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: November 13, 2003
Date of earliest event reported: November 13, 2003
MAINE & MARITIMES CORPORATION
(Exact name of registrant as specified in its charter)
Maine
(State or other jurisdiction of
incorporation or organization)
333-103749
(Commission File No.)
30-0155348
(I.R.S. Employer Identification No.)
209 State Street, Presque Isle, Maine 04769
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: 207-760-2499
Maine & Maritimes Corporation
Item 12. Results of Operations and Financial Condition.
Maine & Maritimes Corporation's Third Quarter Results
Exceed Management Expectations
PRESQUE ISLE, Maine--(BUSINESS WIRE)--Nov. 13, 2003--(AMEX:MAM):
According to J. Nick Bayne, President and Chief Executive Officer of
Maine & Maritimes Corporation, "Our consolidated results for the first
three quarters of 2003 have exceeded our internal expectations. We
anticipated a significant, one-time cost associated with the formation
of our holding company structure; increased costs associated with our
rate filings with the Maine Public Utilities Commission and Federal
Energy Regulatory Commission; and a decrease in Energy Atlantic's
earnings compared to the third quarter of 2002, when they experienced
a considerable final account settlement of its Standard Offer Service
within Central Maine Power Company's service area. Excluding Energy
Atlantic's normal earnings and one-time settlement in the third
quarter of 2002, Maine & Maritimes' earnings for the third quarter of
2003 outperformed the same period for 2002, resulting in $0.23 per
share in 2003 compared to $0.06 per share during the third quarter of
2002. We are making significant progress in reducing structural costs,
while laying the foundation for our growth. We remain confident in our
conservative approach to growth and continue to focus on the creation
of long-term shareholder value, while continuing market competitive
dividend yields."
Maine & Maritimes Corporation announced unaudited financial
results for the nine months ended September 30, 2003, reporting
consolidated revenues of $27.5 million compared with $33.6 million for
the nine months ended September 30, 2002. Consolidated earnings were
$1.97 million compared with $6.03 million for the same period last
year, and earnings per share were $1.25 compared with $3.83 a year
ago. The Company had net income of $.27 million or $.17 per share for
the quarter ended September 30, 2003, as compared to net income of
$3.52 million or $2.24 per share for the third quarter of 2002.
Amounts shown for 2002 were reported by Maine Public Service Company.
As noted, the significant difference between the third quarter of 2003
and 2002 was primarily a result of Energy Atlantic's one-time final
settlement for its Standard Offer Service within Central Maine Power
Company's service area.
Continuing efforts to contain costs positively impacted the
transmission and distribution utility (Maine Public Service Company),
resulting in an increase in earnings of $.21 per share for the first
nine months of 2003. An additional $0.15 per share was realized during
the third quarter, pursuant to an accounting order by the Maine Public
Utilities Commission, allowing the Company to amortize costs
associated with Maine Public Service's 2002 Voluntary Early Retirement
Program over a period of seven years. Also positively impacting
earnings for the first nine months of 2003 by $0.14 per share were net
interest savings and carrying charges on stranded costs. The third
quarter 2003 earnings decreased by $2.07 per share, as compared to the
same period in 2002, as previously mentioned, principally due to the
Energy Atlantic one-time Standard Offer Service final account
settlement of $1.96 per share, as well as $0.11 per share as a result
of increases in depreciation expenses. Rate filings with the Maine
Public Utilities Commission and the Federal Energy Regulatory
Commission, as well as advisory services concerning the long-term
financial strategies of the Company and ongoing costs associated with
Sarbanes-Oxley compliance, decreased earnings by $.28 per share for
the first nine months of 2003, including $.11 per share for the third
quarter of 2003, when compared to the same periods in 2002. As
anticipated, expenses associated with seeking the necessary regulatory
approvals, as well as incremental organizational costs associated with
the new corporate structure, offset earnings by $.34 per share for the
first nine months of 2003.
