10-QPeriod: Q1 FY2001

CONSOLIDATED EDISON INC Quarterly Report for Q1 Ended Mar 31, 2001

Filed May 15, 2001For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported financial results for the first quarter of 2001, showing a slight decrease in net income for common stock compared to the prior year. This was primarily driven by rate reductions and higher maintenance expenses, partially offset by increased sales volumes and decreased other operating expenses. The company's liquidity remains stable, supported by strong operating cash flows, though short-term debt levels increased. Key operational segments, including Electric, Gas, and Steam, all experienced revenue growth, largely due to higher energy costs, but faced varying impacts on operating income. Significant legal proceedings concerning the proposed acquisition of Northeast Utilities are ongoing and their ultimate financial impact remains uncertain.

Key Highlights

  • 1Total operating revenues increased by 24.5% to $2.89 billion in Q1 2001 compared to Q1 2000, primarily driven by higher energy prices and sales volumes.
  • 2Net income for common stock decreased by 4.8% to $179.1 million in Q1 2001 compared to $188.1 million in Q1 2000.
  • 3Basic earnings per share (EPS) decreased to $0.84 in Q1 2001 from $0.88 in Q1 2000.
  • 4The company's common equity ratio improved to 50.6% at March 31, 2001, from 49.1% at December 31, 2000.
  • 5Cash flows from operating activities decreased by $33.4 million to $165.7 million in Q1 2001 compared to Q1 2000.
  • 6The company is involved in significant litigation regarding its proposed acquisition of Northeast Utilities, with an uncertain outcome and potential material impact.
  • 7Environmental matters, including potential liabilities from hazardous substances and asbestos litigation, continue to be disclosed as potential risks.

Frequently Asked Questions

The increase in operating revenues is primarily driven by higher energy sales volumes and increased costs for purchased power and fuel, reflecting broader market price movements.

Net income decreased due to rate reductions implemented during the period and higher maintenance expenses. These factors more than offset the positive impact of increased sales volumes and a reduction in other operating expenses.

Consolidated Edison, Inc. initiated legal action seeking a declaration that it is not obligated to complete the acquisition of Northeast Utilities due to alleged breaches of conditions precedent by Northeast Utilities. Northeast Utilities counter-sued, claiming material breach by Con Edison. The outcome of this litigation is uncertain and could have a material adverse effect on the company's financial position, results of operations, or liquidity.

The company's liquidity is supported by cash flows from operations. While notes payable (primarily commercial paper) increased, the company's common equity ratio improved, indicating a stable capital structure. The report indicates a decrease in cash and temporary cash investments, but this is attributed to net cash flows used in investing and financing activities.