Eversource Energy (NYSE: ES) today reported full-year 2017
earnings of $988 million, or $3.11 per share, compared with 2016
earnings of $942.3 million, or $2.96 per share.
In the fourth quarter of 2017, Eversource Energy earned $237.4
million, or $0.75 per share, compared with earnings of $229.2
million, or $0.72 per share, in the fourth quarter of 2016.
“We were pleased with our 2017 performance, a year our customers
received industry leading levels of reliable service, our employees
achieved record safety performance, and our investors experienced
very solid increases in dividends and earnings,” said Jim Judge,
Eversource Energy chairman, president and chief executive
officer.
2018 and Long-Term Earnings Per Share
(EPS) Guidance
Also today, Eversource Energy projected 2018 earnings of between
$3.20 per share and $3.30 per share and long-term EPS growth
through 2021 of between 5 percent and 7 percent on average, using
2017 earnings of $3.11 per share as the base.
Electric Distribution and
Generation
Eversource Energy’s electric distribution and generation segment
earned $497.4 million for the full year of 2017, compared with
earnings of $462.8 million for the full year of 2016. The segment
earned $104 million in the fourth quarter of 2017, compared with
earnings of $81.5 million in the fourth quarter of 2016. Improved
fourth quarter and full year results were due primarily to a lower
effective tax rate in 2017 and lower non-tracked operations and
maintenance expense in 2017, partially offset by higher
depreciation and property tax expense.
Electric Transmission
Eversource Energy’s transmission segment earned $391.9 million
for the full year 2017, compared with earnings of $370.8 million
for the full year of 2016. It earned $102.3 million in the fourth
quarter of 2017, compared with earnings of $104.2 million in the
fourth quarter of 2016. Higher full-year earnings were due
primarily to an increased level of investment in Eversource Energy
transmission facilities. Lower fourth quarter results in 2017
reflect the impact of a benefit recorded in 2016 related to the
recovery of $27.5 million of pre-tax merger-related costs through
electric transmission rates.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned
$74.6 million for the full year of 2017, compared with earnings of
$77.7 million for the full year of 2016. Fourth quarter natural gas
segment earnings were $25.5 million in 2017, compared with $25.8
million in 2016. Lower results in 2017 were driven primarily by
higher depreciation, operation and maintenance, and property tax
expense, partially offset by higher revenues resulting from colder
fourth quarter weather in 2017. Firm natural gas sales rose 3
percent in 2017, compared with 2016.
Eversource Energy Parent and Other
Companies
Eversource Energy parent and other companies earned $24.1
million for the full year of 2017, compared with $31 million for
the full year of 2016. It earned $5.6 million in the fourth quarter
of 2017, compared with $17.7 million in the fourth quarter of 2016.
Lower fourth quarter results were due primarily to a higher
effective tax rate in 2017.
The following table reconciles 2017 and 2016 fourth quarter and
full-year earnings per share:
Fourth Quarter
Full Year
2016 Reported
EPS $0.72 $2.96
Lower non-tracked O&M in 2017
0.06 0.12 Higher/(lower)
transmission earnings in 2017 (0.01)
0.07 Higher retail electric and generation
results in 2017 0.01 0.01
Higher property tax and depreciation expense in 2017
(0.03) (0.06) Other,
including interest expense --- 0.01
2017 Reported EPS
$0.75 $3.11
Financial results by segment for the fourth quarter and
full-year 2017 and 2016 are noted below:
Three months ended:
(in millions, except EPS)
December 31,2017
December 31,2016
Increase/(Decrease)
2017 EPS1
Electric Distribution/Generation $104.0
$81.5 $22.5 $0.33 Electric Transmission
102.3 104.2 (1.9)
0.32 Natural Gas Distribution 25.5
25.8 (0.3) 0.08 Eversource
Parent and Other Companies 5.6 17.7
(12.1) 0.02
Reported Earnings
$237.4 $229.2
$8.2 $0.75
Full year ended:
(in millions, except EPS)
December 31,2017
December 31,2016
Increase/(Decrease)
2017 EPS1
Electric Distribution/Generation $497.4
$462.8 $34.6 $1.57 Electric
Transmission 391.9 370.8
21.1 1.23 Natural Gas Distribution 74.6
77.7 (3.1) 0.23
Eversource Parent and Other Companies 24.1
31.0 (6.9) 0.08
Reported
Earnings $988.0
$942.3 $45.7 $3.11
Retail sales data:
Three months ended: December 31, 2017
December 31, 2016 %
Change Electric Distribution (Gwh)
Traditional
6,815 6,748 1.0% Decoupled
6,000 5,928 1.2%
Total
Electric Distribution 12,815 12,676
1.1%
Natural Gas Distribution (mmcf)
Traditional
14,725 13,744 7.1%
Decoupled and Special Contracts 16,615
16,191 2.6%
Total Natural Gas Distribution
31,340 29,935 4.7%
Full year ended:
December 31, 2017 December 31, 2016
% Change Electric Distribution (Gwh)
Traditional 27,855 28,479
(2.2%) Decoupled 24,391 25,163
(3.1%)
Total Electric Distribution
52,246 53,642 (2.6%)
Natural
Gas Distribution (mmcf)
Traditional 46,957
45,314 3.6% Decoupled and Special Contracts
54,069 52,728 2.5%
Total Natural Gas Distribution 101,026
98,042 3.0%
Eversource Energy has approximately 317 million common shares
outstanding and operates New England’s largest energy delivery
system. It serves nearly 4 million electric, natural gas and water
customers in Connecticut, Massachusetts and New Hampshire.
