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NU Reports Third Quarter Results

  NU Reports Third Quarter Results

Business Wire

BOSTON & HARTFORD, Conn. -- November 01, 2012

Northeast Utilities (NYSE: NU) today reported earnings of $207.6 million, or
$0.66 per share, in the third quarter of 2012, compared with earnings of $90
million, or $0.51 per share, in the same period of 2011. Third quarter 2012
results included approximately $12.9 million, or $0.04 per share, of after-tax
charges related to the April 2012 closing of the merger between NU and NSTAR.
Excluding merger and related settlement costs, NU earned $220.5 million^1, or
$0.70 per share^1, in the third quarter of 2012, compared with earnings of
$90.6 million^1, or $0.51 per share^1, in the third quarter of 2011.

For the nine-month period ended September 30, 2012, NU earned $351.2 million,
or $1.32 per share, compared with earnings of $281.4 million, or $1.58 per
share, for the same period of 2011. Excluding merger and related settlement
costs of $105.5 million, or $0.40 per share, NU earned $456.7 million^1, or
$1.72 per share^1, in the nine-month period ended September 30, 2012, compared
with earnings of $291.5 million^1, or $1.64 per share^1, in the same period of
2011. NSTAR’s results are included in NU’s results, effective as of April
2012.

Thomas J. May, NU president and chief executive officer, said, “These
financial results are in-line with our recently announced 2012 recurring
earnings guidance of between $2.25 and $2.30 per share^1 and speak well of our
efforts to create a high performing, successful, customer-focused company.”

May said he was extremely proud with the company’s response to Hurricane
Sandy. “Our 9,000 employees, supported by thousands of additional contract
employees from throughout the country, continue to perform heroically, working
around the clock to restore power to customers in three states who depend on
us for a critical service. We deeply appreciate the patience and support our
customers have shown this week, and, with what we’ve seen this week, we are
even more confident that our merger will provide them and their communities
with significant long-term benefits. This storm recovery illustrates one of
the most visible benefits of the merger. As we complete work in some of the
less impacted areas, we are able to redeploy hundreds of line and tree workers
to the most damaged areas with the greatest number of power outages.”

Dividend Declaration

NU also announced today that its Board of Trustees has declared a regular
common dividend of $0.343 per share, payable December 31, 2012, to
shareholders of record as of November 30, 2012.

Electric Transmission

NU’s transmission segment earned $71.1 million in the third quarter of 2012
and $181.1 million for the nine-month period ended September 30, 2012,
compared with $41.5 million for the third quarter of 2011 and $128.4 million
in the nine-month period ended September 30, 2011. The earnings improvement
primarily reflects continued investment in NU’s transmission system, including
the $718 million Greater Springfield Reliability Project (GSRP), as well as
the addition of NSTAR Electric Company transmission results as of April 2012.

Electric Distribution and Generation

NU’s electric distribution and generation segment earned $150.7 million in the
third quarter of 2012 and $263.1 million for the nine-month period ended
September 30, 2012, compared with $58 million for the third quarter of 2011
and $152.8 million for the nine-month period ended September 30, 2011. The
2012 results exclude $0.2 million of third-quarter and $51 million of
year-to-date after-tax merger and related settlement costs.

The distribution and generation segment results benefited in the third quarter
and the nine-month period ended September 30, 2012 from the addition of NSTAR
Electric distribution results effective in April 2012, as well as higher
retail sales. These impacts were partially offset by higher costs related to
pension and health care benefits and higher depreciation and property taxes.

Earnings of Electric Utility Subsidiaries

The Connecticut Light and Power Company (CL&P) earned $73.5 million for the
third quarter of 2012. It earned $170.1 million for the nine-month period
ended September 30, 2012, excluding $38.4 million of year-to-date merger and
related settlement costs. That compares with earnings of $65.1 million in the
third quarter of 2011 and $179.4 million for the nine-month period ended
September 30, 2011. The improved third quarter results were due primarily to
higher transmission earnings. For the year-to-date period, results were lower
due primarily to higher pension, tree trimming and system maintenance costs.

NSTAR Electric earned $106.5 million in the third quarter of 2012. It earned a
total of $162 million in the second and third quarters of 2012, excluding
$10.8 million of after-tax merger and settlement related charges.

CL&P and NSTAR Electric’s earnings are net of preferred dividends.

Public Service Company of New Hampshire earned $27.2 million for the third
quarter of 2012 and $69.8 million for the nine-month period ended September
30, 2012, compared with earnings of $25.7 million in the third quarter of 2011
and $74.7 million for the nine-month period ended September 30, 2011. The
improved third quarter results were due primarily to higher transmission
earnings, while year-to-date results for 2012 were lower due primarily to
higher depreciation, property tax and income tax expense.

