December 31, December 31,
------------------------- ------------------------
% %
(Dollars in thousands, except operating data) 1998 1997 Change 1998 1997 Change
----------------------------------- ----------------------------------
Citizens Public Services
Gas
Select Income Statement Data
Revenues
Residential distribution $ 32,573 $ 43,341 -25% $ 150,386 $ 145,016 4%
Commercial distribution 25,790 25,801 0% 109,259 64,004 71%
Industrial distribution 12,905 8,495 52% 47,497 30,366 56%
Municipal distribution 703 935 -25% 3,657 3,251 12%
Total distribution 71,971 78,572 -8% 310,799 242,637 28%
Transportation 622 803 -23% 2,435 2,622 -7%
Other 2,958 (127) 2429% 12,189 6,839 78%
Total revenues 75,551 79,248 -5% 325,423 252,098 29%
Cost of services (gas purchased) 39,596 45,302 -13% 166,829 139,900 19%
Gross margin 35,955 33,946 6% 158,594 112,198 41%
Depreciation 6,955 3,672 89% 24,084 15,587 55%
Other operating expenses 18,726 16,258 15% 90,753 54,704 66%
Operating income 10,274 14,016 -27% 43,757 41,907 4%
Special items (1) (567) - (1,532) (12,707)
Operating income including special items 9,707 14,016 -31% 42,225 29,200 45%
Cash Flow and Capital Expenditure Data
Operating cash flow (2) $ 17,229 $ 17,688 -3% $ 67,841 $ 57,494 18%
Capital expenditures 18,275 23,684 -23% 45,768 47,880 -4%
Free cash flow (3) (1,046) (5,996) 83% 22,073 9,614 130%
Select Balance Sheet Data
Total assets $ 554,028 $ 530,696 4%
Net plant 444,126 423,533 5%
Operating Data
Customers 457,200 446,100 2%
Employees 958 923 4%
Customers per employee 477 483 -1%
Gross margin (net revenue) per employee $ 37,531 $ 36,778 2% $ 165,547 $ 121,558 36%
Billion Cubic Feet of gas throughput (BCF) 29.0 25.0 16% 108.8 80.3 35%
(1) For 1998, special items include Y2K and separation costs. For 1997, special
items include the charge to earnings.
(2) Operating income excluding special items plus depreciation. This is the equivalent of sector EBITDA.
(3) 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 year ended
December 31, December 31,
------------------------ ------------------------
% %
(Dollars in thousands, except operating data) 1998 1997 Change 1998 1997 Change
---------------------------------- ----------------------------------
Citizens Public Services
Electric
Select Income Statement Data
Revenues
Residential distribution $ 17,918 $ 19,544 -8% $ 80,887 $ 83,108 -3%
Commercial distribution 14,410 13,909 4% 57,617 57,455 0%
Industrial distribution 9,598 10,847 -12% 39,393 43,529 -10%
Municipal distribution 2,019 2,515 -20% 8,265 8,885 -7%
Total distribution 43,945 46,815 -6% 186,162 192,977 -4%
Transmission 590 674 -12% 2,827 2,694 5%
Other 553 (833) 166% 1,318 2,399 -45%
Total revenues 45,088 46,656 -3% 190,307 198,070 -4%
Cost of services (electric energy and fuel oil purchased) 20,155 21,790 -8% 87,930 94,726 -7%
Gross margin 24,933 24,866 0% 102,377 103,344 -1%
Depreciation 5,104 5,428 -6% 22,733 22,195 2%
Other operating expenses 12,683 8,796 44% 51,898 45,372 14%
Operating income 7,146 10,642 -33% 27,746 35,777 -22%
Special items (1) (242) - (653) (22,054)
Operating income including special items 6,904 10,642 -35% 27,093 13,723 97%
Cash Flow and Capital Expenditure Data
Operating cash flow (2) $ 12,250 $ 16,070 -24% $ 50,479 $ 57,972 -13%
Capital expenditures 6,025 12,095 -50% 18,895 23,544 -20%
Free cash flow (3) 6,225 3,975 57% 31,584 34,428 -8%
Select Balance Sheet Data
Total assets $ 479,210 $ 492,926 -3%
Net plant 386,299 388,162 0%
Operating Data
Customers 115,400 111,800 3%
Employees 300 303 -1%
Customers per employee 385 369 4%
Gross margin(net revenue) per employee $ 83,110 $ 82,066 1% $ 341,257 $ 341,069 0%
Megawatt hours sold 434,844 397,349 9% 1,745,419 1,655,121 5%
Megawatt hours generated 93,873 93,744 0% 367,285 353,390 4%
Megawatt hours purchased 352,252 364,638 -3% 1,533,163 1,533,584 0%
(1) For 1998, special items include Y2K and separation costs. For 1997, special
items include the charge to earnings.
(2) Operating income excluding special items plus depreciation. This is the equivalent of sector EBITDA.
(3) 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 year ended
December 31, December 31,
----------------------- -----------------------
% %
(Dollars in thousands, except operating data) 1998 1997 Change 1998 1997 Change
-------------------------------- --------------------------------
Citizens Public Services
Water/Wastewater
Select Income Statement Data
Revenues
Residential distribution $ 22,557 $ 17,810 27% $ 76,167 $ 70,742 8%
Commercial distribution 4,368 3,855 13% 14,793 14,212 4%
Industrial distribution 263 232 13% 1,034 961 8%
Other (1,427) 1,281 -211% 1,790 3,804 -53%
Total revenues 25,761 23,178 11% 93,784 89,719 5%
Depreciation 2,591 2,473 5% 12,369 11,500 8%
Other operating expenses 14,736 14,259 3% 53,275 51,678 3%
Operating income 8,434 6,446 31% 28,140 26,541 6%
Special items (1) (344) - (933) (2,841)
Operating income including special items 8,090 6,446 26% 27,207 23,700 15%
Cash Flow and Capital Expenditure Data
Operating cash flow (2) $ 11,025 $ 8,919 24% $ 40,509 $ 38,041 6%
Capital expenditures 20,458 15,425 33% 30,793 32,171 -4%
Free cash flow (3) (9,433) (6,506) -45% 9,716 5,870 66%
Select Balance Sheet Data
Total assets $ 598,397 $ 556,559 8%
Net plant 514,218 457,576 12%
Operating Data
Customers 294,700 287,700 2%
Employees 352 364 -3%
Customers per employee 837 790 6%
Revenue per employee $ 73,185 $ 63,676 15% $ 266,432 $ 246,481 8%
Billions of gallons of water delivered 6.8 6.9 -1% 29.6 31.4 -6%
Billions of gallons of wastewater treated 1.1 1.1 0% 5.1 5.0 2%
(1) For 1998, special items include Y2K and separation costs. For 1997, special
items include the charge to earnings.
(2) Operating income excluding special items plus depreciation.
This is the equivalent of sector EBITDA.
(3) 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, 1998 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.