Eversource Energy (NYSE: ES) today reported earnings of $260.4
million, or $0.82 per share, in the third quarter of 2017, compared
with earnings of $265.3 million, or $0.83 per share, in the third
quarter of 2016. In the first nine months of 2017, Eversource
Energy earned $750.6 million, or $2.36 per share, compared with
earnings of $713.1 million, or $2.24 per share, in the first nine
months of 2016.
The company also today reiterated its 2017 earnings per share
guidance of $3.05 to $3.20, as well as its long-term EPS growth
projection of 5 to 7 percent per year. Jim Judge, Eversource Energy
chairman, president and chief executive officer, said the company
has recorded solid financial and operating results, despite much
milder summer temperatures in 2017, compared with 2016. Third
quarter 2017 cooling degree days in Boston were down nearly 34
percent from 2016 levels and nearly 8 percent below average.
“Mild weather reduced both first quarter and third quarter
energy use in New England this year,” Judge said. “But while
weather patterns are transitory, our commitment on behalf of our
customers is not. We continue to execute successfully on our many
initiatives to support the environmental and energy cost reduction
goals in the states we serve.”
Judge noted significant progress on Eversource Energy’s Northern
Pass Transmission (NPT) project in recent months, including the
receipt of a favorable final Environmental Impact Statement from
the U.S. Department of Energy; the issuance of a positive draft
Record of Decision from the U.S. Forest Service; and good overall
progress before the New Hampshire Site Evaluation Committee.
“We are making an exceptionally strong case before state and
federal regulators as to why NPT is the right project at the right
time for a region that is heavily focused on lowering both energy
costs and carbon emissions,” Judge said. “Testimony from our
witnesses has strongly supported the billions of dollars of
benefits our project will bring to New Hampshire in the years
ahead.”
Electric Transmission
Eversource Energy’s transmission segment earned $99 million in
the third quarter of 2017 and $289.6 million in the first nine
months of 2017, compared with earnings of $88.4 million in the
third quarter of 2016 and $266.6 million in the first nine months
of 2016. The improved third quarter and year-to-date results were
primarily due to an increased level of investment in Eversource
Energy’s transmission system.
Electric Distribution and
Generation
Eversource Energy’s electric distribution and generation segment
earned $157.4 million in the third quarter of 2017 and $393.4
million in the first nine months of 2017, compared with earnings of
$170.1 million in the third quarter of 2016 and $381.3 million in
the first nine months of 2016. Lower third-quarter results were
primarily due to the significant impact on sales of milder summer
weather. Improved year-to-date results primarily reflect lower
operations and maintenance expense, partially offset by higher
depreciation and interest expense.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment had a net
loss of $6.2 million in the third quarter of 2017 and earnings of
$49.1 million in the first nine months of 2017, compared with a net
loss of $7 million in the third quarter of 2016 and earnings of
$51.9 million in the first nine months of 2016. Improved third
quarter results in 2017 were due primarily to lower non-tracked
operations and maintenance expense, while lower year-to-date
results reflect higher operations and maintenance expense, higher
depreciation expense and a decline in demand revenues due to lower
peak usage in 2017 among Connecticut natural gas customers.
Parent and Other Companies
Eversource Energy parent and other companies earned $10.2
million in the third quarter of 2017 and $18.5 million in the first
nine months of 2017, compared with $13.8 million in the third
quarter of 2016 and $13.3 million in the first nine months of 2016.
Lower third-quarter results in 2017 were due primarily to higher
interest expense, while higher year-to-date results reflect in part
second quarter gains in 2017 from Eversource Energy’s long-time
investment in a renewable energy fund.
