Missed the quarter; 91 cents versus 1.05 consensus.
Thursday October 30 8:34 AM EST
Company Press Release
Calpine's Third Quarter Net Income Up 79% from Last Year
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 30, 1997--Calpine Corporation's (NYSE:CPN) strong focus on the U.S. power market is paying off with record earnings and a dramatic increase in its power plant portfolio.
Net income was $19.1 million for the quarter ended September 30, 1997, representing a 79% increase compared to $10.7 million for the third quarter of 1996. Earnings per share increased 20% to $0.91 per share, from $0.76 per share for the same period in 1996. Revenues for the quarter increased 31% to $92.9 million, from $70.9 million a year ago. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was $64.7 million for the quarter, up 41% from $45.9 million for the same period a year ago.
For the nine months ended September 30, 1997, net income was $24.5 million, an increase of 61% compared to $15.2 million for the same period in 1996. Earnings per share for the nine months remained unchanged at $1.19 per share compared to last year. Revenues for the nine months ended September 30, 1997 increased 31% to $199.9 million from $152.9 million a year ago. EBITDA for the first nine months of 1997 was $127.4 million compared to $86.4 million in 1996. Total assets at September 30, 1997 were $1.4 billion as compared to $1.0 billion at September 30, 1996.
The increases in earnings for the three and nine months ended September 30, 1997 were primarily the result of the acquisition of the Gilroy Power Plant in August 1996 and the acquisition of the Texas City and Clear Lake Power Plants in June 1997.
Results for the quarter reflect the impact of regulatory changes in California which caused energy prices to increase at a lower rate than gas prices, reducing energy margins by approximately $3.0 million. The company is implementing a consolidated gas procurement program that will mitigate this effect in the future. In addition, results reflect a delay in the payment of capacity revenues of approximately $1.7 million which will be received in the fourth quarter.
''Calpine's focus on the U.S. power market has proven to be a sound strategy for the company. We've made tremendous progress this year toward our goal of becoming a major power generation company,'' stated Calpine President Peter Cartwright.
''We are now firmly established in three major markets; the Western U.S., where we have 967 megawatts in operation and 500 megawatts under development; in Texas with 827 megawatts in operation, 240 megawatts under construction and 430 megawatts under development; and the Eastern U.S., where we will have 778 megawatts in operation upon completion of our Gas Energy acquisition and 169 megawatts under construction,'' continued Cartwright. ''Each of these markets offers huge growth opportunities for Calpine as electricity deregulation proceeds. We're positioning Calpine for the future while continuing to produce outstanding quarterly financial results.'' |
