10-QPeriod: Q1 FY2010

EVERSOURCE ENERGY Quarterly Report for Q1 Ended Mar 31, 2010

Filed May 7, 2010For Securities:ES

Summary

Eversource Energy (ES), formerly Northeast Utilities, reported a net income of $86.2 million ($0.49 per share) for the first quarter of 2010, a decrease from $97.7 million ($0.60 per share) in the prior year. This decline was primarily attributed to lower retail electric sales due to warmer weather and a $3 million after-tax charge related to the new healthcare legislation. The company reaffirmed its full-year 2010 earnings guidance, expecting between $1.80 and $2.00 per share. Financially, the company maintained a stable outlook with $30 million in cash and cash equivalents as of March 31, 2010, and $694.1 million in aggregate borrowing availability on its revolving credit lines. Capital expenditures for the first quarter totaled $202.5 million, with full-year projections remaining at approximately $1.1 billion. Key regulatory developments include rate increase applications filed by CL&P and PSNH, and ongoing project approvals for transmission infrastructure upgrades like the Greater Springfield Reliability Project (GSRP) and the Northern Pass line.

Financial Highlights

4 data points
Beta

Revenue

$1.34B

Net Income

$86.20M

6.4% Net Margin

EPS (Diluted)

$0.49

Financial Statements
Beta
Revenue$1.34B
Operating Income$226.70M
Net Income$86.20M
EPS (Basic)$0.49

Key Highlights

  • 1Net income decreased to $86.2 million ($0.49 EPS) in Q1 2010 from $97.7 million ($0.60 EPS) in Q1 2009, impacted by lower sales and a $3 million healthcare legislation charge.
  • 2Full-year 2010 EPS guidance reaffirmed at $1.80 - $2.00.
  • 3Strong liquidity with $30 million cash and $694.1 million revolving credit availability.
  • 4Capital expenditures remain robust, with $202.5 million in Q1 2010 and full-year projections of $1.1 billion.
  • 5CL&P and PSNH filed for significant rate increases, with decisions expected in June 2010.
  • 6Progress made on major transmission projects, including GSRP and Northern Pass, with updated timelines and cost expectations.
  • 7Sales volumes across electric and gas segments declined due to warmer weather and economic conditions, though some may recover with economic upturn.

Frequently Asked Questions

The decrease in net income was primarily due to lower retail electric sales, influenced by warmer-than-normal weather, and a $3 million after-tax charge related to the enactment of the 2010 Healthcare Act. These factors were partially offset by higher transmission revenues and other income.

Eversource Energy (ES) reaffirmed its full-year 2010 earnings per share guidance in the range of $1.80 to $2.00. The company expects continued investment in capital expenditures, totaling approximately $1.1 billion for the year, and maintains strong liquidity with ample cash and credit availability.

Yes, key regulatory developments include rate increase applications filed by CL&P and PSNH, with decisions anticipated in June 2010. Significant progress is also being made on major transmission infrastructure projects like the Greater Springfield Reliability Project (GSRP) and the Northern Pass line, with updated cost and timeline estimates.

Warmer weather in the first quarter of 2010 led to a decrease in retail electric and natural gas sales volumes for both residential and commercial customers. The ongoing economic recession also impacted commercial sales. Industrial sales showed mixed results across different regions. The company anticipates some recovery in commercial and industrial sales as the economy improves.