Exhibit 99
For Release: Immediately
Contact: Investors: Stacey A. Renner, (845) 486-5730
News Media: Denise D. VanBuren, (845) 471-8323
POUGHKEEPSIE, N.Y.--(BUSINESS WIRE) -- Feb. 14, 2007 -- In BW5176 issued Feb.
14, 2007: Insert the following below tabular headers in CONSOLIDATED STATEMENT
OF INCOME: "(Thousands of Dollars)."
The corrected release reads:
CH Energy Group Posts 2006 Earnings Results
Annual earnings for CH Energy Group, Inc. (NYSE:CHG) totaled $2.73 per share in
2006, versus the $2.81 per share posted during 2005. Milder weather and customer
conservation were the two primary reasons for the 8-cent decline in
year-over-year results.
"Despite growth in the number of customers during 2006, our delivery
volumes were noticeably reduced across all the forms of energy we deliver:
electricity, natural gas, fuel oil, gasoline, diesel fuel and propane," reported
Steven V. Lant, Chairman of the Board, President and C.E.O. The combination of
milder weather compared to 2005 and customer sensitivity to commodity costs
resulted in lower energy use per customer, he explained.
The annual earnings by business segment were as follows:
Central Hudson Gas & Electric Corporation
Central Hudson's contribution to annual earnings was $2.15, which was 5
cents lower than that of 2005. The impact of a cooler summer and warmer winter
and increased expenses associated with storm activity combined to decrease
earnings by 35 cents during the course of the year, and customer conservation
resulted in an additional 12-cent decline. Elements from an expired regulatory
agreement, increased revenues resulting from a new three-year rate agreement,
growth in the number of customers and the sale of unused property helped to
offset the sales declines and increased expenses.
Griffith Energy Services
The Griffith fuel distribution businesses contributed 10 cents to earnings
per share in 2006, down from 23 cents per share in 2005, due largely to reduced
usage per customer resulting from warmer weather during the heating season and
sensitivity to higher energy prices. "It's important to note the earnings
contribution from our acquisition strategy -- as well as our success in
attracting new customers in 2006 due to our internal marketing efforts -- helped
to offset the impacts of lower sales per customer," Lant said. He also noted
that Griffith benefited from expanding margins experienced within the industry
during 2006.
Other Businesses
Holding company CH Energy Group, Inc. and CHEC partnerships and other
investments posted 48 cents toward corporate earnings in 2006, up from 38 cents
in 2005. The 10-cent increase was largely attributable to earnings accrued from
ownership stakes in the Cornhusker ethanol facility and the Lyonsdale Biomass
plant, as well as increased interest income and the release of reserves related
to a former subsidiary.
4th Quarter 2006 Results
Consolidated basic earnings per share for the quarter ended December 31,
2006, were 62 cents, compared to the 74 cents posted during the final quarter of
the previous year. The decrease of 12 cents is largely attributable to the
impact of warmer weather and customer conservation in both the utility and fuel
distribution business segments.
2007 Earnings Projections
"We already know that the impact of this winter's unseasonably warm
weather will carry over into 2007 results, and have lowered our annual earnings
projection as a result. We're estimating that the mild weather that occurred
during December 2006 and the first half of January 2007 will dampen results by
about 10 cents per share," Lant said.
CH Energy Group projects its 2007 consolidated annual earnings will total
between $2.40 and $2.65 per share, which reflects the milder weather that
occurred in late 2006 and early 2007. Earnings expectations for individual
business units were projected as follows: $1.80 - $1.90 per share from regulated
utility Central Hudson Gas & Electric Corporation; 20 - 25 cents per share from
Griffith fuel distribution; and 40 - 50 cents per share from holding company CH
Energy Group, Inc., partnerships and other investments.
About CH Energy Group, Inc.
With more than 450,000 customers CH Energy Group, Inc. is a family of companies
seizing new opportunities in the energy marketplace through two primary
subsidiaries: Central Hudson Gas & Electric Corporation is a regulated
transmission and distribution utility serving approximately 367,000 customers in
eight counties of New York State's Mid-Hudson River Valley, and delivering
natural gas and electricity in a 2,600-square-mile service territory that
extends from the suburbs of metropolitan New York City north to the Capital
District at Albany. Central Hudson Enterprises Corporation, a non-regulated
subsidiary, is the umbrella for a family of energy-related companies and
investments focused primarily on fuel distribution and renewable energy.
Griffith Energy Service's fuel distribution business supplies energy products
and services to more than 85,000 customers in seven states, stretching from
Connecticut to the Washington, D.C. area. CHEC also has interests in a
Lexington, Neb., ethanol plant, two wind power projects, and a biomass plant in
upstate New York.
