EXHIBIT 99.1
(COMMONWEALTH LOGO)
FOR IMMEDIATE RELEASE
COMMONWEALTH ENERGY CORPORATION ANNOUNCES RESULTS FOR FOURTH QUARTER AND YEAR
ENDED JULY 31, 2003
Tustin, California, October 30, 2003... Commonwealth Energy Corporation, a
leading U.S. electric service provider, announced fourth quarter and full year
results for the year ended July 31, 2003.
Commonwealth Energy's revenues for the fourth quarter of fiscal 2003 were $62.2
million, up 76% as compared to revenues of $35.3 million for the same quarter of
2002. The Company's fiscal 2003 fourth quarter net income was $4.3 million, or
$.15 per diluted share, compared with $3.3 million, or $.11 per diluted share
for the fourth quarter of fiscal 2002, a 36% increase. The Company's sales
growth during the fourth quarter of fiscal 2003 was driven by a significant
increase in the Pennsylvania market which was up $12.9 million, or 118% versus
fiscal 2002's fourth quarter. Michigan, during its first year of operations, had
fourth quarter sales of $7.9 million. California's sales reflect a fourth
quarter increase of $6.0 million attributable to a green credit payment of $5.6
million representing the final seven months of fiscal 2002 and the first eight
months of 2003. The increase in net income was attributable primarily to the
California Green Credit received from the State of California partly offset by
the Historical Procurement Charges in the Southern California Edison territory,
and legal fees incurred to defend the Company in various legal matters.
Commonwealth Energy's revenues for fiscal 2003 were $165.5 million, up 41% as
compared to revenues of $117.8 million for fiscal year 2002. The Company's net
income for fiscal 2003 was $5.4 million, or $0.18 per diluted share, compared
with $5.2 million, or $.16 per diluted share for fiscal 2002, a 13% increase.
California's sales of $92.7 million were up 18% versus fiscal 2002.
Pennsylvania's sales were up 45%, increasing to $56.9 million. Michigan added
$15.9 million during its initial year of operations in fiscal 2003. The increase
in net income was attributable primarily to the substantial revenue growth
versus fiscal 2002 combined with the Green Credit payment received from the
State of California. Major factors that partially offset the favorable
influences were the California Historical Procurement Charge, increased cost of
energy in California, litigation award relating to a jury verdict returned
against the Company, loss on equity investments, and litigation expenses for the
Company defending itself against litigations in which the Company was a
defendant.
The Company at July 31, 2003 had total assets of $125.9 million, equity of $93.0
million, unrestricted cash of $40.9 million and no long-term debt.
Ian Carter, Commonwealth Energy's Chairman and Chief Executive Officer stated,
"The fourth quarter and full year's financial performances reflect solid sales
growth. Fiscal 2003's profit increase over the prior year is primarily
attributable to the Company's sales growth and containment of operating
expenses. This increase in revenue allowed us to overcome several unforeseen
negative factors and reflects our continued growth in net income. Our geographic
market diversification initiatives helped us achieve our goals."
ABOUT COMMONWEALTH ENERGY CORPORATION
Headquartered in Tustin, California, and operating under the brand name
"electricAmerica," Commonwealth Energy Corporation is one of the largest energy
service providers in California, and also provides retail electric service to
the Philadelphia, Pennsylvania and Detroit, Michigan market areas. Commonwealth
is licensed by the Federal Energy Regulatory Commission as a power marketer and
is a recognized leader in the deregulated energy marketplace, offering retail
electricity and energy efficiency
products and services. Commonwealth currently serves commercial, industrial and
residential electricity customers in multiple U.S. markets.
For more information about Commonwealth, please contact: Roy Reeves, Vice
President of Marketing, Commonwealth Energy Corporation, 15901 Red Hill Avenue,
Suite 100, Tustin, California 92780; Telephone: 1-800-ELECTRIC; e-mail:
rreeves@electric.com.
