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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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):
July 25, 1997
DQE, Inc.
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(Exact name of registrant as specified in its charter)
Pennsylvania 1-10290 25-1598483
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
Cherrington Corporate Center, Suite 100
500 Cherrington Parkway, Coraopolis, Pennsylvania 15108-3184
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (412) 262-4700
N/A
(Former name or former address, if changed since last report.)
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Items 1-4. Not applicable.
Item 5. Other Events.
On July 25, 1997, DQE, Inc., issued its earnings release for the quarter
ended June 30, 1997. A copy of such release is included herewith as Exhibit
99.1, and incorporated herein by reference.
Item 6. Not applicable.
Item 7. Financial Statements and Exhibits.
99.1 DQE, Inc., earnings release dated July 25, 1997, for the quarter
ended June 30, 1997.
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2
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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 thereunto duly authorized.
DQE, Inc.
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(Registrant)
Date July 25, 1997 /s/ Gary L. Schwass
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(Signature)
Gary L. Schwass
Executive Vice President
and Chief Financial Officer
3
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Financial Data
Second Quarter & Year Ended June 30
(All figures in thousands except per share amounts)
(Unaudited)
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<CAPTION>
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Three Months Ended Twelve Months Ended
June 30 June 30
1997(a) 1996 1997(a) 1996
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<S> <C> <C> <C> <C>
Total operating revenues $284,000 $293,357 $1,219,904 $1,232,387
Net income $ 46,778 $ 38,972 $ 189,736 $ 175,254
Average number of common
shares outstanding 77,394 77,392 77,275 77,514
Earnings per share of
common stock $ 0.61 $ 0.50 $ 2.46 $ 2.27
Dividend declared per share
of common stock $ 0.34 $ 0.32 $ 1.34 $ 1.26
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(a) Reflects 9c per share gain from sale of Chester Engineers.
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Duquesne Light Company, an electric utility, is the largest of the DQE
subsidiaries, and had the following sales in millions of kilowatt-hours for the
periods indicated.
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<CAPTION>
Direct Sales:
<S> <C> <C> <C> <C>
Residential 697 743 3,253 3,477
Commercial 1,338 1,393 5,663 5,810
Industrial 875 793 3,382 3,245
Other 20 20 83 83
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Total sales to customers 2,930 2,949 12,381 12,615
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July 25, 1997
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[LOGO of DQE]
STATEMENT OF INCOME
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<CAPTION>
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(Thousands of Dollars) Three Months Six Months Twelve Months
Ended June 30 % Ended June 30 % Ended June 30 %
(Unaudited) 1997 1996 Chg 1997 1996 Chg 1997 1996 Chg
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues:
Sales of Electricity:
Customers-Net $250,522 $258,896 -3% $514,540 $524,066 -2% $1,065,653 $1,092,825 -2%
Utilities 6,289 15,077 -58% 15,020 31,042 -52% 42,270 62,488 -32%
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Total Sales of Electricity 256,811 273,973 -6% 529,560 555,108 -5% 1,107,923 1,155,313 -4%
Other 27,189 19,384 40% 58,024 38,767 50% 111,981 77,074 45%
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Total Operating Revenues 284,000 293,357 -3% 587,584 593,875 -1% 1,219,904 1,232,387 -1%
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Operating Expenses:
Fuel and purchased power 50,516 58,695 -14% 102,170 117,860 -13% 221,234 241,904 -9%
Other operating and maintenance 99,432 90,608 10% 198,813 181,543 10% 394,633 372,250 6%
Depreciation and amortization 58,546 55,827 5% 113,720 112,808 1% 223,840 216,164 4%
Taxes other than income taxes 19,875 20,842 -5% 40,433 42,963 -6% 83,444 88,380 -6%
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Total Operating Expenses 228,369 225,972 1% 455,136 455,174 -0% 923,151 918,698 0%
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Operating Income 55,631 67,385 -17% 132,448 138,701 -5% 296,753 313,689 -5%
Other income 42,451 16,817 152% 60,952 31,640 93% 103,102 57,619 79%
Interest and other charges (29,029) (26,673) 9% (57,709) (52,376) 10% (115,603) (104,727) 10%
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Income Before Income Taxes 69,053 57,529 20% 135,691 117,965 15% 284,252 266,581 7%
Income Taxes 22,275 18,557 20% 43,816 36,688 19% 94,516 91,327 3%
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Net Income $46,778 $38,972 20% $91,875 $81,277 13% $189,736 $175,254 8%
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Average No. of Common Shares (000) 77,394 77,392 77,341 77,490 77,275 77,514
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Earnings Per Share of Common Stock $0.61 $0.50 22% $1.19 $1.05 13% $2.46 $2.27 8%
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Dividends Declared Per Share $0.34 $0.32 6% $0.68 $0.64 6% $1.34 $1.26 6%
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Actual No. of Common Shares (000) 77,409 77,188 77,409 77,188 77,409 77,188
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[LOGO OF DQE]
OPERATING STATISTICS
<TABLE>
