|Con Edison, Inc. Reports 2004 Second Quarter Earnings|
|Company Reaffirms 2004 Earnings Projections
NEW YORK, Jul 22, 2004 /PRNewswire-FirstCall via COMTEX/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported net income for common stock for the second quarter of 2004 of $86 million or 37 cents a share, compared with earnings of $66 million or 29 cents a share for the second quarter of 2003. The company also declared a quarterly dividend of 56-1/2 cents a share on its common stock payable September 15, 2004 to stockholders of record as of August 11, 2004.
"Our solid performance in the second quarter is consistent with our earnings forecast for the year," said Eugene R. McGrath, chairman and chief executive officer. "In operations, we energized three new substations, the most in three decades. These events were just a part of our preparation for our growing summer peak loads. They also represent another milestone in our multi-billion dollar investment in the most reliable electric system in the country," he said.
The company's net income for common stock for the first six months of 2004 was $241 million or $1.05 a share compared with $220 million or $1.01 a share for the first six months of 2003.
The following table represents an analysis of the major factors affecting basic earnings per share for the second quarter of 2004 compared with 2003:
Earnings per Share Variation Con Edison of New York: Impact of weather in 2004 on net revenues versus 2003 (estimated) $0.05 Sales growth and other revenue factors (estimated) 0.06 Regulatory accounting (0.02) Higher depreciation and property tax expense (0.03) Lower interest expense on long-term debt 0.01 Other 0.01 Total Con Edison of New York 0.08 Orange and Rockland Utilities 0.01 Con Edison Communications 0.02 Con Edison Development (0.01) Con Edison Energy -- Con Edison Solutions (0.03) Other (parent and inter-company accounting) 0.01 Total earnings per share variation $0.08
The earnings per share variations shown above include the dilutive effect of a higher weighted average number of common shares outstanding in the 2004 period (234 million shares) than in the 2003 period (219 million shares).
The following table represents an analysis of the major factors affecting basic earnings per share for the first six months of 2004 compared with 2003:
Earnings per Share Variation Con Edison of New York: Impact of weather in 2004 on net revenues versus 2003 (estimated) $0.03 Sales growth and other revenue factors (estimated) 0.06 Regulatory accounting 0.02 Higher depreciation and property tax expense (0.07) Lower interest expense on long-term debt 0.02 Allowance for equity funds used during construction and other income 0.03 Other 0.02 Total Con Edison of New York 0.11 Orange and Rockland Utilities -- Con Edison Communications 0.03 Con Edison Development (0.03) Con Edison Energy -- Con Edison Solutions (0.05) Other (parent and inter-company accounting) (0.02) Total earnings per share variation $0.04
The earnings per share variations shown above include the dilutive effect of a higher weighted average number of common shares outstanding in the 2004 period (231 million shares) than in the 2003 period (217 million shares).
For the second quarter and the first six months of 2004, Con Edison of New York's earnings variances reflect two significant factors. Higher net revenues in 2004 are due primarily to ongoing sales growth and the warm spring weather as compared with spring 2003. There was more than twice the number of cooling degree days in the second quarter of 2004 billing cycles as in the prior period. Higher depreciation and property taxes in 2004 reflect large continuing investments in energy delivery infrastructure.
The performance of the unregulated subsidiaries and parent in the second quarter and the first six months of 2004 compared with the 2003 periods reflect lower gross margins on electric sales and higher interest expense.
For the full year 2004, the company reaffirms its previous forecast of earnings in the range of $2.50 to $2.70 per share. The forecast reflects increased costs in the second half of the year for pensions and other post-retirement benefits, depreciation and property taxes, and the continued impact of the dilutive effect of common equity issuances. These factors are all addressed in Con Edison of New York's gas and steam proposed agreements and in the current electric rate proceeding.
For the three months ended June 30, 2004, amounts of electricity and gas delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.9 percent and 0.6 percent, respectively, while adjusted steam delivery volumes decreased 1.2 percent, as compared to the 2003 period.
For the first six months of 2004, amounts 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 1.8 percent, 0.8 percent and 0.3 percent, respectively, as compared to the 2003 period.
During the second quarter of 2004, the company issued 14 million shares of common stock under a public offering, resulting in net proceeds of $513 million.
Refer to attachments to this press release for the condensed consolidated balance sheets at June 30, 2004 and December 31, 2003 and the consolidated income statements for the three and six months ended June 30, 2004 and 2003.
