CH Energy Group Posts First-Quarter 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)--April 24, 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 first-quarter earnings of $1.19 per share, a 6 percent increase above the $1.12 earned in the first quarter of 2001. Two major factors were of importance during the quarter: First, weather that was markedly milder than normal depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. revenues. When compared to the first quarter of 2001, electric sales decreased 4 percent and natural gas sales fell by 17 percent during a three-month period that featured record warm temperatures in 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. . This effect was partially offset by management interventions to reduce expenses and by a weather derivative Weather Derivative An instrument used by companies to hedge against the risk of weather-related losses. The investor who sells a weather derivative agrees to bear this risk for a premium. If nothing happens, the investor makes a profit. contract. Second, income was recognized following demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. of insurance companies through which the Company provides employee benefits. "We managed to partially offset the impacts of a record-setting warm winter by managing expenses and by also recording gains from weather derivative contracts that we'd we'd 1. Contraction of we had. 2. Contraction of we should. 3. Contraction of we would. we'd have ~would entered as a hedge against variations in heating degree days Heating degree day (HDD) and cooling degree day (CDD) are quantitative indices demonstrated to reflect demand for energy to heat or cool houses and businesses. These indices are derived from daily temperature observations and power demand. , such as occurred this past winter," explained 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. "In all, we were quite pleased with our ability to deal with the potentially negative impact of the first quarter's extremely mild winter weather through our proactive approach to managing our business." Mild weather significantly depressed sales in the Company's competitive oil distribution business units, where earnings were 23 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. in the first quarter of 2002, versus 30 cents in the first quarter of 2001. "In late 2001 we expanded Griffith Griffith, town (1990 pop. 17,916), Lake co., extreme NW Ind.; inc. 1904. It is primarily a residential town in the Chicago metropolitan area. Manufactures include metal products, chemicals, and electronic equipment. Energy Services by nearly 30 per cent through acquisitions of energy service, and fuel oil- and propane-distribution companies. The integration of these acquisitions is under way, and we expect increased profitability through revenue and expense synergies, as well as productivity improvements, in the near future," Ganci said. He also noted that the sale of CH Resources, 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. of 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. Energy Services, to WPS See Windows Printing System and Workplace Shell. (unit) wps - (Obsolete) Words per second (mostly used for Telex and TWX transmission). Power Development for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $61 million, continues to move ahead; the closing is expected to occur during the second quarter of 2002. Another item of note during the quarter was the prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of contractual obligations resulting from the sale of a utility electric generating unit. In November November: see month. 2001, subsidiary Central Hudson Gas & Electric Corporation sold its 9 percent interest in the Nine Mile 2 Plant to an affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. of Constellation Energy Constellation Energy (NYSE: CEG), headquartered in Baltimore, Maryland, generates, trades, supplies, and distributes energy. The company operates over 35 power plants in 11 states (mainly Maryland, Pennsylvania, New York, West Virginia, and California) under its operating . Central Hudson received $28.4 million in cash at closing and was to receive the balance of $29 million, plus interest, in five annual installments under a promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. . In April 2002, Constellation Constellation, ship Constellation (kŏnstĭlā`shən), U.S. frigate, launched in 1797. It was named by President Washington for the constellation of 15 stars in the U.S. flag of that time. prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. the note in the amount of $29
million.Based on the impact of the warm winter and the loss of interest income resulting from the prepayment of the note by Constellation, CH Energy Group now expects its 2002 earnings per share will be in the range of approximately $2.50 - $2.65 versus its original 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. of $2.70 - $2.85. The revised earnings-per-share range is comprised of the following estimated projections by business unit: Central Hudson Gas & Electric Corporation: $1.90 - $2.00; Central Hudson Energy Services, Inc.: 20 cents to 30 cents, plus a gain from the sale of CH Resources, Inc. of 10 cents to 15 cents; and CH Energy Group, Inc.: 25 cents to 30 cents. About CH Energy Group, Inc: CH Energy Group, Inc. is a family of companies seizing new opportunities in the competitive energy marketplace through two primary subsidiaries: Central Hudson Gas & Electric Corporation and Central Hudson Energy Services, Inc. Central Hudson Gas & Electric Corporation 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 gas utility serving approximately 625,000 people 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 Valley. Central Hudson Energy Services, Inc. is a family of competitive businesses supplying natural gas, fuel oil, electricity and 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;. - as well as a full menu of energy services - to customers throughout the Northeast. The Corporation is headquartered in Poughkeepsie, New York, and had 2001 revenues of $729 million. CH Energy Group, Inc. management will conduct a conference call regarding first-quarter earnings at 4:00 p.m. E.S.T. today. Participants should dial 1-800-553-0288 and refer to CH Energy Group. The call will be available for replay from 11:00 p.m. until 12:59 p.m. on May 1 by dialing 1-800-475-6701 and inputting access code 635060. 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 Statements included in this press 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 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; 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; 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 ongoing development of air quality regulations and industrial waste remediation requirements.
