<PAGE>
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 23, 1996
DESTEC ENERGY, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-10592 38-2875546
(State of Incorporation) (Commission File No.) (I.R.S. Employer
Identification No.)
2500 CITYWEST BLVD., SUITE 150
HOUSTON, TEXAS 77042
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code:
(713) 735-4000
NOT APPLICABLE
(Former Name or Former Address, if changed since last report)
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ITEM 2. OTHER EVENTS.
On October 23, 1996, Destec Energy, Inc. (the "Company") reported net
income of $18,263,000 for the quarter ended September 30, 1996, compared with
net income of $14,684,000 for the same period in 1995.
The Company also announced that revenues for the third quarter 1996
were $147,338,000, compared with $100,545,000 for the third quarter 1995. Third
quarter earnings per share for 1996 and 1995, respectively, were 33 cents, based
on 56,017,000 weighted average shares outstanding, and 25 cents, based on
58,750,000 weighted average shares outstanding. The Company stated that the
primary difference in shares outstanding is the result of Destec's stock
repurchase program.
The above discussion does not purport to be complete and is in all
respects qualified in its entirety by reference to the Company's News Release
dated October 23, 1996, a copy of which is filed as an exhibit to this report.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
The following item is filed as an exhibit to this current report on
Form 8-K:
99 News Release of the Company dated October 23, 1996.
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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 hereunto duly authorized.
DESTEC ENERGY, INC.
/s/ MARIAN M. DAVENPORT
By: ________________________________
Marian M. Davenport
Vice President, General Counsel
and Secretary
Date: October 28, 1996
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[DESTEC ENERGY LOGO APPEARS HERE] NEWS RELEASE
- -------------------------------------------------------------------------------
INVESTOR CONTACT: Richard H. Woodfin
713/735-4022
MEDIA CONTACT: Marvin L. Brown, Jr.
713/735-4215
October 23, 1996
DESTEC REPORTS NET INCOME FOR THIRD QUARTER 1996
Destec Energy, Inc. (NYSE:ENG), a leading independent power producer
based in Houston, Texas, today reported net income of $18,263,000 for the
quarter ended September 30, 1996, compared with net income of $14,684,000 for
the same period in 1995.
Revenues for the third quarter 1996 were $147,338,000, compared with
$100,545,000 for the third quarter 1995. Third quarter earnings per share for
1996 and 1995, respectively, were 33 cents, based on 56,017,000 weighted average
shares outstanding, and 25 cents, based on 58,750,000 weighted average shares
outstanding. The primary difference in shares outstanding is a result of
Destec's stock repurchase program.
Commenting on the third quarter 1996, Charles F. Goff, Chairman and
Chief Executive Officer, said, "Destec's quarterly results reflect a 37 percent
increase in equity earnings from its power plant partnerships. In addition, the
quarter was favorably affected by the operation of our Los Mina Power facility
in the Dominican Republic as well as engineering revenues from our power plants
in construction in Canada and The Netherlands. Also reflected in the third
quarter net income is approximately 14 cents per share, after tax, resulting
from our divestiture of the Blue Mountain project.
"The third quarter was an especially active period for Destec," Goff
continued. "We acquired a 20 percent interest in and closed the financing of
the 1,600 megawatt Hazelwood Power Station and associated coal mine in Australia
and closed the financing of our Indian Queens project in England. At the end of
the quarter, we announced that our Board of Directors retained Morgan Stanley
to explore strategic alternatives to maximize shareholder value, including the
possible sale of Destec," he said.
-more-
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DESTEC REPORTS THIRD QUARTER NET INCOME-2
Destec is a major independent power company that owns power generation
and gasification facilities which produce, sell and market electricity, steam
and synthetic fuel gas. Destec has interests in 23 operating projects with a
total rated equivalent capacity of approximately 5,026 megawatts of electricity
- - 1,976 of that total outside the U.S. - and over three million pounds per hour
of steam. Destec currently has three international projects, representing
approximately 960 megawatts of capacity, in construction or advanced
development.
A summary of unaudited results is attached.
###
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DESTEC ENERGY, INC. AND SUBSIDIARIES
SUMMARY OF STATEMENTS OF CONSOLIDATED INCOME
(IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
--------------------------- --------------------------
1996 1995 1996 1995
------------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
Revenues:
Power, steam and syngas $ 66,791 $ 37,035 $ 155,873 $ 132,178
Engineering and operations 65,275 60,798 241,652 321,039
Energy resources 4,214 2,707 12,761 11,785
Development 11,058 5 22,795 8,062
---------- ---------- ---------- ----------
Total Revenues 147,338 100,545 433,081 473,064
---------- ---------- ---------- ----------
Operating Costs and Expenses:
Power, steam and syngas 60,244 36,274 149,548 123,047
Engineering and operations 61,573 57,706 220,749 308,986
Energy resources 3,111 1,907 8,351 9,837
Development 2,538 3,086 9,975 12,529
---------- ---------- ---------- ----------
Total Operating Costs 127,466 98,973 388,623 454,399
---------- ---------- ---------- ----------
Amortization of intangibles 618 618 1,854 1,854
Selling, general & administrative expenses 7,785 7,004 23,469 21,072
---------- ---------- ---------- ----------
Total Operating Costs and Expenses 135,869 106,595 413,946 477,325
---------- ---------- ---------- ----------
Earnings from equity investments 6,913 5,061 13,519 9,283
Gain on sale of oil and gas properties _ 11,890 _ 11,890
Interest Income 3,614 7,484 14,179 22,221
Minority Interest & Other Income 126 17 389 689
---------- ---------- ---------- ----------
Income before provision for taxes on income 22,122 18,402 47,222 39,822
Provision for Taxes 3,859 3,718 11,887 10,145
---------- ---------- ---------- ----------
Net Income $ 18,263 $ 14,684 $ 35,335 $ 29,677
========== ========== ========== ==========
Weighted Average Shares Outstanding 56,016,715 58,749,878 57,016,250 58,761,815
========== ========== ========== ==========
Per share amounts:
Net Income Per Share $ 0.33 $ 0.25 $ 0.62 $ 0.51
========== ========== ========== ==========
</TABLE>
