CH Energy Group Reports First-Quarter Earnings.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. -- Earnings per share for the first quarter of 2005 for 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) ) were $1.29 per share, versus the $1.46 per share earned during the first quarter of 2004, a decline of 17 cents. The primary drivers of the decrease were the anticipated expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of a multi-year amortization of gains from the sale of Central Hudson's This article is about the defunct chain of department stores. For the former parent company formed by the 1969 merger with Dayton's, see Target Corporation. Hudson's, or The J.L. generating plants, increased expenses for electric service restoration following storms and lower delivery volumes within its fuel oil delivery business units. "Our first-quarter results were impacted by increased expenses from restoring service to our electric customers following several winter storms, as well as by conservation measures by our fuel oil customers associated with record prices for oil," explained Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. V. Lant, Chairman of the Board, President and Chief Executive Officer. "On the positive side, we saw continued strong trend growth in our regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. electric and natural gas utility sales; and, 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. -- other than those associated with storm recovery -- were well controlled." Lant said that the Company believes it will still achieve its targeted, full-year earnings projections, despite the events of the first quarter. He explained that earnings for the fuel delivery segment could fall slightly below the target range, but that earnings in both 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. and parent CH Energy Group segments are projected to be strong enough to maintain consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: earnings within the target range. Regulated Electric and Gas Business Central Hudson Gas & Electric Corporation's contribution to first quarter earnings was 94 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 decrease of 9 cents from the $1.03 posted during the same period of 2004. Electric and natural gas sales revenues increased by $12.1 million between the first quarters of 2004 and 2005, while the number of electric and natural gas customers grew by nearly 2 percent during that period. Total utility expenses, however, grew by $11.1 million to $172 million compared to the first quarter of 2004, due largely to price increases for natural gas and electricity purchased on behalf of customers and service restoration after storms. First-quarter earnings one year ago also contained 9 cents per share, from the last installment Regular, partial portion of the same debt, paid at successive periods as agreed by a debtor and creditor. An installment loan is designed to be repaid in certain specified, ordinarily equal amounts over a designated period, such as a year or a number of months. of an $18-million (net of tax) incentive associated with the sale of the utility's former power plants and 4 cents per share from 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. revenue restoration mechanism that was not in place during this year's first quarter. Unregulated Adj. 1. unregulated - not regulated; not subject to rule or discipline; "unregulated off-shore fishing" regulated - controlled or governed according to rule or principle or law; "well regulated industries"; "houses with regulated temperature" 2. Fuel Distribution Businesses The fuel oil distribution businesses of Central Hudson Enterprises Corporation (CHEC CHEC Children's Health Environmental Coalition CHEC Christian Home Educators of Colorado CHEC Commonwealth Human Ecology Council (UK) CHEC Coffs Harbour Education Campus ) contributed 30 cents per share to the quarterly results, down by 9 cents from the 39 cents per share that were posted in the first quarter of 2004. The decline in earnings resulted largely from what the Company believes is price-induced conservation by customers in an environment of high oil prices, as well as some customer attrition Customer attrition, also known as customer churn, customer turnover, or customer defection, is a business term used to describe loss of clients or customers. . Unregulated - Other Businesses Holding Company CH Energy Group, Inc. and CHEC partnership investments contributed 5 cents per share to earnings during the first quarter, which was 1 cent above the same period of 2004. Increases in interest rates for investments were somewhat offset by expenses associated with the cost of developing new business ventures. 