CH Energy Group, Inc. Posts Quarterly Earnings Increase.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)--July 21, 2003 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) ) announced today that earnings for the second quarter of 2003 were 48 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. , a 55-percent increase over the 31 cents earned in the second quarter of 2002 (that included a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. net gain of 21 cents per share from the sale of its unregulated Adj. 1. unregulated - not regulated; not subject to rule or discipline; "unregulated off-shore fishing" regulated - controlled or governed according to rule or principle or law; "well regulated industries"; "houses with regulated temperature" 2. power-generation subsidiary CH Resources, Inc.). Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings were $1.75 per share, versus $1.50 for the same period in 2002, an increase of 16 percent. "We're we're Contraction of we are. we're we are very pleased with the strong results through the first half of this year, as we continued to reap the benefits of colder weather, growth in sales and customers, and on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" productivity gains. Our service territory has remained strong during these challenging economic times, and we have taken substantial actions so that the growth of the Company remains solid," reported 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. He noted that the recent federal policy change to limit the tax rate on dividends to 15 percent from the maximum current level of 38 percent has the effect of increasing the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. return to the Company's eligible shareholders. Ganci also said, "We look forward to prudently pru·dent adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. and productively redeploying our available capital to meet our earnings growth objectives," and added that CH Energy Group announced in June June: see month. that it has retained Commonwealth Energy Advisors to advise the Company on redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. of its available capital in non-regulated, energy-related assets. "We are seeking acquisitions that are at the lower end of the risk spectrum; assets that are currently operating, use proven technology, and have a stable customer base, such as electric generating plants and natural gas pipelines with contracts for their output." 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 (CHG&E) CHG&E's earnings for the second quarter of 2003 were 43 cents per share, a 26-cent-per-share increase over the weather-depressed, second-quarter 2002 earnings of 17 cents per share. Colder weather and customer growth led to overall increased sales of electricity and natural gas of 3 percent and 16 percent, respectively. Heating degree-days in the second quarter were 8 percent above normal. Year-to-date earnings were $1.35 per share, versus $1.05 for the same period in 2002, an increase of 28 percent. Central Hudson Enterprises Corporation (CHEC CHEC Children's Health Environmental Coalition CHEC Christian Home Educators of Colorado CHEC Commonwealth Human Ecology Council (UK) CHEC Coffs Harbour Education Campus ): CHEC's earnings for the second quarter of 2003 were a loss of 6 cents per share, as compared to a second-quarter 2002 operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of 13 cents per share that excludes a 21-cent-per-share gain from the sale (in the second quarter of 2002) of CH Resources, Inc., a power generating subsidiary. In the second quarter of 2003, earnings from operations were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by colder-than-normal weather in April and May; by acquisitions of fuel oil delivery companies made in 2002 and 2003; and by improved productivity. For the first six months of 2003, CHEC earnings were 27 cents per share versus 10 cents per share for the first six months of 2002 (again excluding the sale of CH Resources in 2002). "We have improved the operating performance of our fuel delivery companies by continuously focusing on process improvement and productivity. These efforts have already contributed to improved earnings and are expected to enhance the profitability of these businesses on an ongoing basis," explained 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, President and Chief Executive Officer. Investment Activities: During the second quarter, the Company liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. its remaining preferred share holdings, virtually all of its fixed income holdings, and a portion of its common stock holdings. The result of these liquidations was a realized gain Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. of 5 cents per share. The proceeds have been invested in highly rated, short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. financial securities with minimal principal risk. Earnings Projections for Remainder of Year: CH Energy Group believes its January January: see month. projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. for 2003 annual earnings of $2.55 - $2.75 is achievable, as are the projections for the business units of $2.15 - $2.30 for Central Hudson Gas & Electric Corporation (CHG&E); and between 30 cents - 50 cents per share from its investment portfolio and Central Hudson Enterprises Corporation (CHEC), its competitive fuel delivery subsidiary. About CH Energy Group: With more than 425,000 customers, CH Energy Group, Inc. is a family of companies seizing new opportunities in the