CH Energy Group, Inc. announces the following operating results
for the periods indicated:
3 Months Ended March 31 2002 2001
---- ----
Operating Revenues (1) $197,138,000 $242,509,000
Net Income $ 19,442,000 $ 18,310,000
Basic Earnings Per Share $ 1.19 $ 1.12
Average Shares Outstanding 16,362,000 16,362,000
12 Months Ended March 31 2002 2001
---- ----
Operating Revenues (1) $683,061,000 $814,446,000
Net Income $ 51,967,000 $ 51,169,000
Earnings Per Share $ 3.18 $ 3.08
Average Shares Outstanding 16,362,000 16,591,000
(1) Includes energy service charges/credits
APPENDIX
Highlights Relative to Prior Year
---------------------------------
2002 More
3 Months Ended March 31: 2002(1) 2001(1) (Less) than 2001
------------ ------------ ----------------
Operating Revenues(2) $197,138,000 $242,509,000 $ (45,371,000)
Income Available for
Common Stock:
From Operations $ 17,414,000 $ 18,310,000 $( 896,000)
From Non-recurring
Items 2,028,000 - 2,028,000
------------ ------------ ----------------
Total $ 19,442,000 $ 18,310,000 $ 1,132,000
Earnings per Share from:
Operations $ 1.07 $ 1.12 $ (.05)
Non-recurring Items .12 - .12
------------ ------------ ----------------
Earnings Per Share of
Common Stock $ 1.19 $ 1.12 $ .07
Average Shares
Outstanding 16,362,000 16,362,000
(1) Unaudited
(2) Includes energy service charges/credits
Earnings per share from CH Energy Group, Inc. (Company) operations decreased $.05 per share due primarily to the following: - Down $.11 due to a decrease in Central Hudson's (CHG&E) gas net operating revenues (net of the cost of gas and revenue taxes) due to a reduction in firm gas sales to residential, commercial and industrial customers. The decrease results largely from warmer than normal weather reflective of a reduction in actual billing heating degree-days which were 21% below last year and 19% lower than normal. - Down $.08 due to a reduction in interest income due to lower cash balances. The reduction in interest income was partially offset by a reduction in interest charges resulting from the redemption and repurchase of a number of long-term debt obligations in 2001 using proceeds from the sale of CHG&E's fossil generation plant and its interest in Nine Mile Plant 2 (NMP-2). - Down $.07 due to the net effect of regulatory actions occurring in 2001 related to the sale of CHG&E's fossil generation plants and its interest in NMP-2; specifically, a reduction in rate base and the recognition of net income for shareholders under a prior regulatory agreement. - Down $.06 due to a reduction in earnings from Central Hudson Energy Services, Inc. (Services) the Company's unregulated affiliate. The decrease is primarily attributable to lower sales by its oil distribution subsidiaries resulting from the milder weather. - Up $.11 due to an increase in CHG&E's electric net operating revenues (net of the cost of fuel, purchased electricity and revenue taxes) largely due to a significant decrease in revenues deferred under CHG&E's excess earnings provisions. This increase was partially offset by a reduction in own territory sales to residential, commercial and industrial customers due to the milder weather and the elimination of the amortization of rate moderation credits. - Up $.10 due to a reduction in other operating expenses of CHG&E, primarily due to a decrease in labor costs. - Up $.04 due to the recognition of a gain on a weather derivative contract. - Up $.02 due to the net effect of various other CHG&E items including income taxes and increased depreciation on CHG&E's remaining plant assets. Earnings per share increased $.12 from non-recurring items. The increase results from income recorded for the receipt of stock related to the demutualization of certain insurance companies through which the Company provided employee benefits. First Quarter Results of Operations CH Energy Group, Inc. First quarter earnings for CH Energy Group, Inc. increased by $.07 from $1.12 per share in 2001 to $1.19 per share in 2002. The financial results reflect a decrease in earnings from operations resulting from lower electric and gas sales due to the milder weather; however, it was offset by the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. effect