AGL Resources Inc. Reports Favorable First Quarter Results
ATLANTA, Jan. 26 -- AGL Resources Inc. (NYSE: ATG) today reported financial results for fiscal 2000's first quarter, which ended December 31, 1999. Consolidated net income was $17.1 million, or 30 cents per share, exceeding analysts' consensus expectations. Comparable net income and earnings per share for the same period last year were $15.9 million and 28 cents, respectively.
The increased earnings for the quarter are attributable to a number of factors, including the ability of the utility to reduce costs and improve performance and the success of the company's retail marketing joint venture. "In fiscal year 1999, we made substantial progress in transforming our company. The results of our efforts are validated by our first quarter earnings," said Walter M. Higgins, Chairman and CEO. "We are now well positioned to execute our strategic initiatives of operational excellence and business growth."
Beginning October 1, 1999, the utility exited the natural gas sales service function in Georgia, resulting in a decline in utility operating revenues. The utility continues to provide delivery service to its Georgia customers. As the utility's operating revenues associated with the sale of gas decline, there is a comparable decline in the utility's gas costs. The decrease in utility revenues relating to the decline in gas sales therefore does not affect earnings. Operating revenues for the quarter were $182.3 million compared with $323.9 million for the same period last year, a decline of $141.6 million.
AGL Resources Inc. is a regional energy holding company with operations in the Southeast. Atlanta Gas Light Company, the largest natural gas distributor in the Southeast and the company's primary subsidiary, provides delivery service to nearly 1.5 million customers in Georgia and Chattanooga, Tennessee. Although natural gas distribution is AGL Resources' core business, it also is engaged in other energy-related businesses, including retail energy marketing, customer care services for energy marketers, and wholesale and retail propane sales.
The company's home page address on the Internet is www.aglresources.com .
This press release contains forward-looking statements. AGL Resources wishes to caution readers that the assumptions, which form the basis for the forward-looking statements, include many factors that are beyond AGL Resources' ability to control or estimate precisely. Those factors include, but are not limited to, the following: changes in the price and demand for natural gas; the impact of changes in state and federal legislation and regulation on the company and the natural gas industry; the effects of competition, particularly in markets where prices and providers historically have been regulated; and financial market conditions.
AGL RESOURCES INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED FINANCIAL INFORMATION
December 31, 1999
(Unaudited)
Millions of Dollars, Except Per Share Data
3 Months Ended
December 31,
1999 1998
Operating Revenues $182.3 $323.9
Cost of Gas 54.6 187.0
Operating Margin 127.7 136.9
Operating Income $33.5 $47.7
Other Income - net $6.9 $(7.9)
Consolidated Net Income $17.1 $15.9
Earnings Per Common Share
Basic and Diluted $0.30 $0.28
Average Number of Shares
Outstanding (millions)
Basic 56.9 57.4
Diluted 57.0 57.7
SOURCE AGL Resources Inc.
CONTACT: investors, Melanie M. Platt, Vice President, Investor Relations and Corporate Secretary, 404-584-3420, or Joe Heffron, Investor Relations Specialist, 404-584-3427, or media, Nick Gold, Manager, Media Relations, 404-584-3457, all of AGL Resources Inc./
