Eversource Energy (NYSE: ES) today reported earnings of $265.3
million, or $0.83 per share, in the third quarter of 2016, compared
with earnings of $235.9 million, or $0.74 per share, in the third
quarter of 2015. In the first nine months of 2016, Eversource
Energy earned $713.1 million, or $2.24 per share, compared with
earnings of $696.7 million, or $2.19 per share, in the first nine
months of 2015.
“We look forward to completing a successful 2016,” said Jim
Judge, Eversource president and chief executive officer. “Our
earnings are on track to achieve our full-year guidance of
$2.90-$3.05 per share and we continue to be confident in our
long-term earnings and dividend growth rate of 5-7 percent.
Additionally, our service reliability levels, despite the challenge
of a hot summer and increased storm activity, continue to place us
in the upper tier of utilities.”
Electric Transmission
Eversource Energy’s transmission segment earned $88.4 million in
the third quarter of 2016 and $266.6 million in the first nine
months of 2016, compared with earnings of $78 million in the third
quarter of 2015 and $225 million in the first nine months of 2015.
The improved results for both periods were primarily due to an
increased level of investment in Eversource Energy’s transmission
system, as well as the absence in 2016 of a $12.4 million
first-quarter 2015 charge related to an order issued by the Federal
Energy Regulatory Commission concerning the return on equity
allowed New England transmission owners.
Electric Distribution and
Generation
Eversource Energy’s electric distribution and generation segment
earned $170.1 million in the third quarter of 2016 and $381.3
million in the first nine months of 2016, compared with earnings of
$167.3 million in the third quarter of 2015 and $418.7 million in
the first nine months of 2015. Improved third quarter results
primarily reflect higher retail revenues, which were partially
offset by higher depreciation and property taxes resulting from
increased investment in Eversource’s electric distribution systems.
The lower year-to-date results primarily reflect the absence in
2016 of the benefits associated with resolving several regulatory
issues at NSTAR Electric in the first quarter of 2015.
The third quarter earnings of Eversource Energy’s electric
utility subsidiaries are noted below in millions, net of preferred
dividends:
2016
2015 CL&P $85.2
$78.8 NSTAR Electric
$116.7 $118.1 PSNH
$38.5 $32.5 WMECO
$16.0 $15.0
Earnings of Eversource Energy’s electric utility subsidiaries
for the first nine months are noted below in millions, net of
preferred dividends:
2016
2015 CL&P $252.4
$224.0 NSTAR Electric
$238.4 $282.7 PSNH
$105.8 $92.5 WMECO
$46.1 $42.4
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment had a loss
of $7 million in the third quarter of 2016 and earnings of $51.9
million in the first nine months of 2016, compared with a loss of
$3.5 million in the third quarter of 2015 and earnings of $57.5
million in the first nine months of 2015. Lower third quarter
results were due primarily to a higher effective tax rate in 2016.
Lower nine-month results in 2016 were due primarily to the impact
on firm sales of a much milder winter in 2016.
Parent and other companies
Eversource Energy parent and other companies earned $13.8
million in the third quarter of 2016 and $13.3 million in the first
nine months of 2016, compared with a net loss of $5.9 million in
the third quarter of 2015 and a net loss $4.5 million in the first
nine months of 2015. Improved third quarter and year-to-date
results were due primarily to a lower effective tax rate and the
absence in 2016 of integration costs. Those impacts were partially
offset by higher interest costs.
The following table reconciles 2016 and 2015 third quarter and
first nine months earnings per share:
Third Quarter Nine Months
2015 Reported EPS
$0.74
$2.19 Higher transmission
earnings in 2016 $0.04
$0.14
Higher retail electric revenues and generation
results in 2016
$0.03
$0.02
Lower firm natural gas sales in
2016 ---
($0.03 ) Lower non-tracked
O&M in 2016 $0.02
$0.02
Higher property tax, depreciation, and
amortization expense in 2016
($0.02
)
($0.05
)
Higher interest expense
($0.01 ) ($0.03 )
Lower effective tax rate
$0.02 ---
Other $0.01
($0.02 )
2016
Reported EPS $0.83
$2.24
Financial results for the third quarter and first nine months of
2016 and 2015 are noted below:
Three months ended:
(in millions, except EPS)
September 30,2016
September 30,2015
Increase/(Decrease)
2016 EPS1
Electric Distribution/Generation $170.1
$167.3 $2.8
$0.53 Natural Gas
Distribution ($7.0 )
($3.5 ) ($3.5 ) ($0.02 )
Electric Transmission $88.4
$78.0 $10.4
$0.28 Eversource Parent and
Other Companies $13.8
($5.9 ) $19.7
$0.04
Reported Earnings/EPS
$265.3
$235.9 $29.4
$0.83
Nine months ended:
(in millions, except EPS)
September 30,2016
September 30,2015
Increase/(Decrease)
2016 EPS1
Electric Distribution/Generation
$381.3
$418.7
($37.4
)
$1.20
Natural Gas Distribution $51.9
$57.5 ($5.6 )
$0.16 Electric Transmission $266.6
$225.0 $41.6
$0.84
Eversource Parent and Other Companies
$13.3
($4.5
)
$17.8
$0.04
Reported Earnings/EPS
$713.1
$696.7
$16.4
$2.24
Retail sales data:
Three months ended:
September 30, 2016
September 30, 2015
% Change
Electric Distribution (Gwh)
Traditional 8,131
8,136 (0.01 %) Decoupled
7,213 7,070
2.0 %
Total Electric Distribution
15,344 15,206 0.9
%
Natural Gas
Distribution (mmcf)
Traditional
5,270 5,449
(3.3 %) Decoupled and Special Contracts
5,653 5,688 (0.6 %)
Total Natural Gas Distribution
10,923 11,137 (1.9 %)
Nine months ended:
September 30, 2016
September 30, 2015
% Change
Electric Distribution (Gwh)
Traditional 21,731 22,309
(2.6 %) Decoupled 19,235
19,865 (3.2 %)
Total
Electric Distribution 40,966
42,174 (2.9 %)
Natural Gas Distribution (mmcf)
Traditional 31,570 36,355
(13.2 %) Decoupled and Special Contracts
36,537 42,134
(13.3 %)
Total Natural Gas Distribution
68,107 78,489
(13.2 %)
Eversource Energy has approximately 317 million common shares
outstanding. It operates New England’s largest energy delivery
system, serving approximately 3.6 million customers in Connecticut,
Massachusetts and New Hampshire.
Note: Eversource Energy will webcast a
conference call with senior management on November 2, 2016,
beginning at 9 a.m. Eastern Time. The webcast and associated slides
can be accessed through Eversource’s website at
www.eversource.com.
1 All per share amounts in this news release are reported on a
diluted basis. The only common equity securities that are publicly
traded are common shares of Eversource Energy. The earnings and EPS
of each business do not represent a direct legal interest in the
assets and liabilities allocated to such business, but rather
represent a direct interest in Eversource Energy's assets and
liabilities as a whole. EPS by business is a non-GAAP (not
determined using generally accepted accounting principles) measure
that is calculated by dividing the net income or loss attributable
to controlling interests of each business by the weighted average
diluted Eversource parent common shares outstanding for the period.
Management uses this non-GAAP financial measure to evaluate
earnings results, provide details of earnings results by business,
and more fully compare and explain our third quarter and
year-to-date 2016 and 2015 results. Management believes that this
measurement is useful to investors to evaluate the actual and
projected financial performance and contribution of Eversource
Energy’s businesses. Non-GAAP financial measures should not be
considered as alternatives to Eversource consolidated net income
attributable to controlling interests or EPS determined in
accordance with GAAP as indicators of Eversource Energy’s operating
performance.
This news release includes statements concerning Eversource
Energy’s expectations, beliefs, plans, objectives, goals,
strategies, assumptions of future events, future financial
performance or growth and other statements that are not historical
facts. These statements are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. In
some cases, readers can identify these forward-looking statements
through the use of words or phrases such as “estimate, “expect,”
“anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,”
“should,” “could” and other similar expressions. Forward-looking
statements involve risks and uncertainties that may cause actual
results or outcomes to differ materially from those included in the
forward-looking statements. Factors that may cause actual results
to differ materially from those included in the forward-looking
statements include, but are not limited to, cyber breaches, acts of
war or terrorism, or grid disturbances; actions or inaction of
local, state and federal regulatory, public policy and taxing
bodies; changes in business conditions, which could include
disruptive technology related to Eversource’s current or future
business model; changes in economic conditions, including impact on
interest rates, tax policies, and customer demand and payment
ability; fluctuations in weather patterns; changes in laws,
regulations or regulatory policy; changes in levels or timing of
capital expenditures; disruptions in the capital markets or other
events that make Eversource’s access to necessary capital more
difficult or costly; developments in legal or public policy
doctrines; technological developments; changes in accounting
standards and financial reporting regulations; actions of rating
agencies; and other presently unknown or unforeseen factors.
Other risk factors are detailed in Eversource’s reports filed
with the Securities and Exchange Commission (SEC) and updated as
necessary, and are available on the SEC’s website at www.sec.gov.
All such factors are difficult to predict and contain uncertainties
that may materially affect Eversource Energy’s actual results. You
should not place undue reliance on the forward-looking statements;
each speaks only as of the date on which such statement is made,
and Eversource Energy undertakes no obligation to update any
forward-looking statement or statements to reflect events or
circumstances after the date on which such statement is made or to
reflect the occurrence of unanticipated events.
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars) September 30, 2016
December 31, 2015
ASSETS
Current Assets: Cash and Cash Equivalents $ 40,056 $ 23,947
Receivables, Net 963,279 775,480 Unbilled Revenues 187,749 202,647
Taxes Receivable 4,527 305,359 Fuel, Materials, Supplies and
Inventory 311,051 336,476 Regulatory Assets 752,378 845,843
Prepayments and Other Current Assets 155,612 129,034
Total Current Assets 2,414,652 2,618,786
Property, Plant and Equipment, Net 20,807,943 19,892,441
Deferred Debits and Other Assets: Regulatory Assets
3,469,879 3,737,960 Goodwill 3,519,401 3,519,401 Marketable
Securities 525,809 516,478 Other Long-Term Assets 344,653
295,243 Total Deferred Debits and Other Assets 7,859,742
8,069,082 Total Assets $ 31,082,337 $
30,580,309
LIABILITIES AND
CAPITALIZATION
Current Liabilities: Notes Payable $ 734,500 $ 1,160,953 Long-Term
Debt - Current Portion 373,883 228,883 Accounts Payable 679,505
813,646 Obligations to Third Party Suppliers 166,845 128,564
Regulatory Liabilities 160,442 107,759 Other Current Liabilities
526,853 549,985 Total Current Liabilities 2,642,028
2,989,790 Deferred Credits and Other
Liabilities: Accumulated Deferred Income Taxes 5,442,856 5,147,678
Regulatory Liabilities 550,162 513,595 Derivative Liabilities
427,382 337,102 Accrued Pension, SERP and PBOP 1,116,240 1,407,288
Other Long-Term Liabilities 875,589 871,499 Total
Deferred Credits and Other Liabilities 8,412,229 8,277,162
Capitalization: Long-Term Debt 9,235,128
8,805,574 Noncontrolling Interest - Preferred Stock
of Subsidiaries 155,568 155,568 Equity: Common
Shareholders' Equity: Common Shares 1,669,392 1,669,313 Capital
Surplus, Paid In 6,256,580 6,262,368 Retained Earnings 3,087,006
2,797,355 Accumulated Other Comprehensive Loss (65,617 ) (66,844 )
Treasury Stock (309,977 ) (309,977 ) Common Shareholders' Equity
10,637,384 10,352,215 Total Capitalization 20,028,080
19,313,357 Total Liabilities and
Capitalization $ 31,082,337 $ 30,580,309
The data contained in this report is preliminary and is
unaudited. This report is being submitted for the sole purpose of
providing information to present shareholders about Eversource
Energy and Subsidiaries and is not a representation, prospectus, or
intended for use in connection with any purchase or sale of
securities.
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited)
For the Three Months Ended September 30, For the Nine Months
Ended September 30, (Thousands of Dollars, Except Share
Information) 2016 2015
2016 2015 Operating
Revenues $ 2,039,706 $ 1,933,105 $ 5,862,525 $
6,263,597 Operating Expenses: Purchased Power, Fuel and
Transmission 665,810 702,640 2,001,929 2,549,807 Operations and
Maintenance 324,734 327,283 965,584 977,306 Depreciation 181,288
167,884 531,781 495,389 Amortization of Regulatory
Assets/(Liabilities), Net 43,942 (16,851 ) 56,223 42,587 Energy
Efficiency Programs 149,121 132,107 405,962 380,559 Taxes Other
Than Income Taxes 164,942 150,804 479,219
439,221 Total Operating Expenses 1,529,837 1,463,867
4,440,698 4,884,869 Operating Income 509,869 469,238
1,421,827 1,378,728 Interest Expense 99,865 92,534 298,568 279,635
Other Income, Net 13,641 5,241 23,689 23,866
Income Before Income Tax Expense 423,645 381,945 1,146,948
1,122,959 Income Tax Expense 156,446 144,146 428,186
420,640 Net Income 267,199 237,799 718,762 702,319 Net
Income Attributable to Noncontrolling Interests 1,880 1,879
5,639 5,639 Net Income Attributable to Common
Shareholders $ 265,319 $ 235,920 $ 713,123 $
696,680 Basic Earnings Per Common Share $ 0.83 $ 0.74
$ 2.24 $ 2.20 Diluted Earnings Per Common
Share $ 0.83 $ 0.74 $ 2.24 $ 2.19
Dividends Declared Per Common Share $ 0.45 $ 0.42 $
1.34 $ 1.25 Weighted Average Common Shares
Outstanding: Basic 317,787,836 317,452,212
317,696,823 317,296,107 Diluted 318,577,079
318,405,269 318,511,609 318,396,042
EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
For the Nine Months Ended September 30, (Thousands of
Dollars) 2016 2015
Operating Activities: Net Income $ 718,762 $ 702,319 Adjustments to
Reconcile Net Income to Net Cash Flows Provided by Operating
Activities: Depreciation 531,781 495,389 Deferred Income Taxes
301,413 153,353 Pension, SERP and PBOP Expense 31,627 71,802
Pension and PBOP Contributions (121,854 ) (162,880 ) Regulatory
Overrecoveries, Net 152,808 31,874 Amortization of Regulatory
Assets, Net 56,223 42,587 Other (27,671 ) (39,822 ) Changes in
Current Assets and Liabilities: Receivables and Unbilled Revenues,
Net (191,454 ) (148,442 ) Fuel, Materials, Supplies and Inventory
25,425 47,380 Taxes Receivable/Accrued, Net 347,898 383,047
Accounts Payable (121,513 ) (233,660 ) Other Current Assets and
Liabilities, Net (53,077 ) 8,370 Net Cash Flows Provided by
Operating Activities 1,650,368 1,351,317
Investing Activities: Investments in Property, Plant and Equipment
(1,359,171 ) (1,177,285 ) Proceeds from Sales of Marketable
Securities 444,209 556,582 Purchases of Marketable Securities
(437,197 ) (535,044 ) Other Investing Activities (9,463 ) (2,769 )
Net Cash Flows Used in Investing Activities (1,361,622 ) (1,158,516
) Financing Activities: Cash Dividends on Common Shares
(423,471 ) (397,363 ) Cash Dividends on Preferred Stock (5,639 )
(5,639 ) Decrease in Notes Payable (426,453 ) (387,575 ) Issuance
of Long-Term Debt 800,000 825,000 Retirements of Long-Term Debt
(200,000 ) (216,700 ) Other Financing Activities (17,074 ) (13,446
) Net Cash Flows Used in Financing Activities (272,637 ) (195,723 )
Net Increase/(Decrease) in Cash and Cash Equivalents 16,109 (2,922
) Cash and Cash Equivalents - Beginning of Period 23,947
38,703 Cash and Cash Equivalents - End of Period $ 40,056
$ 35,781
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161101006716/en/
Eversource EnergyJeffrey R. Kotkin, 860-665-5154
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