As filed with the Securities and Exchange Commission on October 29, 1999
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 - OCTOBER 29, 1999
Commission Registrant, State of Incorporation I.R.S. Employer
File Number Address and Telephone Number Identification No.
- ----------- ------------------------------------- ------------------
0-25595 NIAGARA MOHAWK HOLDINGS, INC. 16-1549726
(a New York corporation)
300 Erie Boulevard West
Syracuse, New York 13202
Telephone 315-474-1511
1-2987 NIAGARA MOHAWK POWER CORPORATION 15-0265555
(a New York corporation)
300 Erie Boulevard West
Syracuse, New York 13202
Telephone 315-474-1511
<PAGE>
Item 5. Other Events
- ---------------------
(a) On October 29, 1999, Niagara Mohawk Holdings, Inc. issued a press
release relating to its third quarter earnings for 1999. See
attached Exhibit No. 99.
Item 7. Financial Statements and Exhibits
- ------------------------------------------
(c) Exhibits - Following is the list of Exhibits furnished in accordance
with the provisions of Item 601 of Regulation S-K, filed as part of
this current report on Form 8-K.
Exhibit No. 99 - Press release of Niagara Mohawk Holdings, Inc. issued on
October 29, 1999 relating to its third quarter earnings for 1999.
<PAGE>
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.
NIAGARA MOHAWK HOLDINGS, INC.
-----------------------------
(Registrant)
Date: October 29, 1999 By /s/Steven W. Tasker
-----------------------------
Steven W. Tasker
Vice President-Controller and
Principal Accounting Officer,
in his respective capacities
as such
NIAGARA MOHAWK POWER CORPORATION
---------------------------------
(Registrant)
Date: October 29, 1999 By /s/Steven W. Tasker
-------------------------------
Steven W. Tasker
Vice President-Controller and
Principal Accounting Officer,
in his respective capacities
as such
<PAGE>
EXHIBIT INDEX
-------------
Following is the index of Exhibits furnished in accordance with the provisions
of Item 601 of Regulation S-K, filed as part of this current report on Form 8-K.
Exhibit No. 99 - Press release of Niagara Mohawk Holdings, Inc. issued on
October 29, 1999 relating to its third quarter earnings for 1999.
EXHIBIT NO. 99
NIAGARA MOHAWK HOLDINGS REPORTS RESULTS
FOR THIRD QUARTER
COMPANY RETIRES OVER $1 BILLION IN DEBT THIS YEAR
SYRACUSE, Oct. 29 -- Niagara Mohawk Holdings, Inc. (NYSE: NMK) today
reported that cash flow has significantly improved as the company completes
the first year of the full impact of the Master Restructuring Agreement (MRA)
with a group of Independent Power Producers (IPPs), and the POWERCHOICE
agreement. Niagara Mohawk Holdings, Inc. is the parent company of Niagara
Mohawk Power Corporation (Niagara Mohawk), a regulated energy delivery
company.
Although the MRA has and will continue to depress earnings because of the
amortization of the $4 billion regulatory asset recorded in connection with
the MRA (a non-cash charge), the lower payments to IPPs more than offset the
higher interest costs incurred to finance the MRA. The increased cash flow
from operations, together with the proceeds from the sale of the company's coal
and hydro electric generating assets and a cash refund from the Internal
Revenue Service received earlier this year, has allowed Niagara Mohawk to
retire over $1 billion in debt during 1999. "We have followed through on our
strategy to retire capital and have begun to rebuild shareholder value," said
William E. Davis, chairman and chief executive officer of Niagara Mohawk
Holdings.
Earnings before interest, income taxes, depreciation and amortization (EBITDA)
for the 12 months ended September 30, 1999, were $1.3 billion, an increase of
approximately $400 million compared to the 12 months ended September 30, 1998.
The significant improvement in EBITDA is due primarily to the reduction in
payments to the IPPs.