2005 Earnings Projections Lant reiterated the Company's earlier 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. that 2005 consolidated annual earnings would total between $2.55 and $2.75 per share. About CH Energy Group With more than 440,000 customers, CH Energy Group, Inc. is a family of companies seizing new opportunities in the energy marketplace through two primary subsidiaries: Central Hudson Gas & Electric Corporation is a regulated transmission and distribution utility serving approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 358,000 customers in eight counties of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State's Mid-Hudson River Valley, and delivering natural gas and electricity in a 2,600-square-mile service territory that extends from the suburbs of metropolitan New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. north to the Capital District at Albany Albany, town, Australia Albany (ăl`bənē), town (1996 pop. 14,590), Western Australia, SW Australia. It is a port on Princess Royal Harbour of King George Sound. The town has woolen mills and fish canneries. . Central Hudson Enterprises Corporation includes business units delivering energy and related services to nearly 85,000 customers in eight states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United 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 Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). to the Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. area, as well as an interest in a Lexington Lexington. 1 City (1990 pop. 225,366), seat of Fayette co., N central Ky., in the heart of the bluegrass region; inc. 1832, made coextensive with Fayette co. 1974. , Neb., ethanol ethanol (ĕth`ənōl') or ethyl alcohol, CH3CH2OH, a colorless liquid with characteristic odor and taste; commonly called grain alcohol or simply alcohol. plant. Conference Call: Mr. Lant will conduct a conference call with analysts and investors to review financial results at 4:00 p.m. (ET) today, April 20, 2005. Dial-in: 1-888-428-4474; Conference Name: "CH Energy Group." A digitized replay of the call will be available from 9:15 p.m. (ET) on April 20, 2005, until 11:59 p.m. (ET) on April 27, 2005, by dialing 1-800-475-6701 and entering access code # 778586. In addition, consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge are available on the Company's website at www.CHEnergyGroup.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements included in this news release, including its Appendix appendix, small, worm-shaped blind tube, about 3 in. (7.6 cm) long and 1-4 in. to 1 in. (.64–2.54 cm) thick, projecting from the cecum (part of the large intestine) on the right side of the lower abdominal cavity. and the documents incorporated by reference 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. . Forward-looking statements may be identified by words including "anticipates," "believes," "projects," "intends," "estimates," "expects," "plans," "assumes," "seeks," and similar expressions. Forward-looking statements including, without limitation, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc CH Energy Group, Inc. and its subsidiaries' 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 forward-looking statements. Those factors include, but are not limited to: weather; energy supply and demand; fuel prices; interest rates; potential future acquisitions; developments in the legislative, regulatory and competitive environment; market risks; electric and gas industry restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and cost recovery; the ability to obtain adequate and timely rate relief; changes in fuel supply or costs; the success of strategies to satisfy electricity requirements now that Central Hudson's major electric generation assets have been sold; future market prices for energy, capacity, and ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. services; the outcome of pending litigation 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. and certain environmental matters, particularly the status of inactive in·ac·tive adj. 1. Not active or tending to be active. 2. a. Not functioning or operating; out of use: inactive machinery. b. hazardous waste Hazardous waste Any solid, liquid, or gaseous waste materials that, if improperly managed or disposed of, may pose substantial hazards to human health and the environment. Every industrial country in the world has had problems with managing hazardous wastes. disposal sites and waste site remediation requirements; and certain presently unknown or unforeseen factors, including, but not limited to, acts of terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. . CH Energy Group, Inc. and its subsidiaries undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Given these uncertainties, undue reliance should not be placed on the forward-looking statements.
