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NU Reports Year-End 2012 Results

Stocks in this article: NU

** Pre-merger sales data for NSTAR Gas are included for illustrative purposes.

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

Note: NU will webcast a conference call with senior management on February 20, 2013, beginning at 9 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, fourth quarter and full year 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 fourth quarter and full year 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
CONSOLIDATED BALANCE SHEETS
(Unaudited)
             
As of December 31,
(Thousands of Dollars)         2012       2011
 

ASSETS

 
Current Assets:
Cash and Cash Equivalents $ 45,748 $ 6,559
Receivables, Net 792,822 488,002
Unbilled Revenues 216,040 175,207
Fuel, Materials and Supplies 267,713 248,958
Regulatory Assets 705,025 255,144
Marketable Securities 91,975 70,970
Prepayments and Other Current Assets   107,972   112,632
Total Current Assets   2,227,295   1,357,472
 
Property, Plant and Equipment, Net   16,605,010   10,403,065
 
Deferred Debits and Other Assets:
Regulatory Assets 5,132,411 3,267,710
Goodwill 3,519,401 287,591
Marketable Securities 400,329 60,311
Derivative Assets 90,612 98,357
Other Long-Term Assets   327,766   172,560
Total Deferred Debits and Other Assets   9,470,519   3,886,529
 
 
Total Assets $ 28,302,824 $ 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

CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
        As of December 31,
(Thousands of Dollars)         2012       2011
     

LIABILITIES AND CAPITALIZATION

 
Current Liabilities:
Notes Payable $ 1,120,196 $ 317,000
Long-Term Debt - Current Portion 763,338 331,582
Accounts Payable 764,350 633,282
Regulatory Liabilities 134,115 167,844
Derivative Liabilities 117,194 107,558
Other Current Liabilities   744,497     390,416  
Total Current Liabilities   3,643,690     1,947,682  
 
Rate Reduction Bonds   82,139     112,260  
 
Deferred Credits and Other Liabilities:
Accumulated Deferred Income Taxes 3,463,347 1,868,316
Regulatory Liabilities 540,162 266,145
Derivative Liabilities 882,654 959,876
Accrued Pension, SERP and PBOP 2,130,497 1,326,037
Other Long-Term Liabilities   967,561     420,011  
Total Deferred Credits and Other Liabilities   7,984,221     4,840,385  
 
Capitalization:
Long-Term Debt   7,200,156     4,614,913  
 
Noncontrolling Interest - Preferred Stock of Subsidiaries   155,568     116,200  
 
Equity:
Common Shareholders' Equity:
Common Shares 1,662,547 980,264
Capital Surplus, Paid In 6,183,267 1,797,884
Retained Earnings 1,802,714 1,651,875
Accumulated Other Comprehensive Loss (72,854 ) (70,686 )
Treasury Stock   (338,624 )   (346,667 )
Common Shareholders' Equity 9,237,050 4,012,670
Noncontrolling Interests   -     2,956  
Total Equity   9,237,050     4,015,626  
Total Capitalization   16,592,774     8,746,739  
 
 
Total Liabilities and Capitalization $ 28,302,824   $ 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

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

       
For the Three Months Ended December 31,
(Thousands of Dollars, Except Share Information)         2012       2011
     
Operating Revenues $ 1,683,952   $ 1,068,033
 
Operating Expenses:
Purchased Power, Fuel and Transmission 544,254 372,431
Operations and Maintenance 395,600 306,484
Depreciation 149,212 79,408
Amortization of Regulatory Assets, Net 4,910 4,427
Amortization of Rate Reduction Bonds 39,875 17,865
Energy Efficiency Programs 104,060 31,757
Taxes Other Than Income Taxes   114,648     70,792
Total Operating Expenses   1,352,559     883,164
Operating Income 331,393 184,869
 
Interest Expense:
Interest on Long-Term Debt 83,636 59,725
Interest on Rate Reduction Bonds 1,000 1,722
Other Interest   (547 )   4,262
Interest Expense 84,089 65,709
Other Income, Net   4,838     8,638
Income Before Income Tax Expense 252,142 127,798
Income Tax Expense   75,547     13,019
Net Income 176,595 114,779
Net Income Attributable to Noncontrolling Interests   1,879     1,480
Net Income Attributable to Controlling Interest $ 174,716   $ 113,299
 
Basic and Diluted Earnings Per Common Share $ 0.55   $ 0.64
 
Dividends Declared Per Common Share $ 0.34   $ 0.28
 
Weighted Average Common Shares Outstanding:
Basic   314,929,366     177,645,092
Diluted   315,914,389     178,093,879
 

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
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
      For the Years Ended December 31,
(Thousands of Dollars, Except Share Information)       2012       2011       2010
           
