01—Abstract
Summary
Summary of the 10-K filed February 21, 2014. 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 total operating revenues of $12.354 billiona for the year ended December 31, 2013.
Net income for common stock was $1.062 billionb, or $3.61 per diluted share, a decrease from the previous year primarily due to a $95 million charge related to Lease In/Lease Out (LILO) transactions and lower competitive energy business results. The company's regulated utility businesses, CECONY and Orange and Rockland Utilities (O&R), continue to be the primary drivers of earnings, with approved rate plans designed to recover costs and provide a return on invested capital. Con Edison invested significantly in infrastructure upgrades, with CECONY alone investing $2.135 billion in 2013 to enhance its energy delivery systems.
02—Key points
Key Highlights
- Con Edison reported total operating revenues of $12.354 billion for the year ended December 31, 2013.
- Net income attributable to common stockholders was $1.062 billion, or $3.61 per diluted share, a decrease from $1.138 billion in 2012.
- The decrease in net income was primarily influenced by a $95 million after-tax charge related to the termination of Lease In/Lease Out (LILO) transactions.
- CECONY, the primary subsidiary, invested $2.135 billion in its energy delivery systems for upgrades and reinforcement.
- The company's regulated utilities (CECONY and O&R) generated the substantial majority of earnings, supported by approved rate plans which include mechanisms for cost recovery and revenue decoupling.
- Regulatory developments included a joint proposal for CECONY's electric, gas, and steam delivery service rates for 2014-2016, aimed at adjusting revenues and reflecting updated capital costs.
- Con Edison's stock performance lagged behind market indices such as the S&P 500 and S&P Utilities in 2013, with a total shareholder return of 3.79% compared to 32.39% for the S&P 500.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 21, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $12.35B$12.19B | +1.4% |
| R&D Expenses | $18.00M$21.00M | −14.3% |
| Operating Expenses | $10.11B$9.85B | +2.7% |
| Operating Income | $2.24B$2.34B | −4.1% |
| Interest Expense | $578.00M$586.00M | −1.4% |
| Net Income | $1.06B$1.14B | −6.7% |
| EPS (Basic) | $3.62$3.88 | −6.7% |
| EPS (Diluted) | $3.61$3.86 | −6.5% |
| Shares Outstanding (Basic) | 292.90M292.90M | 0.0% |
| Shares Outstanding (Diluted) | 294.40M294.50M | 0.0% |
05—Questions
Frequently Asked Questions
What was Con Edison's financial performance in 2013 compared to 2012?
In 2013, Con Edison's net income for common stock decreased to $1.062 billion ($3.61 per diluted share) from $1.138 billion ($3.86 per diluted share) in 2012. This decrease was largely attributed to a $95 million after-tax charge related to the termination of Lease In/Lease Out (LILO) transactions and a decline in results from the competitive energy businesses.
How did regulatory changes impact Con Edison in 2013?
Con Edison's regulated utilities, CECONY and O&R, operate under approved rate plans. In late 2013, CECONY entered into a Joint Proposal for its electric, gas, and steam delivery rates for 2014 and 2015 (and gas/steam for 2016), which included revenue reductions in 2014 and increases in 2015 for electric delivery service. Regulatory changes also followed Superstorm Sandy, with new policies for customer credits during extended outages and revised utility performance scorecards.
What were the significant capital expenditures made by Con Edison in 2013?
Con Edison made substantial investments in its infrastructure in 2013. CECONY invested $2.135 billion to upgrade and reinforce its energy delivery systems, while O&R invested $135 million and the competitive energy businesses invested $378 million, primarily in solar projects.
How did Con Edison's stock perform relative to the market in 2013?
Con Edison's stock underperformed major market indices in 2013. The company's total return to common shareholders was 3.79%, significantly lower than the S&P 500 Index's 32.39% and the S&P Utilities Index's 13.21%. Over the five-year period from 2009 to 2013, Con Edison's average annual total return was 12.51%, also below the S&P 500's 17.94%.
06—Continue