Statement of Operations
For the period 1/1/2003 through 11/30/2003
We are pleased to report that the KIUC results of
operations through November 30, 2003 remained strong. Total revenues,
expenses and net income totaled $91.4 million, $82.4 million, and $9
million, respectively, for the 11-month period ending November 30, 2003.
Power generation expenses totaled $36.7 million (or
40% of revenue). Fuel costs continue to be the major cost component of
power generation. Operation and maintenance of electric transmission and
distribution line expenses totaled $2.7 million (or 3% of revenue).
Member service expenses totaled $1.9 million (or 2% of revenue), and
administrative and general expenses totaled $6.3 million (or 7% of
revenue).
Depreciation expense on utility plant on service
totaled $13.2 million (or 14% of revenue), and interest expense on
long-term debt totaled $13.8 million (or 15% of revenue). KIUC incurred
tax expense of $7.8 million (or 9% of revenue). As a cooperative, KIUC is
exempt from federal income tax, but is subject to state and local taxes.
Total revenue of $91.4 million less total expenses of
$82.4 million yielded a net income (or net margin) of $9 million for the
11-month period ending November 30, 2003.
KIUC’s net income was positively impacted by an
increase in members of 2% (compared to a year ago), an increase in
year-to-date kilowatt hour sales to members of 4% (compared to a year
ago), a local economy continuing to recover, and management’s successful
efforts to control costs in 2003.
We remain committed to running our business consistent with cooperative
principles for the long-term, with sound business practices and ethical
corporate governance. We’re operating our generating plants at high
levels of efficiency, continually upgrading our transmission and
distribution system so that our members get their power safely and
reliably at the lowest cost, and building our position in the community as
a leader in member satisfaction.
