Gary! Is MIDL now into Marine Transportation?? I found this news release attached to MIDL.
(COMTEX) B: Eastern Enterprises Reports Third Quarter 1999 Results
B: Eastern Enterprises Reports Third Quarter 1999 Results
WESTON, Mass., Oct 26, 1999 (BUSINESS WIRE) -- Eastern Enterprises
(NYSE:EFU) today reported a net loss for the third quarter of 1999 of
$2.8 million, or $.12 per share, versus a loss of $3.8 million, or $.17
per share, for the third quarter of 1998. Eastern has historically
reported a loss in the third quarter due to the seasonal nature of its
natural gas distribution operations.
Net earnings for the first three quarters of 1999 were $26.9 million,
or $1.16 per share, compared to earnings of $31.2 million, or $1.37 per
share, in 1998. Including the effects of extraordinary items and an
accounting change, net earnings for the first nine months of 1998 were
$86.3 million, or $3.80 per share.
J. Atwood Ives, Eastern's chairman and chief executive officer,
commented, "In August, we announced that Eastern's Board of Trustees
and management were undertaking a review of the Company's strategic and
financial alternatives. While no final outcome has been determined, the
process continues to receive our full attention."
Mr. Ives continued, "During the quarter we completed the acquisition of
Colonial Gas Company and its integration with Boston Gas and Essex Gas
is proceeding on schedule. In July we announced a merger agreement with
EnergyNorth, Inc. (NYSE:EI) and are in the process of filing for
approval from the New Hampshire Public Utilities Commission and
preparing materials for EnergyNorth shareholder approval."
"We continue to experience a modest pick-up in our marine
transportation business, with improving rates and increased ton miles,
primarily the result of strong demand for grain exports. Our other
energy-related service businesses remain on track to generate a
profitable fourth quarter this year," Mr. Ives concluded.
Colonial Gas Company became a wholly-owned subsidiary of Eastern on
August 31, 1999. The merger was accounted for using the purchase method
and accordingly, results for Colonial Gas and Transgas (its
wholly-owned subsidiary) for the month of September 1999 only are
included in Eastern's financial statements. This acquisition reduced
third quarter earnings by $1.8 million, net, or $.08 per share, but
will be accretive to Eastern's earnings for the year. Eastern paid $150
million in cash and issued approximately 4.2 million shares of common
stock valued at $186 million in exchange for Colonial Gas' common stock
and assumed $138 million of debt. In connection with the merger,
Eastern recorded $248 million of goodwill, which is being amortized
over 40 years.
Natural Gas Distribution: Boston Gas, Essex Gas, and Colonial Gas (for
the month of September 1999 only) combined to generate an operating
loss of $9.4 million for the third quarter compared to an operating
loss of $7.6 million last year. The decrease reflects the inclusion of
Colonial Gas' $1.7 million post-acquisition operating loss and higher
operating costs, including a $2.2 million charge for an early
retirement program at Boston Gas related to the integration of Colonial
Gas operations, partially offset by lower bad debt expense. Revenues
increased 5% due to the addition of Colonial Gas revenues and higher
non-firm sales, partially offset by lower gas costs.
For the first three quarters of 1999, Boston Gas, Essex Gas and
Colonial Gas (September 1999 results only) reported operating earnings
of $45.9 million compared to $53.3 million in 1998, as colder weather
than last year and sales to new customers were more than offset by the
positive effect of the accounting of Essex Gas in 1998, lower average
customer usage and the factors discussed above. On a year-to-date
basis, temperatures have averaged 3% warmer than normal and 7% colder
than in the first nine months of 1998. Lower revenues for the first
nine months of 1998 were the result of lower non-firm sales and gas
costs and the continued migration of customers to transportation-only
gas service, partially offset by colder weather, sales to new customers
and the addition of Colonial Gas revenues.
Marine Transportation: Midland's operating earnings were $6.7 million
for the third quarter versus $8.4 million a year ago. This decline
primarily reflects the impact of higher operating expenses, partially
offset by improved productivity and operating conditions from a year
ago. Total tonnage decreased 2%, while ton miles improved 4% from 1998
third quarter levels, generally reflecting the improvement of long-haul
grain export markets. Overall, rates per ton mile rose 1% compared to
the third quarter last year, reflecting modest improvements in most
major market segments. Rates also benefited from contractual pass
through provisions in multi-year contracts related to fuel prices that
were up 22% from 1998 for the quarter, but down 2% for the first nine
months. Overall, Midland's third quarter revenues increased 4% over the
third quarter of 1998.
For the first three quarters of 1999, Midland's operating earnings were
$15.6 million compared to $22.2 million for the prior year. Increased
operating expenses and lower rates resulted in the earnings shortfall.
For the first nine months of 1999, tonnage fell 2%, while ton miles
increased 3%. Rates per ton mile were 2% lower than 1998, primarily
reflecting market weakness across-the-board earlier in the year.
