|By Marketwired .||
|August 1, 2013 06:52 PM EDT||
NEW YORK, NY -- (Marketwired) -- 08/01/13 -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2013 second quarter net income for common stock of $172 million or $0.59 a share compared with $214 million or $0.73 a share in 2012. Earnings from ongoing operations, which exclude the effects of its lease in/lease out (LILO) transactions and the net mark-to-market effects of the competitive energy businesses (CEBs), were $160 million or $0.55 a share in 2013 compared with $178 million or $0.61 a share in 2012.
For the first six months of 2013, net income for common stock was $364 million or $1.24 a share compared with $491 million or $1.68 a share in the first six months of 2012. Earnings from ongoing operations, which exclude the effects of its LILO transactions and the net mark-to-market effects of the CEBs, were $476 million or $1.62 a share in 2013 compared with $473 million or $1.62 a share in 2012.
"Our 14,000 employees have worked hard to prepare our energy delivery systems for the summer and respond to scattered outages during several intense heat waves," said Kevin Burke, Con Edison's chairman, president and chief executive officer. "Our billions of dollars in infrastructure investments, coupled with our effective energy efficiency and demand response programs, are clearly paying off and helping us provide reliable service to our 3.6 million customers."
The following table is a reconciliation of Con Edison's reported earnings per share to earnings per share from ongoing operations and reported net income to earnings from ongoing operations for the three and six months ended June 30, 2013 and 2012.
Three Months Ended Six Months Ended Net Income Net Income Earnings per (Millions of Earnings per (Millions of Share Dollars) Share Dollars) -------------- -------------- ------------- ------------- 2013 2012 2013 2012 2013 2012 2013 2012 ------------------ ------ ------ ------ ------ ------ ------ ------ ------ Reported earnings per share and net income for common stock - GAAP basis (basic) $ 0.59 $ 0.73 $ 172 $ 214 $ 1.24 $ 1.68 $364 $491 Add: LILO transactions (a) (0.10) - (29) - 0.41 - 121 - Less: Net mark-to- market effects of the CEBs (b) (0.06) 0.12 (17) 36 0.03 0.06 9 18 ------------------ ------ ------ ------ ------ ------ ------ ------ ------ Ongoing operations $ 0.55 $ 0.61 $ 160 $ 178 $ 1.62 $ 1.62 $ 476 $ 473 ------------------ ------ ------ ------ ------ ------ ------ ------ ------ (a) In January 2013, the United States Court of Appeals for the Federal Circuit reversed an October 2009 trial court ruling and disallowed company-claimed tax deductions relating to a 1997 transaction in which Consolidated Edison Development, Inc. (CED) leased property from the owner and then immediately subleased it back to the owner (a "LILO" transaction). As a result, the company recorded a charge of $150 million (after taxes of $102 million) in the first quarter of 2013 to reflect the interest on the disallowed income tax deductions and the recalculation of the accounting effect of the 1997 and 1999 LILO transactions. In June 2013, the 1999 LILO transaction was terminated, as a result of which the company realized a $29 million gain (after taxes of $22 million). (b) After taxes of $(13) million and $27 million for the three months ended June 30, 2013 and 2012 and $6 million and $14 million for the six months ended June 30, 2013 and 2012, respectively.
For the year 2013, the company reaffirms its previous forecast of earnings per share from ongoing operations in the range of $3.65 to $3.85 a share. Earnings per share from ongoing operations exclude the effects of the LILO transactions and the net mark-to-market effects of the CEBs.
The results of operations for the three and six months ended June 30, 2013, as compared with the 2012 periods, reflect changes in the rate plans of Con Edison's utility subsidiaries, the weather impact on steam revenues and increases in certain operations and maintenance expenses, depreciation and property taxes. The results of operations include the operating results of the competitive energy businesses, including net mark-to-market effects.
Operations and maintenance expenses reflect higher surcharges for assessments and fees that are collected in revenues from customers, higher operating costs attributable to weather-related events and the movement of company facilities to accommodate municipal projects in the 2013 periods, as compared to 2012. Depreciation and property taxes were higher in the 2013 periods reflecting the impact from higher utility plant balances.
