[LOGO FOR NORTHWESTERN CORPORATION] News Release
NYSE:NOR
CONTACTS:
INVESTORS: MEDIA:
Elizabeth A. Evans Roger Schrum
605-978-2929 605-978-2848
liz.evans@northwestern.com roger.schrum@northwestern.com
- --------------------------------------------------------------------------------
NORTHWESTERN REPORTS 2001 EPS OF $2.03 BEFORE RESTRUCTURING CHARGES;
REAFFIRMS 2002 EPS GUIDANCE OF $2.30 TO $2.55
- --------------------------------------------------------------------------------
MONTANA POWER TRANSACTION RECEIVES REGULATORY APPROVALS;
CORNERSTONE PURSUES STRATEGIC ALTERNATIVES
- --------------------------------------------------------------------------------
SIOUX FALLS, S.D. - FEB. 7, 2002 - NORTHWESTERN CORPORATION (NYSE:NOR) TODAY
REPORTED FULL-YEAR 2001 NET INCOME OF $56.7 MILLION OR $2.03 PER DILUTED SHARE
BEFORE RESTRUCTURING CHARGES, UP 11 PERCENT FROM THE $49.6 MILLION OR $1.83 PER
DILUTED SHARE REPORTED IN 2000. THESE RESULTS ARE IN LINE WITH PREVIOUSLY
ANNOUNCED EXPECTATIONS OF BETWEEN $2.00 AND $2.03 EARNINGS PER SHARE BEFORE
CHARGES.
"In addition to our reported recurring results of $2.03 per share, we have
made substantial progress to further strengthen our energy and communications
businesses for long-term growth and value creation," said Merle D. Lewis,
NorthWestern's chairman and chief executive officer. "NorthWestern's businesses
are positioned to achieve improved performance, and we reaffirm our previously
announced 2002 earnings per share guidance of between $2.30 to $2.55."
Revenues for the fourth quarter of 2001 were $797 million, compared with
$2.5 billion in the same quarter in 2000. Revenues for full-year 2001 were $4.2
billion, down from $7.1 billion in 2000. Revenues for both the fourth quarter
and full-year 2001 were lower due primarily to the sale and exit of certain
natural gas and crude oil businesses of CornerStone Propane along with lower
commodity prices.
In addition, NorthWestern announced that it expects to close its pending
acquisition of The Montana Power Company's energy transmission and distribution
business by mid-February.
"With the recent unanimous approval by the Montana Public Service
Commission and clearance by the Federal Trade Commission, we have received all
necessary regulatory approvals to complete this transaction," Lewis said.
"Combining Montana Power's successful utility business with NorthWestern's
strong energy business will create a solid platform for substantially increased
cash flow and a foundation for our value creation strategy of growth in earnings
and dividends. This strategy is evidenced by the fourth quarter dividend
increase of 6.7 percent, marking our 18th consecutive year for increasing
dividends."
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NorthWestern Reports $2.03 EPS Before Restructuring Charges
Feb. 7, 2002
Page 2
CornerStone announced on Jan. 18, 2002, it had retained Credit Suisse
First Boston Corporation to pursue strategic options, including the possible
sale or merger of the Partnership. NorthWestern represents the largest
unitholder of CornerStone and owns all of the stock of the managing general
partner.
"We fully support CornerStone's action as it is consistent with our
strategic intent to continue to narrow the focus of NorthWestern's energy and
communications businesses," Lewis said. "As we have noted, CornerStone has
historically been a minor contributor to NorthWestern's earnings and cash flow.
By excluding CornerStone and adding Montana Power's utility operations,
approximately two-thirds of NorthWestern's targeted 2002 earnings before
interest, taxes, depreciation and amortization (EBITDA) is attributable to our
utility businesses."
As previously announced, NorthWestern recorded a pre-tax restructuring
charge of $25 million in the fourth quarter of 2001 associated with its
Operational Excellence initiative which is focused on reducing annualized
selling, general and administrative (SG&A) expenses by $150 million. Including
the charge, NorthWestern reported fourth quarter net income of $5.1 million or
12 cents per diluted share, compared to $15.7 million or 60 cents per diluted
share in the fourth quarter of 2000. Net income for 2001 including the charge
was $44.5 million or $1.53 per diluted share.