<CAPTION>
____________________________________________________________________________________________________
(Thousands) Three Months Ended
June 30 Percent
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(Unaudited) 1997 1996 Change
____________________________________________________________________________________________________
<S> <C> <C> <C>
KILOWATT-HOUR SALES:
Electric Utility Customers:
Residential 697,408 743,416 -6.2%
Commercial 1,337,912 1,392,451 -3.9%
Industrial 874,993 792,514 10.4%
Miscellaneous 20,339 20,487 -0.7%
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Sales to Electric Utility Customers 2,930,652 2,948,868 -0.6%
Sales to Other Utilities 381,820 818,277 -53.3%
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TOTAL SALES 3,312,472 3,767,145 -12.1%
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OPERATING REVENUES:
Electric Utility Customers:
Residential $87,884 $92,954 -5.5%
Commercial 112,671 117,602 -4.2%
Industrial 48,373 46,722 3.5%
Miscellaneous 4,344 4,368 -0.5%
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Gross Revenues from Electric Utility Customers 253,272 261,646 -3.2%
Provision For Doubtful Accounts Receivable (2,750) (2,750) 0.0%
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Revenues from Electric Utility Customers 250,522 258,896 -3.2%
Sales to Other Utilities 6,289 15,077 -58.3%
Other 27,189 19,384 40.3%
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TOTAL OPERATING REVENUES $284,000 $293,357 -3.2%
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</TABLE>
<TABLE>
<CAPTION>
____________________________________________________________________________________________________
(Thousands) Twelve Months Ended
June 30 Percent
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(Unaudited) 1997 1996 Change
____________________________________________________________________________________________________
<S> <C> <C> <C>
KILOWATT-HOUR SALES:
Electric Utility Customers:
Residential 3,253,188 3,476,535 -6.4%
Commercial 5,662,904 5,810,097 -2.5%
Industrial 3,381,783 3,244,523 4.2%
Miscellaneous 83,038 83,481 -0.5%
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Sales to Electric Utility Customers 12,380,913 12,614,636 -1.9%
Sales to Other Utilities 2,482,921 3,407,059 -27.1%
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TOTAL SALES 14,863,834 16,021,695 -7.2%
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OPERATING REVENUES:
Electric Utility Customers:
Residential $399,198 $422,666 -5.6%
Commercial 466,736 477,018 -2.2%
Industrial 192,788 189,262 1.9%
Miscellaneous 17,511 17,521 -0.1%
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Gross Revenues from Electric Utility Customers 1,076,233 1,106,467 -2.7%
Provision For Doubtful Accounts Receivable (10,580) (13,642) -22.4%
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Revenues from Electric Utility Customers 1,065,653 1,092,825 -2.5%
Sales to Other Utilities 42,270 62,488 -32.4%
Other 111,980 77,074 45.3%
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TOTAL OPERATING REVENUES $1,219,903 $1,232,387 -1.0%
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</TABLE>
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[LOGO OF DQE]
BALANCE SHEET
<TABLE>
<CAPTION>
________________________________________________________________________________________________
(Thousands of Dollars)
June 30 December 31 Percent
(Unaudited) 1997 1996 Change
________________________________________________________________________________________________
<S> <C> <C> <C>
ASSETS:
Current Assets $554,850 $622,228 -10.8%
Long-Term Investments 698,822 518,689 34.7%
Property, Plant and Equipment 4,747,557 4,787,470 -0.8%
Accumulated Depreciation
and Amortization (2,004,294) (1,969,945) 1.7%
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Property, Plant and
Equipment-Net 2,743,263 2,817,525 -2.6%
Regulatory Tax Receivable 370,420 394,131 -6.0%
Unamortized Debt Costs 90,586 93,299 -2.9%
Deferred Rate Synchronization Costs 39,339 41,446 -5.1%
Other Regulatory Assets 104,989 107,940 -2.7%
Other Non-Current Assets 51,868 43,734 18.6%
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Total Assets $4,654,137 $4,638,992 0.3%
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LIABILITIES AND CAPITALIZATION:
Current Liabilities $303,581 $260,562 16.5%
Deferred Income Taxes-Net 761,130 759,089 0.3%
Deferred Investment Tax Credits 101,991 106,201 -4.0%
Obligations Under Capital Leases 22,768 28,407 -19.9%
Deferred Income 174,913 189,293 -7.6%
Other Liabilities 278,476 240,763 15.7%
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Total Liabilities 1,642,859 1,584,315 3.7%
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Capitalization:
________________________________________________________________________________
Long-term debt 1,356,364 1,439,746 -5.8%
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Preferred and Preference Stock 224,238 223,072 0.5%
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Common Shareholders' Equity:
Common stock (no par) 989,747 990,502 -0.1%
Retained earnings 814,674 777,607 4.8%
Less treasury stock (at cost) (373,745) (376,250) -0.7%
________________________________________________________________________________
Total Common Shareholders' Equity 1,430,676 1,391,859 2.8%
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Total Capitalization 3,011,278 3,054,677 -1.4%
________________________________________________________________________________
________________________________________________________________________________
Total Liabilities and Capitalization $4,654,137 $4,638,992 0.3%
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