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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 (DATE OF EARLIEST EVENT REPORTED): AUGUST 7, 1998
AGL RESOURCES INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
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GEORGIA 1-14174 58-2210952
(STATE OR OTHER JURISDICTION (COMMISSION FILE NO.) (IRS EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
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303 PEACHTREE STREET, N.E., ATLANTA, GEORGIA 30308
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(404) 584-9470
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
1
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ITEM 7. EXHIBITS
99 Form of Press Release, dated August 7, 1998. See the Exhibit Index on
page 3 hereof.
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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.
AGL RESOURCES INC.
(Registrant)
/s/ J. Michael Riley
--------------------------
J. Michael Riley
Senior Vice President and
Chief Financial Officer
Date: August 7, 1998
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EXHIBIT INDEX
Exhibit No. Description
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99 Form of Press Release, dated
August 7, 1998
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EXHIBIT 99
FOR IMMEDIATE RELEASE
CONTACTS
FINANCIAL COMMUNITY MEDIA
MELANIE M. PLATT SUSAN K. CULLER, FINANCIAL
VICE PRESIDENT, INVESTOR RELATIONS, COMMUNICATIONS SPECIALIST
AND CORPORATE SECRETARY (404) 584-3833
(404) 584-3943
JOSEPH P. HEFFRON
INVESTOR RELATIONS SPECIALIST
(404) 584-3976
AGL RESOURCES INC. REPORTS THIRD QUARTER RESULTS
ATLANTA, GEORGIA, August 7, 1998 -- AGL Resources Inc. (NYSE: ATG) today
reported financial results for its third quarter in fiscal 1998. For the three
months ended June 30, 1998, the company posted a net loss of $1.2 million
compared with net income of $1.4 million for the year-ago quarter. Earnings
per share for the third quarter were a loss of 2 cents compared with a
3-cent gain a year ago.
"Our results were in line with our expectations, because it's normal to
report slight gains or losses during our fiscal third quarter under the rate
design that was in effect for the first nine months of this fiscal year," said
J. Michael Riley, senior vice president and chief financial officer of AGL
Resources. "And this is the last quarter we'll report results with those
particular rates, since the Natural Gas Competition and Deregulation Act
mandated a new rate design that began July 1."
The company said its lower third quarter earnings -- down about 5 cents per
share -- are attributable to start-up marketing expenses from the company's new
retail energy marketing subsidiary, and the costs related to the company's
recent management restructuring.
The company also reported that for the first nine months of its fiscal 1998
consolidated net income was $69.6 million compared with $80 million for the same
period in 1997. Earnings per share for the nine months were $1.22 per share
compared with $1.43 per share for the first nine months of 1997. The primary
reason for the lower year-to-date earnings is the decline in operating margin
from the company's natural gas utility during the first half of the year. Those
decreased margins are attributable to lower gas consumption per customer as a
result of more energy-efficient appliances and homes.
EFFECT OF NEW REGULATION
Mr. Riley said, "The new rates for utility delivery service, which are no
longer dependent on the amount of gas used by our customers, will level out the
utility's revenues during the year, and the company's earnings will be more
evenly distributed all through the year than in the past. The new rate design
matches revenues from customers much more closely to the cost incurred by the
utility,"
-more-
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AGL Resources
page 6
he said. "As the company changes from the old rate design to the new one, we
should see higher revenues during the summer months -- the company's fourth
fiscal quarter -- compared with the fourth quarter of 1997. Likewise, revenues
during the winter months -- the second quarter in fiscal 1999 -- are expected to
be lower than those during the second quarter in fiscal 1998."
Mr. Riley also commented, "The new rate design will affect the financial
results of the company in two ways. It will eliminate the adverse effects of
declining use per customer on the earnings of the company's natural gas utility.
And it also will shift the periods in which the revenues are earned."
QUARTERLY DIVIDEND DECLARED
The company's board of directors today declared a quarterly dividend on its
common stock of 27 cents per share. Payment will be made on September 1, 1998,
to shareholders of record on August 14, 1998.
The dividend, which remains unchanged from the previous quarter, equates to
$1.08 per share on an annualized basis. The September dividend will be the 203rd
consecutive dividend paid.
AGL Resources Inc. is a regional energy holding company with operations in
the Southeast. Atlanta Gas Light Company, the largest natural gas distributor in
the Southeast and the company's primary subsidiary, serves nearly 1.5 million
customers in Georgia and, through Chattanooga Gas Company, in southern
Tennessee. Although natural gas distribution is AGL Resources' core business, it
also is engaged in other energy-related businesses, including natural gas and
power marketing, wholesale and retail propane sales, and nonutility products and
services for residential, commercial, and industrial customers.
The company's home page address on the Internet is www.aglr.com.
This press release contains forward-looking statements. AGL Resources
wishes to caution readers that the assumptions, which form the basis for the
forward-looking statements, include many factors that are beyond AGL Resources'
ability to control or estimate precisely. Those factors include, but are not
limited to, the following: changes in the price and demand for natural gas; the
impact of changes in state and federal legislation and regulation on the company
and the natural gas industry; the effects of competition, particularly in
markets where prices and providers historically have been regulated; and
financial market conditions.
-more-
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AGL RESOURCES INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED FINANCIAL INFORMATION
JUNE 30, 1998
(Unaudited)
Millions of Dollars, Except Per Share Data
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3 MONTHS ENDED 9 MONTHS ENDED
JUNE 30, JUNE 30,
1998 1997 1998 1997
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Operating Revenues $247.0 $216.7 $1,133.2 $1,093.0
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Cost of Gas 150.6 117.5 717.5 664.3
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Operating Margin 96.4 99.2 415.7 428.7
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Operating Income $ 8.8 $ 15.1 $ 144.6 $ 164.3
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Consolidated Net Income
(Loss) $ (1.2) $ 1.4 $ 69.6 $ 80.0
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Earnings (Loss) Per Share
of Common Stock
Basic & Diluted $(0.02) $ 0.03 $ 1.22 $ 1.43
Average Number of
Shares Outstanding
(millions)
Basic 57.1 56.2 56.9 56.0
Diluted 57.2 56.3 57.0 56.1
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