of a significant reduction in revenues deferred under CHG&E's excess earnings provision. Earnings were also enhanced by the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. recording of income related to the receipt of stock from the demutualization of certain insurance companies and additionally, by a reduction in labor costs due to greater emphasis on capital projects to improve system reliability. Other Income and Deductions increased $2.6 million as compared to last year due primarily to income recorded for the receipt of stock from the demutualization of certain insurance companies and the recognition of a gain related to a weather derivative contract. These increases were partially offset by a reduction in interest income earned on proceeds from 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. generation plants. Interest charges decreased $4.7 million due largely to the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. and 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. of a number of CHG&E's 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. obligations. This debt was eliminated utilizing a portion of the proceeds from the sale of its fossil generation plants. The reduction in interest charges also reflects the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of a revolving credit agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. balance in the first quarter of 2001. 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, decreased 4% in the first quarter of 2002 as compared to the first quarter of 2001. Sales to residential and commercial customers decreased 7% and 2%, respectively. The decrease in sales is due to the warmer than normal weather as evidenced by the 21% decrease in billing heating degree-days. Sales to industrial customers decreased by 2%. Utility sales of natural gas to firm CHG&E customers, plus transportation of gas supplied by others, decreased 17% in the first quarter as compared to the prior year. Residential and commercial sales, largely 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, decreased 19% and 17%, respectively, primarily as a result of the milder weather. Industrial sales decreased by 18% due primarily to decreased usage. Interruptible sales increased 56% due to increased usage by commercial and industrial customers opting to burn natural gas for economic reasons. Utility electric and gas 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. decreased $25.5 million (15.1%) from $168.9 million in 2001 to $143.4 million in 2002. Electric revenues decreased $13.8 million (11.9%) and gas revenues decreased $11.7 million (21.9%). The reduction in total electric revenues is due primarily to 1) the change in rates resulting from the sale of CHG&E's fossil plants and its interest in NMP-2; 2) a decrease in sales for resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. revenues and 3) a reduction in sales to residential, commercial and industrial customers due to the milder weather. The reduction in gas revenues is due largely to decreased sales to the same customer classes, also resulting from the milder weather. Total utility 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. decreased $21.5 million (14.4%) from $149.4 million in 2001 to $127.9 in 2002. The decrease in expense primarily reflects the effect of the sale of CHG&E's fossil generation plants and its interest in NMP-2. The decrease in expenses also reflects a reduction in purchased natural gas costs and labor costs. The cost of natural gas is down due to lower prices and a decrease in gas sales due to the milder weather, while labor costs are reduced due to a greater emphasis on capital projects to improve system reliability. Partially offsetting the reduction is a $16.6 million increase in the cost of purchased electricity, which is largely offset by a reduction of $12.9 million for fuel used in electric generation. The shift in costs reflects the change from satisfying load requirements with own generation to market supply due to the sale of the plants. Although electric sales are down because of the milder weather, the net cost of purchased electricity and fuel used in electric generation has increased because the cost of purchased electricity also includes the fixed and variable production costs of the generating plants supplying the power. Central Hudson Energy Services, Inc. Revenues for Services decreased $19.9 million from $73.7 million in 2001 to $53.8 million in 2002. The reduction in revenues primarily reflects a decrease in sales ($13.3 million) by Services' oil distribution companies due to warmer than normal weather. The decrease also reflects the exclusion exclusion /ex·clu·sion/ (eks-kloo´zhun) 1. a shutting out or elimination. 