The company reported a loss in the third quarter of 1999 of $31.7 million, or 17
cents per share, as compared to earnings of $8.5 million, or 5 cents per share,
for the third quarter in 1998. The non-cash amortization of the MRA regulatory
asset reduced earnings in the third quarter of 1999 by $62.8 million, or 33
cents per share and by $20.9 million, or 11 cents per share in the third quarter
of 1998. Results in the third quarter of 1999 also reflect the cost of the
early redemption of approximately $670 million of long-term debt, which reduced
earnings in the third quarter by $13.1 million, or 7 cents per share, and is
reflected as an extraordinary item. Earnings for the third quarter of 1998 were
lower by 5 cents per share as a result of incremental expenses incurred to
restore service following a severe windstorm.
The company reported a loss of $43.4 million, or 23 cents per share, for the 12
months ended September 30, 1999, as compared to a loss of $132.3 million, or 85
cents per share, for the 12 months ended September 30, 1998. Niagara Mohawk's
lower aggregate fuel and purchased power costs, partly offset by increased
interest charges, improved earnings by $158.7 million or 85 cents per share
during the 12-month period ended September 30, 1999. This improvement was
offset by the non-cash amortization of the regulatory asset of $230.3 million
or $1.23 per share. This reflects the first year of the full impact of the MRA
and POWERCHOICE. Results for the 12 months ended September 30, 1999, also
reflect the costs of the early redemption of approximately $822 million of
long-term debt, which reduced earnings in this period by $23.8 million, or 13
cents per share, and is reflected as an extraordinary item. The loss for the
12-month period ended September 30, 1998, includes the impact of the one-time,
non-cash POWERCHOICE charge of $171.1 million after-tax, or $1.10 per share,
taken in June 1998 and the incremental costs of the January ice storm of 28
cents per share.
Electric revenues in the third quarter of 1999 were $853.6 million, down
0.7 percent from the third quarter of 1998, primarily due to POWERCHOICE rate
reductions and lower wholesale sales. For the 12 months ended September 30,
1999, electric revenues were $3.2 billion, down 3.0 percent compared to the 12
months ended September 30, 1998.
Natural gas revenues in the third quarter of 1999 were $73.7 million, up
3.8 percent from the third quarter of 1998. For the 12 months ended September
30, 1999, natural gas revenues were $573.9 million, down 3.4 percent compared
to the 12 months ended September 30, 1998.
The Consolidated Statements of Income will be filed with the Securities and
Exchange Commission on Form 8-K.
NOTE: This release contains statements that constitute forward-looking
information. Such statements are subject to certain risks,
uncertainties and assumptions. All of these forward-looking statements
are based on estimates and assumptions made by the company's management
which, although believed by the company's management to be reasonable,
are inherently uncertain. Such forward-looking statements are not
guarantees of future performance or results and involve certain risks
and uncertainties. Actual results or developments may differ
materially from the forward-looking statements as a result of various
factors.
NIAGARA MOHAWK HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
In thousands of dollars
Three Months Ended Nine Months Ended Twelve Months Ended
September 30, September 30, September 30,
1999 1998* 1999 1998* 1999* 1998*
---- ----- ---- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Electric. . . . . . . . . . . . . . . . . . . . . . . . $ 853,588 $859,597 $2,451,220 $2,506,048 $3,206,316 $3,305,886
Gas . . . . . . . . . . . . . . . . . . . . . . . . . . 73,708 71,034 442,558 433,893 573,894 594,359
Non-utility . . . . . . . . . . . . . . . . . . . . . . 106,931 49,143 173,904 148,413 191,568 199,698
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
1,034,227 979,774 3,067,682 3,088,354 3,971,778 4,099,943