DIVIDEND ACTIONS
During the fourth quarter, NorthWestern announced a quarterly dividend
increase to 31 3/4 cents per share on the Company's common stock payable Dec. 1,
2001. The quarterly common stock dividend is equivalent to an annual rate of
$1.27, an 8-cent or 6.7 percent increase over the previous annual dividend rate.
Consistent with its strategy of growing both earnings and dividends,
NorthWestern has increased dividends on its common stock for 18 consecutive
years and has paid dividends for 55 consecutive years.
On Feb. 6, 2002, the Board of Directors announced another quarterly
dividend of 31 3/4 cents per share on the Company's common stock payable
March 1, 2002, to shareholders of record on Feb. 15, 2002.
BUSINESS SEGMENT RESULTS
NorthWestern's electric and natural gas business segment, NorthWestern
Services Group, reported strong results for 2001 with operating income of $50.4
million, before restructuring charges, up 33 percent or $12.4 million, compared
with 2000. Revenues for the year totaled $251.2 million, up from $181.3 million
in 2000. In the fourth quarter 2001, operating income before restructuring
charges totaled $8.6 million, down $1.6 million from the same period in 2000 due
to milder weather conditions and reduced wholesale electricity sales.
NorthWestern Reports $2.03 EPS Before Restructuring Charges
Feb. 7, 2002
Page 3
NorthWestern's President and Chief Operating Officer Richard R. Hylland
said, "Overall, our core energy business showed healthy growth again in 2001,
aided by favorable wholesale electricity sales in the first half of the year.
Our underlying electricity and natural gas distribution business continues to
perform well and will show substantial revenue growth and earnings accretion in
2002 following the completion of the Montana Power transaction."
Fourth quarter results for Expanets, NorthWestern's communications
business, showed continued improvement, with EBITDA before restructuring charges
reflecting a loss of $1.6 million, compared with a loss of $13.2 million for the
same quarter in 2000. Further, the fourth quarter 2001 results include
approximately $10 million in identified nonrecurring transition and integration
costs as Expanets advanced the migration of its business toward a common
information technology platform. SG&A expenses for the fourth quarter reflect a
reduction of $25.4 million, or 23 percent, from the same quarter in 2000 and a
reduction of $19.9 million, or 19 percent, from the third quarter of 2001,
representing actions taken by the company to resize its business and reduce its
cost structure. For the full year, Expanets reported an EBITDA loss before
nonrecurring charges of $47.5 million, of which $37.7 million occurred during
the first quarter prior to the restructuring of Expanets' agreement with Avaya,
Inc., compared with positive EBITDA of $12.6 million in 2000. Identified
nonrecurring transition and integration costs totaled $36 million during 2001
and $24 million in 2000. Revenues for fourth quarter 2001 were $217.5 million,
compared with $293.5 million in fourth quarter 2000. For the full year, revenues
were $1.0 billion, compared with $1.1 billion in 2000.
"Expanets took several important steps during the fourth quarter and
throughout the year that should provide major building blocks for achieving its
targets in 2002. First, the company further resized its cost structure and
substantially reduced expenses to reflect changing market conditions in the
communications industry. In late November, Expanets also introduced a new
information technology system infrastructure that when fully implemented should
enable the company to more efficiently develop and deploy communications
solutions for clients while reducing operating expenses. This project is part of
Expanets' previously announced plan to exit from the costly transition services
agreements entered into in connection with the purchase of the Growing and
Emerging Markets (GEM) division of Lucent Technologies. This is an extensive
project involving substantial data migration from third-party legacy systems to
the new Expanets system and the launching of a new integrated customer care,
billing, order processing and information technology system. Expanets' process
teams addressed initial delays in the integration of the new system and continue
to make progress toward full implementation of the system," Hylland said.
