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):
October 26, 1995
PACIFICORP
(Exact name of registrant as specified in its charter)
State of Oregon 1-5152 93-0246090
(State of Incorporation) (Commission (I.R.S. Employer
File No.) Identification
No.)
700 N.E. Multnomah, Suite 1600, Portland, Oregon
97232-4116
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(503) 731-2000
No Change
(Former Name or Former Address, if changed since last report)
<PAGE>
Item 5. OTHER EVENTS
Information contained in the news release of PacifiCorp issued on
October 26, 1994 is incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
c) Exhibit
99. PacifiCorp news release issued October 26, 1995.
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 thereunto duly authorized.
PACIFICORP
(Registrant)
By:
Richard T. O'Brien
Senior Vice President and
Chief Financial Officer
Date: November 2, 1995
<PAGE>
Chris Hunter (503) 731-2090 EXHIBIT 99
Scott Hibbs (503) 731-2123
FOR IMMEDIATE RELEASE..BUSINESS & FINANCIAL EDITORS..OCTOBER 26, 1995
PACIFICORP REPORTS THIRD QUARTER 1995 EARNINGS
PacifiCorp (NYSE: PPW) today reported third quarter 1995 earnings
on common stock of $159 million, or $0.56 per share, compared to $122
million, or $0.43 per share, for the same quarter a year ago. Included
in 1995 results is an after-tax gain of $37 million, or $0.13 per share,
relating to the completion of the sale of the Alaskan long-distance
operations of the company's telecommunications subsidiary, Pacific
Telecom, Inc. (PTI).
Earnings in the current quarter also benefitted from gains on asset
sales at the company's financial services subsidiary, which contributed
$0.03 per share. Earnings in the third quarter of 1994 included gains
from the sale of sulfur dioxide emission allowances, which contributed
$0.02 per share, and the resolution of past cost study issues associated
with the announcement of the sale of the Alaskan long-distance telephone
operations of PTI, which contributed $0.03 per share.
Fred Buckman, President and Chief Executive Officer, said, "The
Company's earnings trend for 1995 remains flat, in the face of
continuing weak wholesale energy prices and weather-related reductions
<PAGE>
in electric sales. We continue to aggressively manage fuel costs in our
electric operations and take other prudent cost-reduction steps to help
improve 1995 earnings. We also continue actively pursuing strategic
opportunities related to our core competencies, both domestically and
abroad, that we expect will enhance the earnings outlook for 1996 and
beyond."
<PAGE>
THIRD QUARTER 1995 EARNINGS ANALYSIS
ELECTRIC OPERATIONS
Revenues
Third quarter revenues decreased $12 million, or 2 percent, from
the third quarter of last year, to $668 million.
Retail revenues declined $5 million, or 1 percent, to $508 million.
Residential revenues were flat at $158 million, with the effect of a 1.4
percent increase in the average number of customers being offset by the
sale of the company's Sandpoint, Idaho distribution facilities in
December, 1994, and by lower average prices resulting from changes in
customer mix.
Commercial revenues increased $3 million to $150 million on the
strength of a 1.4 percent increase in average number of customers and
increased customer usage. The sale of the company's Sandpoint, Idaho
distribution facilities and weather-related reductions partially offset
these increases. Industrial sales declined $8 million to $191 million
primarily as the result of a $7 million decrease associated with
permanent oil and gas well closures in Wyoming.
Wholesale revenues declined $6 million, or 4 percent, to $145
million. Lower short-term and spot market sales prices and volumes
reduced wholesale revenues by $7 million and $9 million, respectively.
Partially offsetting these declines were increases in prices and volumes
<PAGE>
under the company's existing long-term wholesale contracts totalling $3
million and new long-term firm contracts, which contributed $7 million.
Sales to new wholesale customers include traditional capacity and energy
sales, as well as sales of ancillary services. The company's wholesale
sales mix for the quarter was 76 percent long-term firm sales and 24
percent short-term and spot market sales.
