Central Vermont Public Service (NYSE: CV)
- Year-to-date earnings of $0.5 million, or 2
cents per diluted share, $1.25 lower than 2010
- $13.1 million increase in operating
revenues
- $ 6.9 million increase in service restoration
costs (primarily Tropical Storm Irene)
- $ 5.0 million increase in exogenous cost
deferrals (mostly major storms, 2011 vs. 2010)
- $ 8.7 million increase in transmission
costs
- $ 4.9 million increase in equity in earnings
of affiliates
- $26.6 million in merger-related costs
(includes $19.5 million Fortis termination fee)
- Third-quarter loss of $8.6 million, or 65
cents per diluted share, $1.44 lower than 2010
- $ 2.7 million increase in operating
revenues
- $ 9.5 million increase in service restoration
costs (primarily Tropical Storm Irene)
- $ 5.0 million increase in exogenous cost
deferrals (mostly major storms, 2011 vs. 2010)
- $ 6.1 million increase in transmission
costs
- $ 1.5 million increase in equity in earnings
of affiliates
- $23.4 million in merger-related costs
(includes $19.5 million Fortis termination fee)
- Due to pending merger, earnings guidance is
discontinued
Central Vermont Public Service (NYSE: CV) reported consolidated
earnings of $0.5 million, or 2 cents per diluted share of common
stock, for the first nine months of 2011 compared to $15.6 million,
or $1.27 per diluted share of common stock, for the same period in
2010. The third-quarter results were a loss of $8.6 million or 65
cents per common share, $1.44 lower than in 2010.
The reduced earnings of $15.1 million for the nine months of
2011, compared to 2010 were primarily due to costs associated with
the company's pending sale to a subsidiary of Gaz Métro Limited
Partnership, Northern New England Energy Corporation, which
included a $19.5 million termination payment to Fortis Inc. Other
factors were increases in operating expenses, including service
restoration costs, partially offset by related deferrals as allowed
by our alternative regulation plan.
"While the earnings were negatively affected in the short term
by storm costs and costs related to the sale of the company, we
continue to operate efficiently," CVPS President and CEO Larry
Reilly said. "Under the sale agreement with Gaz Métro, we expect to
continue to pay our normal quarterly dividend of 23 cents per share
until closing.
"In the meantime, we are focused on providing customers with
top-notch service and working with Gaz Métro and Green Mountain
Power to plan and implement a smooth transition process," Reilly
said. "Teams that include employees from CVPS and GMP are
diligently working together to examine both companies' work
processes and best practices so we can take the best of both
companies and build one even better company to serve our collective
customers going forward."
Year-to-Date 2011 results compared to 2010
Operating revenues increased $13.1 million, including a $16.1
million increase in retail revenues, a $2.5 million increase in the
provision for rate refund, partially offset by a $4.2 million
decrease in resale revenue, and a $1.3 million decrease in other
operating revenues.
The increase in retail revenues primarily resulted from a 7.46
percent base rate increase, effective January 1, 2011, higher
customer usage due to colder winter and spring weather in 2011, and
the acquisition of Vermont Marble on September 1, 2011, including
Omya Industries, Inc., our largest industrial customer. The
provision for rate refund is the net impact in the period of
collections and refunds of amounts previously deferred, as required
by the power cost adjustment component of our alternative
regulation plan. Resale revenues decreased due to lower contract
prices associated with the sale of our excess energy, and lower
volume available for resale due to higher retail load. Other
operating revenues decreased primarily due to less mutual aid
provided to other utilities in 2011.
Purchased power expense decreased $1 million, comprised of a
decrease of $7.4 million from lower capacity costs and lower
volumes from ISO-NE, a decrease of $2.6 million from market
purchases related to 2010 refueling outages, and a $0.9 million
decrease from lower output from Hydro-Québec, partially offset by
an increase of $7.3 million due to higher output at the Vermont
Yankee plant in 2011 and higher related capacity costs, an increase
of $1.9 million due to higher output and market rates from
independent power producers, and $0.7 million of nuclear outage
deferrals in 2010.
