10-QPeriod: Q1 FY2021

CONSOLIDATED EDISON INC Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 6, 2021For Securities:ED

Summary

Consolidated Edison, Inc. (ED) reported solid financial results for the first quarter of 2021, with net income for common stock increasing to $419 million, or $1.23 per share, compared to $375 million, or $1.13 per share, in the prior year period. This growth was primarily driven by strong performance in the regulated utility segments (CECONY and O&R) and the Clean Energy Businesses, which benefited from higher revenues and improved net interest expense. Despite the ongoing impacts of the COVID-19 pandemic, the company demonstrated resilience. While managing increased allowances for uncollectible accounts, ED also benefited from CARES Act provisions and strategic investments in clean energy. Key capital expenditure plans are focused on infrastructure improvements and clean energy projects, funded through a combination of internally generated funds and debt issuance. The company reiterates its commitment to shareholder value through continued dividend growth.

Financial Statements
Beta
Revenue$3.68B
Operating Expenses$2.82B
Operating Income$860.00M
Interest Expense$227.00M
Net Income$419.00M
EPS (Basic)$1.23
EPS (Diluted)$1.22
Shares Outstanding (Basic)342.20M
Shares Outstanding (Diluted)343.00M

Key Highlights

  • 1Net income for common stock increased to $419 million ($1.23/share) in Q1 2021 from $375 million ($1.13/share) in Q1 2020, driven by regulated utilities and clean energy businesses.
  • 2CECONY's electric operations saw a significant increase in operating revenues, primarily due to higher purchased power and fuel expenses and an increase in revenues from the electric rate plan.
  • 3Con Edison Transmission recorded a substantial pre-tax goodwill impairment loss of $172 million related to its investment in Stagecoach, negatively impacting its net income for the quarter.
  • 4The company's Clean Energy Businesses saw a significant increase in operating revenues, driven by renewable electric production projects and wholesale revenues.
  • 5Capital expenditures are expected to increase, notably for the 'Reliable Clean City' (RCC) projects, with funding planned through internally generated funds, debt, and equity issuances.
  • 6The company continues to navigate the COVID-19 pandemic, with increased allowances for uncollectible accounts but also benefiting from CARES Act tax provisions.
  • 7A strong commitment to dividend growth, supported by earnings growth from regulated utilities and contracted energy assets, remains a strategic focus.

Frequently Asked Questions

The primary drivers for the increase in net income were the strong performance of the regulated utility segments (CECONY and O&R), which benefited from rate increases and milder weather impacts, and the Clean Energy Businesses, which saw increased revenues from renewable projects and improved net interest expense.

Consolidated Edison is managing the pandemic's impacts through enhanced safety protocols, continued service to customers, and prudent financial management. They have increased allowances for uncollectible accounts due to potential customer payment difficulties. Additionally, they have benefited from certain tax relief measures under the CARES Act and have deferred certain payroll tax payments.

The company is increasing its capital expenditure estimates, particularly for the 'Reliable Clean City' (RCC) projects aimed at addressing local transmission system reliability needs in New York City. These investments will be funded through a combination of internally generated funds, long-term debt, and common equity issuance over the next few years.

Yes, Con Edison Transmission recorded a significant pre-tax goodwill impairment loss of $172 million related to its investment in Stagecoach. This non-cash charge negatively impacted the net income of the Con Edison Transmission segment for the quarter.