EX-99 3 exh992earningsrelease.htm EXHIBIT 99.2 BROKERS STATEMENT Earnings Release




NORTHEAST UTILITIES AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

(Unaudited)

 

 

 

 

 

 

At December 31,

(Thousands of Dollars)

 

2006

 

2005

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current Assets:

  

 

 

 

  Cash and cash equivalents

  

$          481,911 

 

$            45,782 

  Special deposits

  

48,524 

 

103,789 

  Investments in securitizable assets

 

375,655 

 

252,801 

  Receivables, less provision for uncollectible

  

 

 

 

    accounts of $22,369 in 2006 and $24,444 in 2005

 

361,201 

 

901,516 

  Unbilled revenues

  

88,170 

 

175,853 

  Fuel, materials and supplies

 

173,882 

 

206,557 

  Marketable securities - current

  

67,546 

 

56,012 

  Derivative assets - current

 

88,699 

 

403,507 

  Prepayments and other

 

45,305 

 

128,042 

  Assets held for sale

  

158 

 

101,784 

 

 

1,731,051 

 

2,375,643 

 

  

 

 

 

Property, Plant and Equipment:

 

 

 

 

  Electric utility

 

7,129,526 

 

6,378,838 

  Gas utility

  

858,961 

 

825,872 

  Competitive energy

  

17,864 

 

908,776 

  Other

  

281,525 

 

254,659 

 

  

8,287,876 

 

8,368,145 

    Less:  Accumulated depreciation: $2,443,203 for electric and

  

 

 

 

               gas utility and $171,903 for competitive energy and

  

 

 

 

               other in 2006; $2,304,966 for electric and gas utility and

  

 

 

 

               $246,356 for competitive energy and other in 2005

  

2,615,106 

 

2,551,322 

 

  

5,672,770 

 

5,816,823 

  Construction work in progress

 

569,416 

 

600,407 

 

  

6,242,186 

 

6,417,230 

 

 

 

 

 

Deferred Debits and Other Assets:

 

 

 

 

  Regulatory assets

 

2,449,132 

 

2,483,851 

  Goodwill

 

287,591 

 

287,591 

  Prepaid pension

 

21,647 

 

298,545 

  Marketable securities - long-term

 

50,843 

 

56,527 

  Derivative assets - long-term

 

271,755 

 

425,049 

  Other

 

249,031 

 

223,439 

 

 

3,329,999 

 

3,775,002 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$     11,303,236 

 

$     12,567,875 

 

 

 

 

 


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)

 

 

 

 

 

 

At December 31,

(Thousands of Dollars)

 

2006

 

2005

 

 

 

 

 

LIABILITIES AND CAPITALIZATION

 

 

 

 

 

 

 

 

 

Current Liabilities:

  

 

 

 

  Notes payable to banks

  

$                            - 

 

$                  32,000 

  Long-term debt - current portion

  

4,877 

 

22,673 

  Accounts payable

  

569,940 

 

972,368 

  Accrued taxes

  

364,659 

 

95,210 

  Accrued interest

  

53,782 

 

47,742 

  Derivative liabilities - current

  

125,781 

 

402,530 

  Counterparty deposits

  

148 

 

28,944 

  Other

  

244,586 

 

272,252 

  Liabilities of assets held for sale

  

62 

 

101,511 

 

  

1,363,835 

 

1,975,230 

 

 

 

 

 

Rate Reduction Bonds

 

1,177,158 

 

1,350,502 

 

 

 

 

 

Deferred Credits and Other Liabilities:

  

 

 

 

  Accumulated deferred income taxes

  

1,099,433 

 

1,306,340 

  Accumulated deferred investment tax credits

  

32,427 

 

95,444 

  Deferred contractual obligations

 

271,528 

 

358,174 

  Regulatory liabilities

 

809,324 

 

1,273,501 

  Derivative liabilities - long-term

  

148,557 

 

272,995 

  Accrued postretirement benefits

 

203,320 

 

16,506 

  Other

  

322,840 

 

346,451 

 

  

2,887,429 

 

3,669,411 

Capitalization:

 

 

 

 

  Long-Term Debt

  

2,960,435 

 

3,027,288 

 

 

 

 

 

  Preferred Stock of Subsidiary - Non-Redeemable

  

116,200 

 

116,200 

 

 

 

 

 

  Common Shareholders' Equity:

 

 

 

 

    Common shares, $5 par value - authorized

 

 

 

 

      225,000,000 shares; 175,420,239 shares issued

 

 

 

 

      and 154,233,141 shares outstanding in 2006 and

 

 

 

 