2. surgical isolation of a part, as of a segment of intestine, without removal from the body. of revenues ($5.8 million), for the quarter ended March 2002, related to discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for Services' electric generation subsidiary, CH Resources, Inc., whose sale is pending. Operating expenses for Services decreased $17.9 million from $68.0 million in 2001 to $50.1 million in 2002. Operating expenses are primarily the cost of petroleum and natural gas, which decreased $12.2 million due primarily to lower sales by the oil distribution companies as a result of the milder weather. The reduction in operating expenses also reflects the exclusion of expenses ($5.6 million), for the quarter ended March 2002, related to discontinued operations. Depreciation and amortization expense decreased $734,000 primarily related to a change in accounting principle regarding goodwill. CH Energy Group, Inc. 12 Months Ended March 31, 2002 Relative to the Prior Year Earnings per share increased $.10 for the 12 months ended March 31, 2002 as compared to the 12 months ended March 31, 2001. The increase is primarily due to higher utility electric net revenues resulting from a slight increase in sales to residential and commercial customers and a significant decrease in revenues deferred under CHG&E's excess earnings provision; an increase in interest income earned largely on the proceeds available from the sale of CHG&E's fossil generation plants and its interest in NMP-2; a reduction in interest charges from the redemption and repurchase of a number of CHG&E's long-term debt obligations utilizing sale proceeds; and, income recorded for the receipt of stock from the demutualization of certain insurance companies. The increase in earnings was partially offset by the net effect of several regulatory actions relating to the sale of CHG&E's fossil generation plants in January January: see month. 2001 and the sale of its interest in NMP-2 in November 2001. They include a loss in earnings related to the reduction in rate base for the plants sold; an 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. contribution to CHG&E's Customer Benefit Account; the recognition of favorable tax benefits related to the sale of the plants; and the recognition of net income for shareholders under a prior regulatory agreement. The financial results for the 12 months also reflect a reduction in earnings from the operations of Services due primarily to losses incurred by its generating plants prior to their discontinued operations in December December: see month. 2001 and depressed sales of its oil distribution subsidiaries due to warmer than normal weather. Billing heating degree-days were 14% lower than the prior 12 months and 14% below normal. The warmer weather also resulted in a reduction of utility gas net revenues, as evidenced by a decrease in sales to residential, commercial and industrial customers. The Company remains in a strong financial position. At March 31, 2002, the Company had $199.6 million in cash and cash equivalents, $20.0 million of current maturities of long-term debt and a nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. amount of short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. outstanding. 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 12 Months Ended
March 31, March 31,
------------------ ------------------
2002 2001 2002 2001
-------- -------- -------- --------
(Thousands of (Thousands of
Dollars) Dollars)
OPERATING REVENUES
Electric $101,486 $115,255 $414,648 $528,935
Gas 41,862 53,613 98,966 119,812
