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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 21, 1999
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SIGCORP, INC.
(Exact name of registrant as specified in its charter)
Indiana 01-11603 35-1940620
(State of incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
20 NW Fourth Street
Evansville, Indiana 47741
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (812) 465-5300
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Item 5. Other Events.
On October 21, 1999, SIGCORP, Inc. announced its revenues and earnings for
the quarter ended September 30, 1999. Pursuant to General Instruction F to Form
8-K, the press release dated October (Exhibit 99.1) is incorporated herein by
reference and is attached hereto.
Item 7. Exhibits.
(c) Exhibits.
The following exhibits are filed as a part of this report:
Exhibit
Number Description
99.1 Press release dated October 21, 1999 announcing its
revenues and earnings for the quarter ended September
30, 1999.
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.
SIGCORP, INC.
Dated: November 2, 1999
By: /s/ S. M. Kerney
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S. M. Kerney, Controller
(Principal Accounting
Officer)
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EXHIBIT-99.1
October 21, 1999
Timothy Burke, Secretary/Treasurer
(812) 465-4136
SIGCORP SETS QUARTERLY EARNINGS
RECORD WITH THIRD QUARTER RESULTS
Evansville, Indiana -- SIGCORP, Inc. (NYSE:SIG), a gas and electric utility,
energy services and telecommunications company, today announced its revenues and
earnings for the quarter ended September 30, 1999.
SIGCORP, the parent of Southern Indiana Gas and Electric Company (SIGECO),
earned $20.2 million (86 cents per basic common share), a 13% increase over
third quarter 1998 net income of $17.9 million (76 cents per share). SIGCORP's
previous record quarterly earnings, net income of $19.9 million (84 cents per
share), were achieved during the third quarter of 1997. Current quarter revenues
were $157.9 million, compared with $134.0 million for the year-earlier period.
"Our third quarter of the year traditionally is our strongest, but these results
greatly exceeded our expectations for both utility and non-utility operations,
eclipsing our record 1997 quarter. SIGCORP's non-utility operations continue to
increase their contributions to our overall results as the newer ventures
develop and Southern Indiana Properties' (SIPI) investments continue to earn
superior returns. Non-utility earnings are on target for 1999, while our utility
earnings are ahead of projections. We expect to exceed our consensus earnings
estimates for 1999," said Chairman and CEO Ronald G. Reherman.
Utility earnings during the third quarter of 1999 were $0.05 per share higher
than the same period a year ago. Favorable impacts of sustained growth in
SIGECO's service area, greater unit sales margins in the wholesale power market,
improved unit gas sales margins and increased capitalized interest charges were
lessened by anticipated higher operations expenditures and increased
depreciation and property tax expenses. Led by very strong results from SIPI, as
well as from the Energy Systems Group (ESGI) and SIGCORP Communications
(Communications) subsidiaries, earnings from SIGCORP's non-utility operations
rose 83%, adding $0.05 per share to 1998 third quarter non-utility results.
"SIPI has always been an excellent performer for us, and this year is no
exception. ESGI and Communications had a great quarter as both companies made
good progress on several very large projects. These operations continue to
develop nicely, and we are excited about their futures", noted Reherman.
The Midwest experienced a heat wave during July that resulted in several record
setting days and culminated in a new peak load record on July 29th of 1199.5 MW,
5% greater than SIGECO's previous peak load of 1140.4 MW set on June 25, 1998.
Despite the intense heat, which began July 19th in SIGECO's service area,
considerably milder weather in September held temperatures for the quarter 12%
below temperatures of the year-ago period (in terms of cooling degree days).
Reflecting the continued strength of the local economy, commercial and
industrial electric sales rose 2% and 6%, respectively, and residential sales
were equal to those of a year ago, leading to a 3% increase in total retail and
firm wholesale electric sales during the third quarter compared to the 1998
period. Gas sales were up only slightly during the period, but total sales and
transported volumes increased 7% reflecting the area's growth in commercial and
industrial activity. Sales to other utilities and power marketers declined 15%
during the recent quarter, but extremely tight energy supplies in the July
wholesale power market and the concurrent availability of SIGECO's generating
facilities enabled the utility to double its average unit sales margin on July
wholesale power sales compared to the prior year period.
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Greater utility revenues plus the continued growth of SIGCORP's natural gas
marketing subsidiary, SIGCORP Energy Services, contributed to SIGCORP's $23.9
million, or 18%, third quarter revenue increase. During the same period, total
operating expenses were up $23.1 million, or 23%, primarily due to higher cost
of sales-related expenses at Energy Services.