Western Massachusetts Electric Company (WMECO) earned $14.1 million in the
third quarter of 2012. It earned $41.2 million for the nine-month period ended
September 30, 2012, excluding $1.8 million of year-to-date merger and related
settlement costs, compared with earnings of $8.4 million in the third quarter
of 2011 and $26.6 million for the nine-month period ended September 30, 2011.
WMECO’s results in 2012 improved largely as a result of higher transmission
earnings, which were primarily related to GSRP. The project is being built
primarily in the WMECO service territory and was approximately 85 percent
complete as of September 30, 2012.

Natural Gas Distribution

NU’s natural gas distribution segment, which now includes both Yankee Gas
Services Company and NSTAR Gas Company, lost $4.4 million in the third quarter
of 2012, compared with a loss of $3 million in the third quarter of 2011 when
it included only Yankee Gas. For the nine-month period ended September 30,
2012, NU’s natural gas distribution segment earned $10.4 million, excluding
$2.1 million of merger and related settlement costs at NSTAR Gas, compared
with earnings of $20.7 million in the nine-month period ended September 30,
2011. The lower year-to-date results in 2012 largely reflect the impact of
mild temperatures in the first quarter of 2012, which significantly reduced
the heating demand of Yankee Gas customers, compared with the first quarter of
2011 when temperatures were colder than normal.

NU parent and other businesses

Excluding $12.7 million of after-tax merger and related settlement costs in
the third quarter of 2012 and $0.6 million in the third quarter of 2011, NU
parent and other businesses had net earnings of $3.1 million in the third
quarter of 2012, compared with net expenses of $5.9 million in the third
quarter of 2011. Excluding $52.4 million of merger and related settlement
costs in the nine-month period ended September 30, 2012 and $10.1 million in
the nine-month period ended September 30, 2011, NU parent and other businesses
had net earnings of $2.1 million in 2012, compared with net expenses of $10.4
million in the first nine months of 2011. The improvement was driven by a
number of factors, including the addition of earnings from NSTAR
Communications, Inc., and lower interest expense. The following table
reconciles earnings per share for the third-quarter and the nine-month period
ended September 30, 2012 and 2011.

                                                           
                                            Third Quarter   First Nine
                                                                    Months
2011   Reported EPS                           $0.51           $1.58
      2011 merger-related charges            $0.00           $0.06
      2011 EPS before merger-related         $0.51           $1.64
         charges
      NSTAR earnings contribution in 2012    $0.33           $0.61
      Higher transmission earnings in 2012   $0.08           $0.13
      Higher/(lower) electric sales in       $0.03           ($0.03)
         2012
      Higher/(lower) firm natural gas        $0.01           ($0.03)
         sales in 2012
         Higher O&M, including untracked
      pension and health care costs in       ($0.03)         ($0.04)
         2012
      Other, primarily lower income tax      $0.05           ($0.01)
         expense
      Higher outstanding common shares       ($0.28)         ($0.55)
         2012 EPS before merger-related
      settlements                            $0.70           $1.72

         and other merger-related charges
      2012 merger and related settlement     ($0.04)         ($0.40)
         charges
2012   Reported EPS                           $0.66           $1.32
                                                             

Financial results for the third quarter and nine-month period ended September
30, 2012 and 2011 are noted below:

Three months ended:                                         
                            September     September     Increase/
(in millions, except      30,         30,                      2012
EPS)                                                    (Decrease)     EPS^1
                            2012          2011
Electric                  $150.7      $58.0       $92.7        $0.48
Distribution/Generation
Natural Gas               ($4.4)      ($3.0)      ($1.4)       ($0.02)
Distribution
Electric Transmission     $71.1       $41.5       $29.6        $0.23
NU Parent and Other
Companies,                $3.1        ($5.9)      $9.0         $0.01

ex. merger expenses
Earnings, ex. merger      $220.5      $90.6       $129.9       $0.70
impacts
Merger impacts            ($12.9)     ($0.6)      ($12.3)      ($0.04)
Reported Earnings         $207.6      $90.0       $117.6       $0.66
                                                              

Nine months ended:                                           
                             September     September     Increase/
(in millions, except       30,         30,                      2012
EPS)                                                     (Decrease)     EPS^1
                             2012          2011
Electric
Distribution/Generation,
                                                                     
ex. rate credits, storm                                        
cost                         $263.1        $152.8        $110.3         $0.99

write-down
Natural Gas
Distribution, ex. rate     $10.4       $20.7       ($10.3)      $0.04

