Central Vermont Public Service (NYSE: CV)
-- 2010 earnings of $21 million, up $0.3 million compared to 2009
- $2.8 million increase in purchased power expense
- $4.0 million decrease in other operating expenses
- $3.6 million increase in equity in earnings of affiliates
-- Fourth-quarter earnings of $5.3 million, up $3.1 million compared to
2009
- $1.4 million decrease in operating revenue
- $0.6 million increase in purchased power expense
- $5.8 million decrease in other operating expenses
- $1.0 million increase in equity in earnings of affiliates
-- Earnings for 2011 are forecasted to be in the range of $1.60 to $1.75
per diluted share.
Central Vermont Public Service (NYSE: CV) reported consolidated
earnings of $21 million, or $1.66 per diluted share of common
stock, for 2010, compared to $20.7 million, or $1.74 per diluted
share of common stock, for the same period in 2009. The lower 2010
earnings per diluted share of common stock are due to the
successful completion of our common stock at-the-market program
("ATM"), discussed below.
CV reported fourth-quarter 2010 consolidated earnings of $5.3
million, or 40 cents per diluted share of common stock, compared to
$2.2 million, or 18 cents per share, for the same period in
2009.
"We continue to make steady progress," Executive Chairman Bob
Young said. "Increased demand in the second half, attributable to
warmer weather during the summer and some easing of the economic
problems of the past couple of years, helped significantly.
"Vermont saw a decrease of roughly 1 percent in its unemployment
rate in 2010, and we are seeing signs of an improving economy,"
Young said. "In the meantime, we will continue to focus on
providing exemplary customer service, reliability and storm
management. We firmly believe that CV's value to investors is
intrinsically tied to the value we create for our customers."
2010 results compared to 2009
Operating revenue decreased $0.2 million, including a $16.3
million decrease in resale revenue and a $1.9 million decrease in
the provision for rate refund, offset by a $16.9 million increase
in retail revenue and a $1.2 million increase in other operating
revenue.
Resale revenue decreased due to lower 2010 contract prices
associated with the sale of our excess energy, and a decrease in
volumes sold due to the scheduled refueling outages at the Vermont
Yankee plant and Millstone Unit #3. The provision for rate refund
is primarily the net deferrals and refunds of over- or
under-collections of power, production and transmission costs as
required by the power cost adjustment clause within our alternative
regulation plan. This increase included the unfavorable impact of
$3.6 million of net deferrals and refunds in 2010 vs. the
unfavorable impact of $1.7 million of net deferrals and refunds in
2009. The increase in retail revenue primarily resulted from a 5.58
percent base rate increase, effective January 1, 2010, in addition
to a resurgence of retail demand in the second half of 2010. Other
operating revenue increased primarily due to higher levels of
mutual aid performed for other utilities in 2010 and the sale of
renewable energy credits.
Purchased power expense increased $2.8 million, including a $9
million increase in short-term purchases, due to higher retail load
and higher replacement power requirements, largely offset by a $6.4
million decrease in purchases under long-term contracts, due to the
extended scheduled refueling outage at the Vermont Yankee plant and
lower capacity costs from Hydro-Quebec.
Other operating expenses decreased $4 million, comprised
principally of a decrease in transmission expenses of $8.9 million,
resulting from higher NOATT reimbursements, partially offset by
higher rates from ISO-NE. Under the provisions of our alternative
regulation plan, changes in transmission costs are subject to
true-up in rates so there is no bottom-line impact. Other operating
expenses included a reduction in reserves for uncollectible
accounts of $2.1 million primarily due to a large customer
bankruptcy in 2009 and subsequent recovery in 2010. These decreases
were partly offset by increased service restoration costs of $5.6
million, of which $3.4 million of major storm costs were deferred
under our alternative regulation plan; increased employee benefit
costs of $1.2 million; increased environmental reserves and
insurance costs of $0.9 million; increased depreciation expense of
$0.6 million; increased property and other taxes of $0.7 million;
and increased production fuel costs of $0.5 million.
Equity in earnings of affiliates increased $3.6 million,
principally due to the return on the $20.8 million investment we
made in Transco in December 2009.
Other income, net decreased $0.4 million, largely due to changes
in the cash surrender value of variable life insurance policies
included in our Rabbi Trust.
Fourth quarter 2010 results compared to 2009
Fourth quarter operating revenue decreased $1.4 million for many
of the same reasons described above.
Purchased power expense increased $0.6 million over the same
period in 2009 primarily due to increased purchases from
independent power producers.
Other operating expenses decreased $5.8 million, largely due to
the $4.3 million decrease in transmission expenses primarily
resulting from higher NOATT reimbursements, and a reduction in
reserves for uncollectible accounts of $1.2 million primarily due
to a large customer bankruptcy in 2009 and subsequent recovery in
2010. Changes in transmission expense are subject to true-up in
rates so there is no bottom-line impact.
Equity in earnings of affiliates increased $1 million for the
same reasons described above.
Other income, net increased $0.7 million, largely due to higher
non-utility revenues and higher interest and dividend income.
2010 Common Stock Issuance
On January 15, 2010, we filed a Prospectus Supplement with the
SEC, noting that we entered into an equity distribution agreement
that allowed us to issue up to $45 million of common equity under
an ATM continuous offering program.