Year-to-date, Midland's 1999 revenues increased modestly over 1998
levels.
Other Service Businesses: (This segment includes the results of
ServicEdge and AMR Data for all periods and the results of Transgas for
September 1999 only) These businesses reported revenues of $4.5 million
and had an operating loss of $1.2 million for the third quarter
compared to revenues of $1.7 million and an operating loss of $3.0
million for the quarter last year. Year-to-date, revenues totaled $11.1
million and the operating loss was $3.7 million as compared to revenues
of $3.0 million and an operating loss of $7.8 million in 1998.
Headquarters expense during the third quarter of 1999 declined
primarily due to lower legal and consulting fees versus the prior year,
which included Essex Gas transaction costs. Net interest expense
increased in the third quarter of 1999 mostly due to lower cash
balances as a result of the Colonial Gas acquisition. "Other, net" for
the third quarter of 1999 includes a $3.2 million reduction in the
environmental reserve, $2.5 million in environmental-related insurance
recoveries and a $1.8 million gain on the sale of a towboat compared to
realized gains on the sale of investments of $2.7 million in the third
quarter of 1998.
Pending merger: On July 15, 1999, Eastern announced it had entered into
an agreement to acquire EnergyNorth, Inc., owner of New Hampshire's
largest natural gas distributor, for a transaction value, including the
assumption of debt, of approximately $202 million. EnergyNorth serves
70,000 natural gas customers and 15,000 propane customers in central
and southern New Hampshire, across the state border from areas served
by Boston Gas, Essex Gas and Colonial Gas. EnergyNorth also owns a
profitable HVAC installation business. The cash/stock transaction is
subject to shareholder and regulatory approvals and is expected to
close mid-2000.
Eastern Enterprises owns and operates Boston Gas Company, Colonial Gas
Company, Essex Gas Company, Midland Enterprises Inc., ServicEdge
Partners, Inc. and Transgas, Inc. Upon completion of the pending merger
with EnergyNorth, Eastern will serve over 800,000 natural gas customers
in Massachusetts and New Hampshire. Midland, headquartered in
Cincinnati, Ohio, is the leading carrier of coal and a major carrier of
other dry bulk cargoes on the nation's inland waterways. ServicEdge is
the largest unregulated provider of residential HVAC equipment
installation and service to customers in Massachusetts. Transgas is the
nation's largest over-the-road transporter of liquefied natural gas.
This release and other company reports and statements issued or made
from time to time contain certain "forward-looking statements"
concerning projected future financial performance, expected plans or
future operations. Eastern cautions that actual results and
developments may differ materially from such projections or
expectations.
Investors should be aware of important factors that could cause actual
results to differ materially from the forward-looking projections or
expectations. These factors include, but are not limited to:
-- the effect of pending mergers and other strategic initiatives on
earnings and cash flow,
-- Eastern's ability successfully to integrate its new gas distribution
operations,
-- temperatures above or below normal in eastern Massachusetts, --
changes in market conditions for barge transportation,
-- adverse weather and operating conditions on the inland waterways,
-- uncertainties regarding the ultimate profitability of ServicEdge,
-- the functionality of programs and systems in the year 2000, -- the
impact of third parties' year 2000 issues,
-- changes in economic conditions, including interest rates and the
value of the dollar versus other currencies,
-- regulatory and court decisions, and -- developments with respect to
Eastern's previously-disclosed environmental liabilities.
Most of these factors are difficult to accurately predict and many are
beyond the control of the Company.
Eastern Enterprises' press releases are available via fax by calling,
toll-free, 1-800-311-4607 or on the Internet at efu.com.
