Press Release
| View printer-friendly version |
|
Con Edison Reports 2009 Earnings
|
|
4th Quarter and Full Year 2009 Sales and Revenue Report
NEW YORK, NY, Jan 21, 2010 (MARKETWIRE via COMTEX) -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2009 net income for common stock of $868 million or $3.16 a share compared with $1,196 million or $4.38 a share in 2008. Excluding items identified in the table below, earnings from ongoing operations were $849 million or $3.09 a share compared with $820 million or $3.00 a share in 2008. For the fourth quarter of 2009, the company's net income for common stock was $202 million or $0.73 a share compared with $160 million or $0.58 a share in the 2008 fourth quarter. Excluding items discussed in the table below, earnings from ongoing operations for the fourth quarter of 2009 were $184 million or $0.67 a share compared with $200 million or $0.72 a share for the fourth quarter of 2008. "Our 2009 financial performance, in a difficult economic environment, reflects the capital investments we have made in our energy infrastructure to meet the expectations of our customers for safe and reliable service," said Kevin Burke, the company's Chairman, President and Chief Executive Officer. "Our innovative smart grid pilot project in Long Island City will demonstrate new ways that these emerging technologies can help provide a more flexible, cost-effective, and reliable energy future for our service areas." The company also today declared a quarterly dividend of 59 1/2 cents a share on its common stock, payable March 15, 2010 to shareholders of record as of February 17, 2010, an annualized increase of 2 cents over the previous annualized dividend of $2.36 a share. "The increase in the dividend, the 36th consecutive annual increase, both acknowledges those who have invested in our company and encourages new investors to provide the capital we require to meet the needs of our customers," said Robert Hoglund, Senior Vice President and Chief Financial Officer. 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 months and year ended December 31, 2009, as compared with the 2008 periods. Fourth Quarter Year Ended
Earnings Net Income Earnings Net Income
per (Millions per (Millions
Share of Dollars) Share of Dollars)
----------------------------------------------------------
2009 2008 2009 2008 2009 2008 2009 2008
----- ----- ----- ----- ----- ----- ----- ------
Reported
earnings per
share and net
income for
common
stock- GAAP
basis (basic) $0.73 $0.58 $ 202 $ 160 $3.16 $4.38 $ 868 $1,196
Less: Northeast
Utilities
litigation
settlement - - - - - 0.11 - 30
Less: Gain on
the sale of
Con Edison
Development's
generation
projects and
discontinued
operations - (0.02) - (6) - 1.49 - 405
Less: Net
mark-to-market
effects of
competitive
energy
businesses 0.06 (0.12) 18 (34) 0.07 (0.22) 19 (59)
Ongoing
operations $0.67 $0.72 $184 $200 $3.09 $3.00 $849 $820
The company expects its earnings from ongoing operations for 2010 to be in the range of $3.10 to $3.30 a share. Earnings per share from ongoing operations excludes the net mark-to-market effects of the competitive energy businesses. The forecast reflects capital investments of $2,300 million, substantially all of which will be spent at the company's regulated utilities. The company also expects to issue common stock of between $300 million and $500 million in addition to stock issuances under the company's dividend reinvestment and employee stock plans, and long-term debt issuances of between $600 million and $900 million in addition to debt issuances for $680 million of maturing securities. The results of operations for the three months and year ended December 31, 2009, as compared with the 2008 period, 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), a regulatory reserve in December 2009 relating to the New York State Public Service Commission's review of capital spent during the period April 2005 through March 2008, and the operating results of the competitive energy businesses (including net mark-to-market effects). The results of operations for the three months ended December 31, 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 year ended December 31, 2009 as compared with the 2008 period include a higher allowed return for the second, third and fourth quarters of 2009, offset in part by a lower allowed electric return on common equity for Con Edison of New York for the first quarter of 2009. Operations and maintenance expenses were higher in the three months and year ended December 31, 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 months and year ended December 31, 2009 compared with the 2008 period reflecting primarily the impact from increased capital expenditures and higher property tax rates. Results of operations for the year ended December 31, 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: Fourth Quarter Year Ended
Variation Variation
2009 vs. 2008 2009 vs. 2008
Net Income Net Income
for Common for Common
Stock Stock
Variation Variation
Earnings (Millions Earnings (Millions
per Share of per Share of
Variation Dollars) Variation Dollars)
---------- ---------- ---------- ----------
Con Edison of New York (a)
Rate plans, primarily
to recover increases
in certain costs $ 0.36 $ 97 $ 1.28 $ 351
Operations and
maintenance expense (0.23) (62) (0.62) (169)
Long Island City power
outage reserve in
2008 - - 0.05 14
2005 - 2008 capital
expenditure reserve (0.05) (14) (0.05) (14)
Depreciation and
property taxes (0.17) (47) (0.55) (151)
Net interest expense (0.02) (5) (0.14) (38)
Other (includes
dilutive effect of
new stock issuances) 0.01 4 - 5
---------- ---------- ---------- ----------
Total Con Edison of New
York (0.10) (27) (0.03) (2)
Orange and Rockland
Utilities (O&R) - 1 - (1)
Competitive energy
businesses
Earnings excluding net
mark-to-market
effects, gain on sale
of generation
projects and
discontinued
operations 0.05 11 0.15 39
Net mark-to-market
effects (b) 0.18 52 0.29 78
Gain on the sale of
generation projects 0.02 6 (0.48) (131)
Discontinued
operations (c) - - (1.01) (274)
---------- ---------- ---------- ----------
Total competitive energy
businesses 0.25 69 (1.05) (288)
Northeast Utilities
litigation settlement - - (0.11) (30)
Other, including parent
company expenses - (1) (0.03) (7)
---------- ---------- ---------- ----------
Total variation $ 0.15 $ 42 $ (1.22) $ (328)
========== ========== ========== ==========
(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 $18
million or $0.06 a share in the fourth quarter of 2009, after-tax net
mark-to-market losses of $34 million or $0.12 a share in the fourth
quarter of 2008, and after-tax net mark-to-market gains of $19 million
or $0.07 a share in 2009 and after-tax net mark-to-market losses of $59
million or $0.22 a share in 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 in 2008.
