CH Energy Group Posts Second-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)--July 22, 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 earnings of 31 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 above the 20 cents per share earned in the second quarter of 2001. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings were $1.50 per share, versus $1.32 for the first half of 2001, an increase of 13 percent. The Company estimates that year-to-date earnings are approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15 cents per share below what would be expected during a normal year due to the record-setting mild winter weather experienced during the first quarter. "Several other significant and unusual events impacted the quarterly earnings. Of the 31 cents earned, 21 cents related to the net gain from the sale of CH Resources, a power-generation subsidiary. Earnings from 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 were 10 cents per share, after 17 cents per share were deferred based upon a regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. agreement that required earnings above a return on equity of 11.3 percent to be shared equally with utility customers," explained Chairman and Chief Executive Officer 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. "That deferral deferral - Waiting for quiet on the Ethernet. of 17 cents a share is the entire amount related to the first 12-month period under that regulatory agreement." Utility subsidiary 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 continued to experience strong growth in its service territory. Earnings benefited from a 2-percent increase in electric sales, resulting primarily from an increase in the number of customers. "We're we're Contraction of we are. we're we are certainly pleased that the Mid-Hudson Valley continues its steady pace of economic development, due largely to an increase in residential construction in the southern portion of our utility's service territory," said Ganci. "Our new peak demand record, set on July July: see month. 3 at 1,104 megawatts, is indicative indicative: see mood. of the sustained growth we're experiencing - especially significant considering the weak economy 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. region." Sales of natural gas to residential customers decreased 5 percent as compared to 2001, primarily resulting from milder weather (as evidenced by the 6-percent decrease 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. ). Subsidiary Central Hudson Energy Services, a family of competitive energy service businesses with holdings from 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 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., posted second-quarter earnings of 9 cents per share, versus a loss of 11 cents for the same period last year. Included in earnings is the net gain of 21 cents per share resulting from the sale of its CH Resources business unit to WPS See Windows Printing System and Workplace Shell. (unit) wps - (Obsolete) Words per second (mostly used for Telex and TWX transmission). Power Development, Inc. for $58 million on May 31. CHES's oil distribution subsidiaries incurred net losses for the quarter, equal to that of the prior year, which typically occurs during the non-heating season. The Company has paid dividends for 75 consecutive years and currently pays a quarterly dividend of 54 cents per share. Earnings Projections for Remainder of Year: CH Energy Group believes its April 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 2002 annual earnings of $2.50 - $2.65 is achievable, as are the projections for the business units of $1.90 - $2.00 for Central Hudson, 30 - 45 cents for CHES and 25 - 30 cents for interest income from the parent company. A larger-than-anticipated gain on the sale of CH Resources will offset a modest under-run in operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before at CHES. About CH Energy Group, Inc.: CH Energy Group, Inc. and its subsidiaries deliver energy and energy services to more than 420,000 customers in several Northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. states. The regional energy firm, which is headquartered in Poughkeepsie, 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 , is comprised of two primary subsidiaries: Central Hudson Gas & Electric Corporation and Central Hudson Energy Services, Inc. Central Hudson Gas & Electric is a regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. utility delivering natural gas and electricity in a 2,600-square-mile service territory extending 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. . As a utility, it has provided its customers with overall electric bills significantly below those of other utilities in New York State and the Northeast. In particular, 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 offering its customers extremely competitive prices for energy delivery. Strengthened by relationships that stretch back as far as 150 years with the communities of the Mid-Hudson Valley, Central Hudson is also considered an industry leader in lowering costs and 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 Energy Services incorporates business units that supply 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 more than 75,000 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 to those of the Washington, D.C. metropolitan area. Conference Call: CH Energy Group, Inc. management will conduct a conference call regarding second-quarter earnings at 4:00 p.m. (Eastern Time) today. Participants should dial 1-888-273-9890 and refer to CH Energy Group. The call will be available for replay from 11:00 p.m. (Eastern Time) on July 22, 2002, until 12:50 p.m. (Eastern Time) on July 29, 2002, by dialing 1-800-475-6701 and entering access code 644838. 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," "projects," "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 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.
