Eversource Energy Reports Full Year 2015 Results
Eversource Energy (NYSE: ES) today reported full-year 2015 earnings of
$878.5 million, or $2.76 per share, compared with full-year 2014
earnings of $819.5 million, or $2.58 per share. Full-year results
included after-tax integration costs of $15.8 million in 2015 and $22.1
million in 2014. Excluding those integration costs, Eversource Energy
earned $894.3 million, or $2.81 per share1, in 2015 and
$841.6 million, or $2.65 per share1, in 2014.
In the fourth quarter of 2015, Eversource Energy earned $181.8 million,
or $0.57 per share, compared with earnings of $221.6 million, or $0.69
per share, in the fourth quarter of 2014. Excluding integration costs,
Eversource Energy earned $189.8 million, or $0.60 per share1,
in the fourth quarter of 2015, compared with earnings of $230.3 million,
or $0.72 per share1, in the fourth quarter of 2014.
“2015 was a very successful year for Eversource Energy,” according to
Thomas J. May, the company’s chairman, president and chief executive
officer. “We invested the most dollars ever in New England’s energy
delivery systems, achieved our best ever level of electric service
reliability, connected record numbers of new natural gas heating
customers, posted very strong financial results, and made significant
progress in addressing the region’s energy infrastructure challenges.”
2016 and Long-Term Earnings Guidance
Also today, Eversource Energy projected 2016 earnings per share (EPS) of
between $2.90 per share and $3.05 per share and long-term EPS growth
through 2019 of between 5 percent and 7 percent, using recurring 2015
earnings of $2.81 per share as the base value. Eversource reduced its
long-term EPS growth rate from the previous 6 percent to 8 percent
primarily due to the impact of the extension of bonus income tax
depreciation through 2019.
Electric Distribution and Generation
Eversource Energy’s electric distribution and generation segment earned
$507.9 million for the full year of 2015, excluding integration costs of
$0.6 million, compared with earnings of $462.4 million for the full year
of 2014. Full year results benefited from higher revenues and lower
operation and maintenance costs, partially offset by higher depreciation
and property tax expense. In the fourth quarter of 2015, the electric
distribution and generation segment earned $88.1 million, compared with
earnings of $113.3 million in the fourth quarter of 2014. Lower fourth
quarter results were due primarily to a higher effective tax rate,
higher depreciation and property tax expense, and the impact of much
warmer than normal weather on unit sales.
Electric Transmission
Eversource Energy’s transmission segment earned $304.5 million for the
full year of 2015, compared with earnings of $295.4 million for the full
year of 2014. The transmission segment earned $79.5 million in the
fourth quarter of 2015, compared with earnings of $88.6 million in the
fourth quarter of 2014. Higher full-year earnings were due to an
increased level of investment in Eversource Energy transmission
facilities and a lower level of net charges related to reviews by the
Federal Energy Regulatory Commission (FERC) of the authorized return on
equity (ROE) for the owners of New England’s electric transmission
system. The fourth quarter of 2014 benefited from a reserve adjustment
related to the FERC ROE review.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned $72.4
million for the full year of 2015, excluding integration costs of $0.2
million, compared with earnings of $72.3 million for the full year of
2014. Fourth quarter natural gas segment earnings were $14.9 million in
2015, compared with $28.1 million in 2014. Lower fourth quarter results
were driven primarily by record warm temperatures in December 2015,
which caused a 16.2 percent decline in fourth quarter natural gas sales,
compared with the fourth quarter of 2014.
Eversource Energy parent and other companies
Excluding integration costs, Eversource Energy parent and other
companies earned $9.5 million for the full year of 2015, compared with
earnings of $11.5 million for the full year of 2014. In the fourth
quarter of 2015, excluding integration costs, Eversource parent and
other companies earned $7.3 million, compared with earnings of $0.3
million in the fourth quarter of 2014.
