8-KOther Events

WILLIAMS COMPANIES, INC. 8-K Report (Apr 26, 2002)

Filed April 26, 2002For Securities:WMB

Summary

Williams Companies, Inc. (WMB) reported its first-quarter 2002 financial results on April 25, 2002. The company announced unaudited recurring earnings per share of $0.51, which fell short of the previously guided range of $0.40 to $0.45 but exceeded the prior year's restated recurring earnings of $0.77 per share. This quarter's results were impacted by a significant $232 million pre-tax charge related to a reduction in the carrying value of receivables from Williams Communications Group, Inc. (WCGRQ).

Key Highlights

  • 1Williams reported first-quarter 2002 recurring earnings of $0.51 per share, exceeding their prior guidance range.
  • 2Net income for the first quarter of 2002 was $107.7 million, a decrease from $199.2 million in the same period last year.
  • 3A substantial $232 million pre-tax charge was taken to reduce the carrying value of receivables from Williams Communications Group, Inc. (WCGRQ).
  • 4The company reported a first-quarter 2002 loss from discontinued operations of $15.5 million, primarily related to the sale of the Kern River pipeline.
  • 5Diluted earnings per share for Q1 2002 were $0.07, which included a non-cash reduction of $0.13 per share due to accounting for a preferred stock offering.
  • 6The Kern River pipeline was sold on March 27, 2002, contributing to discontinued operations.

Frequently Asked Questions

Williams reported unaudited recurring earnings of $0.51 per share for the first quarter of 2002. This exceeded the company's previously stated expectation range of $0.40 to $0.45 per share. However, it represented a decrease compared to the restated recurring earnings of $0.77 per share from the same period in 2001.

The company recorded a significant $232 million pre-tax charge to reduce the carrying value of certain receivables from Williams Communications Group, Inc. (WCGRQ). This charge negatively impacted income from continuing operations.

The loss from discontinued operations of $15.5 million in the first quarter of 2002 primarily stems from the sale of the Kern River pipeline on March 27, 2002, and includes the results of operations and the loss on its sale. The prior year's loss from discontinued operations also included these items as well as WCGRQ.

The diluted earnings per share of $0.07 for the first quarter of 2002 included a non-cash reduction of $0.13 per share. This reduction was due to the accounting treatment for a beneficial conversion feature associated with a preferred stock offering completed during the quarter.