Central Vermont Announces Third Quarter Results.Business Editors RUTLAND Rutland, county, England Rutland, county (1991 pop. 32,400), 152 sq mi (394 sq km), central England. Rutland has a rolling terrain and is a rural upland area largely devoted to tillage and pasturage. , Vt.--(BUSINESS WIRE)--Nov. 1, 2000 Central Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. Public Service (CV-NYSE) today reported net income of $4.8 million, or $.38 per share of common stock, for the third quarter of 2000, compared to net income of $.4 million, or $.00 per share of common stock, for the third quarter of 1999. Excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. gains related to a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. Millstone millstone Either of two flat, round stones used for grinding grain to make flour. The stationary bottom stone is carved with shallow grooved channels that radiate from the centre. The upper stone rotates horizontally, and has a central hole through which grain is poured. Unit # 3 settlement and a favorable 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). Valley Electric Company (CVEC CVEC Constant Velocity Expansion Chamber (type of tuned pipe) ) First Circuit Court of Appeals decision, the Company incurred a loss of $.5 million, or $.08 per share of common stock, for the third quarter of 2000. There were no comparable nonrecurring gains in the third quarter of 1999. For the nine months ended September September: see month. 30, 2000 CV had net income of $13.0 million, or $1.02 per share of common stock, compared to net income of $13.6 million, or $1.06 per share of common stock, for the nine months ended September 30, 1999. Excluding nonrecurring gains related to a favorable Millstone Unit # 3 settlement and a favorable CVEC First Circuit Court of Appeals decision, net income was $8.1 million, or $.60 per share of common stock, for the nine months ended September 30, 2000. There were no comparable nonrecurring gains in the nine months ended September 30, 1999. Higher third quarter 2000 earnings compared to last year resulted primarily from the following factors: -- a nonrecurring gain from the Millstone Unit #3 settlement of $3.2 million 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. , or $.28 per share of common stock, related to the successful conclusion of owners' 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. with Northeast Utilities Northeast Utilities (NU) is a publicly-traded, Fortune 500 energy company headquartered in Berlin, Connecticut, with several regulated subsidiaries offering retail electricity and natural gas service to more than 2 million customers in New England. over the Nuclear 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. Commission's 1996 shut down of the Millstone Unit #3 Nuclear Power Plant due to operational and management deficiencies; -- a nonrecurring gain from the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of CVEC's provision for rate refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies of $2.0 million after-tax, or $.18 per share of common stock, related to a favorable First Circuit Court of Appeals decision allowing CVEC to recover all of its power costs in rates; -- lower utility revenues of $2.2 million after-tax, or $.19 per share of common stock, primarily resulting from a decrease in retail prices and a 3.54% (20,632 mWh) decrease in retail mWh sales; -- expenses booked in the third quarter of 2000 of $1.7 million after-tax, or $.15 per share of common stock, for expected under recovery of power costs to be incurred on the Hydro-Quebec (HQ) power contract during the fourth quarter of 2000 (no under recovery of HQ power costs was 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. during the third quarter of 1999 since it had been previously accrued in the fourth quarter of 1998); -- lower net losses of $.4 million after-tax, or $.04 per share of common stock, at SmartEnergy Services, Inc.; -- higher net earnings of $.2 million after-tax, or $.01 per share of common stock, at Catamount catamount: see puma. Energy Corporation; and -- lower operating and other costs of $2.4 million after-tax, or $.21 per share of common stock, primarily due to decreased distribution costs distribution costs distribute npl → Vertriebskosten pl of $1.5 million after-tax. Lower nine months ended September 30, 2000 earnings compared to last year resulted primarily from the following factors: -- a nonrecurring gain from the Millstone Unit # 3 settlement of $3.2 million after-tax, or $.28 per share of common stock, related to the successful conclusion of owners' litigation with Northeast Utilities over the Nuclear Regulatory Commission's 1996 shut down of the Millstone Unit # 3 Nuclear Power Plant due to operational and management deficiencies; -- a nonrecurring reversal of CVEC's provision for rate refund of $1.7 million after-tax, or $.14 per share of common stock, related to a favorable First Circuit Court of Appeals decision allowing CVEC to recover all of its power costs in rates; -- lower utility revenues of $1.0 million after-tax, or $.09 per share of common stock, primarily resulting from a decrease in retail prices; -- higher net power costs of $.8 million after tax, or $.07 per share of common