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0000018808-07-000054.txt : 20071102
0000018808-07-000054.hdr.sgml : 20071102
20071102082652
ACCESSION NUMBER: 0000018808-07-000054
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20071102
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Regulation FD Disclosure
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20071102
DATE AS OF CHANGE: 20071102
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: CENTRAL VERMONT PUBLIC SERVICE CORP
CENTRAL INDEX KEY: 0000018808
STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911]
IRS NUMBER: 030111290
STATE OF INCORPORATION: VT
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-08222
FILM NUMBER: 071208656
BUSINESS ADDRESS:
STREET 1: 77 GROVE ST
CITY: RUTLAND
STATE: VT
ZIP: 05701
BUSINESS PHONE: 802-773-2711
MAIL ADDRESS:
STREET 1: 77 GROVE STREET
CITY: RUTLAND
STATE: VT
ZIP: 05701
8-K
1
fnl8k.htm
CURRENT REPORT ON FORM 8-K DATED 11/2/07
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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) November 2, 2007
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
(Exact name of registrant as specified in its charter) |
Vermont
(State or other jurisdiction
of incorporation) |
1-8222
(Commission
File Number) |
03-0111290
(IRS Employer
Identification No.) |
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
(Former name or former address, if changed since last report) |
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)
[ ] 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)) |
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 November 2, 2007 announcing its financial results for the third quarter ended September 30, 2007.
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 third quarter 2007 results will be held on Monday, November 5, 2007 at 10:00 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 November 2, 2007. |
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 |
/s/ Pamela J. Keefe
Pamela J. Keefe
Vice President, Chief Financial Officer, and Treasurer |
November 2, 2007
Exhibit Number |
Description of Exhibit |
99.1 |
Central Vermont's News Release dated November 2, 2007. |
EX-99
3
ex99_1.htm
EXHIBIT 99.1 - NEWS RELEASE DATED 11/2/07
EXHIBIT 99.1 - NEWS RELEASE
EXHIBIT 99.1
|
Central Vermont Public Service
NEWS RELEASE
For Immediate Release: November 2, 2007
Central Vermont Reports Third Quarter Earnings
RUTLAND, VT - Central Vermont Public Service (NYSE: CV) reported third quarter 2007 consolidated earnings of $4.3 million, or 41 cents per diluted share of common stock. This compares to third quarter 2006 consolidated earnings of $7.0 million, or 66 cents per diluted share of common stock.
CV reported consolidated earnings of $10.5 million, or 99 cents per diluted share of common stock, for the first nine months of 2007. This compares to consolidated earnings of $12.1 million, or $1.07 per diluted share of common stock, for the first nine months of 2006.
"Increased transmission costs and several major storms have presented significant challenges, but we continue to make progress on service quality and reliability," said CV President and CEO Bob Young. "We are investing substantially in improving our distribution and transmission systems, and these investments will ultimately benefit both customers and investors. We expect to meet our previously stated guidance."
QUARTERLY PERFORMANCE SUMMARY - 2007 versus 2006
Utility Business
Operating revenues decreased $0.7 million resulting from a $3.3 million decrease in resale sales revenue, partially offset by a $2.6 million increase in retail sales revenue. Resale sales revenue decreased due to less excess power available for resale, including Vermont Yankee uprate power that was resold in 2006, and lower average market prices compared to 2006. Retail sales increased largely due to a 4.07 percent retail rate increase effective January 1, 2007.
Purchased power costs decreased $3.1 million largely due to decreased Vermont Yankee purchases resulting from reduced output and an unplanned outage in the third quarter of 2007, and additional uprate power that was purchased in 2006. Other items included lower nuclear plant decommissioning costs and decreased purchases from Independent Power Producers due to lower output. These favorable items were partially offset by increased short-term purchases for Vermont Yankee replacement energy.
Other operating costs increased $7.6 million largely due to higher transmission costs resulting from higher rates, partly due to overall transmission expansion in New England, and lower reimbursements under the NEPOOL Open Access Transmission Tariff. Other items included higher storm restoration costs resulting from two major storms in August 2007 and a 2006 reduction of reserves for future environmental remediation.
Equity in earnings from affiliates increased $0.7 million largely due to earnings from Vermont Transco LLC ("Transco"), which was formed in June 2006 by Vermont Electric Power Company Inc. and its owners, including CV, for construction, maintenance and operation of transmission facilities in Vermont.
Non-utility Business
CV's non-regulated wholly owned subsidiary Catamount Resources Corporation ("CRC") earned $0.1 million in the third quarter of 2007 and 2006.
YEAR-TO-DATE PERFORMANCE SUMMARY - 2007 versus 2006
Utility Business
Operating revenues increased $2.1 million resulting from a $13.0 million increase in retail sales revenue partially offset by a $10.9 million decrease in resale sales revenue. Retail sales increased $8.3 million resulting from the 4.07 percent rate increase and $4.7 million largely due to an increase in the number of customers, including two small service territory acquisitions in late 2006 and overall customer growth throughout the existing service territory. Resale sales decreased because there was less excess power available for resale largely due to Vermont Yankee and Millstone Unit #3 scheduled refueling outages in the second quarter of 2007, lower Vermont Yankee output in the third quarter of 2007 and additional Vermont Yankee uprate power that was resold in 2006.
Purchased power costs decreased $6.5 million largely due to decreased Vermont Yankee purchases for the reasons described above, lower plant decommissioning costs and lower output from Independent Power Producers. These favorable items were partially offset by increased Hydro-Quebec deliveries and higher short-term purchases for replacement power during the nuclear plant outages.