CH Energy Group, Inc. announces the following operating results
for the periods indicated:
3 Months Ended March 31 2005 2004
---- ----
Operating Revenues $286,089,000 $262,993,000
Net Income $ 20,339,000 $ 22,989,000
Earnings Per Share - Basic $ 1.29 $ 1.46
Earnings Per Share - Diluted $ 1.28 $ 1.45
Average Shares Outstanding - Basic 15,762,000 15,762,000
Average Shares Outstanding - Diluted 15,770,000 15,775,000
12 Months Ended March 31 2005 2004
---- ----
Operating Revenues $814,607,000 $804,535,000
Net Income $ 39,774,000 $ 46,780,000
Earnings Per Share - Basic $ 2.52 $ 2.96
Earnings Per Share - Diluted $ 2.52 $ 2.96
Average Shares Outstanding - Basic 15,762,000 15,780,000
Average Shares Outstanding - Diluted 15,770,000 15,789,000
APPENDIX
Highlights Relative to Prior Year
2005 More
(Less) than
3 Months Ended March 31: 2005(1) 2004(1) 2004
------ ------ ------
Operating Revenues $286,089,000 $262,993,000 $ 23,096,000
Income Available for
Common Stock $ 20,339,000 $ 22,989,000 $ (2,650,000)
Earnings Per Share
of Common Stock (Basic) $1.29 $1.46 $(.17)
Average Shares Outstanding
(Basic) 15,762,000 15,762,000
(1) Unaudited
Consolidated basic earnings per share of CH Energy Group, Inc. decreased $.17 per share due to the following: Regulated Electric and Natural Gas - Central Hudson Gas & Electric Corp. (CHG&E): - $.09 --Down $.09 due to the completion of the amortization of Central Hudson's share of the gain from the 2001 sale of its interests in its major generating assets. This gain was recorded as deferred income beginning July July: see month. 1, 2001, and its amortization to other income was completed in December December: see month. 2004. --Down $.05 from an increase in operating expenses mostly related to storm restoration efforts in March 2005. --Down $.04 due to an increase in property taxes and depreciation and amortization of utility plant assets. --Up $.03 due to an increase in electric net operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. from sales, net of the cost of purchased electricity, fuel and revenue taxes. Electric delivery sales to residential, commercial and industrial customers increased 2% as compared to an increase in weather-normalized sales of 3%. The increase in sales is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased usage by existing industrial customers and customer growth for residential and commercial sales. Electric billing heating degree-days were 3% lower than last year and 1% lower than normal. The earnings impact of weather on electric net revenues was ($.01) per share. --Up $.03 from electric and gas regulatory mechanisms. The increase was due to lower shared earnings for electric and gas operations, which were partially offset by the absence of the amortization of previously deferred electric and gas delivery revenues that ended June June: see month. 30, 2004. Both electric and gas shared earnings decreased largely due to lower ratemaking rate·mak·ing n. The practice of establishing rates of payment, as for public transportation or utilities. rate operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and a change in the sharing arrangements effective July 1, 2004. --Up $.01 due to an increase in natural gas net operating revenues from sales, net of the cost of natural gas and revenue taxes. Delivery sales to firm gas customers increased 2% overall as compared to an increase in weather normalized sales of 5%. Sales to residential and commercial customers, largely space heating Space heating is the heating of a space, usually enclosed, such as a house or room. A space heater keeps the air and surroundings at a comfortable temperature for people or animals, or even plants in a greenhouse. sales, increased 1% and 4%, respectively, due entirely to customer growth. Sales to existing industrial customers increased 3%. Gas billing heating degree-days were 4% lower than the prior year and 1% lower than normal. The earnings impact of weather on gas net revenues was ($.03) per share. --Up $.02 due to the net effect of various other items including a reduction in income taxes and an increase in interest charges due to the issuance of long term debt in February February: see month. and November November: see month. of 2004. The increase in interest charges on 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. was partially offset by a reduction in regulatory carrying charges Payments made to satisfy expenses incurred as a result of ownership of property, such as land taxes and mortgage payments. Disbursements paid to creditors, in addition to interest, for extending credit. Consumer Protection laws require full disclosure of all carrying charges. due to customers. The reduction in carrying charges primarily reflects the substantial use of