Welcome!

.NET Authors: Pat Romanski, Srinivasan Sundara Rajan, Tad Anderson, Adine Deford, Daniel Keeney

News Feed Item

Con Edison Reports 2012 Earnings

NEW YORK, NY -- (Marketwire) -- 01/31/13 -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2012 net income for common stock of $1,138 million or $3.88 a share compared with $1,051 million or $3.59 a share in 2011. Earnings from ongoing operations, which exclude the net mark-to-market effects of the competitive energy businesses (CEBs), were $1,098 million or $3.75 a share in 2012 compared with $1,064 million or $3.64 a share in 2011.

For the fourth quarter of 2012, net income for common stock was $207 million or $0.71 a share compared with $190 million or $0.65 a share in the fourth quarter of 2011. Earnings from ongoing operations for the fourth quarter of 2012, which exclude the net mark-to-market effects of the CEBs, were $203 million or $0.69 a share compared with $219 million or $0.74 a share in the fourth quarter of 2011.

"Our regulated utilities and competitive energy businesses continued to perform well in 2012," said Kevin Burke, Con Edison's chairman, president, and CEO. "We faced an unprecedented challenge with Superstorm Sandy, and our own workers were joined by utility workers from across the country and Canada to get over a million Con Edison and Orange and Rockland customers back online. We are grateful to all of our employees, mutual aid workers and first responders for their extraordinary efforts. We look forward to working with leaders of New York State, New York City, other local governments and community organizations to implement new investments and strategies in the wake of this historic storm."

Con Edison also announced that it is increasing its dividend for the 39th consecutive year. The company declared a quarterly dividend of 61 1/2 cents a share on its common stock, payable March 15, 2013 to shareholders of record as of February 13, 2013, an annualized increase of 4 cents over the previous annualized dividend of $2.42 a share. "The dividend reflects our continued emphasis on providing a return to our investors, who play an important role in raising capital to make infrastructure investments at the lowest cost to 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, 2012 and 2011.



                        Three Months Ended               Year Ended
                     Earnings      Net Income     Earnings      Net Income
                        per       (Millions of       per       (Millions of
                       Share        Dollars)        Share        Dollars)
                   ------------  -------------  ------------  -------------
                    2012  2011    2012   2011    2012  2011    2012   2011
                   ----- ------  ------ ------  ----- ------  ------ ------
Reported earnings
 per share and net
 income for common
 stock - GAAP
 basis (basic)     $0.71 $ 0.65  $  207 $  190  $3.88 $ 3.59  $1,138 $1,051
Less: Net mark-to-
 market effects of
 the CEBs           0.02  (0.09)      4    (29)  0.13  (0.05)     40    (13)
                   ----- ------  ------ ------  ----- ------  ------ ------
Ongoing operations $0.69 $ 0.74  $  203 $  219  $3.75 $ 3.64  $1,098 $1,064
                   ===== ======  ====== ======  ===== ======  ====== ======


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. leased property from the owner and then immediately subleased it back to the owner (a "lease in/lease out" transaction). As a result, the company expects to record an estimated charge of between $150 million and $170 million (after-tax) in the first quarter of 2013 to reflect the interest payment on disallowed federal income tax deductions and the recalculation of the accounting effect of the 1997 transaction and its 1999 lease in/lease out transaction. In addition, to defray interest charges, the company has made deposits of $447 million with federal and state tax agencies relating primarily to the potential tax liability from these transactions in past tax years and interest thereon. The transactions did not impact earnings in either 2012 or 2011.

The company expects its earnings from ongoing operations for the year 2013 to be in the range of $3.65 to $3.85 per share. This forecast reflects, among other things, estimated costs relating to Superstorm Sandy that the utility subsidiaries expect to incur in 2013 to restore their energy systems to normal operating condition and that new rate plans are not expected to become effective until 2014. The forecast excludes an estimated $0.50 to $0.60 per share charge relating to the disallowance of tax deductions associated with its lease in/lease out transactions discussed above and the net mark-to-market effects of the CEBs.

The forecast also reflects capital investments of $2,425 million, substantially all of which will be spent at the company's regulated utilities. The company expects to meet its 2013 external financing requirements, including for maturing securities, through the issuance of between $1,000 million and $1,500 million of long-term debt. In addition, the company is evaluating long-term debt financing for its solar projects. The company does not expect to need to issue additional common equity in 2013.

The results of operations for the three months and year ended December 31, 2012, as compared with the 2011 periods, reflect changes in the rate plans of Con Edison's utility subsidiaries and the effect of the milder winter weather on steam revenues. The rate plans provide for additional revenues to cover expected increases in certain operations and maintenance expenses and depreciation. The results of operations include the operating results of the CEBs, including net mark-to-market effects.

Operations and maintenance expenses were higher in the 2012 periods due primarily to pension costs and the support and maintenance of company underground facilities to accommodate municipal projects. Depreciation and property taxes were higher in the 2012 periods, reflecting primarily higher utility plant balances.

Con Edison's utility subsidiaries, Consolidated Edison Company of New York, Inc. (CECONY) and Orange and Rockland Utilities, Inc. (O&R), in the 2012 fourth quarter, incurred response and restoration costs for Superstorm Sandy of $363 million and $98 million, respectively (including capital expenditures of $104 million and $14 million, respectively). Most of the costs that were not capitalized were deferred as a regulatory asset under the utility subsidiaries' electric rate plans.

