[NJR LOGO] [NEWS RELEASE GRAPHIC]
1415 Wyckoff Road, P.O. Box 1464, Wall, NJ 07719
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DATE: January 23, 2002 CONTACT: Roseanne Koberle (Media)
732-938-1112
-or-
FOR IMMEDIATE RELEASE Dennis Puma (Investors)
732-938-1229
NEW JERSEY RESOURCES CORPORATION ANNOUNCES
HIGHER FISCAL 2002 FIRST-QUARTER EARNINGS, 3-FOR-2 STOCK SPLIT, INCREASE
TO SHARE REPURCHASE PLAN
WALL, N.J. - At its annual meeting of shareowners held today, New Jersey
Resources Corporation (NYSE: NJR), parent company of New Jersey Natural Gas
Company (NJNG), announced: higher fiscal 2002 first-quarter earnings of $1.10
per share, a 10 percent increase compared with last year; a three-for-two stock
split and a 500,000 share increase in its share repurchase plan.
Higher First Quarter Earnings
Commenting on the Company's higher first quarter earnings, Laurence M. Downes,
chairman and CEO of NJR said, "The dedication of our employees has allowed the
Company to achieve its twenty-first quarter of consecutive earnings growth,
despite weather that was the warmest on record. I am extremely proud of their
efforts this quarter because once again, we have affirmed our reputation for
consistent performance."
FINANCIAL AND OPERATING HIGHLIGHTS DURING THE QUARTER INCLUDED:
- - HIGHER NET INCOME AND EARNINGS PER SHARE - NJR earned $19.7 million for
the three months ended December 31, 2001, an 11 percent increase
compared with last year's results of $17.7 million. Earnings per share
increased 10 percent to $1.10, compared with $1.00 last year. NJNG
earned $17.1 million, or $.96 per share, during the quarter driven by
its continued profitable customer growth, higher off-system and
capacity management margins and lower operating and net interest costs,
which more than offset the effects of warmer weather. NJR Energy
Services Corporation (NJRES), NJR's unregulated wholesale energy
services subsidiary, reported a 9 percent increase in earnings to $2.1
million, or $.12 per share, compared with $1.9 million, or $.11 per
share last year, reflecting increased capacity management and storage
throughput. NJR Home Services Company, an unregulated subsidiary
offering home-appliance repair, air conditioning and contract warranty
services contributed $281,000, or $.02 per share, compared with
breakeven results last year.
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NJR ANNOUNCES HIGHER FISCAL 2002 FIRST-QUARTER EARNINGS
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- - STRONG CUSTOMER GROWTH - During the first three months of the fiscal
year, NJNG added approximately .8 billion cubic feet (Bcf) of new
throughput, which is expected to generate about $2.3 million in gross
margin. NJNG expects to maintain its approximately 3 percent annual
customer growth rate in fiscal 2002, well above the national average
for natural gas distribution companies. About 40 percent of those new
customers are expected to convert from other fuels. The Company expects
to add approximately 2 Bcf of firm sales representing $6 million of
gross margin from customer growth in fiscal 2002.
- - WARM WEATHER - Weather for the quarter was 21 percent warmer than
normal and 32 percent warmer than last year. NJNG has a
weather-normalization clause, which is designed to minimize
year-to-year fluctuations on both NJNG's margin and customers' bills
that can result from changing weather patterns. Normal weather is based
on the 20-year average.
- - LOWER OPERATING AND INTEREST EXPENSES - For the three months ended
December 31, consolidated operation and maintenance expenses decreased
4 percent reflecting primarily the benefits of last year's early
retirement program, lower bad debt expense and general cost control
efforts. Net interest charges for the period declined as a result of
lower borrowing costs and the recovery of carrying costs on certain
regulatory assets, which is included in other income.
- - WHOLESALE ENERGY OPERATIONS - Earnings for NJRES during the quarter
benefited from increased sales and storage and capacity management
opportunities in the natural gas markets. Participation in storage
management opportunities such as the Stagecoach storage field is
expected to enable NJRES to increase its growth and earnings prospects.
NJRES has been engaged as the exclusive marketing agent for Stagecoach,
a storage field being developed in upstate New York, which is expected
to begin operations in the second quarter of 2002.
- - OFF-SYSTEM SALES AND CAPACITY MANAGEMENT PROGRAMS - For the three
months ended December 31, 2001, off-system sales and capacity
management programs totaled 26 Bcf, generating $1.6 million in margin,
compared with 29 Bcf and $1.3 million in margin last year. NJNG shares
margins earned from these off-system sales, capacity release and
portfolio-enhancing programs with customers and shareowners. As part of
its annual Levelized Gas Adjustment filing in November, NJNG has
requested an extension of these programs through 2004.
