Eversource Energy Reports First Quarter 2020 Results

HARTFORD, Conn. and BOSTON--()--Eversource Energy (NYSE: ES) today reported first quarter 2020 earnings of $334.8 million, or $1.01 per share, compared with earnings of $308.7 million, or $0.97 per share, in the first quarter of 2019. Results for 2020 include an after-tax charge of $3.5 million, or $0.01 per share, associated with Eversource’s pending acquisition of the assets of Columbia Gas of Massachusetts. Absent that charge, Eversource Energy earned $338.3 million1, or $1.02 per share1, in the first quarter of 2020.

Also today, the Eversource Energy Board of Trustees declared a regular quarterly dividend of $0.5675 per share, payable June 30, 2020 to shareholders of record as of May 20, 2020. Additionally, the company today reaffirmed its 2020 earnings per share (EPS) guidance of $3.60 to $3.70 and its projected 5 to 7 percent long-term EPS growth rate.

Our 8,300 employees do an outstanding job delivering safe and reliable service to our 4 million customers, despite the extreme challenges posed by the COVID-19 crisis,” said Jim Judge, Eversource chairman, president and chief executive officer. “Even when challenged by a late winter snowstorm in New Hampshire in March and an unusual coastal storm in Connecticut and Massachusetts in April, we safely and efficiently restored power to customers who are more dependent than ever on our critical service.”

Electric Distribution

Eversource Energy’s electric distribution segment earned $130.1 million in the first quarter of 2020, compared with earnings of $120.1 million in the first quarter of 2019. Improved results were due primarily to higher distribution revenues and lower storm restoration costs, partially offset by higher depreciation, interest and property tax expense.

Electric Transmission

Eversource Energy’s transmission segment earned $126.8 million in the first quarter of 2020, compared with earnings of $118.2 million in the first quarter of 2019. Higher transmission earnings were primarily due to additional electric transmission system investment.

Natural Gas Distribution

Eversource Energy’s natural gas distribution segment earned $84.4 million in the first quarter of 2020, compared with earnings of $76.5 million in the first quarter of 2019. Improved results were due primarily to higher revenues, partially offset by higher operation, maintenance and depreciation expense.

Water Distribution

Eversource Energy’s water distribution segment earned $2.1 million in the first quarter of 2020, compared with $0.9 million in the first quarter of 2019. The increase was due primarily to higher revenues.

Parent and other companies

Parent and other companies had a net loss of $5.1 million in the first quarter of 2020, compared with a loss of $7 million in the first quarter of 2019. The reduced loss was due in part to lower interest expense.

The following table reconciles consolidated earnings per share for the first quarters of 2020 and 2019:

 

 

First Quarter

2019

Reported EPS

$0.97

 

Higher electric and natural gas distribution revenues in 2020 offset by higher depreciation and property tax

expense and $0.01/share dilution

 

0.02

 

Higher level of electric and natural gas distribution investment trackers in 2020 offset by

$0.01/share dilution

 

0.02

 

Higher transmission earnings offset by $0.02/share

dilution

 

0.01

 

Columbia Gas of MA acquisition charge

(0.01)

2020

Reported EPS

$1.01

Financial results for the first quarters of 2020 and 2019 for Eversource Energy’s business segments and parent and other companies are noted below:

Three months ended:

 

(in millions, except EPS)

 

March 31, 2020

 

March 31, 2019

Increase/

(Decrease)

 

 

2020 EPS1

Electric Distribution

$

130.1

 

$

120.1

 

$

10.0

 

$

0.39

 

Electric Transmission

 

126.8

 

 

118.2

 

 

8.6

 

 

0.38

 

Natural Gas Distribution

 

84.4

 

 

76.5

 

 

7.9

 

 

0.25

 

Water Distribution

 

2.1

 

 

0.9

 

 

1.2

 

 

0.01

 

Parent and Other Companies

 

(5.1

)

 

(7.0

)

 

1.9

 

 

(0.01

)

Columbia Gas of MA acquisition

charge

 

 

 

(3.5

 

)

 

---

 

 

 

(3.5

 

)

 

 

 

(0.01

 

)

Reported Earnings

$

334.8

 

$

308.7

 

$

26.1

 

$

1.01

 

Eversource Energy has approximately 336 million common shares outstanding. It operates New England’s largest energy delivery system and serves approximately 4 million electric, natural gas and water utility customers in Connecticut, Massachusetts and New Hampshire.

Note: Eversource Energy will webcast a conference call with senior management on May 7, 2020, 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 presentation 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 common shareholders of each business by the weighted average diluted Eversource Energy common shares outstanding for the period. Earnings discussions also include non-GAAP financial measures referencing 2020 earnings and EPS excluding certain acquisition costs and Q2 2019 earnings and EPS excluding the NPT impairment charge. Eversource Energy uses these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain 2020 and 2019 results without including these items. Management believes the acquisition costs and the NPT impairment charge are not indicative of Eversource Energy’s ongoing costs and performance. Due to the nature and significance of these items on net income attributable to common shareholders, management believes that the non-GAAP presentation is a more meaningful representation of Eversource Energy’s financial performance and provides additional and useful information to readers in analyzing historical and future performance of the business. Non-GAAP financial measures should not be considered as alternatives to Eversource Energy’s consolidated net income attributable to common shareholders or EPS determined in accordance with GAAP as indicators of Eversource Energy’s operating performance.

