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Alliant Energy Annual Report (Amendment), Year Ended Dec 31, 1998

Filing Date
Filed November 1, 1999
Period End
December 31, 1998
Security
LNT
In the record · 2016–202610-K1110-Q338-K136

LNT filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 136 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Material agreement8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K/A filed November 1, 1999. Cited figures are marked; the original filing is the authoritative source.

This Form 10-K/A amendment, filed by Interstate Energy Corporation (now Alliant Energy Corporation) together with its subsidiaries IES Utilities Inc. and Wisconsin Power and Light Company, presents audited financial statements for fiscal year 1998.

Interstate Energy reported 1998 operating revenues of $2.13 billiona, down from $2.30 billion in 1997, and net income of $96.7 million, or $1.26 per share, compared with $144.6 million, or $1.90 per share, in 1997. The decline is attributed in the filing's figures to lower nonregulated and other revenues ($267.8 million versus $391.0 million) and to merger-related expenses recorded across 1998 quarters, which the notes describe as approximately $10 million, $35 million, $6 million and $3 million pre-tax. Operating income fell to $283.3 million from $336.4 million.

The balance sheet shows total assets of $4.96 billionb at December 31, 1998, and total common equity of $1.61 billion. Long-term debt, excluding current maturities, rose to $1.54 billion from $1.47 billion. Net cash flows from operating activities were $467.8 million in 1998.

Investors should note the company's $320.3 millionc investment in McLeodUSA Inc., carried at fair value under available-for-sale accounting, and the impairment charges recorded in 1998 for oil and gas properties ($9.7 million) and regulatory assets ($9.0 million). The filing also notes that Whiting Petroleum changed its oil and gas accounting from the full cost to the successful efforts method, with prior periods restated.

The subsidiaries' statements show IES Utilities Inc. net income of $61.9 milliond and Wisconsin Power and Light Company net income of $35.6 million for 1998. Note 17 discloses that shareowners approved renaming the corporation Alliant Energy Corporation, effective May 20, 1999.

02—Key points

Key Highlights

  1. Interstate Energy Corporation 1998 operating revenues were $2,130.9 million, down from $2,300.6 million in 1997.
  2. Net income declined to $96.7 million ($1.26 per share) from $144.6 million ($1.90 per share) in 1997, with merger-related expenses in each quarter of 1998.
  3. Operating income was $283.3 million in 1998 versus $336.4 million in 1997.
  4. Total assets were $4.96 billion at December 31, 1998, and total common equity was $1.61 billion.
  5. Long-term debt (excluding current portion) increased to $1.54 billion from $1.47 billion.
  6. The company carried a $320.3 million investment in McLeodUSA Inc. at fair value, with unrealized gains recorded in common equity rather than earnings.
  7. Subsidiary net income for 1998 was $61.9 million at IES Utilities Inc. and $35.6 million at Wisconsin Power and Light Company.

03—Questions

Frequently Asked Questions

  1. Why did net income decline in 1998?

    The filing shows net income of $96.7 million in 1998 versus $144.6 million in 1997. Operating income fell to $283.3 million from $336.4 million, and the notes attribute 1998 results partly to merger-related expenses recorded in each quarter, approximately $10 million, $35 million, $6 million and $3 million pre-tax. Nonregulated and other operating revenues also declined to $267.8 million from $391.0 million.

  2. How large is the company's McLeodUSA investment?

    At December 31, 1998, the McLeodUSA Inc. investment was carried at $320.3 million on the balance sheet, based on fair market value of 10.3 million shares and options, against a cost of $29.1 million. Under SFAS 115, unrealized gains are recorded in common equity and are reflected in earnings only when realized through a sale, and a November 1998 agreement with McLeodUSA restricts the company's ability to sell the stock.

  3. What impairments were recorded in 1998?

    The cash flow statement shows a $9.7 million impairment of oil and gas properties and an $8.97 million impairment of regulatory assets in 1998. The filing states the successful efforts method for oil and gas properties recognizes impairments only upon a permanent decline in fair value.

  4. What is the company's new name?

    Note 17 states that at the May 19, 1999 annual shareowners meeting, shareowners approved changing the corporation's name from Interstate Energy Corporation to Alliant Energy Corporation, effective May 20, 1999. The filing notes the company was then doing business as Alliant Energy Corporation.

04—Continue

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