- - DIVIDEND INCREASED - On October 25, 2001, NJR's board of directors
authorized a 2.3 percent increase in the NJR's quarterly dividend rate
to $.45 per share. The new rate became effective with the January 2002
dividend payment and marked the seventh increase in six years. The
Company has paid quarterly dividends since 1952.
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NJR ANNOUNCES HIGHER FISCAL 2002 FIRST-QUARTER EARNINGS
PAGE 3 OF 9
STOCK SPLIT
The three-for-two split of its outstanding shares of common stock will entitle
each shareowner of record at the close of business on February 8, 2002, to
receive one additional share of common stock for every two shares of NJR common
stock held on that date. After the split, NJR will have approximately 26.7
million shares of common stock outstanding.
"We are taking this action in response to our excellent earnings and stock price
performance," said Mr. Downes. "We want to make our stock accessible to a
broader range of investors, improve its marketability and enhance shareowner
value."
Certificates representing the additional shares of common stock will be
distributed on or about March 1, 2002, to shareowners of NJR on the record date.
Currently held certificates will remain valid and should be retained by
shareowners. The Company anticipates that its common stock will begin trading at
its post-split price on March 4, 2002, the first business day after the
additional shares are distributed to shareowners.
SHARE REPURCHASE PLAN
NJR also announced that its board of directors authorized an increase in its
share repurchase plan from 1.5 million to 2 million shares. Since beginning this
plan in 1996, NJR has purchased 1.4 million shares for $48.9 million. "NJR was
one of the first companies in the utility industry to offer a repurchase plan,
and I am pleased that the board has authorized the increase. This plan gives us
enormous financial flexibility and puts an important tool at our disposal which
is expected to create value for our shareowners," said Mr. Downes.
On Thursday, January 24, 2002, at 10:30 a.m. EST, NJR will hold a live
teleconference call to discuss first quarter results. To listen to the call,
logon to NJR's Web site, www.njliving.com and select "Investor Relations" from
the sidebar on the left; then click just below the microphone on the right side
of the Investor Relations home page.
New Jersey Resources Corporation (NYSE: NJR) provides retail and wholesale
energy services to customers in New Jersey and in states from the Gulf Coast to
New England. Its principal subsidiary, New Jersey Natural Gas Company (NJNG), is
one of the fastest-growing local distribution companies in the United States,
serving more than 420,000 customers in New Jersey's Monmouth and Ocean counties
and parts of Morris and Middlesex counties. NJNG maintains a nearly 6,000 mile
underground pipeline system and has added approximately 12,000 new customers for
the past seven consecutive years, representing 2 Bcf of new firm throughput,
annually. NJNG is also a leader in the off-system sales and capacity release
markets. Other major operating subsidiaries of NJR include NJR Energy Services
and NJR Home Services. For more information about the NJR family of companies,
visit www.njliving.com.
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NJR ANNOUNCES HIGHER FISCAL 2002 FIRST-QUARTER EARNINGS
PAGE 4 OF 9
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. NJR wishes to caution readers
that the assumptions forming the basis for forward-looking statements include
many factors that are beyond NJR's ability to control or estimate precisely,
such as estimates of future market conditions and the behavior of other market
participants. Other factors that could cause actual results to differ materially
from our expectations include, but are not limited to, weather conditions,
economic conditions in NJNG's service territory, impact of regulation,
fluctuations in energy-related commodity prices, conversion activity, other
marketing efforts and other uncertainties. More detailed information about these
factors is set forth in NJR's filings with the Securities and Exchange
Commission, including NJR's annual report on Form 10-K filed on December 26,
2001.
The Company does not, by including this statement, assume any obligation to
review or revise any particular forward-looking statement referenced herein in
light of future events.