the principal balance of the Customer Benefit Fund by December 31, 2004, for customer refunds and other authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: programs. Unregulated - Fuel Oil Distribution: - $.09 --Down $.09 due to a decrease in net revenues (net of fuel and other related expenses) from Central Hudson Enterprises Corp.'s (CHEC) fuel oil distribution subsidiaries due to reduced volumes related to customer attrition and price-induced customer conservation. Milder weather also contributed to the reduction in volume. This shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. was partially offset by higher margins in the first quarter of 2005 as compared to 2004. Unregulated - Other : + $.01 --Up $.01 due primarily to an increase in investment income from short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments held by CH Energy Group, Inc. (CHEG), the holding company. The increase in earnings reflects higher investment returns due to higher interest rates. First Quarter Results of Operations Regulated Electric and Natural Gas - Central Hudson Gas & Electric Corp. Utility deliveries of electricity within CHG&E's service territory increased 2% in the first quarter of 2005 as compared to the same quarter in 2004. Sales to residential and commercial customers increased 2% and 3%, respectively, while sales to industrial customers increased 2%. Sales to residential and commercial customers increased due to customer growth, which more than offset the impact on sales from a 3% drop in electric billing heating-degree days from the prior year. The change in industrial sales is due primarily to an increase in usage by a large industrial customer. Utility deliveries of natural gas to firm CHG&E customers also increased 2% in 2005 as compared to last year. Despite a decrease in gas billing heating degree-days of 4%, sales to residential customers increased 1% while sales to commercial customers increased 4% both due to customer growth. Industrial sales, which were 4% of total firm sales in the quarters ended March 2005 and 2004, increased 3%. Interruptible sales increased 11% due to a greater availability of natural gas for use by interruptible customers resulting from the lower billing degree-days. Utility electric and gas operating revenues increased $12.1 million (6.8%) from $178.0 million in 2004 to $190.1 million in 2005. Electric revenues increased $7.4 million (6.2%) and gas revenues increased by $4.7 million (8.1%) due primarily to an increase in electric and natural gas sales and an increase in amounts collected through CHG&E's cost adjustment mechanisms to recover its cost of purchased electricity and natural gas. Total utility operating expenses, including income taxes, increased $11.1 million (6.9%) from $160.9 million in 2004 to $172.0 million in 2005. The increase in operating expenses largely results from an increase in purchased electricity and natural gas expense. Purchased electricity and natural gas expense increased $6.3 million and $3.7 million, respectively, due largely to an increase in the wholesale cost of electricity and natural gas. The increase in the cost of natural gas also reflects an increase in volumes purchased due to an increase in sales to full service customers. Other operating expenses, including income taxes, increased $1.1 million due primarily to an increase in the cost of storm restoration, an increase in depreciation and amortization of utility plant and an increase in property taxes. This increase was partially offset by a reduction in income taxes due to a decrease in taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . Other Income decreased $3.3 million due to the completion of the amortization in December 2004 of Central Hudson's share of the gain from the 2001 sale of its interests in its major generating assets and a reduction in carrying charges due from customers related to pension costs. In its June 2004 Rate Order adopting the terms of CHG&E's Joint Proposal for Rate Plan Modification A change or alteration in existing materials. Modification generally has the same meaning in the law as it does in common parlance. The term has special significance in the law of contracts and the law of sales. , the PSC (Public Service Commission) Same as PUC. authorized the use of the Customer Benefit Fund to offset pension under-collection balances, which reduced the balance upon which carrying charges for pension costs are determined. This reduction in carrying charges was offset by a reduction in carrying charges related to the Customer Benefit Fund as discussed below. Interest Charges decreased $.7 million due primarily to a reduction of regulatory carrying charges resulting from the substantial use, by December 31, 2004, of the principal balance of the Customer Benefit Fund for customer refunds and other authorized programs. 