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Con Edison, Inc. Reports 2004 First Quarter Earnings
NEW YORK, April 22 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported net income for common stock for the first quarter of 2004 of $155 million or 69 cents a share, compared with earnings of $154 million or 72 cents a share for the first quarter of 2003. The company also declared a quarterly dividend of 561/2 cents a share on its common stock payable June 15, 2004 to stockholders of record as of May 12, 2004.
"Con Edison's performance for the first quarter represents a solid start for the year," said Eugene R. McGrath, chairman and chief executive officer. "The continuing economic recovery, coupled with anticipated new rates for Con Edison of New York's electric, gas and steam businesses, will further enhance the financial strength of the company."
The following table represents an analysis of the major factors affecting basic earnings per share for the first quarter of 2004 compared with 2003:
Earnings per Share Variation Con Edison of New York: Revenue: Impact of weather in 2004 on net revenues versus 2003 (estimated) $(0.02) Sales growth, normalized for weather (estimated) 0.03 Regulatory accounting 0.04 Expense: Lower operation and maintenance expense, principally corporate 0.01 Increased pension & other post-retirement benefit costs (0.01) Higher depreciation and property tax expense (0.03) Other 0.01 Total Con Edison of New York 0.03 Orange and Rockland Utilities (0.01) Unregulated subsidiaries and parent company (0.05) Total earnings per share variation $(0.03)
The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2004 period (226 million shares) than in the 2003 period (214 million shares).
For Con Edison of New York, net revenues reflect 6 percent fewer heating degree days in the electric, gas and steam billing cycles in the first quarter of 2004 as compared with the 2003 period. Delivery volumes adjusted for weather and billing days more than offset the effect of the weather, with increases of 1.7 percent for electric, 0.9 percent for firm gas and 1.0 percent for steam.
Con Edison of New York's earnings variances reflect two significant factors. In 2003, provision was made for a refund to customers of electric earnings in excess of a targeted return, while there was no such provision in 2004. Higher depreciation and property taxes in 2004 reflect large continuing capital investment in energy delivery infrastructure.
Regulated utility construction expenditures for 2004 are estimated at $1.2 billion, the same level as 2003. A number of large construction projects are scheduled for completion this year, including three major substations that will be on line this summer to meet demand growth. While not entirely covered under current rate plans, the company expects Con Edison of New York's construction program to be fully reflected in rates to be set through its current gas and steam rate proceedings and its upcoming electric proceeding. Capital expenditures for Orange and Rockland were addressed in its 2003 rate proceedings.
The performance of the unregulated subsidiaries and parent in the first quarter of 2004 compared with the 2003 period reflects lower gross margins on electric sales and higher interest expense.
For the full year 2004, the company confirms its previous forecast of earnings in the range of $2.60 to $2.80 per share.
Con Edison has filed "shelf" Registration Statements on Form S-3 with the Securities and Exchange Commission covering $925 million of securities, including debt, preferred stock and common stock. In addition, Con Edison of New York and Orange and Rockland have filed registration statements covering $825 million and $200 million of their debt securities, respectively. The form and amount of securities to be issued by each of the companies will be determined as the companies continue to review their financing plans. The earnings forecast shown above does not reflect dilution from any common stock that may be issued in addition to ongoing issuances under the dividend reinvestment and employee stock plans.
Refer to the attachments to this press release for the condensed consolidated balance sheets at March 31, 2004 and December 31, 2003 and the consolidated income statements for the three months ended March 31, 2004 and 2003.
The press release contains forward-looking statements of future expectations. Actual results might differ materially from those projected because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission.
Consolidated Edison, Inc. (NYSE: ED) is one of the nation's largest investor-owned energy companies, with $10 billion in annual revenues and approximately $21 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following six 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; Con Edison Solutions, a retail energy services company; Con Edison Energy, a wholesale energy supply company; Con Edison Development, an infrastructure development company; and Con Edison Communications, a telecommunications infrastructure company and service provider.
