Press Release
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Con Edison, Inc. Reports 2006 Second Quarter Earnings
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2nd Quarter 2006 Sales and Revenue Report
NEW YORK, Aug. 2 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2006 second quarter earnings of $124 million or $0.50 a share, compared with earnings of $115 million or $0.47 cents a share for the second quarter of 2005. "We are spending more than $1.8 billion this year to improve our energy delivery systems," said Kevin Burke, Chairman, President and Chief Executive Officer. "These investments reflect our commitment to our customers and our determination to meet New York's growing demand for energy," he said. The company's net income for common stock for the first six months of 2006 was $305 million or $1.24 a share compared with $297 million or $1.22 a share for the first six months of 2005. During a July 2006 heat wave, electric service to a number of customers in Con Edison of New York's Long Island City distribution network in Queens, New York was interrupted. The company now expects its earnings for the year 2006 to be in the range of $2.75 to $3.00 per share. The company's previous forecast of 2006 earnings was in the range of $2.90 to $3.10 per share. The Companies' results of operations for the three and six months ended June 30, 2006, as compared with the 2005 periods, reflect growth in weather- adjusted sales, milder winter and spring weather, the Companies' rate plans (including the electric rate plan that took effect in April 2005) and, for Con Edison, the results of the competitive energy businesses' including net mark- to-market losses. The following table presents the effect on earnings per share and net income for the second quarter and first six months of 2006, as compared to the 2005 periods, resulting from these and other major factors:
Second Quarter Six Months Ended
Variation Variation
Net Income Earnings Net Income
Earnings (Millions of per (Millions of
per Share Dollars) Share Dollars)
Con Edison of New York
Sales growth
(estimated) $0.03 $7 $0.06 $14
Impact of weather in
2006 versus 2005
(estimated) (0.04) (10) (0.12) (29)
Electric rate plan
(estimated) 0.11 29 0.42 102
Gas rate plan
(estimated) 0.02 4 0.05 11
Steam rate plan
(estimated) 0.02 4 0.05 13
Higher operations
and maintenance
expense (0.05) (13) (0.09) (21)
Stock-based
compensation
expense - (1) (0.02) (6)
Higher depreciation
and property taxes (0.06) (14) (0.17) (41)
Higher interest
charges (0.04) (10) (0.06) (15)
Other (includes
effect of dilution
on earnings per share) (0.02) (1) (0.03) (1)
Total Con Edison of New York (0.03) (5) 0.09 27
Orange and Rockland Utilities - (2) (0.03) (7)
Competitive energy businesses
Earnings excluding
mark-to-market
losses (net) 0.08 20 0.13 31
Mark-to-market
losses (net) (0.02) (5) (0.14) (34)
Other, including parent
company expenses - - (0.04) (11)
Discontinued operations - 1 0.01 2
Total variation $0.03 $9 $0.02 $8
The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2006 three-month and six-month periods (246 million shares in each period) than in the 2005 three-month and six-month periods (243 million shares in each period). For the three months ended June 30, 2006, amounts of electricity and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased by 2.0 percent and 0.3 percent compared with the 2005 period, respectively. Gas deliveries, after adjusting for variations in weather and billing days in the period, decreased 2.2 percent compared with the prior period. For the first six months of 2006, amounts of electricity delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.3 percent. Gas and steam deliveries, after adjusting for variations in weather and billing days in the period, decreased 0.4 percent and 1.0 percent, respectively, as compared with the 2005 period. Refer to the attachments to this press release for the consolidated balance sheets at June 30, 2006 and December 31, 2005 and the consolidated income statements for the three and six months ended June 30, 2006 and 2005. For additional information related to utility sales and revenues go to the Con Edison Web site at http://www.conedison.com, select "Investor Information" and then select "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. Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with approximately $12 billion in annual revenues and $25 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 owns and operates generating plants and participates in other infrastructure projects.
Consolidated Edison, Inc.
CONSOLIDATED BALANCE SHEET
(Unaudited)
June 30, 2006 December 31, 2005
(Millions of Dollars)
ASSETS
UTILITY PLANT, AT ORIGINAL COST
Electric $14,088 $13,586
Gas 3,133 3,044
Steam 1,662 1,624
General 1,585 1,541
TOTAL 20,468 19,795
Less: Accumulated depreciation 4,513 4,355
Net 15,955 15,440
Construction work in progress 915 771
NET UTILITY PLANT 16,870 16,211
NON-UTILITY PLANT
Unregulated generating assets, less
accumulated depreciation
of $115 and $102 in 2006 and 2005,
respectively 797 810
Non-utility property, less
accumulated depreciation of $34 and
$31 in 2006 and 2005, respectively 35 38
Non-utility property held for sale - 52
Construction work in progress 1 1
NET PLANT 17,703 17,112
CURRENT ASSETS
Cash and temporary cash investments 63 81
Restricted cash 18 15
Accounts receivable -- customers, less
allowance for uncollectible accounts
of $40 and $39 in 2006 and 2005,
respectively 678 1,025
Accrued unbilled revenue 111 116
Other receivables, less allowance for
uncollectible accounts of $5 and $6
in 2006 and 2005, respectively 388 350
Fuel oil, at average cost 60 47
Gas in storage, at average cost 205 248
Materials and supplies, at average cost 138 130
Prepayments 148 434
Fair value of derivative assets 107 331
Recoverable energy costs 200 221
Current assets held for sale - 8
Deferred derivative losses 77 9
Other current assets 217 147
TOTAL CURRENT ASSETS 2,410 3,162
INVESTMENTS 269 265
DEFERRED CHARGES, REGULATORY ASSETS
AND NONCURRENT ASSETS
Goodwill 406 406
Intangible assets, less accumulated
amortization of $29 and $24 in 2006
and 2005, respectively 85 90
Prepaid pension costs 1,437 1,474
Regulatory assets 2,066 2,017
Other deferred charges and noncurrent assets 278 324
TOTAL DEFERRED CHARGES, REGULATORY
ASSETS AND NONCURRENT ASSETS 4,272 4,311
TOTAL ASSETS $24,654 $24,850
The accompanying notes are an integral part of these financial statements.
