CH Energy Group Posts Increased Earnings, Competitive Business Units Make Significant Contribution To Results.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 23, 2001 CH Energy Group, Inc. today announced first-quarter earnings of $1.12 per share, a 5 percent increase over the $1.07 earned in the first quarter of 2000. In addition, 30 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 earned in excess of a 10.6 percent electric return-on-equity cap and were deferred to provide future customer benefits -- the last such deferral deferral - Waiting for quiet on the Ethernet. allowed under terms of a 1998 regulatory agreement. The company's competitive business units contributed 28 cents per share, as compared to 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 results during the first quarter one year ago. Within the utility operations, electric sales grew by more than 5 percent and natural gas sales increased nearly 10 percent due to colder winter weather and strong economic growth within the utility's service territory. Those positive influences partially offset reduced utility earnings that resulted from the January January: see month. 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 the company's fossil-fuel generating plants as part of the state's 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. movement. "Two significant and very positive events occurred during the first quarter. First, we closed on the extremely successful sale of our Roseton and Danskammer plants, a sale that included a Transition Power Agreement to help stabilize stabilize See peg. the cost of energy supply for our customers for the next three years. Second, our competitive business units delivered on the high level of performance we projected for them," 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 and Chief Executive Officer. In particular, he noted that 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, the Maryland-based company purchased last November, benefited from strong sales and improved margins, demonstrating the type of immediate profitability that CH Energy Group had anticipated. Proceeds from the sale of the company's fossil-fuel units were more than sufficient to fully recover Central Hudson Gas & Electric Corporation's investment in the Nine Mile Point 2 Nuclear Plant. The sale of that 9 percent interest to 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. Nuclear continues to move forward, Ganci reported. "Importantly, we intend to further insulate in·su·late tr.v. in·su·lat·ed, in·su·lat·ing, in·su·lates 1. To cause to be in a detached or isolated position. See Synonyms at isolate. 2. our full-service electric customers from the volatility of the market through an agreement to purchase 90 percent of the electricity we currently receive from the plant for the next 10 years," Ganci said. "Our power purchase agreements will have substantial value during the critical transition years ahead while New York's electricity market matures." A portion of the after-tax proceeds of power plant sales will also be redeployed to accelerate the company's growth strategy. The company remains confident it can achieve the 2001 earnings projections of $3.25 per share that were announced in January of this year. 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 is a regulated electric and natural 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 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 more than 60,000 customers throughout the Northeast. The corporation had revenues of $750 million in 2000. CH Energy Group, Inc. management will conduct a conference call regarding first quarter earnings at 4:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. today. Participants should dial 1-800-450-0788 and reference CH Energy Group. 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
APPENDIX
Highlights Relative to Prior Year
2001 More
3 Months Ended March 31: 2001(1) 2000(1) (Less) than 2000
----- ----- -------------
Operating Revenues(2) $242,509,000 $177,950,000 $ 64,559,000
Income Available for
Common Stock $ 18,310,000 $ 18,114,000 $ 196,000
Earnings Per Share
of Common Stock $1.12 $1.07 $ .05
Average Shares Outstanding 16,362,000 16,860,000
(1) Unaudited
(2) Includes energy service charges/credits
CH Energy Group, Inc. (Company) achieved increased earnings per share of $.05 due primarily to the following:
-- Up $.03 due to the favorable effect of the Company's common stock repurchase
program in 2000.
-- Down $.30 due to a reduction in other revenues, primarily an increase in
revenues deferred in accordance with the excess earnings provision of CHG&E's
Settlement Agreement.
-- Down $.04 due to the net effect of various other items.
- reduction in net electric revenues - $.33
- increase in federal income tax due to reduced
tax depreciation and property tax deductions - .12
- reduction in depreciation expense + .22
- increase in interest income from investment of
cash proceeds + .17
- reduction in taxes other than income taxes,
primarily property taxes + .08
------
net variance + .02
-- Up $.03 due to the favorable effect of the Company's common stock repurchase
program in 2000.
