Press Release
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Con Edison, Inc. Reports 2004 Second Quarter Earnings
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Company Reaffirms 2004 Earnings Projections
For Sales and Revenue Information, click here To print press release, click here NEW YORK, Jul 22, 2004 /PRNewswire-FirstCall via COMTEX/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported net income for common stock for the second quarter of 2004 of $86 million or 37 cents a share, compared with earnings of $66 million or 29 cents a share for the second quarter of 2003. The company also declared a quarterly dividend of 56-1/2 cents a share on its common stock payable September 15, 2004 to stockholders of record as of August 11, 2004. "Our solid performance in the second quarter is consistent with our earnings forecast for the year," said Eugene R. McGrath, chairman and chief executive officer. "In operations, we energized three new substations, the most in three decades. These events were just a part of our preparation for our growing summer peak loads. They also represent another milestone in our multi-billion dollar investment in the most reliable electric system in the country," he said. The company's net income for common stock for the first six months of 2004 was $241 million or $1.05 a share compared with $220 million or $1.01 a share for the first six months of 2003. The following table represents an analysis of the major factors affecting basic earnings per share for the second quarter of 2004 compared with 2003:
Earnings per
Share
Variation
Con Edison of New York:
Impact of weather in 2004 on net revenues
versus 2003 (estimated) $0.05
Sales growth and other revenue factors (estimated) 0.06
Regulatory accounting (0.02)
Higher depreciation and property tax expense (0.03)
Lower interest expense on long-term debt 0.01
Other 0.01
Total Con Edison of New York 0.08
Orange and Rockland Utilities 0.01
Con Edison Communications 0.02
Con Edison Development (0.01)
Con Edison Energy --
Con Edison Solutions (0.03)
Other (parent and inter-company accounting) 0.01
Total earnings per share variation $0.08
The earnings per share variations shown above include the dilutive effect of a higher weighted average number of common shares outstanding in the 2004 period (234 million shares) than in the 2003 period (219 million shares). The following table represents an analysis of the major factors affecting basic earnings per share for the first six months of 2004 compared with 2003:
Earnings per
Share
Variation
Con Edison of New York:
Impact of weather in 2004 on net revenues
versus 2003 (estimated) $0.03
Sales growth and other revenue factors (estimated) 0.06
Regulatory accounting 0.02
Higher depreciation and property tax expense (0.07)
Lower interest expense on long-term debt 0.02
Allowance for equity funds used during construction
and other income 0.03
Other 0.02
Total Con Edison of New York 0.11
Orange and Rockland Utilities --
Con Edison Communications 0.03
Con Edison Development (0.03)
Con Edison Energy --
Con Edison Solutions (0.05)
Other (parent and inter-company accounting) (0.02)
Total earnings per share variation $0.04
The earnings per share variations shown above include the dilutive effect of a higher weighted average number of common shares outstanding in the 2004 period (231 million shares) than in the 2003 period (217 million shares). For the second quarter and the first six months of 2004, Con Edison of New York's earnings variances reflect two significant factors. Higher net revenues in 2004 are due primarily to ongoing sales growth and the warm spring weather as compared with spring 2003. There was more than twice the number of cooling degree days in the second quarter of 2004 billing cycles as in the prior period. Higher depreciation and property taxes in 2004 reflect large continuing investments in energy delivery infrastructure. The performance of the unregulated subsidiaries and parent in the second quarter and the first six months of 2004 compared with the 2003 periods reflect lower gross margins on electric sales and higher interest expense. For the full year 2004, the company reaffirms its previous forecast of earnings in the range of $2.50 to $2.70 per share. The forecast reflects increased costs in the second half of the year for pensions and other post-retirement benefits, depreciation and property taxes, and the continued impact of the dilutive effect of common equity issuances. These factors are all addressed in Con Edison of New York's gas and steam proposed agreements and in the current electric rate proceeding. For the three months ended June 30, 2004, amounts of electricity and gas delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.9 percent and 0.6 percent, respectively, while adjusted steam delivery volumes decreased 1.2 percent, as compared to the 2003 period. For the first six months of 2004, amounts of electricity, gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.8 percent, 0.8 percent and 0.3 percent, respectively, as compared to the 2003 period. During the second quarter of 2004, the company issued 14 million shares of common stock under a public offering, resulting in net proceeds of $513 million. Refer to attachments to this press release for the condensed consolidated balance sheets at June 30, 2004 and December 31, 2003 and the consolidated income statements for the three and six months ended June 30, 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 $22 billion in assets. The company provides a wide range of energy-related products and services to its customers through its 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, a company that owns and operates generating plants and participates in other infrastructure projects; and Con Edison Communications, a telecommunications infrastructure company and service provider. For additional financial, operations and customer service information, visit Consolidated Edison, Inc.'s Web site at http://www.conedison.com .
