Cap Rock Energy Corporation Announces 2004 First Quarter Results
May 17 2004 - 7:50PM
PR Newswire (US)
Cap Rock Energy Corporation Announces 2004 First Quarter Results
MIDLAND, Texas, May 17 /PRNewswire-FirstCall/ -- Cap Rock Energy
Corporation today reported net income of $2.1 million, or $1.27 per
common share, diluted, in the first quarter of 2004, compared to
$3.1 million, or $2.25 per common share, diluted, for the same
quarter in 2003. Detailed below are unaudited financial highlights
for Cap Rock Energy Corporation and subsidiaries for the three
months ended March 31, 2004 and 2003: Cap Rock Energy Corporation
(unaudited) ($ in thousands except share and per share) Three
Months Ended March 31, 2004 2003 Operating revenues $20,288 $22,344
Operating income $3,993 $5,180 Net income $2,062 $3,061 Earnings
per share: Basic $1.32 $2.35 Diluted $1.27 $2.25 Weighted average
shares of Common stock outstanding: Basic 1,567,725 1,302,355
Diluted 1,624,040 1,357,653 The consumption and demand for
electricity within the Company's service areas is greatly impacted
by weather conditions and temperatures. Weather conditions and the
cost of fuel used to generate electricity are the major factors
affecting operating expenses. Purchased power expense normally
moves in relation to electric demand and consumption. Operating
revenue between the comparable three month periods decreased
primarily because of a one time change in the method of revenue
recognition in 2003, as well as recognition of deferred revenue in
the 2003 period. Purchased power costs also decreased primarily
because of the conclusion in 2003 of the rate making treatment of
the capital lease payments associated with the transmission system.
The expensing of noncash stock awards to officers and directors
caused general and administrative expense to increase for 2004. The
Company anticipates property tax expense for 2004 will materially
increase, and therefore has increased its projection for property
tax expense for 2004 as compared to 2003. Income tax expense
decreased for 2004 because of the decrease in net taxable income
between the two periods. The Company was able to sell its
investments in real estate partnerships in February 2004 at book
value with no resulting gain or loss. In March 2004, the Company
sold its investment in United Fuel for $1.3 million in exchange for
a note receivable. The gain of $940,000 has been deferred and will
be recognized as cash receipts are received on the note. Cap Rock
Energy provides electric distribution services to over 35,000
meters in 28 counties in Texas. Its corporate office is located in
Midland, Texas, with service divisions in Stanton, Colorado City,
Brady and Celeste, Texas. The Company also provides management
services to the Farmersville Municipal Electric System. The
Company's predecessor, Cap Rock Electric Cooperative, Inc., was
incorporated as an electric cooperative in the State of Texas in
1939. Cap Rock Energy Corporation is the first electric cooperative
to convert to a publicly held corporation and the first electric
utility to become a public company in over 60 years. All
statements, other than statements of historical fact included in
this news release are forward looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
Any such forward looking statements involve risks and uncertainties
and actual results, performance or achievements of Cap Rock Energy
may be different from those expressed or implied in the forward
looking statements. DATASOURCE: Cap Rock Energy Corporation
CONTACT: Valerie Newsom of Cap Rock Energy Corporation,
+1-432-684-0301, or
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