Operating Expenses
Operating expenses decreased $20 million, or 4 percent, from the
third quarter of last year. Reductions in fuel and purchased power
costs totalling $17 million accounted for most of the decline. Thermal
generation declined 569,000 mWh, or 4 percent. This was a result of
reduced retail demand, an abundance of lower-cost purchased power
alternatives in the spot market and a 174,000 mWh increase in hydro
production at company-owned facilities. Other operating expenses
declined $7 million in the quarter primarily due to reduced employee
incentive plan accruals. Depreciation and amortization increased $5
million, or 6 percent, primarily due to additional plant in service.
Earnings Contribution
Earnings contribution at Electric Operations increased $1 million
to $88 million. Income from operations increased $8 million, or 4
percent. Interest expense was up $3 million, or 4 percent, in the
quarter due primarily to higher debt balances. Income taxes increased
<PAGE>
$2 million due to higher pre-tax income and an increase in the effective
tax rate associated with the reversal of deductions flowed through to
retail electric customers in prior years.
TELECOMMUNICATIONS
Revenues
Revenues declined $51 million, or 26 percent, from the third
quarter of last year, to $144 million. The sale of PTI's Alaskan long-
distance operations (Alascom) in August, 1995, resulted in a revenue
decline of $75 million that included the $19 million effect of
settlement revenues in 1994 relating to past cost study issues.
Partially offsetting this decline was $15 million of revenues from the
Colorado local exchange operations purchased from US WEST in February,
1995. Increased revenues from PTI's cellular operations and existing
local exchange operations totalling $8 million also helped offset the
loss of Alascom revenues. Exclusive of acquisitions, the company's
local exchange access lines grew 5 percent over the comparable quarter
of 1994.
Operating Expenses
Operating expenses declined $35 million, or 25 percent, to $104
million. The sale of Alascom reduced operating expenses by $46 million.
Operating expenses of $8 million from the new Colorado local exchange
operations partially offset the decline.
<PAGE>
Earnings Contribution
Earnings contribution increased $27 million, to $53 million. The
gain on the sale of Alascom totalled $37 million. Excluding the effect
of the Alascom gain and its earnings contribution, PTI's contribution
increased $5 million, primarily due to the acquisition of local exchange
properties in Colorado.
In September and October, 1995, PTI announced the completion of
acquisitions of local exchange properties in Oregon and Washington from
US WEST. These acquisitions add 36,000 access lines.
OTHER
Earnings contribution increased $9 million as a result of gains on
asset sales at the company's financial services subsidiary.
The average number of common shares outstanding was 284 million for
the quarter. The company is using open market purchases for its
dividend reinvestment and employee stock ownership plans.
<PAGE>
<TABLE>
PacifiCorp
and its Consolidated Subsidiaries
Summary Financial Information
(In Thousands, Except Per Share Amounts)
(Unaudited)
<CAPTION>
3 Months Ended September 30 $ %
1995 1994 Change Change
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUES
Electric $ 668,100 $ 679,900 $ (11,800) (2)
Telecommunications 143,500 194,500 (51,000) (26)
Other (1) 38,100 40,600 (2,500) (6)
-----------------------------------------------
TOTAL 849,700 915,000 (65,300) (7)
-----------------------------------------------
EXPENSES
Electric
Fuel 122,900 132,100 (9,200) (7)
Purchased power 72,100 80,300 (8,200) (10)
Depreciation and amortization 80,400 75,600 4,800 6
Other 177,100 184,400 (7,300) (4)
-----------------------------------------------
TOTAL 452,500 472,400 (19,900) (4)
Telecommunications 104,300 139,500 (35,200) (25)
