Server: Netscape-Enterprise/2.01 Date: Thu, 18 Dec 1997 22:08:25 GMT Accept-ranges: bytes Last-modified: Mon, 15 Dec 1997 19:03:45 GMT Content-length: 29044 Content-type: text/html United Water: Third Quarter Report 1997

United Water

investor info

United Water 3rd Quarter Report


Dear Fellow Shareholders:

United Water achieved a new milestone in the company's growth strategy during the third quarter of 1997. In July, we formed United Water Services, the new-business development arm we are marketing nationally under the United Water name. We did this by restructuring our joint interest with Suez Lyonnaise des Eaux in JMM Operational Services from 50 percent to full ownership.

The restructuring reinforced United Water's position as a leading contract operator of municipal water and wastewater systems in North America and enhanced our ability to compete for contracts with large cities to operate their water and wastewater systems. Our position in this market was advanced during the quarter when Indianapolis extended our two contracts for wastewater treatment and sewage collection by ten years. The wastewater contract is the largest of its kind in the United States.

The major factor in our results for the third quarter of 1997 was the negative impact of the one-time windfall profits tax imposed in the United Kingdom on privatized utilities, including Northumbrian Water Group, which is partially owned by United Water. As a result, earnings per share for the quarter were 18 cents, compared with 46 cents in the same period a year ago. Excluding the impact of the windfall profits tax, core utility investments, which include Northumbrian Water, improved to 53 cents per share in the third quarter of 1997 from 52 cents per share in the same period in 1996.

Maintaining our long-standing dividend record, United Water will pay a regular quarterly dividend of 23 cents per common share on December 1, 1997, to shareholders of record on November 14, 1997. Thank you for your continuing support of our company.

Donald L. Correll
Chairman and Chief Executive Officer
November 1, 1997

 


Statement of Consolidated Income

Three Months
Ended September 30,

Nine Months
Ended September 30,

Twelve Months
Ended September 30,

In thousands of dollars except per share data (unaudited)

1997

1996

 

1997

1996

1997

1996

Operating revenues

$ 99,690

$97,871

$267,457

$250,211

$349,291

$324,528

Operating expenses

Operations and maintenance

42,959

42,667

128,299

116,583

167,594

163,726

Depreciation and amortization

8,687

7,980

26,055

23,332

33,575

30,556

General taxes

13,875

13,304

39,299

37,869

51,046

49,420

Total operating expenses

65,521

63,951

193,653

177,784

252,215

243,702

Operating income

34,169

33,920

73,804

72,427

97,076

80,826

Interest and other expenses

18,451

7,678

32,848

17,861

41,788

28,485

Income from continuing operations before income taxes

15,718

26,242

40,956

54,566

55,288

52,341

Provision for income taxes

8,185

9,314

15,871

22,432

19,317

22,017

Income from continuing operations

7,533

16,928

25,085

32,134

35,971

30,324

Preferred & preference stock dividends

1,069

1,137

3,275

3,477

4,411

4,678

Net income applicable to common stock from continuing operations

$ 6,464

$ 15,791

$ 21,810

$ 28,657

$ 31,560

$ 25,646


Loss from discontinued operations

(270)

(892)

(3,505)

(3,334)

Net income applicable to common stock

$ 6,464

$ 15,521

$ 21,810

$ 27,765

$ 28,055

$ 22,312

Average common shares outstanding
(in thousands)

35,985

33,986

35,454

33,505

35,203

33,278


Net income (loss) per common share

  • Continuing operations

$.18

$.47

$.62

$.86

$.90

$.77

  • Discontinued operations

($.01)

($.03)

($.10)

($.10)

TOTAL

$ .18

$ .46

$ .62

$.83

$ .80

$.67


Stock Price Data

1997 STOCK PRICE

Quarter

High

Low

Dividend

1

$18.500

$15.000

.23

2

19.375

16.375

.23

3

19.813

17.000

.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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