Welcome!

News Feed Item

Con Edison Reports 2013 Third Quarter Earnings

NEW YORK, NY -- (Marketwired) -- 11/04/13 -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2013 third quarter net income for common stock of $464 million or $1.58 a share compared with $440 million or $1.50 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 $434 million or $1.48 a share in 2013 compared with $423 million or $1.44 a share in 2012.

For the first nine months of 2013, net income for common stock was $828 million or $2.83 a share compared with $931 million or $3.18 a share in the first nine 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 $911 million or $3.11 a share in 2013 compared with $896 million or $3.06 a share in 2012.

"Since Superstorm Sandy, we continue to invest heavily in fortifying our infrastructure to enhance reliability," said Kevin Burke, Con Edison's chairman, president and chief executive officer. "Our energy delivery system performed extremely well this summer, meeting the test of a new peak electricity delivery record of 13,322 megawatts in New York City and Westchester on July 19. We also remain committed to energy efficiency initiatives, as well as an aggressive oil-to-gas conversion program that will lower costs and improve air quality in the region."

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 nine months ended September 30, 2013 and 2012.


                            Three Months Ended         Nine Months Ended
                          Earnings     Net Income     Earnings    Net Income
                             per      (Millions of      per       (Millions
                            Share       Dollars)       Share     of Dollars)
                       -------------- ------------ ------------- -----------
                        2013    2012   2013   2012  2013   2012   2013  2012
                       ------  ------ -----  ----- ------ ------ ----- -----
Reported earnings per
 share and net income
 for common stock-
 GAAP basis (basic)    $ 1.58  $ 1.50 $ 464  $ 440 $ 2.83 $ 3.18 $ 828 $ 931
Add: LILO transactions
 (a)                    (0.09)      -   (26)     -   0.32      -    95     -

Less: Net mark-to-
 market effects of the
 CEBs (b)                0.01    0.06     4     17   0.04   0.12    12    35
                       ------  ------ -----  ----- ------ ------ ----- -----
Ongoing operations     $ 1.48  $ 1.44 $ 434  $ 423 $ 3.11 $ 3.06 $ 911 $ 896
                       ------  ------ -----  ----- ------ ------ ----- -----

(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), and in August 2013, the 1997 LILO transaction was
    terminated, as a result of which the company realized a $26 million gain
    (after taxes of $18 million).
(b) After taxes of $3 million and $13 million for the three months ended
    September 30, 2013 and 2012 and $9 million and $27 million for the nine
    months ended September 30, 2013 and 2012, respectively.

The company expects its earnings from ongoing operations for the year 2013 to be in the range of $3.70 to $3.80 a share. The company's previous forecast of 2013 earnings was 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 nine months ended September 30, 2013, as compared with the 2012 periods, reflect changes in the rate plans of Con Edison's utility subsidiaries, increases in certain operations and maintenance expenses, depreciation and property taxes and, for the nine months ended September 30, 2013, the weather impact on steam revenues. The results of operations include the operating results of the CEBs, including net mark-to-market effects.

Operations and maintenance expenses reflect primarily higher surcharges for assessments and fees that are collected in revenues from customers and higher operating costs attributable to weather-related events, offset in part by healthcare costs 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 nine months ended September 30, 2013, as compared with the 2012 periods, resulting from these and other major factors:




                         Three Months Ended           Nine Months Ended
                              Variation                   Variation
                            2013 vs. 2012               2013 vs. 2012
                                        Net                        Net
                                    Income for                  Income for
                                      Common                      Common
                                       Stock                       Stock
                        Earnings     Variation      Earnings     Variation
                       per Share   (Millions of    per Share   (Millions of
                       Variation     Dollars)      Variation     Dollars)
                     ------------  ------------  ------------  ------------
Consolidated Edison
 Company of New
 York, Inc. (CECONY)
 (a)
 Rate plans (b)      $      (0.02) $         (5) $       0.16  $         48
 Weather impact on
  steam revenues            (0.01)           (2)         0.09            27
 Operations and
  maintenance
  expenses (b)               0.08            24         (0.07)          (23)
 Depreciation,
  property taxes and
  other tax matters
  (c)                       (0.05)          (16)        (0.18)          (53)
 Other                       0.04            11          0.03             8
                     ------------  ------------  ------------  ------------
Total CECONY                 0.04            12          0.03             7
Orange and Rockland
 Utilities, Inc.
 (O&R)                      (0.01)           (5)            -             2
CEBs (d)                     0.03             9         (0.41)         (120)
Other, including
 parent company
 expenses (c)                0.02             8          0.03             8
                     ------------  ------------  ------------  ------------
Total variation      $       0.08  $         24  $      (0.35) $       (103)
                     ============  ============  ============  ============

(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 and
    nine months ended September 30, 2013, as compared to the 2012 periods
    when revenues reflected the use of certain regulatory liabilities to
    offset a temporary surcharge under CECONY's electric rate plan ($27
    million, after-tax, or $0.09 a share). The variations in operations and
    maintenance expenses include a decrease in pension costs in the three
    and nine months ended September 30, 2013, as compared to the 2012
    periods when certain pension costs that were deferred from earlier
    periods were recognized under CECONY's electric rate plan ($20 million,
    after-tax, or $0.07 a share and $18 million, after-tax, or $0.06 a
    share, respectively).
(c) Variations for the three and nine months ended September 30 reflect
    certain federal income tax benefits and related interest in the 2013
    periods for Con Edison (parent company): $7 million or $0.02 a share;
    CECONY: $9 million or $0.03 a share.
(d) These variations include, for the three months ended September 30, an
    after-tax gain of $26 million or $0.09 a share in 2013 relating to the
    LILO transactions and reflect after-tax net mark-to-market gains of $4
    million or $0.01 a share in 2013 and after-tax net mark-to-market gains
    of $17 million or $0.06 a share in 2012. These variations include, for
    the nine months ended September 30, an after-tax charge of $95 million
    or $0.32 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 $12 million or $0.04 a share in 2013 and after-tax net mark-to-
    market gains of $35 million or $0.12 a share in 2012.

The weighted average number of common shares was 293 million shares for the three and nine months ended September 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 nine months ended September 30, 2013, as compared with the 2012 periods, were as follows (expressed as a percentage of 2012 amounts):


                          Third Quarter Variation    Nine Months Variation
                               2013 vs. 2012             2013 vs. 2012
                            Actual      Adjusted      Actual      Adjusted
                         -----------  -----------  -----------  -----------
Con Edison of New York
  Electric                      (2.5)        (2.2)        (0.9)        (1.5)
  Firm - Gas                     5.9          6.2         17.8          3.2
  Steam                         (6.6)        (7.1)        10.0         (4.0)
O&R
  Electric                      (2.9)        (2.6)        (1.4)        (1.6)
  Firm - Gas                    13.8          3.1         19.9          0.5
                         -----------  -----------  -----------  -----------

Refer to the company's Third Quarter Form 10-Q, which is being filed with the Securities and Exchange Commission, for the consolidated balance sheets at September 30, 2013 and December 31, 2012 and the consolidated income statements for the three and nine months ended September 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.

Contact:
Robert McGee
212-460-4111

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. 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 June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).