Con Edison Reports 2021 First Quarter Earnings
Consolidated Edison, Inc. (NYSE: ED) reported a first-quarter net income of $419 million or $1.23 per share for 2021, compared to $375 million or $1.13 per share in 2020. Adjusted earnings rose to $491 million or $1.44 per share, up from $451 million or $1.35 per share in the previous year. The company reaffirmed its 2021 adjusted earnings per share forecast of $4.15 to $4.35, excluding certain impairments and accounting effects. CEO Timothy P. Cawley emphasized Con Edison's commitment to clean energy investments and reliable service.
- First-quarter net income increased by 11.7% year-over-year.
- Adjusted earnings rose to $491 million, up 8.9% from the previous year.
- Reaffirmed 2021 adjusted earnings per share guidance of $4.15 to $4.35.
- Impairment loss related to investment in Stagecoach reduced earnings by $0.35 per share after-tax.
- HLBV accounting adjustments impacted earnings by approximately $0.23 per share after-tax.
NEW YORK, May 6, 2021 /PRNewswire/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2021 first quarter net income for common stock of
"Con Edison is leading the way to a clean energy future with its investments in renewable energy, electric vehicle infrastructure, and energy efficiency," said Timothy P. Cawley, the company's president and chief executive officer. "Delivering energy safely and reliably is always a top priority, and our workforce continues to provide value for shareholders and all New Yorkers during this challenging time."
For the year of 2021, Con Edison reaffirmed its previous forecast of adjusted earnings per share to be in the range of
See Attachment A to this press release for a reconciliation of Con Edison's reported earnings per share to adjusted earnings per share and reported net income for common stock to adjusted earnings for the three months ended March 31, 2021 and 2020. See Attachment B for the estimated effect of major factors resulting in variations in earnings per share and net income for common stock for the three months ended March 31, 2021 compared to the 2020 period.
The company's 2021 First Quarter Form 10-Q is being filed with the Securities and Exchange Commission. A first quarter 2021 earnings release presentation will be available at www.conedison.com. (Select "For Investors" and then select "Press Releases.")
This press release contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as "forecasts," "expects," "estimates," "anticipates," "intends," "believes," "plans," "will," "target," "guidance" and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time.
Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports Con Edison has filed with the Securities and Exchange Commission, including that Con Edison's subsidiaries are extensively regulated and are subject to penalties; its utility subsidiaries' rate plans may not provide a reasonable return; it may be adversely affected by changes to the utility subsidiaries' rate plans; the failure of, or damage to, its subsidiaries' facilities could adversely affect it; a cyber-attack could adversely affect it; the failure of processes and systems and the performance of employees and contractors could adversely affect it; it is exposed to risks from the environmental consequences of its subsidiaries' operations, including increased costs related to climate change; a disruption in the wholesale energy markets or failure by an energy supplier or customer could adversely affect it; it has substantial unfunded pension and other postretirement benefit liabilities; its ability to pay dividends or interest depends on dividends from its subsidiaries; it requires access to capital markets to satisfy funding requirements; changes to tax laws could adversely affect it; its strategies may not be effective to address changes in the external business environment; it faces risks related to health epidemics and other outbreaks, including the COVID-19 pandemic; and it also faces other risks that are beyond its control. Con Edison assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
This press release also contains financial measures, adjusted earnings and adjusted earnings per share, that are not determined in accordance with generally accepted accounting principles in the United States of America (GAAP). These non-GAAP financial measures should not be considered as an alternative to net income for common stock or net income per share, respectively, each of which is an indicator of financial performance determined in accordance with GAAP. Adjusted earnings and adjusted earnings per share exclude from net income for common stock and net income per share, respectively, certain items that Con Edison does not consider indicative of its ongoing financial performance such as the impairment loss related to Con Edison's investment in Stagecoach, the effects of the Clean Energy Businesses' HLBV accounting for tax equity investors in certain renewable and sustainable electric production projects and mark-to-market accounting. Management uses these non-GAAP financial measures to facilitate the analysis of Con Edison's financial performance as compared to its internal budgets and previous financial results and to communicate to investors and others Con Edison's expectations regarding its future earnings and dividends on its common stock. Management believes that these non-GAAP financial measures are also useful and meaningful to investors to facilitate their analysis of Con Edison's financial performance.