Unregulated Affiliate 53,790 73,641 169,447 165,699
-------- -------- -------- --------
Total Operating Revenues 197,138 242,509 683,061 814,446
-------- -------- -------- --------
OPERATING EXPENSES
Operations - Fuel, Purchased
Electric, Purchased Gas and
Purchased Petroleum 116,460 135,517 391,380 418,841
Other Exp. of Operation -
Regulated Activities 20,781 31,307 96,225 136,859
Other Exp. of Operation -
Unregulated Affiliate
Activities 12,910 14,368 55,024 38,124
Depreciation and Amortization 7,683 10,349 32,971 49,313
Operating Taxes 8,890 14,939 44,353 53,018
Federal / State Income Tax 12,296 11,683 21,656 39,767
-------- -------- -------- --------
Total Operating Expenses 179,020 218,163 641,609 735,922
-------- -------- -------- --------
OPERATING INCOME 18,118 24,346 41,452 78,524
-------- -------- -------- --------
OTHER INCOME AND DEDUCTIONS
Allowance for Equity Funds
Used During Construction 106 81 454 81
Federal / State Income Tax -
Credit (1,114) (1,352) 24,620 (2,287)
Other - Net 8,815 6,431 13,484 14,400
-------- -------- -------- --------
Total Other Income and
Deductions 7,807 5,160 38,558 12,194
-------- -------- -------- --------
INCOME BEFORE INTEREST CHARGES 25,925 29,506 80,010 90,718
-------- -------- -------- --------
INTEREST CHARGES
Interest on Debt 2,332 5,918 12,071 24,218
Other 3,400 4,535 13,053 12,792
Allowance for Borrowed Funds
Used During Construction (56) (64) (311) (691)
-------- -------- -------- --------
Total Interest Charges 5,676 10,389 24,813 36,319
-------- -------- -------- --------
PREFERRED STOCK DIVIDENDS OF
CENTRAL HUDSON 807 807 3,230 3,230
-------- -------- -------- --------
NET INCOME 19,442 18,310 51,967 51,169
DIVIDENDS DECLARED ON COMMON
STOCK 8,835 8,835 35,342 35,683
-------- -------- -------- --------
AMOUNT RETAINED IN THE
BUSINESS $ 10,607 $ 9,475 $ 16,625 $ 15,486
======== ======== ======== ========
Average Shares of Common Stock
Outstanding (000s) 16,362 16,362 16,362 16,591
======== ======== ======== ========
Earnings Per Share - (Basic
and Diluted) $ 1.19 $ 1.12 $ 3.18 $ 3.08
======== ======== ======== ========
CH ENERGY GROUP, INC.
CONSOLIDATED BALANCE SHEET
March 31, December 31,
2002 2001(1)(2)
-----------------------------
ASSETS (Thousands of Dollars)
UTILITY PLANT
Utility Plant $ 870,573 $ 862,628
Less Accumulated Depreciation 359,825 354,010
---------- ----------
Net Utility Plant 510,748 508,618
Construction Work in Progress 57,351 53,139
---------- ----------
568,099 561,757
---------- ----------
OTHER PROPERTY AND INVESTMENTS 136,606 133,245
---------- ----------
INTANGIBLE ASSETS 78,846 79,587
---------- ----------
CURRENT ASSETS
Cash and Cash Equivalents 199,592 132,395
Accounts Receivable from Customers 68,077 61,540
Materials & Supplies 17,577 18,402
Fair Value of Derivative Instruments 20,473 16,661
Special Deposits and Prepayments 43,915 51,918
Other 45,225 20,733
---------- ----------
394,859 301,649
---------- ----------
DEFERRED CHARGES AND OTHER ASSETS 95,344 112,404
---------- ----------
TOTAL $1,273,754 $1,188,642
========== ==========
CAPITALIZATION and LIABILITIES
CAPITALIZATION
Common Equity(3) $ 506,973 $ 496,309
Cumulative Preferred Stock:
Not subject to mandatory redemption 21,030 21,030
Subject to mandatory redemption 35,000 35,000
Long-term Debt 285,124 216,124
---------- ----------
848,127 768,463
---------- ----------
CURRENT LIABILITIES
Current Maturities of Long-term Debt 20,000 20,000
Notes Payable 250 250
Accounts Payable 39,809 41,061
Accrued Interest 3,038 2,538
Dividends Payable 9,643 9,643
Other 33,059 37,714
---------- ----------
105,799 111,206
---------- ----------
DEFERRED CREDITS AND OTHER LIABILITIES 294,273 287,613
---------- ----------
ACCUMULATED DEFERRED INCOME TAX (NET) 25,555 21,360
---------- ----------
TOTAL $1,273,754 $1,188,642
========== ==========
(1) Audited.
(2) Subject to explanations contained in the Annual Report of the
Company for 2001.
(3) Shares outstanding at Mar. 31, 2002 = 16,362,087.
Shares outstanding at Dec. 31, 2001 = 16,362,087.
Selected Financial Information
3 Months Ended March 31,
------------------------------------
2002 2001 % Variation
---------- ---------- -----------
CENTRAL HUDSON GAS & ELECTRIC
CORP.
