10-QPeriod: Q2 FY2011

CONSOLIDATED EDISON INC Quarterly Report for Q2 Ended Jun 30, 2011

Filed August 5, 2011For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiary Consolidated Edison Company of New York, Inc. (CECONY) reported their financial results for the second quarter and first six months of 2011. For the second quarter of 2011, Con Edison reported net income for common stock of $165 million ($0.57 per share), a decrease from $183 million ($0.65 per share) in the same period of 2010. For the first six months of 2011, net income for common stock was $477 million ($1.63 per share), an increase from $409 million ($1.45 per share) in the comparable period of 2010. The company's results were impacted by various factors including changes in utility rate plans, operational costs, and the performance of its competitive energy businesses. The regulated utility segments (CECONY and O&R) saw increases in net income for the six-month period, largely driven by rate plan adjustments designed to recover increased costs. However, the competitive energy businesses experienced a significant decrease in net income for the second quarter, primarily due to unfavorable mark-to-market effects. Overall, Con Edison's financial position remained stable, with a strong focus on maintaining reliable energy services and managing operational expenses within regulatory frameworks.

Financial Highlights

44 data points
Beta

Revenue

$2.99B

Net Income

$165.00M

5.5% Net Margin

EPS (Diluted)

$0.56

Total Assets

$36.02B

Cash & Equivalents

$492.00M

Free Cash Flow

$1.20B

Financial Statements
Beta
Revenue$2.99B
Operating Expenses$2.60B
Operating Income$398.00M
Interest Expense$146.00M
Net Income$165.00M
EPS (Basic)$0.57
EPS (Diluted)$0.56
Shares Outstanding (Basic)292.70M
Shares Outstanding (Diluted)294.30M

Key Highlights

  • 1Consolidated net income for common stock for the six months ended June 30, 2011, was $477 million, an increase from $409 million in the same period of 2010.
  • 2Diluted earnings per common share for the six months ended June 30, 2011, were $1.62, an increase from $1.44 in the comparable period of 2010.
  • 3Total operating revenues for the six months ended June 30, 2011, were $6,342 million, a decrease from $6,478 million in the prior year period.
  • 4Operating income for Con Edison increased to $1,024 million for the first six months of 2011, up from $921 million in the first six months of 2010.
  • 5Cash flows from operating activities for Con Edison significantly increased to $1,589 million for the first six months of 2011, compared to $795 million in the same period of 2010, primarily due to World Trade Center cost recoveries and tax refunds.
  • 6Con Edison's common equity ratio stood at 50.8% at June 30, 2011, indicating a solid capital structure.
  • 7The company continues to invest in utility plant construction, with $1,299 million in construction work in progress as of June 30, 2011.

Frequently Asked Questions

For the second quarter of 2011, Consolidated Edison, Inc. (Con Edison) reported a decrease in net income for common stock to $165 million ($0.57 per share) from $183 million ($0.65 per share) in the same period of 2010. However, for the first six months of 2011, net income for common stock increased to $477 million ($1.63 per share) from $409 million ($1.45 per share) in the first six months of 2010. This mixed performance was influenced by various operational factors and segment results.

The regulated utility segments (CECONY and O&R) generally showed improved net income for the first six months of 2011, largely benefiting from regulatory rate plan adjustments that helped recover increased operational costs. In contrast, the competitive energy businesses experienced a notable decline in net income, particularly in the second quarter, due to unfavorable mark-to-market effects on derivative instruments.

Operating revenues saw a slight decrease for the six-month period, influenced by lower purchased power costs and changes in the competitive energy business segments. Expenses were affected by higher operations and maintenance costs, including increased pension and employee health insurance expenses, which were partially offset by cost control efforts. Depreciation and amortization, as well as taxes other than income taxes, also increased, primarily due to higher utility plant balances and property taxes.

Con Edison reported a significant increase in cash flows from operating activities for the first six months of 2011, driven by World Trade Center cost recoveries and tax refunds. The company maintained a strong common equity ratio of 50.8% at June 30, 2011, indicating a stable capital structure. Investment in utility plant construction remained a priority, with substantial amounts in construction work in progress.