The following table presents the estimated effect on earnings per share and net income for common stock for the 2012 period compared with the 2011 period, resulting from these and other major factors:



                               Three Months Ended      Twelve Months Ended
                                    Variation               Variation
                                  2012 vs. 2011           2012 vs. 2011
                                         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)
                             ----------  ----------  ----------  ----------
CECONY (a)
  Rate plans, primarily to
   recover increases in
   certain costs             $     0.23  $       67  $     0.90  $      263
  Weather impact on steam
   revenues                        0.03           8       (0.07)        (20)
  Operations and maintenance
   expense                        (0.14)        (41)      (0.47)       (137)
  Depreciation and property
   taxes                          (0.16)        (46)      (0.19)        (57)
  Other                            0.01           3       (0.05)        (13)
                             ----------  ----------  ----------  ----------
Total CECONY                      (0.03)         (9)       0.12          36

O&R                                   -           -        0.04          11

CEBs (b)                           0.08          25        0.15          44

Other, including parent
 company expenses                  0.01           1       (0.02)         (4)
                             ----------  ----------  ----------  ----------
Total variation              $     0.06  $       17  $     0.29  $       87
                             ==========  ==========  ==========  ==========

(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) For the three months ended December 31, the variations reflect after-tax
    net mark-to-market gains of $4 million or $0.02 a share in 2012 and
    after-tax net mark-to-market losses of $29 million or $0.09 a share in
    2011. For the year ended December 31, the variations reflect after-tax
    net mark-to-market gains of $40 million or $0.13 a share in 2012 and
    after-tax net mark-to-market losses of $13 million or $0.05 a share in
    2011.

The changes in the energy delivered by the company's utility subsidiaries, both for actual amounts and as adjusted for variations in weather and billing days, for the three months and year ended December 31, 2012, as compared with the 2011 period were as follows (expressed as a percentage of 2011 amounts):



                                 Fourth Quarter
                                    Variation            Year Variation
                                  2012 vs. 2011           2012 vs. 2011
                               Actual     Adjusted     Actual     Adjusted
                             ----------  ----------  ----------  ----------
CECONY
  Electric                         (1.9)       (0.7)       (1.1)        0.2
  Firm - Gas                       13.1         0.4        (7.2)        0.6
  Steam                             5.3        (3.8)      (11.6)       (1.5)
O&R
  Electric                         (2.5)       (2.4)       (1.0)        0.8
  Firm - Gas                       15.6         3.3        (6.1)        1.4
                             ----------  ----------  ----------  ----------


Refer to the attachment to this press release for the consolidated income statements for 2012 and 2011. Additional information related to utility sales and revenues is available at www.conedison.com (select "Shareholder Services" and then select "Sales & Revenue Reports" under "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.

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 $40 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,
                                    2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------
                                   (Millions of Dollars/Except Share Data)
OPERATING REVENUES
  Electric                       $   2,003  $   1,983  $   8,765  $   8,866
  Gas                                  458        426      1,618      1,735
  Steam                                181        176        596        683
  Non-utility                          259        330      1,209      1,602
                                 ---------  ---------  ---------  ---------
TOTAL OPERATING REVENUES             2,901      2,915     12,188     12,886
                                 ---------  ---------  ---------  ---------
OPERATING EXPENSES
  Purchased power                      676        843      3,116      3,967
  Fuel                                  97         95        310        412
  Gas purchased for resale             147        131        461        622
  Other operations and
   maintenance                         817        756      3,182      2,969
  Depreciation and amortization        246        225        955        884
  Taxes, other than income taxes       465        406      1,825      1,793
                                 ---------  ---------  ---------  ---------
TOTAL OPERATING EXPENSES             2,448      2,456      9,849     10,647
                                 ---------  ---------  ---------  ---------
OPERATING INCOME                       453        459      2,339      2,239
                                 ---------  ---------  ---------  ---------
OTHER INCOME (DEDUCTIONS)
  Investment and other income            4          4         18         23
  Allowance for equity funds
   used during construction              1          4          4         11
  Other deductions                      (3)        (4)       (16)       (17)
                                 ---------  ---------  ---------  ---------
TOTAL OTHER INCOME (DEDUCTIONS)          2          4          6         17
                                 ---------  ---------  ---------  ---------
INTEREST EXPENSE
  Interest on long-term debt           145        145        586        582
  Other interest                         4          3         20         18
  Allowance for borrowed funds
   used during construction             (1)        (2)        (2)        (6)
                                 ---------  ---------  ---------  ---------
NET INTEREST EXPENSE                   148        146        604        594
                                 ---------  ---------  ---------  ---------
INCOME BEFORE INCOME TAX EXPENSE       307        317      1,741      1,662
INCOME TAX EXPENSE                     100        124        600        600
                                 ---------  ---------  ---------  ---------
NET INCOME                             207        193      1,141      1,062
  Preferred stock dividend
   requirements of subsidiary            -         (3)        (3)       (11)
                                 ---------  ---------  ---------  ---------
NET INCOME FOR COMMON STOCK      $     207  $     190  $   1,138  $   1,051
                                 =========  =========  =========  =========
Net income for common stock per
 common share - basic            $    0.71  $    0.65  $    3.88  $    3.59
                                 =========  =========  =========  =========
Net income for common stock per
 common share - diluted          $    0.70  $    0.65  $    3.86  $    3.57
                                 =========  =========  =========  =========
AVERAGE NUMBER OF SHARES
 OUTSTANDING - BASIC (IN
 MILLIONS)                           292.9      292.9      292.9      292.6
                                 =========  =========  =========  =========
AVERAGE NUMBER OF SHARES
 OUTSTANDING - DILUTED (IN
 MILLIONS)                           294.5      294.8      294.5      294.4
                                 =========  =========  =========  =========

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.

@ThingsExpo Stories
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., 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.
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
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 devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
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.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
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 and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
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, data security and privacy.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.