CH Energy Group, Inc. Posts Increased Earnings in 2001.Business Editors POUGHKEEPSIE Poughkeepsie (pəkĭp`sē), city (1990 pop. 28,844), seat of Dutchess co., SE N.Y., on the Hudson River; settled 1687 by the Dutch, inc. as a city 1854. , N.Y.--(BUSINESS WIRE)--Feb. 1, 2002 CH Energy Group, Inc. (NYSE NYSE See: New York Stock Exchange : CHG CHG Change CHG Charge CHG Changed CHG Chlorhexidine Gluconate (aka chloraprep) CHG Centre Hospitalier Général (French: general hospital) CHG Come Holy Ghost (Catholicism) ) today announced that it earned $3.11 per share in 2001, compared to $3.05 in 2000 -- an increase of 2 percent. "We're we're Contraction of we are. we're we are pleased that we were able to increase earnings per share in 2001, a very eventful e·vent·ful adj. 1. Full of events: an eventful week. 2. Important; momentous: an eventful decision. and challenging year for our Company and in the energy industry. Overall, I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in pleased by the performance of CH Energy Group last year," said Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. J. Ganci, Chairman of the Board and Chief Executive Officer. The 2001 consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: earnings per share of $3.11 were the sum of the following components: $2.50 (versus $2.95 in 2000) from Central Hudson Hudson, towns, United States Hudson. 1 Industrial town (1990 pop. 17,233), Middlesex co., E central Mass., on the Assabet River, in an apple-growing region; settled c.1699, inc. 1866. Gas & Electric Corp., the utility subsidiary; 9 cents (versus 10 cents in 2000) from competitive subsidiary Central Hudson Energy Services, Inc.; and 52 cents (versus breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in 2000) from the holding company, resulting primarily from interest income on temporary cash investments. The shift in income from Central Hudson Gas & Electric Corp. to the holding company is due to the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of ownership interests in electric generating plants by Central Hudson Gas & Electric and investment of the proceeds by the holding company. Earnings per share for the fourth quarter were $1.21 versus 64 cents in 2000. Of the $1.21, 71 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. were related to investment tax credits and amortization of an "auction incentive" earned under a prior regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. agreement. Subsidiary Highlights: Central Hudson Gas & Electric experienced strong economic growth in its service territory in 2001. Electric sales billed in 2001 increased by 4 percent and customer count increased by 2.5 percent. Natural gas sales billed in 2001 increased by 2 percent and customer count increased by 3.1 percent. "Our utility's reliability, price and customer satisfaction performance was well above regulatory standards," Ganci said, noting that typical residential electric prices were 28 percent below the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State average last year, continuing the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. trend of recent years. Central Hudson Energy Services' earnings per share were slightly below 2000 and were impacted by losses of 3 cents at its power generation unit, CH Resources, the pending sale of which was announced in December December: see month. to WPS See Windows Printing System and Workplace Shell. (unit) wps - (Obsolete) Words per second (mostly used for Telex and TWX transmission). Power Development, Inc. for $61 million. Central Hudson Energy Services' oil distribution companies contributed 11 cents per share to consolidated earnings in 2001, versus 13 cents in 2000. Other Central Hudson Energy Services' business units produced net earnings per share of 1 cent. "These units, including retail electricity, cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. partnerships and energy efficiency projects, are under review for restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). or sale in 2002, so that we can focus on developing our oil distribution business," Ganci said. 2002 Earnings Projections CH Energy Group, Inc. projects consolidated earnings per share in the range of $2.70 to $2.85 in 2002, broken down as follows: $1.95 to $2.05 from Central Hudson Gas & Electric; 30 cents to 40 cents from Central Hudson Energy Services, which excludes