Exhibit 99.1
[GRAPHIC OMITTED][ALLIANT ENERGY]
Alliant Energy
Worldwide Headquarters
4902 North Biltmore Lane
P.O. Box 77007
Madison, WI 53707-1007
www.alliantenergy.com
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News Release
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FOR IMMEDIATE RELEASE Media Contact: Chris Schoenherr (608) 458-3924
Karen Whitmer (608) 458-4839
Investor Relations: Eric Mott (608) 458-3391
ALLIANT ENERGY ANNOUNCES $0.25 PER SHARE INCREASE IN EARNINGS FROM CONTINUING
OPERATIONS IN FIRST QUARTER; ON TARGET TO MEET 2003 EARNINGS GUIDANCE
Alliant Energy continues focusing on the successful execution of its actions
to strengthen its financial profile
MADISON, Wis. - April 28, 2003 - Alliant Energy Corp. (NYSE: LNT) today
reported income (loss) and earnings per share (EPS) from continuing
operations for the first quarter of 2003 of $14.6 million and $0.16,
respectively, compared to ($7.8) million and ($0.09) for the same period in
2002. Alliant Energy's net income (loss) and EPS for the first quarter of
2003 were ($0.5) million and ($0.01), respectively, compared to $9.7 million
and $0.11 for the same period in 2002. Additional details regarding Alliant
Energy's first quarter unaudited earnings are as follows (net income in
millions):
Q1 2003 Q1 2002
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Earnings from continuing operations: Net Income EPS Net Income EPS
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Utility $ 31.0 $ 0.34 $ 27.0 $ 0.30
Non-regulated (AER) (10.7) (0.12) (32.6) (0.36)
Parent and other (5.7) (0.06) (2.2) (0.03)
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Total earnings from continuing operations 14.6 0.16 (7.8) (0.09)
Earnings from discontinued operations: *
Operating results (increase largely due to higher oil/gas prices) 4.0 0.04 (2.4) (0.02)
Non-cash valuation and other accounting adjustments:
Southern Hydro SFAS 133 income 6.8 0.07 19.9 0.22
Discontinuing depreciation, depletion and amortization
of assets held for sale 7.9 0.09 - -
Valuation adjustments and selling costs (27.8) (0.30) - -
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Total earnings from discontinued operations (9.1) (0.10) 17.5 0.20
Cumulative effect of changes in accounting principles (6.0) (0.07) - -
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Net income/(loss) $ (0.5) $ (0.01) $ 9.7 $ 0.11
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* Alliant Energy classified its oil and gas, affordable housing and
Australian businesses as assets held for sale and discontinued operations in
the fourth quarter of 2002 and classified its SmartEnergy business as an
asset held for sale and discontinued operations in the first quarter of 2003.
The higher utility earnings from continuing operations were largely due
to increased gas and electric margins, which were partially offset by higher
operating expenses. The significant improvement in non-regulated results
from continuing operations was primarily due to $0.26 per share of asset
valuation charges recorded in the first quarter of 2002. Improvements in the
results of the underlying operations of Alliant Energy's non-regulated
businesses were largely offset by higher interest expense.
Alliant Energy recorded after-tax valuation adjustments of $26 million
in the first quarter of 2003 to reflect updated estimates of the market
value, less selling costs, of the $1 billion of assets it has classified as
assets held for sale. Alliant Energy anticipates closing on the sale of its
Australian business in late April and expects to realize an after-tax gain
significantly higher than the valuation adjustments recorded in the first
quarter related to Alliant Energy's other assets held for sale. As a result,
the estimated proceeds available to Alliant Energy for debt reduction from
planned asset divestitures remains within a range of $800 million to $1
billion.
Alliant Energy - First Quarter 2003 Earnings
Page 2 of 6
April 28, 2003
"We are very pleased with the significant progress we have made in the
execution of the plans we announced in November 2002 to strengthen our
financial profile and to narrow our strategic focus," said Erroll B. Davis,
Jr., chairman, president and CEO of Alliant Energy. "Our focus will remain on
the continued successful execution of these strategic actions. Given the
significant rate relief we received in the second quarter of 2003, we are
affirming our 2003 earnings guidance for earnings from continuing
operations."
Earnings From Continuing Operations
A summary of Alliant Energy's EPS from continuing operations for the
first quarter is as follows:
2003 * 2002 Variance
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Utility operations:
Gas margins $ .15
Electric margins .05
Operating expenses (.16)
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Total utility operations $ .34 $ .30 .04
Non-regulated operations business units:
McLeodUSA valuation adjustment - (.14) .14
Integrated Services .02 (.06) .08
Energy Technologies - (.04) .04
Investments .01 .01 -
International (.09) (.09) -
Non-regulated Generation (.02) (.01) (.01)
Other (primarily interest expense/income) (.04) (.03) (.01)
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Total non-regulated operations (.12) (.36) .24
Parent company and other (.06) (.03) (.03)
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Earnings per share from continuing operations $ 0.16 $ (0.09) $ 0.25
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* The 2003 EPS amounts have been computed based on the average shares
outstanding in 2002. Alliant Energy reports the dilutive impact of increased
shares outstanding as a separate earnings variance item if it is material.
