10-QPeriod: Q1 FY2015

CONSOLIDATED EDISON INC Quarterly Report for Q1 Ended Mar 31, 2015

Filed May 7, 2015For Securities:ED

Summary

Consolidated Edison Inc. (ED) reported its first quarter 2015 results, showing a slight increase in net income to $370 million from $361 million in the prior year period. Diluted earnings per share remained stable at $1.26. The company's regulated utility operations, primarily CECONY, continue to be the main drivers of revenue and profit, with improvements noted in gas delivery service due to oil-to-gas conversions and lower operating expenses. While overall revenues saw a decrease driven by lower gas and electric prices, the company managed its expenses effectively. Key areas of focus include ongoing investments in utility infrastructure, particularly for grid modernization and reliability, as outlined in their capital expenditure plans. The company is also navigating regulatory developments, including the "Reforming the Energy Vision" initiative in New York. Investors should note the slight increase in net interest expense and the company's continued reliance on capital markets for funding, as highlighted in the liquidity section.

Financial Highlights

45 data points
Beta

Revenue

$3.62B

Net Income

$370.00M

10.2% Net Margin

EPS (Diluted)

$1.26

Total Assets

$43.98B

Cash & Equivalents

$117.00M

Free Cash Flow

$517.00M

Financial Statements
Beta
Revenue$3.62B
Operating Expenses$2.89B
Operating Income$726.00M
Interest Expense$156.00M
Net Income$370.00M
EPS (Basic)$1.26
EPS (Diluted)$1.26
Shares Outstanding (Basic)292.90M
Shares Outstanding (Diluted)293.90M

Key Highlights

  • 1Net income increased to $370 million for Q1 2015 from $361 million in Q1 2014.
  • 2Diluted earnings per share remained consistent at $1.26 for both periods.
  • 3Total operating revenues decreased to $3,616 million from $3,789 million year-over-year, primarily due to lower gas and electric revenues.
  • 4Operating income increased to $726 million from $685 million, driven by effective cost management and lower operating expenses.
  • 5CECONY's gas operations saw increased delivery volumes due to oil-to-gas conversions, contributing to revenue stability in that segment.
  • 6The company continues to invest in utility plant construction, with utility construction expenditures totaling $550 million for Con Edison and $519 million for CECONY in Q1 2015.
  • 7The company's competitive energy businesses experienced a net loss of $7 million in operating income for the quarter, compared to a gain of $2 million in the prior year, impacted by lower mark-to-market gains.

Frequently Asked Questions

Consolidated Edison reported a net income of $370 million for the first quarter of 2015, an increase from $361 million in the same period of 2014. Diluted earnings per share remained stable at $1.26. While total operating revenues saw a decrease to $3.616 billion from $3.789 billion, the company effectively managed its operating expenses, leading to an increase in operating income to $726 million.

The regulated utility operations, primarily CECONY, showed a mixed performance. CECONY's electric segment experienced a slight decrease in operating revenues but improved operating income due to lower purchased power and fuel expenses. The gas segment saw increased delivery volumes driven by oil-to-gas conversions, which helped offset lower gas prices, leading to improved operating income. O&R also demonstrated resilience with slight increases in operating income for both its electric and gas segments.

Consolidated Edison continues to invest significantly in its utility infrastructure. For the first quarter of 2015, utility construction expenditures were substantial, with Con Edison reporting $550 million and CECONY reporting $519 million. The company is also investing in renewable energy projects through its competitive energy businesses, with capital expenditures for these businesses increasing.

The company is subject to various regulatory matters, including the ongoing 'Reforming the Energy Vision' (REV) initiative in New York, which aims to modernize the energy system. Additionally, the company continues to manage liabilities related to environmental remediation, Superstorm Sandy restoration costs, and past investigations into employee conduct. While these present ongoing considerations, the company has accrued liabilities where appropriate and is actively engaged with regulatory bodies.