01—Abstract
Summary
Summary of the 10-K filed February 21, 2012. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison, Inc. (Con Edison) and its subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), reported operating revenues of $12.94 billiona for the fiscal year ended December 31, 2011, a slight decrease from $13.33 billion in 2010.
Net income for Con Edison rose to $1.05 billionb, or $3.57 per diluted share, compared to $992 million, or $3.47 per diluted share, in the prior year. The company's regulated utility businesses, CECONY and Orange and Rockland Utilities, Inc. (O&R), continued to be the primary drivers of earnings, benefiting from approved rate plans designed to recover costs and provide a return on invested capital. Con Edison's capital expenditures were significant in 2011, totaling $1.89 billion for regulated utility construction and $114 million for competitive energy businesses, reflecting ongoing investments in infrastructure upgrades and modernization.
The company's financial health remains stable, with a common equity ratio of 52.5%c for Con Edison and 52.0% for CECONY at year-end 2011, alongside a reported ratio of earnings to fixed charges well above regulatory requirements. The company also highlighted its commitment to environmental sustainability and managing the risks associated with its operations and the energy markets.
02—Key points
Key Highlights
- Con Edison reported a net income of $1.05 billion for fiscal year 2011, an increase from $992 million in 2010, with diluted earnings per share of $3.57.
- Operating revenues decreased slightly to $12.94 billion in 2011 from $13.33 billion in 2010.
- CECONY, the primary utility subsidiary, saw its electric operating income increase by $146 million due to higher net revenues driven by rate increases, despite a slight decrease in electric delivery volumes.
- Significant capital expenditures were made in 2011, with $1.78 billion invested by CECONY and $111 million by O&R in their energy delivery systems.
- The company maintained a strong capital structure, with a common equity ratio of 52.5% for Con Edison and 52.0% for CECONY.
- Con Edison's total shareholder return for 2011 was 30.82%, outperforming the S&P 500 and S&P Utilities Index.
- Environmental matters, including greenhouse gas emissions reductions and liabilities related to manufactured gas sites and Superfund sites, are noted as ongoing areas of management attention and potential risk.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 21, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $12.89B$13.32B | −3.3% |
| R&D Expenses | $23.00M$23.00M | 0.0% |
| Operating Expenses | $10.65B$11.21B | −5.0% |
| Operating Income | $2.24B$2.12B | +5.6% |
| Interest Expense | $582.00M$597.00M | −2.5% |
| Net Income | $1.05B$992.00M | +5.9% |
| EPS (Basic) | $3.59$3.49 | +2.9% |
| EPS (Diluted) | $3.57$3.47 | +2.9% |
| Shares Outstanding (Basic) | 292.60M284.30M | +2.9% |
| Shares Outstanding (Diluted) | 294.40M285.90M | +3.0% |
05—Questions
Frequently Asked Questions
What was Con Edison's financial performance in 2011?
In 2011, Con Edison reported a net income of $1.05 billion, or $3.57 per diluted share, an increase from $992 million, or $3.47 per diluted share, in 2010. Operating revenues were $12.94 billion, a slight decrease from $13.33 billion in 2010.
How did Con Edison's utility segments perform?
CECONY's electric operations saw a significant increase in operating income due to rate increases, while its gas and steam segments experienced slight declines in operating income despite some revenue growth. O&R's electric and gas operations also showed mixed performance, with electric operating income increasing slightly and gas operating income decreasing marginally.
What were Con Edison's capital expenditures in 2011?
Con Edison continued to invest heavily in its infrastructure. CECONY invested $1.78 billion in its energy delivery systems, while O&R invested $111 million. Competitive energy businesses accounted for $114 million in capital expenditures.
What is Con Edison's outlook regarding future investments and market conditions?
The company anticipates substantial capital investments over the next few years to maintain and upgrade its energy delivery systems. Con Edison expects to finance these requirements primarily through internally generated funds and the sale of its securities, and does not anticipate needing to issue additional common equity in 2012. The company also acknowledged the impact of financial market conditions and the need to access capital markets.
06—Continue