MIDLAND, Texas, Aug. 14, 2002 — Cap Rock Energy Corp. recently reported results of operations for the second quarter ended June 30, 2002.
Cap Rock Energy Corporation reported net income of $925,000 for the second quarter of 2002, or $.71 per share, as compared to a loss of $199,000, or $.15 loss (pro forma) for the same quarter in 2001. Operating income rose 7% between the two periods, and other expenses decreased by 38% because of the lower interest rate environment.
Operating income for the six months ended June 30, 2002, was $6,735,000 as compared to $4,665,000 for the same period in 2001, an increase of 44% between the two periods. Other expenses decreased by $2,101,000 between the two comparative six month periods, or 41%, also because of the current interest rate environment. Net income for the six months ended June 30, 2002, was $3,707,000, or $2.85 per share, as compared to a loss of $464,000, or $.36 loss (pro forma) per share for the same period in 2001.
“Although we are pleased with our six months results, we do not feel we can predict results for the entire year, since our business is seasonal in nature. Additionally, lower interest rates, a major contributor to net income are not expected to decline further. However, we plan to secure a larger percentage of our debt with fixed rates going forward to secure the benefit of this interest rate environment,” states Lee D. Atkins, Senior Vice-President and CFO.
Cap Rock Energy Corporation is the successor to Cap Rock Electric Cooperative, Inc. On February 8, 2002, shares of Cap Rock Energy Corporation stock were distributed to those former members of Cap Rock Electric Cooperative Inc. who elected to receive shares of stock in exchange for their equity and membership interest. The company’s common stock was approved for listing on the American Stock Exchange on March 14, 2002.
The company provides electrical distribution services in 31 counties in Texas. Its corporate office is located in Midland, Texas, with service divisions in Stanton, Colorado City, Brady and Celeste, Texas, and has a management and operation agreement with the city of Farmersville, Texas, and a management and combination agreement with Lamar Electric Cooperative in Paris, Texas.