SCANA Corporation Reports First Quarter Earnings

Apr 26, 2001, 01:00 ET from SCANA Corporation

    COLUMBIA, S.C., April 26 /PRNewswire/ -- SCANA Corporation (NYSE:   SCG)
 today reported consolidated earnings for the first quarter of 2001 of
 $79 million, or 75 cents per share of common stock.  Those earnings include a
 one-time gain of 4 cents per share from the sale in March of SCANA Security,
 the Company's home security and alarm monitoring business.  By comparison,
 earnings in the first quarter of 2000 were $104 million, or $1.00 per share.
 Earnings reported for the prior quarter included a one-time, non-cash gain of
 28 cents per share related to a change in the accounting methodology used by
 the Company to record unbilled revenues.  Excluding these non-recurring items,
 earnings from continuing operations were 71 cents per share in the first
 quarter of 2001 compared to 72 cents per share in the first quarter last year.
     "Earnings from continuing operations in the first quarter of this year
 were relatively unchanged compared to the first quarter of last year," said
 Kevin Marsh, SCANA's senior vice president and chief financial officer.  "The
 favorable impact of higher margins on retail sales of electricity and natural
 gas during the quarter were offset by increases in operation and maintenance
 expenses, depreciation expense and interest costs."
     In the Company's core electric utility operations, colder weather and
 solid customer growth resulted in a 3.9 percent increase in retail kilowatt-
 hour sales of electricity compared to the first quarter of last year.
 Residential sales were up 9.7 percent and commercial sales increased
 4.7 percent.  Industrial sales declined 2.4 percent, reflecting a slowdown in
 the Company's service area economy.  At March 31, 2001, SCANA was serving
 539,113 electric customers, a 2.3 percent increase over the past year.
     Driven by the colder weather and customer growth, the Company's retail
 therm sales of natural gas in the first quarter of 2001 were up 5.4 percent
 compared to the first quarter of last year.  At March 31, 2001, SCANA was
 serving approximately 1.1 million natural gas customers in South Carolina,
 North Carolina and Georgia.
     SCANA Energy, the Company's non-regulated retail natural gas business that
 serves approximately 430,000 customers in Georgia, recorded earnings of
 9 cents per share in the first quarter of 2001, consistent with the first
 quarter of 2000.  "During the quarter sales margins increased due to colder
 weather, however, the improved margins were offset by the impact of record
 high natural gas prices and additional operating expenses," said Marsh.  "Our
 positive first quarter results reflect the responsiveness of our marketing
 strategies under very challenging conditions, and we believe we are still on
 track to achieve our earnings target of 5 cents per share or better in our
 Georgia operations this year."
     PSNC Energy, the Company's North Carolina-based natural gas distribution
 subsidiary, contributed 20 cents per share to SCANA's operating earnings in
 the first quarter, up from 18 cents per share in the first quarter of 2000.
 "That improvement was primarily the result of higher margins driven by above-
 average customer growth," said Marsh.
     Marsh noted that first quarter earnings were reduced by one cent per share
 due to an increase in the number of common shares outstanding in connection
 with a stock exchange offer related to the acquisition of PSNC Energy
 completed in the first quarter of 2000.
 
     2001 Earnings Outlook
 
     The Company currently estimates that earnings from continuing operations
 in the second quarter of 2001 will fall within the range of 25 - 35 cents per
 share.  For the year 2001, the Company currently estimates that earnings from
 continuing operations will fall within the range of $2.15 - $2.25 per share.
 These estimates assume, among other things, that the Company experiences
 normal weather in its electric and natural gas service areas.  The estimates
 do not include any impact on earnings from nonrecurring gains or losses,
 including the potential future monetization and reinvestment of any of the
 Company's current telecommunications investments.  The Company's stated goal
 is to achieve a 4% - 6% annual growth in earnings per share.
 
