Press Release
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Con Edison, Inc. Reports 2009 Third Quarter Earnings
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3rd Quarter 2009 Sales and Revenue Report
NEW YORK, NY, Nov 02, 2009 (MARKETWIRE via COMTEX) -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported third quarter earnings from ongoing operations, which excludes items discussed in the table below, were $319 million or $1.16 a share compared with $269 million or $0.98 a share in 2008. The company's net income for common stock was $336 million or $1.22 a share compared with $182 million or $0.66 a share in 2008. Excluding items discussed in the table below, earnings from ongoing operations for the first nine months of 2009 were $665 million or $2.43 a share compared with $620 million or $2.27 a share for the first nine months of 2008. The company's net income for common stock was $666 million or $2.43 a share compared with $1,036 million or $3.80 a share for the first nine months of 2008. "Reliability, energy efficiency, and infrastructure investments remained priorities as the company performed well, and delivered results in line with expectations, during a relatively mild summer," said Kevin Burke, the company's Chairman, President and Chief Executive Officer. "The $136 million smart grid stimulus grant, for which the company has been selected by the U.S. Department of Energy, will help promote economic vitality and new employment opportunities, complementing other investments we are already making in our energy delivery systems." The following table is a reconciliation of Con Edison's reported earnings per share and reported net income for common stock to earnings per share and earnings from ongoing operations for the three and nine months ended September 30, 2009 and 2008.
Third Quarter
Net Income
Earnings per Share (Millions of Dollars)
--------------------- ---------------------
2009 2008 2009 2008
---------- --------- ---------- ---------
Reported earnings per share and
net income for common stock -
GAAP basis (basic) $ 1.22 $ 0.66 $ 336 $ 182
Less: Northeast Utilities
litigation settlement - - - -
Less: Gain on the sale of Con
Edison Development's
generation projects and
discontinued operations - - - 1
Less: Net mark-to-market
effects of competitive energy
businesses 0.06 (0.32) 17 (88)
---------- --------- ---------- ---------
Ongoing operations $ 1.16 $ 0.98 $ 319 $ 269
========== ========= ========== =========
Nine Months Ended
Net Income
Earnings per Share (Millions of Dollars)
--------------------- ---------------------
2009 2008 2009 2008
---------- --------- ---------- ---------
Reported earnings per share and
net income for common stock -
GAAP basis (basic) $ 2.43 $ 3.80 $ 666 $ 1,036
Less: Northeast Utilities
litigation settlement - 0.11 - 30
Less: Gain on the sale of Con
Edison Development's
generation projects and
discontinued operations - 1.51 - 411
Less: Net mark-to-market
effects of competitive energy
businesses - (0.09) 1 (25)
---------- --------- ---------- ---------
Ongoing operations $ 2.43 $ 2.27 $ 665 $ 620
========== ========= ========== =========
For the year 2009, the company confirms its previous forecast of earnings per share from ongoing operations in the range of $3.00 to $3.20 a share. Earnings per share from ongoing operations excludes the net mark-to-market effects of the competitive energy businesses. The results of operations for the three and nine months ended September 30, 2009, as compared with the 2008 period, also reflect changes in the company's rate plans (including additional revenues designed to recover increases in certain operations and maintenance expenses, depreciation and property taxes, interest charges and the impact of revenue decoupling mechanisms) and the operating results of the competitive energy businesses (including net mark-to-market effects). The results of operations for the three months ended September 30, 2009, include a higher allowed electric return on common equity for Con Edison of New York as compared with the 2008 period reflecting increased capital costs. The results of operations for the nine months ended September 30, 2009 as compared with the 2008 period include a higher allowed return for the second and third quarters of 2009, offset in part by a lower allowed electric return on equity for Con Edison of New York for the first quarter of 2009. Operations and maintenance expenses were higher in the three and