Operating Revenues $ 6,273,787 $ 4,465,657 $ 4,898,167  
 
Operating Expenses:
Purchased Power, Fuel and Transmission 2,084,364 1,657,914 2,034,501
Operations and Maintenance 1,583,070 1,095,358 1,001,349
Depreciation 519,010 302,192 300,737
Amortization of Regulatory Assets, Net 79,762 91,080 90,054
Amortization of Rate Reduction Bonds 142,019 69,912 232,871
Energy Efficiency Programs 313,149 131,415 124,023
Taxes Other Than Income Taxes   434,207   323,610   314,741  
Total Operating Expenses   5,155,581   3,671,481   4,098,276  
Operating Income 1,118,206 794,176 799,891
 
Interest Expense:
Interest on Long-Term Debt 316,987 231,630 231,089
Interest on Rate Reduction Bonds 6,168 8,611 20,573
Other Interest   6,790   10,184   (14,371 )
Interest Expense 329,945 250,425 237,291
Other Income, Net   19,742   27,715   41,916  
Income Before Income Tax Expense 808,003 571,466 604,516
Income Tax Expense   274,926   170,953   210,409  
Net Income 533,077 400,513 394,107
Net Income Attributable to Noncontrolling Interests   7,132   5,820   6,158  
Net Income Attributable to Controlling Interest $ 525,945 $ 394,693 $ 387,949  
 
Basic Earnings Per Common Share $ 1.90 $ 2.22 $ 2.20  
 
Diluted Earnings Per Common Share $ 1.89 $ 2.22 $ 2.19  
 
Weighted Average Common Shares Outstanding:
Basic   277,209,819   177,410,167   176,636,086  
Diluted   277,993,631   177,804,568   176,885,387  
 

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
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
             
For the Years Ended December 31,
(Thousands of Dollars)       2012     2011     2010
 
Operating Activities:
Net Income $ 533,077 $ 400,513 $ 394,107
Adjustments to Reconcile Net Income to Net Cash Flows
Provided by Operating Activities:
Bad Debt Expense 36,275 16,420 31,352
Depreciation 519,010 302,192 300,737
Deferred Income Taxes 292,000 196,761 210,939
Pension, SERP and PBOP Expense 218,540 133,000 103,861
Pension and PBOP Contributions (295,028 ) (191,101 ) (90,633 )
Regulatory (Under)/Over Recoveries, Net (259,853 ) (70,863 ) 26,289
Amortization of Regulatory Assets, Net 79,762 91,080 90,054
Amortization of Rate Reduction Bonds 142,019 69,912 232,871
Derivative Assets and Liabilities (10,455 ) (35,441 ) (11,812 )
Other 17,032 (29,751 ) (72,151 )
Changes in Current Assets and Liabilities:
Receivables and Unbilled Revenues, Net (20,214 ) 17,570 (51,285 )
Fuel, Materials and Supplies 34,321 (11,033 ) 38,126
Taxes Receivable/Accrued, Net (5,450 ) 49,642 (82,103 )
Accounts Payable (128,339 ) 18,916 (44,355 )
Other Current Assets and Liabilities, Net   8,532     12,569     17,466  
Net Cash Flows Provided by Operating Activities   1,161,229     970,386     1,093,463  
 
Investing Activities:
Investments in Property, Plant and Equipment (1,472,272 ) (1,076,730 ) (954,472 )
Proceeds from Sales of Marketable Securities 317,294 149,441 174,865
Purchases of Marketable Securities (348,629 ) (151,972 ) (177,204 )
Proceeds from Sale of Assets - 46,841 -
Other Investing Activities   35,683     13,833     (1,157 )
Net Cash Flows Used in Investing Activities   (1,467,924 )   (1,018,587 )   (957,968 )
 
Financing Activities:
Cash Dividends on Common Shares (375,047 ) (194,555 ) (180,542 )
Cash Dividends on Preferred Stock (7,029 ) (5,559 ) (5,559 )
Increase in Short-Term Debt 825,000 50,000 166,687
Issuance of Long-Term Debt 850,000 627,500 145,000
Retirements of Long-Term Debt (839,136 ) (369,586 ) (4,286 )
Retirements of Rate Reduction Bonds (114,433 ) (69,312 ) (260,864 )
Other Financing Activities   6,529     (7,123 )   512  
Net Cash Flows Provided by/(Used in) Financing Activities   345,884     31,365     (139,052 )
Net Increase/(Decrease) in Cash and Cash Equivalents 39,189 (16,836 ) (3,557 )
Cash and Cash Equivalents - Beginning of Year   6,559     23,395     26,952  
Cash and Cash Equivalents - End of Year $ 45,748   $ 6,559   $ 23,395  
 

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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