10-QPeriod: Q2 FY2018

EVERSOURCE ENERGY Quarterly Report for Q2 Ended Jun 30, 2018

Filed August 3, 2018For Securities:ES

Summary

Eversource Energy's (ES) 10-Q filing for the period ending June 30, 2018, indicates a stable operational and risk management environment. The company emphasizes that its regulated subsidiaries effectively pass on energy commodity costs to customers, thereby eliminating direct exposure to earnings or fair value losses from these price fluctuations. Risk management practices remain robust, with established policies for interest rate and credit risk mitigation, including collateralization where applicable. Management has reaffirmed the effectiveness of disclosure controls and procedures, with no material changes to internal controls over financial reporting noted during the quarter. Similarly, previous disclosures regarding legal proceedings and risk factors remain relevant, with no new material issues identified. The company also disclosed share repurchases under employee incentive and dividend reinvestment plans, totaling over 114,000 shares purchased during the second quarter of 2018.

Financial Highlights

46 data points
Beta

Revenue

$1.85B

Net Income

$244.60M

13.2% Net Margin

EPS (Diluted)

$0.76

Total Assets

$37.24B

Cash & Equivalents

$64.15M

Free Cash Flow

-$123.92M

Financial Statements
Beta
Revenue$1.85B
Operating Expenses$1.46B
Operating Income$391.40M
Interest Expense$126.40M
Net Income$244.60M
EPS (Basic)$0.76
EPS (Diluted)$0.76
Shares Outstanding (Basic)317.34M
Shares Outstanding (Diluted)317.89M

Key Highlights

  • 1Regulated companies' energy commodity costs are fully passed through to customers, mitigating commodity price risk.
  • 2No material changes in legal proceedings or risk factors compared to the 2017 10-K.
  • 3Disclosure controls and procedures are deemed effective by management, with no material changes to internal controls over financial reporting.
  • 4The company actively manages interest rate risk by maintaining a mix of fixed and variable rate debt.
  • 5Credit risk is managed through diverse customer and supplier relationships and collateralization where appropriate ($10 million in collateral held by regulated companies).
  • 6Eversource posted $24.6 million in cash with ISO-NE related to energy transactions as of June 30, 2018.
  • 7Company repurchased over 114,000 shares in Q2 2018 related to employee benefit plans.

Frequently Asked Questions

Eversource's regulated companies manage commodity price risk by entering into energy contracts to serve customers. The economic impacts of these contracts are passed directly to customers through approved rates, meaning the regulated entities themselves are not exposed to losses in earnings or fair values from these price fluctuations.

No, according to this filing, there have been no additional material legal proceedings or new material risk factors identified since the company's 2017 Form 10-K. Existing disclosures are incorporated by reference.

Management has evaluated the disclosure controls and procedures and concluded they are effective. Furthermore, there have been no changes in internal controls over financial reporting during the quarter ended June 30, 2018, that materially affected or are reasonably likely to materially affect them.

Yes, Eversource repurchased a total of 114,482 shares during the second quarter of 2018, primarily related to shares awarded under employee incentive plans, dividend reinvestment plans, and 401k plan matching contributions.