<TABLE>
<CAPTION>
FACTORS AFFECTING EARNINGS QTR 9 MOS 12 MOS
<S> <C> <C> <C>
PERIOD ENDED SEPTEMBER 30, 1998 $ .76 $ 1.83 $ 2.12
Weather (.01) (.01) (.04)
Sales growth other than weather .03 .11 .14
Electric sales to other utilities and power .03 .02 .03
marketers
Utility O&M expense (.03) (.07) (.07)
Utility depreciation expense (.01) (.04) (.05)
Non-utility operations .05 (.13) (.11)
Other .04 .03 .02
PERIOD ENDED SEPTEMBER 30, 1999 $ .86 $ 1.74 $ 2.04
</TABLE>
Net income for the twelve months ended September 30, 1999 was $48.2 million, or
$2.04 per basic share of common stock, on revenues of $588.7 million, versus net
income of $50.1 million, or $2.12 per basic share of common stock, on revenues
of $539.7 million for the twelve months ended September 30, 1998.
For the current twelve-month period, total operating revenues were up $49.0
million, or 9%, while operating expenses rose $48.8 million, or 11%. The $0.08
per share decrease in earnings for the current twelve-month period was the
result of higher utility operations, maintenance and depreciation expenses,
comparatively lower non-utility earnings due to the $2.9 million (12 cents per
share) after-tax gain realized by SIPI from the January 1998 liquidation of an
equity position in a leveraged lease and fewer sales of natural gas by SIGECO,
which more than offset the favorable impacts of increased electric sales to
retail and municipal customers and Alcoa Generating Corporation and higher per
unit margins on sales to other utilities and power marketers.
SIGCORP, Inc., a holding company, through its public utility subsidiary, SIGECO
(one of the lowest cost energy producers in the country), is engaged in the
generation, transmission, distribution and sale of electricity and the purchase
of natural gas and its transportation, distribution and sale in a service area
that covers ten counties in southwestern Indiana. SIGCORP's Energy Services, a
non-regulated energy marketer, is also engaged in the purchase of natural gas
and its transportation and sale to large volume natural gas consumers in the
region. SIGCORP also operates several other non-utility subsidiaries.
This press release may contain forward-looking statements concerning our
anticipation of future events that involve inherent risks and uncertainties. A
number of important factors which are difficult to predict and many of which are
beyond the control of the company could cause actual results to differ
materially from those in the forward-looking statements. Forward-looking
statements may be significantly impacted by certain risks and uncertainties,
including, but not limited to, economic or weather conditions affecting future
sales, changes in markets for energy services, changing energy market prices,
legislative and regulatory changes, including revised environmental
requirements, impacts of Year 2000 issues, industry restructuring, availability
and cost of capital and other similar factors.
# # # # # # # #
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SIGCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDED SEPTEMBER 30, 1999 AND 1998 (in
thousands except per share data)
<TABLE>
<CAPTION>
Nine Months Twelve Months
Quarter Ended Ended 9/30 Ended 9/30
9/30
1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C>
Operating Revenues
Electric $94,171 $87,928 $ 238,960 $ 230,681 $ 306,143 $ 291,960
Gas 7,759 5,431 47,973 45,643 69,130 74,982
Energy services and other 56,033 40,676 153,111 132,087 213,469 172,733
Total 157,963 134,035 440,044 408,411 588,742 539,675
Operating Income $32,341 $31,557 $ 72,291 $ 72,061 $ 86,306 $ 86,077
Net Income applicable to $20,248 $17,876 $ 41,038 $ 43,308 $ 48,205 $ 50,125
common stock
Basic Earnings per common $ 0.86 $ 0.76 $ 1.74 $ 1.83 $ 2.04 $ 2.12
share
Diluted Earnings per common $ 0.85 $ 0.75 $ 1.73 $ 1.82 $ 2.03 $ 2.11
share
Average common shares 23,631 23,631 23,631 23,631 23,631 23,631
outstanding
Electric Sales (MWh)
Residential 473,104 472,785 1,109,931 1,091,501 1,344,454 1,326,221
Commercial 379,244 372,939 992,492 969,237 1,266,584 1,226,824
Industrial 619,127 584,580 1,794,779 1,702,746 2,348,149 2,210,180
Other 4,268 4,524 13,695 14,275 19,575 20,401
Total retail 1,475,743 1,434,828 3,910,897 3,777,759 4,978,762 4,783,626
Municipals and Jasper 192,488 186,883 500,416 481,706 642,369 620,345
Alcoa Generating Corporation 40,762 56,563 303,056 159,738 506,479 178,915
Other Wholesale 211,205 248,333 626,409 838,489 814,657 983,125
Total 1,920,198 1,926,607 5,340,778 5,257,692 6,942,267 6,566,011
Gas Sold and Transported
(MDth)
Residential 509 456 5,821 5,254 8,331 8,764
Commercial 315 301 2,441 2,164 3,567 3,765
Industrial 46 71 357 395 476 580
Other 3 5 37 28 57 36
Transported 4,931 4,568 14,662 13,018 18,993 17,041
Total 5,804 5,401 23,318 20,859 31,424 30,186
</TABLE>