This document 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. Generally, 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: cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers; disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly; the negative impacts of the novel coronavirus (COVID-19) pandemic on our customers, vendors, employees, regulators, and operations; changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability; ability or inability to commence and complete our major strategic development projects and opportunities, acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, state and federal regulatory, public policy and taxing bodies, substandard performance of third-party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climate change; changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capital expenditures, including the Columbia Gas of Massachusetts asset acquisition; changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations; 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). They are updated as necessary and 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, many of which are beyond our control. You should not place undue reliance on the forward-looking statements, as 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, 2020

 

As of December 31, 2019

 

 

 

 

ASSETS

 

 

 

Current Assets:

 

 

 

Cash

$

 

47,425

 

 

$

 

15,432

 

Receivables, Net (net of allowance for uncollectible accounts of $262,078 and $224,821 as of March 31, 2020 and December 31, 2019, respectively)

 

1,018,941

 

 

 

989,383

 

Unbilled Revenues

 

155,224

 

 

 

181,006

 

Fuel, Materials, Supplies and REC Inventory

 

286,498

 

 

 

235,471

 

Regulatory Assets

 

785,125

 

 

 

651,112

 

Prepayments and Other Current Assets

 

269,457

 

 

 

342,135

 

Total Current Assets

 

2,562,670

 

 

 

2,414,539

 

Property, Plant and Equipment, Net

 

28,041,356

 

 

 

27,585,470

 

Deferred Debits and Other Assets:

 

 

 

Regulatory Assets

 

4,778,321

 

 

 

4,863,639

 

Goodwill

 

4,427,266

 

 

 

4,427,266

 

Investments in Unconsolidated Affiliates

 

876,328

 

 

 

871,633

 

Marketable Securities

 

418,715

 

 

 

449,130

 

Other Long-Term Assets

 

544,330

 

 

 

512,238

 

Total Deferred Debits and Other Assets

 

11,044,960

 

 

 

11,123,906

 

Total Assets

$

 

41,648,986

 

 

$

 

41,123,915

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

Current Liabilities:

 

 

 

Notes Payable

$

 

661,420

 

 

$

 

889,084

 

Long-Term Debt – Current Portion

 

532,440

 

 

 

327,411

 

Rate Reduction Bonds – Current Portion

 

43,210

 

 

 

43,210

 

Accounts Payable

 

914,333

 

 

 

1,147,872

 

Renewable Portfolio Standards Compliance Obligations

 

192,660

 

 

 

160,149

 

Regulatory Liabilities

 

439,859

 

 

 

361,152

 

Other Current Liabilities

 

611,706

 

 

 

676,685

 

Total Current Liabilities

 

3,395,628

 

 

 

3,605,563

 

Deferred Credits and Other Liabilities:

 

 

 

Accumulated Deferred Income Taxes

 

3,816,988

 

 

 

3,755,777

 

Regulatory Liabilities

 

3,668,158

 

 

 

3,658,042

 

Derivative Liabilities

 

342,990

 

 

 

338,710

 

Asset Retirement Obligations

 

489,519

 

 

 

488,511

 

Accrued Pension, SERP and PBOP

 

1,331,884

 

 

 

1,370,245

 

Other Long-Term Liabilities

 

821,195

 

 

 

810,553

 

Total Deferred Credits and Other Liabilities

 

10,470,734

 

 

 

10,421,838

 

Long-Term Debt

 

13,898,581

 

 

 

13,770,828

 

Rate Reduction Bonds

 

518,517

 

 

 

540,122

 

Noncontrolling Interest – Preferred Stock of Subsidiaries

 

155,570

 

 

 

155,570

 

Common Shareholders' Equity:

 

 

 

Common Shares

 

1,759,092

 

 

 

1,729,292

 

Capital Surplus, Paid In

 

7,479,689

 

 

 

7,087,768

 

Retained Earnings

 

4,322,825

 

 

 

4,177,048

 

Accumulated Other Comprehensive Loss

 

(63,111

)

 

 

(65,059

)

Treasury Stock

 

(288,539

)

 

 

(299,055

)

Common Shareholders' Equity

 

13,209,956

 

 

 

12,629,994

 

Total Liabilities and Capitalization

$

 

41,648,986

 

 

$

 

41,123,915

 

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)

2020

 

2019

 

 

 

 

Operating Revenues

$

 

2,373,726

 

 

$

 

2,415,792

 

 

 

 

 

Operating Expenses:

 

 

 

Purchased Power, Fuel and Transmission

 

876,570

 

 

 

974,882

 

Operations and Maintenance

 

342,062

 

 

 

335,597

 

Depreciation

 

236,211

 

 

 

214,948

 

Amortization

 

49,776

 

 

 

70,961

 

Energy Efficiency Programs

 

148,393

 

 

 

140,116

 

Taxes Other Than Income Taxes

 

181,594

 

 

 

184,588

 

Total Operating Expenses

 

1,834,606

 

 

 

1,921,092

 

Operating Income

 

539,120

 

 

 

494,700

 

Interest Expense

 

134,715

 

 

 

131,734

 

Other Income, Net

 

24,104

 

 

 

30,985

 

Income Before Income Tax Expense

 

428,509

 

 

 

393,951

 

Income Tax Expense

 

91,876

 

 

 

83,393

 

Net Income

 

336,633

 

 

 

310,558

 

Net Income Attributable to Noncontrolling Interests

 

1,880

 

 

 

1,880

 

Net Income Attributable to Common Shareholders

$

 

334,753

 

 

$

 

308,678

 

 

 

 

 

Basic and Diluted Earnings Per Common Share

$

 

1.01

 

 

$

 

0.97

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

Basic

 

331,102,237

 

 

 

317,624,593

 

Diluted

 

332,937,153

 

 

 

318,316,082

 

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.

Contacts

Jeffrey R. Kotkin
(860) 665-5154

Release Summary

Eversource Energy today reported first quarter 2020 earnings of $334.8 million and a regular quarterly dividend of $0.5675 per share

Contacts

Jeffrey R. Kotkin
(860) 665-5154