energy marketplace through two primary subsidiaries: 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. transmission and distribution utility serving approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 345,000 customers in eight counties of 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's Mid-Hudson River Valley, delivering natural gas and electricity in a 2,600-square-mile service territory that extends from the suburbs of metropolitan New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. north to the Capital District at Albany Albany, town, Australia Albany (ăl`bənē), town (1996 pop. 14,590), Western Australia, SW Australia. It is a port on Princess Royal Harbour of King George Sound. The town has woolen mills and fish canneries. . Since deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. , Central Hudson has established a proven track record in providing its customers extremely competitive prices for energy delivery. Strengthened by relationships that stretch back 150 years with the communities of the Mid-Hudson Valley, Central Hudson is considered an industry leader in not only lowering costs but in also introducing innovative technology and service reliability improvements - all of which are focused on continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. increasing customer satisfaction. Central Hudson Enterprises Corporation (CHEC) is a family of competitive businesses delivering energy and related services to nearly 80,000 customers throughout the Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. . It incorporates business units that deliver fuel oil, 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 motor fuels, as well as a full menu of energy services, to customers in 11 states. Its regional footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. stretches from markets in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. to those of the Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. metropolitan area. Conference Call: Messrs. Ganci and Lant will conduct a conference call with analysts and investors to review financial results at 4:00 p.m. (ET) today (July July: see month. 21, 2003). Dial-in: 1-888-273-9890; Conference Name: "CH Energy Group." A digitized replay of the call will be available from 11:00 p.m. (ET) on July 21, 2003, until 11:59 p.m. (ET) on July 28, 2003, by dialing 1-800-475-6701 and entering access code #690707. In addition, consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge are available on the Company's website at www.CHEnergyGroup.com. 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. : Statements included in this press release, including its Appendix appendix, small, worm-shaped blind tube, about 3 in. (7.6 cm) long and 1-4 in. to 1 in. (.64–2.54 cm) thick, projecting from the cecum (part of the large intestine) on the right side of the lower abdominal cavity. , which are not historical in nature, are intended to be, and are hereby identified as, "forward-looking statements" 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 "anticipates," "believes," "projects," "intends," "estimates," "expects," "plans," 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, but are not limited to, weather; energy supply and demand; fuel prices, interest rates, potential future acquisitions, developments in the legislative, 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. and competitive environment and market risks; electric and gas industry 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). and cost recovery; the ability to obtain adequate and timely rate relief; changes in fuel supply or costs and the success of strategies to satisfy power requirements now that Central Hudson's This article is about the defunct chain of department stores. For the former parent company formed by the 1969 merger with Dayton's, see Target Corporation. Hudson's, or The J.L. electric generation has been sold; 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, particularly industrial waste site remediation requirements; and certain presently unknown or unforeseen factors, including, but not limited to, acts of terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. . CH Energy Group, Inc. announces the following operating results for the periods indicated:
3 Months Ended June 30 2003 2002
---- ----
Operating Revenues (1) $183,184,000 $152,805,000
Net Income $7,625,000 $5,098,000
Basic and Diluted Earnings Per Share $.48 $.31
Average Shares Outstanding 15,827,000 16,362,000
(1) Includes energy supply charges/credits
APPENDIX
Highlights Relative to Prior Year
---------------------------------
2003 More
3 Months Ended June 30: (Less) than
2003(1) 2002(1) 2002
------ ------ ----------
Operating Revenues(2) $183,184,000 $152,805,000 $ 30,379,000
Income Available for Common
Stock:
From Continuing Operations $ 7,625,000 $ 1,575,000 $ 6,050,000
Net Gain From Discontinued
Operations - 3,523,000 (3,523,000)
------------ ------------ ------------
Total $ 7,625,000 $ 5,098,000 $ 2,527,000
Earnings Per Share From:
Continuing Operations $ .48 $ .10 $ .38
Discontinued Operations
- Net - .21 (.21)
------------ ------------ ------------
Earnings Per Share
of Common Stock $ .48 $ .31 $ .17
Average Shares Outstanding 15,827,000 16,362,000
(1) Unaudited
(2) Includes energy service charges/credits
