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: May 10, 2004
Date of earliest event reported: May 7, 2004
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 Announces First Quarter 2004 Results
PRESQUE ISLE, Maine--(BUSINESS WIRE)--May 10, 2004--Maine &
Maritimes Corporation (AMEX:MAM) today announced its financial and
operating results for the three month period ended March 31, 2004.
Income from continuing operations was $1,907,823 ($1.21 per share) for
the first quarter of 2004 compared to $1,937,900 ($1.23 per share) for
the first quarter of 2003. The loss from discontinued operations,
Energy Atlantic, was $358,097 ($0.23 per share) for the first quarter
of 2004 as compared to its income of $2,344 for the same period in
2003. Therefore, consolidated net income was $0.98 per share for the
first quarter ended March 31, 2004, compared to $1.23 per share for
the first quarter of 2003.
J. Nick Bayne, President and Chief Executive Officer of Maine &
Maritimes Corporation, stated, "We remain confident in our overall
growth strategy and long-term outlook. The suspension of Energy
Atlantic's operations is the last element of our transformation
strategy of former operations that are no longer consistent with our
strategic objective to increase shareholder value with a favorable
risk-to-reward relationship. After considerable evaluation of Energy
Atlantic's market, regional liquidity, and inherent risks, we decided
during late in the first quarter to suspend Energy Atlantic's
operations." Energy Atlantic is the Corporation's unregulated retail
energy marketing subsidiary. "As a result of our decision, we have
significantly reduced Energy Atlantic's operations, but will continue
to maintain key operating licenses to allow for a possible re-entry
into the market, maintaining a low-cost re-entry option should the
retail electricity supply market significantly change and such a
re-entry is consistent with our strategic business objectives."
According to Bayne, "Our consolidated results for the first
quarter of 2004 were in line with management's expectations due to
expenses associated with the suspension of operations at Energy
Atlantic, LLC, as well as expenses associated with Sarbanes-Oxley
compliance and the implementation of the Corporation's growth
strategy. On a year-to-date basis, our electric delivery subsidiary,
Maine Public Service Company, increased its first quarter 2004
revenues by $629,209 over the same period in 2003, or $0.24 per share,
as a result of increases in retail distribution and wholesale
transmission rates."
"We are extremely pleased with the trajectory and progress being
made by our new subsidiary, The Maricor Group and its Canadian
subsidiary, Maricor Ltd. Maricor Ltd's newly acquired Canadian
engineering firm positively impacted earnings by $0.03 per share for
the first quarter of 2004, exceeding expectations and helping offset
costs associated with the development of asset lifecycle management
operations," stated Bayne. "The Maricor Group is implementing its
overall growth strategy in a very deliberate manner, consistent with
the strategy communicated to the market." Other factors that
positively impacted earnings during the first quarter of 2004,
compared to the same period in 2003, included a reduction in
depreciation and stranded cost amortization expenses, as well as the
elimination of holding company formation costs that were expensed
during the first quarter of 2003. Legal, regulatory and consulting
expenses, net interest expenses and an increase in employee benefit
expenses had a negative impact on earnings for the quarter.
"We believe we are entering an environment of increasing interest
rates, which will impact businesses, especially electric utilities
that have debt or other financial instruments tied to variable
interest rates. Our decision in 2003 to fix Maine Public Service
Company's entire portfolio of long-term interest rates through the use
of interest rate swaps should serve to benefit our overall operations
in coming quarters and over the next several years. Our commitment to
executing a long-term strategy to increase shareholder value remains
on-track and is being implemented consistent with our strategic plan
and objectives," according to Bayne.
Maine & Maritimes Corporation announced unaudited financial
results for the three months ended March 31, 2004, reporting a 9.4%
increase in consolidated operating revenues from continuing operations
of $10.5 million, compared with $9.6 million for the same period in
2003. Consolidated earnings were $1.55 million compared with $1.94
million for the same period last year, and earnings per share were
$0.98 compared with $1.23 a year ago. Amounts for the first quarter of
2003 were reported for Maine Public Service Company. As noted
previously, the difference in consolidated earnings between the first
quarter of 2004 and 2003 was primarily a result of severance payments
and the expensing of software license payments resulting from the
suspension of operations at Energy Atlantic, LLC. Effective March 1,
2004, Energy Atlantic became an inactive subsidiary, and will remain
inactive until market conditions, the availability of supply, the
mandate for stringent credit requirements and the risk environment
improve. Management plans to continue to monitor both U.S. and
Canadian deregulated markets to determine the appropriate timing for
possible re-entry into the deregulated retail market.
Maine & Maritimes Corporation and Subsidiaries Earnings Report for
the three months ended March 31, 2004, is as follows:
Three Months Ended March 31,
(Unaudited)
2004 2003
Maine Public Service Co. Operating Revenues $10,208,811 $ 9,579,602
Unregulated Operating Revenues 289,707 -
Total Operating Revenues $10,498,518 $ 9,579,602
Income from Continuing Operations
Available for Common Shareholders $ 1,907,823 $ 1,937,900
(Loss) Income from Discontinued Operations (358,097) 2,344
Total Consolidated Net Income $ 1,549,726 $ 1,940,244
Basic & Diluted Earnings per Common Share
From Continuing Operations $ 1.21 $ 1.23
Basic & Diluted Earnings per Common Share
From Discontinued Operations (0.23) -
Total Earnings per Common Share $ 0.98 $ 1.23
Average Shares Outstanding 1,580,701 1,574,322
Maine & Maritimes Corporation ("MAM") is the parent company of
Maine Public Service Company ("MPS"), a regulated electric
transmission and distribution utility; and Maine & Maritimes Energy
Services Company, dba "The Maricor Group," and its Canadian
subsidiary, Maricor Ltd., both engineering, asset development and
lifecycle services companies. MAM, MPS, and The Maricor Group have
principal corporate offices in Presque Isle, Maine. MAM's corporate
website is www.maineandmaritimes.com.
Annual Meeting:
Maine & Maritimes Corporation's 2004 Annual Meeting of
Stockholders will be held on Tuesday, May 11, 2004, at 9:30 a.m.
(Eastern Daylight Time). The meeting will be held at the Northern
Maine Community College, Edmunds Conference Center, 33 Edgemont Drive,
Presque Isle, Maine.
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 & Maritimes Corporation's Form 10-K for
the year ended December 31, 2003, 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
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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: May 10, 2004
By: /S/ J. Nicholas Bayne
President & CEO
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