----------- -------- ----------- ----------- ----------- ------------
OPERATING EXPENSES:
Fuel for electric generation. . . . . . . . . . . . . . 53,079 80,045 157,183 178,433 218,732 230,557
Electricity purchased . . . . . . . . . . . . . . . . . 319,417 279,148 714,496 992,068 848,613 1,323,262
Gas purchased . . . . . . . . . . . . . . . . . . . . . 48,803 45,869 220,587 245,945 282,483 356,752
Other operation and maintenance expenses. . . . . . . . 230,265 226,245 656,555 704,692 900,777 937,964
POWERCHOICE charge. . . . . . . . . . . . . . . . . . . - - - 263,227 - 263,227
Amortization of MRA regulatory asset. . . . . . . . . . 96,625 32,184 289,874 32,184 386,523 32,184
Depreciation and amortization . . . . . . . . . . . . . 79,752 88,867 268,677 264,877 359,719 350,681
Other taxes . . . . . . . . . . . . . . . . . . . . . . 107,965 116,185 328,988 357,666 431,834 474,917
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
935,906 868,543 2,636,360 3,039,092 3,428,681 3,969,544
----------- -------- ----------- ----------- ----------- ------------
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . 98,321 111,231 431,322 49,262 543,097 130,399
Other income (deductions) . . . . . . . . . . . . . . . 7,479 44,080 4,065 62,118 (9,465) 71,149
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . 105,800 155,311 435,387 111,380 533,632 201,548
Interest charges. . . . . . . . . . . . . . . . . . . . 117,661 133,658 377,896 265,109 509,965 333,755
Preferred dividend requirement of subsidiary. . . . . . 8,991 9,137 27,039 27,531 36,063 36,767
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
INCOME (LOSS) BEFORE FEDERAL
& FOREIGN INCOME TAXES. . . . . . . . . . . . . . . . . (20,852) 12,516 30,452 (181,260) (12,396) (168,974)
Federal & foreign income taxes. . . . . . . . . . . . . (2,199) 4,000 23,570 (50,337) 7,179 (36,696)
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM . . . . . . . . (18,653) 8,516 6,882 (130,923) (19,575) (132,278)
Extraordinary item - Loss from the
extinguishment of debt,
net of income taxes. . . . . . . . . . . . . . . . (13,054) - (23,804) - (23,804) -
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
NET INCOME (LOSS) . . . . . . . . . . . . . . . . . . . $ (31,707) $ 8,516 $ (16,922) $ (130,923) $ (43,379) $ (132,278)
=========== ======== =========== =========== =========== ===========
Average number of shares of common
stock outstanding (in thousands). . . . . . . . . 187,365 187,365 187,365 159,049 187,365 155,362
Basic and diluted earnings (loss) per average
share of common stock before extraordinary item . . . $ (0.10) $ 0.05 $ 0.04 $ (0.82) $ (0.10) $ (0.85)
Extraordinary item per average
share of common stock. . . . . . . . . . . . . . . . . (0.07) - (0.13) - (0.13) -
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
Basic and diluted earnings (loss) per average
share of common stock . . . . . . . . . . . . . . $ (0.17) $ 0.05 $ (0.09) $ (0.82) $ (0.23) $ (0.85)
- ------------------------------------------------------- =========== ======== =========== =========== =========== ===========
OTHER OPERATING DATA:
Earnings before interest charges, interest income,
income taxes, depreciation and amortization, and other
regulatory adjustments (EBITDA) . . . . . . . . . . . . - - - - $1,278,337 $ 885,154
Net cash interest . . . . . . . . . . . . . . . . . . . - - - - $ 423,371 $ 287,469
Ratio of EBITDA to net cash interest+A22. . . . . . . . - - - - 3.0 3.1
</TABLE>
NOTES:
Prior period consolidated financial statements have been prepared from Niagara
Mohawk Power Corporation's prior period consolidated financial statements,
except that accounts have been reclassified to reflect the Niagara Mohawk
Holdings structure.
- - The above information is not given in connection with any sale or offer to
sell or buy any stock or security.
- - The Company files periodic reports pursuant to the Securities Exchange Act
of 1934. Accordingly, with respect to the financial information set forth
above, you are requested to refer to such filings for more detailed
information.