nine months ended September 30, 2009 compared with the 2008 period reflecting primarily higher costs, which are generally reflected in rates, such as pension and other post-retirement benefits and uncollectible accounts that were offset in part by austerity initiatives reflecting the general economic downturn. Depreciation and property taxes were higher in the three and nine months ended September 30, 2009 compared with the 2008 period reflecting primarily the impact from increased capital expenditures and higher property tax rates. Results of operations for the nine months ended September 2008 include the gain on the sale of generation projects, the impact of discontinued operations and resolution of litigation with Northeast Utilities. The following table presents the estimated effect on earnings per share and net income for common stock for the 2009 period compared with the 2008 period, resulting from these and other major factors:
Third Quarter Nine Months Ended
Variation Variation
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)
--------- --------- --------- ---------
Con Edison of New
York (a)
Rate plans,
primarily to
recover
increases in
certain costs $ 0.49 $ 134 $ 0.95 $ 256
Operations and
maintenance
expense (0.18) (48) (0.39) (107)
Long Island
City power
outage reserve
in 2008 - - 0.05 14
Depreciation
and property
taxes (0.20) (54) (0.38) (104)
Net interest
expense (0.04) (11) (0.12) (32)
Other (includes
dilutive effect
of new stock
issuances) 0.05 11 (0.03) (2)
--------- --------- --------- ---------
Total Con Edison of
New York 0.12 32 0.08 25
Orange and Rockland
Utilities (O&R) - - (0.01) (1)
Competitive energy
businesses
Earnings excluding
net mark-to-market
effects, gain on
sale of generation
projects and
discontinued
operations 0.07 19 0.10 27
Net mark-to-market
effects (b) 0.38 105 0.09 26
Gain on the sale
of generation
projects - (1) (0.50) (137)
Discontinued
operations (c) - - (1.01) (274)
--------- --------- --------- ---------
Total competitive
energy businesses 0.45 123 (1.32) (358)
Northeast Utilities
litigation
settlement - - (0.11) (30)
Other, including
parent company
expenses (0.01) (1) (0.01) (6)
--------- --------- --------- ---------
Total variation $ 0.56 $ 154 $ (1.37) $ (370)
========= ========= ========= =========
(a) Under the revenue decoupling mechanisms in Con Edison of New York's
electric and gas rate plans (effective April 2008 and October 2007,
respectively) 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.
(b) These variations reflect after-tax net mark-to-market gains of $17
million or $0.06 a share in the third quarter of 2009, after-tax net
mark-to-market losses of $88 million or $0.32 a share in the third
quarter of 2008, and after-tax net mark-to-market gains of $1 million
or $0.00 a share in the first nine months of 2009 and after-tax net
mark-to-market losses of $25 million or $0.09 a share in the first nine
months of 2008.
(c) These variations reflect the discontinued operations of Con Edison
Development's generation projects, which includes a $270 million
after-tax gain on the sale of its generation plants for the nine
months ended September 30, 2008.
The changes in the amounts of energy delivered by the company's utility subsidiaries, for actual and as adjusted for variations in weather and billing days, for the three and nine months ended September 30, 2009, as compared with the 2008 period were as follows (expressed as a percentage of 2008 amounts):
Nine Months Ended
Third Quarter Variation Variation
Actual Adjusted Actual Adjusted
----------- ----------- ----------- -----------
Con Edison of New York
Electric (5.7) (2.7) (2.7) (1.7)
Firm - Gas 7.3 7.4 5.8 0.9
Steam (10.0) (6.3) (1.1) (4.4)
O&R
Electric (2.8) (0.1) (5.7) (2.4)
Firm - Gas 4.5 0.7 2.9 0.0
----------- ----------- ----------- -----------
Refer to the company's Third Quarter Form 10-Q, which will be filed with the Securities and Exchange Commission, for the consolidated balance sheets at September 30, 2009 and December 31, 2008 and the consolidated income statements for the three and nine months ended September 30, 2009 and 2008. 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 for common stock, 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 $14 billion in annual revenues and $34 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 participates in infrastructure projects.
Contact: SOURCE: Consolidated Edison, Inc. |
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