CONSOLIDATED EDISON, INC.
CONSOLIDATED BALANCE SHEET (Condensed)
(UNAUDITED)
June 30, December 31,
2004 2003
ASSETS (Millions of Dollars)
PLANT, AT ORIGINAL COST
Utility plant -- net $14,708 $14,284
Non-utility plant -- net 946 941
NET PLANT 15,654 15,225
CURRENT ASSETS
Cash and temporary cash investments 212 49
Funds held for the redemption of long-term debt 275 --
Accounts receivable -- customers, less allowance
for uncollectible accounts 694 790
Other receivables, less allowance for uncollectible
accounts 297 184
Inventories 126 133
Prepayments 90 98
Other current assets 397 338
TOTAL CURRENT ASSETS 2,091 1,592
INVESTMENTS 253 248
DEFERRED CHARGES, REGULATORY ASSETS AND
NONCURRENT ASSETS
Goodwill 406 406
Intangible assets -- net 106 111
Prepaid pension costs 1,348 1,257
Regulatory assets 2,073 1,861
Other deferred charges and noncurrent assets 293 266
TOTAL DEFERRED CHARGES, REGULATORY ASSETS AND
NONCURRENT ASSETS 4,226 3,901
TOTAL ASSETS $22,224 $20,966
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common shareholders' equity $6,994 $6,423
Preferred stock 213 213
Long-term debt 6,971 6,733
TOTAL CAPITALIZATION 14,178 13,369
NONCURRENT LIABILITIES
Provision for injuries and damages 198 194
Pension and retiree benefits 230 205
Superfund and other environmental costs 200 193
Other noncurrent liabilities including minority
interest 150 157
TOTAL NONCURRENT LIABILITIES 778 749
CURRENT LIABILITIES
Long-term debt due within one year 291 166
Notes payable 40 159
Accounts payable 944 905
Customer deposits 234 228
Other current liabilities 419 453
TOTAL CURRENT LIABILITIES 1,928 1,911
DEFERRED CREDITS AND REGULATORY LIABILITIES
Deferred income taxes and investment tax credits 3,412 3,172
Regulatory liabilities and other deferred credits 1,928 1,765
TOTAL DEFERRED CREDITS AND REGULATORY LIABILITIES 5,340 4,937
TOTAL CAPITALIZATION AND LIABILITIES $22,224 $20,966
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
(Unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2004 2003 2004 2003
(Millions of Dollars)
Operating revenues
Electric $1,531 $1,561 $3,070 $3,054
Gas 283 326 928 946
Steam 93 97 328 334
Non-utility 262 192 528 412
Total operating revenues 2,169 2,176 4,854 4,746
Operating expenses
Purchased power 890 906 1,820 1,770
Fuel 134 102 319 286
Gas purchased for resale 155 193 557 556
Other operations and
maintenance 370 370 759 759
Depreciation and amortization 138 130 275 258
Taxes, other than income tax 256 270 538 556
Income tax 44 41 149 141
Total operating expenses 1,987 2,012 4,417 4,326
Operating income 182 164 437 420
Other income (deductions)
Investment and other income 7 8 20 14
Allowance for equity funds
used during construction 6 4 12 6
Other deductions (3) (5) (6) (8)
Income tax 5 1 6 3
Total other income
(deductions) 15 8 32 15
Interest expense
Interest on long-term debt 106 99 214 198
Other interest expense 6 7 16 16
Allowance for borrowed funds
used during construction (4) (3) (8) (5)
Net interest expense 108 103 222 209
Income before preferred stock
dividends of subsidiary 89 69 247 226
Preferred stock dividend
requirements of subsidiary 3 3 6 6
Net income for common stock $86 $66 $241 $220
Earnings per common share
-- Basic $0.37 $0.29 $1.05 $1.01
Earnings per common share
-- Diluted $0.37 $0.29 $1.04 $1.01
Average number of shares
outstanding --
Basic (in Millions) 234.0 219.3 230.6 217.1
Average number of shares
outstanding --
Diluted (in Millions) 234.9 220.3 231.6 218.0
Consolidated Edison,
Inc. - Utility sales
Electric (thousands of
kilowatthours)
Total energy delivered in
service areas 14,101,153 13,325,188 28,799,202 27,831,992
Gas (dekatherms)
Firm sales and
transportation 23,246,992 24,582,412 80,583,827 83,985,800
Steam (thousands of
pounds) 4,743,702 4,435,485 15,357,270 15,107,574
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