an estimated net gain of 15 cents to 20 cents from the sale of CH Resources; and 25 cents to 30 cents from interest income on temporary cash investments. Headquartered in Poughkeepsie, New York, CH Energy Group is a family of companies seizing new opportunities in the energy marketplace through two primary subsidiaries: Central Hudson Gas & Electric Corporation and Central Hudson Energy Services, Inc. Central Hudson Gas & Electric is a regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. electric and natural gas utility serving approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 340,000 customers in portions of eight counties in New York's Mid-Hudson Valley region. Central Hudson Energy Services, Inc. serves more than 75,000 customers in 11 Northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. and Mid-Atlantic states Mid-At·lan·tic States See Middle Atlantic States. Noun 1. Mid-Atlantic states - a region of the eastern United States comprising New York and New Jersey and Pennsylvania and Delaware and Maryland U.S.A. with electricity, heating oil, motor fuels, natural gas, propane propane, CH3CH2CH3, colorless, gaseous alkane. It is readily liquefied by compression and cooling. It melts at −189.9°C; and boils at −42.2°C;. and value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: energy services. CH Energy Group posted revenues of $728 million in 2001. Ganci and Chief Financial Officer Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. V. Lant will conduct a conference call for analysts and investors to discuss 2001 financial results and 2002 projections at 4:00 (EST EST electroshock therapy. EST abbr. electroshock therapy ) today (Feb. 1, 2002). Participants should dial 1-800-450-0785 and indicate the Conference Name of "CH Energy Group." A digitized replay of the call will be available from 11:00 p.m. (EST) on Feb. 1 until 11:59 p.m. (EST) on Feb. 8 by dialing 1-800-475-6701 and entering access code # 624761. Statements included in this news release which are not historical in nature, are intended to be, and are hereby identified as, "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provided by Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. by Public Law 104-67, and within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Forward-looking statements may be identified by words including "anticipate," "believe," "intends," "estimates," "expect," and similar expressions. The Company cautions readers that forward-looking statements, including without limitation, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future business prospects, revenues, proceeds, working capital, liquidity, income and margins, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to several important factors including those identified from time-to-time in the Company's reports filed with the SEC. All forward-looking statements are intended to be subject to the safe harbor protections provided by the laws mentioned above. A number of important factors affecting the Company's business and financial results could cause actual results to differ materially from those stated in the forward-looking statements. Those factors include weather; energy supply and demand; developments in the legislative, regulatory and competitive environment; electric and gas industry restructuring and cost recovery; future market prices for energy, capacity and ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. services; the outcome of pending litigation; and certain environmental matters.
CH Energy Group, Inc. announces the following operating results for
the periods indicated:
3 Months Ended December 31 2001 2000
---- ----
Operating Revenues (1) $153,674,000 $243,115,000
Net Income $ 19,761,000 $ 10,536,000
Earnings Per Share (Basic and
Diluted) $ 1.21 $ .64
Average Shares Outstanding 16,362,000 16,486,000
12 Months Ended December 31 2001 2000
---- ----
Operating Revenues (1) $728,431,000 $749,886,000
Net Income $ 50,835,000 $ 50,973,000
Earnings Per Share (Basic and
Diluted) $ 3.11 $ 3.05
Average Shares Outstanding 16,362,000 16,716,000
(1) Includes energy service charges/credits
CH ENERGY GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited) (Audited)
3 Months Ended 12 Months Ended
December 31, December 31,
------------------ -------------------
2001 2000 2001 2000
--------- -------- ---------- ---------
(Thousands of (Thousands of