stock; -- expenses of $5.0 million after-tax, or $.45 per share of common stock, related to the under recovery of power costs on the HQ power contract (no under recovery of HQ power costs was recognized during the comparable nine months of 1999 since it had been previously accrued in the fourth quarter of 1998); -- net losses at SmartEnergy Services, Inc. of $2.4 million after-tax, or $.21 per share of common stock, compared to SmartEnergy Services' losses for the comparable period in 1999 of $1.0 million after-tax, primarily related to SmartEnergy's partial ownership of Home Service Store, Inc; -- lower net earnings of $.5 million after-tax, or $.04 per share of common stock, at Catamount Energy Corporation; and -- lower operating and other costs of $3.0 million after-tax, or $.31 per share of common stock, primarily due to decreased distribution costs of $1.5 million after-tax. Net income, including nonrecurring gains, was $16.1 million, or $1.24 per share of common stock, for the twelve months ended September 30, 2000 compared to $13.0 million, or $.97 per share of common stock, for the comparable 1999 period. For the twelve months ended September 30, 2000, return on average common equity allocated to the Vermont utility business was 10.0 percent, while CV's 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: return on average common equity was 7.6 percent. Net cash flow provided by operating activities was $48.2 million for the nine months ended September 30, 2000 versus $32.1 million for the comparable 1999 period. The increase is primarily due to changes in working capital. CV is Vermont's largest electric utility, serving over 140,000 customers state-wide. Through its subsidiary, Connecticut Valley, CV also serves over 10,000 customers in New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). . This document contains statements that are forward looking. These statements are based on current expectations that are subject to significant risks and uncertainties. Actual results will depend, among other things, upon the actions of regulators, the outcome of litigation involving Connecticut Valley and Central Vermont, the performance of Vermont Yankee Yankee, term used by Americans generally in reference to a native of New England and by non-Americans, especially the British, in reference to an American of any section. , weather conditions, and the performance of the Company's 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. businesses. The Company cannot predict the outcome of any of these matters. The financial information for the related periods is shown below:
Central Vermont Public Service Corporation-Consolidated
Earnings Release (Unaudited)
(Dollars in thousands, except per share amounts)
Quarter Ended
September 30
Central Vermont Public Service Corporation-Consolidated:
2000 1999
Retail MWH Sales 562,588 583,220
Operating revenues $ 73,947 $ 113,221
Net income $ 4,802 (a,b) $410 (c)
Preferred stock dividend requirements $ 445 $ 466
Earnings (losses) available for
common stock $ 4,357 (a,b) ($56) (c)
Average shares of common stock
outstanding 11,502,433 11,463,019
Earnings (losses) per basic and
diluted share of common stock $ .38 (a,b) $ .00 (c)
Net cash provided by operating
activities $ 13,925 ( $ 804)
Catamount Energy Corporation:
Earnings per share of
common stock $ .04 $ .03
SmartEnergy Services, Inc.:
Earnings per share of
common stock $ .00 ($ .04)
(a) Includes accrual of estimated future under recovery of Hydro
Quebec (HQ) power costs for the 4th quarter of 2000 of $1.7 million
after-tax, or $.15 per share; also includes reversal of accruals for
HQ power costs previously booked in the 2nd quarter of 2000, totaling
$1.7 million after-tax, or $.15 per share.
(b) Includes nonrecurring gains of $3.2 million after-tax, or $.28 per
share from Millstone Unit # 3 settlement and $2.0 million after-tax,
or $.18 per share from reversal of CVEC provision for rate refund.
(c) Includes reversal of accruals for HQ power costs previously booked
in the 4th quarter of 1998, totaling $1.1 million after-tax or $.10
per share.
Central Vermont Public Service Corporation-Consolidated
Earnings Release (Unaudited)
(Dollars in thousands, except per share amounts)
Nine Months Ended
September 30
Central Vermont Public Service Corporation-Consolidated:
2000 1999
Retail MWH Sales 1,749,041 1,749,501
Operating revenues $ 247,763 $ 305,002
Net income $13,035(a,b,c) $13,556 (d,e)
Preferred stock dividend
requirements $ 1,335 $ 1,397
Earnings (losses) available for
common stock: $11,700(a,b,c) $12,159 (d,e)
Average shares of common stock
outstanding 11,482,006 11,462,196
Earnings (losses) per basic and
diluted share of common stock $ 1.02 (a,b,c) $ 1.06 (d,e)
Net cash provided by operating
activities $ 48,243 $ 32,095
Catamount Energy Corporation:
Earnings per share of
common stock $ .07 $ .11
SmartEnergy Services, Inc.:
Earnings per share of
common stock ($ .21) ( $.09)
(a) Includes accruals for 2nd, 3rd, and 4th quarters of 2000 for HQ
estimated future under recovery of power costs of $5.0 million
after-tax, or $.45 per share; also includes reversal of accruals for
HQ power costs previously booked in the 4th quarter of 1999 and 1st
and 2nd quarters of 2000, totaling $5.0 million after-tax, or $.45 per
share.