"Expanets' focus on value-added services and solutions at the customer
premises, as opposed to commodity-based services such as a broadband networks,
has enabled it to
NorthWestern Reports $2.03 EPS Before Restructuring Charges
Feb. 7, 2002
Page 4
maintain a core level of recurring customer revenues, even in the face of
challenging economic conditions. We believe Expanets is well positioned with a
cost structure to meet our performance expectations in 2002," Hylland added. "As
we highlighted in our Nov. 30, 2001, webcast presentation, we are targeting an
improvement in Expanets' EBITDA in 2002 of approximately $130 million resulting
from cost reductions and efficiencies across the business. Specifically, the
improvement is targeted to come from the completion of activities generating the
nonrecurring transition and integration costs incurred during 2001 ($36
million), nonrecurring expenses attributable to the new information technology
system when fully implemented ($14 million), and SG&A reductions resulting
principally from cost improvement and resizing initiatives during 2001 ($80
million)."
Blue Dot, NorthWestern's heating, ventilation, air conditioning (HVAC) and
plumbing services provider, reported full-year 2001 EBITDA before restructuring
charges of $9.9 million, compared with $18.4 million in 2000. Revenues improved
to $423.8 million for full-year 2001, compared with $408.8 million in 2000 due
to the acquisition of certain locations during 2000 and 2001. Reported EBITDA
before restructuring charges for the fourth quarter 2001 reflects a loss of $2.4
million, compared with positive EBITDA of $1.7 million in the same period in
2000. Revenues during the fourth quarter 2001 were $101.2 million, compared with
$109.9 million in the same quarter in 2000. Included in the fourth quarter 2001
results are approximately $6 million in negative adjustments relating
principally to the carrying value of inventory and receivables at certain
locations.
"Blue Dot's results during the fourth quarter were impacted by continued
soft economic conditions, nonrecurring charges taken at business locations that
are undergoing restructuring and the relocation of its corporate headquarters to
Sioux Falls," said Hylland. "Blue Dot's new management team is implementing a
plan to improve performance by maximizing higher margin services, implementing
new systems and processes, enhancing efficiency and improving underperforming
business locations."
Fourth quarter EBITDA from CornerStone Propane (NYSE:CNO) was $21.6
million, before nonrecurring losses totaling approximately $5.9 million
primarily related to the sale of CornerStone's remaining crude and natural gas
businesses, compared with $35.2 million in the fourth quarter of 2000. The
propane distribution company results were significantly impacted by near record
warm weather in the fourth quarter, which reduced retail gallons sold by 28
percent compared with the fourth quarter of 2000. Revenues for the quarter were
$427 million, compared with $2.1 billion in same quarter in 2000. Full-year 2001
revenues were $2.5 billion, compared with $5.4 billion in 2000. Revenues for
both the fourth quarter and full-year 2001 were lower due primarily to the sale
and exit of certain natural gas and crude oil businesses along with lower
commodity prices.
NorthWestern Reports $2.03 EPS Before Restructuring Charges
Feb. 7, 2002
Page 5
The action taken by CornerStone in January to pursue strategic options
will be considered in conjunction with NorthWestern's required adoption of
Financial Accounting Standard 142, "Goodwill and Other Intangible Assets" and
Financial Accounting Standard 144, "Impairment or Disposal of Long-Lived Assets"
effective Jan. 1, 2002. It is likely that substantially all of NorthWestern's
nearly $40 million net carrying value in CornerStone will be taken as a non-cash
adoption during the first quarter 2002.
CONFERENCE CALL
As previously announced, the Company will conduct a conference call with
analysts today at 11 a.m. Eastern time. The conference call will be webcast live
via the NorthWestern Corporation Web site at www.northwestern.com or at
www.companyboardroom.com.
ABOUT NORTHWESTERN
NorthWestern Corporation, a FORTUNE 500 company, is a leading provider of
services and solutions to more than 2 million customers across America in the
energy and communications sectors. NorthWestern's partner entities include
NorthWestern Services Group, a provider of electric, natural gas and
communications services to Upper Plains customers; Expanets, one of the largest
mid-market providers of networked communications solutions and services in the
United States; Blue Dot, a leading provider of air conditioning, heating,
plumbing and related services; and CornerStone Propane Partners L.P. (NYSE:CNO),
one of the nation's largest retail propane distribution entities. Further
information about NorthWestern is available on the Internet at
www.northwestern.com.