EASTERN ENTERPRISES
Consolidated Revenues and Earnings
(In thousands, except per share amounts)
Three months ended September 30,
1999(1) 1998(2) % Chg
Revenues:
Natural Gas Distribution $ 70,790 $ 67,381 5
Marine Transportation 69,690 66,850 4
Other Services 4,498 1,650 nm
Total revenues $ 144,978 $ 135,881 7
Operating earnings:
Natural Gas Distribution ($ 9,436) ($ 7,646) (23)
Marine Transportation 6,706 8,421 (20)
Other Services (1,184) (2,977) 60
Headquarters (916) (2,324) 61
Total operating earnings (4,830) (4,526)(3) (7)
Other income (expense):
Interest expense, net (7,030) (6,027) (17)
Other, net 8,012(5) 3,155(6) nm
Earnings before income taxes (3,848) (7,398) 48
Provision for income taxes (1,025) (3,644) (72)
Earnings before extraordinary item
and accounting change (2,823) (3,754) 25
Extraordinary item, net of tax:
Reversal of Coal Act reserve 0 0 nm
Loss on early extinguishment
of debt 0 0 nm
Cumulative accounting change,
net of tax 0 0 nm
Net earnings ($ 2,823) ($ 3,754) nm
Diluted earnings per share before
extraordinary
item and accounting change ($ 0.12)(5) ($ 0.17)(3)(6) 30
Extraordinary item, net of tax:
Reversal of Coal Act reserve 0.00 0.00 nm
Loss on early extinguishment
of debt 0.00 0.00 nm
Cumulative accounting change,
net of tax 0.00 0.00 nm
Diluted earnings per share ($ 0.12) ($ 0.17) nm
Diluted average number of shares 24,250 22,699 7
Nine months ended September 30,
1999(1) 1998(2) % Chg
Revenues:
Natural Gas Distribution $ 452,441 $ 479,529 (6)
Marine Transportation 196,799 194,671 1
Other Services 11,087 3,028 nm
Total revenues $ 660,327 $ 677,228 (2)
Operating earnings:
Natural Gas Distribution $ 45,942 $ 53,328 (14)
Marine Transportation 15,605 22,228 (30)
Other Services (3,724) (7,811) 52
Headquarters (3,010) (4,843) 38
Total operating earnings 54,813 62,902(4) (13)
Other income (expense):
Interest expense, net (19,574) (18,947) (3)
Other, net 9,115(5) 5,384(7) 69
Earnings before income taxes 44,354 49,339 (10)
Provision for income taxes 17,449 18,144 4
Earnings before extraordinary item
and accounting change 26,905 31,195 (14)
Extraordinary item, net of tax:
Reversal of Coal Act reserve 0 48,425 nm
Loss on early extinguishment
of debt 0 (1,465) nm
Cumulative accounting change,
net of tax 0 8,193(8) nm
Net earnings $ 26,905 $ 86,348 (69)
Diluted earnings per share before
extraordinary
item and accounting change $1.16(5) $ 1.37(4)(7) (16)
Extraordinary item, net of tax:
Reversal of Coal Act reserve 0.00 2.13 nm
Loss on early extinguishment
of debt 0.00 (0.06) nm
Cumulative accounting change,
net of tax 0.00 0.36(8) nm
Diluted earnings per share $ 1.16 $ 3.80 (70)
Diluted average number of shares 23,239 22,693 2
(1) 1999 includes Colonial Gas and Transgas for the month of September
1999.
(2) 1998 includes Essex Gas for the three and nine month period
ending August 31, 1998, respectively.
(3) 1998 includes Essex Gas transaction costs of $1.5 million pretax
and net or $.07 per share.
(4) 1998 includes Essex Gas transaction costs of $2.8 million pretax
and net or $.12 per share.
(5) 1999 includes environmental insurance recoveries and reserve
adjustments of $5.7 million pretax, $3.7 million net or $.15 per
share.
(6) 1998 includes gains on sales of investments of $2.7 million
pretax, $1.8 million net or $.08 per share.
(7) 1998 includes gains on sales of investments of $3.8 million
pretax, $3.0 million net or $.13 per share.
(8) Reflects cumulative effect of accounting change adopted January 1,
1998 for recording unbilled revenue for Boston Gas.
EASTERN ENTERPRISES
Condensed Consolidated Balance Sheet
(In thousands)
Sept 30, Sept 30,
1999 1998
Current assets $ 223,886 $ 347,852
Net property and equipment 1,269,101 964,471
Other assets 415,508 166,064
Total assets $1,908,495 $1,478,387
Current liabilities $ 208,440 $ 151,814
Gas inventory financing 43,285 43,249
Long-term debt 516,683 387,311
Other liabilities 404,328 353,631
Shareholders' equity 735,759 542,382
Total liabilities and
shareholders' equity $1,908,495 $1,478,387
EASTERN ENTERPRISES
Condensed Consolidated Statement of Cash Flows
(In thousands)
Nine Months Ended Sept 30, 1999 1998
Cash and short-term investments
at beginning of period $ 159,836 $ 175,709
Cash from operations 124,880 129,706
Capital expenditures (46,971) (84,646)
Colonial Gas Acquisition (153,175) --
Dividends paid (28,458) (27,269)
Subsidiary preferred stock payment (3,000) --
Changes in long-term debt, net (3,442) 13,903
Changes in notes payable and gas
inventory financing, net (22,194) (49,507)
Other, net 3,242 9,605
Increase (decrease) in cash and
short-term investments (129,118) (8,208)
Cash and short-term investments
at end of period $ 30,718 $ 167,501
Copyright (C) 1999 Business Wire. All rights reserved.
Distributed via COMTEX.
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CONTACT: Eastern Enterprises
Jane W. McCahon
(781) 647-2316
WEB PAGE: businesswire.com
GEOGRAPHY: MASSACHUSETTS
INDUSTRY CODE: ENERGY
UTILITIES
TRANSPORTATION
ENVIRONMENT
EARNINGS
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