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NJR ANNOUNCES HIGHER FISCAL 2002 FIRST-QUARTER EARNINGS
PAGE 5 OF 9
NEW JERSEY RESOURCES CORPORATION
CONSOLIDATED FINANCIAL RESULTS
Three Months Ended Twelve Months Ended
Thousands, except per share data December 31, December 31,
(Unaudited) 2001 2000 2001 2000
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Operating Revenues $ 395,831 $ 667,487 $1,776,752 $1,568,598
Income from Continuing Operations $ 19,681 $ 17,709 $ 54,288 $ 49,474
Net Income $ 19,681 $ 17,709 $ 54,288 $ 50,302
Earnings Per Common Share from
Continuing Operations
Basic $ 1.10 $ 1.00 $ 3.05 $ 2.80
Diluted $ 1.09 $ 1.00 $ 3.02 $ 2.78
Earnings Per Common Share
Basic $ 1.10 $ 1.00 $ 3.05 $ 2.85
Diluted $ 1.09 $ 1.00 $ 3.02 $ 2.83
Average Shares Outstanding
Basic 17,824 17,628 17,781 17,660
Diluted 18,053 17,743 17,947 17,785
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NJR ANNOUNCES HIGHER FISCAL 2002 FIRST-QUARTER EARNINGS
PAGE 6 OF 9
NEW JERSEY RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(thousands, except per share data)
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(unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2001 2000 2001 2000
-------------------------------------------------------------- ----------- ----------- ----------- -----------
OPERATING REVENUES $ 395,831 $ 667,487 $ 1,776,752 $ 1,568,598
-------------------------------------------------------------- ----------- ----------- ----------- -----------
OPERATING EXPENSES
Gas purchases 318,480 585,657 1,515,663 1,311,579
Operation and maintenance 23,072 23,918 88,609 88,206
Depreciation and amortization 8,431 8,223 32,738 31,239
Energy and other taxes 11,078 13,424 41,424 38,222
-------------------------------------------------------------- ----------- ----------- ----------- -----------
Total operating expenses 361,061 631,222 1,678,434 1,469,246
-------------------------------------------------------------- ----------- ----------- ----------- -----------
OPERATING INCOME 34,770 36,265 98,318 99,352
Other income 1,252 593 7,105 1,813
Interest charges, net 4,385 5,669 18,421 19,243
-------------------------------------------------------------- ----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES 31,637 31,189 87,002 81,922
Income tax provision 11,956 12,133 32,714 31,101
-------------------------------------------------------------- ----------- ----------- ----------- -----------
INCOME BEFORE CUMULATIVE EFFECT OF A
CHANGE IN ACCOUNTING 19,681 19,056 54,288 50,821
Cumulative effect of change in accounting for derivatives, net 0 (1,347) 0 (1,347)
-------------------------------------------------------------- ----------- ----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS 19,681 17,709 54,288 49,474
Income from discontinued operations, net 0 0 0 828
-------------------------------------------------------------- ----------- ----------- ----------- -----------
NET INCOME $ 19,681 $ 17,709 $ 54,288 $ 50,302
============================================================== =========== =========== =========== ===========
EARNINGS PER COMMON SHARE - BASIC
INCOME FROM CONTINUING OPERATIONS $ 1.10 $ 1.00 $ 3.05 $ 2.80
NET INCOME $ 1.10 $ 1.00 $ 3.05 $ 2.85
============================================================== =========== =========== =========== ===========
EARNINGS PER COMMON SHARE - DILUTED
INCOME FROM CONTINUING OPERATIONS $ 1.09 $ 1.00 $ 3.02 $ 2.78
NET INCOME $ 1.09 $ 1.00 $ 3.02 $ 2.83
============================================================== =========== =========== =========== ===========
DIVIDENDS PER COMMON SHARE $ 0.45 $ 0.44 $ 1.77 $ 1.73
============================================================== =========== =========== =========== ===========
AVERAGE SHARES OUTSTANDING
BASIC 17,824 17,628 17,781 17,660
DILUTED 18,053 17,743 17,947 17,785
============================================================== =========== =========== =========== ===========
PAGE 7 OF 9
NEW JERSEY RESOURCES CORPORATION
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UNAUDITED Three Months Ended Twelve Months Ended
December 31, December 31,
(Thousands, except per-share data) 2001 2000 2001 2000
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Operating Revenues
New Jersey Natural Gas Company $ 219,948 $ 324,799 $ 904,626 $ 864,270
NJR Energy Services Company 170,888 338,344 855,278 689,020
Retail & Other 5,093 6,329 20,238 25,157
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SUB-TOTAL 395,929 669,472 1,780,142 1,578,447
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Intercompany Eliminations (98) (1,985) (3,390) (9,849)
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TOTAL $ 395,831 $ 667,487 $ 1,776,752 $ 1,568,598
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======================================================================================================================
Operating Income (Loss)
New Jersey Natural Gas Company $ 29,998 $ 31,193 $ 88,053 89,498
NJR Energy Services Company 3,525 4,071 5,092 6,172
Retail & Other 1,247 1,001 5,173 3,682
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TOTAL $ 34,770 $ 36,265 $ 98,318 $ 99,352
==================================================================
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* Income from Continuing Operations (Loss)
New Jersey Natural Gas Company $ 17,134 $ 16,451 $ 48,175 $ 46,259
NJR Energy Services Company 2,136 1,937 3,605 4,230
Retail & Other 411 (679) 2,508 (1,015)
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TOTAL $ 19,681 $ 17,709 $ 54,288 $ 49,474
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======================================================================================================================
Throughtput (Bcf)
NJNG, Core Customers 17.6 22.8 67.3 68.5
NJNG, Off System/Capacity Management 26.2 29.2 85.4 125.4
NJRES Fuel Mgmt. and Wholesale Sales 60.9 55.7 178.7 140.7
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TOTAL 104.7 107.7 331.4 334.6
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======================================================================================================================
Common Stock Data
Yield at December 31 3.8% 4.1% 3.8% 4.1%
Market Price
High $ 48.80 $ 44.63 $ 48.80 $ 44.63
Low $ 43.45 $ 37.50 $ 37.26 $ 36.19
Close at December 31 $ 46.80 $ 43.25 $ 46.80 $ 43.25
Shares Out. at December 31 17,843 17,657 17,843 17,657
Market Cap. at December 31 $ 835,052 $ 763,665 $ 835,052 $ 763,665
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* 2000 results include a charge of $1.3 million related to the cumulative effect
of a change in accounting for derivatives.