     Conference Call Notice
 
     SCANA will host a conference call at 10:00 a.m. EDT today.  The call-in
 number for the conference call is 1-800-374-2396.  Participants should call in
 5 to 10 minutes prior to the scheduled start time.  A tape recording of the
 conference call will be available approximately 2 hours after conclusion of
 the call through May 18 and may be accessed by calling 1-800-642-1687 and
 entering the conference I.D. number 217176.  A live, listen-only web cast of
 the conference call will also be available on the Company's web site at
 www.scana.com or at www.videonewswire.com/SCANA/042601/.  Participants should
 go to either of these web sites at least 10 minutes prior to the 10:00 a.m.
 EDT start time and follow the instructions.  A replay of the conference call
 will be available approximately 2 hours after conclusion of the call through
 May 18.
 
     SCANA Corporation, a Fortune 500 company headquartered in Columbia, SC, is
 an energy-based holding company principally engaged, through subsidiaries, in
 electric and natural gas utility operations, telecommunications and other
 energy-related businesses.  Information about SCANA and its businesses is
 available on the Company's website at www.scana.com.
 
     This press release includes forward-looking statements within the meaning
 of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
 the Securities Exchange Act of 1934, as amended. Those statements include
 statements regarding the intent, belief or current expectations of the Company
 and its management.  Although SCANA Corporation believes that its expectations
 are based on reasonable assumptions, it can give no assurance that its goals
 will be achieved.  Readers are cautioned that any such forward-looking
 statements are not guarantees of future performance and involve a number of
 risks and uncertainties that could cause actual results to differ materially
 from those indicated by such forward-looking statements including, but not
 limited to, the following important factors: (1) that the information is of a
 preliminary nature and may be subject to further and/or continuing review and
 adjustment, (2) changes in the utility regulatory environment, (3) changes in
 the economy, especially in areas served by the Company's subsidiaries, (4) the
 impact of competition from other energy suppliers, (5) growth opportunities
 for the Company's regulated and diversified subsidiaries, (6) the results of
 financing efforts, (7) changes in the Company's accounting policies, (8)
 weather conditions, especially in areas served by the Company's subsidiaries,
 (9) performance of and marketability of the Company's investments in
 telecommunications companies, (10) inflation, (11) changes in environmental
 regulations and (12) the other risks and uncertainties described from time to
 time in the Company's periodic reports filed with the Securities and Exchange
 Commission.  The Company disclaims any obligation to update any forward-
 looking statements.
 
 
     FINANCIAL INFORMATION
     Consolidated Statements of Income
     (Millions, except per share amounts) (Unaudited)
 
                                                         Three Months Ended
                                                               March 31,
     Operating Revenues:                                 2001           2000
      Electric                                          $ 340          $ 294
      Gas-Regulated                                       467            311
      Gas-Nonregulated                                    511            216
       Total Operating Revenues                         1,318            821
 
     Operating Expenses:
      Fuel and purchased power                            115             77
      Gas purchased for resale                            816            379
      Other operation and maintenance                     128            111
      Depreciation and amortization                        56             55
      Other taxes                                          30             29
       Total Operating Expenses                         1,145            651
 
     Operating Income                                     173            170
     Other Income, Net                                     22             12
     Interest Charges, Net                                 62             54
     Income Taxes                                          51             50
     Preferred Dividend Requirement of SCE&G -
      Mandatorily Redeemable Preferred Securities           1              1
     Preferred Stock Cash Dividends of Subsidiary          (2)            (2)
     Cumulative Accounting Change                          --             29
     Net Income                                         $  79         $  104
 
     Common Stock Data
      Earnings Per Share-Before
       Acct. Change                                     $ .75         $  .72
      Cumulative Effect of Acct. Change                    --            .28
      Earnings Per Share-After Acct. Change             $ .75         $ 1.00
      Common Shares Outstanding:
       Weighted Average                                 104.7          104.0
       Period End                                       104.7          104.7
 
     SUMMARY OF OPERATING EPS BY COMPANY:
                                                      3 Months Ended March 31,
                                                         2001           2000
     SC Electric & Gas                                  $ .50         $  .53
     SC Pipeline                                         (.01)           .04
     PSNC Energy                                          .20            .18
     SCANA Energy-Georgia                                 .09            .09
     Corporate and Other Nonregulated, Net               (.07)          (.12)
       Total Operating EPS                                .71            .72
     Nonrecurring Items                                   .04            .28
       Total Reported EPS                               $ .75         $ 1.00
 