Earnings per share of CH Energy Group, Inc. increased $.17 per share due primarily to the following: CH Energy Group, Inc. (CHEG): + $.05 -- Up $.05 due to higher realized gains on marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has owned by CHEG. Central Hudson Gas & Electric Corp. (CHG&E): + $.26 -- Up $.28 due to an increase in electric net operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. (net of the cost of purchased electricity, fuel and revenue taxes) primarily due to a reduction in deferred revenues related to shared earnings. In the second quarter of 2002 shared earnings were recorded for the rate year ended June 30, 2002, whereas in 2003 the second quarter includes an estimate of shared earnings related to that quarter. Net revenues from sales also increased resulting primarily from the colder weather experienced from April through June and also, growth in the average number of residential and commercial customers. Actual billing heating-degree days in 2003 were 18% higher than last year and 8% above the normal level of billing heating-degree days. -- Up $.07 due to a decrease in interest charges and the effect of regulatory carrying charges Payments made to satisfy expenses incurred as a result of ownership of property, such as land taxes and mortgage payments. Disbursements paid to creditors, in addition to interest, for extending credit. Consumer Protection laws require full disclosure of all carrying charges. related primarily to the Customer Benefit Fund and pension costs. Partially offsetting the increase in earnings is a reduction in interest and dividend income largely reflecting a decrease in temporary cash investments and lower after-tax yields. -- Up $.04 due to an increase in the amortization of previously deferred shareholder benefits relating to the sale of CHG&E's fossil fossil, remains or imprints of plants or animals preserved from prehistoric times by the operation of natural conditions. Fossils are found in sedimentary rock, asphalt deposits, and coal and sometimes in amber and certain other materials. generating plants. -- Up $.03 due to an increase in gas net operating revenues (net of the cost of gas and revenue taxes) due to an increase in sales to residential and commercial customers, primarily heating customers. The increase in sales is largely due to the colder weather in April through June as noted above and from growth in the average number of customers. -- Up $.02 due to the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of CHEG's common stock repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program. -- Down $.11 due to an increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. spread over a number of areas including electric distribution operations and maintenance, customer services, uncollectible accounts Uncollectible account An account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay. , legal and special services, property and other insurance, and employee welfare expense. -- Down $.04 due to an increase in depreciation and property taxes on CHG&E's utility plant assets. -- Down $.03 due to the net effect of various other items including an increase in income taxes resulting from a decrease in tax depreciation. Central Hudson Enterprises Corp. (CHEC) - Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the : + $.07 -- Up $.12 due to an increase in net revenues from its fuel distribution subsidiaries, due to the colder weather and the impact of additional acquisitions of fuel distribution companies in the fourth quarter of 2002 and January 2003. -- Up $.04 due to reduced operating expenses from CHEC's other unregulated business activities. -- Down $.09 due primarily to increased operating expenses at the fuel distribution subsidiaries primarily due to the impact of the recent acquisitions and the colder weather. The earnings reduction was partially offset by a decrease in expenses due to improved productivity. Central Hudson Enterprises Corp. (CHEC) - Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. : - $.21 -- Down $.21 due primarily to the recording last year of a net gain (net of deferred operating losses) realized from the May 2002 sale of CH Resources, Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. . Second Quarter Results of Operations CH Energy Group, Inc. Other Income and Deductions for CHEG increased from $1.5 million in 2002 to $2.7 million in 2003 due to the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of most its portfolio of marketable securities. Central Hudson Gas & Electric Corp. Utility sales of electricity to full service customers within CHG&E's service territory, plus delivery of electricity supplied by others, increased 3% as compared to the quarter ended June 2002. Sales to residential customers increased 6% while sales to commercial customers increased 2%. Industrial sales increased 3%. The increase in sales was due largely to weather conditions that were colder than last year, which was below normal. Heating degree-days were 8% higher than normal and 18% higher than last year. Electric sales were also affected by some growth in the average number of residential, commercial and industrial customers. Utility sales of natural gas to firm CHG&E customers, plus transportation of gas supplied by others, increased 16% as compared to the prior year. Sales to residential and commercial customers, primarily space heating Space heating is the heating of a space, usually enclosed, such as a house or room. A space heater keeps the air and surroundings at a comfortable temperature for people or animals, or even plants in a greenhouse. sales, increased 22% and 18%, respectively, due to the colder weather. Sales also increased due to growth in the average number of residential and commercial customers, which increased by 1.3% and 1.2%, respectively. Industrial sales, representing approximately 