(b) Includes nonrecurring gains of $3.2 million after-tax, or $.28 per
share from Millstone Unit #3 settlement and $1.7 million after-tax, or
$.14 per share from reversal of CVEC provision for rate refund.
(c) Includes reversal of accruals for Connecticut Valley power costs
previously booked in the 4th quarter of 1999, totaling $.7 million
after-tax, or $.07 per share.
(d) Includes reversal of accruals for HQ power costs previously booked
in the 4th quarter of 1998, totaling $3.2 million after-tax or $.29
per share.
(e) Includes reversal of accruals for Connecticut Valley power costs
previously booked in the 4th quarter of 1998, totaling $.7 million
after-tax, or $.06 per share.
Central Vermont Public Service Corporation-Consolidated
Earnings Release (Unaudited)
(Dollars in thousands, except per share amounts)
Twelve Months Ended
September 30
Central Vermont Public Service Corporation-Consolidated:
2000 1999
Retail MWH Sales 2,339,980 2,343,499
Operating revenues $ 362,576 $ 388,951
Net income before extraordinary
items $16,063(a,b,c) $ 13,839 (d,e)
Net income $16,063(a,b,c) $12,957 (d,e)
Preferred stock dividend
requirements $ 1,800 $ 1,883
Earnings available for common
stock $14,263(a,b,c) $11,074 (d,e)
Average shares of common stock
outstanding 11,478,025 11,461,642
Basic and Diluted Earnings Per
Share:
Earnings before extraordinary
items $1.24 (a,b) $ 1.04 (d,e)
Extraordinary items $ .00 ($ .07) (f)
Earnings per basic and diluted
share of common stock $1.24 (a,b,c) $.97 (d,e,f)
Net cash provided by operating
activities $ 47,380 $ 36,995
Catamount Energy Corporation:
Earnings per share of common stock $ .14 $ .21
SmartEnergy Services, Inc.
Earnings per share of common stock ($ .37) ($ .11)
(a) Includes reversal of accruals for HQ power costs of $1.1 million
after-tax, or $.09 per share, booked in the 4th quarter of 1998;
includes accruals for 1st, 2nd , 3rd, and 4th quarters of 2000 for HQ
estimated future under recovery of power costs of $6.7 million
after-tax , or $.60 per share, booked in the 4th quarter of 1999 and
1st , 2nd , and 3rd quarters of 2000; also includes reversal of
accruals for HQ power costs of $5.0 million after-tax , or $.45 per
share, booked in the 4th quarter of 1999 and the 1st , and 2nd
quarters of 2000.
(b) Includes nonrecurring gains of $3.2 million after-tax, or $.28 per
share from Millstone Unit #3 settlement and $1.7 million after-tax, or
$.14 per share from reversal of CVEC provision for rate refund.
(c) Includes reversal of accruals for Connecticut Valley power costs
of $1.1 million after-tax, or $.10 per share, booked in the 4th
quarter of 1998 and the 1st and 4th quarters of 1999; also includes
accruals for 2000 Connecticut Valley estimated future under recovery
of power costs of $.8 million after-tax, or $.07 per share, booked in
the 4th quarter of 1999.
(d) Includes reversal of accruals for HQ power costs of $3.2 million
after-tax, or $.29 per share, booked in the 4th quarter of 1998; also
includes accrual for 1999 HQ estimated future under recovery of power
costs of $4.3 million after-tax, or $.38 per share, booked in the 4th
quarter of 1998.
(e) Includes accruals for 1999 Connecticut Valley estimated future
under recovery of power costs of $.4 million after-tax, or $.03 per
share, booked in the 4th quarter of 1998 and the nine month period in
1999; also includes accrual for Connecticut Valley rate refund
provision of $1.8 million after-tax, or $.16 per share, booked in the
4th quarter of 1998.
(f) Includes extraordinary charge for write off of Connecticut Valley
regulatory assets of $.9 million after-tax, or $.07 per share, booked
in the 4th quarter of 1998.
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