NewsCon Edison Media Relations
For Immediate Release: January 19, 2007
CON EDISON REPORTS 2006 EARNINGS
NEW YORK - Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported 2006 earnings of $737 million or $2.96 a share, compared with earnings of $719 million or $2.95 a share in 2005.
For the fourth quarter of 2006, the company’s earnings were $201 million or $0.78 a share compared with earnings of $138 million or $0.56 a share for the fourth quarter of 2005.
“Our 2006 results reflect the capital investments we’ve made in our infrastructure to meet the growing energy needs of our customers and the improved performance of our competitive energy businesses,” said Kevin Burke, the company’s Chairman, President and Chief Executive Officer.
The company also declared a quarterly dividend of 58 cents a share on its common stock, payable March 15, 2007 to shareholders of record as of February 14, 2007, an annualized increase of 2 cents over the previous annual dividend of $2.30 a share. “The increase in the dividend, the 33rd consecutive annual increase, reflects our confidence in the company's future and is a tangible measure of our commitment to our shareholders,” said Robert Hoglund, Senior Vice President and Chief Financial Officer.
The company expects its earnings for 2007 to be in the range of $3.05 to $3.25 a share, excluding the mark-to-market effects of the competitive energy businesses, which are not presently determinable. On a comparable basis, earnings in 2006 were $3.05 (excluding a mark-to-market loss of $0.09 a share) and in 2005 were $2.96 (excluding a mark-to-market loss of $0.01 a share). The forecast reflects construction expenditures of $2.0 billion for the company’s regulated utilities, common stock issuance of between $500 million and $700 million in addition to stock issuances under the company’s dividend reinvestment and employee stock plans, and long-term debt issuances of between $900 million and $1.3 billion in addition to debt issuances for maturing securities.
The results of operations for the three months and year ended December 31, 2006, as compared with the 2005 periods, reflect milder weather in 2006, the utilities’ rate plans, expenditures related to the 2006 power outages, increased interest expense and the results of the competitive energy businesses including mark-to-market effects. The following table presents the estimated effect on earnings per share and net income for the year and fourth quarter of 2006 compared with the 2005 periods:
The earnings per share variations shown above include the dilutive effect of a higher weighted average number of common shares outstanding in the three months and year ended December 31, 2006. The weighted average number of common shares was 257 million shares and 249 million shares for the three months and year ended December 31, 2006, compared with 245 million shares and 244 million shares in the 2005 periods, respectively. The dilutive effect on earnings per share for the three months and year ended December 31, 2006 is $0.04 and $0.06, respectively. These amounts per share do not reflect the offsetting benefits of avoided interest expense.
Amounts of electricity and gas delivered by Con Edison of New York in 2006, after adjusting for variations in weather and billing days in the period, increased 1.8 percent and 1.3 percent, respectively, as compared with the 2005 period. Steam deliveries, after adjusting for variations in weather and billing days in the period, decreased 0.6 percent compared with the 2005 period.
Refer to the attachment to this press release for the consolidated income statements for 2006 and 2005. Additional information related to utility sales and revenues is available at www.conedison.com (select “Investor Relations” and then select “Press Releases”).
This press release contains forward-looking statements that reflect expectations and not facts. Actual results may differ materially from those expectations because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission.
This press release also contains a financial measure, "Earnings, excluding the mark-to-market effects of the competitive energy businesses," not determined in accordance with Generally Accepted Accounting Principles (GAAP). This non-GAAP measure should not be considered as an alternative to net income, which is an indicator of operating performance determined in accordance with GAAP. Management uses this non-GAAP measure to facilitate the analysis of the company's ongoing performance as compared to its internal budgets and previously reported financial results. Management believes that this non-GAAP measure is also useful and meaningful to investors.
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with approximately $12 billion in annual revenues and $27 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas, and steam service in New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,350 square mile area in southeastern New York state and adjacent sections of northern New Jersey and northeastern Pennsylvania; Consolidated Edison Solutions, Inc., a retail energy supply and services company; Consolidated Edison Energy, Inc., a wholesale energy supply company; and Consolidated Edison Development, Inc., a company that owns and operates generating plants and participates in other infrastructure projects.
Income Statement (PDF Format)
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