      174,897,704 shares issued and 153,225,892 shares

 

 

 

 

      outstanding in 2005

  

877,101 

 

874,489 

    Capital surplus, paid in

 

1,449,586 

 

1,437,561 

    Deferred contribution plan - employee stock

  

 

 

 

      ownership plan

  

(34,766)

 

(46,884)

    Retained earnings

 

862,660 

 

504,301 

    Accumulated other comprehensive income

 

4,498 

 

19,987 

    Treasury stock, 19,684,249 shares in 2006

 

 

 

 

      and 19,645,511 shares in 2005

  

(360,900)

 

(360,210)

  Common Shareholders' Equity

  

2,798,179 

 

2,429,244 

Total Capitalization

 

5,874,814 

 

5,572,732 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Capitalization

 

$           11,303,236 

 

$           12,567,875 

 

  

 

 

 

 

 

 

 

 

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 it 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/(LOSS)

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31,

 

2006

 

2005

 

 

(Thousands of Dollars, except share information)

 

 

 

 

 

Operating Revenues

  

$                      1,483,156 

 

$                      1,878,224 

 

 

 

 

 

Operating Expenses:

  

 

 

 

  Operation -

  

 

 

 

    Fuel, purchased and net interchange power

  

930,914 

 

1,346,749 

    Other

  

302,872 

 

270,113 

    Restructuring and impairment charges

 

- 

 

15,682 

  Maintenance

  

50,436 

 

41,545 

  Depreciation

  

60,875 

 

57,327 

  Amortization

  

(32,463)

 

75,928 

  Amortization of rate reduction bonds

  

46,411 

 

43,327 

  Taxes other than income taxes

  

57,534 

 

59,506 

       Total operating expenses

  

1,416,579 

 

1,910,177 

Operating Income/(Loss)

  

66,577 

 

(31,953)

 

 

 

 

 

Interest Expense:

  

 

 

 

  Interest on long-term debt

  

39,054 

 

34,886 

  Interest on rate reduction bonds

  

17,182 

 

20,664 

  Other interest

  

4,112 

 

4,577 

        Interest expense, net

  

60,348 

 

60,127 

Other Income, Net

 

28,692 

 

22,242 

Income/(Loss) from Continuing Operations Before

 

 

 

 

  Income Tax Expense/(Benefit)

  

34,921 

 

(69,838)

Income Tax Expense/(Benefit)

  

3,658 

 

(56,067)

 Income/(Loss) from Continuing Operations Before

 

 

 

 

  Preferred Dividends of Subsidiary

  

31,263 

 

(13,771)

Preferred Dividends of Subsidiary

 

1,390 

 

1,390 

Income/(Loss) from Continuing Operations

 

29,873 

 

 (15,161)

Discontinued Operations:

 

 

 

 

  (Loss)/Income from Discontinued Operations Before Income Taxes

 

 (9,921)

 

3,957 

  Gain/(Loss) from Sale of Discontinued Operations

 

510,736 

 

 (1,123)

  Income Tax Expense

 

(183,695)

 

(241)

Income from Discontinued Operations

 

317,120 

 

2,593 

Income/(Loss) Before Cumulative Effect of Accounting Change, Net of Tax Benefit

 

346,993 

 

 (12,568)

Cumulative effect of accounting change, net of tax benefit of $689

 

                    - 

 

 (1,005)

Net Income/(Loss)

 

$                         346,993 

 

$                         (13,573)

 

 

 

 

 

Basic Earnings/(Loss) Per Common Share:

 

 

 

 

Income/(Loss) from Continuing Operations

 

$                               0.19 

 

$                             (0.08)

Income/(Loss) from Discontinued Operations

 

2.06 

 

 (0.01)

Cumulative Effect of Accounting Change, Net of Tax Benefit

 

- 

 

 (0.01)

Basic Earnings/(Loss) Per Common Share

 

$                               2.25 

 

$                             (0.10)

 

 

 

 

 

Fully Diluted Earnings/(Loss) Per Common Share:

 

 

 

 

Income/(Loss) from Continuing Operations

 

$                               0.19 

 

$                             (0.08)

Income/(Loss) from Discontinued Operations

 

2.05 

 

 (0.01)

Cumulative Effect of Accounting Change, Net of Tax Benefit

 

- 

 

 (0.01)

Fully Diluted Earnings/(Loss) Per Common Share

 

$                               2.24 

 

$                             (0.10)

 

 

 

 

 

Basic Common Shares Outstanding (weighted average)

 

154,115,281 

 

137,799,257 

Fully Diluted Common Shares Outstanding (weighted average)

