Press Release
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Con Edison, Inc. Reports Third Quarter Earnings and Declares Dividend
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NEW YORK, Oct 17, 2002 /PRNewswire-FirstCall via COMTEX/ -- Consolidated
Edison, Inc. (NYSE: ED) today (THURSDAY, OCTOBER 17, 2002) reported net income
of $283.7 million for the third quarter of 2002 or $1.34 a share, compared with
earnings of $277.3 million or $1.31 a share for the third quarter of 2001. The
company's net income for the first nine months of 2002 before cumulative effect
of a change in accounting principle was $547.9 million or $2.58 a share,
compared with earnings of $557.1 million or $2.63 a share for the nine months
ended September 30, 2001. In its Statement No. 142 "Goodwill and Other
Intangible Assets," the Financial Accounting Standards Board changed the
accounting for goodwill. The company has modified its accounting to meet this
new standard and as a result has recorded a one-time non-cash impairment charge
of $20.2 million after tax. Including this charge, net income for the nine
months ended September 30, 2002 was $527.7 million or $2.48 a share. The
one-time impairment charge, as required under SFAS No. 142, is retroactive to
January 1, 2002 and is attributable to generating assets owned by Con Edison
Development.
The company also declared a quarterly dividend of 55 1/2 cents a share on its common stock payable December 15, 2002 to stockholders of record as of November 13, 2002. "Con Edison is on target for another solid year in 2002. Our utility systems are performing very well and we continue to maintain effective cost controls as we focus on the basics of our business," said Eugene R. McGrath, Chairman and Chief Executive Officer. "In a challenging economic environment, our financial condition remains strong with a solid balance sheet, good liquidity and above average debt ratings," McGrath added. For the full year 2002, the company is reaffirming its earnings range of $3.10 to $3.20 a share, excluding the goodwill impairment charge. The company's earnings for the third quarter reflect the impact of the summer heat wave offset in part by the soft economy. For the first nine months of 2002 the company's earnings also reflect the impact of the mild winter weather particularly on steam sales, partially offset by reduced operations and maintenance expenses. The company's earnings are generated substantially from its core regulated transmission and distribution business. "For June, July and August of 2002, the company set a new three-month electric delivery record of more than 17 million megawatt hours," said Kevin Burke, President of Con Edison of New York. "We saw five of our ten highest peak load days this summer. We are continuing our investment in our energy infrastructure to be ready to meet our customers' growing energy needs," he said. After adjusting for variations in weather and billing days in each period, electricity delivered by Con Edison of New York increased by 0.3 percent, while firm gas and steam delivered by Con Edison of New York decreased by 0.4 percent and 4.6 percent respectively, for the first nine months of 2002 when compared to the prior year. The company's net income before cumulative effect of change in accounting principle for the 12 months ended September 30, 2002 was $673.0 million or $3.17 a share. Net income for common stock, after the one-time non-cash impairment charge, for the 12 months ended September 30, 2002 amounted to $652.8 million or $3.07 a share. Earnings for the 12 months ended September 30, 2001 were $603.2 million or $2.84 a share. Absent the effect of previously reported non-recurring charges of $67.6 million after tax in 2000, earnings for the 12 months ended September 30, 2001 would have been $670.8 million or $3.16 a share. This 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. is one of the nation's largest investor-owned energy companies, with over $8 billion in annual revenues and $18 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 to 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, as well as 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, an infrastructure development company; and Con Edison Communications, a telecommunications infrastructure company. For additional financial, operations and customer service information, visit the Consolidated Edison, Inc. web site at http://www.conedison.com.
