May 7, 2014
Pepco Holdings, Inc. (NYSE: POM) reported first quarter 2014 earnings from continuing operations.
“Last week (April 30th) we announced plans to merge with Exelon, with the goal of creating a stronger combined company that is better positioned to deliver value to our customers,” said Joseph M. Rigby, Chairman, President and Chief Executive Officer. “As we move forward with the approval process, we remain focused on continued improvement in reliability and customer satisfaction through ongoing investment in our infrastructure. The significant investments we have made in the electric system have resulted in a more resilient electric grid and the increase in earnings in the first quarter of 2014 reflects the impact of these investments.”
Pepco Holdings’ GAAP net income from continuing operations for the three months ended March 31, 2014 was $75 million or 30 cents per share, as compared to a net loss of $111 million or 47 cents per share for the same period in 2013. There were no adjustments between GAAP earnings and ongoing earnings for the first quarter of 2014. Excluding items that we believe are not representative of ongoing business operations, adjusted net income from continuing operations for the first quarter of 2013 would have been $56 million or 24 cents per share.
The primary drivers of the increase in net income from continuing operations for the first quarter 2014, as compared to the adjusted net income from continuing operations (Non-GAAP) for the 2013 period, were higher electric distribution revenue (primarily due to higher rates driven by increased infrastructure investment), lower operation and maintenance expense and higher weather related sales in our service territories that do not have revenue decoupled from sales. The impact of favorable income tax adjustments in 2013 and higher depreciation expense partially offset the net income increase.
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