Pepco Holdings Inc.
) reported first quarter 2013 earnings from continuing operations
of 24 cents per share, a penny lower than the Zacks Consensus
Estimate. However, earnings were 9.1% higher than the year-ago
number of 22 cents.
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The year-over-year increase in operating earnings was primarily
due to higher electric distribution revenue partially offset by
higher operation and maintenance expenses.
Loss per share, as per GAAP, was $1.82 versus earnings of 28
cents in the first quarter of 2012. The difference between GAAP
and operating earnings during the reported quarter was due to a
charge of $1.64 per share from cross border energy lease and a
charge of 43 cents from certain deferred tax assets and a gain of
1 cent from cross-border energy lease earnings, exclusive
Total revenue at the end of the first quarter was $0.85 billion,
down 31.4% from $1.24 billion in the year-ago period. Quarterly
revenue also fell short of the Zacks Consensus Estimate of $1.32
billion by 35.4%.
The year-over-year decline was primarily due to lower
contribution from Pepco Energy Services which declined 45.5%.
This was offset partially by better performance from Power
Delivery which grew 6.5%.
Highlights of the Release
In first quarter, total electric sales, at Power Delivery,
increased 4.9% to 11,905 gigawatt hours (GWh). The harsh winter
weather in its service territories increased demand for
Total operating expenses at the end of the quarter declined 2.1%
from the comparable year-ago period.
Pepco Holdings continued with its initiatives to implement smart
meters in its service territories. Pepco completed installing 98%
of its smart meters in its District of Columbia service
territory, while Delmarva Power installed and activated smart
meters in its Delaware electric service territory.
Cash and cash equivalents, including restricted cash, were $135
million as of Mar 31, 2013, substantially higher than $35 million
as of Dec 31, 2012.
Long-term debts as of Mar 31, 2013 were $3.89 billion, down 6.9%
from $3.64 billion as of Dec 31, 2012.
Pepco Holdings reaffirmed its 2013 earnings guidance in the range
of $1.05 to $1.20 per share. The guidance assumes normal weather
during the year.
Other Company Releases
) reported earnings of 70 cents per share in the first quarter of
2013, surpassing the Zacks Consensus Estimate by 2 cents.
CMS Energy Corporation
) announced first-quarter 2013 operating earnings of 53 cents per
share, 15.2% above the Zacks Consensus Estimate of 46 cents.
Public Service Enterprise Group Inc.
) reported first quarter 2013 earnings of 85 cents per share, up
14.9% from the Zacks Consensus Estimate of 74 cents.
Pepco Holdings' earnings improved from the prior year, thanks to
its continuous investment in upgrading its infrastructure. A
harsh winter in its service territory also drove demand for
Pepco Holdings still has a few pending rate cases and, since the
outcome of the same is uncertain, visibility on 2013 performance
is low. However, the company was able to marginally increase its
regulated electric and gas customer base from the year-ago
Based in Washington, District of Columbia, Pepco Holdings,
through its two operating divisions, Power Delivery and
Competitive Energy, is engaged in the transmission and
distribution of electricity, as well as delivery and supply of
natural gas. Pepco Holdings currently retains a Zacks Rank