Dollars) Dollars)
OPERATING REVENUES
Electric $89,827 $148,871 $428,416 $531,820
Gas 20,514 30,506 110,717 107,039
Unregulated Affiliate 43,333 63,738 189,298 111,027
-------- ---------- --------- ---------
Total Operating Revenues 153,674 243,115 728,431 749,886
-------- ---------- --------- ---------
OPERATING EXPENSES
Operations - Fuel, Purchased
Electric,
Purchased Gas and
Purchased Petroleum 83,484 138,399 410,436 360,447
Other Exp. of Operation
- Regulated Activities 22,113 36,056 106,751 137,800
Other Exp. of Operation
- Unregulated Affiliate
Activities 17,126 11,859 56,482 30,343
Depreciation and
Amortization 8,069 13,844 35,637 51,453
Operating Taxes 12,628 8,253 50,402 54,151
Federal / State Income Tax 3,084 15,018 21,043 37,229
--------- --------- --------- ---------
Total Operating Expenses 146,504 223,429 680,751 671,423
--------- --------- --------- ---------
OPERATING INCOME 7,170 19,686 47,680 78,463
--------- --------- --------- ---------
OTHER INCOME AND DEDUCTIONS
Allowance for Equity Funds
Used During Construction 148 4 429 -
Federal / State Income Tax
- Credit 26,065 (663) 24,381 (986)
Other - Net (7,395) 2,007 11,100 10,626
--------- --------- --------- ---------
Total Other Income 18,818 1,348 35,910 9,640
--------- --------- --------- ---------
INCOME BEFORE INTEREST CHARGES 25,988 21,034 83,590 88,103
--------- --------- --------- ---------
INTEREST CHARGES
Interest on Debt 2,468 6,167 15,657 24,206
Other 3,049 3,776 14,187 10,473
Allowance for Borrowed Funds
Used During Construction (97) (252) (319) (779)
--------- --------- --------- ---------
Total Interest Charges 5,420 9,691 29,525 33,900
--------- --------- --------- ---------
PREFERRED STOCK DIVIDENDS OF
CENTRAL HUDSON 807 807 3,230 3,230
--------- --------- --------- ---------
NET INCOME 19,761 10,536 50,835 50,973
DIVIDENDS DECLARED ON COMMON
STOCK 8,835 8,835 35,342 35,945
--------- --------- --------- ---------
AMOUNT RETAINED IN THE BUSINESS $10,926 $1,701 $15,493 $15,028
========= ========= ========= =========
Average Shares of Common Stock
Outstanding (000s) 16,362 16,486 16,362 16,716
========= ========= ========= =========
Earnings Per Share - (Basic
and Diluted) $1.21 $.64 $3.11 $3.05
========= ========= ========= =========
CH ENERGY GROUP, INC.
CONSOLIDATED BALANCE SHEET
December 31, December 31,
2001(1) 2000(2)
---------------------------------
ASSETS (Thousands of Dollars)
UTILITY PLANT
Utility Plant $862,628 $1,595,900
Less Accumulated Depreciation 354,010 708,930
-------------- -------------
Net Utility Plant 508,618 886,970
Construction Work in Progress 53,139 43,882
-------------- -------------
561,757 930,852
-------------- -------------
OTHER PROPERTY AND INVESTMENTS 133,245 129,570
-------------- -------------
INTANGIBLE ASSETS 79,587 68,458
-------------- -------------
CURRENT ASSETS
Cash and Cash Equivalents 132,395 28,318
Accounts Receivable from Customers 61,540 109,403
Materials & Supplies 18,402 30,629
Special Deposits and Prepayments 53,582 21,608
Other 20,733 25,103
-------------- -------------
286,652 215,061
-------------- -------------
DEFERRED CHARGES AND OTHER ASSETS 127,401 187,032
-------------- -------------
TOTAL $1,188,642 $1,530,973
============== =============
CAPITALIZATION and LIABILITIES
CAPITALIZATION
Common Equity(3) $496,309 $480,742
Cumulative Preferred Stock:
Not subject to mandatory redemption 21,030 21,030
Subject to mandatory redemption 35,000 35,000
Long-term Debt 216,124 320,369
-------------- -------------
768,463 857,141
-------------- -------------
CURRENT LIABILITIES
Current Maturities of Long-term Debt 20,000 62,610
Notes Payable 250 165,000
Accounts Payable 62,535 63,845
Accrued Interest 2,538 7,256
Dividends Payable 9,643 9,643
Other 20,477 20,201
-------------- -------------
115,443 328,555
-------------- -------------
DEFERRED CREDITS AND OTHER LIABILITIES 283,376 150,449
-------------- -------------
ACCUMULATED DEFERRED INCOME TAX (NET) 21,360 194,828
-------------- -------------
TOTAL $1,188,642 $1,530,973
============== =============
(1) Audited.
(2) Subject to explanations contained in the
Annual Report of the Company for 2000.
(3) Shares outstanding at Dec. 31, 2001 = 16,362,087.
Shares outstanding at Dec. 31, 2000 = 16,362,087.
Selected Financial Information
3 Months Ended December 31,
---------------------------------
2001 2000 % Variation
------ ------ -----------
CENTRAL HUDSON GAS & ELECTRIC CORP.
