SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
[]
Date of report (Date of earliest event reported): April 28, 2003
CINERGY CORP.
(Exact Name of Registrant as Specified in Its Charter)
Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-11377 CINERGY CORP. 31-1385023
(A Delaware Corporation)
139 East Fourth Street
Cincinnati, Ohio 45202
(513) 421-9500
Item 12. Results of Operation and Financial Condition
The information in this Form 8-K is furnished under "Item 12. Results of
Operations and Financial Condition" in accordance with SEC Release No. 33-8216.
The information in this Form 8-K and the Exhibits attached hereto shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934, as amended, nor shall they be deemed incorporated by reference in any
filing under the Securities Act of 1933, as amended, except as shall be
expressly set forth by specific reference in such filing.
CINERGY REPORTS INCREASED FIRST QUARTER EARNINGS
CINCINNATI - Cinergy Corp. (NYSE:CIN) today reported first quarter 2003 earnings
of $0.95 per share on a diluted basis, compared with earnings of $0.52 per share
on a diluted basis in the first quarter 2002.
Results for the first quarter 2003 included a net gain of $0.15 per share, as
compared to a charge of $0.06 per share for the same period in 2002, for the
cumulative effect of a change in accounting principles. Also included in the
first quarter results for 2002 was a charge of $0.02 related to unrecoverable
costs from a gas distribution rate order.
First quarter earnings from the Energy Merchant segment were $0.55 per share in
2003 compared with $0.11 in the same period in 2002. Excluding the net gain of
$0.21 per share from the required change in accounting principles, the remaining
increase of $0.23 per share was primarily attributable to improved marketing,
trading and origination results and better performance in the generation and
supply contracts area. First quarter average wholesale electricity and gas
prices were up 85 percent and 150 percent, respectively, over the same period in
2002.
First quarter earnings from the Regulated Operations segment were $0.43 per
share in 2003 compared with $0.44 per share a year earlier. Colder than normal
weather was offset by increased operating and depreciation expenses. Heating
degree-days for the quarter were up 22 percent from the same quarter last year.
The Power Technology and Infrastructure Services segment lost $0.03 per share,
which was comparable to last year's results.
New winter peak load records were set in January for Cinergy and its operating
companies, PSI Energy, Inc., and The Cincinnati Gas & Electric Company.
Cinergy's winter peak increased 5.3 percent to 9,624 megawatts, while PSI's peak
increased 6.3 percent and CG&E's increased 2.7 percent.
In the first quarter, the company further strengthened its balance sheet with a
common stock offering of approximately 5.7 million shares. The net proceeds of
about $175 million from the transaction are being used to reduce short-term
debt.
PSI filed its case-in-chief testimony at the Indiana Utility Regulatory
Commission seeking a rate increase of approximately 15 percent primarily
reflecting the addition of peaking plants, the repowering of the Noblesville
Generating Station thus increasing its capacity, capital investments to meet new
emission reduction requirements for nitrogen oxides and capital improvements to
the transmission and distribution system.
In addition to the change in accounting principles referenced earlier, the
company also adopted the Emerging Issues Task Force (EITF) Issue 02-03, under
which realized and unrealized gains and losses on most energy trading contracts
are now reported "net" rather than "gross" in the income statement. This results
in reductions in reported operating revenues, fuel and purchased power expenses
and gas purchased expenses but has no effect on operating income or net income.
Cinergy Corp. has a balanced, integrated portfolio consisting of two core
businesses: regulated operations and energy merchant. Cinergy owns regulated
delivery operations in Ohio, Indiana, and Kentucky that serve 1.5 million
electric customers and about 500,000 gas customers. In addition, its Indiana
regulated operations own 7,000 megawatts of generation. Cinergy's energy
merchant business is a Midwest leader in low-cost generation owning 6,300
megawatts of capacity with a profitable balance of stable existing customer
portfolios, new customer origination, marketing and trading, and industrial-site
cogeneration. The "into Cinergy" power-trading hub is the most liquid trading
hub in the nation.
This document includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements are based on management's beliefs and
assumptions. These forward-looking statements are identified by terms and
phrases such as "anticipate", "believe", "intend", "estimate", "expect",
"continue", "should", "could", "may", "plan", "project", "predict", "will", and
similar expressions. Forward-looking statements involve risks and uncertainties
that may cause actual results to be materially different from the results
predicted. Factors that could cause actual results to differ materially from
those indicated in any forward-looking statement include, but are not limited
to, unanticipated weather conditions; unscheduled generation outages; unusual
maintenance or repairs; unanticipated changes in costs; environmental incidents,
including costs of compliance with existing and future environmental
requirements; electric transmission or gas pipeline system constraints;
legislative and regulatory initiatives; additional competition in electric or
gas markets and continued industry consolidation; financial or regulatory
accounting principles; political, legal, and economic conditions and
developments in the countries in which we have a presence; changing market
conditions and other factors related to physical energy and financial trading
activities; the performance of projects undertaken by our non-regulated
businesses and the success of efforts to invest in and develop new
opportunities; availability of, or cost of, capital; employee workforce factors;
delays and other obstacles associated with mergers, acquisitions, and
investments in joint ventures; and costs and effects of legal and administrative
proceedings, settlements, investigations, and claims. Please refer to the
company's SEC filings for additional information concerning factors that could
cause actual results to differ materially from those in the forward-looking
statements. The Company undertakes no obligation to update the information
contained herein.
Attached hereto as Exhibits 99.1 and 99.2 are summaries of Cinergy's unaudited
consolidated financial information for the first quarter 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
each Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CINERGY CORP.
Dated: April 28, 2003 By: /s/R. Foster Duncan
Name: R. Foster Duncan
Title: Executive Vice President and Chief
Financial Officer
EXHIBIT INDEX
Exhibit Description
Number
99.1 Cinergy Corp. Consolidated Statements of Income and Comprehensive
Income For the Periods Ended March 31, 2003 and 2002 (unaudited)
99.2 Cinergy Corp. Business Segment Summary Information For the Quarter
Ended March 31, 2003 (unaudited)