Note: Eversource Energy will webcast a conference call
with senior management on February 23, 2018, beginning at 9 a.m.
Eastern Time. The webcast and associated slides can be accessed
through Eversource Energy’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 fourth quarter and full-year
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’s 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 Energy’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 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
CONSOLIDATED BALANCE SHEETS
(Unaudited)
As of December 31, (Thousands of Dollars)
2017 2016
ASSETS
Current Assets: Cash and Cash Equivalents $ 38,165 $ 30,251
Receivables, Net 925,083 847,301 Unbilled Revenues 201,361 168,490
Fuel, Materials, Supplies and Inventory 223,063 328,721 Regulatory
Assets 741,868 887,625 Prepayments and Other Current Assets 138,009
215,284 Assets Held for Sale 219,550 —
Total Current Assets 2,487,099 2,477,672
Property, Plant and Equipment, Net 23,617,463
21,350,510 Deferred Debits and Other
Assets: Regulatory Assets 4,497,447 3,638,688 Goodwill 4,427,266
3,519,401 Marketable Securities 585,419 544,642 Other Long-Term
Assets 605,692 522,260 Total Deferred
Debits and Other Assets 10,115,824 8,224,991
Total Assets $ 36,220,386 $ 32,053,173
LIABILITIES AND
CAPITALIZATION
Current Liabilities: Notes Payable $ 1,088,087 $ 1,148,500
Long-Term Debt – Current Portion 549,631 773,883 Accounts Payable
1,085,034 884,521 Regulatory Liabilities 128,071 146,787 Other
Current Liabilities 738,222 684,914
Total Current Liabilities 3,589,045 3,638,605
Deferred Credits and Other Liabilities: Accumulated
Deferred Income Taxes 3,297,518 5,607,207 Regulatory Liabilities
3,637,273 702,255 Derivative Liabilities 377,257 413,676 Accrued
Pension, SERP and PBOP 1,228,091 1,141,514 Other Long-Term
Liabilities 1,073,501 853,260 Total
Deferred Credits and Other Liabilities 9,613,640
8,717,912 Capitalization: Long-Term Debt
11,775,889 8,829,354
Noncontrolling Interest – Preferred Stock of Subsidiaries
155,570 155,568 Equity: Common
Shareholders’ Equity: Common Shares 1,669,392 1,669,392 Capital
Surplus, Paid In 6,239,940 6,250,224 Retained Earnings 3,561,084
3,175,171 Accumulated Other Comprehensive Loss (66,403 ) (65,282 )
Treasury Stock (317,771 ) (317,771 ) Common
Shareholders’ Equity 11,086,242 10,711,734
Total Capitalization 23,017,701
19,696,656 Total Liabilities and Capitalization $
36,220,386 $ 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 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
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Three Months Ended December 31, (Thousands of
Dollars, Except Share Information) 2017
2016 Operating Revenues $ 1,895,494 $
1,776,604 Operating Expenses: Purchased Power, Fuel and
Transmission 580,142 498,899 Operations and Maintenance 343,747
357,965 Depreciation 202,651 183,685 Amortization of Regulatory
Assets, Net 31,927 15,473 Energy Efficiency Programs 89,074 127,697
Taxes Other Than Income Taxes 197,109 154,853 Total
Operating Expenses 1,444,650 1,338,572 Operating
Income 450,844 438,032 Interest Expense 102,278 102,393 Other
Income, Net 21,704 22,231 Net Income Before Income
Tax Expense 370,270 357,870 Income Tax Expense 130,971
126,811 Net Income 239,299 231,059 Net Income Attributable
to Noncontrolling Interests 1,880 1,880 Net Income
Attributable to Common Shareholders $ 237,419 $ 229,179
Basic and Diluted Earnings Per Common Share $ 0.75 $ 0.72
Weighted Average Common Shares Outstanding: Basic
317,396,842 317,510,251 Diluted 318,105,193
318,282,127
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
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Years Ended December 31, (Thousands of Dollars,