FORWARD LOOKING STATEMENTS
This press release contains information about future expectations, plans and
prospects that may constitute forward-looking statements for purposes of the
Safe Harbor provisions under the Private Securities Litigation Reform Act of
1995. For this purpose, any statement contained herein, including those of our
Chairman and CEO, that are not statements of historical fact may be deemed to be
forward-looking statements. Without limiting the foregoing, the words "believe,"
"anticipate," "expect," "estimate," "await," "continue," "intend," "plan" and
similar expressions, are intended to identify forward-looking statements and
projections (which include statements concerning plans and objectives of
management for future operations) that are based on management's belief, as well
as assumptions made by, and information currently available to, management.
While the Company believes that its expectations are based upon reasonable
assumptions, there can be no assurances that the Company's goals and strategy
will be realized. Numerous factors, including risks and uncertainties, may
affect the Company's actual results and may cause results to differ materially
from those expressed in forward-looking statements made by or on behalf of the
Company. Some of these factors include: legislative and regulatory initiatives
regarding deregulation and restructuring of the electric utility industry; the
extent and timing of the entry of additional competition in the markets of
Commonwealth Energy's subsidiaries; financial market conditions and the results
of Commonwealth Energy's financing efforts; changes in commodity prices and
interest rates; weather and other natural phenomena; performance of business
strategies that the Company has initiated; the success of efforts to invest in
and develop new opportunities; the Company's credit risks and other factors
detailed in the Company's Form 10-K and other periodic reports and registration
statements filed with the SEC. Commonwealth Energy specifically disclaims any
obligation to update or revise any forward-looking statement whether as a result
of new information, future developments or otherwise.
SUMMARY FINANCIAL RESULTS: FOURTH QUARTER ENDED JULY 31,
(In thousands except per share data) 2003 2002 % Change
---- ---- --------
(Unaudited) (Unaudited)
Net revenue $ 62,244 $ 35,326 76%
Direct energy costs 47,549 23,650 101%
Operating expenses 6,555 5,416 21%
Income from operations 8,140 6,260 30%
Loss on equity investments 82 (160) --
Minority interest 187 -- --
Interest income, net 105 171 (39%)
Income before income taxes 8,514 6,271 36%
Provision for income taxes 4,249 2,925 45%
Net income 4,265 3,346 27%
Earnings per share - basic $ 0.15 $ 0.12 25%
Earnings per share - fully diluted $ 0.15 $ 0.11 36%
SUMMARY FINANCIAL RESULTS: TWELVE MONTHS ENDED JULY 31,
(In thousands except per share data) 2003 2002 % Change
---- ---- --------
(Audited) (Audited)
Net revenue $ 165,526 $ 117,768 41%
Direct energy costs 128,179 87,340 47%
Operating expenses 24,947 21,918 14%
Income from operations 12,400 8,510 46%
Loss on litigation award (2,200) --
Loss on equity investments (567) (160) 254%
Minority interest 187 -- --
Interest income, net 715 939 (24%)
Income before income taxes 10,535 9,289 13%
Provision for income taxes 5,113 4,125 24%
Net income 5,422 5,164 5%
Earnings per share - basic $ 0.19 $ 0.19 0%
Earnings per share - fully diluted $ 0.18 $ 0.16 13%
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(In thousands) (Audited) (Audited)
July 31, 2003 July 31, 2002
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Assets
Cash & cash equivalents $ 40,921 $ 43,042
Accounts receivable, net 37,861 21,340
Prepaid and other current assets 9,692 7,736
Restricted cash and cash equivalents 20,773 14,186
Property, and equipment, net 2,984 3,912
Goodwill 3,007 --
Other assets 10,632 11,013
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Total assets $125,870 $101,229
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Liabilities and Shareholders' Equity
Accounts payable $ 24,936 $ 8,969
Accrued liabilities 7,127 4,308
Deferred income tax liabilities 187 --
Minority interest 603 --
Shareholders' equity 93,017 87,952
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Total liabilities and shareholders'
equity $125,870 $101,229
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