The higher gas and electric margins resulted from the impact of various
rate increases implemented in 2002 and higher sales volumes largely due to
more favorable weather conditions in the first quarter of 2003 compared to
the same period in 2002 as well as continued modest retail customer growth.
Alliant Energy continued to see modest improvements in the economy in its
utility service territories as evidenced by a 2% increase in electric sales
to industrial customers in the first quarter of 2003 compared to the same
period in 2002. The positive impacts on electric margin noted above were
partially offset by higher purchased power and fuel costs.
The increase in utility operating expenses was primarily due to
increased depreciation and amortization, fossil and nuclear generation and
employee benefits expenses. A significant portion of these cost increases
are being recovered as a result of the rate increases implemented in 2002.
Alliant Energy also received two additional rate orders in April 2003.
"Our domestic utility operations continue as the foundation of Alliant
Energy," said Davis. "They continue to provide safe, reliable and
environmentally sound utility service to our customers and we are pleased
with the continued progress we are making in our various utility rate cases,
which is a key component in improving our financial profile."
Alliant Energy - First Quarter 2003 Earnings
Page 3 of 6
April 28, 2003
In addition to the $0.14 per share asset valuation charge recorded in
the first quarter of 2002 related to Alliant Energy's investment in
McLeodUSA, Alliant Energy also recorded asset valuation charges of $0.06 and
$0.04 per share in the first quarter of 2002 within its Integrated Services
and Energy Technologies business units.
Cumulative Effect of Changes in Accounting Principles
Alliant Energy recorded charges of $0.05 and $0.02 per share in the
first quarter of 2003 for the cumulative effect of changes in accounting
principles related to the adoption on Jan. 1, 2003 of SFAS 143 (Accounting
for Asset Retirement Obligations) and EITF Issue 02-3 (Issues Related to
Accounting for Contracts Involved in Energy Trading and Risk Management
Activities) within its oil and gas (which is being reported as discontinued
operations) and Integrated Services businesses, respectively.
2003 Earnings Guidance
Alliant Energy's 2003 earnings guidance for earnings from continuing
operations is a range of $1.45-1.65 per share, which includes guidance for
its domestic utility operations of $1.75-1.95 per share. This guidance does
not include any potential asset valuation charges that Alliant Energy may
incur in 2003, the impact of certain non-cash SFAS 133 valuation adjustments
or the impact of any cumulative effects of changes in accounting principles.
Alliant Energy is currently unable to provide meaningful earnings guidance
for its discontinued operations given uncertainties related to the timing of
the closing of each asset divestiture, the values realized from each asset
divestiture, the transaction structures Alliant Energy utilizes to exit these
businesses, various other accounting adjustments or other charges and/or
income related to the proposed asset sales and earnings volatility related to
the non-cash valuation adjustments associated with the electricity
derivatives outstanding at Southern Hydro. The guidance also assumes the
four businesses reported as discontinued operations at March 31, 2003,
continue to be classified as held for sale until sold, and no additional
businesses included in the guidance for continuing operations are classified
as held for sale in 2003.
Drivers for Alliant Energy's earnings from continuing operations estimates
include, but are not limited to:
o Normal weather conditions in its domestic and international utility
service territories
o Economic development and sales growth in its utility service territories
o Continuing cost controls and operational efficiencies
o Ability of its domestic and international utility subsidiaries to
recover their operating costs, and to earn a reasonable rate of return,
in current and future rate proceedings as well as their ability to
recover purchased power and fuel costs
o Improved results of its Brazil investments and no material adverse
changes in the rates allowed by the Brazilian regulators
o Improved results from its other non-regulated businesses
o No material permanent declines in the fair market value of, or expected
cash flows from, Alliant Energy's investments
o Other stable business conditions, including an improving economy
o Continued access to the capital markets
o Ability of Alliant Energy to successfully execute its proposed asset
divestitures at values and timelines that are consistent with the
assumptions underlying its earnings guidance
Alliant Energy - First Quarter 2003 Earnings
Page 4 of 6
April 28, 2003
Quarterly Earnings Conference Call
A conference call to review the first quarter 2003 earnings and other financial
issues is scheduled for Monday, April 28 at 10:00 a.m. central time. Alliant
Energy Chairman, President and CEO Erroll B. Davis, Jr. and Chief Financial
Officer Thomas M. Walker will host the call. The conference call is open to
the public and can be accessed in two ways. Interested parties may listen to
the call by dialing 877-809-7604 (no pass code is needed) or by listening to
a webcast of the call on the company's Web site at
www.alliantenergy.com/investors. A replay of the call will be available
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through May 2, 2003, at 800-642-1687 (conference ID #9594554). An archive of
the webcast will be available on the company's Web site at
www.alliantenergy.com/investors.