Except Share Information) 2017
2016 2015 Operating
Revenues $ 7,751,952 $ 7,639,129 $ 7,954,827 Operating
Expenses: Purchased Power, Fuel and Transmission 2,535,271
2,500,828 3,086,905 Operations and Maintenance 1,277,147 1,323,549
1,329,289 Depreciation 773,802 715,466 665,856 Amortization of
Regulatory Assets, Net 89,986 71,696 22,339 Energy Efficiency
Programs 480,835 533,659 495,701 Taxes Other Than Income Taxes
676,757 634,072 590,573 Total Operating
Expenses 5,833,798 5,779,270 6,190,663
Operating Income 1,918,154 1,859,859 1,764,164 Interest Expense
421,755 400,961 372,420 Other Income, Net 78,008
45,920 34,227 Income Before Income Tax Expense 1,574,407
1,504,818 1,425,971 Income Tax Expense 578,892
554,997 539,967 Net Income 995,515 949,821 886,004 Net
Income Attributable to Noncontrolling Interests 7,519
7,519 7,519 Net Income Attributable to Common Shareholders $
987,996 $ 942,302 $ 878,485 Basic Earnings per Common Share
$ 3.11 $ 2.97 $ 2.77 Diluted Earnings Per Common Share $
3.11 $ 2.96 $ 2.76 Weighted Average Common Shares
Outstanding: Basic 317,411,097 317,650,180
317,336,881 Diluted 318,031,580 318,454,239
318,432,687
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
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Years Ended December 31, (Thousands of Dollars)
2017 2016 2015
Operating Activities: Net Income $
995,515 $ 949,821 $ 886,004 Adjustments to Reconcile Net Income to
Net Cash Flows Provided by Operating Activities: Depreciation
773,802 715,466 665,856 Deferred Income Taxes 491,630 466,463
491,736 Pension, SERP and PBOP Expense 22,454 39,912 96,017 Pension
and PBOP Contributions (242,800 ) (158,741 ) (162,452 ) Regulatory
(Under)/Over Recoveries, Net (47,935 ) 13,340 (163,287 )
Amortization of Regulatory Assets, Net 89,986 71,696 22,339
Refunds/(Payments) Related to Spent Nuclear Fuel, Net — 59,804
(297,253 ) Other (148,429 ) (77,294 ) (82,219 ) Changes in Current
Assets and Liabilities: Receivables and Unbilled Revenues, Net
(117,155 ) (142,699 ) (39,797 ) Fuel, Materials, Supplies and
Inventory (9,223 ) 7,755 34,112 Taxes Receivable/Accrued, Net
52,284 234,543 30,282 Accounts Payable 56,067 (14,126 ) (91,618 )
Other Current Assets and Liabilities, Net 88,738
9,112 44,031 Net Cash Flows Provided by
Operating Activities 2,004,934 2,175,052
1,433,751 Investing Activities:
Investments in Property, Plant and Equipment (2,348,105 )
(1,976,867 ) (1,724,139 ) Proceeds from Sales of Marketable
Securities 832,903 659,338 799,165 Purchases of Marketable
Securities (810,507 ) (681,272 ) (717,114 ) Acquisition of Aquarion
(877,652 ) — — Payments to Acquire Investments (32,634 ) (188,958 )
(23,353 ) Other Investing Activities 25,521
36,951 6,291 Net Cash Flows Used in Investing
Activities (3,210,474 ) (2,150,808 )
(1,659,150 ) Financing Activities: Cash Dividends on Common
Shares (602,083 ) (564,486 ) (529,791 ) Cash Dividends on Preferred
Stock (7,519 ) (7,519 ) (7,519 ) Increase/(Decrease) in Notes
Payable 72,810 (12,453 ) (242,122 ) Issuance of Long-Term Debt
2,500,000 800,000 1,225,000 Retirements of Long-Term Debt (745,000
) (200,000 ) (216,700 ) Other Financing Activities (4,754 )
(33,482 ) (18,225 ) Net Cash Flows Provided by/(Used
in) Financing Activities 1,213,454 (17,940 )
210,643 Net Increase/(Decrease) in Cash and Cash
Equivalents 7,914 6,304 (14,756 ) Cash and Cash Equivalents –
Beginning of Year 30,251 23,947
38,703 Cash and Cash Equivalents – End of Year $ 38,165
$ 30,251 $ 23,947
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180222006355/en/
Eversource EnergyJeffrey R. Kotkin, 860-665-5154
Eversource Energy (NYSE:ES)
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