PAGE 8 OF 9
NEW JERSEY NATURAL GAS COMPANY
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Three Months Ended Twelve Months Ended
UNAUDITED December 31, December 31,
(Thousands, except customer & weather data) 2001 2000 2001 2000
======================================================================================================================
OPERATING REVENUES
Residential $115,701 $123,159 $405,716 $341,868
Commercial, Industrial & Other 24,818 28,402 87,299 71,577
Firm Transportation 6,699 10,741 27,250 37,370
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SUB-TOTAL 147,218 162,302 520,265 450,815
Interruptible 885 1,999 10,674 8,521
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TOTAL SYSTEM REVENUES 148,103 164,301 530,939 459,336
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Off System 71,845 160,498 373,687 404,934
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TOTAL REVENUES $219,948 $324,799 $904,626 $864,270
==================================================================
======================================================================================================================
NJNG GROSS MARGIN
Residential $ 41,960 $ 41,460 $141,077 $134,897
Commercial, Industrial & Other 7,992 7,897 26,872 25,694
Firm Transportation 6,083 9,550 24,598 33,239
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SUB-TOTAL 56,035 58,907 192,547 193,830
Interruptible 212 192 932 784
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TOTAL SYSTEM MARGIN 56,247 59,099 193,479 194,614
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Off System/Capacity Management/FRM 1,635 1,325 5,632 4,678
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TOTAL GROSS MARGIN $ 57,882 $ 60,424 $199,111 $199,292
==================================================================
======================================================================================================================
THROUGHPUT (BCF)
Residential 10.7 13.6 39.0 39.3
Commercial, Industrial & Other 2.4 3.2 8.8 8.5
Firm Transportation 2.1 3.6 7.8 11.0
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SUB-TOTAL 15.2 20.4 55.6 58.8
Interruptible 2.4 2.4 11.7 9.7
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TOTAL SYSTEM THROUGHPUT 17.6 22.8 67.3 68.5
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Off System/Capacity Management 26.2 29.2 85.4 125.4
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TOTAL NJNG THROUGHPUT 43.8 52.0 152.7 193.9
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======================================================================================================================
CUSTOMERS
Residential 384,622 360,486 384,622 360,486
Commercial, Industrial & Other 25,560 25,213 25,560 25,213
Firm Transportation 13,839 28,599 13,839 28,599
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SUB-TOTAL 424,021 414,298 424,021 414,298
Interruptible 54 54 54 54
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TOTAL SYSTEM CUSTOMERS 424,075 414,352 424,075 414,352
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Off System/Capacity Management 38 32 38 32
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TOTAL NJNG CUSTOMERS 424,113 414,384 424,113 414,384
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PAGE 9 OF 9
NEW JERSEY NATURAL GAS COMPANY
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Three Months Ended Twelve Months Ended
UNAUDITED December 31, December 31,
(Thousands, except customer & weather data) 2001 2000 2001 2000
======================================================================================================================
DEGREE DAYS
Actual 1,327 1,941 4,456 4,564
Normal 1,675 1,679 4,808 4,865
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Percent of Normal 79.2% 115.6% 92.7% 93.8%
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NJR ENERGY SERVICES COMPANY
======================================================================================================================
REVENUES $ 170,888 $ 338,344 $ 855,278 $ 689,020
==================================================================
OPERATING INCOME $ 3,525 $ 4,071 $ 5,092 $ 6,172
==================================================================
INCOME FROM CONTINUING OPERATIONS (LOSS) $ 2,136 $ 1,937 $ 3,605 $ 4,230
==================================================================
GAS SOLD AND MANAGED (BCF) 60.9 55.7 178.7 140.7
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RETAIL & OTHER
======================================================================================================================
REVENUES $ 5,093 $ 6,329 $ 20,238 $ 25,157
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OPERATING INCOME $ 1,247 $ 1,001 $ 5,173 $ 3,682
==================================================================
INCOME FROM CONTINUING OPERATIONS (LOSS) $ 411 $ (679) $ 2,508 $ (1,015)
==================================================================
APPLIANCES UNDER CONTRACT AT DECEMBER 31 273,859 270,343 273,859 270,343
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