The following table reconciles 2015 and 2014 fourth quarter and full
year earnings per share:
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Fourth Quarter
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Full Year
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2014
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Reported EPS
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$
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0.69
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$
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2.58
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Higher retail electric revenues in 2015
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$
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0.05
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$
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0.39
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Higher/(lower) transmission earnings in 2015
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($0.03)
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$
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0.03
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Lower firm natural gas sales in 2015
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($0.03)
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($0.01)
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(Higher)/lower non-tracked O&M in 2015
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($0.01)
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$
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0.08
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Higher property tax, depreciation, and
amortization expense in 2015
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($0.05)
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($0.24)
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Other, primarily higher effective tax rate
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($0.05)
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($0.09)
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Lower integration costs in 2015 vs. 2014
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---
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$
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0.02
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2015
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Reported EPS
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$
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0.57
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$
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2.76
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Financial results for the fourth quarter and full-year 2015 and 2014 are
noted below:
Three months ended:
(in millions, except EPS)
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December 31,
2015
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December 31,
2014
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Increase/
(Decrease)
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2015 EPS1
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Electric Distribution/Generation
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$
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88.1
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$
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113.3
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($25.2)
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$
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0.28
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Electric Transmission
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$
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79.5
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$
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88.6
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($9.1)
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$
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0.25
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Natural Gas Distribution
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$
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14.9
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$
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28.1
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($13.2)
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$
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0.05
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Eversource Parent and Other Companies
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$
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7.3
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$
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0.3
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$
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7.0
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$
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0.02
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Earnings, ex. integration costs
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$
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189.8
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$
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230.3
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($40.5)
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$
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0.60
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Integration costs
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($8.0)
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($8.7)
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$
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0.7
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($0.03)
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Reported Earnings
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$
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181.8
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$
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221.6
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($39.8)
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$
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0.57
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Full year ended:
(in millions, except EPS)
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December 31,
2015
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December 31,
2014
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Increase/
(Decrease)
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2015 EPS1
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Electric Distribution/Generation
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$
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507.9
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$
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462.4
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$
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45.5
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$
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1.59
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Electric Transmission
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$
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304.5
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$
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295.4
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$
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9.1
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$
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0.96
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Natural Gas Distribution
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$
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72.4
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$
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72.3
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$
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0.1
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$
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0.23
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Eversource Parent and Other Companies
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$
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9.5
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$
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11.5
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($2.0)
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$
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0.03
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Earnings, ex. integration costs
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$
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894.3
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$
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841.6
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$
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52.7
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$
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2.81
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Integration costs
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($15.8)
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($22.1)
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$
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6.3
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($0.05)
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Reported Earnings
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$
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878.5
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$
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819.5
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$
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59.0
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$
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2.76
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The fourth quarter earnings of Eversource Energy’s electric utility
subsidiaries are noted below in millions, net of preferred dividends:
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2015
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2014
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CL&P
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$
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69.8
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$
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85.8
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NSTAR Electric
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$
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59.8
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$
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68.8
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PSNH
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$
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22.0
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$
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29.0
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WMECO
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$
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14.1
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$
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18.0
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The full-year earnings of Eversource Energy’s electric utility
subsidiaries are noted below in millions, net of preferred dividends:
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2015
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2014
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CL&P
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$
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293.8
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$
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282.2
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NSTAR Electric
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$
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342.6
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$
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301.1
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PSNH
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$
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114.4
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$
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113.9
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WMECO
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$
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56.5
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$
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57.8
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Retail sales data:
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December 31, 2015
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December 31, 2014
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% Change
Actual
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Electric Distribution
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Gwh for three months ended
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12,442
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13,004
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(4.3%)
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Gwh for 12 months ended
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54,616
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54,442
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0.3%
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Natural Gas Distribution
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Firm volumes in mmcf for three
months ended
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23,352
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27,855
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(16.2%)
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Firm volumes in mmcf for 12
months ended
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98,458
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99,500
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(1.0%)
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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.
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Note: Eversource Energy will webcast a conference call with
senior management on February 5, 2016, beginning at 9 a.m. Eastern
Time. The webcast and accompanying slides can be accessed through
Eversource’s website at www.eversource.com.
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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 parent common shares outstanding for the period. In
addition, fourth quarter and year-end 2015 and 2014 earnings and EPS
excluding certain integration costs are non-GAAP financial measures. Management
uses these non-GAAP financial measures to evaluate earnings results and
to provide details of earnings results by business and to more fully
compare and explain our fourth quarter and full-year results without
including the impact of the integration costs. 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 and economic conditions, including
their impact on interest rates, bad debt expense and demand for
Eversource Energy’s products and services, which could include
disruptive technology related to our current or future business model;
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 from time to time in
the company’s reports filed with the Securities and Exchange Commission
(SEC) and are available on the SEC’s website at www.sec.gov.
Any forward-looking statement speaks only as of the date on which
such statement is made, and Eversource Energy undertakes no obligation
to update the information contained in any forward-looking statement to
reflect developments or circumstances occurring after the statement is
made or to reflect the occurrence of unanticipated events.
