Press Release
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Con Edison, Inc. Reports 2006 Third Quarter Earnings
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3rd Quarter 2006 Sales and Revenue Report
NEW YORK, Nov 02, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2006 third quarter earnings of $231 million or $0.93 a share, compared with earnings of $285 million or $1.17 cents a share for the third quarter of 2005. "Third quarter results reflect costs associated with the summer power outages and milder weather than last year," said Kevin Burke, Chairman, President and Chief Executive Officer. "We continue to make significant investments throughout our system to meet the growing needs of our customers," he said. The company's net income for common stock for the first nine months of 2006 was $536 million or $2.17 a share compared with $581 million or $2.39 a share for the first nine months of 2005. For the year 2006, the company confirms its previous forecast of earnings in the range of $2.75 to $3.00 per share. The results of operations for the three and nine months ended September 30, 2006, as compared with the 2005 periods, reflect milder weather in 2006, the utilities' rate plans, expenditures related to the 2006 power outages, increased interest expense and the results of the competitive energy businesses including net mark-to-market losses. The following table presents the estimated effect on earnings per share and net income for the third quarter and first nine months of 2006, as compared with the 2005 periods, resulting from these and other major factors:
Third Quarter Nine Months Ended
Variation Variation
Net Net
Income Income
Earnings (Millions Earnings (Millions
per of per of
Share Dollars) Share Dollars)
Con Edison of New York
Sales growth $0.05 $13 $0.11 $27
Impact of weather in 2006
versus 2005 (0.12) (31) (0.24) (60)
Electric rate plan 0.10 26 0.52 128
Gas rate plan 0.01 3 0.06 14
Steam rate plan - - 0.05 11
Queens power outage (0.16) (39) (0.16) (39)
Operations and maintenance
expense - other (0.11) (28) (0.20) (49)
Stock-based compensation
expense - (1) (0.03) (7)
Depreciation and property
taxes (0.04) (11) (0.21) (52)
Interest charges - timing of
deductions of
construction-related costs (0.06) (14) (0.06) (14)
Interest charges - other (0.04) (11) (0.10) (26)
Other (includes dilutive
effect of new stock
issuances) 0.01 10 - 11
Total Con Edison of New York (0.36) (83) (0.26) (56)
Orange and Rockland Utilities - (1) (0.04) (9)
Competitive energy businesses
Earnings excluding net
mark-to-market losses 0.09 21 0.21 53
Net mark-to-market losses 0.04 8 (0.10) (26)
Other, including parent company
expenses (0.01) (1) (0.05) (11)
Discontinued operations - 2 0.02 4
Total variation ($0.24) ($54) ($0.22) ($45)
The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2006 three-month and nine-month periods (249 million and 247 million shares, respectively) than in the 2005 three-month and nine-month periods (244 million shares in each period). For the three months ended September 30, 2006, 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 by 3.9 percent and 0.9 percent compared with the 2005 period, respectively. Steam deliveries, after adjusting for variations in weather and billing days in the period, decreased 0.1 percent compared with the prior period. For the first nine months of 2006, 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 2.3 percent and 0.3 percent compared with the 2005 period, respectively. Steam deliveries, after adjusting for variations in weather and billing days in the period, decreased 0.8 percent compared with the 2005 period. Refer to the attachments to this press release for the consolidated balance sheets at September 30, 2006 and December 31, 2005 and the consolidated income statements for the three and nine months ended September 30, 2006 and 2005. For additional information related to utility sales and revenues go to the Con Edison Web site at www.conedison.com, select "Investor Information" and then select "Financial Reports." 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. Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with approximately $12 billion in annual revenues and $26 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 supply company; and Consolidated Edison Development, Inc., a company that owns and operates generating plants and participates in other infrastructure projects.
Consolidated Edison, Inc.
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30, 2006 December 31, 2005
(Millions of Dollars)
ASSETS
UTILITY PLANT, AT ORIGINAL COST
Electric $14,270 $13,586
Gas 3,182 3,044
Steam 1,676 1,624
General 1,580 1,541
TOTAL 20,708 19,795
Less: Accumulated depreciation 4,560 4,355
Net 16,148 15,440
Construction work in progress 1,047 771
NET UTILITY PLANT 17,195 16,211
NON-UTILITY PLANT
Unregulated generating assets, less
accumulated depreciation of
$121 and $102 in 2006 and 2005,
respectively 791 810
Non-utility property, less
accumulated depreciation of $35 and
$31 in 2006 and 2005, respectively 34 38
Non-utility property held for sale - 52
Construction work in progress 1 1
NET PLANT 18,021 17,112
CURRENT ASSETS
Cash and temporary cash investments 234 81
Restricted cash 19 15
Accounts receivable - customers, less
allowance for uncollectible accounts
of $43 and $39 in 2006 and 2005,
respectively 809 1,025
Accrued unbilled revenue 112 116
Other receivables, less allowance for
uncollectible accounts of $4 and $6
in 2006 and 2005, respectively 463 348
Fuel oil, at average cost 55 47
Gas in storage, at average cost 260 248
Materials and supplies, at average
cost 143 130
Prepayments 507 434
Fair value of derivative assets 143 331
Recoverable energy costs 155 221
Current assets held for sale - 8
Deferred derivative losses 196 9
Other current assets 312 147
TOTAL CURRENT ASSETS 3,408 3,160
INVESTMENTS 272 265
DEFERRED CHARGES, REGULATORY ASSETS
AND NONCURRENT ASSETS
Goodwill 406 406
Intangible assets, less accumulated
amortization of $32 and
$24 in 2006 and 2005, respectively 82 90
Prepaid pension costs 1,482 1,474
Regulatory assets 2,193 2,017
Other deferred charges and noncurrent
assets 277 324
TOTAL DEFERRED CHARGES, REGULATORY
ASSETS AND NONCURRENT ASSETS 4,440 4,311
TOTAL ASSETS $26,141 $24,848
Consolidated Edison, Inc.
