EX-99 3 nu8kexh992020405brokers.txt 8-K EXHIBIT 99.2 BROKERS STATERMENT 123104 Exhibit 99.2 Northeast Utilities and Subsidiaries ------------------------------------ Consolidated Balance Sheets ---------------------------
December 31, December 31, 2004 2003 ------------ ------------ (Thousands of Dollars) ASSETS ------ Current Assets: Cash and cash equivalents $ 46,989 $ 36,721 Restricted cash - LMP costs - 93,630 Special deposits 66,292 86,636 Investments in securitizable assets 139,391 166,465 Receivables, net 771,257 704,893 Unbilled revenues 144,438 125,881 Taxes receivable 61,337 - Fuel, materials and supplies, at average cost 185,180 146,611 Derivative assets 81,567 116,997 Prepayments and other 154,395 62,316 ----------- ----------- 1,650,846 1,540,150 ----------- ----------- Property, Plant and Equipment: Electric utility 5,918,539 5,465,854 Gas utility 786,545 743,990 Competitive energy 918,183 885,953 Other 241,190 221,986 ----------- ----------- 7,864,457 7,317,783 Less: Accumulated depreciation 2,382,927 2,244,263 ----------- ----------- 5,481,530 5,073,520 Construction work in progress 382,631 356,396 ----------- ----------- 5,864,161 5,429,916 ----------- ----------- Deferred Debits and Other Assets: Regulatory assets 2,733,862 2,974,022 Goodwill 319,986 319,986 Purchased intangible assets, net 19,361 22,956 Prepaid pension 352,750 360,706 Prior spent nuclear fuel trust 49,296 - Derivative assets 198,769 132,812 Other 454,708 455,338 ----------- ----------- 4,128,732 4,265,820 ----------- ----------- Total Assets $11,643,739 $11,235,886 =========== ===========
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. Exhibit 99.2 Northeast Utilities and Subsidiaries ------------------------------------ Consolidated Balance Sheets ---------------------------
December 31, December 31, 2004 2003 ------------ ------------ (Thousands of Dollars) LIABILITIES AND CAPITALIZATION ------------------------------ Current Liabilities: Notes payable to banks $ 180,000 $ 105,000 Long-term debt - current portion 90,759 64,936 Accounts payable 825,247 729,328 Accrued taxes - 50,134 Accrued interest 49,449 41,653 Derivative liabilities 130,275 51,810 Counterparty deposits 57,650 46,496 Other 213,278 202,582 ----------- ----------- 1,546,658 1,291,939 ----------- ----------- Rate Reduction Bonds 1,546,490 1,729,960 ----------- ----------- Deferred Credits and Other Liabilities: Accumulated deferred income taxes 1,451,064 1,287,354 Accumulated deferred investment tax credits 99,124 102,652 Deferred contractual obligations 413,056 469,218 Regulatory liabilities 1,057,830 1,164,786 Derivative liabilities 58,737 61,495 Other 267,895 266,831 ----------- ----------- 3,347,706 3,352,336 ----------- ----------- Capitalization: Long-Term Debt 2,789,974 2,481,331 ----------- ----------- Preferred Stock of Subsidiary - Non-Redeemable 116,200 116,200 ----------- ----------- Common Shareholders' Equity: Common shares, $5 par value - authorized 225,000,000 shares; 151,230,981 shares issued and 129,034,442 shares outstanding in 2004 and 150,398,403 shares issued and 127,695,999 shares outstanding in 2003 756,155 751,992 Capital surplus, paid in 1,116,106 1,108,924 Deferred contribution plan - employee stock ownership plan (60,547) (73,694) Retained earnings 845,343 808,932 Accumulated other comprehensive (loss)/income (1,220) 25,991 Treasury stock, 19,580,065 shares in 2004 and 19,518,023 shares in 2003 (359,126) (358,025) ----------- ----------- Common Shareholders' Equity 2,296,711 2,264,120 ----------- ----------- Total Capitalization 5,202,885 4,861,651 ----------- ----------- Total Liabilities and Capitalization $11,643,739 $11,235,886 =========== ===========
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. Exhibit 99.2 Northeast Utilities and Subsidiaries ------------------------------------ Consolidated Statements of Income ---------------------------------
Three Months Ended December 31, --------------------------- 2004 2003 ----------- ------------ (Thousands of Dollars, Except Share Information) Operating Revenues $ 1,655,761 $ 1,514,818 ----------- ----------- Operating Expenses: Operation - Fuel, purchased and net interchange power 1,034,350 968,886 Other 286,187 266,210 Maintenance 37,256 49,974 Depreciation 57,489 53,344 Amortization 38,214 52,095 Amortization of rate reduction bonds 40,336 37,940 Taxes other than income taxes 53,524 54,069 ----------- ----------- Total operating expenses 1,547,356 1,482,518 ----------- ----------- Operating Income 108,405 32,300 Interest Expense: Interest on long-term debt 38,177 32,763 Interest on rate reduction bonds 23,715 26,271 Other interest 2,232 905 ----------- ----------- Interest expense, net 64,124 59,939 ----------- ----------- Other Income/(Loss), Net 1,748 (6,443) ----------- ----------- Income/(Loss) Before Income Tax Expense/(Benefit) 46,029 (34,082) Income Tax Expense/(Benefit) 11,577 (25,572) ----------- ----------- Income/(Loss)/Before Preferred Dividends of Subsidiary 34,452 (8,510) Preferred Dividends of Subsidiary 1,390 1,390 ----------- ----------- Income/(Loss) Before Cumulative Effect of Accounting Change 33,062 (9,900) Cumulative effect of accounting change, net of tax benefit of $2,553 - - ----------- ----------- Net Income/(Loss) $ 33,062 $ (9,900) =========== =========== Fully Diluted Earnings/(Loss) Per Common Share: Income/(Loss) Before Cumulative Effect of Accounting Change $ 0.26 $ (0.08) Cumulative effect of accounting change, net of tax benefit - - ----------- ----------- Fully Diluted Earnings/(Loss) Per Common Share $ 0.26 $ (0.08) =========== =========== Fully Diluted Common Shares Outstanding (average) 128,889,049 127,768,667 =========== ===========
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.