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 current settlement agreement, carrying charges were accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. on the unused balance for the future benefit of customers. This reduction in carrying charges was partially offset by an increase in interest charges on long-term debt due to the issuance of medium-term notes Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. in February and November of 2004. Unregulated - Fuel Oil Distribution Revenues for CHEC's fuel oil distribution operations increased $ 11.0 million (13.0%) from $ 84.8 million for the quarter ended March 31, 2004 to $95.8 million for the quarter ended March 31, 2005. The increase in revenues primarily reflects an increase in the average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. of petroleum in 2005 in comparison to 2004 due to an increase in wholesale costs. The increase is partially offset by a reduction in petroleum volumes due to customer attrition, price-induced customer conservation, and milder weather in the first quarter of 2005 in comparison to 2004. Operating expenses, including income taxes, increased $12.2 (15.6%) million from $78.2 million in 2004 to $90.4 million in 2005 due to an increase in purchased petroleum expense. The cost of petroleum increased $13.6 million due primarily to an increase in the wholesale cost of petroleum in 2005 as compared to 2004. This increase was partially offset by a reduction in other expenses of operation of $.5 million due to a decrease of distribution costs distribution costs distribute npl → Vertriebskosten pl related to lower volumes sold. Also offsetting the increase in petroleum costs was a reduction in income taxes of $.9 million resulting from lower taxable income. CH Energy Group, Inc. 12 Months Ended March 31, 2005 Relative to the Prior Year Consolidated basic earnings per share for the 12 months ended March 31, 2005, were $2.52 as compared to earnings of $2.96 for the 12 months ended March 31, 2004. The financial results for this period reflect the following: --A reduction in earnings related to electric and gas utility regulatory mechanisms due to higher shared earnings resulting from higher ratemaking operating income and the absence of the amortization of electric and gas delivery revenues that ended June 30, 2004. --An increase in property taxes and depreciation and amortization of utility plant assets. --The completion of the amortization of CHG&E's share of the gain from the sale of its interests in its major generating assets. --A decrease in earnings from CHEC's fuel oil distribution subsidiaries due primarily to reduced volumes related to customer attrition and price-induced customer conservation and also milder weather. --A reduction in CHEG's investment income due to the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of its Alternate alternate /al·ter·nate/ (awl´ter-nit) 1. following in turns. 2. pertaining to every other one in a series. 3. occurring in place of another; acting as a substitute. Investment Program by July 2003. --An increase in CHEG's business development costs reflecting efforts to redeploy re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. the capital from the liquidation in suitable investment opportunities. The decrease in earnings was partially offset by an increase in utility electric net revenues due to increased sales from customer growth; a reduction in utility regulatory carrying charges due to customers related to the substantial use of the Customer Benefit Fund; and a reduction in income taxes due to lower taxable income. CH Energy Group, Inc. (consolidated) remains in a strong financial position. At March 31, 2005 CHEG had $110.1 million in cash and cash equivalents and its current obligations included $10.0 million 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) (Unaudited)
Months Ended 12 Months Ended
March 31, March 31,
------------------- --------------------
2005 2004 2005 2004
-------- ---------- --------- ----------
(Thousands of (Thousands of
Dollars) Dollars)
Operating Revenues
Electric $126,658 $119,269 $437,964 $462,159
Natural Gas 63,430 58,704 129,956 125,572
Competitive Business
Subsidiaries 96,001 85,020 246,687 216,804
-------- ---------- --------- ----------
Total Operating
Revenues $286,089 $262,993 $814,607 $804,535
-------- ---------- --------- ----------
Operating Expenses
Operations - Purchased
Electricity and Fuel
Used in Electric
Generation, Purchased
Natural Gas, and
Purchased Petroleum 193,020 169,477 521,831 497,017
Other Expenses of
Operation - Regulated
Activities 24,730 23,254 100,225 106,060
Other Expenses of
Operation - Comp.