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Alliant Energy is the parent company of two public utility companies -
Interstate Power and Light Company (IP&L) and Wisconsin Power and Light
Company (WP&L) - and of Alliant Energy Resources, Inc., the parent company of
Alliant Energy's non-regulated operations. Alliant Energy is an
energy-services provider that serves more than three million customers
worldwide.
This press release includes forward-looking statements. These
forward-looking statements can be identified as such because the statements
include words such as "expects" or "estimates" or other words of similar
import. Similarly, statements that describe future financial performance or
plans or strategies are also forward-looking statements. Such statements are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those currently anticipated. Actual results could be
affected by such factors as: the factors listed in the "2003 Earnings
Guidance" section of this press release; regulatory or governmental actions,
including with respect to rates and payment of dividends; economic and
political conditions in Alliant Energy's domestic and international service
territories; unanticipated issues related to Alliant Energy's ability to
implement its strategic plan, especially as it relates to international
investments; Alliant Energy's ability to identify and successfully complete
proposed asset divestitures, acquisitions and development projects; material
changes in the value of Alliant Energy's investments; access to technological
developments; and inflation rates. These factors should be considered when
evaluating the forward-looking statements and undue reliance should not be
placed on such statements. Without limitation, the expectations with respect
to projected earnings in the "2003 Earnings Guidance" section of this press
release are forward-looking statements and are based in part on certain
assumptions made by Alliant Energy, some of which are referred to in the
forward-looking statements. Alliant Energy cannot provide any assurance that
the assumptions referred to in the forward-looking statements or otherwise
are accurate or will prove to be correct. Any assumptions that are inaccurate
or do not prove to be correct could have a material adverse effect on Alliant
Energy's ability to achieve the estimates or other targets included in the
forward-looking statements. The forward-looking statements included herein
are made as of the date hereof and Alliant Energy undertakes no obligation to
update publicly such statements to reflect subsequent events or
circumstances.
Note: Unless otherwise noted, all "per share" references in this release
refer to earnings per diluted share.
Alliant Energy - First Quarter 2003 Earnings
Page 5 of 6
April 28, 2003
ALLIANT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months Ended March 31,
2003 2002
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(in thousands, except per share amounts)
Operating revenues:
Electric utility $443,025 $370,762
Gas utility 257,881 128,241
Non-regulated and other 194,884 72,433
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895,790 571,436
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Operating expenses:
Electric and steam production fuels 72,415 62,610
Purchased power 129,315 72,337
Cost of utility gas sold 188,325 83,756
Other operation and maintenance 315,646 185,399
Depreciation and amortization 81,972 75,682
Taxes other than income taxes 26,076 27,788
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813,749 507,572
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Operating income 82,041 63,864
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Interest expense and other:
Interest expense 55,514 44,487
Interest income from loans to discontinued operations, net (3,254) (3,366)
Equity (income) loss from unconsolidated investments 4,254 (3,213)
Allowance for funds used during construction (3,861) (1,654)
Preferred dividend requirements of subsidiaries 4,158 1,682
Impairment of available-for-sale securities of McLeodUSA Inc. -- 21,174
Miscellaneous, net 2,415 9,604
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59,226 68,714
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Income (loss) from continuing operations before income taxes 22,815 (4,850)
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Income taxes 8,176 2,941
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Income (loss) from continuing operations 14,639 (7,791)
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Income (loss) from discontinued operations, net of tax (9,134) 17,534
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Income before cumulative effect of changes in
accounting principles, net of tax 5,505 9,743
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Cumulative effect of changes in accounting
principles, net of tax (5,983) --
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Net income (loss) ($478) $9,743
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Average number of common shares outstanding (diluted) 92,538 90,054
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Earnings per average common share (basic and diluted):
Income (loss) from continuing operations $0.16 ($0.09)
Income (loss) from discontinued operations (0.10) 0.20
Cumulative effect of changes in accounting principles (0.07) --
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Net income (loss) ($0.01) $0.11
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Dividends declared per common share $0.25 $0.50
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Alliant Energy - First Quarter 2003 Earnings
Page 6 of 6
April 28, 2003
KEY STATISTICS
For the Twelve Months
Ended March 31,
2003 2002
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(in thousands, except
per share amounts)
Operating revenues $2,762,695 $2,356,039
Income (loss) from continuing operations $109,886 $102,444
Net income $96,660 $172,906
Average common shares (diluted) 91,580 83,350
Earnings per share (diluted) $1.06 $2.07
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For the Three Months
Ended March 31,
2003 2002
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Domestic utility electric sales from ultimate customers 6,353 6,015
(thousands of MWh)
Total domestic utility electric sales 7,735 7,261
(thousands of MWh)
Utility gas sold & transported 41,605 35,532
(thousands of dekatherms)
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Book value per share at March 31 $19.93 $21.19
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