APPENDIX
Highlights Relative to Prior Year
2002 More
3 Months Ended June 30: 2002 (a) 2001 (a) (Less) than 2001
Operating Revenues (b) $152,916,000 $ 166,418,000 $ (13,502,000)
Income Available for
Common Stock:
From Continuing
Operations $ 1,575,000 $ 3,224,000 $ (1,649,000)
From Discontinued
Operations:
Net Loss (2,175,000) - (2,175,000)
Gain on Disposal 5,698,000 - 5,698,000
Subtotal 3,523,000 - 3,523,000
Total $ 5,098,000 $ 3,224,000 $ 1,874,000
Earnings Per
Share From:
Continuing Operations $ .10 $ .20 $ (.10)
Discontinued
Operations - Net .21 - .21
Earnings Per Share
of Common Stock $ .31 $ .20 $ .11
Average Shares
Outstanding 16,362,000 16,362,000
(a) Unaudited
(b) Includes energy service charges/credits
CH Energy Group, Inc. (Company) earned $.31 per share in the second quarter versus $.20 per share in the second quarter of 2001. The $.11 per share increase consists of an increase in earnings from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $.21and a reduction in earnings from continuing operations of $.10. Additional detail is as follows: -- Up $.20 due to an increase in earnings from the Company's unregulated affiliate, Central Hudson Energy Services, Inc. (Services). The increase in earnings is due to the net gain realized from the May 31, 2002 sale of Services' stock ownership in CH Resources, Inc., a wholly owned subsidiary. The net gain includes operating losses previously deferred in accordance with current accounting principles regarding discontinued operations and was partially offset by operating losses from continuing operations incurred by Services' oil distribution subsidiaries, which typically incur losses during the non-heating season. -- Up $.04 due to the amortization of previously deferred shareholder benefits under a prior regulatory agreement relating to the sale of CHG&E's fossil generation plants. -- Up $.03 due to a reduction in CHG&E's other operating costs, primarily a reduction in labor costs resulting from efficiency gains and an increased emphasis on capital expenditures for projects related to electric reliability improvements. -- Down $.10 due to a decrease in net interest income largely due to lower cash balances. The reduction in interest income is partially offset by reductions in interest charges and preferred stock dividends. The decrease in interest charges results from the redemption and repurchase of a number of long-term debt obligations from May through September of 2001. Preferred stock dividends decreased due to the partial redemption of several issues in May 2002. Proceeds from the sale of CHG&E's fossil generation plants and its interest in NMP-2 were used to fund the redemptions and repurchases. -- Down $.07 due to a decrease in CHG&E's gas net operating revenues (net of the cost of gas and revenue taxes) due to a reduction in own territory firm sales. The reduction largely reflects a reduction in heating sales to residential and commercial customers due to warmer than normal weather, largely in April. Heating billing degree-days for the quarter were 6% lower than last year. -- Down $.01 due to a decrease in CHG&E's electric net operating revenues (net of the cost of fuel, purchased electricity and revenue taxes). The net change reflects the elimination of rate moderation credits effective July 1, 2001 (effective date of current rate order), which was partially offset by an increase in net revenues from sales. CHG&E also deferred revenues in accordance with its excess earnings provisions; however, this decrease was offset by a reduction in operating expenses for its interest in the NMP-2 plant, which was sold in November 2001. -- Up $.02 due to the net effect of various other items including a reduction in income taxes and increased property taxes. Second Quarter Results of Operations CH Energy Group, Inc. Earnings per share for the second quarter of 2002 were $.31, an increase of $.11 from second quarter 2001 results of $.20 per share. The increase in earnings results largely from the net gain realized from the May 31, 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. of Services. The financial results for the quarter also reflect reductions in CHG&E's electric and gas net revenues. Electric net revenues decreased due to the elimination of rate moderation credits, which was partially offset by an increase in net revenues from sales. The decrease in gas net revenues is attributed to a reduction in heating sales to residential and commercial customers, due to warmer than normal weather. Earnings were also enhanced by the amortization of shareholder benefits relating to the January January: see month. 2001 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 and a reduction in labor costs resulting from efficiency gains and an increased emphasis on capital projects for the improvement of system reliability. Interest Charges decreased $1.8 million due primarily 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 from May through September September: see month. of 2001. This debt was eliminated utilizing proceeds from the January 2001 sale of CHG&E's fossil generation plants. 