Other operating costs increased $13.5 million largely due to higher transmission expense as described above, higher storm restoration costs resulting from major storms in April and August 2007, increased bad debt expense and a 2006 reduction of environmental reserves, partially offset by lower employee benefit costs.
Equity in earnings from affiliates increased $3.1 million principally due to earnings from Transco.
Non-utility Business
CRC's earnings were $0.4 million in the first nine months of 2007 compared to $0.7 million in 2006. The decrease is primarily related to interest earned in 2006 on cash proceeds from the December 2005 sale of Catamount Energy Corporation.
2006 Stock Buyback
Earnings per share for the third quarter and first nine months of 2007 reflect the impact of the April 2006 stock buyback. CV purchased 2.2 million shares of its common stock for $22.50 per share using cash proceeds from the Dec. 20, 2005 sale of Catamount. The stock buyback decreased common shares outstanding by about 18 percent, resulting in a favorable impact of 4 cents per diluted common share in the third quarter and 7 cents in the first nine months of 2007 when compared to the results for the same periods in 2006.
2007 Financial Guidance
After the second quarter, CV lowered its 2007 earnings guidance from a range of $1.60 to $1.70 per share to a range of $1.35 to $1.45 per share; we reiterate that guidance at this time.
Webcast
CV will host an earnings teleconference and webcast on Nov. 5, 2007 beginning at 10 a.m. EST At that time, CV President and CEO Robert Young and CV Chief Financial Officer Pamela Keefe will discuss the company's financial results, as well as progress made toward achieving its long-term strategy.
Interested parties may listen to the conference call live on the Internet by selecting the "Q3 Earnings Conference Call" link on the company's homepage at www.cvps.com. An audio archive of the call will be available Nov. 5 at approximately 12 p.m. EST at the same location or by dialing 1-888-286-8010 and entering passcode 74228499.
About CV
CV is Vermont's largest electric utility, serving more than 158,000 customers statewide. CV's non-regulated subsidiary, Catamount Resources Corporation, sells and rents electric water heaters through a subsidiary, SmartEnergy Water Heating Services.
Forward-Looking Statements
Statements contained in this report that are not historical fact are forward-looking statements within the meaning of the safe-harbor provisions of 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. Readers are cautioned not t
o 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 per Diluted Share
2007 vs. 2006 |
|
Three Months Ended
September 30 |
Nine Months Ended
September 30
|
2006 Earnings per diluted share
Year-over-Year Effects on Earnings (a):
Higher retail revenues - 4.07 percent rate increase Jan. 1, 2007
(Lower) higher retail revenues - primarily volume
Lower purchased power costs
Higher equity in earnings
Lower resale sales
Higher maintenance costs - primarily 2007 major storms
Higher transmission costs
2006 reversal of environmental reserves
Other
2007 Earnings per diluted share |
$0.66
..15
(.01)
..18
..06
(.18)
(.13)
(.21)
(.09)
(.02)
$0.41
|
|
$1.07
..47
..27
..37
..27
(.62)
(.32)
(.21)
(.09)
(.22)
$0.99
|
|
(a) The favorable impact of the April 06 stock buyback is included in the individual EPS variances and not shown separately in the table above. |
Central Vermont Public Service Corporation - Consolidated
Earnings Release (unaudited)
(dollars in thousands, except per share amounts)
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|
2007 |
2006 |
2007 |
2006 |
Utility Operating Data
Retail sales (mWh)
|
567,998
|
576,253
|
1,734,447
|
1,702,793
|
Operating revenues:
Retail sales
Resale sales
Provision for rate refund
Other operating revenue
Total operating revenue
|
$69,053
8,030
(187)
2,278
$79,174
|
$66,493
11,298
- -
2,121
$79,912
|
$209,736
27,681
(560)
6,393
$243,250
|
$196,741
38,593
- -
5,825
$241,159
|
Operating expenses:
Purchased power
Other operating expenses
Income tax (benefit) expense
Total operating expense
|
$38,053
34,370
1,604
$74,027
|
$41,178
26,736
4,210
$72,124
|
$120,132
107,173
3,848
$231,153
|
$126,649
93,692
6,172
$226,513
|
Equity in earnings of affiliates
|
$1,521
|
$825
|
$4,812
|
$1,694
|
Net Income
Preferred stock dividend requirements
Earnings available for common stock
|
$4,321
92
$4,229
|
$7,004
92
$6,912 |
$10,548
276
$10,272
|
$12,096
276
$11,820 |
Weighted average shares of common stock outstanding:
Basic
Diluted
|
10,197,869
10,380,747
|
10,328,009
10,403,040
|
10,173,647
10,337,226
|
10,966,169
11,026,662
|
Earnings per share of common stock - basic
Earnings per share of common stock - diluted
Dividends declared per share of common stock
Dividends paid per share of common stock
|
$0.41
$0.41
$0.23
$0.23
|
$0.67
$0.66
$0.23
$0.23 |
$1.01
$0.99
$0.92
$0.69
|
$1.08
$1.07
$0.69
$0.69 |
Catamount Resources Corporation :
Earnings per basic and diluted share of common stock |
$0.01
|
$0.01
|
$0.04
|
$0.06
|
Media Inquiries: |
Steve Costello, Director of Public Affairs
(802) 747-5427; e-mail: scostel@cvps.com
(802) 742-3062 (pager)
|
Contact: |
Pamela J. Keefe, Vice President, Chief Financial Officer, and Treasurer
(802) 747-5435; e-mail: pkeefe@cvps.com |
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