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30, 2006 December 31, 2005
(Millions of Dollars)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common shareholders' equity $7,928 $7,310
Preferred stock of subsidiary 213 213
Long-term debt 8,066 7,398
TOTAL CAPITALIZATION 16,207 14,921
MINORITY INTERESTS 41 42
NONCURRENT LIABILITIES
Obligations under capital leases 27 30
Provision for injuries and damages 169 167
Pensions and retiree benefits 258 223
Superfund and other environmental
costs 266 238
Asset retirement obligations 98 94
Noncurrent liabilities held for sale - 9
Fair value of derivative liabilities 125 24
Other noncurrent liabilities 42 40
TOTAL NONCURRENT LIABILITIES 985 825
CURRENT LIABILITIES
Long-term debt due within one year 444 22
Notes payable 431 755
Accounts payable 934 1,234
Customer deposits 225 229
Accrued taxes 50 94
Accrued interest 142 102
Accrued wages 85 77
Fair value of derivative liabilities 442 133
Deferred derivative gains 3 224
Deferred income taxes - recoverable
energy costs 63 90
Current liabilities held for sale - 12
Other current liabilities 295 349
TOTAL CURRENT LIABILITIES 3,114 3,321
DEFERRED CREDITS AND REGULATORY
LIABILITIES
Deferred income taxes and investment
tax credits 4,016 3,644
Regulatory liabilities 1,753 2,062
Other deferred credits 25 33
TOTAL DEFERRED CREDITS AND REGULATORY
LIABILITIES 5,794 5,739
TOTAL CAPITALIZATION AND LIABILITIES $26,141 $24,848
Consolidated Edison, Inc.
CONSOLIDATED INCOME STATEMENT
(Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
2006 2005 2006 2005
(Millions of Dollars/Except Share Data)
OPERATING REVENUES
Electric $2,478 $2,502 $5,903 $5,646
Gas 211 232 1,404 1,314
Steam 104 111 485 474
Non-utility 648 492 1,522 1,089
TOTAL OPERATING REVENUES 3,441 3,337 9,314 8,523
OPERATING EXPENSES
Purchased power 1,587 1,522 3,790 3,411
Fuel 200 222 600 553
Gas purchased for resale 100 133 845 786
Other operations and maintenance 556 420 1,433 1,239
Depreciation and amortization 155 147 460 434
Taxes, other than income taxes 328 323 945 874
Income taxes 140 173 310 322
TOTAL OPERATING EXPENSES 3,066 2,940 8,383 7,619
OPERATING INCOME 375 397 931 904
OTHER INCOME (DEDUCTIONS)
Investment and other income 10 11 30 29
Allowance for equity funds used
during construction 2 - 3 8
Preferred stock dividend
requirements of subsidiary (3) (3) (8) (8)
Other deductions (3) (3) (12) (14)
Income taxes 11 5 10 10
TOTAL OTHER INCOME (DEDUCTIONS) 17 10 23 25
INTEREST EXPENSE
Interest on long-term debt 123 111 356 330
Other interest 40 9 65 19
Allowance for borrowed funds
used during construction (2) - (4) (6)
NET INTEREST EXPENSE 161 120 417 343
INCOME FROM CONTINUING OPERATIONS 231 287 537 586
LOSS FROM DISCONTINUED OPERATIONS
(NET OF INCOME TAXES) - (2) (1) (5)
NET INCOME $231 $285 $536 $581
EARNINGS PER COMMON SHARE - BASIC
Continuing operations $0.93 $1.17 $2.17 $2.41
Discontinued operations - - - (0.02)
Net income $0.93 $1.17 $2.17 $2.39
EARNINGS PER COMMON SHARE - DILUTED
Continuing operations $0.92 $1.17 $2.16 $2.40
Discontinued operations - (0.01) - (0.02)
Net income $0.92 $1.16 $2.16 $2.38
DIVIDENDS DECLARED PER SHARE OF
COMMON STOCK $0.575 $0.570 $1.725 $1.710
AVERAGE NUMBER OF SHARES OUTSTANDING
- BASIC (IN MILLIONS) 249.0 244.4 247.0 243.5
AVERAGE NUMBER OF SHARES OUTSTANDING
- DILUTED (IN MILLIONS) 250.0 245.4 248.0 244.2
SOURCE Consolidated Edison, Inc. Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111 |
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