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 2% in the second quarter of 2002 as compared to the same quarter in 2001. Sales to residential and commercial customers each increased 1%, primarily from an increase in the average number of customers. Sales to industrial customers increased 2% due largely to an increase in usage by a large industrial customer. Utility sales of natural gas to firm CHG&E customers, plus transportation of gas supplied by others, decreased 5% in the second quarter as compared to the prior year. Residential sales decreased 8% while sales to commercial customers decreased 3%. Such sales, which are 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 primarily as a result of the milder weather as evidenced by the 6% decrease in billing heating degree-days. Industrial sales, a small percentage of total firm sales, decreased 19%. Interruptible sales increased 88% due primarily to an increase in the volume transported for a large industrial customer. 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. , in total, decreased $6.6 million (5.1%) from $129.6 million in 2001 to $123.0 in 2002. Electric revenues decreased $5.8 million (5.5%) due primarily to a change in rates effective July 1, 2001 with CHG&E's current rate order and the deferral of revenues under CHG&E's excess earnings provisions. The decrease in electric revenues is partially offset by an increase in revenues from sales, an increase in electric energy supply cost adjustment revenues and an increase 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. The reduction in gas revenues of $815,000 (3.2%) is due largely to a decrease in sales from milder weather partially offset by an increase in sales for resale revenues. 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 $4.3 million (3.6%) from $120.9 million in 2001to $116.6 in 2002. The reduction in expense primarily reflects the elimination of operational costs for CHG&E's interest in the NMP-2 plant, due to its sale. The decrease in expense also includes a reduction in labor costs due to an increased emphasis on capital projects to improve system reliability. Partially offsetting the reduction is an increase of $4.0 million in purchased electricity costs due to increased sales and an increase of $1.7 million in purchased natural gas costs largely relating to gas costs reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. under CHG&E's Gas Supply Charge mechanism. Central Hudson Energy Services, Inc Revenues for Services decreased $6.9 million from $36.8 million in 2001 to $29.9 million in 2002. The reduction in revenues primarily 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 ($7.2 million), for the quarter ended June June: see month. 31, 2002, related to discontinued operations for Services' wholly owned electric generation, CH Resources, Inc., whose sale was concluded on May 31, 2002. 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 current accounting principles, revenues and expenses have been eliminated from the results of continuing operations since December December: see month. 2001. The cumulative net loss and the gain on the sale are reported separately from the results of continuing operations in the consolidated income statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. . Operating expenses for Services in the second quarter decreased $7.5 million from $39.4 million in 2001 to $31.9 million in 2002 primarily related to the sale of CH Resources, Inc. Services' most significant costs are the cost of its petroleum products and natural gas at its oil distribution companies. These costs remained relatively flat. CH Energy Group, Inc. 12 Months Ended June 30, 2002 Relative to the Prior Year Earnings per share for the 12 months ended June 30, 2002 increased $.46 as compared to the 12 months ended June 30, 2001. The increase reflects a significant impact on earnings from the net effect of several regulatory actions relating to the sale of CHG&E's fossil generation plants and its interest in NMP-2 in January and November November: see month. 2001, respectively. They include the recognition of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. tax benefits, the recognition of previously deferred shareholder benefits and 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 increase in earnings is also attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to higher electric net revenues, primarily due to a significant decrease in revenues deferred under CHG&E's excess earnings provisions; a slight increase in revenues from utility sales to residential and commercial customers; a reduction in interest charges and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends from the redemption and repurchase of various issues utilizing proceeds from the sale of CHG&E's plants; and income recorded for the receipt of stock from the 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 certain insurance companies. Partially