 

154,667,384 

 

137,799,257 


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/(LOSS)

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

2006

 

2005

 

2004

 

 

(Thousands of Dollars, except share information)

 

 

 

 

 

 

 

Operating Revenues

  

$     6,884,388 

 

$    7,397,743 

 

$     6,542,038 

 

 

 

 

 

 

 

Operating Expenses:

  

 

 

 

 

 

  Operation -

  

 

 

 

 

 

    Fuel, purchased and net interchange power

  

4,630,798 

 

5,528,600 

 

4,401,175 

    Other

  

1,129,557 

 

1,058,620 

 

938,791 

    Restructuring and impairment charges

  

10,300 

 

44,143 

 

- 

  Maintenance

  

193,975 

 

178,521 

 

163,626 

  Depreciation

  

240,715 

 

225,278 

 

215,063 

  Amortization

  

16,292 

 

202,949 

 

138,271 

  Amortization of rate reduction bonds

  

188,247 

 

176,356 

 

164,915 

  Taxes other than income taxes

  

250,580 

 

247,555 

 

230,793 

       Total operating expenses

  

6,660,464 

 

7,662,022 

 

6,252,634 

Operating Income/(Loss)

  

223,924 

 

(264,279)

 

289,404 

 

 

 

 

 

 

 

Interest Expense:

  

 

 

 

 

 

  Interest on long-term debt

  

151,686 

 

131,870 

 

107,365 

  Interest on rate reduction bonds

  

74,242 

 

87,439 

 

98,899 

  Other interest

  

22,217 

 

19,755 

 

8,762 

        Interest expense, net

  

248,145 

 

239,064 

 

215,026 

Other Income, Net

 

74,501 

 

54,530 

 

22,722 

Income/(Loss) from Continuing Operations Before

 

 

 

 

 

 

  Income Tax (Benefit)/Expense

  

50,280 

 

(448,813)

 

97,100 

Income Tax (Benefit)/Expense

  

(81,429)

 

(187,796)

 

21,765 

Income/(Loss) from Continuing Operations Before

 

 

 

 

 

 

  Preferred Dividends of Subsidiary

  

131,709 

 

(261,017)

 

75,335 

Preferred Dividends of Subsidiary

 

5,559 

 

5,559 

 

5,559 

Income/(Loss) from Continuing Operations

 

126,150 

 

 (266,576)

 

69,776 

Discontinued Operations:

 

 

 

 

 

 

  Income from Discontinued Operations Before Income Taxes

 

44,871 

 

24,327 

 

76,803 

  Gain/(Loss) from Sale of Discontinued Operations

 

502,653 

 

 (1,123)

 

- 

  Income Tax Expense

 

 (203,096)

 

 (9,111)

 

 (29,991)

Income from Discontinued Operations

 

344,428 

 

14,093 

 

46,812 

Income/(Loss) Before Cumulative Effect of Accounting Change, Net of Tax Benefit

 

470,578 

 

 (252,483)

 

116,588 

Cumulative effect of accounting change, net of tax benefit of $689

 

- 

 

 (1,005)

 

- 

Net Income/(Loss)

 

$        470,578 

 

$      (253,488)

 

$        116,588 

 

 

 

 

 

 

 

Basic Earnings/(Loss) Per Common Share:

 

 

 

 

 

 

Income/(Loss) from Continuing Operations

 

$              0.82 

 

$            (2.03)

 

$              0.54 

Income from Discontinued Operations

 

2.24 

 

0.11 

 

0.37 

Cumulative Effect of Accounting Change, Net of Tax Benefit

 

- 

 

 (0.01)

 

- 

Basic Earnings/(Loss) Per Common Share

 

$              3.06 

 

$            (1.93)

 

$              0.91 

 

 

 

 

 

 

 

Fully Diluted Earnings/(Loss) Per Common Share:

 

 

 

 

 

 

Income/(Loss) from Continuing Operations

 

$              0.82 

 

$            (2.03)

 

$              0.54 

Income from Discontinued Operations

 

2.23 

 

0.11 

 

0.37 

Cumulative Effect of Accounting Change, Net of Tax Benefit

 

- 

 

 (0.01)

 

- 

Fully Diluted Earnings/(Loss) Per Common Share

 

$              3.05 

 

$            (1.93)

 

$              0.91 

 

 

 

 

 

 

 

Basic Common Shares Outstanding (weighted average)

 

153,767,527 

 

131,638,953 

 

128,245,860 

Fully Diluted Common Shares Outstanding (weighted average)

 

154,146,669 

 

131,638,953 

 