NIAGARA MOHAWK HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
In thousands of dollars
Three Months Ended Nine Months Ended Twelve Months Ended
September 30, September 30, September 30,
1999 1998* 1999 1998* 1999* 1998*
---- ----- ---- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Electric. . . . . . . . . . . . . . . . . . . . . . . . $ 853,588 $859,597 $2,451,220 $2,506,048 $3,206,316 $3,305,886
Gas . . . . . . . . . . . . . . . . . . . . . . . . . . 73,708 71,034 442,558 433,893 573,894 594,359
Non-utility . . . . . . . . . . . . . . . . . . . . . . 106,931 49,143 173,904 148,413 191,568 199,698
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
1,034,227 979,774 3,067,682 3,088,354 3,971,778 4,099,943
----------- -------- ----------- ----------- ----------- ------------
OPERATING EXPENSES:
Fuel for electric generation. . . . . . . . . . . . . . 53,079 80,045 157,183 178,433 218,732 230,557
Electricity purchased . . . . . . . . . . . . . . . . . 319,417 279,148 714,496 992,068 848,613 1,323,262
Gas purchased . . . . . . . . . . . . . . . . . . . . . 48,803 45,869 220,587 245,945 282,483 356,752
Other operation and maintenance expenses. . . . . . . . 230,265 226,245 656,555 704,692 900,777 937,964
POWERCHOICE charge. . . . . . . . . . . . . . . . . . . - - - 263,227 - 263,227
Amortization of MRA regulatory asset. . . . . . . . . . 96,625 32,184 289,874 32,184 386,523 32,184
Depreciation and amortization . . . . . . . . . . . . . 79,752 88,867 268,677 264,877 359,719 350,681
Other taxes . . . . . . . . . . . . . . . . . . . . . . 107,965 116,185 328,988 357,666 431,834 474,917
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
935,906 868,543 2,636,360 3,039,092 3,428,681 3,969,544
----------- -------- ----------- ----------- ----------- ------------
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . 98,321 111,231 431,322 49,262 543,097 130,399
Other income (deductions) . . . . . . . . . . . . . . . 7,479 44,080 4,065 62,118 (9,465) 71,149
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . 105,800 155,311 435,387 111,380 533,632 201,548
Interest charges. . . . . . . . . . . . . . . . . . . . 117,661 133,658 377,896 265,109 509,965 333,755
Preferred dividend requirement of subsidiary. . . . . . 8,991 9,137 27,039 27,531 36,063 36,767
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
INCOME (LOSS) BEFORE FEDERAL
& FOREIGN INCOME TAXES. . . . . . . . . . . . . . . . . (20,852) 12,516 30,452 (181,260) (12,396) (168,974)
Federal & foreign income taxes. . . . . . . . . . . . . (2,199) 4,000 23,570 (50,337) 7,179 (36,696)
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM . . . . . . . . (18,653) 8,516 6,882 (130,923) (19,575) (132,278)
Extraordinary item - Loss from the
extinguishment of debt,
net of income taxes. . . . . . . . . . . . . . . . (13,054) - (23,804) - (23,804) -
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
NET INCOME (LOSS) . . . . . . . . . . . . . . . . . . . $ (31,707) $ 8,516 $ (16,922) $ (130,923) $ (43,379) $ (132,278)
=========== ======== =========== =========== =========== ===========
Average number of shares of common
stock outstanding (in thousands). . . . . . . . . 187,365 187,365 187,365 159,049 187,365 155,362
Basic and diluted earnings (loss) per average
share of common stock before extraordinary item . . . $ (0.10) $ 0.05 $ 0.04 $ (0.82) $ (0.10) $ (0.85)
Extraordinary item per average
share of common stock. . . . . . . . . . . . . . . . . (0.07) - (0.13) - (0.13) -
- ------------------------------------------------------- ----------- -------- ----------- ----------- ----------- ------------
Basic and diluted earnings (loss) per average
share of common stock . . . . . . . . . . . . . . $ (0.17) $ 0.05 $ (0.09) $ (0.82) $ (0.23) $ (0.85)
- ------------------------------------------------------- =========== ======== =========== =========== =========== ===========
OTHER OPERATING DATA:
Earnings before interest charges, interest income,
income taxes, depreciation and amortization, and other
regulatory adjustments (EBITDA) . . . . . . . . . . . . - - - - $1,278,337 $ 885,154
Net cash interest . . . . . . . . . . . . . . . . . . . - - - - $ 423,371 $ 287,469
Ratio of EBITDA to net cash interest+A22. . . . . . . . - - - - 3.0 3.1
</TABLE>
NOTES:
Prior period consolidated financial statements have been prepared from Niagara
Mohawk Power Corporation's prior period consolidated financial statements,
except that accounts have been reclassified to reflect the Niagara Mohawk
Holdings structure.
- - The above information is not given in connection with any sale or offer to
sell or buy any stock or security.
- - The Company files periodic reports pursuant to the Securities Exchange Act
of 1934. Accordingly, with respect to the financial information set forth
above, you are requested to refer to such filings for more detailed
information.