Other operating expenses increased $15.8 million. This included
a $6.9 million increase in service restoration costs, related to
Tropical Storm Irene in August 2011, partially offset by the cost
of a major storm in February 2010. Also included was an increase of
$8.7 million in transmission expenses driven by higher rates from
ISO-NE, higher Vermont Transmission Agreement billings, net of
higher NEPOOL Open Access Transmission Tariff reimbursements, a
$2.4 million increase in regulatory amortizations, a $0.9 million
increase in depreciation expense due to an increase in utility
plant assets, including the acquisition of Vermont Marble, and
various other items. These increases were partially offset by a $5
million net increase in regulatory deferrals, including $8.6
million of 2011 exogenous cost deferrals mostly related to Tropical
Storm Irene, partially offset by $3.6 million of 2010 exogenous
cost deferrals related to major storms and tax law changes. We also
had a $1.3 million decrease in operating income tax expense as a
result of a lower level of earnings.
Equity in earnings of affiliates increased $4.9 million due to
the return on the $34.9 million investment that we made in Transco
in December 2010.
Other, net decreased $26.6 million primarily due to a $19.5
million termination payment to Fortis Inc., $6.6 million of other
merger-related costs, and $0.4 million of lower income from
variable life insurance policies.
Third quarter 2011 results compared to
2010 Third quarter operating revenues increased $2.7 million
for many of the same reasons cited above.
Purchased power expense decreased $3.2 million for many of the
same reasons cited above.
Other operating expenses increased $12.8 million for the same
reasons described above.
Equity in earnings of affiliates increased $1.5 million for the
same reason cited above.
Other, net decreased $24 million for the same reasons cited
above.
2010 Common Stock Issuance Earnings per
share for 2011 reflect the impact of shares issued under our
continuous offering equity program. From April to December 2010, CV
sold an aggregate of 1,498,745 shares in open market trading and
direct placements under this program for aggregate gross proceeds
of approximately $30.6 million. The net proceeds of the offering
were used for general corporate purposes. No equity issues are
anticipated in 2011.
2011 Earnings Guidance Due to the pending
merger, the Company has discontinued earnings guidance.
Webcast CV will host an earnings
teleconference and webcast on November 9, 2011, beginning at 2 p.m.
Eastern Time. At that time, CV President and CEO Larry Reilly and
Chief Financial Officer Pamela Keefe will discuss the company's
financial results and recent developments in the company's planned
sale and merger.
Interested parties may listen to the conference call live on the
Internet by selecting the "CVPS 2011 3rd Quarter Earnings
Conference Call" link on the "Investor Relations" section of the
company's website at www.cvps.com. An audio archive of the call
will be available later that day at the same location or by dialing
1-877-660-6853 within the U.S. or internationally by dialing
1-201-612-7415 and entering Account 286 and Conference ID
380592.
About CV CV is Vermont's largest electric
utility, serving more than 160,000 customers statewide. CV's
non-regulated subsidiary, Catamount Resources Corporation, sells
and rents electric water heaters through a subsidiary, SmartEnergy
Water Heating Services.
Form 10-Q On Tuesday, November 8, 2011,
the company filed its quarterly Form 10-Q with the Securities and
Exchange Commission. A copy of that report is available on our web
site, www.cvps.com, under the "Investor Relations" section. Please
refer to it for additional information regarding our condensed
consolidated financial statements, results of operations, capital
resources and liquidity.
Reconciliation of Earnings (Losses) Per
Diluted Share
First Nine
Months Third Quarter
2011 vs. 2010 2011 vs. 2010
--------------- ---------------
2010 Earnings per diluted share $ 1.27 $ 0.79
Major Statement of Operations Variances:
------------------------------------------
Higher operating revenue - retail sales
volume 0.06 0.02
Merger-related fees (1.17) (1.03)
2010 Exogenous cost deferral, net of
costs incurred (major storm in February
2010) 0.00 (0.16)
Variable life insurance (0.03) (0.06)
Other (includes impact of additional
common shares, income tax adjustments,
and various items) (0.11) (0.21)
--------------- ---------------
2011 Earnings (losses) per diluted share $ 0.02 $ (0.65)
=============== ===============
Forward-Looking Statements Statements
contained in this press release that are not historical fact are
forward-looking statements intended to qualify for the safe-harbors
from the liability established by the Private Securities Litigation
Reform Act of 1995. Statements made that are not historical facts
are forward-looking and, accordingly, involve estimates,
assumptions, risks and uncertainties that could cause actual
results or outcomes to differ materially from those expressed in
the forward-looking statements. Actual results will depend, among
other things, upon the actions of regulators, performance of the
Vermont Yankee nuclear power plant, effects of and changes in
weather and economic conditions, volatility in wholesale electric
markets, volatility in the financial markets, and our ability to
maintain our current credit ratings. These and other risk factors
are detailed in CV's Securities and Exchange Commission filings. CV
cannot predict the outcome of any of these matters; accordingly,
there can be no assurance that such indicated results will be
realized. Readers are cautioned not to place undue reliance on
these forward-looking statements that speak only as of the date of
this press release. CV does not undertake any obligation to
publicly release any revision to these forward-looking statements
to reflect events or circumstances after the date of this press
release.
