SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: April 17, 2003
Commission Exact name of registrant as specified in its charter State of I.R.S. Employer
File Number and principal office address and telephone number Incorporation I.D. Number
1-14514 Consolidated Edison, Inc. New York 13-3965100
4 Irving Place, New York, New York 10003
(212) 460-4600
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INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit 99 Con Edison press release, dated April 17, 2003, reporting,
among other things, its unaudited net income for common stock
for the three months ended March 31, 2003.
ITEM 9. REGULATION FD DISCLOSURE (INFORMATION IS BEING PROVIDED
UNDER ITEM 12)
The material attached hereto as Exhibit 99 is hereby incorporated by reference
in this Item 9 and hereby furnished under Item 12 of Form 8-K - "Results of
Operations and Financial Condition."
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CONSOLIDATED EDISON, INC.
By: /s/ Edward J. Rasmussen
Edward J. Rasmussen
Vice President and Controller
DATE: April 17, 2003
[CON EDISON LOGO]
FOR IMMEDIATE RELEASE
Con Edison, Inc. Reports First Quarter Earnings
Company Reaffirms 2003 Earnings Projection
Consolidated Edison, Inc. today reported net income for common stock for the
first quarter of 2003 of $154 million or 72 cents a share, compared with
earnings of $146 million or 68 cents a share, for the first quarter of 2002. Net
income for the 2002 period includes a one-time goodwill impairment charge of $20
million after-tax, related to certain unregulated generating assets. Excluding
this non-cash charge, net income for the first quarter of 2002 was $166 million
or 78 cents a share. The company also declared a quarterly dividend of 56 cents
a share on its common stock payable June 15, 2003 to stockholders of record as
of May 14, 2003.
"Con Edison's performance for the first quarter represents a solid start for the
year," said Eugene R. McGrath, Chairman and Chief Executive Officer. "In these
uncertain times, Con Edison's steady focus on operational excellence and
financial strength continues to build value for our customers and our
shareholders."
The company's net income for common stock for the 12 months ended March 31, 2003
was $654 million or $3.07 a share, compared with $650 million or $3.06 a share,
for the 12 months ended March 31, 2002. Absent the cumulative effect of changes
in accounting principles in 2002, earnings for the 12 months ended March 31,
2003 and March 31, 2002 would have been $3.08 and $3.16 a share, respectively.
The company's earnings for the first quarter of 2003 were positively affected by
increased sales related to the cold winter weather, as compared with the mild
winter weather in the first quarter of 2002. Offsetting the impact of higher
sales was a reduction in net pension and other post-retirement benefits credit.
Volumes of electricity, gas and steam delivered by Con Edison of New York, after
adjusting for variations in weather and billing days in the period, increased
3.1 percent, 3.3 percent and 1.2 percent, respectively, for the first three
months of 2003 compared with the prior year. The company's 10 highest winter
electric peak loads all occurred this winter, and a new record winter peak of
8,514 MW was set in January 2003.
The following table represents an analysis of the major factors affecting
earnings per share for the 1st Quarter of 2003 compared with 2002:
Earnings
Per Share
1st Quarter 2003 Compared With 2002 ($)
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Con Edison of New York:
Impact of cold winter weather in 2003 on net revenues versus
mild winter weather in 2002 (estimated) 0.13
Sales growth from factors other than weather (estimated) 0.06
Reduced net credit for pensions & other post-retirement benefits (0.08)
Regulatory accounting/amortizations (0.09)
Higher depreciation and property tax expense (0.03)
Amortization of divestiture gain in 2002 (0.06)
Orange & Rockland Utilities 0.02
Cumulative effect of change in accounting principle for goodwill
impairment in 2002 0.10
Other (0.01)
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Total $0.04
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For the full year 2003, the Company confirms its previous forecast of earnings
in the range of $2.90 to $3.05 per share.
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. is one of the nation's largest investor-owned energy
companies, with $9 billion in annual revenues and approximately $19 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, an infrastructure development company; and Con
Edison Communications, a telecommunications infrastructure company and service
provider.