FORWARD-LOOKING STATEMENTS
CERTAIN STATEMENTS MADE IN THIS NEWS RELEASE, INCLUDING THOSE RELATING TO
EXPECTATION OF FUTURE FINANCIAL PERFORMANCE, CONTINUED GROWTH, CHANGES IN
ECONOMIC CONDITIONS OR CAPITAL MARKETS AND CHANGES IN CUSTOMER USAGE PATTERNS
AND PREFERENCES, AS WELL AS OTHER STATEMENTS REGARDING OUR ASSUMPTIONS,
PROJECTIONS, EXPECTATIONS, TARGETS, INTENTIONS OR BELIEFS ABOUT FUTURE EVENTS,
ARE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE "SAFE HARBOR"
PROVISIONS OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THESE
FORWARD-LOOKING STATEMENTS ARE SUBJECT TO VARIOUS RISKS AND UNCERTAINTIES. A
NUMBER OF IMPORTANT FACTORS WHICH ARE DIFFICULT TO PREDICT AND MANY OF WHICH ARE
BEYOND THE CONTROL OF THE CORPORATION, COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE IMPLIED BY THE FORWARD-LOOKING STATEMENTS. THESE FACTORS
INCLUDE, BUT ARE NOT LIMITED TO, THE ADVERSE IMPACT OF WEATHER CONDITIONS;
UNSCHEDULED GENERATION OUTAGES; MAINTENANCE OR REPAIRS; UNANTICIPATED CHANGES TO
FOSSIL FUEL OR GAS SUPPLY COSTS OR AVAILABILITY DUE TO HIGHER DEMAND, SHORTAGES,
TRANSPORTATION PROBLEMS OR OTHER DEVELOPMENTS; DEVELOPMENTS IN THE FEDERAL AND
STATE REGULATORY ENVIRONMENT AND THE TERMS ASSOCIATED WITH OBTAINING REGULATORY
APPROVALS; THE RATE OF GROWTH AND ECONOMIC CONDITIONS IN THE SERVICE AREAS OF
THE CORPORATION AND ITS SUBSIDIARIES; THE SPEED AND DEGREE TO WHICH COMPETITION
ENTERS THE INDUSTRIES AND MARKETS IN WHICH THE CORPORATION'S BUSINESSES OPERATE;
THE TIMING AND EXTENT OF CHANGES IN INTEREST RATES AND FLUCTUATIONS IN
ENERGY-RELATED COMMODITY PRICES; RISKS ASSOCIATED WITH ACQUISITIONS, TRANSITION
AND INTEGRATION OF ACQUIRED COMPANIES, INCLUDING IMPLEMENTATION OF INFORMATION
SYSTEMS AND REALIZING EFFICIENCIES IN EXCESS OF ANY RELATED RESTRUCTURING
CHARGES; REDUCTION OF MINORITY INTEREST BASIS REQUIRING THE CORPORATION TO
RECOGNIZE ITS SHARE OF OPERATING LOSSES AT CERTAIN SUBSIDIARIES; FOR LOSS
ALLOCATION PURPOSES; CHANGES IN CUSTOMER USAGE PATTERNS AND PREFERENCES; AS WELL
AS CHANGING CONDITIONS IN THE ECONOMY, CAPITAL MARKETS AND OTHER FACTORS
IDENTIFIED FROM TIME TO TIME IN THE CORPORATION'S FILINGS WITH THE SECURITIES
AND EXCHANGE COMMISSION; AND EVENTS, CONDITIONS OR CIRCUMSTANCES THAT PRECLUDE
OR MATERIALLY DELAY THE COMPLETION OF THE ACQUISITION OF THE MONTANA POWER
COMPANY'S ENERGY TRANSMISSION AND DISTRIBUTION BUSINESS. THIS NEWS RELEASE
SHOULD BE READ IN CONJUNCTION WITH THE COMPANY'S REPORT ON 10-K FOR 2000, AND
SUBSEQUENT QUARTERLY REPORTS ON 10-Q AND CURRENT REPORTS ON 8-K, WHICH CAN BE
LOCATED AT www.sec.gov AND REQUESTED FROM NORTHWESTERN CORPORATION.