Bus. Subsidiaries 14,524 15,007 53,182 55,806
Depreciation and
Amortization 9,086 8,601 35,125 33,948
Taxes, Other Than
Income Tax 7,916 7,189 31,764 31,920
-------- ---------- --------- ----------
Total Operating
Expenses 249,276 223,528 742,127 724,751
-------- ---------- --------- ----------
Operating Income $36,813 $39,465 $72,480 $79,784
-------- ---------- --------- ----------
Other Income
Allowance for Equity
Funds Used During
Construction 32 88 95 400
Interest and
Investment Income 2,340 2,924 9,336 13,394
Other - Net (554) 2,033 4,804 8,563
-------- ---------- --------- ----------
Total Other Income 1,818 5,045 14,235 22,357
-------- ---------- --------- ----------
Interest Charges
Interest on Debt 3,247 2,831 11,904 11,212
Other Interest 1,079 2,234 5,523 10,396
Allowance for
Borrowed Funds Used
During Construction (48) (59) (210) (241
-------- ---------- --------- ----------
Total Interest
Charges 4,278 5,006 17,217 21,367
-------- ---------- --------- ----------
Income Before Income
Taxes and Preferred
Dividends of Subsidiary $34,353 $39,504 $69,498 $80,774
Income Taxes 13,772 16,273 28,754 32,815
-------- ---------- --------- ----------
Income Before
Preferred Dividends
of Subsidiary $20,581 $23,231 $40,744 $47,959
Cumulative Preferred
Stock Dividends of
Subsidiary 242 242 970 1,179
-------- ---------- --------- ----------
Net Income $20,339 $22,989 $39,774 $46,780
Dividends Declared on
Common Stock 8,512 8,512 34,046 34,054
-------- ---------- --------- ----------
Amount Retained in the
Business $11,827 $14,477 $5,728 $12,726
======== ========== ========= ==========
Ave. Shares of Common
Stock Outstanding-
(Basic) (000s) 15,762 15,762 15,762 15,780
Ave. Shares of Common
Stock Outstanding-
(Diluted) (000s) 15,770 15,775 15,770 15,789
Earnings Per Share -
(Basic) $1.29 $1.46 $2.52 $2.96
Earnings Per Share -
(Diluted) $1.28 $1.45 $2.52 $2.96
Dividends Declared Per
Share $0.54 $0.54 $2.16 $2.16
CH ENERGY GROUP, INC.
CONSOLIDATED BALANCE SHEET
March 31, December 31,
2005 (1) 2004 (2)
-----------------------
ASSETS (Thousands of Dollars)
UTILITY PLANT
Utility Plant $1,024,515 $1,021,912
Less Accumulated Depreciation 320,434 315,691
----------- -----------
704,081 706,221
Construction Work in Progress 47,279 38,846
----------- -----------
Net Utility Plant 751,360 745,067
----------- -----------
OTHER PROPERTY AND PLANT & EQUIPMENT 22,943 23,139
----------- -----------
CURRENT ASSETS
Cash and Cash Equivalents 110,134 119,117
Accounts Receivable from Customers 94,035 65,239
Materials & Supplies 14,938 21,459
Fair Value of Derivative Instruments 502 -
Regulatory Assets 11,572 17,454
Special Deposits and Prepayments 18,687 20,767
Accumulated Deferred Income Tax 13,762 9,454
Other 12,766 13,678
----------- -----------
276,396 267,168
----------- -----------
DEFERRED CHARGES AND OTHER ASSETS 260,121 252,433
----------- -----------
TOTAL $1,310,820 $1,287,807
=========== ===========
CAPITALIZATION and LIABILITIES
CAPITALIZATION
Common Equity (3) $505,523 $493,465
Cumulative Preferred Stock:
Not subject to mandatory redemption 21,027 21,030
Long-term Debt 319,883 319,883
----------- -----------
846,433 834,378
----------- -----------
CURRENT LIABILITIES
Current Maturities of Long-term Debt - -
Notes Payable 10,000 12,000
Accounts Payable 37,982 43,418
Accrued Interest 2,477 4,629
Dividends Payable 8,754 8,754
Accrued Taxes Payable 15,545 -
Fair Value of Derivative Instruments - 906
Other 28,004 31,795
----------- -----------
102,762 101,502
----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES 235,806 231,152
----------- -----------
ACCUMULATED DEFERRED INCOME TAX (NET) 125,819 120,775
----------- -----------
TOTAL $1,310,820 $1,287,807
=========== ===========
(1) Unaudited.
(2) Subject to explanations contained in the Annual Report of the
Company for 2004.
(3) Shares outstanding at March 31, 2005 = 15,762,000.
Shares outstanding at December 31, 2004 = 15,762,000.
Selected Financial Information
--------------------------------
3 Months Ended March 31, 12 Months Ended March 31,
-------------------------- -----------------------
% %
2005 2004 Variation 2005 2004 Variation
------ ------ --------- ----- ----- ---------
CENTRAL HUDSON GAS & ELECTRIC CORP.
