UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||
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For the Quarterly Period Ended March 31, 2003 | ||||||
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||
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For the Transition Period From ____________ to ____________ | ||||||
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| Commission File Number | ||||||||
| 1-10290 | ||||||||
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| DQE, Inc. | ||||||||
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| (Exact name of registrant as specified in its charter) | ||||||||
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| Pennsylvania |
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25-1598483 | ||||||
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| (State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) | ||||||
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| 411 Seventh Avenue | ||||||||
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| (Address of principal executive offices)(Zip Code) | ||||||||
Registrant’s telephone number, including area code: (412) 393-6000
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.
| Yes x |
No o |
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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No o |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date:
DQE Common Stock, no par value - 74,806,511 shares outstanding as of April 30, 2003.
| PART I. |
FINANCIAL INFORMATION |
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| Item 1. |
Financial Statements. |
DQE Condensed Consolidated Statements of Income (Unaudited)
(All amounts in millions, expect per share data)
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Three Months Ended March 31, |
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2003 |
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2002 |
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| Operating Revenues: |
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| Retail sales of electricity |
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$ |
193.4 |
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$ |
244.2 |
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| Other |
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26.9 |
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24.3 |
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| Total Operating Revenues |
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220.3 |
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268.5 |
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| Operating Expenses: |
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| Purchased power |
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96.4 |
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98.9 |
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| Other operating and maintenance |
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50.1 |
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51.1 |
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| Depreciation and amortization |
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23.3 |
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77.2 |
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| Taxes other than income taxes |
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13.7 |
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16.8 |
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| Total Operating Expenses |
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183.5 |
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244.0 |
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| Operating Income |
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36.8 |
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24.5 |
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| Other Income |
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25.3 |
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17.4 |
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| Interest and Other Charges |
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19.2 |
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21.6 |
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| Income from Continuing Operations Before Income Taxes |
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42.9 |
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20.3 |
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| Income Taxes |
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15.0 |
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6.8 |
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| Income from Continuing Operations |
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27.9 |
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13.5 |
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| Income from Discontinued Operations, Net of Tax |
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1.7 |
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3.2 |
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| Income Before Cumulative Effect of Change in Accounting Principle |
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29.6 |
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16.7 |
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| Cumulative Effect of Change in Accounting Principle |
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— |
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(113.7 |
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| Net Income (Loss) |
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29.6 |
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(97.0 |
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| Dividends on Preferred Stock |
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0.2 |
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0.2 |
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| Earnings (Loss) Available for Common Stock |
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$ |
29.4 |
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$ |
(97.2 |
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| Average Number of Common Shares Outstanding |
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74.5 |
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56.2 |
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| Basic Earnings (Loss) Per Share of Common Stock |
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| Earnings from Continuing Operations |
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$ |
0.37 |
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$ |
0.23 |
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| Earnings from Discontinued Operations |
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0.02 |
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0.06 |
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| Cumulative Effect of Change in Accounting Principle |
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— |
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(2.02 |
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| Basic Earnings (Loss) Per Share of Common Stock |
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$ |
0.39 |
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$ |
(1.73 |
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| Diluted Earnings (Loss) Per Share of Common Stock: |
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| Earnings from Continuing Operations |
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$ |
0.37 |
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$ |
0.23 |
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| Earnings from Discontinued Operations |
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0.02 |
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0.06 |
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| Cumulative Effect of Change in Accounting Principle |
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— |
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(1.99 |
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| Diluted Earnings (Loss) Per Share of Common Stock |
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$ |
0.39 |
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$ |
(1.70 |
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| Dividends Declared Per Share of Common Stock |
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$ |
0.25 |
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$ |
0.42 |
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See notes to condensed consolidated financial statements.
2
DQE Condensed Consolidated Balance Sheets (Unaudited)
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(Millions of Dollars) |
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March 31, |
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December 31, |
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| ASSETS |
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| Current Assets: |
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| Cash and temporary cash investments |
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$ |
71.7 |
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$ |
93.9 |
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| Receivables - net |
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119.9 |
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133.9 |
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| Other |
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77.9 |
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55.8 |
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| Discontinued operations |
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186.7 |
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190.7 |
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| Total Current Assets |
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456.2 |
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474.3 |
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| Long-Term Investments |
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570.9 |
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573.5 |
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| Property, Plant and Equipment: |
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| Gross property, plant and equipment |
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2,108.8 |
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2,100.1 |
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| Less: Accumulated depreciation and amortization |
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(685.5 |
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(674.6 |
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| Total Property, Plant and Equipment – Net |
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1,423.3 |
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1,425.5 |
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| Other Non-Current Assets: |
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| Regulatory assets |
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280.1 |
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280.3 |
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| Transition costs |
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17.6 |
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24.1 |
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| Other |
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32.3 |
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33.6 |
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| Total Other Non-Current Assets |
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330.0 |
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338.0 |
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| Total Assets |
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$ |
2,780.4 |
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$ |
2,811.3 |
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| CAPITALIZATION AND LIABILITIES |
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| Current Liabilities: |
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| Notes payable and current debt maturities |
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$ |
1.0 |
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$ |
1.0 |
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| Other |
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196.3 |
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208.0 |
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| Discontinued operations |
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43.4 |
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54.9 |
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| Total Current Liabilities |
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240.7 |
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263.9 |
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| Non-Current Liabilities: |
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| Deferred income taxes – net |
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593.8 |
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610.3 |
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| Deferred income |
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12.9 |
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12.8 |
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| Other |
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143.7 |
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146.5 |
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| Total Non-Current Liabilities |
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750.4 |
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769.6 |
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| Commitments and contingencies (Note G) |
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| Capitalization: |
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| Long-term debt |
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1,079.7 |
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1,082.0 |
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| DLC obligated mandatorily redeemable preferred securities |
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150.0 |
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150.0 |
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| Preferred Stock: |
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| DQE preferred stock |
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22.4 |
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22.4 |
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| Preferred stock of subsidiaries |
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61.6 |
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61.6 |
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| Preference stock of subsidiaries |
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9.1 |
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9.2 |
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| Total Preferred Stock |
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93.1 |
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93.2 |
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| Common Shareholders’ Equity: |
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| Common stock – no par value (authorized – 187,500,000 shares; issued – 126,929,154 shares) |
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1,219.1 |
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1,219.1 |
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| Retained earnings |
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461.8 |
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452.9 |
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| Treasury stock (at cost) (52,358,440 and 52,584,174 shares) |
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(1,213.9 |
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(1,219.1 |
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| Accumulated other comprehensive loss |
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(0.5 |
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(0.3 |
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| Total Common Shareholders’ Equity |
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466.5 |
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452.6 |
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| Total Capitalization |
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1,789.3 |
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1,777.8 |
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| Total Liabilities and Capitalization |
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$ |
2,780.4 |
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$ |
2,811.3 |
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See notes to condensed consolidated financial statements.
3
DQE Condensed Consolidated Statements of Cash Flows (Unaudited)
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(Millions of Dollars) |
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Three Months Ended March 31, |
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2003 |
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2002 |
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| Cash Flows From Operating Activities: |
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| Operations |
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$ |
39.8 |
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$ |
91.8 |
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| Changes in working capital other than cash |
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(17.9 |
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(49.3 |
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| Cash flows from discontinued operations |
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(7.5 |
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(14.2 |
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| Other |
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(21.3 |
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17.4 |
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| Net Cash (Used in) Provided by Operating Activities |
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(6.9 |
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45.7 |
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