Press Release
| View printer-friendly version |
|
Consolidated Edison, Inc. Reports 2005 Earnings
|
|
For
Sales and Revenue Information, click here
To print press release, click here Increases Dividend for 32nd Consecutive Year NEW YORK, Jan. 26 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2005 earnings from continuing operations of $732 million or $3.00 a share, compared with $549 million or $2.33 a share in 2004. The 2004 results include the impact of non-cash after-tax charges totaling $80 million or $0.34 a share related to Con Edison of New York's electric, gas and steam rate plans. Including losses from discontinued operations of Con Edison Communications, net income for common stock for 2005 was $719 million or $2.95 a share compared with $537 million or $2.28 a share in 2004. For the fourth quarter of 2005, the company's earnings from continuing operations were $146 million or $0.59 a share compared with $52 million or $0.22 a share for the fourth quarter of 2004. Results for the fourth quarter of 2004 include $65 million or $0.27 a share of the non-cash charges noted above. Net income for common stock, including discontinued operations was $138 million or $0.56 a share compared with $51 million or $0.21 a share in the 2004 period. "Con Edison's utility operations performed very well under extreme weather conditions in 2005," said Kevin Burke, the company's President and Chief Executive Officer. "The investments we have made in our infrastructure over the past few years enabled us to reliably meet the energy needs of our customers during the summer of 2005. These investments enable New York's economy to continue to grow," he said. The company also declared a quarterly dividend of 57-1/2 cents a share on its common stock, payable March 15, 2006 to shareholders of record as of February 15, 2006, an annualized increase of 2 cents over the previous annual dividend of $2.28 a share. "Today's increase in the dividend, the 32nd consecutive annual increase, reflects our confidence in the company's future and is a tangible measure of our commitment to our shareholders," said Robert N. Hoglund, Senior Vice President and Chief Financial Officer. The company expects its earnings for 2006 to be in the range of $2.90 to $3.10 a share. The forecast reflects construction expenditures of $1.8 billion for the company's regulated utilities, and common stock issuance of between $250 million and $450 million in addition to stock issuances under the company's dividend reinvestment and employee stock plans. The following table shows the major factors affecting Con Edison's earnings per share from continuing operations for the year and fourth quarter of 2005 compared with the 2004 periods:
Year Quarter
2005 vs. 2004 2005 vs. 2004
Con Edison of New York:
Sales growth (estimated) $0.16 $0.05
Impact of weather in 2005 versus 2004
(estimated) 0.17 0.05
Electric rate plan (estimated) 0.72 0.19
Gas rate plan (estimated) 0.13 -
Steam rate plan (estimated) 0.20 0.04
Increased pension and other postretirement
benefit costs (0.19) (0.05)
Higher operations and maintenance expense (0.26) (0.12)
Higher depreciation and property tax (0.37) (0.11)
Allowance for funds used during
construction (0.11) (0.04)
2004 non-cash rate plan charges 0.34 0.27
Other (0.14) 0.03
Total Con Edison of New York 0.65 0.31
Orange and Rockland Utilities 0.01 (0.01)
Unregulated energy subsidiaries (including
parent company) 0.01 0.07
Total earnings per share variation from
continuing operations $0.67 $0.37
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, 2005. The weighted average number of common shares were 245 million shares and 244 million shares for the three months and year ended December 31, 2005, compared with 242 million shares and 236 million shares in the 2004 periods, respectively. The dilutive effect on earnings per share from continuing operations for the three months and year ended December 31, 2005 is $0.01 and $0.10, respectively. These amounts per share do not reflect the offsetting benefits of avoided interest expense. For Con Edison of New York, increased revenues provided by the electric rate plan that took effect in April 2005 and the gas and steam rate plans that took effect in October 2004 reflected higher expenses for pensions and other postretirement benefits, ongoing operations and maintenance, depreciation and property taxes, and the required return on capital invested in its energy infrastructure. Pension and other postretirement benefit costs increased due primarily to lower net pension credits from the amortization of previous years' net investment results. Higher depreciation and property taxes reflect continuing infrastructure investment programs and the commercial start-up of the East River Repowering Project. Under the electric rate plan, pension and other postretirement benefit costs and environmental remediation expenses in excess of the amounts reflected in rates were deferred as regulatory assets. Fifty percent ($47 million) of these regulatory assets were offset by estimated electric earnings in excess of the target (11.4% return on common equity) for the rate year ending March 31, 2006. At December 31, 2005, the company had accrued a $6 million reserve for the customers' fifty percent share of the remaining above-target earnings. The performance of the unregulated energy subsidiaries in the fourth quarter of 2005, compared with the 2004 period, reflects primarily decreases in forward prices of electricity that resulted in the reversal of previously recognized unrealized mark-to-market accounting losses. Amounts of electricity, gas and steam delivered by Con Edison of New York in 2005, after adjusting for variations in weather and billing days in the period, increased 2.4 percent, 2.4 percent and 1.8 percent, respectively, as compared with the 2004 period. Refer to the attachments to this press release for the condensed consolidated balance sheets at December 31, 2005 and 2004 and the consolidated income statements for 2005 and 2004. Additional information related to utility sales and revenues is available 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 $25 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; Con Edison Solutions, a retail energy supply and 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.
CONSOLIDATED EDISON, INC.
CONSOLIDATED BALANCE SHEET (Condensed)
(UNAUDITED)
December 31, 2005 December 31, 2004
ASSETS (Millions of Dollars)
PLANT, AT ORIGINAL COST
Utility plant - net $16,210 $15,168
Non-utility plant - net 849 873
Non-utility property held for sale 52 47
NET PLANT 17,111 16,088
CURRENT ASSETS
Cash and temporary cash investments 81 26
Accounts receivable - customers, less
allowance for uncollectible accounts 1,025 741
Other receivables, less allowance for
uncollectible accounts 350 198
Inventories 425 325
Prepayments 434 93
Fair value of derivative assets 331 66
Current assets held for sale 8 5
Other current assets 278 277
TOTAL CURRENT ASSETS 2,932 1,731
INVESTMENTS 265 257
DEFERRED CHARGES, REGULATORY ASSETS
AND NONCURRENT ASSETS
Goodwill 406 406
Intangible assets - net 90 100
Prepaid pension costs 1,474 1,442
Regulatory assets 2,247 2,258
Other deferred charges and noncurrent
assets 324 278
TOTAL DEFERRED CHARGES, REGULATORY
ASSETS AND NONCURRENT ASSETS 4,541 4,484
TOTAL ASSETS $24,849 $22,560
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common shareholders' equity $7,310 $7,054
Preferred stock of subsidiary 213 213
Long-term debt 7,398 6,561
TOTAL CAPITALIZATION 14,921 13,828
NONCURRENT LIABILITIES
Provision for injuries and damages 167 180
Pension and retiree benefits 223 207
Superfund and other environmental costs 238 198
Noncurrent liabilities held for sale 9 5
Other noncurrent liabilities
including minority interest 225 134
TOTAL NONCURRENT LIABILITIES 862 724
CURRENT LIABILITIES
Long-term debt due within one year 22 469
Notes payable 755 156
Accounts payable 1,236 920
Customer deposits 229 232
Fair value of derivative liabilities 133 24
Deferred derivative gains 224 23
Current liabilities held for sale 12 11
Other current liabilities 622 410
TOTAL CURRENT LIABILITIES 3,233 2,245
DEFERRED CREDITS AND REGULATORY
LIABILITIES
Deferred income taxes and investment
tax credits 3,734 3,726
Regulatory liabilities and other
deferred credits 2,099 2,037
TOTAL DEFERRED CREDITS AND REGULATORY
LIABILITIES 5,833 5,763
TOTAL CAPITALIZATION AND LIABILITIES $24,849 $22,560
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
(UNAUDITED)
For the Three Months For the Years
Ended December 31, Ended December 31,
2005 2004 2005 2004
(Millions of Dollars/Except Share Data)
OPERATING REVENUES
Electric $1,905 $1,414 $7,588 $6,652
Gas 544 396 1,858 1,507
Steam 175 134 649 550
Non-utility 483 237 1,595 1,049
TOTAL OPERATING REVENUES 3,107 2,181 11,690 9,758
OPERATING EXPENSES
Purchased power 1,297 925 4,743 3,960
Fuel 263 130 816 597
Gas purchased for resale 368 209 1,155 852
Other operations and
maintenance 446 374 1,685 1,495
Depreciation and
amortization 149 139 584 551
Taxes, other than income
taxes 311 265 1,185 1,080
Income taxes 42 (15) 364 292
TOTAL OPERATING EXPENSES 2,876 2,027 10,532 8,827
OPERATING INCOME 231 154 1,158 931
OTHER INCOME (DEDUCTIONS)
Investment and other income 28 3 33 42
Allowance for equity funds
used during construction 1 7 9 25
Preferred stock dividend
requirements of subsidiary (3) (3) (11) (11)
Other deductions (3) (4) (16) (14)
Income taxes 13 7 23 20
TOTAL OTHER INCOME
(DEDUCTIONS) 36 10 38 62
INTEREST EXPENSE
Interest on long-term debt 114 106 444 426
Other interest 8 11 27 36
Allowance for borrowed funds
used during construction (1) (5) (7) (18)
NET INTEREST EXPENSE 121 112 464 444
INCOME FROM CONTINUING
OPERATIONS 146 52 732 549
LOSS FROM DISCONTINUED
OPERATIONS (NET OF INCOME
TAXES OF $1, $1, $4, and $8) (8) (1) (13) (12)
NET INCOME $138 $51 $719 $537
EARNINGS PER COMMON SHARE -
BASIC
Continuing operations $0.59 $0.22 $3.00 $2.33
Discontinued operations (0.03) (0.01) (0.05) (0.05)
Net income $0.56 $0.21 $2.95 $2.28
EARNINGS PER COMMON SHARE -
DILUTED
Continuing operations $0.59 $0.22 $2.99 $2.32
Discontinued operations (0.03) (0.01) (0.05) (0.05)
Net income $0.56 $0.21 $2.94 $2.27
AVERAGE NUMBER OF SHARES
OUTSTANDING - BASIC
(IN MILLIONS) 245.0 242.2 243.9 235.8
AVERAGE NUMBER OF SHARES
OUTSTANDING - DILUTED
(IN MILLIONS) 245.9 242.9 244.7 236.4
SOURCE Consolidated Edison, Inc. /CONTACT: Joseph Petta, +1-212-460-4111, for Consolidated Edison, Inc./ /Web site: http://www.conedison.com / (ED) |
| Print Page | RSS Feeds | E-mail Alerts |