     SUMMARY OF EPS VARIANCES:
                                                      1st Quarter
     2000 Reported EPS                                  $1.00
 
     Variances:
      Nonrecurring Items:
       Change in Unbilled Revenue Acctg. (1Q00)          (.28)
       Gain on Sale of Home Security Assets (1Q01)        .04
      Electric Margin                                     .04
      Gas Margin                                          .09
      O&M Expense                                        (.10)
      Depreciation Expense                               (.01)
      Interest Expense                                   (.05)
      Other, Net                                          .02
       Total Variance                                    (.25)
 
     2001 Reported EPS                                   $.75
 
 
     CONSOLIDATED OPERATING STATISTICS
 
 
                                             Three Months Ended March 31,
                                        2001            2000        % Change
     Electric Operations
      Sales (Million KWH):
       Residential                     1,745           1,590           9.7
       Commercial                      1,440           1,375           4.7
       Industrial                      1,529           1,567          (2.4)
       Other                             124             125          (0.8)
        Total Retail                   4,838           4,657           3.9
       Wholesale                         674             903         (25.4)
        Total Sales                    5,512           5,560          (0.9)
 
     Customers (Period-End)          539,113         526,970           2.3
 
     Natural Gas Operations
      Sales (Million Therms):
       Residential                       364             319          14.1
       Commercial                        154             138          11.6
       Industrial                        323             341          (5.3)
        Total Retail                     841             798           5.4
       Sales for Resale                  212             260         (18.5)
       Transportation Volumes             65              90         (27.8)
        Total Sales                    1,118           1,148          (2.6)
 
     Customers (Period-End)        1,068,695       1,054,101           1.4
 
 
     WEATHER DATA - Average of Columbia and Charleston, SC
 
 
                                            Three Months Ended March 31,
                                       Actual         Percent        Change
                                        2001          vs 2000      vs Normal
     Heating Degree Days               1,254             6.2         (7.8)
     Cooling Degree Days                  18           (23.4)       (42.5)
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X33032155
 
 

SOURCE SCANA Corporation
    COLUMBIA, S.C., April 26 /PRNewswire/ -- SCANA Corporation (NYSE:   SCG)
 today reported consolidated earnings for the first quarter of 2001 of
 $79 million, or 75 cents per share of common stock.  Those earnings include a
 one-time gain of 4 cents per share from the sale in March of SCANA Security,
 the Company's home security and alarm monitoring business.  By comparison,
 earnings in the first quarter of 2000 were $104 million, or $1.00 per share.
 Earnings reported for the prior quarter included a one-time, non-cash gain of
 28 cents per share related to a change in the accounting methodology used by
 the Company to record unbilled revenues.  Excluding these non-recurring items,
 earnings from continuing operations were 71 cents per share in the first
 quarter of 2001 compared to 72 cents per share in the first quarter last year.
     "Earnings from continuing operations in the first quarter of this year
 were relatively unchanged compared to the first quarter of last year," said
 Kevin Marsh, SCANA's senior vice president and chief financial officer.  "The
 favorable impact of higher margins on retail sales of electricity and natural
 gas during the quarter were offset by increases in operation and maintenance
 expenses, depreciation expense and interest costs."
     In the Company's core electric utility operations, colder weather and
 solid customer growth resulted in a 3.9 percent increase in retail kilowatt-
 hour sales of electricity compared to the first quarter of last year.
 Residential sales were up 9.7 percent and commercial sales increased
 4.7 percent.  Industrial sales declined 2.4 percent, reflecting a slowdown in
 the Company's service area economy.  At March 31, 2001, SCANA was serving
 539,113 electric customers, a 2.3 percent increase over the past year.
     Driven by the colder weather and customer growth, the Company's retail
 therm sales of natural gas in the first quarter of 2001 were up 5.4 percent
 compared to the first quarter of last year.  At March 31, 2001, SCANA was
 serving approximately 1.1 million natural gas customers in South Carolina,
 North Carolina and Georgia.
     SCANA Energy, the Company's non-regulated retail natural gas business that
 serves approximately 430,000 customers in Georgia, recorded earnings of
 9 cents per share in the first quarter of 2001, consistent with the first
 quarter of 2000.  "During the quarter sales margins increased due to colder
 weather, however, the improved margins were offset by the impact of record
 high natural gas prices and additional operating expenses," said Marsh.  "Our
 positive first quarter results reflect the responsiveness of our marketing
 strategies under very challenging conditions, and we believe we are still on
 track to achieve our earnings target of 5 cents per share or better in our
 Georgia operations this year."
     PSNC Energy, the Company's North Carolina-based natural gas distribution
 subsidiary, contributed 20 cents per share to SCANA's operating earnings in
 the first quarter, up from 18 cents per share in the first quarter of 2000.
 "That improvement was primarily the result of higher margins driven by above-
 average customer growth," said Marsh.
     Marsh noted that first quarter earnings were reduced by one cent per share
 due to an increase in the number of common shares outstanding in connection
 with a stock exchange offer related to the acquisition of PSNC Energy
 completed in the first quarter of 2000.
 
