Server: Netscape-Enterprise/2.01 Date: Thu, 18 Dec 1997 22:05:23 GMT Accept-ranges: bytes Last-modified: Mon, 20 Oct 1997 20:14:45 GMT Content-length: 33818 Content-type: text/html United Water: First Quarter Report 1997

United Water

 

investor info

United Water 1st Quarter Report


Dear Fellow Shareholders:

United Water is about to become a much stronger competitor in the public-private partnership market place. On April 21, United Water and Lyonnaise American Holding signed a letter of intent to acquire Montgomery Watson's 50% share of JMM Operational Services (JMM-OSI). The United Water Resources-Lyonnaise des Eaux Partnership currently owns 50% of JMM-OSI.

This restructuring will better position us to expand our core water and wastewater businesses throughout North America. We can provide municipalities with 'one-stop' shopping designed to help them cope with growing water and wastewater challenges. Our team will offer clients customized and flexible solutions?ranging from contract services to public-private partnerships.

We have already renamed the partnership United Water Services and JMM-OSI will become a wholly-owned subsidiary of that entity. The agreement is expected to be finalized by June 30, 1997.

For the three months ended March 31, 1997, United Water earned 12 cents per common share compared with 15 cents per common share for the same period in 1996. Operating revenues for the first quarter were $80 million compared to $69.8 million for the same period in 1996. The 1997 results included a land sale that contributed five cents per share. In 1996, United Water recorded a one-time contribution of 13 cents per share from a condemnation settlement in New Mexico.

Our core utility investments, which now include our Northumbrian Partnership, showed strong performance for the quarter. These investments contributed 14 cents per share in 1997 compared with 10 cents per share for the first quarter of 1996. Results for 1997 and 1996 included six cents and seven cents, respectively, for corporate charges relating to interest and preferred and preference dividends.

I am pleased to inform you that United Water will pay a regular quarterly dividend of 23 cents per share on June 1, 1997 to shareholders of record on May 15, 1997. Thank you for your continuing support of our company.

Donald L. Correll
Chairman and CEO
May 9, 1997


Statement of Consolidated Income

Three Months
Ended March 31,

Twelve Months
Ended March 31,

In thousands of dollars except per share data (unaudited)

1997

1996

1997

1996

Operating revenues

$80,006

$69,759

$342,292

$319,972

Operating expenses

Operations and maintenance

44,062

35,957

163,957

159,705

Depreciation and amortization

8,628

7,542

31,925

29,390

General taxes

12,672

12,168

50,155

48,884

Total operating expenses

65,362

55,667

246,037

237,979

Operating income

14,644

14,092

96,255

81,993

Interest and other expenses

7,522

101

34,226

31,582

Income from continuing operations before income taxes

7,122

13,991

62,029

50,411

Provision for income taxes

1,885

7,612

20,151

21,392

Income from continuing operations

5,237

6,379

41,878

29,019

Preferred & preference stock dividends

1,135

1,200

4,548

4,797

Net income applicable to common stock from continuing operations

4,102

5,179

37,330

24,222

Loss from discontinued operations

(298)

(4,099)

(2,829)

Net income applicable to common stock

$4,102

$4,881

$33,231

$21,393

Average common shares outstanding (in thousands)

34,741

33,000

34,142

32,389

Net income (loss) per common share

Continuing operations
•Discontinued operations

$.12

$.16
($.01)

$1.09
($.12)

$.75
($.09)

TOTAL

$.12

$.15

$.97

$.66


Stock Price Data

1997 STOCK PRICE

Quarter

High

Low

Dividend

1

$18.500

$15.000

.23

1996 STOCK PRICE

Quarter

High

Low

Dividend

1

$13.250

$12.000

.23

2

13.500

12.000

.23

3

17.500

12.750

.23

4

16.625

14.625

.23


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