Twelve Months Ended December 31, --------------------------- 2004 2003 ----------- ------------ (Thousands of Dollars, Except Share Information) Operating Revenues $ 6,686,699 $ 6,069,156 ----------- ----------- Operating Expenses: Operation - Fuel, purchased and net interchange power 4,231,192 3,735,154 Other 1,084,235 938,645 Maintenance 188,111 189,084 Depreciation 224,855 204,388 Amortization 138,271 191,805 Amortization of rate reduction bonds 164,915 153,172 Taxes other than income taxes 242,168 232,672 ----------- ----------- Total operating expenses 6,273,747 5,644,920 ----------- ----------- Operating Income 412,952 424,236 Interest Expense: Interest on long-term debt 139,853 126,259 Interest on rate reduction bonds 98,899 108,359 Other interest 14,762 11,740 ----------- ----------- Interest expense, net 253,514 246,358 ----------- ----------- Other Income/(Loss), Net 14,465 (435) ----------- ----------- Income/(Loss) Before Income Tax Expense/(Benefit) 173,903 177,443 Income Tax Expense/(Benefit) 51,756 50,732 ----------- ----------- Income/(Loss)/Before Preferred Dividends of Subsidiary 122,147 126,711 Preferred Dividends of Subsidiary 5,559 5,559 ----------- ----------- Income/(Loss) Before Cumulative Effect of Accounting Change 116,588 121,152 Cumulative effect of accounting change, net of tax benefit of $2,553 - (4,741) ----------- ----------- Net Income/(Loss) $ 116,588 $ 116,411 =========== =========== Fully Diluted Earnings/(Loss) Per Common Share: Income/(Loss) Before Cumulative Effect of Accounting Change $ 0.91 $ 0.95 Cumulative effect of accounting change, net of tax benefit - (0.04) ----------- ----------- Fully Diluted Earnings/(Loss) Per Common Share $ 0.91 $ 0.91 =========== =========== Fully Diluted Common Shares Outstanding (average) 128,396,076 127,240,724 =========== ===========
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. Exhibit 99.2 Northeast Utilities and Subsidiaries ------------------------------------ Consolidated Statements of Cash Flows -------------------------------------
Twelve Months Ended December 31, ---------------------------- 2004 2003 ----------- ------------- (Thousands of Dollars) Operating Activities: Income before preferred dividends of subsidiaries $ 122,147 $ 126,711 Adjustments to reconcile to net cash flows provided by operating activities: Depreciation 224,855 204,388 Deferred income taxes and investment tax credits, net 111,710 (134,604) Amortization 138,271 191,805 Amortization of rate reduction bonds 164,915 153,172 (Deferral)/amortization of recoverable energy costs (22,751) 20,486 Decrease/(increase) in prepaid pension 10,556 (16,416) Cumulative effect of accounting change - (4,741) Regulatory (refunds)/overrecoveries (174,815) 287,974 Other sources of cash 29,007 79,250 Other uses of cash (55,175) (304,331) Changes in current assets and liabilities: Restricted cash - LMP costs 93,630 (93,630) Receivables and unbilled revenues, net (84,922) 62,551 Fuel, materials and supplies (38,569) (26,758) Investments in securitizable assets 27,074 12,443 Other current assets (112,653) 41,197 Accounts payable 95,919 (30,001) Accrued taxes (50,134) (84,371) Other current liabilities 120,257 87,972 ---------- --------- Net cash flows provided by operating activities 599,322 573,097 ---------- --------- Investing Activities: Investments in property and plant: Electric, gas and other utility plant (603,900) (547,651) Competitive energy assets (35,100) (17,707) ---------- --------- Cash flows used for investments in property and plant (639,000) (565,358) Buyout/buydown of IPP contracts - (20,437) Investment in prior spent nuclear fuel trust (49,296) - CVEC acqusition special deposits - (30,104) Other investment activities (44,108) 37,098 ---------- --------- Net cash flows used in investing activities (732,404) (578,801) ---------- --------- Financing Activities: Issuance of common shares 10,937 13,654 Repurchase of common shares - (20,537) Issuance of long-term debt 512,762 268,368 Issuance of rate reduction bonds - - Retirement of rate reduction bonds (183,470) (169,352) Increase in short-term debt 75,000 49,000 Reacquisitions and retirements of long-term debt (185,011) (65,600) Cash dividends on preferred stock of subsidiaries (5,559) (5,559) Cash dividends on common shares (80,177) (73,090) Other financing activities (1,132) (4,792) ---------- --------- Net cash flows provided by/(used in) financing activities 143,350 (7,908) ---------- --------- Net increase in cash and cash equivalents 10,268 (13,612) Cash and cash equivalents - beginning of period 36,721 50,333 ---------- --------- Cash and cash equivalents - end of period $ 46,989 $ 36,721 ========== =========
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 connection with any purchase or sale of securities.