Earnings per share for 2010 reflect the impact of shares issued
under our ATM 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 sale of shares under this program
has been completed. The net proceeds of the offering were used for
general corporate purposes.
2011 Earnings Guidance
CV anticipates annual 2011 earnings to be in the range of $1.60
to $1.75 per diluted share. The earnings range reflects an approved
retail rate increase of 7.46 percent effective January 1, 2011 and
an allowed rate of return of 9.18 percent in 2011, down from 9.59
percent in 2010.
Webcast
CV will host an earnings teleconference and webcast on March 16,
2011, beginning at 11 a.m. Eastern Time. At that time, CV President
and CEO Larry Reilly, Executive Chairman Robert Young and Chief
Financial Officer Pamela Keefe will discuss the company's financial
results, as well as progress made toward achieving the company's
long-term strategy.
Interested parties may listen to the conference call live on the
Internet by selecting the "CVPS 2010 Year End Earnings 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 365459.
About CV
CV is Vermont's largest electric utility, serving approximately
159,000 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-K
On Tuesday, March 15, 2011, the company filed its annual 2010
Form 10-K 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 Per Diluted Share
Twelve Fourth
Months Quarter
2010 vs. 2010 vs.
2009 2009
----------- -----------
2009 Earnings per diluted share $ 1.74 $ 0.18
Year-over-Year Effects on Earnings:
(Higher) lower other operating expenses
(excludes exogenous deferral) (0.18) 0.03
Higher purchased power expense (0.13) (0.02)
(Higher) lower maintenance expenses (excludes
exogenous major storms) (0.11) 0.01
(Lower) higher other income, net (0.04) 0.04
(Higher) lower taxes other than income (0.04) 0.05
Lower operating revenue (0.01) (0.07)
Lower transmission expenses 0.43 0.20
Higher equity in earnings of affiliates 0.16 0.03
Other (includes income tax adjustments, impact
of additional common shares and various
items) (0.16) (0.05)
----------- -----------
2010 Earnings per diluted share $ 1.66 $ 0.40
=========== ===========
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 Twelve Months Ended
December 31 December 31
Condensed Income statement 2010 2009 2010 2009
---------- ---------- ---------- ----------
Operating revenues:
Retail sales $ 76,993 $ 71,997 $ 294,406 $ 277,529
Resale sales 11,335 13,027 37,957 54,279
Provision for rate refund (5,942) (561) (3,598) (1,689)
Other 3,203 2,490 13,160 11,979
---------- ---------- ---------- ----------
Total operating revenues 85,589 86,953 341,925 342,098
---------- ---------- ---------- ----------
Operating expenses:
Purchased power -
affiliates and other 40,736 40,091 160,774 157,982
Other operating expenses 38,294 44,084 156,151 160,195
Income tax (benefit)
expense 2,091 492 7,545 5,033
---------- ---------- ---------- ----------
Total operating expense 81,121 84,667 324,470 323,210
---------- ---------- ---------- ----------
Utility operating income 4,468 2,286 17,455 18,888
---------- ---------- ---------- ----------
Other income:
Equity in earnings of
affiliates 5,241 4,276 21,098 17,472
Other, net 744 3 1,078 1,511
Income tax expense (2,183) (1,632) (7,117) (5,640)
---------- ---------- ---------- ----------
Total other income 3,802 2,647 15,059 13,343
---------- ---------- ---------- ----------
Interest expense 2,953 2,753 11,560 11,482
---------- ---------- ---------- ----------
Net income 5,317 2,180 20,954 20,749
Dividends declared on
preferred stock 92 92 368 368
---------- ---------- ---------- ----------
Earnings available for
common stock $ 5,225 $ 2,088 $ 20,586 $ 20,381
========== ========== ========== ==========
Per common share data
Earnings per share of
common stock - basic $ 0.40 $ 0.18 $ 1.66 $ 1.75
Earnings per share of
common stock - diluted $ 0.40 $ 0.18 $ 1.66 $ 1.74
Average shares of common
stock outstanding - basic 13,144,056 11,697,392 12,370,486 11,660,170
Average shares of common
stock outstanding -
diluted 13,194,390 11,764,277 12,405,866 11,705,518
Dividends declared per
share of common stock $ 0.00 $ 0.00 $ 0.92 $ 0.92
Dividends paid per share of
common stock $ 0.23 $ 0.23 $ 0.92 $ 0.92
Supplemental financial
statement data
Balance sheet
Investments in affiliates $ 171,514 $ 129,733
Total assets $ 710,746 $ 632,152
Common stock equity $ 272,728 $ 231,423
Long-term debt (excluding
current portions) $ 188,300 $ 201,611
Cash Flows
Cash and cash equivalents
at beginning of period $ 2,069 $ 6,722
Cash provided by operating
activities 53,527 42,042
Cash used for investing
activities (91,405) (52,931)
Cash provided by financing
activities 38,485 6,236
---------- ----------
Cash and cash equivalents
at end of period $ 2,676 $ 2,069
========== ==========
Refer to our 2010 Form 10-K 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)
Historical Stock Chart
From May 2024 to Jun 2024
Central Vermont Public Service (NYSE:CV)
Historical Stock Chart
From Jun 2023 to Jun 2024