The following table reconciles 2017 and 2016 third quarter and
first nine months earnings per share:
Third Quarter
First Nine Months
2016
Reported EPS $0.83
$2.24 Higher transmission earnings in
2017 0.03 0.07
Lower non-tracked O&M in 2017 0.02
0.06 Lower retail electric revenues in 2017
(0.04) --- Higher
property tax, depreciation and
interest expense in 2017
(0.03)
(0.07)
All other, net, including higher Other Income
0.01 0.06
2017
Reported EPS $0.82
$2.36
Financial results for the third quarter and first nine months of
2017 and 2016 are noted below:
Three months ended:(in millions,
except EPS)
September 30,2017
September 30,2016
Increase/(Decrease)
2017 EPS1
Electric Distribution/Generation $157.4
$170.1 $(12.7 ) $0.50
Electric Transmission 99.0
88.4 10.6 0.31
Natural Gas Distribution (6.2 )
(7.0 ) 0.8 (0.02 ) Eversource
Parent and Other Companies 10.2
13.8 (3.6 ) 0.03
Reported Earnings $260.4
$265.3 $(4.9 )
$0.82
Nine months ended:(in millions,
except EPS)
September 30,2017
September 30,2016
Increase/(Decrease)
2017 EPS1
Electric Distribution/Generation $393.4
$381.3 $12.1 $1.24 Electric
Transmission 289.6 266.6
23.0 0.91 Natural Gas Distribution
49.1 51.9 (2.8 )
0.15 Eversource Parent and Other Companies 18.5
13.3 5.2 0.06
Reported Earnings $750.6
$713.1 $37.5
$2.36
Retail sales data:
Three months ended: September 30,
2017 September 30, 2016 %
Change Electric Distribution (Gwh)
Traditional
7,545 8,131 (7.2%) Decoupled
6,551 7,213 (9.2%)
Total
Electric Distribution 14,096
15,344 (8.1%)
Natural Gas
Distribution (MMcf)
Traditional 5,550
5,270 5.3% Decoupled and Special Contracts
5,975 5,653 5.7%
Total
Natural Gas Distribution 11,525
10,923 5.5%
Nine months ended:
September 30, 2017 September 30, 2016
% Change
Electric Distribution (Gwh)
Traditional 21,040
21,731 (3.2%) Decoupled
18,391 19,235 (4.4%)
Total Electric
Distribution 39,431
40,966 (3.7%)
Natural Gas
Distribution (MMcf)
Traditional 32,233
31,570 2.1% Decoupled and Special Contracts
37,453 36,537 2.5%
Total
Natural Gas Distribution 69,686
68,107 2.3%
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. Eversource Energy is recognized as
the top U.S. utility for its energy efficiency programs by the
sustainability advocacy organization Ceres.
Note: Eversource Energy will webcast a
conference call with senior management on November 2, 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 third quarter and first nine
months 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 Energy 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 Energy’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 Energy’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 Eversource Energy’s website at
www.eversource.com and 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 September
30, 2017 As of December 31, 2016
ASSETS
Current Assets: Cash and Cash Equivalents $ 125,761 $ 30,251
Receivables, Net 919,959 847,301 Unbilled Revenues 146,634 168,490
Fuel, Materials, Supplies and Inventory 305,035 328,721 Regulatory
Assets 746,142 887,625 Prepayments and Other Current Assets 159,939
215,284 Total Current Assets 2,403,470
2,477,672 Property, Plant and Equipment, Net
22,537,304 21,350,510 Deferred Debits and
Other Assets: Regulatory Assets 3,505,901 3,638,688 Goodwill
3,519,401 3,519,401 Marketable Securities 570,255 544,642 Other
Long-Term Assets 627,289 522,260 Total Deferred
Debits and Other Assets 8,222,846 8,224,991
Total Assets $ 33,163,620 $ 32,053,173
LIABILITIES AND
CAPITALIZATION
Current Liabilities: Notes Payable $ 18,238 $ 1,148,500 Long-Term
Debt – Current Portion 957,697 773,883 Accounts Payable 794,195
884,521 Obligations to Third Party Suppliers 149,789 122,806
Regulatory Liabilities 170,215 146,787 Other Current Liabilities
530,297 562,108 Total Current Liabilities 2,620,431
3,638,605 Deferred Credits and Other
Liabilities: Accumulated Deferred Income Taxes 6,001,589 5,607,207
Regulatory Liabilities 700,207 702,255 Derivative Liabilities
