10-QPeriod: Q1 FY2018

EVERSOURCE ENERGY Quarterly Report for Q1 Ended Mar 31, 2018

Filed May 3, 2018For Securities:ES

Summary

Eversource Energy's (ES) May 3, 2018, 10-Q filing primarily focuses on market risk disclosures and controls. The company highlights its robust risk management framework for commodity prices, interest rates, and credit risk. Notably, the regulated entities have no direct exposure to commodity price fluctuations as these costs are passed on to customers. Management confirmed the effectiveness of disclosure controls and procedures as of March 31, 2018, with no material changes to internal controls over financial reporting. Investors should note that the company has incorporated by reference its 2017 Form 10-K for detailed disclosures on legal proceedings, risk factors, and market risk. No new material legal proceedings, risk factors, or significant changes in market risk exposures have been identified in this quarterly report compared to the previous annual filing. The filing also provides details on common share repurchases made under various employee benefit plans during the first quarter of 2018.

Financial Highlights

45 data points
Beta

Revenue

$2.29B

Net Income

$271.40M

11.9% Net Margin

EPS (Diluted)

$0.85

Total Assets

$37.04B

Cash & Equivalents

$303.81M

Free Cash Flow

-$429.62M

Financial Statements
Beta
Revenue$2.29B
Operating Expenses$1.85B
Operating Income$442.50M
Interest Expense$121.13M
Net Income$271.40M
EPS (Basic)$0.85
EPS (Diluted)$0.85
Shares Outstanding (Basic)317.40M
Shares Outstanding (Diluted)317.99M

Key Highlights

  • 1Regulated companies have no exposure to commodity price risk as economic impacts are passed on to customers.
  • 2Eversource actively manages interest rate risk through a mix of fixed and variable rate debt.
  • 3Credit risk is managed across a diverse customer and supplier base, with $10 million in collateral held from counterparties as of March 31, 2018.
  • 4Management affirmed the effectiveness of disclosure controls and procedures as of March 31, 2018.
  • 5No material changes to internal controls over financial reporting were noted during the quarter.
  • 6No new material legal proceedings or risk factors were identified; previous disclosures from the 2017 10-K are incorporated by reference.
  • 7Eversource repurchased 317,738 shares of common stock for approximately $18.4 million during the first quarter of 2018, primarily related to employee benefit plans.

Frequently Asked Questions

Eversource's regulated companies mitigate commodity price risk by entering into energy contracts for customer service. The economic impacts of these contracts are passed through to customers, meaning the regulated entities themselves do not face exposure to losses in future earnings or fair values from these market risk-sensitive instruments. A senior committee oversees these energy-related transactions.

No, this filing indicates that there have been no additional material legal proceedings, risk factors, or significant changes to market risks identified since the company's 2017 Form 10-K filing. All relevant details are incorporated by reference from the previous annual report.

Management, including the principal executive and financial officers, has concluded that the disclosure controls and procedures for Eversource and its subsidiaries (CL&P, NSTAR Electric, and PSNH) are effective. They ensure that required information is recorded, processed, and reported within SEC timelines and communicated appropriately to management for timely decisions. No material changes affecting internal controls over financial reporting were noted during the quarter.

Yes, Eversource purchased a total of 317,738 shares of its common stock during the first quarter of 2018, for an average price of $57.97 per share, totaling approximately $18.4 million. These purchases were primarily related to shares awarded under the company's Incentive Plan, Dividend Reinvestment Plan, and matching contributions to the Eversource 401k Plan.