Conference Call: Mr. Lant will conduct a conference call with investors to
review financial results at 2:00 p.m. (ET) today, February 14, 2007. Dial-in:
1-866-205-3921; Conference Name: "CH Energy Group." Supplemental materials will
be posted to the Company's Web site at www.CHEnergyGroup.com to assist
participants in following the Conference Call presentation. A digitized replay
of the call will be available from 7:15 p.m. (ET) on February 14, 2007, until
11:59 p.m. (ET) on February 21, 2007, by dialing 1-800-475-6701 and entering
access code #861558. In addition, the call will be webcast live in listen-only
mode and available for replay for approximately 30 days within the Investor
Relations section of the Company's Web site at www.CHEnergyGroup.com.
Forward-Looking Statements
Statements included in this news release, including documents incorporated
by reference that are not historical in nature, are intended to be, and are
hereby identified as, "forward-looking statements" for purposes of the safe
harbor provided by Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements may be identified by words including
"anticipates," "believes," "projects," "intends," "estimates," "expects,"
"plans," "assumes," "seeks," and similar expressions. Forward-looking statements
including, without limitation, those relating to CH Energy Group, Inc. and its
subsidiaries' future business prospects, revenues, proceeds, working capital,
liquidity, income and margins, are subject to certain risks and uncertainties
that could cause actual results to differ materially from those indicated in the
forward-looking statements, due to several important factors including those
identified from time to time in the forward-looking statements. Those factors
include, but are not limited to: weather; energy supply and demand; fuel prices;
interest rates; potential future acquisitions; developments in the legislative,
regulatory and competitive environment; market risks; electric and gas industry
restructuring and cost recovery; the ability to obtain adequate and timely rate
relief; changes in fuel supply or costs; the success of strategies to satisfy
electricity requirements now that Central Hudson's major electric generation
assets have been sold; future market prices for energy, capacity, and ancillary
services; the outcome of pending litigation and certain environmental matters,
particularly the status of inactive hazardous waste disposal sites and waste
site remediation requirements; and certain presently unknown or unforeseen
factors, including, but not limited to, acts of terrorism. CH Energy Group, Inc.
and its subsidiaries undertake no obligation to update publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise. Given these uncertainties, undue reliance should not be
placed on the forward-looking statements.
CH ENERGY GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
3 Months Ended 12 Months Ended
December 31, December 31,
--------------------- -------------------------
2006 2005 2006 (1) 2005 (2)
--------- -------- --------- ---------
(Thousands of Dollars)
Operating Revenues
Electric $ 105,208 $128,128 $ 503,908 $ 520,994
Natural Gas 29,621 46,914 155,272 155,602
Competitive Business Subsidiaries 87,662 93,909 334,253 295,910
--------- -------- --------- ---------
Total Operating Revenues 222,491 268,951 993,433 972,506
--------- -------- --------- ---------
Operating Expenses
Operations - Purchased Electricity and Fuel Used in
Electric Generation, Purchased Natural Gas,
and Purchased Petroleum 135,385 189,297 661,239 669,335
Other Expenses of Operation - Regulated Activities 34,620 25,967 124,789 99,439
Other Expenses of Operation - Comp. Bus. Subsidiaries 17,340 15,652 60,702 55,003
Depreciation and Amortization 8,782 8,915 35,701 36,219
Taxes, Other Than Income Tax 8,402 8,141 33,491 33,485
--------- -------- --------- ---------
Total Operating Expenses 204,529 247,972 915,922 893,481
--------- -------- --------- ---------
Operating Income 17,962 20,979 77,511 79,025
--------- -------- --------- ---------
Other Income & Deductions
Interest and Investment Income 2,207 3,009 9,866 10,360
Other - Net (538) 330 717 (1,260)
--------- -------- --------- ---------
Total Other Income & Deductions 1,669 3,339 10,583 9,100
--------- -------- --------- ---------
Interest Charges
Interest on Debt 4,286 3,639 16,425 13,826
Other Interest 857 934 3,987 3,219
--------- -------- --------- ---------
Total Interest Charges 5,143 4,573 20,412 17,045
--------- -------- --------- ---------
Income Before Income Taxes and
Preferred Dividends of Subsidiary and Minority Interest 14,488 19,745 67,682 71,080
Income Taxes 4,520 7,831 23,769 25,819
Minority Interest (20) 0 (141) 0
--------- -------- --------- ---------
Income Before Preferred Dividends of Subsidiary 9,988 11,914 44,054 45,261
Cumulative Preferred Stock Dividends of Subsidiary 242 242 970 970
--------- -------- --------- ---------
Net Income 9,746 11,672 43,084 44,291
Dividends Declared on Common Stock 8,512 8,511 34,046 34,046
Amount Retained in the Business $ 1,234 $ 3,161 $ 9,038 $ 10,245
========= ======== ========= =========
Avg. Shares of Common Stock Outstanding - (Basic) (000s) 15,762 15,762 15,762 15,762
Avg. Shares of Common Stock Outstanding - (Diluted) (000s) 15,782 15,767 15,779 15,767
Earnings Per Share - (Basic) $ 0.62 $ 0.74 $ 2.73 $ 2.81
Earnings Per Share - (Diluted) $ 0.62 $ 0.74 $ 2.73 $ 2.81
Dividends Declared Per Share $ 0.54 $ 0.54 $ 2.16 $ 2.16
(1) Subject to explanations contained in the Annual Report on Form 10-K of the
Company to the SEC for the Year ended December 31, 2006.