Sales of Electricity (Mwh): *
Residential 496,062 532,858 (7)
Commercial 467,591 477,053 (2)
Industrial 293,238 298,257 (2)
Unbilled and Other 9,349 13,048 (28)
---------- ---------- -----------
Total Own Territory 1,266,240 1,321,216 (4)
========== ========== ===========
Sales of Gas (Mcf.): *
Residential 2,031,799 2,509,277 (19)
Commercial 2,141,161 2,584,452 (17)
Industrial 229,129 279,122 (18)
Unbilled and Other 80,810 52,121 55
---------- ---------- -----------
Total Firm Sales 4,482,899 5,424,972 (17)
Interruptible Sales 1,246,884 800,155 56
---------- ---------- -----------
Total Own Territory 5,729,783 6,225,127 (8)
========== ========== ===========
* Includes volumes related
to Electric or Gas Energy
Delivery Services.
Cooling Degree Days:
Actual in Period - - -
Heating Degree Days:
Billing Cycle 2,590 3,295 (21)
Actual in Period 2,629 3,123 (16)
Electric Output For Own
Territory (Mwh.):
Generated 17,927 421,226 (96)
Purchased 1,264,943 890,717 42
---------- ---------- -----------
Total 1,282,870 1,311,943 (2)
========== ========== ===========
Gas Send-out Firm Customers
(Mcf.) 3,855,449 4,968,160 (22)
========== ========== ===========
CH ENERGY GROUP, INC.
Earnings Per Share $1.19 $1.12 6
Dividends Declared Per
Share $0.54 $0.54 -
12 Months Ended March 31,
------------------------------------
2002 2001 % Variation
---------- ---------- -----------
CENTRAL HUDSON GAS & ELECTRIC
CORP.
Sales of Electricity (Mwh): *
Residential 1,771,896 1,751,465 1
Commercial 1,849,822 1,791,374 3
Industrial 1,303,619 1,310,444 (1)
Unbilled and Other 31,536 41,957 (25)
---------- ---------- -----------
Total Own Territory 4,956,873 4,895,240 1
========== ========== ===========
Sales of Gas (Mcf.): *
Residential 4,398,657 4,937,299 (11)
Commercial 4,828,091 5,421,085 (11)
Industrial 649,062 745,306 (13)
Unbilled and Other (34,704) 231,499 (115)
---------- ---------- -----------
Total Firm Sales 9,841,106 11,335,189 (13)
Interruptible Sales 5,122,185 4,181,217 23
---------- ---------- -----------
Total Own Territory 14,963,291 15,516,406 (4)
========== ========== ===========
* Includes volumes related
to Electric or Gas Energy
Delivery Services.
Cooling Degree Days:
Actual in Period 674 554 22
Heating Degree Days:
Billing Cycle 5,373 6,261 (14)
Actual in Period 5,226 6,437 (19)
Electric Output For Own
Territory (Mwh.):
Generated 425,454 3,022,614 (86)
Purchased 4,905,112 2,050,399 139
---------- ---------- -----------
Total 5,330,566 5,073,013 5
========== ========== ===========
Gas Send-out Firm Customers
(Mcf.) 8,613,556 10,866,842 (21)
========== ========== ===========
CH ENERGY GROUP, INC.
Earnings Per Share $3.18 $3.08 3
Dividends Declared Per
Share $2.16 $2.16 -
March 31, Dec. 31,
2002 2001 %Variation
---------- ---------- -----------
Book Value Per Share $ 30.98 $ 30.33 2
Retained Earnings (000s) $ 173,923 $ 163,317 6
Common Equity Ratio (%) 58.4% 62.9% (7)
C H Energy Group, Inc.
Selected Financial Indices
12 Months Ended March 2002 vs Calendar Year 2001
12 Months Calendar
Ended Year
March 2002 2001
-------- --------
Earnings Per Share $ 3.18 $ 3.11
Earned Return on Common Equity (Per Books) 10.51% 10.35%
Pretax Coverage of Total
Interest Charges, excluding AFDC 2.64 x 2.46 x
Dividends Declared $ 2.16 $ 2.16
Pay-out Ratio 67.9% 69.5%
Percent of Construction Expenditures
Financed from Internal Funds 89.4% 100%
Common Equity Ratio 58.4% 62.9%
Retained Earnings ($000) $173,923 $163,317
Book Value Per Share (End of Period) $ 30.98 $ 30.33
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