128,396,076 


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,

2006

 

2005

 

2004

 

 (Thousands of Dollars)

 

 

Operating Activities:

 

 

 

 

 

  Net income/(loss)

$       470,578 

 

$     (253,488)

 

$       116,588 

  Adjustments to reconcile to net cash flows

 

 

 

 

 

   provided by operating activities:

 

 

 

 

 

    Pre-tax (gain)/loss on sale of discontinued operations

 (502,653)

 

1,123 

 

- 

    Restructuring and impairment charges

 (2,282)

 

67,181 

 

- 

    Bad debt expense

29,366 

 

27,528 

 

19,062 

    Depreciation

243,822 

 

237,463 

 

226,906 

    Deferred income taxes

 (204,212)

 

 (202,789)

 

111,710 

    Amortization

16,292 

 

202,949 

 

138,271 

    Amortization of rate reduction bonds

188,247 

 

176,356 

 

164,915 

    Amortization/(deferral) of recoverable energy costs

15,609 

 

39,914 

 

 (22,751)

    Pension expense

38,677 

 

42,662 

 

10,636 

Wholesale contract buyout payments

- 

 

 (186,531)

 

- 

    Regulatory refunds

 (96,560)

 

 (65,236)

 

 (150,119)

    Derivative assets and liabilities

 (98,685)

 

443,351 

 

85,592 

    Deferred contractual obligations

 (90,671)

 

 (89,464)

 

 (56,161)

    Other non-cash adjustments

22,675 

 

45,112 

 

 (30,053)

    Other sources of cash

10,655 

 

5,528 

 

24,545 

    Other uses of cash

 (10,134)

 

- 

 

 (10,189)

  Changes in current assets and liabilities:

 

 

 

 

 

    Receivables and unbilled revenues, net

605,366 

 

 (208,519)

 

 (103,983)

    Fuel, materials and supplies

16,718 

 

 (17,848)

 

 (31,104)

    Investments in securitizable assets

 (158,651)

 

 (113,410)

 

27,074 

    Other current assets

58,350 

 

46,462 

 

 (9,387)

    Accounts payable

 (399,386)

 

131,043 

 

124,437 

    Counterparty deposits and margin special deposits

26,469 

 

 (86,229)

 

 (18,107)

    Accrued taxes/(taxes receivable)

271,477 

 

156,630 

 

 (112,300)

    Other current liabilities

 (43,993)

 

41,416 

 

 (44,935)

Net cash flows provided by operating activities

407,074 

 

441,204 

 

460,647 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

  Investments in property and plant:

 

 

 

 

 

    Electric, gas and other utility plant

 (847,404)

 

 (752,124)

 

 (653,948)

    Competitive energy assets

 (24,777)

 

 (23,231)

 

 (17,527)

  Cash flows used for investments in property and plant

 (872,181)

 

 (775,355)

 

 (671,475)

  Net proceeds from sales of competitive businesses

1,053,099 

 

31,456 

 

- 

  Cash payments for sales of competitive businesses

 (32,359)

 

- 

 

- 

  Proceeds from sales of investment securities

193,459 

 

137,099 

 

106,217 

  Purchases of investment securities

 (193,917)

 

 (142,260)

 

 (171,511)

  Restricted cash - LMP costs

- 

 

- 

 

93,630 

  Rate reduction bond escrow

 (47,071)

 

 (6,421)

 

3,874 

  Other investing activities

16,034 

 

55,936 

 

3,847 

Net cash flows provided by/(used in) investing activities

117,064 

 

 (699,545)

 

 (635,418)

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

  Issuance of common shares

9,494 

 

450,827 

 

10,937 

  Issuance of long-term debt

250,000 

 

350,355 

 

512,762 

  Retirement of rate reduction bonds

 (173,344)

 

 (195,988)

 

 (183,470)

  (Decrease)/increase in short-term debt

 (32,000)

 

 (148,000)

 

75,000 

  Reacquisitions and retirements of long-term debt

 (28,843)

 

 (98,056)

 

 (155,532)

  Cash dividends on common shares

 (112,745)

 

 (87,554)

 

 (80,177)

  Other financing activities

 (571)

 

 (14,450)

 

 (1,132)

Net cash flows (used in)/provided by financing activities

 (88,009)

 

257,134 

 

178,388 

Net increase/(decrease) in cash and cash equivalents

436,129 

 

 (1,207)

 

3,617 

Cash and cash equivalents - beginning of year

45,782 

 

46,989 

 

43,372 

Cash and cash equivalents - end of year

$      481,911 

 

$         45,782 

 

$         46,989 


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.