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UNITED STATES Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) May 10, 2006 CENTRAL VERMONT PUBLIC SERVICE CORPORATION Vermont 1-8222 03-0111290 77 Grove Street, Rutland, Vermont 05701 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (802) 773-2711 N/A Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Item 2.02. Results of Operations and Financial Condition. Attached hereto as Exhibit 99.1 and incorporated herein by reference is the text of the registrant's news release issued on May 10, 2006 announcing its financial results for the first quarter ended March 31, 2006. As discussed in Exhibit 99.1, the news release contains forward-looking statements within the meaning of the federal securities laws. These statements are present expectations, and are subject to the limitations listed therein, and in Central Vermont's other filings with the Securities and Exchange Commission, including that actual events or results may differ materially from those in the forward-looking statements. The foregoing information (including Exhibit 99.1) is being furnished under "Item 2.02. Results of Operations and Financial Condition" and "Item 7.01. Regulation FD Disclosure." Such information (including Exhibit 99.1) is furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934. An analyst conference call to review the first quarter 2006 results will be held on Thursday, May 11, 2006 at 2:00 p.m. Eastern Time. A live audio web cast of the conference call will be available to the public on a listen-only basis. To listen to the web cast go to www.cvps.com and click on the web cast link. Central Vermont's news releases, current financial information, SEC filings, and Investor Relations presentations are accessible at the same web site. Item 7.01. Regulation FD Disclosure. See "Item 2.02. Results of Operations and Financial Condition" above. Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description of Exhibit 99.1 Central Vermont's news release dated May 10, 2006. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CENTRAL VERMONT PUBLIC SERVICE CORPORATION By Edmund F. Ryan May 10, 2006 EXHIBIT INDEX Exhibit Number Description of Exhibit 99.1 Central Vermont's news release dated May 10, 2006. EXHIBIT 99.1 Central Vermont Public Service NEWS RELEASE For Immediate Release: May 10, 2006 Central Vermont reports first quarter earnings RUTLAND, VT - Central Vermont Public Service (NYSE: CV) reported first quarter 2006 consolidated earnings of $4.1 million, or 32 cents per diluted share of common stock. This compares to a first quarter 2005 loss of $4.6 million, or 39 cents per diluted share of common stock. First quarter 2005 results included a $21.8 million pre-tax charge to earnings, or 91 cents per diluted share of common stock, related to the Vermont Public Service Board's Order issued on March 29, 2005 ("Rate Order"). "With the events of 2005 behind us, our primary focus continues to be on restoring the company's financial health to achieve investment grade. Our financial restoration plan is showing signs of improvement. That said, we cannot maintain superior customer service and restore financial health without increases in our retail rates," CVPS President Bob Young said. Quarterly Performance Summary - 2006 versus 2005 Purchased power costs increased $0.6 million pre-tax in 2006 as compared to 2005. Last year included first-quarter Rate Order charges of $2.5 million. The remaining $3.1 million increase for 2006 versus 2005 is primarily due to the following factors: Other operating expenses decreased $7.6 million pre-tax in 2006 as compared to 2005. Last year included first-quarter Rate Order charges of $10.7 million. The remaining $3.1 million increase for 2006 versus 2005 is primarily due to the following factors: Taxes on income increased $7.9 million in 2006 versus 2005, reflecting the effect of the Rate Order charges in the first quarter of 2005. Income taxes fluctuate with the level of pre-tax earnings in relation to permanent differences, tax credits, tax settlements and changes in valuation allowances for the periods. Other factors that affected first-quarter 2006 results compared to the same period in 2005 included: 2005 Rate Order: The Rate Order resulted in a $21.8 million pre-tax charge to utility earnings in the first quarter of 2005. The primary components of charge included: 1) a revised calculation of overearnings for the period 2001 - 2003; 2) application of the gain resulting from termination of the power contract with Connecticut Valley to reduce costs; 3) a customer refund for the period April 7, 2004 through March 31, 2005; and 4) amortization of costs and other adjustments. This affected various line items on CV's 2005 income statement as described in the variance discussion above. The Rate Order also included, among other things, a 2.75 percent rate reduction beginning April 1, 2005 and a 10 percent return on equity (reduced from 11 percent). Non-utility Business CV began reporting Catamount's results of operations as discontinued operations in the fourth quarter of 2005. First-quarter 2005 earnings from discontinued operations amounted to about $0.3 million or 2 cents per diluted share of common stock. 2006 Financial Guidance Webcast Interested parties may listen to the conference call live on the Internet by selecting the "Q1 2006 Central Vermont Public Service Earnings Conference Call" link on CV's homepage at www.cvps.com. An audio archive of the call will be available at approximately 4:30 p.m. EST at www.cvps.com or by dialing 1-888-286-8010 and entering passcode 24311247. About CV Forward Looking Statements Central Vermont Public Service Corporation 2005 Loss per diluted share $(.39) Year-over-Year Effects on Earnings: .12 .03 (.09) (.15) (.15) .06 Subtotal (.18) .91 (.02) 2006 Earnings per diluted share $.32 (a) Excludes effect of 2005 Rate Order charge.
SECURITIES AND EXCHANGE COMMISSION
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
(Former name or former address, if changed since last report)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Acting Chief Financial Officer and Treasurer
Utility Business
Operating revenue increased $6.6 million pre-tax in 2006 as compared to 2005. Last year included a first-quarter $6.2 million Rate Order-required customer refund. The remaining $0.4 million increase for 2006 versus 2005 is primarily related to the following factors:
CV's non-regulated wholly owned subsidiary Catamount Resources Corporation ("CRC") owns Eversant Corporation ("Eversant"). CRC sold all of its interest in Catamount Energy Corporation in December 2005. In the first quarter of 2006, CRC recorded net income of $0.4 million. This compares to $0.1 million for the same period in 2005. The $0.3 million increase is primarily related to interest income on the $59.25 million cash proceeds that CRC received from the Catamount sale.
As previously reported, CV's 2006 earnings available for common stock are expected to range from $12.3 million to $13.3 million. CV also expects to make capital expenditures of about $18 million and to invest $22.5 million into Vermont Electric Power Company, Inc.
CV will host an earnings conference call and webcast on May 11, beginning at 2 p.m. EST. At that time, CV President and CEO Robert Young will discuss corporate developments, 2006 financial guidance and the company's strategic outlook. Acting Chief Financial Officer Ed Ryan will explain CV's first-quarter 2006 results.
CV is Vermont's largest electric utility, serving more than 151,000 customers statewide. CV's non-regulated subsidiary, Eversant, sells and rents electric water heaters through a subsidiary, SmartEnergy Water Heating Services.
Statements contained in this report 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 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. Read
ers 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.
Reconciliation of Earnings (Loss) per Diluted Share
First quarter 2006 vs. first quarter 2005:
Central Vermont Public Service Corporation - Consolidated |
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Utility Operating Data Retail sales (mWh) |
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Operating revenues: |
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Operating expenses: |
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Net Income (Loss) and Common Stock Income (loss) from continuing operations Income from discontinued operations Net Income (Loss) Preferred stock dividend requirements Earnings (loss) available for common stock |
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Average shares of common stock outstanding (a): |
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Earnings (loss) per share of common stock - basic: |
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Earnings (loss) per share of common stock - diluted: |
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Catamount Resources Corporation |
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(a) The average shares of common stock outstanding does not include the effect of the repurchase of 2,249,975 shares on April 19, 2006 from the Company's tender offer. |
Media Inquiries: |
Steve Costello, Director of Public Affairs |
Contact: |
Ed Ryan, Acting Chief Financial Officer and Treasurer |