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. (NYSE: ED) is one of the nation's largest investor-owned energy companies, with $10 billion in annual revenues and $22 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, 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. For additional financial, operations and customer service information, visit Consolidated Edison, Inc.'s Web site at http://www.conedison.com .
CONSOLIDATED EDISON, INC. CONSOLIDATED BALANCE SHEET (Condensed) (UNAUDITED) June 30, December 31, 2004 2003 ASSETS (Millions of Dollars) PLANT, AT ORIGINAL COST Utility plant -- net $14,708 $14,284 Non-utility plant -- net 946 941 NET PLANT 15,654 15,225 CURRENT ASSETS Cash and temporary cash investments 212 49 Funds held for the redemption of long-term debt 275 -- Accounts receivable -- customers, less allowance for uncollectible accounts 694 790 Other receivables, less allowance for uncollectible accounts 297 184 Inventories 126 133 Prepayments 90 98 Other current assets 397 338 TOTAL CURRENT ASSETS 2,091 1,592 INVESTMENTS 253 248 DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS Goodwill 406 406 Intangible assets -- net 106 111 Prepaid pension costs 1,348 1,257 Regulatory assets 2,073 1,861 Other deferred charges and noncurrent assets 293 266 TOTAL DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS 4,226 3,901 TOTAL ASSETS $22,224 $20,966 CAPITALIZATION AND LIABILITIES CAPITALIZATION Common shareholders' equity $6,994 $6,423 Preferred stock 213 213 Long-term debt 6,971 6,733 TOTAL CAPITALIZATION 14,178 13,369 NONCURRENT LIABILITIES Provision for injuries and damages 198 194 Pension and retiree benefits 230 205 Superfund and other environmental costs 200 193 Other noncurrent liabilities including minority interest 150 157 TOTAL NONCURRENT LIABILITIES 778 749 CURRENT LIABILITIES Long-term debt due within one year 291 166 Notes payable 40 159 Accounts payable 944 905 Customer deposits 234 228 Other current liabilities 419 453 TOTAL CURRENT LIABILITIES 1,928 1,911 DEFERRED CREDITS AND REGULATORY LIABILITIES Deferred income taxes and investment tax credits 3,412 3,172 Regulatory liabilities and other deferred credits 1,928 1,765 TOTAL DEFERRED CREDITS AND REGULATORY LIABILITIES 5,340 4,937 TOTAL CAPITALIZATION AND LIABILITIES $22,224 $20,966 CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT (Unaudited) For the Three Months For the Six Months Ended June 30, Ended June 30, 2004 2003 2004 2003 (Millions of Dollars) Operating revenues Electric $1,531 $1,561 $3,070 $3,054 Gas 283 326 928 946 Steam 93 97 328 334 Non-utility 262 192 528 412 Total operating revenues 2,169 2,176 4,854 4,746 Operating expenses Purchased power 890 906 1,820 1,770 Fuel 134 102 319 286 Gas purchased for resale 155 193 557 556 Other operations and maintenance 370 370 759 759 Depreciation and amortization 138 130 275 258 Taxes, other than income tax 256 270 538 556 Income tax 44 41 149 141 Total operating expenses 1,987 2,012 4,417 4,326 Operating income 182 164 437 420 Other income (deductions) Investment and other income 7 8 20 14 Allowance for equity funds used during construction 6 4 12 6 Other deductions (3) (5) (6) (8) Income tax 5 1 6 3 Total other income (deductions) 15 8 32 15 Interest expense Interest on long-term debt 106 99 214 198 Other interest expense 6 7 16 16 Allowance for borrowed funds used during construction (4) (3) (8) (5) Net interest expense 108 103 222 209 Income before preferred stock dividends of subsidiary 89 69 247 226 Preferred stock dividend requirements of subsidiary 3 3 6 6 Net income for common stock $86 $66 $241 $220 Earnings per common share -- Basic $0.37 $0.29 $1.05 $1.01 Earnings per common share -- Diluted $0.37 $0.29 $1.04 $1.01 Average number of shares outstanding -- Basic (in Millions) 234.0 219.3 230.6 217.1 Average number of shares outstanding -- Diluted (in Millions) 234.9 220.3 231.6 218.0 Consolidated Edison, Inc. - Utility sales Electric (thousands of kilowatthours) Total energy delivered in service areas 14,101,153 13,325,188 28,799,202 27,831,992 Gas (dekatherms) Firm sales and transportation 23,246,992 24,582,412 80,583,827 83,985,800 Steam (thousands of pounds) 4,743,702 4,435,485 15,357,270 15,107,574