Boosted by new contracts and lower interest expense, Energy Factors reported a 46% increase in net income to $5.2 million for the year ended Dec. 31 on revenues of $28.1 million, up 14%.
Fourth-quarter net income rose 57% to $1.7 million, while revenues increased only 1% to $7.2 million.
The fourth-period rise in earnings was due to lower interest expense because no debenture interest was incurred during most of the quarter, according to Rick Kay, senior vice president-finance.
In October, the co-generation company called for redemption of its 10% convertible subordinated debentures, which were converted to common stock in November.
And in December, Energy Factors sold nearly $81 million of 8.25% convertible subordinated debentures. The proceeds were used to finance new projects and to purchase all of the common stock in the company held by San Diego Gas & Electric for nearly $25 million.