Other (1)(2) 8,500 31,200 (22,700) (73)
-----------------------------------------------
TOTAL 565,300 643,100 (77,800) (12)
-----------------------------------------------
INCOME FROM OPERATIONS
Electric 215,600 207,500 8,100 4
Telecommunications 39,200 55,000 (15,800) (29)
Other (1)(2) 29,600 9,400 20,200 *
-----------------------------------------------
TOTAL 284,400 271,900 12,500 5
Interest expense (2) 83,200 82,600 600 1
Minority interest and other (49,900) (14,500) (35,400) *
-----------------------------------------------
Income before income taxes 251,100 203,800 47,300 23
Income taxes 82,100 72,000 10,100 14
-----------------------------------------------
NET INCOME $ 169,000 $ 131,800 $ 37,200 28
Preferred dividend requirement 10,100 10,000 100 1
-----------------------------------------------
EARNINGS CONTRIBUTION
ON COMMON STOCK (3)
Electric $ 88,100 $ 87,400 $ 700 1
Telecommunications 52,900 25,700 27,200 106
Other (1) 17,900 8,700 9,200 106
-----------------------------------------------
TOTAL $ 158,900 $ 121,800 $ 37,100 30
===============================================
Average common shares outstanding 284,277 283,503 774 -
EARNINGS PER COMMON SHARE
Electric $ 0.31 $ 0.31 $ - -
Telecommunications 0.19 0.09 0.10 111
Other (1) 0.06 0.03 0.03 100
-----------------------------------------------
TOTAL $ 0.56 $ 0.43 $ 0.13 30
===============================================
Dividends paid per common share $ 0.27 $ 0.27 $ - -
===============================================
<FN>
* Not a meaningful number
(See accompanying notes on page 11)
</TABLE>
-7-
<PAGE>
<TABLE>
PacifiCorp
and its Consolidated Subsidiaries
Summary Financial Information
(Unaudited)
<CAPTION>
3 Months Ended September 30 %
1995 1994 Change Change
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ELECTRIC REVENUES (In thousands)
Residential $ 158,100 $ 158,100 $ - -
Commercial 150,300 147,300 3,000 2
Industrial 191,300 199,000 (7,700) (4)
Other 7,800 8,000 (200) (3)
-----------------------------------------------
Retail Sales 507,500 512,400 (4,900) (1)
Wholesale sales 144,700 150,600 (5,900) (4)
Other 15,900 16,900 (1,000) (6)
-----------------------------------------------
TOTAL $ 668,100 $ 679,900 $ (11,800) (2)
===============================================
ENERGY SALES (Millions of kWh)
Residential 2,594 2,604 (10) -
Commercial 2,870 2,828 42 1
Industrial 5,446 5,633 (187) (3)
Other 156 165 (9) (5)
-----------------------------------------------
Retail Sales 11,066 11,230 (164) (1)
Wholesale sales 4,348 4,363 (15) -
-----------------------------------------------
TOTAL 15,414 15,593 (179) (1)
===============================================
<FN>
(See accompanying notes on page 11)
</TABLE>
-8-
<PAGE>
<TABLE>
PacifiCorp
and its Consolidated Subsidiaries
Summary Financial Information
(In Thousands, Except Per Share Amounts)
(Unaudited)
<CAPTION>
9 Months Ended September 30 $ %
1995 1994 Change Change
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUES
Electric $ 1,909,500 $ 1,946,600 $ (37,100) (2)
Telecommunications 517,500 530,800 (13,300) (3)
Other (1) 84,800 139,000 (54,200) (39)
-----------------------------------------------
TOTAL 2,511,800 2,616,400 (104,600) (4)
-----------------------------------------------
EXPENSES
Electric
Fuel 326,400 365,400 (39,000) (11)
Purchased power 214,700 225,700 (11,000) (5)
Depreciation and amortization 239,500 224,600 14,900 7
Other 544,800 548,600 (3,800) (1)
-----------------------------------------------
TOTAL 1,325,400 1,364,300 (38,900) (3)
Telecommunications 392,700 406,400 (13,700) (3)
Other (1)(2) 27,300 104,100 (76,800) (74)
-----------------------------------------------
TOTAL 1,745,400 1,874,800 (129,400) (7)
-----------------------------------------------
INCOME FROM OPERATIONS
Electric 584,100 582,300 1,800 -
Telecommunications 124,800 124,400 400 -
Other (1)(2) 57,500 34,900 22,600 65