Consolidated Edison, Inc.
CONSOLIDATED BALANCE SHEET
(Unaudited)
June 30, 2006 December 31, 2005
(Millions of Dollars)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common shareholders' equity
(See Statement of Common
Shareholders' Equity) $7,375 $7,310
Preferred stock of subsidiary 213 213
Long-term debt 8,063 7,398
TOTAL CAPITALIZATION 15,651 14,921
MINORITY INTERESTS 42 42
NONCURRENT LIABILITIES
Obligations under capital leases 28 30
Provision for injuries and damages 166 167
Pensions and retiree benefits 284 223
Superfund and other environmental costs 264 238
Asset retirement obligations 97 94
Noncurrent liabilities held for sale - 9
Other noncurrent liabilities 104 64
TOTAL NONCURRENT LIABILITIES 943 825
CURRENT LIABILITIES
Long-term debt due within one year 44 22
Notes payable 352 755
Accounts payable 963 1,236
Customer deposits 224 229
Accrued taxes 31 94
Accrued interest 125 102
Accrued wages 85 77
Fair value of derivative liabilities 260 133
Deferred derivative gains 14 224
Deferred income taxes -- recoverable
energy costs 82 90
Current liabilities held for sale - 12
Other current liabilities 258 349
TOTAL CURRENT LIABILITIES 2,438 3,323
DEFERRED CREDITS AND REGULATORY LIABILITIES
Deferred income taxes and investment
tax credits 3,726 3,644
Regulatory liabilities 1,831 2,062
Other deferred credits 23 33
TOTAL DEFERRED CREDITS AND REGULATORY
LIABILITIES 5,580 5,739
TOTAL CAPITALIZATION AND LIABILITIES $24,654 $24,850
The accompanying notes are an integral part of these financial statements.
Consolidated Edison, Inc.
CONSOLIDATED INCOME STATEMENT
(Unaudited)
For the For the
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
(Millions of Dollars/Except Share Data)
OPERATING REVENUES
Electric $1,666 $1,640 $3,425 $3,144
Gas 349 354 1,192 1,082
Steam 106 96 381 363
Non-utility 434 305 874 597
TOTAL OPERATING REVENUES 2,555 2,395 5,872 5,186
OPERATING EXPENSES
Purchased power 1,019 958 2,203 1,888
Fuel 145 139 400 331
Gas purchased for resale 189 201 745 653
Other operations and maintenance 437 405 877 819
Depreciation and amortization 153 146 305 287
Taxes, other than income taxes 299 281 617 551
Income taxes 65 39 169 149
TOTAL OPERATING EXPENSES 2,307 2,169 5,316 4,678
OPERATING INCOME 248 226 556 508
OTHER INCOME (DEDUCTIONS)
Investment and other income 8 11 20 17
Allowance for equity funds used
during construction 1 - 2 8
Preferred stock dividend
requirements of subsidiary (3) (3) (6) (6)
Other deductions (4) (4) (9) (10)
Income taxes 6 2 (2) 6
TOTAL OTHER INCOME (DEDUCTIONS) 8 6 5 15
INTEREST EXPENSE
Interest on long-term debt 119 113 232 219
Other interest 12 1 25 10
Allowance for borrowed funds
used during construction (1) - (2) (6)
NET INTEREST EXPENSE 130 114 255 223
INCOME FROM CONTINUING OPERATIONS 126 118 306 300
INCOME FROM DISCONTINUED OPERATIONS
(NET OF INCOME TAXES) (2) (3) (1) (3)
NET INCOME $124 $115 $305 $297
EARNINGS PER COMMON SHARE -- BASIC
Continuing operations $0.51 $0.48 $1.24 $1.23
Discontinued operations (0.01) (0.01) - (0.01)
Net income $0.50 $0.47 $1.24 $1.22
EARNINGS PER COMMON SHARE -- DILUTED
Continuing operations $0.51 $0.48 $1.24 $1.23
Discontinued operations (0.01) (0.01) - (0.01)
Net income $0.50 $0.47 $1.24 $1.22
DIVIDENDS DECLARED PER SHARE OF
COMMON STOCK $0.575 $0.570 $1.150 $1.140
AVERAGE NUMBER OF SHARES OUTSTANDING
-- BASIC (IN MILLIONS) 245.9 243.4 245.7 243.1
AVERAGE NUMBER OF SHARES OUTSTANDING
-- DILUTED (IN MILLIONS) 246.7 244.2 246.7 243.8
The accompanying notes are an integral part of these financial statements.
SOURCE Consolidated Edison, Inc. -0- 08/02/2006 /CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111/ /Web site: http://www.coned.com / (ED) CO: Consolidated Edison, Inc.; Con Edison |
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