Credits
Electric Transmission      $181.1      $128.4      $52.7        $0.68
NU Parent and Other
Companies,
                           $2.1        ($10.4)     $12.5        $0.01
ex. merger settlement,
expenses
Earnings, ex. merger       $456.7      $291.5      $165.2       $1.72
impacts
Merger impacts             ($105.5)    ($10.1)     ($95.4)      ($0.40)
Reported Earnings          $351.2      $281.4      $69.8        $1.32
                                                               

Retail sales data:                                        
                            September     September     % Change     % Change
                         30,         30,                   
                                                        Actual       Weather
                            2012          2011                       Norm.
Electric distribution                                     
Gwh for three months      15,502      15,302      1.3        1.1
ended*
Gwh for nine months       41,697      42,356      (1.6)      (0.3)
ended*
                                                         
Natural Gas                                               
Distribution
Firm volumes in mmcf
for three                 10,696      10,688      0.1        0.0

months ended**
Firm volumes in mmcf
for nine                  60,035      67,408      (10.9)     2.9

months ended**
                                                            

* Prior year sales data for NSTAR Electric are included for illustrative
purposes.
** Prior year 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 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,     December 31,
                                           2012              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 connectionwith any
purchase or sale of securities.

                                                           
                                                                  
NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                               
(Thousands of Dollars)                     September 30,    December 31,
                                             2012               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              7,790,522        4,840,385  
Liabilities
                                                                  
Capitalization:
Long-Term Debt                                6,732,536        4,614,913  
                                                                  
Noncontrolling Interest - Preferred           155,568          116,200    
Stock of Subsidiaries
                                                                  
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 connectionwith any
purchase or sale of securities.

                                                                
                                                                           
NORTHEAST UTILITIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
                                                                           
                   Three Months Ended September        Nine Months Ended September 30,
                   30,
(Thousands of
Dollars,         2012            2011            2012            2011
Except Share
Information)
                                                                           
Operating          $ 1,861,529       $ 1,114,892       $ 4,589,835       $ 3,397,624
Revenues
                                                                           
Operating
Expenses:
Purchased
Power, Fuel          602,751           406,237           1,540,110         1,285,483
and
Transmission
Operations and       395,531           255,551           1,187,471         788,875
Maintenance
Depreciation         144,475           75,196            369,798           222,784
Amortization
of Regulatory        43,835            36,163            74,851            86,653
Assets, Net
Amortization
of Rate              43,044            17,680            102,144           52,047
Reduction
Bonds
Energy
Efficiency           98,326            35,255            209,089           99,658
Programs
Taxes Other
Than Income         120,662          84,994           319,559          252,817
Taxes
Total
Operating           1,448,624        911,076          3,803,022        2,788,317
Expenses
Operating            412,905           203,816           786,813           609,307
Income
                                                                           
Interest
Expense:
Interest on          86,459            57,461            233,352           171,905
Long-Term Debt
Interest on
Rate Reduction       1,681             2,018             5,168             6,889
Bonds
Other Interest      2,221            4,453            7,336            5,922
Interest             90,361            63,932            245,856           184,716
Expense
Other Income,       4,324            1,430            14,904           19,077
Net
Income Before
Income Tax           326,868           141,314           555,861           443,668
Expense
Income Tax          117,360          49,883           199,379          157,934
Expense
Net Income           209,508           91,431            356,482           285,734
Net Income
Attributable
to                  1,880            1,470            5,253            4,340
Noncontrolling
Interests
Net Income
Attributable       $ 207,628         $ 89,961          $ 351,229         $ 281,394
to Controlling
Interest
Basic Earnings
Per Common         $ 0.66            $ 0.51            $ 1.33            $ 1.59
Share
Diluted
Earnings Per       $ 0.66            $ 0.51            $ 1.32            $ 1.58
Common Share
Dividends
Declared Per       $ 0.34            $ 0.28            $ 0.97            $ 0.83
Common Share
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 connectionwith 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             796,005           888,447
Activities
                                                                     
Investing Activities:
Investments in Property, Plant and                (1,081,750)        (749,060)
Equipment
Proceeds from Sales of Marketable                 232,911            116,463
Securities
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                 (1,061,336)       (709,856)
Activities
                                                                     
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)             332,221           (185,265)
Financing Activities
Net Increase/(Decrease) in Cash and Cash          66,890             (6,674)
Equivalents
Cash and Cash Equivalents - Beginning of         6,559             23,395
Period
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 connectionwith any
purchase or sale of securities.

Contact:

Northeast Utilities
Jeffrey R. Kotkin, 860-728-4650