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
2002 2001
(Thousands of Dollars)
Operating revenues
Electric $2,127,517 $2,247,336
Gas 155,550 166,601
Steam 76,662 78,703
Non-utility* 150,275 134,916
Total operating revenues 2,510,004 2,627,556
Operating expenses
Purchased power* 1,061,852 1,072,042
Fuel 83,867 99,845
Gas purchased for resale 70,857 86,868
Other operations 200,048 258,599
Maintenance 98,757 101,128
Depreciation and amortization 126,162 133,011
Taxes, other than income tax 301,163 313,583
Income tax 181,203 176,069
Total operating expenses 2,123,909 2,241,145
Operating income 386,095 386,411
Other income (deductions)
Investment income 572 2,985
Allowance for equity funds used
during construction 1,983 286
Other income less miscellaneous deductions (2,583) (6,549)
Income tax 9,702 5,490
Total other income (deductions) 9,674 2,212
Income before interest charges 395,769 388,623
Interest on long-term debt 102,619 100,587
Other interest 8,305 9,230
Allowance for borrowed funds used
during construction (1,697) (1,934)
Net interest charges 109,227 107,883
Preferred stock dividend requirements 2,831 3,398
Net Income before cumulative effect
of change in accounting principle 283,711 277,342
Cumulative effect of change in
accounting principle -- --
Net income for common stock $283,711 $277,342
Earnings per common share - Basic
Before cumulative effect of change in
accounting principle $1.34 $1.31
Cumulative effect of change in
accounting principle -- --
After cumulative effect of change in
accounting principle $1.34 $1.31
Earnings per common share - Diluted
Before cumulative effect of change in
accounting principle $1.33 $1.30
Cumulative effect of change in
accounting principle -- --
After cumulative effect of change in
accounting principle $1.33 $1.30
Average number of shares outstanding -
Basic (000) 213,219 212,206
Average number of shares outstanding -
Diluted (000) 214,220 212,807
* Non-utility revenues and purchased power expenses were reduced by
$153.7 million in 2002 and $65.4 million in 2001 in accordance with
Financial Accounting Standard Board's Emerging Issues Task Force (EITF)
Issue No. 02-03, "Accounting for Contracts Involved In Energy Trading
and Risk Management Activities". This change has no impact on net
income.
Consolidated Edison, Inc. utility sales
Electric (thousands of kilowatthours)
Total energy delivered in service areas 17,814,059 16,963,547
Off-system and ESCO sales 14 164
Gas (dekatherms)
Firm sales and transportation 11,927,086 12,268,962
Off-system sales 1,824,729 2,060,386
Steam (thousands of pounds) 5,801,011 5,846,306
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
2002 2001
(Thousands of Dollars)
Operating revenues
Electric $4,827,348 $5,486,659
Gas 871,770 1,173,813
Steam 288,616 426,621
Non-utility* 417,032 414,584
Total operating revenues 6,404,766 7,501,677
Operating expenses
Purchased power* 2,430,772 2,739,562
Fuel 195,159 341,133
Gas purchased for resale 415,944 723,990
Other operations 663,566 799,583
Maintenance 297,327 345,914
Depreciation and amortization 368,731 404,877
Taxes, other than income tax 837,648 878,052
Income tax 351,674 379,841
Total operating expenses 5,560,821 6,612,952
Operating income 843,945 888,725
Other income (deductions)
Investment income 1,548 7,608
Allowance for equity funds used
during construction 8,103 787
Other income less miscellaneous deductions (2,185) (20,176)
Income tax 25,771 12,629
Total other income (deductions) 33,237 848
Income before interest charges 877,182 889,573
Interest on long-term debt 295,810 298,149
Other interest 27,252 29,254
Allowance for borrowed funds used
during construction (3,404) (5,156)
Net interest charges 319,658 322,247
Preferred stock dividend requirements 9,627 10,194
Net Income before cumulative effect
of change in accounting principle 547,897 557,132
Cumulative effect of change in
accounting principle (net of
income taxes of $13.9 million) 20,182 --
Net income for common stock $527,715 $557,132
Earnings per common share - Basic
Before cumulative effect of change in
accounting principle $2.58 $2.63
Cumulative effect of change in
accounting principle 0.10 --
After cumulative effect of change in
accounting principle $2.48 $2.63
Earnings per common share - Diluted
Before cumulative effect of change in
accounting principle $2.57 $2.62
Cumulative effect of change in
accounting principle 0.10 --
After cumulative effect of change in
accounting principle $2.47 $2.62
Average number of shares outstanding -
Basic (000) 212,766 212,119
Average number of shares outstanding -
Diluted (000) 213,850 212,519
* Non-utility revenues and purchased power expenses were reduced by
$257.7 million in 2002 and $189.8 million in 2001 in accordance with
Financial Accounting Standard Board's Emerging Issues Task Force (EITF)
Issue No. 02-03, "Accounting for Contracts Involved In Energy Trading
and Risk Management Activities". This change has no impact on net
income.