5% to 6% of total firm sales, decreased 8%. Interruptible sales decreased 46% due largely to a reduction in the sale of natural gas for electric generation. Utility electric and gas operating revenues increased $20.5 million (16.7%) in total from $123.0 million in 2002 to $143.5 in 2003. Electric revenues increased $16.2 million (16.4%) due primarily to an increase in revenues for the recovery of electric supply costs and a reduction in amounts recorded, under the provisions of CHG&E's current rate agreement, for the deferral deferral - Waiting for quiet on the Ethernet. of revenues related to shared earnings and delivery revenues. Gas revenues increased by $4.3 million (17.8%) largely due to an increase in revenues for the recovery of gas supply costs and increased revenues from sales due to the colder weather. Total utility operating expenses increased $18.5 million (15.8%) from $116.5 million in 2002 to $135.0 in 2003. The increase in operating expenses largely results from an increase in purchased electricity and purchased natural gas expense. Purchased electricity costs increased $9.1 million (14.9%) due primarily to increased sales. Although total firm and interruptible gas sales decreased by 9%, natural gas expense rose by $3.9 million primarily reflecting an increase in the wholesale cost of natural gas. Other expenses of operation increased by $5.0 million and reflect an increase in costs related to CHG&E's electric reliability program as well as other program costs funded by the Customer Benefit Fund. Also reflected is an increase in uncollectible accounts expense and other operating costs operating costs npl → gastos mpl operacionales . Other Income and Deductions increased $648,000 due primarily to an increase in amortization of previously deferred shareholder benefits relating to the sale of CHG&E's fossil generating plants. Central Hudson Enterprises Corp. Revenues for CHEC increased $ 9.8 million from $ 29.9 million in 2002 to $39.7 million in 2003. The increase in revenues primarily reflects an increase in sales by CHEC's fuel distribution companies due to colder weather, including the impact of the acquisition of fuel distribution companies that occurred in the fourth quarter of 2002 and in January 2003. Heating degree-days were 27.1% higher than last year. Revenues also increased due primarily to higher retail fuel oil prices as a result of higher wholesale market prices in 2003. Operating expenses for CHEC increased $8.3 million from $31.8 million in 2002 to $40.1 million in 2003. Operating expenses are primarily the cost of petroleum and natural gas, which increased $ 7.1 million due primarily to higher sales by the fuel distribution companies as a result of the colder weather and the impact of new acquisitions. Petroleum and natural gas costs also increased due to higher wholesale market prices. Other operating expenses increased approximately $1.6 million, primarily because of a $1.1 million increase in distribution costs distribution costs distribute npl → Vertriebskosten pl and a $.8 million increase in income taxes. The increases are due to increased sales and the new acquisitions. The Company remains in a strong financial position. At June 30, 2003, the Company had $123.7 million in cash and cash equivalents and marketable securities of $20.4 million. In addition, its current obligations included $9.5 million of current maturities of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Please note that this report plus the consolidated financial statements are available on the Company's website at www.chenergygroup.com.
CH ENERGY GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
3 Months Ended
June 30,
------------------
2003 2002
------- -------
(Thousands of Dollars)
OPERATING REVENUES
Electric $114,709 $98,530
Natural Gas 28,760 24,404
Competitive Business Subsidiaries 39,715 29,871
-------- --------
Total Operating Revenues 183,184 152,805
-------- --------
OPERATING EXPENSES
Operations - Purchased Electric and Fuel
Used in Electric Generation, Purchased Gas
and Purchased Petroleum 115,045 95,462
Other Exp. of Operation - Regulated
Activities 26,950 21,920
Other Exp. of Operation - Competitive
Business Subsidiaries 13,217 12,605
Depreciation and Amortization 8,333 7,703
Operating Taxes 7,572 9,658
Federal and State Income Tax 3,944 947
-------- --------
Total Operating Expenses 175,061 148,295
-------- --------
OPERATING INCOME 8,123 4,510
-------- --------
OTHER INCOME AND DEDUCTIONS
Allowance for Equity Funds Used During
Construction 117 120
Federal and State Income Tax - Credit (1,347) (471)
Interest and Investment Income 5,706 3,691
Other - Net 866 738
-------- -------
Total Other Income and Deductions 5,342 4,078
-------- -------
INCOME BEFORE INTEREST CHARGES 13,465 8,588
-------- -------
INTEREST CHARGES
Interest on Debt 2,869 3,395
Other 2,622 3,231
Allowance for Borrowed Funds Used During
Construction (102) (64)
-------- -------
Total Interest Charges 5,389 6,562
-------- -------
Net Income from Continuing Operations 8,076 2,026
Net Loss from Discontinued Operations,
Net of Income Tax Benefit of $1,439 - (2,175)
Gain on Disposal of Discontinued Operations,
Net of Income Tax of ($6,671) - 5,698
PREFERRED STOCK DIVIDENDS OF CENTRAL HUDSON 451 451
-------- -------
NET INCOME 7,625 5,098
DIVIDENDS DECLARED ON COMMON STOCK 8,520 8,835
-------- -------
AMOUNT RETAINED IN THE BUSINESS ($895) ($3,737)
======== =======
Average Shares of Common Stock Outstanding
(000s) 15,827 16,362
======== =======
Earnings Per Share - (Basic and Diluted) $.48 $.31
======== =======
CH ENERGY GROUP, INC.