-- Down $.30 due to a reduction in other revenues, primarily an increase in
revenues deferred in accordance with the excess earnings provision of CHG&E's
Settlement Agreement.
-- Down $.04 due to the net effect of various other items.
First Quarter Results of Operations CH Energy Group, Inc. First quarter earnings for CH Energy Group, Inc. increased by $.05 from $1.07 per share in 2000 to $1.12 per share in 2001. Earnings were reduced by the continued deferral of electric earnings in excess of a 10.6% return on equity cap, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with CHG&E's 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). Settlement Agreement with the PSC (Public Service Commission) Same as PUC. effective February 1998. A total of $8.25 million of electric revenues was deferred in the first quarter of 2001 as compared to $2.6 million in 2000, a reduction in earnings of $.20 per share when comparing the two quarters. The 5% increase in sales of electricity contributed to the increase in excess earnings. Other Income and Deductions increased $2.6 million as compared to last year largely due to income earned on the proceeds from the sale of CHG&E's fossil generating plants. Central Hudson Gas & Electric Corp. On January 30, 2001 CHG&E sold its Danskammer generating station and its interest in the Roseton generating station to Dynegy Power Corp (Dynegy). The sale of these plants had a significant impact on several items including electric 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. , depreciation expense, property taxes and income taxes, as discussed below. Utility sales of electricity to full service customers within CHG&E's service territory, plus delivery of electricity supplied by others, increased 5% in the first quarter of 2001 as compared to the same quarter in 2000. Sales to residential customers increased 8% and sales to commercial customers increased 5%. The increase in sales for both results largely from an increase in the average number of customers and colder weather. Sales to industrial customers remained relatively flat. Utility sales of firm natural gas to CHG&E customers, plus transportation of gas supplied by others, increased 10% in 2001 as compared to the prior year. Residential sales increased 8% while sales to commercial customers increased 14%. Colder weather, as evidenced by a 10% increase in heating degree-days and an increase in demand by 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. customers, contributed largely to the increase in these sales. Industrial sales decreased by 5% due to decreased usage by existing customers. Interruptible sales decreased by 46% due to a reduction in boiler boiler, device for generating steam. It consists of two principal parts: the furnace, which provides heat, usually by burning a fuel, and the boiler proper, a device in which the heat changes water into steam. gas usage for electric generation (CHG&E's fossil generating plants were sold on Jan. 30, 2001), reduced usage by commercial and industrial customers opting to burn alternate fuels for economic reasons, and a reduction in usage from the curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. of interruptible service in the early part of the year, also for economic reasons. Utility electric and gas operating revenues increased $9.9 million (6.2%) from $159.0 million in 2000 to $168.9 in 2001. Electric revenues decreased $2.9 million (2.4%) and gas revenues increased $12.8 million (31.3%) as compared to 2000. The reduction in electric revenues is due primarily to a reduction in revenues retained from sales of electricity to other utilities and marketers; revised electric rate schedules effective February 1, 2001 reducing base rates to reflect the impact of the sale of CHG&E's fossil generating plants; and an increase in revenues deferred under CHG&E's restructuring Settlement Agreement with the PSC, as indicated above. Revenues from increased electric residential and commercial sales served to partially offset the reduction in electric revenues. The increase in gas revenues stems from increased sales and an increase in amounts collected under CHG&E's gas cost adjustment due to higher gas costs and is partially offset by decreases in revenues from sales to other utilities and marketers and revenues from interruptible sales. 