Server: Netscape-Enterprise/2.01 Date: Thu, 18 Dec 1997 22:08:06 GMT Accept-ranges: bytes Last-modified: Mon, 20 Oct 1997 20:16:16 GMT Content-length: 43210 Content-type: text/html United Water: Second Quarter Report 1997

United Water

 

investor info

United Water 2nd Quarter Report


Dear Fellow Shareholders:

I am pleased to report that for the second quarter of 1997, United Water's earnings per share increased by 45 percent over the same period in 1996, from 22 cents per share to 32 cents per share. This increase reflects the continued strength of our core utility investments, which include our investment in Northumbrian Water Group in the United Kingdom. Utility investments contributed 40 cents per share in the second quarter of 1997, compared with 28 cents per share in the same period a year ago.

As expected, United Water is beginning to receive incentive revenues from our public-private partnerships for such initiatives as increased collections. We anticipate that contract incentives will contribute to our revenue flow on an ongoing basis. This is in addition to the revenues we receive for operating and managing water and wastewater systems through our public-private partnerships with municipalities.

Third quarter earnings will be negatively impacted by approximately 35 cents per share due to the one-time "windfall profits" tax to be imposed on privatized United Kingdom utilities. This one-time tax will not have an effect on United Water's cash flow or our ability to pay dividends. We had factored the possible imposition of the tax in our financial analysis at the time of our investment in Northumbrian Water Group, and had considered it in determining the purchase price. The tax should not affect the long-term benefit United Water derives from our investment in Northumbrian.

Visit our web site
We are pleased to announce the launching of United Water's web site. Visit us at www.unitedwater.com for a wide range of current information on your company. Be sure to revisit us during the year as we update and expand our site.

Dividend payable September 1
Maintaining our long-standing dividend record, United Water will pay a regular quarterly dividend of 23 cents per share on September 1, 1997, to shareholders of record on August 15, 1997. Thank you for your continuing support of our company.

 

Donald L. Correll
Chairman and Chief Executive Officer
July 21, 1997

 


Statement of Consolidated Income

Three Months
Ended June 30,

Six Months
Ended June 30,

Twelve Months
Ended June 30,

In thousands of dollars except per share data (unaudited)

1997

1996

 

1997

1996

1997

1996

Operating revenues

$ 87,761

$82,581

$167,767

$152,340

$347,472

$321,011

Operating expenses

Operations and maintenance

41,278

37,959

85,340

73,916

167,303

160,025

Depreciation and amortization

8,740

7,810

17,368

15,352

32,866

29,710

General taxes

12,752

12,397

25,424

24,565

50,476

49,162

Total operating expenses

62,770

58,166

128,132

113,833

250,645

238,897

Operating income

24,991

24,415

39,635

38,507

96,827

82,114

Interest and other expenses

6,875

10,082

14,397

10,183

31,015

30,973

Income from continuing operations before income taxes

18,116

14,333

25,238

28,324

65,812

51,141

Provision for income taxes

5,801

5,506

7,686

13,118

20,446

22,087

Income from continuing operations

12,315

8,827

17,552

15,206

45,366

29,054

Preferred & preference stock dividends

1,071

1,140

2,206

2,340

4,479

4,739

Net income applicable to common stock from continuing operations

$ 11,244

$ 7,687

$ 15,346

$ 12,866

$ 40,887

$ 24,315


Loss from discontinued operations

(324)

(622)

(3,775)

(3,130)

Net income applicable to common stock

$ 11,244

$ 7,363

$ 15,346

$ 12,244

$ 37,112

$ 21,185

Average common shares outstanding
(in thousands)

35,562

33,550

35,203

33,281

34,738

32,835


Net income (loss) per common share

  • Continuing operations

$.32

$.23

$.44

$.39

$1.18

$.74

  • Discontinued operations

($.01)

($.02)

($.11)

($.09)

TOTAL

$ .32

$ .22

$ .44

$.37

$ 1.07

$ .65


Stock Price Data

1997 STOCK PRICE

Quarter

High

Low

Dividend

1

$18.500

$15.000

.23

2

19.375

16.375

.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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