     2001 Earnings Outlook
 
     The Company currently estimates that earnings from continuing operations
 in the second quarter of 2001 will fall within the range of 25 - 35 cents per
 share.  For the year 2001, the Company currently estimates that earnings from
 continuing operations will fall within the range of $2.15 - $2.25 per share.
 These estimates assume, among other things, that the Company experiences
 normal weather in its electric and natural gas service areas.  The estimates
 do not include any impact on earnings from nonrecurring gains or losses,
 including the potential future monetization and reinvestment of any of the
 Company's current telecommunications investments.  The Company's stated goal
 is to achieve a 4% - 6% annual growth in earnings per share.
 
     Conference Call Notice
 
     SCANA will host a conference call at 10:00 a.m. EDT today.  The call-in
 number for the conference call is 1-800-374-2396.  Participants should call in
 5 to 10 minutes prior to the scheduled start time.  A tape recording of the
 conference call will be available approximately 2 hours after conclusion of
 the call through May 18 and may be accessed by calling 1-800-642-1687 and
 entering the conference I.D. number 217176.  A live, listen-only web cast of
 the conference call will also be available on the Company's web site at
 www.scana.com or at www.videonewswire.com/SCANA/042601/.  Participants should
 go to either of these web sites at least 10 minutes prior to the 10:00 a.m.
 EDT start time and follow the instructions.  A replay of the conference call
 will be available approximately 2 hours after conclusion of the call through
 May 18.
 
     SCANA Corporation, a Fortune 500 company headquartered in Columbia, SC, is
 an energy-based holding company principally engaged, through subsidiaries, in
 electric and natural gas utility operations, telecommunications and other
 energy-related businesses.  Information about SCANA and its businesses is
 available on the Company's website at www.scana.com.
 
     This press release includes forward-looking statements within the meaning
 of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
 the Securities Exchange Act of 1934, as amended. Those statements include
 statements regarding the intent, belief or current expectations of the Company
 and its management.  Although SCANA Corporation believes that its expectations
 are based on reasonable assumptions, it can give no assurance that its goals
 will be achieved.  Readers are cautioned that any such forward-looking
 statements are not guarantees of future performance and involve a number of
 risks and uncertainties that could cause actual results to differ materially
 from those indicated by such forward-looking statements including, but not
 limited to, the following important factors: (1) that the information is of a
 preliminary nature and may be subject to further and/or continuing review and
 adjustment, (2) changes in the utility regulatory environment, (3) changes in
 the economy, especially in areas served by the Company's subsidiaries, (4) the
 impact of competition from other energy suppliers, (5) growth opportunities
 for the Company's regulated and diversified subsidiaries, (6) the results of
 financing efforts, (7) changes in the Company's accounting policies, (8)
 weather conditions, especially in areas served by the Company's subsidiaries,
 (9) performance of and marketability of the Company's investments in
 telecommunications companies, (10) inflation, (11) changes in environmental
 regulations and (12) the other risks and uncertainties described from time to
 time in the Company's periodic reports filed with the Securities and Exchange
 Commission.  The Company disclaims any obligation to update any forward-
 looking statements.
 