Consolidated Edison, Inc. utility sales
Electric (thousands of kilowatthours)
Total energy delivered in service areas 45,060,683 44,436,490
Off-system and ESCO sales 18,346 393,088
Gas (dekatherms)
Firm sales and transportation 80,321,453 90,959,293
Off-system sales 10,826,067 4,881,442
Steam (thousands of pounds) 18,218,358 21,036,158
CONSOLIDATED EDISON, INC.
CONSOLIDATED INCOME STATEMENT
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
2002 2001
(Thousands of Dollars)
Operating revenues
Electric $6,228,553 $7,066,607
Gas 1,163,913 1,541,403
Steam 365,730 551,061
Non-utility* 533,691 808,792
Total operating revenues 8,291,887 9,967,863
Operating expenses
Purchased power* 3,076,505 3,898,932
Fuel 247,857 402,699
Gas purchased for resale 551,914 974,248
Other operations 926,058 1,083,912
Maintenance 381,705 454,017
Depreciation and amortization 489,976 552,272
Taxes, other than income tax 1,098,700 1,105,056
Income tax 436,395 430,960
Total operating expenses 7,209,110 8,902,096
Operating income 1,082,777 1,065,767
Other income (deductions)
Investment income 5,177 5,983
Allowance for equity funds used
during construction 8,598 1,634
Other income less miscellaneous deductions (17,291) (53,533)
Income tax 35,063 25,665
Total other income (deductions) 31,547 (20,251)
Income before interest charges 1,114,324 1,045,516
Interest on long-term debt 394,609 395,774
Other interest 39,822 40,232
Allowance for borrowed funds used
during construction (6,139) (7,297)
Net interest charges 428,292 428,709
Preferred stock dividend requirements 13,025 13,592
Net Income before cumulative effect of
change in accounting principle 673,007 603,215
Cumulative effect of change in
accounting principle (net of
income taxes of $13.9 million) 20,182 --
Net income for common stock $652,825 $603,215
Earnings per common share - Basic
Before cumulative effect of change in
accounting principle $3.17 $2.84
Cumulative effect of change in
accounting principle 0.10 --
After cumulative effect of change in
accounting principle $3.07 $2.84
Earnings per common share - Diluted
Before cumulative effect of change in
accounting principle $3.16 $2.84
Cumulative effect of change in
accounting principle 0.10 --
After cumulative effect of change in
accounting principle $3.06 $2.84
* Non-utility revenues and purchased power expenses were reduced by
$313.2 million in 2002 and $223.4 million in 2001 in accordance with
Financial Accounting Standard Board's Emerging Issues Task Force (EITF)
Issue No. 02-03, "Accounting for Contracts Involved In Energy Trading
and Risk Management Activities". This change has no impact on net
income.
Average number of shares outstanding -
Basic (000) 212,640 212,091
Average number of shares outstanding -
Diluted (000) 213,694 212,450
Consolidated Edison, Inc. utility sales
Electric (thousands of kilowatthours)
Total energy delivered in service areas 58,901,309 58,322,603
Off-system and ESCO sales 122,183 890,949
Gas (dekatherms)
Firm sales and transportation 105,465,570 122,476,263
Off-system sales 14,677,976 8,105,305
Steam (thousands of pounds) 22,509,894 27,376,605
SOURCE Consolidated Edison, Inc.
CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111 URL: http://www.coned.com |
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