------------------------------------
Sales of
Electricity
(Mwh): *
Residential 605,398 591,592 2 2,021,723 1,994,695 1
Commercial 519,943 507,170 3 1,982,360 1,941,563 2
Industrial 340,168 334,558 2 1,482,977 1,447,137 2
Other 10,379 10,425 - 37,233 37,208 -
---------- ---------- ---- ----------- ----------- ---
Total Own
Territory 1,475,888 1,443,745 2 5,524,293 5,420,603 2
========== ========== ==== =========== =========== ===
Sales of Gas
(Mcf.): *
Residential 2,791,539 2,768,241 1 5,256,364 5,423,522 (3)
Commercial 3,083,645 2,970,040 4 6,332,890 6,287,794 1
Industrial 267,622 260,735 3 572,234 591,865 (3)
Other 16,274 32,198 (49) 26,330 45,042 (42)
---------- ---------- ---- ----------- ----------- ---
Total Firm
Sales 6,159,080 6,031,214 2 12,187,818 12,348,223 (1)
Interruptible
Sales 1,180,568 1,065,685 11 3,655,240 3,504,820 4
---------- ---------- ---- ----------- ----------- ---
Total Own
Territory 7,339,648 7,096,899 3 15,843,058 15,853,043 -
========== ========== ==== =========== =========== ===
* Includes volumes related to Electric or Gas Energy Delivery
Services.
Electric Cooling
Degree Days:
Billing Cycle - - - 673 642 5
Actual in
Period - - - 673 642 5
Electric Heating
Degree Days:
Billing Cycle 3,200 3,306 (3) 5,864 6,230 (6)
Actual in
Period 3,238 3,312 (2) 6,020 6,393 (6)
Gas Heating
Degree Days:
Billing Cycle 3,152 3,267 (4) 5,839 6,414 (9)
Actual in
Period 3,203 3,190 - 5,995 6,271 (4)
Electric Output
For Own
Territory
(Mwh.):
Generated 35,524 38,230 (7) 171,728 187,901 (9)
Purchased 1,469,118 1,434,813 2 5,511,131 5,512,440 -
---------- ---------- ---- ----------- ----------- ---
Total 1,504,642 1,473,043 2 5,682,859 5,700,341 -
========== ========== ==== =========== =========== ===
Gas Send-out
Firm
Customers
(Mcf.) 4,910,410 5,000,372 (2) 9,844,488 10,249,672 (4)
========== ========== ==== =========== =========== ===
CH ENERGY GROUP, INC.
-----------------------
Earnings Per
Share -
(Basic) $1.29 $1.46 (12) $2.52 $2.96 (15)
Dividends
Declared Per
Share $0.54 $0.54 - $2.16 $2.16 -
March 31, Dec. 31, %
2005 2004 Variation
--------- --------- ---------
Book Value
Per Share $32.07 $31.31 2
Retained
Earnings
(000s) $199,600 $187,772 6
Common Equity
Ratio (%) 59.0% 58.3% 1
C H ENERGY GROUP, INC
Selected Financial Indices
12 Months Ended March 31, 2005 vs. Calendar Year 2004
12 Months
Ended Calendar
March 31, Year
2005 2004
--------- ---------
Earnings Per
Share -
(Basic) $2.52 $2.69
Earned Return
on Common
Equity (Per
Books) 7.96% 8.52%
Pretax Coverage of
Total Interest
Charges, excluding
AFDC 4.24 x 4.34 x
Dividends
Declared $2.16 $2.16
Pay-out Ratio 85.7% 80.3%
Percent of
Cash Construction
Expenditures
Financed
from Internal
Funds 100.0% 100.0%
Common Equity
Ratio 59.0% 58.3%
Retained
Earnings
($000) $199,600 $187,772
Book Value Per
Share (End
of Period) $32.07 $31.31
CH Energy Group Segment Information - 12 Months Ended March 31, 2005
Regulated Unregulated
------------------ ---------------------
($000s
Except
Earnings Natural Fuel Oil
Per Share) Electric Gas Distribution Other Elim(s). Total
--------- ------------------ --------------------- -------- -------
Revenues
from
external
customers $437,964 $129,956 $245,677 $1,010 - $814,607
Intersegment
revenues 12 276 - - ($288) -
------------------- --------------------- ------ -------
Total
Revenues $437,976 $130,232 $245,677 $1,010 ($288) $814,607
Earnings
before
income
taxes $47,255 $15,828 $2,539 $2,906 - $68,528
Net Income $27,288 $8,893 $1,526 $2,067 - $39,774
Earnings per
share
(basic) $1.73 $0.56 $0.10 $0.13 (1) - $2.52
Segment
Assets @
3/31/05 $781,049 $265,283 $149,049 $116,230 ($791) $1,310,820
(1) The amount of Unregulated EPS attributable to CHEC's other
business activities was $0.03 per share, with the balance of $0.10
per share resulting primarily from investment and business development
activities.