Sales of Electricity (Mwh): (a)
Residential 410,880 410,953 -
Commercial 446,043 434,237 3
Industrial 315,689 322,284 (2)
Unbilled and Other 12,143 16,449 (26)
--------- --------- -------
Total Own Territory 1,184,755 1,183,923 -
========= ========= =======
Sales of Gas (Mcf.): (a)
Residential 798,440 965,888 (17)
Commercial 1,086,060 1,314,584 (17)
Industrial 149,858 203,417 (26)
Unbilled and Other 216,538 348,209 (38)
--------- --------- -------
Total Firm Sales 2,250,896 2,832,098 (21)
Interruptible Sales 1,653,357 1,176,885 40
--------- --------- -------
Total Own Territory 3,904,253 4,008,983 (3)
========= ========= =======
(a) Includes volumes related to Electric
or Gas Energy Delivery Services.
Cooling Degree Days:
Actual in Period 3 - -
Heating Degree Days:
Billing Cycle 951 1,210 (21)
Actual in Period 1,808 2,403 (25)
Electric Output For Own Territory (Mwh.):
Generated 69,029 930,781 (93)
Purchased 1,223,896 320,371 282
--------- --------- -----
Total 1,292,925 1,251,152 3
========= ========= =====
Gas Send-out Firm Customers (Mcf.) 2,653,016 3,601,130 (26)
========= ========= =====
CH ENERGY GROUP, INC.
Earnings Per Share $1.21 $0.64 89
Dividends Declared Per Share $0.54 $0.54 -
Book Value Per Share
Retained Earnings (000s)
Common Equity Ratio (%)
12 Months Ended December 31,
-------------------------------
2001 2000 % Variation
------ ------ -----------
CENTRAL HUDSON GAS & ELECTRIC CORP.
Sales of Electricity (Mwh): (a)
Residential 1,808,692 1,712,848 6
Commercial 1,859,285 1,768,926 5
Industrial 1,308,638 1,311,125 -
Unbilled and Other 35,232 37,530 (6)
--------- --------- -------
Total Own Territory 5,011,847 4,830,429 4
========= ========= =======
Sales of Gas (Mcf.): (a)
Residential 4,876,136 4,749,929 3
Commercial 5,271,383 5,113,390 3
Industrial 699,054 759,873 (8)
Unbilled and Other (63,392) 216,585 (129)
--------- --------- -------
Total Firm Sales 10,783,181 10,839,777 (1)
Interruptible Sales 4,675,455 4,866,055 (4)
--------- --------- -------
Total Own Territory 15,458,636 15,705,832 (2)
========== ========== =======
(a) Includes volumes related to Electric
or Gas Energy Delivery Services.
Cooling Degree Days:
Actual in Period 674 554 22
Heating Degree Days:
Billing Cycle 6,078 5,954 2
Actual in Period 5,720 6,240 (8)
Electric Output For Own Territory (Mwh.):
Generated 828,754 3,350,862 (75)
Purchased 4,530,885 1,679,662 170
--------- --------- -------
Total 5,359,639 5,030,524 7
========= ========= =======
Gas Send-out Firm Customers (Mcf.) 9,726,267 10,485,122 (7)
========= ========== =======
CH ENERGY GROUP, INC.
Earnings Per Share $3.11 $3.05 2
Dividends Declared Per Share $2.16 $2.16 -
Dec. 31, Dec. 31,
2001 2000 % Variation
-------- -------- ----------
Book Value Per Share $30.33 $29.38 3
Retained Earnings (000s) $163,317 $147,824 10
Common Equity Ratio (%) 62.9% 44.3% 42
C H Energy Group, Inc.
Selected Financial Indices
Calendar Year 2001 vs Calendar Year 2000
Calendar Calendar
Year Year
2001 2000
------------- ------------
Earnings Per Share $3.11 $3.05
Earned Return on Common Equity (Per Books) 10.35% 10.39%
Pretax Coverage of Total
Interest Charges, excluding AFDC 2.46 x 3.11 x
Dividends Declared $2.16 $2.16
Pay-out Ratio 69.5% 70.8%
Percent of Construction Expenditures
Financed from Internal Funds 100% 100%
Common Equity Ratio 62.9% 44.3%
Retained Earnings ($000) $163,317 $147,824
Book Value Per Share (End of Period) $30.33 $29.38
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