Atmos Energy (ATO) Q4 2000 earnings summary

Executive summary

• FY2000 net income more than doubled to $35.9 million from $17.7 million; diluted EPS rose to $1.14 from $0.58 despite weather 18% warmer than normal.

• Growth came from improved utility earnings, rate redesigns, acquisitions, and expansion of non-utility operations.

• Meter count increased 5.6% to 1,096,599; throughput rose 1.0% to 197,564 MMcf.

Financial highlights

• Operating revenue rose 23.2% to $850.2 million; gross profit increased 8.6% to $325.7 million.

• Operating income was $85.3 million versus $54.2 million; net income was $35.9 million versus $17.7 million.

• Utility net income rose 108.0% to $22.5 million; non-utility net income increased 93.8% to $13.5 million.

• Cash dividends per share increased 3.6% to $1.14; total assets grew 9.6% to $1.35 billion.

Outlook and guidance

• Management expected solid earnings growth in FY2001 and beyond, supported by acquisitions, customer relationships, non-utility growth, and technology-driven efficiency.

• More than $16 million of additional annual revenue was expected from completed proceedings and post-year-end settlements; pending cases could lift FY2001 annual revenue by more than $18 million, assuming Virginia rates were approved.

• Non-utility earnings growth was expected to exceed utility earnings growth, excluding acquisitions.

• US natural gas consumption was forecast to rise from 22 quadrillion Btus to 30–35 quadrillion Btus by 2020.