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) March 14, 2012
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
(Exact name of registrant as specified in its charter)
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Vermont
(State or other jurisdiction
of incorporation)
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1-8222
(Commission
File Number)
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03-0111290
(IRS Employer
Identification No.)
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77 Grove Street, Rutland, Vermont 05701
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (800) 649-2877
N/A
(Former name or former address, if changed since last report)
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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))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 7.01.
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Regulation FD Disclosure.
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See "Item 2.02. Results of Operations and Financial Condition" above.
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Item 9.01.
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Financial Statements and Exhibits.
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(d) Exhibits.
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Exhibit Number
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Description of Exhibit
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99.1
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Central Vermont's News Release dated March 14, 2012.
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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.
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CENTRAL VERMONT PUBLIC SERVICE CORPORATION
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By
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/s/ Pamela J. Keefe
Pamela J. Keefe
Senior Vice President, Chief Financial Officer, and Treasurer
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March 14, 2012
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§
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2011 earnings of $21.7 million, or $1.59 per diluted share, 7 cents lower than 2010,
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excluding merger-related costs of $16 million after-tax, or $1.19 per diluted share
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Ø
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$17.8 million increase in operating revenues
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Ø
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$ 5.1 million increase in service restoration costs (primarily Tropical Storm Irene)
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Ø
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$ 3.4 million increase in exogenous cost deferrals (primarily major storms, 2011 vs. 2010)
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Ø
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$15.3 million increase in transmission costs
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Ø
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$ 6.6 million increase in equity in earnings of affiliates
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Ø
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$27.0 million in merger-related costs (includes $19.5 million Fortis termination fee)
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§
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Fourth-quarter earnings of $5.4 million, or 40 cents per diluted share, same as 2010,
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excluding merger-related costs of $0.2 million after-tax, or 2 cents per diluted share
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Ø
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$ 4.7 million increase in operating revenues
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Ø
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$ 1.7 million decrease in service restoration costs
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Ø
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$ 1.7 million decrease in exogenous cost deferrals (primarily major storm in December 2010)
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Ø
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$ 6.6 million increase in transmission costs
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Ø
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$ 1.7 million increase in equity in earnings of affiliates
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Ø
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$ 0.4 million in merger-related costs
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§
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Due to pending merger, earnings guidance is discontinued
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2011
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||||||||
Net Income
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Earnings Per Diluted Share
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|||||||
(in millions)
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Net earnings excluding merger-related expenses
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$ | 21.7 | $ | 1.59 | ||||
Merger-related expenses, after-tax
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(16.0 | ) | (1.19 | ) | ||||
Net earnings
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$ | 5.7 | $ | 0.40 |
Fourth Quarter 2011
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||||||||
Net Income
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Earnings Per Diluted Share
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(in millions)
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Net earnings excluding merger-related expenses
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$ | 5.4 | $ | 0.40 | ||||
Merger-related expenses, after-tax
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(0.2 | ) | (0.02 | ) | ||||
Net earnings
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$ | 5.2 | $ | 0.38 |
Reconciliation of Earnings Per Diluted Share
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||||||||
Twelve Months
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Fourth Quarter
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2011 vs. 2010
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2011 vs. 2010
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2010 Earnings per diluted share
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$ | 1.66 | $ | 0.40 | ||||
Major Year-over-Year Effects on Earnings:
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Higher operating revenue - retail sales volume
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0.15 | 0.09 | ||||||
Merger-related fees