offsetting these increases was a reduction in utility gas net revenues from sales and a reduction in earnings from the operations of Services. The decrease for Services is due primarily to losses incurred by its generating plants prior to their discontinued operations in December 2001 and lower sales by its oil distribution subsidiaries. The reductions in gas and oil sales reflect the warmer weather as evidenced by a 17% drop (15% below normal) in billing heating degree-days from the prior 12 months. The loss for Services was largely offset by the substantial net gain realized from the May 31, 2002 sale of its stock ownership in its subsidiary, CH Resources, Inc. The Company remains in a strong financial position. At June 30, 2002, the Company had $264.8 million in cash and cash equivalents, $25.5 million of current maturities of long-term debt and no short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. outstanding. FORWARD-LOOKING STATEMENTS: Statements included in this earnings release and the attached 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 provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67, and within the meaning of the Securities 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 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 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.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
3 Months Ended 12 Months Ended
June 30, June 30,
2002 2001 2002 2001
(Thousands of Dollars)(Thousands of Dollars)
OPERATING REVENUES
Electric $98,542 $104,297 $408,894 $509,047
Gas 24,503 25,318 98,150 123,177
Unregulated Affiliate 29,871 36,803 162,515 187,714
Total Operating
Revenues 152,916 166,418 669,559 819,938
OPERATING EXPENSES
Operations -
Fuel, Purchased Electric,
Purchased Gas and
Purchased Petroleum 95,574 96,271 390,681 442,439
Other Exp. of Operation -
Regulated Activities 21,920 29,828 88,317 129,066
Other Exp. of Operation -
Unregulated Affiliate
Activities 12,605 13,328 54,302 46,526
Depreciation and
Amortization 7,704 8,558 32,116 45,364
Operating Taxes 9,680 12,394 41,640 50,223
Federal / State Income Tax 1,621 711 22,566 36,226
Total Operating
Expenses 149,104 161,090 629,622 749,844
OPERATING INCOME 3,812 5,328 39,937 70,094
OTHER INCOME AND DEDUCTIONS
Allowance for Equity Funds
Used During Construction 120 96 479 177
Federal / State Income
Tax - Credit 203 (704) 25,526 (2,868)
Other - Net 4,453 7,725 10,211 19,179
Total Other Income
and Deductions 4,776 7,117 36,216 16,488
INCOME BEFORE INTEREST CHARGES 8,588 12,445 76,153 86,582
INTEREST CHARGES
Interest on Debt 3,395 4,440 11,063 22,686
Other 3,231 4,050 12,196 14,694
Allowance for Borrowed Funds
Used During Construction (64) (76) (299) (594)
Total Interest
Charges 6,562 8,414 22,960 36,786
Net Income from
Continued Operations 2,026 4,031 53,193 49,796
Net Loss from Discontinued
Operations,
Net of Income
Tax Benefit of $1,439 (2,175) - (2,175) -
Gain on Disposal of
Discontinued Operations,
Net of Income Tax of ($6,671) 5,698 - 5,698 -
PREFERRED STOCK DIVIDENDS
OF CENTRAL HUDSON 451 807 2,875 3,230
NET INCOME 5,098 3,224 53,841 46,566
DIVIDENDS DECLARED
ON COMMON STOCK 8,835 8,835 35,342 35,470
AMOUNT RETAINED
IN THE BUSINESS ($3,737) ($5,611) $18,499 $11,096
Average Shares of Common
Stock Outstanding (000s) 16,362 16,362 16,362 16,477
Earnings Per Share -
(Basic and Diluted) $0.31 $0.20 $3.29 $2.83
CH ENERGY GROUP, INC.
CONSOLIDATED BALANCE SHEET
June 30, December 31,
2002 2001(a)(b)
ASSETS (Thousands of Dollars)
UTILITY PLANT
Utility Plant $879,733 $862,628
Less Accumulated Depreciation 365,466 354,010
Net Utility Plant 514,267 508,618
Construction Work in Progress 60,358 53,139
574,625 561,757
OTHER PROPERTY AND INVESTMENTS 100,638 133,245
INTANGIBLE ASSETS 78,163 79,587
CURRENT ASSETS
Cash and Cash Equivalents 264,816 132,395
Accounts Receivable from Customers 55,745 61,540
Materials & Supplies 13,840 18,402
Fair Value of Derivative Instruments 935 16,661
Special Deposits and Prepayments 40,778 51,918
Other 9,043 20,733
385,157 301,649
DEFERRED CHARGES AND OTHER ASSETS 69,960 112,404
TOTAL $1,208,543 $1,188,642
CAPITALIZATION and LIABILITIES
CAPITALIZATION
Common Equity(c) $503,673 $496,309
Cumulative Preferred Stock:
Not subject to mandatory redemption 21,030 21,030
Subject to mandatory redemption 12,500 35,000
Long-term Debt 279,375 216,124
816,578 768,463
CURRENT LIABILITIES
Current Maturities of Long-term Debt 25,500 20,000
Notes Payable - 250
Accounts Payable 35,543 41,061
Accrued Interest 3,728 2,538
Dividends Payable 9,287 9,643
Other 38,231 37,714
112,289 111,206
DEFERRED CREDITS AND OTHER LIABILITIES 251,171 287,613
ACCUMULATED DEFERRED INCOME TAX (NET) 28,505 21,360
TOTAL $1,208,543 $1,188,642
(a) Audited.
(b) Subject to explanations contained in the Annual Report of the
Company for 2001.
(c) Shares outstanding at June 30, 2002 = 16,362,087.
Shares outstanding at Dec. 31, 2001 = 16,362,087.
Selected Financial Information
3 Months Ended June 30,
2002 2001 % Variation
CENTRAL HUDSON GAS & ELECTRIC CORP.