<Page>
NorthWestern Corporation Reports Fourth Quarter Results
February 7, 2002
Page 6
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
<Table>
<Caption>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
------------------ -------------------
2001 2000 2001 2000
---- ---- ---- ----
OPERATING REVENUES $ 797,419 $ 2,549,858 $ 4,237,755 $ 7,132,090
COST OF SALES 596,109 2,308,383 3,380,188 6,295,675
----------- ----------- ----------- -----------
GROSS MARGIN 201,310 241,475 857,567 836,415
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Selling, General and Administrative 183,340 207,115 790,936 686,814
Restructuring 24,916 -- 24,916 --
Depreciation 18,005 15,265 66,138 58,034
Amortization of Goodwill and Other Intangibles 16,460 15,735 59,627 50,295
----------- ----------- ----------- -----------
242,721 238,115 941,617 795,143
----------- ----------- ----------- -----------
OPERATING INCOME (LOSS) (41,411) 3,360 (84,050) 41,272
Interest Expense (24,112) (22,055) (90,365) (77,207)
Investment Income and Other 3,893 1,147 8,023 8,981
----------- ----------- ----------- -----------
LOSS BEFORE INCOME TAXES
AND MINORITY INTERESTS (61,630) (17,548) (166,392) (26,954)
Benefit for Income Taxes 30,133 12,118 47,380 4,117
----------- ----------- ----------- -----------
LOSS BEFORE MINORITY INTERESTS (31,497) (5,430) (119,012) (22,837)
Minority Interests 36,588 21,095 163,544 73,436
----------- ----------- ----------- -----------
INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE 5,091 15,665 44,532 50,599
Cumulative Effect of Change in Accounting
Principle, Net of Tax and Minority Interests -- -- -- (1,046)
----------- ----------- ----------- -----------
NET INCOME 5,091 15,665 44,532 49,553
Minority Interests on Preferred
Securities of Subsidiary Trusts (1,877) (1,651) (6,827) (6,601)
Dividends on Cumulative Preferred Stock (47) (47) (191) (191)
----------- ----------- ----------- -----------
EARNINGS ON COMMON STOCK $ 3,167 $ 13,967 $ 37,514 $ 42,761
=========== =========== =========== ===========
AVERAGE COMMON SHARES OUTSTANDING 26,724 23,216 24,390 23,141
EARNINGS PER AVERAGE COMMON SHARE
Basic Before Cumulative Effect $ .12 $ .60 $ 1.54 $ 1.89
Cumulative Effect of Change in Accounting Principle -- -- -- (0.04)
----------- ----------- ----------- -----------
Basic $ .12 $ .60 $ 1.54 $ 1.85
=========== =========== =========== ===========
Diluted Before Cumulative Effect $ .12 $ .60 $ 1.53 $ 1.87
Cumulative Effect of Change in Accounting
Principle -- -- -- (0.04)
----------- ----------- ----------- -----------
Diluted $ .12 $ .60 $ 1.53 $ 1.83
=========== =========== =========== ===========
</Table>
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<Page>
NorthWestern Corporation Reports Fourth Quarter Results
February 7, 2002
Page 7
NORTHWESTERN CORPORATION
SEGMENT INFORMATION
<Table>
<Caption>
4TH QUARTER ENDED DECEMBER 31, 2001
-------------------------------------------------------------------------------------
Electric and
Natural Gas (1) Communications HVAC Propane (2) All Other Total
--------------- -------------- ---- ----------- --------- -----
Operating Revenues $ 47,018 $ 217,527 $ 101,247 $ 426,585 $ 5,042 $ 797,419
Cost of Sales 25,628 131,779 64,862 370,457 3,383 596,109
----------- ----------- ----------- ----------- ----------- -----------
Gross Margin 21,390 85,748 36,385 56,128 1,659 201,310
Selling, general and administrative 8,565 87,367 38,758 40,462 8,188 183,340
Restructuring 4,499 5,906 7,239 -- 7,272 24,916
Depreciation 4,192 4,960 2,272 6,045 536 18,005
Amortization of goodwill and other
intangibles -- 7,950 1,869 6,578 63 16,460
----------- ----------- ----------- ----------- ----------- -----------
Operating Income (Loss) 4,134 (20,435) (13,753) 3,043 (14,400) (41,411)
Interest expense (2,099) (6,816) (434) (11,156) (3,607) (24,112)
Investment income and other 78 253 16 -- 3,546 3,893
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before taxes and
minority interests 2,113 (26,998) (14,171) (8,113) (14,461) (61,630)
Benefit (provision) for income taxes 160 14,729 4,718 964 9,562 30,133
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests $ 2,273 $ (12,269) $ (9,453) $ (7,149) $ (4,899) $ (31,497)
=========== =========== =========== =========== =========== ===========
<Caption>
4TH QUARTER ENDED DECEMBER 31, 2000
-------------------------------------------------------------------------------------
Electric and
Natural Gas (1) Communications HVAC Propane (2) All Other Total
--------------- -------------- ---- ----------- --------- -----
Operating Revenues $ 57,071 $ 293,540 $ 109,907 $ 2,085,034 $ 4,306 $ 2,549,858
Cost of Sales 32,883 193,955 73,377 2,006,087 2,081 2,308,383
----------- ----------- ----------- ----------- ----------- -----------
Gross Margin 24,188 99,585 36,530 78,947 2,225 241,475
Selling, general and administrative 9,926 112,763 34,874 43,789 5,763 207,115
Depreciation 4,054 2,370 2,469 5,950 422 15,265
Amortization of goodwill and other
intangibles -- 10,220 1,628 3,871 16 15,735
----------- ----------- ----------- ----------- ----------- -----------
Operating Income (Loss) 10,208 (25,768) (2,441) 25,337 (3,976) 3,360
Interest expense (1,812) (873) (1,339) (13,134) (4,897) (22,055)
Investment income and other (130) 102 45 -- 1,130 1,147
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before taxes and
minority interests 8,266 (26,539) (3,735) 12,203 (7,743) (17,548)
Benefit (provision) for income taxes (1,960) 12,383 849 (1,808) 2,654 12,118
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests $ 6,306 $ (14,156) $ (2,886) $ 10,395 $ (5,089) $ (5,430)
=========== =========== =========== =========== =========== ===========
<Caption>
(1) 4TH QUARTER ENDED DECEMBER 31
-----------------------------------------------------
2001 2000
-----------------------------------------------------
Electric Natural Gas Electric Natural Gas
-------- ----------- -------- -----------
(1) Operating Revenues $ 21,407 $ 25,611 $ 22,492 $ 34,579
Cost of Sales 5,809 19,819 4,655 28,228
----------- ----------- ----------- -----------
Gross Margin 15,598 5,792 17,837 6,351
Selling, general and administrative
expenses 5,383 3,182 6,483 3,443
Restructuring 3,329 1,170 -- --
Depreciation 3,548 644 3,216 838
----------- ----------- ----------- -----------
Operating Income $ 3,338 $ 796 $ 8,138 $ 2,070
=========== =========== =========== ===========
<Caption>
(2) 4TH QUARTER ENDED DECEMBER 31
-----------------------------------------------------
2001 2000
------------------------ ------------------------
Retail Wholesale Retail Wholesale
Propane Propane Propane Propane
-------- ----------- -------- -----------
(2) Operating Revenues $ 88,377 $ 338,208 $ 137,661 $ 1,947,373
Cost of Sales 41,959 328,498 76,328 1,929,759
----------- ----------- ----------- -----------
Gross Margin $ 46,418 $ 9,710 $ 61,333 $ 17,614
=========== =========== =========== ===========
</Table>
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<Page>
NorthWestern Corporation Reports Fourth Quarter Results
February 7, 2002
Page 8
NORTHWESTERN CORPORATION
SEGMENT INFORMATION
<Table>
<Caption>
TWELVE MONTHS ENDED DECEMBER 31, 2001
-----------------------------------------------------------------------------------
Electric and
Natural Gas (1) Communications HVAC Propane (2) All Other Total
--------------- -------------- ---- ----------- --------- -----
Operating Revenues $ 251,208 $ 1,032,033 $ 423,803 $ 2,513,777 $ 16,934 $ 4,237,755
Cost of Sales 142,112 648,036 267,978 2,311,384 10,678 3,380,188