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy-delivery companies, with approximately
Attachment A | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
Earnings per Share | Net Income for (Millions of Dollars) | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Reported earnings per share (basic) and net income for common stock (GAAP basis) | ||||||||
Impairment loss related to investment in Stagecoach (pre-tax) | 0.51 | — | 172 | — | ||||
Income taxes (a) | (0.16) | — | (52) | — | ||||
Impairment loss related to investment in Stagecoach (net of tax) | 0.35 | — | 120 | — | ||||
HLBV effects of the Clean Energy Businesses (pre-tax) | — | 0.06 | 1 | 17 | ||||
Income taxes (b) | — | (0.02) | — | (4) | ||||
HLBV effects of the Clean Energy Businesses (net of tax) | — | 0.04 | 1 | 13 | ||||
Net mark-to-market effects of the Clean Energy Businesses (pre-tax) | (0.19) | 0.25 | (65) | 83 | ||||
Income taxes (b) | 0.05 | (0.07) | 16 | (20) | ||||
Net mark-to-market effects of the Clean Energy Businesses (net of tax) | (0.14) | 0.18 | (49) | 63 | ||||
Adjusted earnings per share and adjusted earnings (non-GAAP basis) | ||||||||
(a) | The amount of income taxes was calculated using a combined federal and state income tax rate of |
(b) | The amount of income taxes was calculated using a combined federal and state income tax rate of |
Attachment B | ||||
Variation for the Three Months Ended March 31, 2021 vs. 2020 | ||||
Earnings per Share | Net Income | |||
CECONY (a) | ||||
Changes in rate plans | Primarily reflects higher electric and gas net base revenues of | |||
Weather impact on steam revenues | 0.06 | 22 | Reflects the impact of colder winter weather in 2021. | |
Operations and maintenance expenses | (0.09) | (29) | Reflects higher costs for pension and other postretirement benefits of | |
Depreciation, property taxes and other tax matters | (0.18) | (60) | Reflects higher property taxes of | |
Other | 0.06 | 28 | Primarily reflects lower costs associated with components of pension and other postretirement benefits other than service cost of | |
Total CECONY | 0.14 | |||
O&R (a) | ||||
Changes in rate plans | — | 2 | ||
Operations and maintenance expenses | (0.01) | (4) | Primarily reflects higher storm-related costs. | |
Depreciation, property taxes and other tax matters | — | (1) | ||
Other | — | (1) | ||
Total O&R | (0.01) | (4) | ||
Clean Energy Businesses | ||||
Operating revenues less energy costs | 0.13 | 43 | Primarily reflects higher revenue from renewable and sustainable electric production projects of | |
Operations and maintenance expenses | (0.10) | (33) | Primarily reflects an increase in operating expenses from renewable and sustainable electric production | |
Net interest expense | 0.33 | 112 | Primarily reflects lower unrealized losses on interest rate swaps in the 2021 period. | |
HLBV effects | 0.04 | 12 | Primarily reflects lower losses from tax equity projects in the 2021 period. | |
Other | (0.02) | (3) | Primarily reflects lower income attributable to non-controlling interest of | |
Total Clean Energy Businesses | 0.38 | 131 | ||
Con Edison Transmission | (0.39) | (136) | Primarily reflects the impairment loss related to the investment in Stagecoach of | |
Other, including parent company expenses | (0.02) | (6) | Primarily reflects lower consolidated state income tax benefits. | |
Total Reported (GAAP basis) | ||||
Impairment loss related to investment in Stagecoach | 0.35 | 120 | ||
HLBV effects of the Clean Energy Businesses | (0.04) | (12) | ||
Net mark-to-market effects of the Clean Energy Businesses | (0.32) | (112) | Primarily reflects unrealized gains on interest rate swaps. | |
Total Adjusted (non-GAAP basis) | ||||
a. Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison's results of operations. | ||||
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SOURCE Consolidated Edison, Inc.
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