Date: Thu, 18 Dec 1997 21:24:17 GMT Server: Apache/1.2.0 Last-Modified: Mon, 03 Nov 1997 13:15:48 GMT ETag: "a6f25-2365-345dce84" Content-Length: 9061 Accept-Ranges: bytes Connection: close Content-Type: text/html October 31, 1997

October 31, 1997

 

 

INDIANA ENERGY, INC.

REPORTS CONSOLIDATED EARNINGS AND RESTRUCTURING CHARGE;

DIVIDEND UNCHANGED

INDIANAPOLIS--Indiana Energy, Inc., the parent company of Indiana Gas Company, Inc. and other subsidiaries, reported consolidated net income of $20.5 million for the fiscal year ended September 30, 1997, as compared to net income of $42.2 million for fiscal 1996. Earnings per average common share for fiscal 1997 were 91 cents, compared to $1.87 per share for last year. Net income and earnings per share for fiscal 1997 before restructuring costs were $45.0 million and $1.99 per share, respectively. The 12-cent increase in earnings per share from 1996, before restructuring costs, is due primarily to lower operation and maintenance expenses, higher earnings recognized from Indiana Energy’s energy marketing affiliate and a gain on the sale of certain nonutility assets.

"Our strong pre-restructuring earnings report confirms that Indiana Energy continues to be a vibrant, growing business--it was a very good year. The strength of this year's results encouraged us to accelerate the implementation of our previously announced growth strategy, including doing the difficult things that will make it work. That strategy is to become a leading regional provider of energy products and services and grow earnings per share by an average annual amount of 10 percent over the next five years," said Niel C. Ellerbrook, president and chief operating officer of Indiana Energy.

Net income and earnings per share reflect an after-tax restructuring charge of $24.5 million recorded by Indiana Gas in the fourth quarter of fiscal 1997. The charge, which was approved by Indiana Gas’ board of directors, results from a restructuring of Indiana Gas’ operations, including the implementation of several actions designed to reduce its operating costs and position it to remain a competitive choice for energy customers. Included are costs associated with Indiana Gas’ work force reductions and the write off and writedown of certain assets. "While the decisions to make the reductions and writedowns were difficult ones, our lower cost structure should contribute to our competitive position in the market place and our ability to increase shareholder value," said Ellerbrook.

The board of directors of Indiana Energy today also declared a cash dividend of 29 ½ cents per share of common stock. This is unchanged from the previous quarter. The dividend is payable December 1, 1997, to shareholders of record November 14, 1997.

SUMMARY OF CONSOLIDATED EARNINGS DATA:

 

Three Months Ended September 30

         

(In Thousands Except Per Share Data)

1997(1)

 

1996

 
         

Utility Operating Revenues

$ 58,498 

 

$ 62,521 

 
         

Net Income (Loss)

$ (27,597)

 

$ (5,928)

 
         

Earnings (Loss) Per Average Common Share

$ (1.22)

 

$ (.27)

 
         

Average Common Shares Outstanding

22,581 

 

22,474 

 

 

 

Twelve Months Ended September 30

         

(In Thousands Except Per Share Data)

1997(1)

 

1996

 
         

Utility Operating Revenues

$ 530,407

 

$ 530,594

 
         

Net Income

$ 20,503

 

$ 42,201

 
         

Earnings Per Average Common Share

$ .91

 

$ 1.87

 
         

Average Common Shares Outstanding

22,580

 

22,513

 

 

(1) Reflects an after-tax restructuring charge of $24.5 million or $1.08 per common

share recorded during the fourth quarter of fiscal 1997.

NOTE: Net income (loss) for the three-month period ended September 30 is not indicative of net income (loss) for an annual period due to the seasonal sales of gas for space heating purposes.

 

 

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