Con Edison Reports 2013 First Quarter Earnings

Con Edison Reports 2013 First Quarter Earnings 
NEW YORK, NY -- (Marketwired) -- 05/02/13 --  Consolidated Edison,
Inc. (Con Edison) (NYSE: ED) today reported first quarter earnings of
$192 million or $0.66 a share compared with $277 million or $0.95 a
share in 2012. Earnings from ongoing operations, which exclude a
charge relating to its lease in/lease out (LILO) transactions and the
net mark-to-market effects of the competitive energy businesses
(CEBs), were $316 million or $1.08 a share compared with $295 million
or $1.01 a share in 2012.  
"Con Edison's steady performance and enduring financial stability
permit the immediate initiatives underway to fortify and harden our
system before the next hurricane season," said Con Edison's Chairman,
President and Chief Executive Officer Kevin Burke. "Appropriate
longer-range protective measures also are moving ahead, as we consult
with scientists, engineers, climate-change experts and government
leaders. The reliability, safety, and security of our energy systems
on behalf of our customers remain the highest priorities. We will
also continue with projects to enhance energy supplies, energy
efficiency, and improved local air quality through aggressive
implementation of oil-to-gas conversions."  
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 ended March 31, 2013 and 2012. 


 
                                                                            
                                                                            
                                                                 Net Income 
                                                                 for Common 
                                                    Earnings       Stock    
                                                    per Share    (Millions  
                                                                of Dollars) 
                                                  ------------  ----------- 
                                                   2013  2012    2013  2012 
------------------------------------------------- ----- ------  ----- ----- 
                                         
                                   
Reported earnings per share and net income for                              
 common stock - GAAP basis (basic)                $0.66 $ 0.95  $ 192 $ 277 
Add: LILO transactions (a)                         0.51      -    150     - 
Less: Net mark-to-market effects of the CEBs (b)   0.09  (0.06)    26   (18)
------------------------------------------------- ----- ------  ----- ----- 
Ongoing operations                                $1.08 $ 1.01  $ 316 $ 295 
------------------------------------------------- ----- ------  ----- ----- 
                                                                            
a.In January 2013, the United States Court of Appeals for the Federal       
  Circuit reversed an October 2009 trial court ruling and disallowed        
  company-claimed tax deductions relating to a 1997 transaction in which    
  Consolidated Edison Development, Inc. (CED) leased property from the owner
  and then immediately subleased it back to the owner (a "LILO"             
  transaction). As a result, the company recorded a charge of $150 million  
  (after taxes of $102 million) in the first quarter of 2013 to reflect the 
  interest on the disallowed income tax deductions and the recalculation of 
  the accounting effect of the 1997 and 1999 LILO transactions.             
b.After taxes of $19 million and $(13) million for the three months ended   
  March 31, 2013 and 2012, respectively.                                    

 
For the year 2013, the company confirms its previous forecast of
earnings per share from ongoing operations in the range of $3.65 to
$3.85 a share. Earnings per share from ongoing operations exclude a
$0.51 a share charge relating to the LILO transactions and the net
mark-to-market effects of the CEBs. 
The results of operations for the three months ended March 31, 2013,
as compared with the 2012 period, reflect changes in the rate plans
of Con Edison's utility subsidiaries and the effects of the normal
winter weather compared to the milder winter in 2012 on steam
revenues. The rate plans provide for additional revenues to cover
expected increases in certain operations and maintenance expenses,
and depreciation and property taxes. The results of operations
include the operating results of the CEBs.  
Operations and maintenance expenses were higher primarily due to
pension costs, surcharges for assessments and fees that are collected
in revenues from customers and higher operating costs attributable to
winter storm related emergency response. Depreciation and property
taxes were higher in the 2013 period, reflecting primarily the impact
from higher utility plant balances.  
The following table presents the estimated effect on earnings per
share and net income for common stock for the 2013 period compared
with the 2012 period, resulting from these and other major factors: 


 
                                                                            
                                                                            
                                                                 Net Income 
                                                                 for Common 
                                                                   Stock    
                                                     Earnings    Variation  
                                                     per Share   (Millions  
                                                     Variation  of Dollars) 
--------------------------------------------------- ----------  ----------- 
Consolidated Edison Company of New York, Inc.                               
 (CECONY) (a)                                                               
  Rate plans, primarily to recover increases in                             
   certain costs                                    $     0.21  $        61 
  Weather impact on steam revenues                        0.07           22 
  Operations and maintenance expense                     (0.20)         (57)
  Depreciation and property taxes                        (0.06)         (19)
  Other                                                      -           (3)
                                                    ----------  ----------- 
Total CECONY                                              0.02            4 
Orange and Rockland Utilities (O&R)                       0.03           10 
CEBs (b)                                                 (0.34)        (100)
Other, including parent company expenses                     -            1 
--------------------------------------------------- ----------  ----------- 
Total variation                                     $    (0.29) $       (85)
--------------------------------------------------- ----------  ----------- 
                                                                            
a.Under the revenue decoupling mechanisms in CECONY's electric and gas rate 
  plans 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. Under CECONY's rate plans,       
  pension and other postretirement costs and certain other costs are        
  reconciled to amounts reflected in rates for such costs.                  
b.These variations include, in the first quarter of 2013, an after-tax      
  charge of $150 million or $0.51 a share relating to the LILO transactions 
  and a tax benefit of $15 million or $0.05 a share resulting from the      
  acceptance by the Internal Revenue Service of the company's claim for     
  manufacturing tax deductions. The variations also include after-tax net   
  mark-to-market gains of $26 million or $0.09 a share in the first quarter 
  of 2013 and after-tax net mark-to-market losses of $18 million or $0.06 a 
  share in the first quarter of 2012.                                       

 
The changes in the energy delivered by the company's utility
subsidiaries, both for actual amounts and as adjusted primarily for
variations in weather and billing days, for the period ended March
31, 2013, as compared with the 2012 period were as follows (expressed
as a percentage of 2012 amounts): 


 
                                                                             
                                                                             
                                                           2013 vs. 2012     
                                                         Actual    Adjusted  
----------------------------------------------------- ----------- ---------- 
CECONY                                                                       
  Electric                                                    1.3       (0.8)
  Firm - Gas                                                 17.8        1.2 
  Steam                                                      20.0       (3.1)
O&R                                                                          
  Electric                                                      -       (2.1)
  Firm - Gas                                                 23.5        1.1 
----------------------------------------------------- ----------- ---------- 

 
Refer to the company's First Quarter Form 10-Q, which is being filed
with the Securities and Exchange Commission, for the consolidated
balance sheets at March 31, 2013 and December 31, 2012 and the
consolidated income statements for the three months ended March 31,
2013 and 2012. 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 $12 billion in
annual revenues and $42 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: 
Robert McGee
212-460-4111 
 
 
Press spacebar to pause and continue. Press esc to stop.