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): April 27, 1995
IES INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
Iowa 1-9187 42-1271452
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File No.) Identification No.)
IES Tower, Cedar Rapids, Iowa 52401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 319-398-4411
Item 5. Other Events.
The Iowa Utilities Board (Board) held a public agenda
meeting on April 25, 1995, to discuss the issues in IES
Utilities' (Utilities) pending electric pricing case.
Utilities is a wholly-owned utility subsidiary of the
registrant. Based on the Company's interpretation of the
Board's discussion, the Board will require annual reductions
in electric revenues of $15 million to $20 million. As a
result of the Board's meeting, Utilities has recorded a pretax
reserve for refunds of approximately $8 million, or 16 cents
per share, as of March 31, 1995.
Reference is made to Note 3(a) of the Notes to
Consolidated Financial Statements included in the registrant's
Form 10-K for the year 1994.
The Press Release announcing the registrant's first
quarter earnings is attached hereto and incorporated by
reference herein.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(c) Exhibits
99 IES Industries Inc. Press Release dated April 27, 1995.
SIGNATURES
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.
IES INDUSTRIES INC.
(Registrant)
By /s/ Blake O. Fisher, Jr.
(Signature)
Blake O. Fisher, Jr.
Executive Vice President
& Chief Financial Officer
Date April 27, 1995
For Release: April 27, 1995
Contact: Robert Latham
(319) 398-7676
Denny Vass
(319) 398-4475
IES INDUSTRIES ANNOUNCES FIRST QUARTER EARNINGS
CEDAR RAPIDS, IOWA -- Net income for IES Industries Inc.
for the first quarter of 1995 was $6.7 million, or $0.23 per
share, compared with net income of $15.1 million, or $0.53 per
share, for the same period in 1994. Revenues for the first
quarter of 1995 were $206 million, compared to $212 million
for the first quarter of 1994.
For the most recent 12 months, revenues were $781
million, compared to $800 million for the 12 months ending
March 31, 1994. Earnings were $58.4 million, $2.04 per share,
for the most recent 12-month period, compared with earnings of
$69.1 million, $2.45 per share, for the comparable period a
year ago.
First quarter results were significantly affected by the
estimated impact of how the Iowa Utilities Board (Board) may
decide the pending electric pricing case of IES Utilities Inc.
(Utilities), the utility subsidiary of IES Industries. In
Tuesday's public agenda meeting on the issues in that case,
the Board's discussion apparently would require annual
reductions in electric revenues of $15 million to $20 million.
Going forward, such a decision, if ordered by the Board,
would reduce annual earnings by 30 to 40 cents per share.
The Board's decision in this case is not expected until
mid-May and the Board indicated the agenda discussion was
clearly non-binding and may change. As a result of the Board's
meeting, Utilities has recorded a pretax reserve for refunds of
approximately $8 million or 16 cents per share, as of March 31,
1995. Of this amount, approximately $3.5 million would apply to
the fourth quarter of 1994.
The Board's agenda meeting was particularly disappointing on
long-term strategic issues regarding depreciation and
decommissioning of the nuclear power plant and on movement toward
consistent pricing across Utilities' service districts. While
minor movement toward pricing consistency would result, the
proposals to increase recovery levels of depreciation expense and
nuclear decommissioning expense were rejected. The Board's agenda
discussion was unexpected on issues such as recovery for the full
purchase prices of the Union Electric Iowa service territory and
smaller, low-cost, used generating plants, even though customers
are currently benefiting from the acquisitions.
Utilities reported decreased electric sales volumes for the
quarter. Kilowatt-hour sales, excluding off-system sales, were
down 1.1 percent for the quarter ending March 31, 1995, as
compared to the same period a year earlier. For the most recent
12 months, electric sales increased 2.7 percent from volumes of
the same period a year earlier.
For the first three months of 1995, weather conditions were
milder than normal, which reduced sales volumes from what they
would have been under normal weather conditions. Warmer-than-
normal weather negatively impacted electric sales by 1.2 percent
and natural gas volumes by 3.9 percent for the quarter.
Industrial sales to major full-requirements customers in the
Utilities service territory generally continued the trend of the
past four years by showing significant growth. For the first
quarter of 1995, electric sales volumes to these major industrial
customers were 4 percent higher than sales volumes for the same
period in 1994.
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IES INDUSTRIES INC.
FOR RELEASE: April 27,1995 TELEPHONE: 319-398-7676
The following are selected summaries of the consolidated results of operations
for IES Industries Inc. for the periods ended March 31, 1995 and 1994:
Quarter Ended Twelve Months Ended
March 31 March 31
1995 1994 1995 1994
(in thousands, except per share amounts)
Operating revenues $206,392 $211,621 $780,596 $799,850
Net income $ 6,740 $ 15,144 $ 58,415 $ 69,147
Average number of common
shares outstanding 28,889 28,349 28,695 28,226
Earnings per average
common share $ 0.23 $ 0.53 $ 2.04 $ 2.45
Note: In the first quarter of 1995, the Company recorded a pretax reserve for
rate refund of $8.0 million relating to its current electric pricing
case. Approximately $3.5 million of this reserve relates to
revenues collected in the fourth quarter of 1994.