Central Vermont Public Service Corporation - Consolidated
Earnings Release
(dollars in thousands, except per share amounts)
Three months ended Nine months ended
Condensed Income September 30 September 30
statement 2011 2010 2011 2010
------------------------ ----------- ----------- ----------- -----------
Operating revenues:
Retail sales $ 78,643 $ 73,766 $ 233,539 $ 217,413
Resale sales 4,973 8,299 22,412 26,622
Provision for rate
refund 1,318 18 4,876 2,344
Other 3,117 3,309 8,577 9,957
----------- ----------- ----------- -----------
Total operating revenues 88,051 85,392 269,404 256,336
----------- ----------- ----------- -----------
Operating expenses:
Purchased power -
affiliates and other 37,863 41,109 118,993 120,038
Other operating
expenses 44,001 31,247 133,693 117,857
Income tax expense 1,762 4,407 4,138 5,454
----------- ----------- ----------- -----------
Total operating
expense 83,626 76,763 256,824 243,349
----------- ----------- ----------- -----------
Utility operating income 4,425 8,629 12,580 12,987
----------- ----------- ----------- -----------
Other (loss) income:
Equity in earnings of
affiliates 6,821 5,347 20,749 15,857
Other, net (23,484) 491 (26,298) 334
Income tax benefit
(expense) 7,140 (1,631) 3,616 (4,934)
----------- ----------- ----------- -----------
Total other (loss)
income (9,523) 4,207 (1,933) 11,257
----------- ----------- ----------- -----------
Interest expense 3,548 2,846 10,132 8,607
----------- ----------- ----------- -----------
Net (loss) income (8,646) 9,990 515 15,637
Dividends declared on
preferred stock 92 92 276 276
----------- ----------- ----------- -----------
(Loss) earnings
available for common
stock $ (8,738) $ 9,898 $ 239 $ 15,361
=========== =========== =========== ===========
Per common share data
------------------------
(Loss) earnings per
share of common stock -
basic $ (0.65) $ 0.79 $ 0.02 $ 1.27
(Loss) earnings per
share of common stock -
diluted $ (0.65) $ 0.79 $ 0.02 $ 1.27
Average shares of common
stock outstanding -
basic 13,425,986 12,516,488 13,393,293 12,109,796
Average shares of common
stock outstanding -
diluted 13,425,986 12,545,987 13,482,376 12,140,191
Dividends declared per
share of common stock $ 0.23 $ 0.23 $ 0.92 $ 0.92
Dividends paid per share
of common stock $ 0.23 $ 0.23 $ 0.69 $ 0.69
Supplemental financial
statement data
------------------------
Balance sheet
Investments in
affiliates $ 178,343 $ 134,802
Total assets $ 751,786 $ 646,297
Common stock equity $ 262,409 $ 253,966
Long-term debt
(excluding current
portions) $ 232,281 $ 158,300
Cash Flows
Cash and cash
equivalents at
beginning of period $ 2,676 $ 2,069
Cash provided by
operating activities 41,721 38,042
Cash used for
investing activities (43,738) (21,623)
Cash provided by (used
for) financing
activities 1,051 (14,543)
----------- ----------- ----------- -----------
Cash and cash
equivalents at end of
period $ 1,710 $ 3,945
=========== =========== =========== ===========
Refer to our 2011 Form 10-Q for additional information
Media Inquiries: Steve Costello Director of Public Affairs (802)
747-5427 e-mail: Email Contact (802) 742-3062 (pager) Contact:
Pamela Keefe Senior Vice President Chief Financial Officer and
Treasurer (802) 747-5435 e-mail: Email Contact
Central Vermont Public Service (NYSE:CV)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Central Vermont Public Service (NYSE:CV)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024