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(1.19 | ) | (0.02 | ) | ||||
Recovery of uncollectible accounts in 2010
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(0.05 | ) | (0.05 | ) | ||||
Variable life insurance
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(0.03 | ) | 0.00 | |||||
Other (includes impact of additional common shares, income tax adjustments, and various items)
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(0.14 | ) | (0.04 | ) | ||||
2011 Earnings per diluted share
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$ | 0.40 | $ | 0.38 |
Media Inquiries:
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Steve Costello, Director of Public Affairs
(802) 747-5427; e-mail: scostel@cvps.com
(802) 742-3062 (pager)
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Contact:
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Pamela Keefe, Senior Vice President, Chief Financial Officer and Treasurer
(802) 747-5435; e-mail: pkeefe@cvps.com
For questions after April 1, 2012 contact:
Edmund Ryan, Acting Chief Financial Officer and Treasurer
(802) 747-5422; e-mail: eryan@cvps.com
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Central Vermont Public Service Corporation - Consolidated
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Earnings Release
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(dollars in thousands, except per share amounts)
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Three months ended December 31
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Twelve months ended December 31
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Condensed Income statement
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2011
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2010
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2011
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2010
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Operating revenues:
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Retail sales
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$ | 82,474 | $ | 76,993 | $ | 316,013 | $ | 294,406 | ||||||||
Resale sales
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3,773 | 11,335 | 26,185 | 37,957 | ||||||||||||
Provision for rate refund
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221 | (5,942 | ) | 5,097 | (3,598 | ) | ||||||||||
Other
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3,862 | 3,203 | 12,439 | 13,160 | ||||||||||||
Total operating revenues
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90,330 | 85,589 | 359,734 | 341,925 | ||||||||||||
Operating expenses:
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Purchased power - affiliates and other
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37,966 | 40,736 | 156,959 | 160,774 | ||||||||||||
Other operating expenses
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47,562 | 38,294 | 181,255 | 156,151 | ||||||||||||
Income tax expense
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1,029 | 2,091 | 5,167 | 7,545 | ||||||||||||
Total operating expense
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86,557 | 81,121 | 343,381 | 324,470 | ||||||||||||
Utility operating income
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3,773 | 4,468 | 16,353 | 17,455 | ||||||||||||
Other income:
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Equity in earnings of affiliates
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6,984 | 5,241 | 27,733 | 21,098 | ||||||||||||
Other, net
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242 | 744 | (109 | ) | 1,078 | |||||||||||
Merger-related expenses
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(30 | ) | 0 | (25,977 | ) | 0 | ||||||||||
Income tax (expense) benefit
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(2,260 | ) | (2,183 | ) | 1,356 | (7,117 | ) | |||||||||
Total other income
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4,936 | 3,802 | 3,003 | 15,059 | ||||||||||||
Interest expense
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3,520 | 2,953 | 13,652 | 11,560 | ||||||||||||
Net income
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5,189 | 5,317 | 5,704 | 20,954 | ||||||||||||
Dividends declared on preferred stock
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92 | 92 | 368 | 368 | ||||||||||||
Earnings available for common stock
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$ | 5,097 | $ | 5,225 | $ | 5,336 | $ | 20,586 | ||||||||
Per common share data
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Earnings per share of common stock - basic
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$ | 0.38 | $ | 0.40 | $ | 0.40 | $ | 1.66 | ||||||||
Earnings per share of common stock - diluted
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$ | 0.38 | $ | 0.40 | $ | 0.40 | $ | 1.66 | ||||||||
Average shares of common stock outstanding - basic
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13,439,379 | 13,144,056 | 13,404,909 | 12,370,486 | ||||||||||||
Average shares of common stock outstanding - diluted
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13,526,992 | 13,194,390 | 13,487,608 | 12,405,866 | ||||||||||||
Dividends declared per share of common stock
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$ | 0.00 | $ | 0.00 | $ | 0.92 | $ | 0.92 | ||||||||
Dividends paid per share of common stock
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$ | 0.23 | $ | 0.23 | $ | 0.92 | $ | 0.92 | ||||||||
Supplemental financial statement data
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Balance sheet
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Investments in affiliates
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$ | 179,974 | $ | 171,514 | ||||||||||||
Total assets
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$ | 776,265 | $ | 710,746 | ||||||||||||
Common stock equity
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$ | 268,154 | $ | 272,728 | ||||||||||||
Long-term debt (excluding current portions)
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$ | 240,578 | $ | 188,300 | ||||||||||||
Cash Flows
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Cash and cash equivalents at beginning of period
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$ | 2,676 | $ | 2,069 | ||||||||||||
Cash provided by operating activities
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45,713 | 53,527 | ||||||||||||||
Cash used for investing activities
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(53,401 | ) | (91,405 | ) | ||||||||||||
Cash provided by financing activities
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6,746 | 38,485 | ||||||||||||||
Cash and cash equivalents at end of period
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$ | 1,734 | $ | 2,676 | ||||||||||||
Refer to our 2011 Form 10-K for additional information
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