This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pepco Holdings' CEO Discusses Q4 2011 Results - Earnings Call Transcript

2011 was a year of significant progress on our key initiatives. While there is still more work to be done, we are pleased that our investments to improve system reliability and customer service are producing tangible results. While our earnings were impacted by our increased spending on systems maintenance and tree trimming, this spending is having a positive effect on reliability and restoration performance. Throughout the year, our Power Delivery business invested nearly $900 million in transmission and distribution infrastructure, including projects focused on improving reliability and installing advanced technology. Investment such as these are important components of our strategy to provide enhanced value to our customers and investors. As seen on Slide 3, GAAP earnings from continuing operations for 2011 were $1.15 per share compared to $0.62 per share in 2010. Excluding special items in 2010, earnings would have been $1.24. Our 2011 earnings include $0.08 per share for mark-to-market losses resulting from economic hedging activities associated with the Retail Energy Supply business of Pepco Energy Services and lower earnings of $0.02 per share associated with the tax law changes in the District of Columbia. The effects of these items was excluded from the 2011 earnings guidance range. Excluding these items, our 2011 earnings from continuing operations would have been $1.25 per share compared to the 2011 guidance range of $1.15 to $1.25 per share. The increase in adjusted earnings per share from continuing operations for 2011 as compared to 2010 was primarily the result of higher transmission and distribution revenue due to higher rates driven from increased investment. Lower interest expense also contributed to the increase in adjusted earnings. Partially offsetting the earnings increases were higher Power Delivery operation and maintenance expense and the favorable income of income tax adjustments in the 2010 period. Later on the call, Tony will address financial results and our operating segment performance in more detail. But first I'll address some topics of interest.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs