Cap Rock Energy Reports Earnings for 2003
March 30 2004 - 11:00AM
PR Newswire (US)
Cap Rock Energy Reports Earnings for 2003 MIDLAND, Texas, March 30
/PRNewswire-FirstCall/ -- Cap Rock Energy Corporation today
reported net income of $11.198 million for the year ended December
31, 2003, or $7.41 earnings per common share, diluted,compared to
$8.776 million, or $6.74 per common share, diluted, for the year
ended December 31, 2002. "Our financial and other achievements in
2003 were commendable and exceeded our expectations," stated David
W. Pruitt, President and CEO of Cap Rock Energy. "We received
approval for the transfer of the CCN to Cap Rock Energy from its
predecessor, thus completing the conversion process. As we are now
subject to the oversight authority of the Public Utility Commission
of Texas, we believe we have made significant steps in positioning
ourselves for entrance in the regulatory arena. We have nearly
achieved our goal of selling all assets that are not directly
related to our core business. As we continue to build on our
achievements, we will maintain our unsurpassed high level of
quality electric service. Our attitude of excellence will enable us
to continue to meet challenges in an increasingly competitive
marketplace." Detailed below are financial highlights for Cap Rock
Energy for the years ended 2003 and 2002: (in thousands, except
share and Year ended December 31, per share data) 2003 2002
Operating revenues $82,852 $74,637 Operating income $19,869 $14,673
Net income $11,198 $ 8,776 Earnings per share: Basic $ 7.69 $ 6.74
Diluted $ 7.41 $ 6.74 Weighted average number of common shares
outstanding: Basic 1,455,443 1,302,355 Diluted 1,510,741 1,302,355
Total assets $202,989 $211,294 Total debt $162,195 $181,976 Equity
$ 26,973 $ 14,738 The major component of the increase in operating
revenues is the result of the change in the method of revenue
recognition in accordance with the Company's change in rate-making
policy. The other two major components were adjustments for
recovery of increased power costs from prior periods, and a
regulatory surcharge billed to customers, which related to
intervention costs. Operations and maintenance expense increased
because personnel devoted more time to maintaining the distribution
and transmission systems, which resulted in current expense as
opposed to engaging in construction activities that would have
resulted in capitalized costs. Decreased costs in 2003 for legal
fees and outside services, which related to the PUCT proceedings
concerning the application to transfer certified territory to the
Company, were partially offset by noncash stock awards to
employees, officers and directors. These awards are being expensed
over periods of 2 to 5 years. In an effort to focus all of the
Company's resources on its core business by divesting itself of
activities which are unrelated to providing quality electric
service, the Company sold its interest in an oil and gas company,
as well as extinguished a note payable and cross-collateralized
note receivable. The effective tax rate for both 2003 and 2002 is
less than the statutory rate because of the availability and
expected utilization of net operating loss carryforwards, as well
as significant book/tax timing differences. Cap Rock Energy
provides electric distribution services to approximately 35,000
meters in 28 counties in Texas. Its corporate officeis 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. 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. This statement should be read in conjunction with all
other filings made with the Securities and Exchange Commission. 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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