 
     FINANCIAL INFORMATION
     Consolidated Statements of Income
     (Millions, except per share amounts) (Unaudited)
 
                                                         Three Months Ended
                                                               March 31,
     Operating Revenues:                                 2001           2000
      Electric                                          $ 340          $ 294
      Gas-Regulated                                       467            311
      Gas-Nonregulated                                    511            216
       Total Operating Revenues                         1,318            821
 
     Operating Expenses:
      Fuel and purchased power                            115             77
      Gas purchased for resale                            816            379
      Other operation and maintenance                     128            111
      Depreciation and amortization                        56             55
      Other taxes                                          30             29
       Total Operating Expenses                         1,145            651
 
     Operating Income                                     173            170
     Other Income, Net                                     22             12
     Interest Charges, Net                                 62             54
     Income Taxes                                          51             50
     Preferred Dividend Requirement of SCE&G -
      Mandatorily Redeemable Preferred Securities           1              1
     Preferred Stock Cash Dividends of Subsidiary          (2)            (2)
     Cumulative Accounting Change                          --             29
     Net Income                                         $  79         $  104
 
     Common Stock Data
      Earnings Per Share-Before
       Acct. Change                                     $ .75         $  .72
      Cumulative Effect of Acct. Change                    --            .28
      Earnings Per Share-After Acct. Change             $ .75         $ 1.00
      Common Shares Outstanding:
       Weighted Average                                 104.7          104.0
       Period End                                       104.7          104.7
 
     SUMMARY OF OPERATING EPS BY COMPANY:
                                                      3 Months Ended March 31,
                                                         2001           2000
     SC Electric & Gas                                  $ .50         $  .53
     SC Pipeline                                         (.01)           .04
     PSNC Energy                                          .20            .18
     SCANA Energy-Georgia                                 .09            .09
     Corporate and Other Nonregulated, Net               (.07)          (.12)
       Total Operating EPS                                .71            .72
     Nonrecurring Items                                   .04            .28
       Total Reported EPS                               $ .75         $ 1.00
 
     SUMMARY OF EPS VARIANCES:
                                                      1st Quarter
     2000 Reported EPS                                  $1.00
 
     Variances:
      Nonrecurring Items:
       Change in Unbilled Revenue Acctg. (1Q00)          (.28)
       Gain on Sale of Home Security Assets (1Q01)        .04
      Electric Margin                                     .04
      Gas Margin                                          .09
      O&M Expense                                        (.10)
      Depreciation Expense                               (.01)
      Interest Expense                                   (.05)
      Other, Net                                          .02
       Total Variance                                    (.25)
 
     2001 Reported EPS                                   $.75
 
 
     CONSOLIDATED OPERATING STATISTICS
 
 
                                             Three Months Ended March 31,
                                        2001            2000        % Change
     Electric Operations
      Sales (Million KWH):
       Residential                     1,745           1,590           9.7
       Commercial                      1,440           1,375           4.7
       Industrial                      1,529           1,567          (2.4)
       Other                             124             125          (0.8)
        Total Retail                   4,838           4,657           3.9
       Wholesale                         674             903         (25.4)
        Total Sales                    5,512           5,560          (0.9)
 
     Customers (Period-End)          539,113         526,970           2.3
 
     Natural Gas Operations
      Sales (Million Therms):
       Residential                       364             319          14.1
       Commercial                        154             138          11.6
       Industrial                        323             341          (5.3)
        Total Retail                     841             798           5.4
       Sales for Resale                  212             260         (18.5)
       Transportation Volumes             65              90         (27.8)
        Total Sales                    1,118           1,148          (2.6)
 
     Customers (Period-End)        1,068,695       1,054,101           1.4
 
 
     WEATHER DATA - Average of Columbia and Charleston, SC
 
 
                                            Three Months Ended March 31,
                                       Actual         Percent        Change
                                        2001          vs 2000      vs Normal
     Heating Degree Days               1,254             6.2         (7.8)
     Cooling Degree Days                  18           (23.4)       (42.5)
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X33032155
 
 SOURCE  SCANA Corporation