|By Marketwired .||
|August 7, 2014 06:04 PM EDT||
NEW YORK, NY -- (Marketwired) -- 08/07/14 -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2014 second quarter net income for common stock of $212 million or $0.73 a share compared with $172 million or $0.59 a share in 2013. Earnings from ongoing operations, which exclude the effects of the gain on sale of solar energy projects, the lease in/lease out (LILO) transactions and the net mark-to-market effects of the competitive energy businesses (CEBs), were $189 million or $0.65 a share in 2014 compared with $160 million or $0.55 a share in 2013.
For the first six months of 2014, net income for common stock was $574 million or $1.96 a share compared with $364 million or $1.24 a share in the first six months of 2013. Earnings from ongoing operations, which exclude the effects of the gain on sale of solar energy projects, the LILO transactions and the net mark-to-market effects of the CEBs, were $532 million or $1.82 a share in 2014 compared with $476 million or $1.62 a share in 2013.
"We continued to meet financial expectations in the second quarter, while our field operations benefited from a mild spring as we prepared our delivery systems for summer," said John McAvoy, Con Edison's chairman, president and CEO. "Our cost management strategies are helping to maximize productivity and efficiency. We're also proud of the success of our sustainability strategy, which has yielded environmental dividends and national recognition, including a 43 percent reduction in greenhouse gas emissions since 2005 and Newsweek naming us the top U.S. utility in their 2014 Green Rankings."
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, 2014 and 2013.
Three Months Ended Six Months Ended Net Income for Net Income for Earnings Common Stock Earnings Common Stock per (Millions of per (Millions of Share Dollars) Share Dollars) ------------------------------------------------------------- 2014 2013 2014 2013 2014 2013 2014 2013 ---------------------------------------------------------------------------- Reported earnings per share and net income for common stock- GAAP basis (basic) $ 0.73 $ 0.59 $ 212 $ 172 $ 1.96 $ 1.24 $ 574 $ 364 Less: Gain on sale of solar energy projects (a) 0.09 - 26 - 0.09 - 26 - Add: LILO transactions (b) - (0.10) - (29) (0.02) 0.41 (7) 121 Less: Net mark-to- market effects of the CEBs (c) (0.01) (0.06) (3) (17) 0.03 0.03 9 9 ---------------------------------------------------------------------------- Earnings from ongoing operations - non-GAAP $ 0.65 $ 0.55 $ 189 $ 160 $ 1.82 $ 1.62 $ 532 $ 476 ============================================================================ (a) After taxes of $19 million for the three and six months ended June 30, 2014. (b) In January 2013, a court disallowed tax losses claimed by Con Edison relating to the 1997 and 1999 LILO transactions. For the six months ended June 30, 2014 and 2013, the impact of the LILO transactions on earnings were a $7 million (after taxes of $6 million) benefit and a $121 million (after taxes of $80 million) charge, respectively, reflecting the recalculation of the accounting effect of the LILO transactions and interest on the tax liability. For the three months ended June 30, 2013, the impact of the LILO transactions on earnings was $29 million (after taxes of $22 million) benefit, reflecting the termination of the 1999 LILO transaction. (c) After taxes of $(2) million and $(13) million for the three months ended June 30, 2014 and 2013 and $6 million and $6 million for the six months ended June 30, 2014 and 2013, respectively.
The company expects its earnings from ongoing operations for the year 2014 to be in the range of $3.70 to $3.85 a share. The company's previous forecast of 2014 earnings was in the range of $3.65 to $3.85 a share. Earnings per share from ongoing operations exclude a $0.09 a share gain on sale of solar energy projects, a $0.02 a share benefit relating to 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, 2014, as compared to the 2013 periods, reflect primarily changes in rate plans of Con Edison's utility subsidiaries and the weather impact on its steam delivery service. The rate plans provide for revenues to cover expected increases in certain operations and maintenance expenses, and depreciation and property taxes, reflecting primarily the impact of higher utility plant balances. The results of operations also include the gain on sale of solar energy projects, the impact of the LILO transactions and the net mark-to-market effects of the CEBs.