----------- ----------- ----------- ----------- ----------- -----------
Gross Margin 109,096 383,997 155,825 202,393 6,256 857,567
Selling, general and administrative 42,284 431,477 145,954 147,957 23,264 790,936
Restructuring 4,499 5,906 7,239 -- 7,272 24,916
Depreciation 16,428 13,518 9,148 25,102 1,942 66,138
Amortization of goodwill and other intangibles -- 35,647 7,245 16,466 269 59,627
----------- ----------- ----------- ----------- ----------- -----------
Operating Income (Loss) 45,885 (102,551) (13,761) 12,868 (26,491) (84,050)
Interest expense (8,692) (17,330) (3,835) (48,164) (12,344) (90,365)
Investment income and other 306 683 204 -- 6,830 8,023
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before taxes and
minority interests 37,499 (119,198) (17,392) (35,296) (32,005) (166,392)
Benefit (provision) for income taxes (11,857) 32,190 3,830 7,329 15,888 47,380
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests $ 25,642 $ (87,008) $ (13,562) $ (27,967) $ (16,117) $ (119,012)
=========== =========== =========== =========== =========== ===========
<Caption>
TWELVE MONTHS ENDED DECEMBER 31, 2000
-----------------------------------------------------------------------------------
Electric and
Natural Gas (1) Communications HVAC Propane (2) All Other Total
--------------- -------------- ---- ----------- --------- -----
Operating Revenues $ 181,309 $ 1,104,034 $ 408,829 $ 5,422,616 $ 15,302 $ 7,132,090
Cost of Sales 88,156 740,553 260,975 5,196,300 9,691 6,295,675
----------- ----------- ----------- ----------- ----------- -----------
Gross Margin 93,153 363,481 147,854 226,316 5,611 836,415
Selling, general and administrative 39,211 350,926 129,447 149,777 17,453 686,814
Depreciation 15,919 7,614 7,901 25,271 1,329 58,034
Amortization of goodwill and other intangibles -- 29,552 5,891 14,814 38 50,295
----------- ----------- ----------- ----------- ----------- -----------
Operating Income (Loss) 38,023 (24,611) 4,615 36,454 (13,209) 41,272
Interest expense (7,760) (4,019) (4,877) (42,738) (17,813) (77,207)
Investment income and other (194) 508 401 -- 8,266 8,981
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before taxes and
minority interests 30,069 (28,122) 139 (6,284) (22,756) (26,954)
Benefit (provision) for income taxes (9,819) 8,323 (2,404) (972) 8,989 4,117
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests $ 20,250 $ (19,799) $ (2,265) $ (7,256) $ (13,767) $ (22,837)
=========== =========== =========== =========== =========== ===========
<Caption>
(1) TWELVE MONTHS ENDED DECEMBER 31
----------------------------------------------------
2001 2000
----------------------- -----------------------
Electric Natural Gas Electric Natural Gas
-------- ----------- -------- -----------
(1) Operating Revenues $ 106,995 $ 144,213 $ 86,575 $ 94,734
Cost of Sales 23,052 119,060 16,782 71,374
----------- ----------- ----------- -----------
Gross Margin 83,943 25,153 69,793 23,360
Selling, general and administrative expenses 27,734 14,550 25,397 13,814
Restructuring 3,329 1,170 -- --
Depreciation 13,193 3,235 12,663 3,256
----------- ----------- ----------- -----------
Operating Income $ 39,687 $ 6,198 $ 31,733 $ 6,290
=========== =========== =========== ===========
<Caption>
(2) TWELVE MONTHS ENDED DECEMBER 31
----------------------------------------------------
2001 2000
----------------------- -----------------------
Retail Wholesale Retail Wholesale
Propane Propane Propane Propane
-------- ----------- -------- -----------
(2) Operating Revenues $ 373,853 $ 2,139,924 $ 389,447 $ 5,033,169
Cost of Sales 195,541 2,115,843 211,139 4,985,161
----------- ----------- ----------- -----------
Gross Margin $ 178,312 $ 24,081 $ 178,308 $ 48,008
=========== =========== =========== ===========
</Table>
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