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. increased $15.0 million (11.1%) from $134.4 million in 2000 to $149.4 in 2001. The increase in operating expenses results from increases in the cost of fuel used in electric generation, purchased electricity and purchased natural gas. The rise in costs is due to increased fossil fuel fossil fuel: see energy, sources of; fuel. fossil fuel Any of a class of materials of biologic origin occurring within the Earth's crust that can be used as a source of energy. Fossil fuels include coal, petroleum, and natural gas. prices, increased electric and gas own territory sales and also, the impact of changing market conditions brought about by the restructuring of the New York State wholesale electricity market. The increases are partially offset by a $6.8 million reduction in other costs such as depreciation and amortization, taxes other than income taxes, income taxes and other expenses of operation. The reduction in these costs is largely due to the sale of CHG&E's fossil generating plants on January 30, 2001. Central Hudson Energy Services, Inc Revenues for Services increased $54.7 million from $18.9 million in 2000 to $73.6 million in 2001, while operating expenses increased $48.9 million from $19.1 million in 2000 to $68.0 million in 2001. The increase in revenues is largely attributable to the oil distribution companies, SCASCO, Inc (SCASCO) and Griffith, which increased $56.9 million from $8.7 million in 2000 to $65.6 million in 2001. The increase reflects a growth in sales for SCASCO from acquisitions and the first full quarter of operation for Griffith since its acquisition in November 2000. Operating expenses are primarily fuel costs associated with the CH Resources generating plants, purchased electricity, and the cost of petroleum and natural gas for SCASCO and Griffith. Fuel costs for CH Resources increased $ .7 million from $2.2 million in 2000 to $2.9 in 2001. Petroleum and natural gas costs increased by $39.4 million from $5.0 million in 2000 to $44.4 in 2001. Purchased electricity costs decreased $3.4 million from $4.6 to $1.2 million due to reduced activity in the retail sales program. Other expenses of operation, excluding the above, increased $12.2 million from $7.3 million in 2000 to $19.5 million in 2001 due to the continued growth of Services, through acquisitions. Included in this increase is depreciation and amortization on acquisitions which increased $1.7 million, and income taxes which increased $2.9 million. CH Energy Group, Inc. 12 Months Ended March 31, 2001 Relative to the Prior Year Earnings per share increased $.21 or 7.3% from $2.87 for the twelve months ended March 31, 2000 to $3.08 for the twelve months ended March 31, 2001. The increase results largely from increased earnings from Services due primarily to the acquisition of Griffith in November 2000. Earnings were also enhanced by an increase in CHG&E gas net operating revenues due to increased residential and commercial space heating sales resulting from a colder winter (9% increase 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. ) and also, an increase in profits retained by CHG&E from the sale of electricity to other utilities and marketers. Additionally, the Company's common stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted earnings. The increases were partially offset by increases in operation and maintenance costs and federal income tax expense incurred by CHG&E and the effect of non-recurring items, primarily the effect of income recorded in 1999 related to the sale of the Company's former Stock exchange symbol. The change in earnings for the twelve month period is also reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the largely offsetting impacts related to the sale of CHG&E's fossil generating plants to Dynegy on January 30, 2001. The Company remains in a strong financial position. At March 31, 2001, the Company had $365.2 million in cash and cash equivalents and $250,000 of short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. outstanding. 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 earnings release and the attached appendix 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 "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, nuclear industry regulation, the outcome of pending litigation, and certain environmental matters, particularly ongoing development of air quality regulations and industrial waste remediation requirements. 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. announces the following operating results for
the periods indicated:
----------------------------------------------------------------------
3 Months Ended March 31 2001 2000
---- ----
Operating Revenues (1) $ 242,509,000 $ 177,950,000
Net Income $ 18,310,000 $ 18,114,000
Basic Earnings Per Share $ 1.12 $ 1.07
Average Shares Outstanding 16,362,000 16,860,000
12 Months Ended March 31 2001 2000
---- ----
Operating Revenues (1) $ 814,446,000 $ 589,557,000
Net Income $ 51,169,000 $ 48,391,000
Earnings Per Share $ 3.08 $ 2.87
Average Shares Outstanding 16,591,000 16,862,000
(1) Includes energy service charges/credits
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion