Eversource Energy (NYSE: ES) today reported first quarter 2017
earnings of $259.5 million, or $0.82 per share, compared with
earnings of $244.2 million, or $0.77 per share, in the first
quarter of 2016.
Also today, the Eversource Energy Board of Trustees declared a
regular quarterly dividend of $0.475 per share, payable June 30,
2017 to shareholders of record as of May 31, 2017. Additionally,
the company today reaffirmed its 2017 earnings per share (EPS)
guidance of $3.05 to $3.20 and its projected 5 to 7 percent
long-term EPS growth rate.
“We continue to invest significantly to provide a high level of
service to our customers, as well as help our region meet its
important energy and environmental policy goals,” said Jim Judge,
Eversource Energy chairman, president and chief executive
officer.
Electric Transmission
Eversource Energy’s transmission segment earned $94.2 million in
the first quarter of 2017, compared with earnings of $85.7 million
in the first quarter of 2016. Higher transmission earnings were
primarily due to Eversource Energy’s additional investment in its
electric transmission system.
Electric Distribution and
Generation
Eversource Energy’s electric distribution and generation segment
earned $114.1 million in the first quarter of 2017, compared with
earnings of $108.4 million in the first quarter of 2016. Improved
results primarily reflect higher distribution revenues and lower
property tax expense, partially offset by higher storm restoration
costs and higher depreciation expense.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned
$50.8 million in the first quarter of 2017, compared with earnings
of $50.9 million in the first quarter of 2016. Stronger sales were
offset by higher depreciation, property tax and interest
expense.
Parent and other companies
Parent and other companies earned $0.4 million in the first
quarter of 2017, compared with a loss of $0.8 million in the first
quarter of 2016.
The following table reconciles consolidated earnings per share
for the first quarters of 2017 and 2016:
First Quarter 2016
Reported EPS $0.77
Higher transmission earnings in 2017 $0.03
Higher electric and natural gas revenues in
2017 $0.02
2017 Reported
EPS $0.82
Financial results for the first quarters of 2017 and 2016 for
Eversource Energy’s business segments and parent and other
companies are noted below:
Three months ended:
(in millions, except EPS)
March 31, 2017
March 31, 2016
Increase/(Decrease)
2017 EPS 1
Electric Distribution/Generation $114 .1
$108 .4 $5 .7 $0 .36 Electric
Transmission $94 .2 $85 .7
$8 .5 $0 .30 Natural Gas Distribution
$50 .8 $50 .9 ($0 .1)
$0 .16 Parent and Other Companies $0 .4
($0 .8) $1 .2 ---
Reported Earnings $259 .5
$244 .2 $15 .3
$0 .82
Retail sales data:
March 31, 2017
March 31, 2016
% Change
Electric Distribution
Gwh for three months ended
Traditional
6,971 6,994 (0 .3%)
Decoupled 6,201 6,225 (0
.4%)
Total Electric Distribution 13,172
13,219 (0 .4%)
Natural Gas Distribution
Firm volumes in mmcf for three months
ended
Traditional 18,905 17,985
5 .1% Decoupled and Special Contracts 22,241
21,363 4 .1%
Total Natural Gas
Distribution 41,146
39,348 4 .6%
Eversource Energy has approximately 317 million common shares
outstanding. It operates New England’s largest energy delivery
system, serving approximately 3.7 million customers in Connecticut,
Massachusetts and New Hampshire.
Note: Eversource Energy will webcast a conference call with
senior management on May 4, 2017, 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 Energy 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 first quarter 2017 and 2016
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 many
of which are beyond our control. 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, except as required
by federal securities laws, 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) As of March 31, 2017 As of
December 31, 2016
ASSETS
Current Assets: Cash and Cash Equivalents $ 45,763 $ 30,251
Receivables, Net 879,451 847,301 Unbilled Revenues 166,710 168,490
Fuel, Materials, Supplies and Inventory 361,779 328,721 Regulatory
Assets 875,037 887,625 Prepayments and Other Current Assets 182,659
215,284 Total Current Assets 2,511,399
2,477,672 Property, Plant and Equipment, Net
21,641,898 21,350,510 Deferred Debits and
Other Assets: Regulatory Assets 3,564,700 3,638,688 Goodwill
3,519,401 3,519,401 Marketable Securities 561,585 544,642 Other
Long-Term Assets 556,193 522,260 Total Deferred
Debits and Other Assets 8,201,879 8,224,991
Total Assets $ 32,355,176 $ 32,053,173
LIABILITIES AND
CAPITALIZATION
Current Liabilities: Notes Payable $ 975,500 $ 1,148,500 Long-Term
Debt – Current Portion 773,883 773,883 Accounts Payable 745,856
884,521 Regulatory Liabilities 199,160 146,787 Other Current
Liabilities 639,366 684,914 Total Current Liabilities
3,333,765 3,638,605 Deferred Credits and Other
Liabilities: Accumulated Deferred Income Taxes 5,758,603 5,607,207
Regulatory Liabilities 692,989 702,255 Derivative Liabilities
415,795 413,676 Accrued Pension and SERP 1,077,593 1,141,514 Other
Long-Term Liabilities 848,776 853,260 Total Deferred
Credits and Other Liabilities 8,793,756 8,717,912
Capitalization: Long-Term Debt 9,267,891 8,829,354
Noncontrolling Interest - Preferred Stock of
Subsidiaries 155,568 155,568 Equity: Common
Shareholders' Equity: Common Shares 1,669,392 1,669,392 Capital
Surplus, Paid In 6,230,608 6,250,224 Retained Earnings 3,284,108
3,175,171 Accumulated Other Comprehensive Loss (62,141 ) (65,282 )
Treasury Stock (317,771 ) (317,771 ) Common Shareholders' Equity
10,804,196 10,711,734 Total Capitalization 20,227,655
19,696,656 Total Liabilities and
Capitalization $ 32,355,176 $ 32,053,173
The data contained in this report is preliminary and is
unaudited. This report is being submitted for the sole purpose of
providing information to 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 March 31, (Thousands of Dollars, Except Share Information)
2017 2016 Operating
Revenues $ 2,105,135 $ 2,055,635 Operating Expenses:
Purchased Power, Fuel and Transmission 753,649 754,859 Operations
and Maintenance 330,265 320,136 Depreciation 186,805 173,986
Amortization of Regulatory Assets, Net 24,017 20,997 Energy
Efficiency Programs 146,158 137,175 Taxes Other Than Income Taxes
155,222 159,946 Total Operating Expenses 1,596,116
1,567,099 Operating Income 509,019 488,536 Interest Expense 103,429
98,212 Other Income, Net 13,577 2,011 Income Before Income
Tax Expense 419,167 392,335 Income Tax Expense 157,829
146,302 Net Income 261,338 246,033 Net Income Attributable to
Noncontrolling Interests 1,880 1,880 Net Income Attributable
to Common Shareholders $ 259,458 $ 244,153 Basic and
Diluted Earnings Per Common Share $ 0.82 $ 0.77
Dividends Declared Per Common Share $ 0.48 $ 0.45
Weighted Average Common Shares Outstanding: Basic 317,463,151
317,517,141 Diluted 318,124,536 318,481,050
The data contained in this report is preliminary and is
unaudited. This report is being submitted for the sole purpose of
providing information to 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 CASH FLOWS (Unaudited) For the Three
Months Ended March 31, (Thousands of Dollars) 2017
2016 Operating Activities: Net Income $
261,338 $ 246,033 Adjustments to Reconcile Net Income to Net Cash
Flows Provided by Operating Activities: Depreciation 186,805
173,986 Deferred Income Taxes 141,398 141,132 Pension, SERP and
PBOP Expense, Net 5,828 11,583
Pension and PBOP Contributions
(45,700
)
(30,383
)
Regulatory Over/(Under) Recoveries, Net 56,734 (82,772 )
Amortization of Regulatory Assets, Net 24,017 20,997 Other (42,428
) (16,532 ) Changes in Current Assets and Liabilities: Receivables
and Unbilled Revenues, Net (50,251 ) (133,965 ) Fuel, Materials,
Supplies and Inventory (33,058 ) (22,748 ) Taxes
Receivable/Accrued, Net 32,313 279,106 Accounts Payable (57,701 )
(76,317 ) Other Current Assets and Liabilities, Net (42,793 )
(10,156 ) Net Cash Flows Provided by Operating Activities 436,502
499,964 Investing Activities: Investments in
Property, Plant and Equipment (523,560 ) (431,472 ) Proceeds from
Sales of Marketable Securities 154,772 136,805 Purchases of
Marketable Securities (149,688 ) (135,427 ) Other Investing
Activities (11,281 ) 5,494 Net Cash Flows Used in Investing
Activities (529,757 ) (424,600 ) Financing Activities: Cash
Dividends on Common Shares (150,521 ) (141,157 ) Cash Dividends on
Preferred Stock (1,880 ) (1,880 ) Decrease in Notes Payable
(173,000 ) (391,453 ) Issuance of Long-Term Debt 600,000 500,000
Retirements of Long-Term Debt (150,000 ) — Other Financing
Activities (15,832 ) (13,855 ) Net Cash Flows Provided by/(Used in)
Financing Activities 108,767 (48,345 ) Net Increase in Cash
and Cash Equivalents 15,512 27,019 Cash and Cash Equivalents -
Beginning of Period 30,251 23,947 Cash and Cash
Equivalents - End of Period $ 45,763 $ 50,966
The data contained in this report is preliminary and is
unaudited. This report is being submitted for the sole purpose of
providing information to 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170503006406/en/
Eversource EnergyJeffrey R. Kotkin, 860-665-5154
Eversource Energy (NYSE:ES)
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