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(Unaudited)
2003 2002
---- ----
(Millions of Dollars)
Operating revenues
Electric $1,493 $1,301
Gas 620 474
Steam 238 141
Non-utility 252 120
Total operating revenues ------------ ------------
2,603 2,036
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Operating expenses
Purchased power 895 650
Fuel 185 65
Gas purchased for resale 365 230
Other operations 296 237
Maintenance 93 100
Depreciation and amortization 129 120
Taxes, other than income tax 284 267
Income tax 99 110
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Total operating expenses 2,346 1,779
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Operating income 257 257
Other income (deductions)
Investment income - 1
Allowance for equity funds used during construction 2 4
Other income 5 7
Other income deductions (3) (8)
Income tax 2 13
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Total other income (deductions) 6 17
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Income before interest charges 263 274
Interest on long-term debt 100 94
Other interest 8 11
Allowance for borrowed funds used during construction (2) -
------------ ------------
Net interest charges 106 105
------------ ------------
Preferred stock dividend requirements 3 3
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Net income before cumulative effect of changes
in accounting principles 154 166
Cumulative effect of changes in accounting
principles (net of income tax of $14 million) - 20
------------ ------------
Net income for common stock $154 $146
============ ============
Earnings per common share - Basic
Before cumulative effect of changes in
accounting principles $0.72 $0.78
Cumulative effect of changes in
accounting principles $ - $0.10
After cumulative effect of changes in
accounting principles $0.72 $0.68
Earnings per common share - Diluted
Before cumulative effect of changes in
accounting principles $0.72 $0.78
Cumulative effect of changes in
accounting principles $ - $0.10
After cumulative effect of changes in
accounting principles $0.72 $0.68
Average number of shares outstanding
- Basic (in Millions) 214.2 212.3
Average number of shares outstanding
- Diluted (in Millions) 215.1 213.3
Consolidated Edison, Inc. utility sales
Electric (thousands of kilowatthours)
Total energy delivered in service areas 14,493,912 13,528,980
Off-system and ESCO sales 96,285 18,340
Gas (dekatherms)
Firm sales and transportation 59,382,894 46,212,930
Off-system sales 258,625 6,303,625
Steam (thousands of pounds) 10,672,089 7,935,809
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
FOR THE TWELVE MONTHS ENDED MARCH 31, 2003 AND 2002
(Unaudited)
2003 2002
---- ----
(Millions of Dollars)
Operating revenues
Electric $ 6,443 $ 6,480
Gas 1,350 1,238
Steam 501 387
Non-utility 754 503
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Total operating revenues 9,048 8,608
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Operating expenses
Purchased power 3,425 3,080
Fuel 409 274
Gas purchased for resale 732 651
Other operations 1,021 1,036
Maintenance 381 402
Depreciation and amortization 503 511
Taxes, other than income tax 1,131 1,099
Income tax 387 456
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Total operating expenses 7,989 7,509
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Operating income 1,059 1,099
Other income (deductions)
Investment income 2 7
Allowance for equity funds used during construction 8 5
Other income 47 1
Other income deductions (15) (32)
Income tax 9 31
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Total other income (deductions) 51 12
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Income before interest charges 1,110 1,111
Interest on long-term debt 391 392
Other interest 58 42
Allowance for borrowed funds used during construction (7) (6)
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Net interest charges 442 428
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Preferred stock dividend requirements 12 13
Net Income before cumulative effect of changes in ----------- ------------
accounting principles 656 670
Cumulative effect of changes in accounting
principles (net of income taxes of
$1 million and $14 million, respectively) 2 20
----------- ------------
Net income for common stock 654 650
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Earnings per common share - Basic
Before cumulative effect of changes in
accounting principles $3.08 $3.16
Cumulative effect of changes in
accounting principles $0.01 $0.10
After cumulative effect of changes in
accounting principles $3.07 $3.06
Earnings per common share - Diluted
Before cumulative effect of changes in
accounting principles $3.07 $3.15
Cumulative effect of changes in
accounting principles $0.01 $0.10
After cumulative effect of changes in
accounting principles $3.06 $3.05
Average number of shares outstanding
- Basic (in Millions) 213.4 212.2
Average number of shares outstanding
- Diluted (in Millions) 214.5 213.1
Consolidated Edison, Inc. utility sales
Electric (thousands of kilowatthours)
Total energy delivered in service areas 60,421,819 57,794,612
Off-system and ESCO sales 95,502 122,357
Gas (dekatherms)
Firm sales and transportation 125,576,230 106,584,149
Off-system sales 5,193,853 12,471,413
Steam (thousands of pounds) 27,255,756 22,780,807