-----------------------------------------------
TOTAL 766,400 741,600 24,800 3
Interest expense (2) 282,200 250,300 31,900 13
Minority interest and other (68,200) (33,700) (34,500) (102)
-----------------------------------------------
Income before income taxes 552,400 525,000 27,400 5
Income taxes 175,100 183,400 (8,300) (5)
-----------------------------------------------
NET INCOME $ 377,300 $ 341,600 $ 35,700 10
Preferred dividend requirement 30,400 29,700 700 2
-----------------------------------------------
EARNINGS CONTRIBUTION
ON COMMON STOCK (3)
Electric $ 191,300 $ 233,200 $ (41,900) (18)
Telecommunications 85,000 54,600 30,400 56
Other (1) 70,600 24,100 46,500 *
-----------------------------------------------
TOTAL $ 346,900 $ 311,900 $ 35,000 11
===============================================
Average common shares outstanding 284,271 282,473 1,798 1
EARNINGS PER COMMON SHARE
Electric $ 0.67 $ 0.83 $ (0.16) (19)
Telecommunications 0.30 0.19 0.11 58
Other (1) 0.25 0.08 0.17 *
-----------------------------------------------
TOTAL $ 1.22 $ 1.10 $ 0.12 11
===============================================
Dividends paid per common share $ 0.81 $ 0.81 $ - -
===============================================
<FN>
* Not a meaningful number.
(See accompanying notes on page 11)
</TABLE>
-9-
<PAGE>
<TABLE>
PacifiCorp
and its Consolidated Subsidiaries
Summary Financial Information
(Unaudited)
<CAPTION>
9 Months Ended September 30 %
1995 1994 Change Change
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ELECTRIC REVENUES (In thousands)
Residential $ 516,100 $ 511,800 $ 4,300 1
Commercial 427,200 421,600 5,600 1
Industrial 528,500 553,700 (25,200) (5)
Other 22,500 23,100 (600) (3)
-----------------------------------------------
Retail Sales 1,494,300 1,510,200 (15,900) (1)
Wholesale sales 370,200 392,300 (22,100) (6)
Other 45,000 44,100 900 2
-----------------------------------------------
TOTAL $ 1,909,500 $ 1,946,600 $ (37,100) (2)
===============================================
ENERGY SALES (Millions of kWh)
Residential 8,662 8,580 82 1
Commercial 8,018 7,893 125 2
Industrial 15,002 15,575 (573) (4)
Other 447 470 (23) (5)
-----------------------------------------------
Retail Sales 32,129 32,518 (389) (1)
Wholesale sales 10,872 11,314 (442) (4)
-----------------------------------------------
TOTAL 43,001 43,832 (831) (2)
===============================================
September December $ %
1995 1994 Change Change
-----------------------------------------------
CONSOLIDATED CAPITALIZATION
Common equity $ 3,587,000 $ 3,460,000 $ 127,000 4
Preferred stock 586,000 586,000 - -
Long-term debt and capital
lease obligations 3,707,000 3,768,000 (61,000) (2)
Short-term debt 683,000 551,000 132,000 24
-----------------------------------------------
TOTAL $ 8,563,000 $ 8,365,000 $ 198,000 2
===============================================
<FN>
(See accompanying notes on page 11)
</TABLE>
-10-
<PAGE>
PacifiCorp
and its Consolidated Subsidiaries
Summary Financial Information
(Unaudited)
(1) Other includes the operations of PacifiCorp Financial Services, Inc. and
independent power production, as well as the activities of PacifiCorp
Holdings, Inc.
(2) Certain amounts from the prior year have been reclassified to conform
with the 1995 method of presentation. Finance interest of $6.5 million
and $23.5 million in the three- and nine-month periods ended September 30,
1994, respectively, was reclassified from operating expenses to interest
expense. Reclassifications had no effect on previously reported consoli-
dated net income.
(3) Earnings contribution on common stock by segment:
(a) Does not reflect elimination for interest on intercompany borrowing
arrangements.
(b) Includes income taxes on a separate company basis, with any benefit
or detriment of consolidation reflected in Other.
(c) Amounts are net of preferred dividend requirements and minority
interest.
-11-
###