CONSOLIDATED BALANCE SHEET
June 30, December 31,
2003 2002 (1)(2)
---------------------
ASSETS (Thousands of Dollars)
UTILITY PLANT
Utility Plant $915,634 $895,608
Less Accumulated Depreciation 381,741 370,349
-------- --------
533,893 525,259
Construction Work in Progress 79,052 76,398
-------- --------
Net Utility Plant 612,945 601,657
-------- --------
OTHER PROPERTY AND PLANT 18,259 18,337
-------- --------
CURRENT ASSETS
Cash and Cash Equivalents 123,695 83,523
Accounts Receivable from Customers 70,213 60,978
Materials & Supplies 17,734 16,033
Fair Value of Derivative Instruments 5 2,747
Bond Defeasance Escrow 10,201 16,275
Special Deposits and Prepayments 19,658 28,466
Other 6,905 9,892
-------- --------
248,411 217,914
-------- --------
INVESTMENTS 28,474 95,786
-------- --------
DEFERRED CHARGES AND OTHER ASSETS 285,769 276,413
-------- --------
TOTAL $1,193,858 $1,210,107
========== ==========
CAPITALIZATION and LIABILITIES
CAPITALIZATION
Common Equity (3) $487,497 $486,915
Cumulative Preferred Stock:
Not subject to mandatory redemption 21,030 21,030
Subject to mandatory redemption 12,500 12,500
Long-term Debt 269,878 269,877
-------- --------
790,905 790,322
-------- --------
CURRENT LIABILITIES
Current Maturities of Long-term Debt 9,500 15,000
Accounts Payable 38,503 45,649
Accrued Interest 4,256 4,273
Dividends Payable 8,971 9,113
Fair Value of Derivative Instruments 2,718 -
Other 38,947 38,070
-------- --------
102,895 112,105
-------- --------
DEFERRED CREDITS AND OTHER LIABILITIES 237,492 251,910
-------- --------
ACCUMULATED DEFERRED INCOME TAX (NET) 62,566 55,770
-------- --------
TOTAL $1,193,858 $1,210,107
========== ==========
(1) Audited.
(2) Subject to explanations contained in the
Annual Report of the Company for 2002.
(3) Shares outstanding at June 30, 2003 = 15,777,800.
Shares outstanding at Dec. 31, 2002 = 16,064,600.
Selected Financial Information
3 Months Ended June 30,
----------------------
2003 2002 %Variation
---- ---- ----------
CENTRAL HUDSON GAS & ELECTRIC CORP.
-------------------------------------
Sales of Electricity (Mwh): (a)
Residential 429,451 406,029 6
Commercial 453,312 445,025 2
Industrial 362,278 352,179 3
Unbilled and Other (3,454) 1,289 (368)
------- --------- -----
Total Own Territory 1,241,587 1,204,522 3
========= ========= =====
Sales of Gas (Mcf.): (a)
Residential 1,384,333 1,139,159 22
Commercial 1,247,786 1,058,849 18
Industrial 121,879 132,393 (8)
Unbilled and Other (350,262) (263,483) (33)
--------- --------- -----
Total Firm Sales 2,403,736 2,066,918 16
Interruptible Sales 775,373 1,438,199 (46)
--------- --------- -----
Total Own Territory 3,179,109 3,505,117 (9)
========= ========= =====
(a) Includes volumes related to
Electric or Gas Energy Delivery
Services.
Cooling Degree Days:
Actual in Period 100 181 (45)
Heating Degree Days:
Billing Cycle 1,904 1,620 18
Actual in Period 878 772 14
Electric Output For Own Territory (Mwh.):
Generated 47,282 31,190 52
Purchased 1,242,474 1,257,648 (1)
--------- --------- -----
Total 1,289,756 1,288,838 -
========= ========= =====
Gas Send-out Firm Customers (Mcf.) 1,447,626 1,392,985 4
========= ========= =====
CH ENERGY GROUP, INC.
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Earnings Per Share $0.48 $0.31 55
Dividends Declared Per Share $0.54 $0.54 -
June 30, Dec. 31,
2003 2002 %Variation
------- ------- ----------
Book Value Per Share $30.90 $30.31 2
Retained Earnings (000s) $180,251 $169,503 6
Common Equity Ratio (%) 60.9% 60.5% 1
C H Energy Group, Inc.
Selected Financial Indices
12 Months Ended June 30, 2003 vs Calendar Year 2002
12 Months Calendar
Ended Year
June 30, 2003 2002
------------- --------
Earnings Per Share $2.77 $2.53
Earned Return on Common Equity (Per Books) 9.01% 8.22%
Pretax Coverage of Total Interest Charges,
excluding AFDC 3.50 x 3.10 x
Dividends Declared $2.16 $2.16
Pay-out Ratio 78.0% 85.4%
Percent of Cash Construction Expenditures
Financed from Internal Funds (1) 79.6% 93.3%
Common Equity Ratio 60.9% 60.5%
Retained Earnings ($000) $180,251 $169,503
Book Value Per Share (End of Period) $30.90 $30.31
(1) Internal funds used in this measurement exclude the pension
contribution of $32,000,000 made in September 2002.
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