The earnings per share variations shown above include the dilutive effect of a higher weighted average number of common shares outstanding in the three months and year ended December 31, 2009 periods. The weighted average number of common shares was 277 million shares and 275 million shares for the three months and year ended December 31, 2009, compared with 274 million shares and 273 million shares for the respective 2008 periods. The dilutive effect on earnings per share for year ended December 31, 2009 is $0.02. There is no dilutive effect on earnings per share for the three months ended December 31, 2009. These amounts per share do not reflect the offsetting benefits of avoided interest expense. 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 months and year ended December 31, 2009, as compared with the 2008 periods were as follows (expressed as a percentage of 2008 amounts): Fourth Quarter Variation Year Variation
2009 vs. 2008 2009 vs. 2008
Actual Adjusted Actual Adjusted
----------- ----------- ----------- -----------
Con Edison of New York
Electric (3.3) (1.7) (2.8) (1.7)
Firm - Gas (1.3) 7.3 4.0 2.4
Steam (13.3) (3.0) (4.0) (4.1)
O&R
Electric (6.8) (6.1) (5.6) (3.9)
Firm - Gas (4.0) 1.0 0.5 0.2
----------- ----------- ----------- -----------
Refer to the attachment to this press release for the consolidated income statements for 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, 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 $13 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. Attachment
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
(UNAUDITED)
For the Three Months For the Years
Ended December 31, Ended December 31,
2009 2008 2009 2008
--------- --------- --------- ---------
(Millions of Dollars/Except Share Data)
OPERATING REVENUES
Electric $ 1,958 $ 1,859 $ 8,320 $ 8,611
Gas 513 552 1,943 2,097
Steam 139 178 661 707
Non-utility 663 409 2,108 2,168
--------- --------- --------- ---------
TOTAL OPERATING REVENUES 3,273 2,998 13,032 13,583
--------- --------- --------- ---------
OPERATING EXPENSES
Purchased power 1,234 1,080 4,776 5,749
Fuel 99 159 503 663
Gas purchased for resale 240 300 963 1,172
Other operations and
maintenance 676 560 2,555 2,259
Depreciation and amortization 201 186 791 717
Taxes, other than income
taxes 400 332 1,545 1,364
--------- --------- --------- ---------
TOTAL OPERATING EXPENSES 2,850 2,617 11,133 11,924
--------- --------- --------- ---------
GAIN ON SALE OF GENERATION
PROJECTS - - - 261
--------- --------- --------- ---------
OPERATING INCOME 423 381 1,899 1,920
--------- --------- --------- ---------
OTHER INCOME (DEDUCTIONS)
Investment and other income 7 11 32 89
Allowance for equity funds
used during construction 5 2 14 8
Other deductions (3) (3) (15) (16)
--------- --------- --------- ---------
TOTAL OTHER INCOME (DEDUCTIONS) 9 10 31 81
--------- --------- --------- ---------
INTEREST EXPENSE
Interest on long-term debt 149 140 590 519
Other interest 9 11 30 33
Allowance for borrowed funds
used during construction (2) (1) (9) (8)
--------- --------- --------- ---------
NET INTEREST EXPENSE 156 150 611 544
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS BEFORE TAXES 276 241 1,319 1,457
INCOME TAX EXPENSE FROM
CONTINUING OPERATIONS 71 78 440 524
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS 205 163 879 933
--------- --------- --------- ---------
INCOME FROM DISCONTINUED
OPERATIONS
Gain on sale of generation
projects, net of income
taxes - - - 270
Income from discontinued
operations, net of income
taxes - - - 4
--------- --------- --------- ---------
TOTAL INCOME FROM DISCONTINUED
OPERATIONS - - - 274
--------- --------- --------- ---------
NET INCOME 205 163 879 1,207
Preferred stock dividend
requirements of
subsidiary (3) (3) (11) (11)
--------- --------- --------- ---------
NET INCOME FOR COMMON STOCK $ 202 $ 160 $ 868 $ 1,196
========= ========= ========= =========
EARNINGS PER COMMON SHARE -
BASIC
Continuing operations $ 0.73 $ 0.58 $ 3.16 $ 3.37
Discontinued operations - - - 1.01
--------- --------- --------- ---------
Net income for common stock $ 0.73 $ 0.58 $ 3.16 $ 4.38
========= ========= ========= =========
EARNINGS PER COMMON SHARE -
DILUTED
Continuing operations $ 0.73 $ 0.58 $ 3.14 $ 3.36
Discontinued operations - - - 1.01
--------- --------- --------- ---------
Net income for common stock $ 0.73 $ 0.58 $ 3.14 $ 4.37
========= ========= ========= =========
AVERAGE NUMBER OF SHARES
OUTSTANDING - BASIC (IN
MILLIONS) 276.9 273.6 275.2 272.9
========= ========= ========= =========
AVERAGE NUMBER OF SHARES
OUTSTANDING - DILUTED (IN
MILLIONS) 278.2 274.2 276.3 273.6
========= ========= ========= =========
Contact: SOURCE: Consolidated Edison, Inc. |
| Print Page | RSS Feeds | E-mail Alerts |