(2) Subject to explanations contained in the Annual Report on Form 10-K of the
Company to the SEC for the Year ended December 31, 2005.
CH ENERGY GROUP, INC.
CONSOLIDATED BALANCE SHEET
December 31, December 31,
2006(1) 2005(2)
------------- -------------
ASSETS (Thousands of Dollars)
UTILITY PLANT
Utility Plant $ 1,120,551 $ 1,074,215
Less Accumulated Depreciation 344,540 333,164
------------- -------------
776,011 741,051
Construction Work in Progress 51,041 38,460
------------- -------------
Net Utility Plant 827,052 779,511
------------- -------------
OTHER PROPERTY AND PLANT & EQUIPMENT 33,822 23,138
------------- -------------
CURRENT ASSETS
Cash and Cash Equivalents 24,121 49,410
Short-term Investments - available-for-sale securities 42,611 42,100
Accounts Receivable from Customers 80,862 102,236
Materials & Supplies 27,930 28,350
Regulatory Assets 31,332 30,764
Special Deposits and Prepayments 34,899 24,350
Accumulated Deferred Income Tax - Net 5,875 8,836
Other 17,478 15,660
------------- -------------
265,108 301,706
------------- -------------
DEFERRED CHARGES AND OTHER ASSETS 334,550 279,925
------------- -------------
TOTAL $ 1,460,532 $ 1,384,280
============= =============
CAPITALIZATION and LIABILITIES
CAPITALIZATION
Common Equity (3) $ 512,862 $ 503,833
Cumulative Preferred Stock:
Not subject to mandatory redemption 21,027 21,027
Long-term Debt 337,889 343,886
------------- -------------
871,778 868,746
------------- -------------
CURRENT LIABILITIES
Current Maturities of Long-Term Debt 33,000 0
Notes Payable 13,000 30,000
Accounts Payable 41,840 54,926
Accrued Interest 5,645 5,156
Dividends Payable 8,754 8,754
Regulatory Liabilities 21,651 3,513
Fair Value of Derivative Instruments 3,582 335
Other 62,616 39,401
------------- -------------
190,088 142,085
------------- -------------
DEFERRED CREDITS AND OTHER LIABILITIES 258,739 239,665
------------- -------------
MINORITY INTEREST 1,481 0
------------- -------------
ACCUMULATED DEFERRED INCOME TAX (NET) 138,446 133,784
------------- -------------
TOTAL $ 1,460,532 $ 1,384,280
============= =============
(1) Subject to explanations contained in the Annual Report on Form 10-K of the
Company to the SEC for the Year ended December 31, 2006.
(2) Subject to explanations contained in the Annual Report on Form 10-K of the
Company to the SEC for the Year ended December 31, 2005.
(3) Shares outstanding at December 31, 2006 = 15,762,000.
Shares outstanding at December 31, 2005 = 15,762,000.
CH ENERGY GROUP, INC.
EARNINGS PER DILUTED SHARE BY SEGMENT
------------------- -------------------
Earnings per Share 3 Months Ended 12 Months Ended
Dec 31, Dec 31,
------------------- -------------------
2006 2005 2006 2005
------------------- -------------------
Central Hudson - Electric $ 0.37 $ 0.36 $ 1.67 $ 1.63
Central Hudson - Natural Gas $ 0.05 $ 0.11 $ 0.48 $ 0.57
Griffith $ 0.10 $ 0.18 $ 0.10 $ 0.23
Other Businesses $ 0.10 $ 0.09 $ 0.48 $ 0.38
------------------- -------------------
Consolidated CH Energy Group $ 0.62 $ 0.74 $ 2.73 $ 2.81
=================== ===================