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EVERSOURCE ENERGY AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
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For the Three Months Ended December 31,
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(Thousands of Dollars, Except Share Information)
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2015
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2014
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Operating Revenues
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$
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1,691,231
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$
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1,881,120
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Operating Expenses:
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Purchased Power, Fuel and Transmission
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537,098
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702,557
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Operations and Maintenance
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351,983
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358,574
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Depreciation
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170,467
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158,433
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Amortization of Regulatory Liabilities, Net
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(20,248
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)
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(21,122
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)
|
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Energy Efficiency Programs
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115,141
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|
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112,898
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Taxes Other Than Income Taxes
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151,354
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139,519
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Total Operating Expenses
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1,305,795
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|
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1,450,859
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Operating Income
|
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|
385,436
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|
|
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430,261
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Interest Expense
|
|
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|
92,785
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|
|
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|
89,898
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Other Income, Net
|
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|
10,361
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|
|
|
|
5,565
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Income Before Income Tax Expense
|
|
|
|
303,012
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|
|
|
|
345,928
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Income Tax Expense
|
|
|
|
119,327
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|
|
|
|
122,440
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Net Income
|
|
|
|
183,685
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|
|
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|
223,488
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Net Income Attributable to Noncontrolling Interests
|
|
|
|
1,880
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|
|
|
|
1,879
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Net Income Attributable to Common Shareholders
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|
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$
|
181,805
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$
|
221,609
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Basic and Diluted Earnings Per Common Share
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$
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0.57
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$
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0.69
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Weighted Average Common Shares Outstanding:
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Basic
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317,459,769
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316,721,275
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Diluted
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318,543,188
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318,109,809
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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.
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EVERSOURCE ENERGY AND SUBSIDIARIES
|
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CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
|
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For the Years Ended December 31,
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(Thousands of Dollars, Except Share Information)
|
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|
2015
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2014
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2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
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$
|
7,954,827
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|
|
$
|
7,741,856
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|
|
$
|
7,301,204
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Operating Expenses:
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|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Power, Fuel and Transmission
|
|
|
|
3,086,905
|
|
|
|
3,021,550
|
|
|
|
2,482,954
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|
Operations and Maintenance
|
|
|
|
1,329,289
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|
|
|
1,427,589
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|
|
|
1,514,986
|
|
Depreciation
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|
|
|
665,856
|
|
|
|
614,657
|
|
|
|
610,777
|
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Amortization of Regulatory Assets, Net
|
|
|
|
22,339
|
|
|
|
10,704
|
|
|
|
206,322
|
|
Amortization of Rate Reduction Bonds
|
|
|
|
-
|
|
|
|
-
|
|
|
|
42,581
|
|
Energy Efficiency Programs
|
|
|
|
495,701
|
|
|
|
473,127
|
|
|
|
401,919
|
|
Taxes Other Than Income Taxes
|
|
|
|
590,573
|
|
|
|
561,380
|
|
|
|
512,230
|
|
|
Total Operating Expenses
|
|
|
|
6,190,663
|
|
|
|
6,109,007
|
|
|
|
5,771,769
|
Operating Income
|
|
|
|
1,764,164
|
|
|
|
1,632,849
|
|
|
|
1,529,435
|
Interest Expense
|
|
|
|
372,420
|
|
|
|
362,106
|
|
|
|
338,699
|
Other Income, Net
|
|
|
|
34,227
|
|
|
|
24,619
|
|
|
|
29,894
|
Income Before Income Tax Expense
|
|
|
|
1,425,971
|
|
|
|
1,295,362
|
|
|
|
1,220,630
|
Income Tax Expense
|
|
|
|
539,967
|
|
|
|
468,297
|
|
|
|
426,941
|
Net Income
|
|
|
|
886,004
|
|
|
|
827,065
|
|
|
|
793,689
|
Net Income Attributable to Noncontrolling Interests
|
|
|
|
7,519
|
|
|
|
7,519
|
|
|
|
7,682
|
Net Income Attributable to Common Shareholders
|
|
|
$
|
878,485
|
|
|
$
|
819,546
|
|
|
$
|
786,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share
|
|
|
$
|
2.77
|
|
|
$
|
2.59
|
|
|
$
|
2.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Common Share
|
|
|
$
|
2.76
|
|
|
$
|
2.58
|
|
|
$
|
2.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
317,336,881
|
|
|
|
316,136,748
|
|
|
|
315,311,387
|
|
Diluted
|
|
|
|
318,432,687
|
|
|
|
317,417,414
|
|
|
|
316,211,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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/20160204006436/en/ Copyright Business Wire 2016
Source: Business Wire
(February 4, 2016 - 4:05 PM EST)
News by QuoteMedia
www.quotemedia.com
|