SYS-CON MEDIA Authors: Elizabeth White, Pat Romanski, Carmen Gonzalez, Liz McMillan, Kevin Jackson

News Feed Item

Con Edison Reports 2014 First Quarter Earnings

NEW YORK, NY -- (Marketwired) -- 05/08/14 -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2014 first quarter net income for common stock of $361 million or $1.23 a share compared with $192 million or $0.66 a share in 2013. Earnings from ongoing operations, which exclude the effects of its lease in/lease out (LILO) transactions and the net mark-to-market effects of the competitive energy businesses (CEBs), were $343 million or $1.17 a share in 2014 compared with $316 million or $1.08 a share in 2013.

"First quarter financial results were in line with expectations, and our new rate plans provide stability for customers and certainty for shareholders," said President and CEO John McAvoy. "Our employees performed admirably during a colder-than-normal winter that adversely affected customers' energy supply costs. We continue to implement storm hardening improvements. We also are continuing to help residents and businesses affected by the tragic gas explosion in East Harlem, while working with the National Transportation Safety Board to determine the cause."

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, 2014 and 2013.


                                                             Net Income for
                                                              Common Stock
                                               Earnings       (Millions of
                                               per Share        Dollars)
                                           ---------------- ----------------
                                             2014     2013    2014     2013
                                           -------  ------- -------  -------
Reported earnings per share and net income
 for common stock - GAAP basis (basic)
                                           $  1.23  $  0.66 $   361  $   192
Add: LILO transactions (a)                   (0.02)    0.51      (7)     150
Less: Net mark-to-market effects of the
 CEBs (b)                                     0.04     0.09      11       26
                                           -------  ------- -------  -------
Earnings from ongoing operations - non-
 GAAP                                      $  1.17  $  1.08 $   343  $   316
                                           -------  ------- -------  -------

(a)  In January 2013, a court disallowed tax losses claimed by Con Edison
     relating to Con Edison Development's LILO transactions. For the three
     months ended March 31, 2014 and 2013, respectively, the impact of the
     LILO transactions on earnings was a $7 million (after taxes of $6
     million) benefit due primarily to lower than previously estimated
     interest on the related tax liability and a $150 million (after taxes
     of $102 million) charge reflecting the recalculation of the accounting
     effect of the LILO transactions and interest on the tax liability.
(b)  After taxes of $9 million and $19 million for the three months ended
     March 31, 2014 and 2013, respectively.


For the year 2014, 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 $0.02 a share benefit 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, 2014, as compared to the 2013 period, reflect primarily changes in the rate plans of Con Edison's utility subsidiaries, the weather impact on its steam delivery service, decreases in certain operations and maintenance expenses and increases in depreciation and property taxes, reflecting primarily the impact of higher utility plant balances. The results of operations also include the impact of the LILO transactions and the net mark-to-market effects of the CEBs.

Operations and maintenance expenses for CECONY primarily reflect a decrease in pension costs and lower surcharges for assessments and fees that are collected in revenues, offset in part by higher operating costs attributable to emergency response to weather related events.

The following table presents the estimated effect on earnings per share and net income for common stock for the 2014 period compared to the 2013 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                                       $      0.15  $        43
  Weather impact on steam revenues                        0.04           13
  Operations and maintenance expense                      0.03           10
  Depreciation and property taxes                        (0.05)         (15)
  Other                                                   0.02            6
                                                   -----------  -----------
Total CECONY                                              0.19           57
Orange and Rockland Utilities (O&R) (a)                  (0.03)          (9)
CEBs (b)                                                  0.41          121
Other, including parent company expenses                     -            -
                                                   -----------  -----------
Total variation                                    $      0.57  $       169
                                                   -----------  -----------

(a)  Under the revenue decoupling mechanisms in CECONY's and O&R's New York
     electric and gas rate plans and the weather-normalization clause
     applicable to their gas businesses, revenues are generally not affected
     by changes in delivery volumes from levels assumed when rates were
     approved. Under the 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 an after-tax benefit in the 2014 period of $7
     million or $0.02 a share compared to an after-tax charge in the 2013
     period of $150 million or $0.51 a share relating to the LILO
     transactions. In addition, the variations include a tax benefit in the
     2013 period 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 $11 million or $0.04 a share in the 2014 period
     and after-tax net mark-to-market gains of $26 million or $0.09 a share
     in the 2013 period.


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, 2014 and December 31, 2013 and the consolidated income statements for the three months ended March 31, 2014 and 2013. 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 also is 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 $41 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 services company; and Consolidated Edison Development, Inc., a company that participates in infrastructure projects.

Contact:
Robert McGee
212-460-4111

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile ...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
Companies today struggle to manage the types and volume of data their customers and employees generate and use every day. With billions of requests daily, operational consistency can be elusive. In his session at Big Data Expo, Dave McCrory, CTO at Basho Technologies, will explore how a distributed systems solution, such as NoSQL, can give organizations the consistency and availability necessary to succeed with on-demand data, offering high availability at massive scale.
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science f...
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness,...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
Vormetric on Wednesday announced the results of its 2015 Insider Threat Report (ITR), conducted online on their behalf by Harris Poll and in conjunction with analyst firm Ovum in fall 2014 among 818 IT decision makers in various countries, including 408 in the United States. The report details striking findings around how U.S. and international enterprises perceive security threats, the types of employees considered most dangerous, environments at the greatest risk for data loss and the steps or...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP ...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Storage administrators find themselves walking a line between meeting employees’ demands to use public cloud storage services, and their organizations’ need to store information on-premises for security, performance, cost and compliance reasons. However, as file sharing protocols like CIFS and NFS continue to lose their relevance, simply relying only on a NAS-based environment creates inefficiencies that hurt productivity and the bottom line. IT wants to implement cloud storage it can purchase a...
Cloud Technology Partners on Wednesday announced it has been recognized by the Modern Infrastructure Impact Awards as one of the Best Amazon Web Services (AWS) Consulting Partners. Selected by the editors of TechTarget's SearchDataCenter.com, and by votes from customers and strategic channel partners, the companies acknowledged by the Modern Infrastructure Impact Awards represent the top providers of cloud consulting services for AWS including application migration, application development, inf...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.