The Company's unregulated subsidiary, Energy Atlantic, LLC,
experienced a decrease in normal operation earnings of $.28 per share
during the third quarter of 2003, compared to the third quarter of
2002, and a $.36 per share decrease in earnings for the first nine
months of 2003, compared to the same periods in 2002. Both the current
quarter and nine-month periods were affected by the expiration of
retail contracts associated with the Company's decision to withdraw
from the northern Maine Competitive Electricity Supply market, while
the loss of standard offer service within Central Maine Power
Company's territory, effective March 1, 2002, impacted the nine months
results. The current standard offer pricing in Maine, coupled with the
increased credit requirements associated with acquiring wholesale
supply, as well as other market factors, continues to hamper retail
competitive supply sales.
Due to continuing changes within the wholesale power marketing
industry and retail competitive electric supply market, the Company is
evaluating alternative strategies pertaining to Energy Atlantic that
may involve the sale of the subsidiary, cessation of competitive
electric supply operations, a refinement of its market area, and/or an
expansion of its products and services other than energy sales. Final
decisions concerning Energy Atlantic are targeted for the fourth
quarter of 2003.
Maine & Maritimes Corporation and Subsidiaries Earnings Report for
the three months and nine months ended September 30, 2003 and 2002 are
as follows:
Three Months Ended September 30,
(Unaudited)
2003 2002
Maine Public Service Co. Operating Revenues $ 6,822,287 $ 6,582,176
Energy Atlantic, LLC Operating Revenues $ 1,288,641 $ 7,553,890
Total Operating Revenues $ 8,110,928 $ 14,136,066
Net Income Available for Common Shareholders $ 264,588 $ 3,521,786
Basic & Diluted Earnings Per Common Share $ 0.17 $ 2.24
Average Shares Outstanding 1,574,656 1,573,926
Nine Months Ended September 30,
(Unaudited)
2003 2002
Maine Public Service Co. Operating Revenues $22,724,518 $ 22,582,221
Energy Atlantic, LLC Operating Revenues $ 4,775,226 $ 11,012,473
Total Operating Revenues $27,499,744 $ 33,594,694
Net Income Available for Common Shareholders $ 1,969,091 $ 6,024,516
Basic & Diluted Earnings Per Common Share $ 1.25 $ 3.83
Average Shares Outstanding 1,574,520 1,573,782
Cautionary Statement Regarding Forward-Looking Information
NOTE: This presentation contains 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, as amended. Although Maine
& Maritimes Corporation (MAM) believes that in making such statements,
its expectations are based on reasonable assumptions, any such
statement involves uncertainties and risks. MAM cautions that there
are certain factors that can cause actual results to differ materially
from the forward-looking information that has been provided. The
reader is cautioned not to put undue reliance on this forward-looking
information, which is not a guarantee of future performance and is
subject to a number of uncertainties and other factors, many of which
are outside the control of MAM; accordingly, there can be no assurance
that such indicated results or events will be realized.
The information herein is qualified in its entirety by reference
to factors contained in the Forward-Looking Statement of the
Management's Discussion and Analysis of Financial Condition and
Results of Operation in Maine Public Service Company's 10-K for the
year ended December 31, 2002, and subsequent securities filings, as
well as, but not necessarily limited to the following factors: the
impact of recent and future federal and state regulatory changes in
environmental and other laws and regulations to which MAM and its
subsidiaries are subject, as well as changes in application of
existing laws and regulations; current and future litigation; interest
rates; general economic conditions; the performance of projects
undertaken by unregulated businesses; the success of efforts to invest
in and develop new opportunities; internal restructuring or other
restructuring options that may be pursued by MAM or its subsidiaries,
including acquisitions or dispositions of assets or businesses, which
cannot be assured to be completed or beneficial to MAM or its
subsidiaries; financial market conditions; the effects of terrorist
incidents; weather; the timing and acceptance of new product and
service offerings; general industry trends; changes in business
strategy and development plans; capital market conditions and the
ability to raise capital; competition; and rating agency actions,
among others.
CONTACT: Maine & Maritimes Corporation
Annette N. Arribas, 207-760-2402
aarribas@maineandmaritimes.com
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
MAINE & MARITIMES CORPORATION
Date: November 13, 2003
By: /s/ J. Nicholas Bayne
J. Nicholas Bayne, President & CEO