Consolidated Edison, Inc. CONSOLIDATED BALANCE SHEET (Condensed) (UNAUDITED) March 31, 2004 December 31, 2003 (Millions of Dollars) ASSETS PLANT, AT ORIGINAL COST Utility plant - net $14,487 $14,284 Non-utility plant - net 952 941 NET PLANT 15,439 15,225 CURRENT ASSETS Cash and temporary cash investments 74 67 Accounts receivable - customers, less allowance for uncollectible accounts 795 790 Other receivables, less allowance for uncollectible accounts 268 184 Inventories 132 133 Prepayments 282 98 Other current assets 253 320 TOTAL CURRENT ASSETS 1,804 1,592 INVESTMENTS 250 248 DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS Goodwill 406 406 Intangible assets - net 108 111 Prepaid pension costs 1,303 1,257 Regulatory assets 1,899 1,861 Other deferred charges and noncurrent assets 304 266 TOTAL DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS 4,020 3,901 TOTAL ASSETS* $21,513 $20,966 * Con Edison is continuing to review whether, under FASB's revised Interpretation No. 46, "Consolidation of Variable Interest Entities" (FIN 46R), it will be required to deconsolidate its interest in a 237 MW facility located in Lakewood, New Jersey. Consolidated Edison, Inc. CONSOLIDATED BALANCE SHEET (Condensed) (UNAUDITED) March 31, 2004 December 31, 2003 (Millions of Dollars) CAPITALIZATION AND LIABILITIES CAPITALIZATION Common shareholders' equity $6,491 $6,423 Preferred stock 213 213 Long-term debt 6,987 6,733 TOTAL CAPITALIZATION 13,691 13,369 NONCURRENT LIABILITIES Provision for injuries and damages 202 194 Pension and retiree benefits 222 205 Superfund and other environmental costs 199 193 Other noncurrent liabilities including minority interest 149 157 TOTAL NONCURRENT LIABILITIES 772 749 CURRENT LIABILITIES Long-term debt due within one year 16 166 Notes payable 394 159 Accounts payable 964 905 Customer deposits 227 228 Other current liabilities 342 453 TOTAL CURRENT LIABILITIES 1,943 1,911 DEFERRED CREDITS AND REGULATORY LIABILITIES Deferred income taxes and investment tax credits 3,317 3,172 Regulatory liabilities and other deferred credits 1,790 1,765 TOTAL DEFERRED CREDITS AND REGULATORY LIABILITIES 5,107 4,937 TOTAL CAPITALIZATION AND LIABILITIES* $21,513 $20,966 * See footnote on page 1 of 2 of the Consolidated Balance Sheet. CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003 (Unaudited) 2004 2003 (Millions of Dollars) Operating revenues Electric $1,539 $1,493 Gas 645 620 Steam 235 238 Non-utility 266 219 Total operating revenues 2,685 2,570 Operating expenses Purchased power 931 865 Fuel 185 185 Gas purchased for resale 400 363 Other operations and maintenance 390 389 Depreciation and amortization 137 129 Taxes, other than income tax 282 284 Income tax 105 98 Total operating expenses 2,430 2,313 Operating income 255 257 Other income (deductions) Investment and other income 12 5 Allowance for equity funds used during construction 6 2 Other deductions (3) (3) Income tax 2 2 Total other income (deductions) 17 6 Income before interest expense 272 263 Interest expense, net of amounts capitalized 114 106 Income before preferred stock dividends 158 157 Preferred stock dividend requirements 3 3 Net income for common stock $155 $154 Earnings per common share - Basic $0.69 $0.72 Earnings per common share - Diluted $0.68 $0.72 Average number of shares outstanding - Basic (in Millions) 226.2 214.2 Average number of shares outstanding - Diluted (in Millions) 227.5 215.1 Consolidated Edison, Inc. utility sales Electric (thousands of kilowatthours) Total energy delivered in service areas 14,698,680 14,506,804 Gas (dekatherms) Firm sales and transportation 57,260,948 59,382,894 Steam (thousands of pounds) 10,613,568 10,672,089
SOURCE Consolidated Edison, Inc. -0- 04/22/2004 /CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111/ /Web site: http://www.coned.com/ (ED) CO: Consolidated Edison, Inc. ST: New York
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