Operations and maintenance expenses for CECONY were higher in the 2014 periods primarily due to operating costs attributable to emergency response and the support and protection of company underground facilities to accommodate municipal projects and, in the six month period were offset in part by lower pension costs.
The following table presents the estimated effect on earnings per share and net income for common stock for the three and six months ended June 30, 2014, as compared with the 2013 periods, resulting from these and other major factors:
Three Months Ended Six Months Ended Variation 2014 vs. 2013 Variation 2014 vs. 2013 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) ---------------------------------------------------------------------------- CECONY (a) Rate plans $ 0.16 $ 45 $ 0.32 $ 93 Weather impact on steam revenues - - 0.04 13 Operations and maintenance expense (0.05) (14) (0.02) (4) Depreciation and property taxes (0.05) (13) (0.09) (28) Other - 1 0.01 2 ----------- ----------- ----------- ----------- Total CECONY 0.06 19 0.26 76 Orange and Rockland Utilities (O&R) (a) 0.01 2 (0.02) (7) CEBs (b) 0.06 16 0.46 137 Other, including parent company expenses 0.01 3 0.02 4 ---------------------------------------------------------------------------- Total variation $ 0.14 $ 40 $ 0.72 $ 210 ============================================================================ (a) Under the revenue decoupling mechanisms in CECONY's and O&R's New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. Under the rate plans, pension and other postretirement costs and certain other costs are reconciled to amounts reflected in rates for such costs. (b) These variations include the gain on sale of solar energy projects, the impact of the LILO transactions and the net mark-to-market effects shown in the table on page 1. In addition, the variations include a tax benefit in the six months ended June 30, 2013 of $15 million or $0.05 a share resulting from the acceptance by the Internal Revenue Service of the company's claim for manufacturing tax deductions.
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, 2014 and December 31, 2013 and the consolidated income statements for the three and six months ended June 30, 2014 and 2013. 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 also is 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 $40 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 energy infrastructure projects.
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Jul. 28, 2015 05:00 AM EDT Reads: 1,649
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...
Jul. 27, 2015 10:15 PM EDT Reads: 266
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Jul. 27, 2015 10:00 PM EDT Reads: 1,315
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 27, 2015 09:45 PM EDT Reads: 968
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...
Jul. 27, 2015 09:00 PM EDT Reads: 2,024
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Jul. 27, 2015 08:45 PM EDT Reads: 181
Delphix, the market leader in Data as a Service (DaaS), has been announced winner of the DevOps Solution Award at the prestigious Computing Vendor Excellence Awards in London. The awards celebrate the achievements of the technology vendors and service providers that are leading the field of enterprise IT. Delphix was recognised as the vendor demonstrating the most effective support of DevOps culture for its ability to improve time to market and collaboration between teams.
Jul. 27, 2015 08:00 PM EDT Reads: 256
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 27, 2015 06:30 PM EDT Reads: 306
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
Jul. 27, 2015 06:00 PM EDT Reads: 330
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 27, 2015 06:00 PM EDT Reads: 517
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Jul. 27, 2015 05:30 PM EDT Reads: 1,332
Sysdig has announced two significant milestones in its mission to bring infrastructure and application monitoring to the world of containers and microservices: a $10.7 million Series A funding led by Accel and Bain Capital Ventures (BCV); and the general availability of Sysdig Cloud, the first monitoring, alerting, and troubleshooting platform specializing in container visibility, which is already used by more than 30 enterprise customers. The funding will be used to drive adoption of Sysdig Clo...
Jul. 27, 2015 05:00 PM EDT Reads: 399
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jul. 27, 2015 03:00 PM EDT Reads: 429
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Jul. 27, 2015 03:00 PM EDT Reads: 1,223
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 27, 2015 03:00 PM EDT Reads: 299