The following table presents the estimated effects on earnings per share and net income for common stock for the three and six months ended June 30, 2013, as compared with the 2012 periods, resulting from these and other major factors:
Three Months Ended Six Months Ended Variation Variation 2013 vs. 2012 2013 vs. 2012 Net Income Net Income for Common for Common Stock Stock Earnings Variation Earnings Variation per Share (Millions per Share (Millions Variation of Dollars) Variation of Dollars) -------------------------- ---------- ----------- ---------- ----------- Consolidated Edison Company of New York, Inc. (CECONY) (a) Rate plans (b) $ (0.05) $ (15) $ 0.16 $ 48 Weather impact on steam revenues 0.02 7 0.10 28 Operations and maintenance expenses (b) 0.04 11 (0.16) (47) Depreciation and property taxes (0.07) (19) (0.13) (37) Other 0.02 6 0.01 2 ---------- ----------- ---------- ----------- Total CECONY (0.04) (10) (0.02) (6) Orange and Rockland Utilities, Inc. (O&R) (0.01) (5) 0.02 6 CEBs (c) (0.09) (28) (0.44) (129) Other, including parent company expenses - 1 - 2 -------------------------- ---------- ----------- ---------- ----------- Total variation $ (0.14) $ (42) $ (0.44) $ (127) ========================== ========== =========== ========== =========== (a) Under the revenue decoupling mechanisms in CECONY's electric and gas rate plans and the weather-normalization clause applicable to the gas business, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. Under CECONY's rate plans, pension and other postretirement costs and certain other costs are reconciled to amounts reflected in rates for such costs. (b) The rate plan variations include a decrease in revenues in the three months ended June 30, 2013, as compared to the 2012 period, when revenues reflected the use of certain regulatory liabilities (after-tax $18 million or $0.06 per share) to offset a temporary surcharge under CECONY's electric rate plan. The variations in operations and maintenance expenses include a decrease in pension costs in the 2013 period, as compared to the 2012 period, when certain pension costs that were deferred from earlier periods (after-tax $21 million or $0.07 per share) were recognized under CECONY's electric rate plan. (c) These variations include, for the three months ended June 30, an after- tax gain of $29 million or $0.10 a share in 2013 relating to the LILO transactions and reflect after-tax net mark-to-market losses of $17 million or $0.06 a share in 2013 and after-tax net mark-to-market gains of $36 million or $0.12 a share in 2012. These variations include, for the six months ended June 30, an after-tax charge of $121 million or $0.41 a share in 2013 relating to the LILO transactions, a tax benefit of $15 million or $0.05 a share in 2013 resulting from the acceptance by the Internal Revenue Service of the company's claim for manufacturing tax deductions and reflect after-tax net mark-to-market gains of $9 million or $0.03 a share in 2013 and after-tax net mark-to-market gains of $18 million or $0.06 a share in 2012.
The weighted average number of common shares was 293 million shares for the three and six months ended June 30, 2013 and 2012, respectively.
The changes in the energy delivered by the company's utility subsidiaries, both for actual amounts and as adjusted primarily for variations in weather and billing days, for the three and six months ended June 30, 2013, as compared with the 2012 periods, were as follows (expressed as a percentage of 2012 amounts):
Second Quarter Variation Six Months Variation 2013 vs. 2012 2013 vs. 2012 Actual Adjusted Actual Adjusted -------------------------- ----------- ----------- ---------- ---------- Con Edison of New York Electric (1.1) (1.2) 0.1 (1.0) Firm - Gas 25.3 6.1 20.0 2.7 Steam 10.0 (2.7) 16.7 (2.9) O&R Electric (0.9) (1.3) (0.5) (1.7) Firm - Gas 11.6 (3.9) 20.5 (0.2) -------------------------- ----------- ----------- ---------- ----------
Refer to the company's Second Quarter Form 10-Q, which is being filed with the Securities and Exchange Commission, for the consolidated balance sheets at June 30, 2013 and December 31, 2012 and the consolidated income statements for the three and six months ended June 30, 2013 and 2012. Additional information related to utility sales and revenues is available at www.conedison.com (select "Shareholder Services" and then select "Press Releases").
This press release contains forward-looking statements that reflect expectations and not facts. Actual results may differ materially from those expectations because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission.
This press release also contains a financial measure, earnings from ongoing operations. This non-GAAP measure should not be considered as an alternative to net income, which is an indicator of operating performance determined in accordance with GAAP. Management uses this non-GAAP measure to facilitate the analysis of the company's ongoing performance as compared to its internal budgets and previously reported financial results. Management believes that this non-GAAP measure is also useful and meaningful to investors.
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with approximately $12 billion in annual revenues and $42 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas, and steam service in New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,350 square mile area in southeastern New York state and adjacent sections of northern New Jersey and northeastern Pennsylvania; Consolidated Edison Solutions, Inc., a retail energy supply and services company; Consolidated Edison Energy, Inc., a wholesale energy services company; and Consolidated Edison Development, Inc., a company that participates in infrastructure projects.
212 460 4111 (24 hours)
Consolidated Edison, Inc.
4 Irving Place
New York NY 10003
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 24, 2016 11:30 PM EDT Reads: 997
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
May. 24, 2016 11:15 PM EDT Reads: 908
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 24, 2016 11:15 PM EDT Reads: 962
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
May. 24, 2016 10:45 PM EDT Reads: 1,042
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 24, 2016 10:45 PM EDT Reads: 696
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
May. 24, 2016 09:00 PM EDT Reads: 1,789
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
May. 24, 2016 08:45 PM EDT Reads: 925
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 24, 2016 06:30 PM EDT Reads: 736
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
May. 24, 2016 06:00 PM EDT Reads: 4,645
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
May. 24, 2016 05:00 PM EDT Reads: 1,840
Cloud computing changed data analytics for good. It enabled companies to drastically decrease resources and architecture previously assigned with business intelligence departments. It also enabled laymen to run advanced business analytics. Cloud was also the architecture of choice for storing and processing big data. Data piling is a continuous process, which is going to explode with emerging Internet of Things concept. Answer to this issue developers found in new concept called fog computing. ...
May. 24, 2016 04:15 PM EDT Reads: 1,819
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
May. 24, 2016 04:00 PM EDT Reads: 1,679
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
May. 24, 2016 04:00 PM EDT Reads: 2,351
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
May. 24, 2016 02:15 PM EDT Reads: 2,073
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
May. 24, 2016 02:00 PM EDT Reads: 3,842