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NU Reports Third Quarter Results

Stocks in this article: NU

NU has approximately 314 million common shares outstanding. It operates New England’s largest energy delivery system, serving approximately 3.5 million customers in Connecticut, Massachusetts and New Hampshire.

Note: NU will webcast a presentation from the 2012 EEI Financial Conference on Tuesday, November 13, 2012, beginning at 9:45 a.m. Mountain Time and 11:45 a.m. Eastern Time. The webcast can be accessed through NU’s website at www.nu.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 NU parent. 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 NU'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 NU parent common shares outstanding for the period. In addition, the third quarter and first nine month 2012 earnings and EPS excluding certain charges related to the April 10, 2012 closing of the merger between NU and NSTAR 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 third quarter and first nine month 2012 and 2011 results without including the impact of the non-recurring merger and related settlement costs. Management believes that this measurement is useful to investors to evaluate the actual and projected financial performance and contribution of NU’s businesses. Non-GAAP financial measures should not be considered as alternatives to NU consolidated net income attributable to controlling interests or EPS determined in accordance with GAAP as indicators of NU’s operating performance.

This news release includes statements concerning NU’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, actions or inaction of local, state and federal regulatory and taxing bodies; changes in business and economic conditions, including their impact on interest rates, bad debt expense and demand for NU’s products and services; changes 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 NU’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; fluctuations in the value of our remaining competitive contracts; actions of rating agencies; the possibility that expected merger synergies will not be realized or will not be realized within the expected time period; and other presently unknown or unforeseen factors. Other risk factors are detailed from time to time in NU’s and NSTAR’s reports filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which such statement is made, and NU undertakes no obligation to update the information contained in any forward-looking statements to reflect developments or circumstances occurring after the statement is made or to reflect the occurrence of unanticipated events.

       
 
NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
(Thousands of Dollars) September 30,2012

December 31,2011

 

ASSETS

 
Current Assets:
Cash and Cash Equivalents $ 73,449 $ 6,559
Receivables, Net 773,415 488,002
Unbilled Revenues 182,643 175,207
Fuel, Materials and Supplies 267,281 248,958
Regulatory Assets 647,615 255,144
Marketable Securities 81,618 70,970
Prepayments and Other Current Assets   112,965   112,632
Total Current Assets   2,138,986   1,357,472
 
 
Property, Plant and Equipment, Net   16,303,805   10,403,065
 
Deferred Debits and Other Assets:
Regulatory Assets 5,008,034 3,267,710
Goodwill 3,518,454 287,591
Marketable Securities 394,207 60,311
Derivative Assets 93,256 98,357
Other Long-Term Assets   300,820   172,560
Total Deferred Debits and Other Assets   9,314,771   3,886,529
 
Total Assets $ 27,757,562 $ 15,647,066

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 Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

       
 
NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 

 

(Thousands of Dollars)    

September 30,2012

   

December 31,2011

 

LIABILITIES AND CAPITALIZATION

 
Current Liabilities:
Notes Payable $ 1,359,250 $ 317,000
Long-Term Debt - Current Portion 879,746 331,582
Accounts Payable 542,691 633,282
Regulatory Liabilities 226,606 167,844
Derivative Liabilities 113,907 107,558
Other Current Liabilities   678,523     390,416  
Total Current Liabilities   3,800,723     1,947,682  
 
Rate Reduction Bonds   101,347     112,260  
 
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 3,429,538 1,868,316
Regulatory Liabilities 561,555 266,145
Derivative Liabilities 912,352 959,876
Accrued Pension, SERP and PBOP 2,015,649 1,326,037
Other Long-Term Liabilities   871,428     420,011  
Total Deferred Credits and Other Liabilities   7,790,522     4,840,385  
 
Capitalization:
Long-Term Debt   6,732,536     4,614,913  
 
Noncontrolling Interest - Preferred Stock of Subsidiaries   155,568     116,200  
 
Equity:
Common Shareholders' Equity:
Common Shares 1,662,358 980,264
Capital Surplus, Paid In 6,183,715 1,797,884
Retained Earnings 1,735,690 1,651,875
Accumulated Other Comprehensive Loss (64,209 ) (70,686 )
Treasury Stock   (340,688 )   (346,667 )
Common Shareholders' Equity 9,176,866 4,012,670
Noncontrolling Interests   -     2,956  
Total Equity   9,176,866     4,015,626  
Total Capitalization   16,064,970     8,746,739  
 
Total Liabilities and Capitalization $ 27,757,562   $ 15,647,066  

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 Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

               
 
NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
Three Months Ended September 30, Nine Months Ended September 30,
(Thousands of Dollars, Except Share Information)     2012     2011     2012     2011
 
Operating Revenues $ 1,861,529 $ 1,114,892 $ 4,589,835 $ 3,397,624
 
Operating Expenses:
Purchased Power, Fuel and Transmission 602,751 406,237 1,540,110 1,285,483
Operations and Maintenance 395,531 255,551 1,187,471 788,875
Depreciation 144,475 75,196 369,798 222,784
Amortization of Regulatory Assets, Net 43,835 36,163 74,851 86,653
Amortization of Rate Reduction Bonds 43,044 17,680 102,144 52,047
Energy Efficiency Programs 98,326 35,255 209,089 99,658
Taxes Other Than Income Taxes   120,662   84,994   319,559   252,817
Total Operating Expenses   1,448,624   911,076   3,803,022   2,788,317
Operating Income 412,905 203,816 786,813 609,307
 
Interest Expense:
Interest on Long-Term Debt 86,459 57,461 233,352 171,905
Interest on Rate Reduction Bonds 1,681 2,018 5,168 6,889
Other Interest   2,221   4,453   7,336   5,922
Interest Expense 90,361 63,932 245,856 184,716
Other Income, Net   4,324   1,430   14,904   19,077
Income Before Income Tax Expense 326,868 141,314 555,861 443,668
Income Tax Expense   117,360   49,883   199,379   157,934
Net Income 209,508 91,431 356,482 285,734
Net Income Attributable to Noncontrolling Interests   1,880   1,470   5,253   4,340
Net Income Attributable to Controlling Interest $ 207,628 $ 89,961 $ 351,229 $ 281,394
Basic Earnings Per Common Share $ 0.66 $ 0.51 $ 1.33 $ 1.59
Diluted Earnings Per Common Share $ 0.66 $ 0.51 $ 1.32 $ 1.58
Dividends Declared Per Common Share $ 0.34 $ 0.28 $ 0.97 $ 0.83
Weighted Average Common Shares Outstanding:
Basic   314,806,441   177,497,862   264,636,636   177,344,481
Diluted   315,805,796   177,835,348   265,353,377   177,647,694

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 Northeast Utilities and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

 

 

NORTHEAST UTILITIES AND SUBSIDIARIES

       

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)
 
Nine Months Ended September 30,
(Thousands of Dollars)     2012     2011
 
Operating Activities:
Net Income $ 356,482 $ 285,734
Adjustments to Reconcile Net Income to Net Cash Flows
Provided by Operating Activities:
Bad Debt Expense 24,249 12,435
Depreciation 369,798 222,784
Deferred Income Taxes 186,181 133,528
Pension, SERP and PBOP Expense 160,209 103,106
Pension and PBOP Contributions (237,123) (159,220)
Regulatory Underrecoveries, Net (26,236) (24,245)
Amortization of Regulatory Assets, Net 74,851 86,653
Amortization of Rate Reduction Bonds 102,144 52,047
Derivative Assets and Liabilities (7,907) (33,767)
Other (9,702) (14,802)
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net (27,677) 61,657
Fuel, Materials and Supplies 32,887 (4,072)
Taxes Receivable/Accrued, Net 26,302 109,410
Accounts Payable (208,308) 66,618
Other Current Assets and Liabilities, Net   (20,145)   (9,419)
Net Cash Flows Provided by Operating Activities   796,005   888,447
 
Investing Activities:
Investments in Property, Plant and Equipment (1,081,750) (749,060)
Proceeds from Sales of Marketable Securities 232,911 116,463
Purchases of Marketable Securities (252,762) (118,251)
Proceeds from Sale of Assets - 46,841
Other Investing Activities   40,265   (5,849)
Net Cash Flows Used in Investing Activities   (1,061,336)   (709,856)
 
Financing Activities:
Cash Dividends on Common Shares (267,356) (145,865)
Cash Dividends on Preferred Stock (5,149) (4,169)
Increase/(Decrease) in Short-Term Debt 654,250 (237,000)
Issuance of Long-Term Debt 300,000 382,000
Retirements of Long-Term Debt (267,561) (124,086)
Retirements of Rate Reduction Bonds (95,225) (51,198)
Other Financing Activities   13,262   (4,947)
Net Cash Flows Provided by/(Used in) Financing Activities   332,221   (185,265)
Net Increase/(Decrease) in Cash and Cash Equivalents 66,890 (6,674)
Cash and Cash Equivalents - Beginning of Period   6,559   23,395
Cash and Cash Equivalents - End of Period $ 73,449 $ 16,721

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 Northeast Utilities 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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