Sales of Electricity (Mwh):(a)
Residential 406,029 403,030 1
Commercial 445,025 441,500 1
Industrial 352,179 344,328 2
Unbilled and Other 1,289 (4,171) 131
Total Own Territory 1,204,522 1,184,687 2
Sales of Gas (Mcf.): (a)
Residential 1,139,159 1,239,096 (8)
Commercial 1,058,849 1,095,590 (3)
Industrial 132,393 162,749 (19)
Unbilled and Other (263,483) (320,717) 18
Total Firm Sales 2,066,918 2,176,718 (5)
Interruptible Sales 1,438,199 763,527 88
Total Own Territory 3,505,117 2,940,245 19
(a) Includes volumes related
to Electric or Gas Energy
Delivery Services.
Cooling Degree Days:
Actual in Period 181 188 (4)
Heating Degree Days:
Billing Cycle 1,620 1,717 (6)
Actual in Period 772 651 19
Electric Output For
Own Territory (Mwh.):
Generated 31,190 161,243 (81)
Purchased 1,257,648 1,137,692 11
Total 1,288,838 1,298,935 (1)
Gas Send-out
Firm Customers (Mcf.) 1,392,985 1,320,481 5
CH ENERGY GROUP, INC.
Earnings Per Share $0.31 $0.20 55
Dividends Declared
Per Share $0.54 $0.54 -
Book Value Per Share
Retained Earnings (000s)
Common Equity Ratio (%)
12 Months Ended June 30,
2002 2001 % Variation
Sales of Electricity (Mwh):(a)
Residential 1,774,895 1,764,690 1
Commercial 1,853,347 1,812,521 2
Industrial 1,311,469 1,316,149 -
Unbilled and Other 36,995 37,132 -
Total Own Territory 4,976,706 4,930,492 1
Sales of Gas (Mcf.): (a)
Residential 4,298,721 5,073,690 (15)
Commercial 4,791,350 5,504,715 (13)
Industrial 618,705 753,668 (18)
Unbilled and Other 22,529 90,601 (75)
Total Firm Sales 9,731,305 11,422,674 (15)
Interruptible Sales 5,796,857 3,758,511 54
Total Own Territory 15,528,162 15,181,185 2
(a) Includes volumes related
to Electric or Gas Energy
Delivery Services.
Cooling Degree Days:
Actual in Period 667 565 18
Heating Degree Days:
Billing Cycle 5,276 6,372 (17)
Actual in Period 5,347 6,325 (15)
Electric Output For
Own Territory (Mwh.):
Generated 295,401 2,449,880 (88)
Purchased 5,025,069 2,694,676 86
Total 5,320,470 5,144,556 3
Gas Send-out
Firm Customers (Mcf.) 8,686,060 10,762,285 (19)
CH ENERGY GROUP, INC.
Earnings Per Share $3.29 $2.83 16
Dividends Declared
Per Share $2.16 $2.16 -
June 30, Dec. 31,
2002 2001 % Variation
Book Value Per Share $30.78 $30.33 1
Retained Earnings (000s) $170,186 $163,317 4
Common Equity Ratio (%) 59.8% 62.9% (5)
C H Energy Group, Inc.
Selected Financial Indices
12 Months Ended June 30, 2002 vs Calendar Year 2001
12 Months Calendar
Ended Year
June 30, 2002 2001
Earnings Per Share $3.29 $3.11
Earned Return on Common Equity (Per Books) 10.79% 10.35%
Pretax Coverage of Total
Interest Charges, excluding AFDC 2.84 x 2.46 x
Dividends Declared $2.16 $2.16
Pay-out Ratio 65.7% 69.5%
Percent of Construction Expenditures
Financed from Internal Funds 89.6% 100%
Common Equity Ratio 59.8% 62.9%
Retained Earnings ($000) $170,186 $163,317
Book Value Per Share (End of Period) $30.78 $30.33
CH Energy Group, Inc. announces the following operating results for
the periods indicated:
3 Months Ended June 30 2002 2001
Operating Revenues (a) $ 152,916,000 $ 166,418,000
Net Income $ 5,098,000 $ 3,224,000
Basic Earnings Per Share $ .31 $ .20
Average Shares Outstanding 16,362,000 16,362,000
12 Months Ended June 30 2002 2001
Operating Revenues (a) $ 669,559,000 $819,938,000
Net Income $ 53,841,000 $ 46,566,000
Earnings Per Share $ 3.29 $ 2.83
Average Shares Outstanding 16,362,000 16,477,000
(a) Includes energy service charges/credits
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