GMP Announces Second Quarter Earnings.COLCHESTER, Vt. -- Green Mountain Power Corporation (NYSE NYSE See: New York Stock Exchange : GMP GMP (guanosine monophosphate): see guanine. ) today announced consolidated earnings of $0.38 per share of common stock, diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , for the second quarter of 2006, compared with $0.45 per share, diluted, for the same period in 2005. Earnings for the first six months of 2006 are $1.06 per share, diluted, compared with $1.02 per share, diluted, for the same period in 2005. "We are pleased with the operating results for the second quarter. Our retail and other operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the second quarter of 2006 increased by $0.8 million (1.6%) compared to the same quarter of 2005 and revenues from sales of our excess power to the wholesale market while prices were high increased $3.7 million (91.7%) compared to the same quarter in 2005," said Christopher L. Dutton, President and Chief Executive Officer. "We expect diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the year to range between $1.85 to $2.15." In the second quarter of 2006, total operating revenues increase by $4.5 million while power supply expenses increased by $2.3 million, compared with the same period last year. The increase in operating revenues resulted from the sale of excess electricity at prices above our underlying power purchase or generation costs. The Company's power supply resources exceeded customer demand during the second quarter of 2006 due to increased purchases of energy under a long-term contract for output from the Vermont Yankee nuclear power plant Vermont Yankee is a boiling water reactor (BWR) type nuclear power plant currently owned by Entergy Nuclear. It is located in the town of Vernon, Vermont and generates 640 megawatts (MWe) of electricity. The plant began commercial operations in 1972. and the Company's election to exercise contract rights to increase deliveries at below market prices from one of its suppliers during 2006. We also benefited in 2006 from added precipitation-based production by Company hydro hy·dro adj. Hydroelectric. n. pl. hy·dros 1. Hydroelectric power. 2. A hydroelectric power plant. power plants (which produced low-cost electricity) that replaced higher priced market purchases made during the second quarter of 2005. Wholesale revenue increased because the Company was able to sell approximately 57,000 megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt hours of excess power supply in the
wholesale energy market. The Company sold some of its expected energy
deliveries for April and May 2006 late last year when prices were very
high, which added an estimated $0.11 to earnings in the second quarter
of 2006. Retail electricity consumption decreased by 0.5 percent in 2006
but the effect on retail revenue was offset by a rate increase of 0.9
percent that took effect in January, 2006.
Other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased $2.6 million in the second quarter of 2006, compared with the same quarter in 2005, reflecting expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the proposed acquisition of the Company by an affiliate of Gaz Metro Incorporated, increased expenses associated with the sale of utility services to commercial and municipal customers and increased expenses for employee benefits. "We are pleased with our present outlook. Following the announcement of our pending merger, on June 22, 2006, S&P placed its 'BBB' long-term credit rating of the Company on CreditWatch with positive implications," said Mr. Dutton.
Green Mountain Power Corporation Quarterly Earnings Summary
Three Months Six months
Ended ended
June 30 June 30
2006 2005 2006 2005
-------------------------------------
in thousands except per share amounts
Retail revenues $51,677 $50,870 $105,627 $105,291
Wholesale revenues 7,703 4,018 14,729 7,846
-------------------------------------
Total operating revenues $59,380 $54,888 $120,356 $113,137
-------------------------------------
Net income $ 2,026 $ 2,381 $ 5,638 $ 5,361
Net income-continuing operations 2,026 2,384 5,561 5,367
Net income(loss)-discontinued
operations - (3) 77 (6)
Basic earnings per share-
continuing operations $ 0.39 $ 0.46 $ 1.06 $ 1.04
Basic earnings per share-
discontinued operations - - 0.01 -
-------------------------------------
Basic earnings per Common share $ 0.39 $ 0.46 $ 1.07 $ 1.04
=====================================
Diluted earnings per share-
continuing operations $ 0.38 $ 0.45 $ 1.05 $ 1.02
Diluted earnings per share-
discontinued operations - - 0.01 -
-------------------------------------
Fully diluted earnings per
common share $ 0.38 $ 0.45 $ 1.06 $ 1.02
=====================================
Dividends declared per share $ 0.28 $ 0.25 $ 0.56 $ 0.50
Weighted average shares of
common stock outstanding-Basic 5,260 5,186 5,251 5,173
Weighted average shares of
common stock outstanding-
Diluted 5,321 5,271 5,330 5,261
Certain statements in this press release may be forward-looking in nature, or "forward-looking" statements as defined in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. 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. Actual results may differ from those expressed or implied in 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. . The forward-looking statements contained in this press release are subject to a number of factors and uncertainties, including regulatory and judicial decisions or legislation, changes in regional market and transmission rules, energy supply and demand and pricing, contractual commitments, availability, terms and use of capital, general economic and business environment, changes in technology, nuclear and environmental issues, 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 (including stranded strand 1 n. The land bordering a body of water; a beach. v. strand·ed, strand·ing, strands v.tr. 1. To drive or run ashore or aground. 2. costs, and weather), and other factors and uncertainties disclosed from time to time in our filings with the Securities and Exchange Commission. Any forward-looking statements in this press release should be evaluated in light of these important factors and uncertainties. The Company disclaims any obligation to update any information in this press release. |
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