391,910 413,676 Accrued Pension and SERP 946,629 1,141,514 Other
Long-Term Liabilities 881,056 853,260 Total Deferred
Credits and Other Liabilities 8,921,391 8,717,912
Capitalization: Long-Term Debt 10,468,193 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 6,235,846 6,250,224 Retained Earnings 3,474,185
3,175,171 Accumulated Other Comprehensive Loss (63,615 ) (65,282 )
Treasury Stock (317,771 ) (317,771 ) Common Shareholders' Equity
10,998,037 10,711,734 Total Capitalization 21,621,798
19,696,656 Total Liabilities and
Capitalization $ 33,163,620 $ 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 September
30, For the Nine Months Ended September 30,
(Thousands of Dollars, Except Share Information)
2017 2016 2017 2016
Operating Revenues $ 1,988,512 $ 2,039,706 $
5,856,458 $ 5,862,525 Operating Expenses: Purchased
Power, Fuel and Transmission 651,776 665,810 1,955,129 2,001,929
Operations and Maintenance 300,421 324,734 933,400 965,584
Depreciation 194,466 181,288 571,152 531,781 Amortization of
Regulatory Assets, Net 41,848 43,942 58,058 56,223 Energy
Efficiency Programs 129,205 149,121 391,761 405,962 Taxes Other
Than Income Taxes 168,193 164,942 479,648
479,219 Total Operating Expenses 1,485,909 1,529,837
4,389,148 4,440,698 Operating Income 502,603 509,869
1,467,310 1,421,827 Interest Expense 108,719 99,865 319,477 298,568
Other Income, Net 21,184 13,641 56,304 23,689
Income Before Income Tax Expense 415,068 423,645 1,204,137
1,146,948 Income Tax Expense 152,818 156,446 447,921
428,186 Net Income 262,250 267,199 756,216 718,762 Net
Income Attributable to Noncontrolling Interests 1,880 1,880
5,639 5,639 Net Income Attributable to Common
Shareholders $ 260,370 $ 265,319 $ 750,577 $
713,123 Basic and Diluted Earnings Per Common Share $ 0.82
$ 0.83 $ 2.36 $ 2.24 Dividends Declared
Per Common Share $ 0.48 $ 0.45 $ 1.43 $ 1.34
Weighted Average Common Shares Outstanding: Basic
317,393,029 317,787,836 317,415,848
317,696,823 Diluted 317,949,396 318,577,079
318,007,042 318,511,609
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 Nine Months Ended September 30,
(Thousands of Dollars) 2017 2016
Operating Activities: Net Income $ 756,216 $ 718,762
Adjustments to Reconcile Net Income to Net Cash Flows Provided by
Operating Activities: Depreciation 571,152 531,781 Deferred Income
Taxes 374,863 301,413 Pension, SERP and PBOP Expense, Net 16,891
31,627 Pension and PBOP Contributions (197,900 ) (121,854 )
Regulatory Overrecoveries, Net 185,952 152,808 Amortization of
Regulatory Assets, Net 58,058 56,223 Other
(148,741
) (27,671 ) Changes in Current Assets and Liabilities: Receivables
and Unbilled Revenues, Net (107,473 ) (191,454 ) Fuel, Materials,
Supplies and Inventory 23,686 25,425 Taxes Receivable/Accrued, Net
88,856 347,898 Accounts Payable (96,551 ) (121,513 ) Other Current
Assets and Liabilities, Net (32,874 ) (53,077 ) Net Cash Flows
Provided by Operating Activities
1,492,135
1,650,368 Investing Activities: Investments in
Property, Plant and Equipment (1,642,280 ) (1,359,171 ) Proceeds
from Sales of Marketable Securities
520,664
444,209 Purchases of Marketable Securities
(506,302
) (437,197 ) Other Investing Activities
(10,177
) (9,463 ) Net Cash Flows Used in Investing Activities
(1,638,095
) (1,361,622 ) Financing Activities: Cash Dividends on
Common Shares (451,562 ) (423,471 ) Cash Dividends on Preferred
Stock (5,639 ) (5,639 ) Decrease in Notes Payable (231,500 )
(426,453 ) Issuance of Long-Term Debt 1,250,000 800,000 Retirements
of Long-Term Debt (320,000 ) (200,000 ) Other Financing Activities
171 (17,074 ) Net Cash Flows Provided by/(Used in) Financing
Activities 241,470 (272,637 ) Net Increase in Cash and Cash
Equivalents 95,510 16,109 Cash and Cash Equivalents - Beginning of
Period 30,251 23,947 Cash and Cash Equivalents - End
of Period $ 125,761 $ 40,056
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/20171101006794/en/
Eversource EnergyJeffrey R. Kotkin, 860-665-5154
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