CH Energy Group Segment Information - 12 Months Ended March 31, 2004
Regulated Unregulated
-------------- -----------------
($000s
Except Natural Fuel Oil
Earnings Per Electric Gas Distribution Other Elim(s). Total
Share) -------------- ------------------ ------- -----
------------
Revenues
from external
customers $462,159 $125,572 $215,704 $1,100 - $804,535
Intersegment
revenues 9 337 - - ($346) -
--------------- -------------------- ------ ---------
Total
Revenues $462,168 $125,909 $215,704 $1,100 ($346) $804,535
Earnings
before
income
taxes $49,611 $17,798 $6,396 $5,790 - $79,595
Net Income $29,252 $9,774 $3,890 $3,864 - $46,780
Earnings per
share
(basic) $1.85 $0.62 $0.25 $0.24 (1) - $2.96
Segment
Assets @
3/31/04 $827,688 $245,004 $143,574 $121,115 ($460) $1,336,921
(1) The amount of Unregulated EPS attributable to CHEC's other
business activities was $0.02 per share, with the balance
of $.22 per share resulting primarily from
investment activity.
CH Energy Group Segment Information - Quarter Ended March 31, 2005
Regulated Unregulated
-------------- ------------------
($000s
Except Natural Fuel Oil
Earnings Electric Gas Distribution Other Elim(s). Total
Per Share) --------------- ------------------- -------- -----
---------
Revenues
from external
customers $126,658 $63,430 $95,756 $245 - $286,089
Intersegment
revenues 3 167 - - ($170) -
----------------- ------------------- -------- -------
Total
Revenues $126,661 $63,597 $95,756 $245 ($170) $286,089
Earnings before
income
taxes $12,839 $12,239 $7,770 $1,263 - $34,111
Net Income $7,494 $7,254 $4,663 $928 - $20,339
Earnings per share
(basic) $0.48 $0.46 $0.30 $0.05 (1) - $1.29
Segment
Assets @
3/31/05 $781,049 $265,283 $149,049 $116,230 ($791) $1,310,820
(1) The amount of Unregulated EPS attributable to CHEC's other
business activities was $0.01 per share, with the balance of $0.04
per share resulting primarily from investment and business
development activities.
CH Energy Group Segment Information - Quarter Ended March 31, 2004
Regulated Unregulated
-------------- -----------------
($000s
Except Natural Fuel Oil
Earnings Electric Gas Distribution Other Elim(s). Total
Per Share) --------------- -------------------- ------- -----
----------
Revenues from
external
customers $119,269 $58,704 $84,782 $238 - $262,993
Intersegment
revenues 3 150 - - ($153) -
---------------- ------------------- -------- -----
Total
Revenues $119,272 $58,854 $84,782 $238 ($153) $262,993
Earnings before
income
taxes $16,131 $11,969 $10,116 $1,046 - $39,262
Net Income $9,364 $6,882 $6,070 $673 - $22,989
Earnings per
share
(basic) $0.59 $0.44 $0.39 $0.04 (1) - $1.46
Segment
Assets @
3/31/04 $827,688 $245,004 $143,574 $121,115 ($460) $1,336,921
(1) The amount of Unregulated EPS attributable to CHEC's other
business activities was $0.01 per share, with the balance of $0.03 per
share resulting primarily from investment activity.
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