Exhibit 99.1
Contact:
Name: Phil Lembo or John Gavin
Phone: (781) 441-8338
For Immediate Release July 24, 2003
NSTAR Reports Second Quarter Results for 2003
Boston, MA -- NSTAR (NYSE: NST) today reported earnings available
for common shareholders of $39.2 million, or $0.74 and $0.73 per
basic and diluted common share, respectively, for the second
quarter of 2003, compared to $5.2 million, or $0.10 per basic and
diluted share for the same period in 2002. Results for 2002
included a non-cash after-tax charge of $27.6 million, or $0.52
per share, related to the impairment of NSTAR's investment in RCN
Corporation.
The earnings improvement for the quarter reflects an increase in
electric revenue and a decline in operations and maintenance
costs that was partially offset by an increase in costs for
pension and other postretirement benefits.
Chairman, President and Chief Executive Thomas J. May said,
"Coming off a very positive year regarding our service quality
measures, we are on track during the first half of 2003 to attain
similar results." May added, we completed significant upgrades
to several substations in our electric distribution system.
These upgrades, along with other improvements that we continue to
make, will help to ensure that our system will be able to handle
whatever the summer brings.
For the three months ended June 30, 2003, sales of electricity
and gas increased 2.5% and 18.7%, respectively, as compared to
the same period in 2002.
Management maintains its previous guidance for earnings for the
year 2003 at a range of $3.35 - $3.45 per basic share.
Profile
NSTAR, headquartered in Boston, is an energy delivery company
with revenues of approximately $3 billion and assets of $6
billion that serves 1.4 million customers in Massachusetts,
including approximately 1.1 million electric customers in 81
communities and 300,000 gas customers in 51 communities. NSTAR's
retail utility subsidiaries are Boston Edison Company,
Commonwealth Electric Company, Cambridge Electric Light Company
and NSTAR Gas Company. NSTAR's three retail electric companies
operate under the brand name "NSTAR Electric." NSTAR also
conducts non-utility, unregulated operations. For more
information, go to www.nstaronline.com.
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Comparative unaudited results for the second quarter and twelve-
month periods were as follows (a):
Financial Data (in thousands, except per share data)
Three months ended June 30:
2003 2002 (b) % Change
Operating revenues $647,910 $593,270 9.2%
Net income $ 39,644 $ 5,690 596.7%
Preferred dividends $ 490 $ 490 -
Earnings per share
Basic $ 0.74 $ 0.10 640.0%
Diluted $ 0.73 $ 0.10 630.0%
Weighted average number of shares:
Basic 53,033 53,033 -
Diluted 53,404 53,331 0.1%
Dividends declared per common share $ 0.54 $ 0.53 1.9%
Twelve months ended June 30:
2003 (c) 2002(b) % Change
Operating revenues $2,804,540 $2,933,537 (4.4)%
Net income $ 205,655 $ 138,231 48.8%
Preferred dividends $ 1,960 $ 3,627 (46.0)%
Earnings per share:
Basic $ 3.84 $ 2.54 51.2%
Diluted $ 3.82 $ 2.53 51.0%
Weighted average number of shares:
Basic 53,033 53,033 -
Diluted 53,321 53,272 0.1%
Dividends declared per common share $ 2.15 $ 2.105 2.1%
(a) More detailed financial information is included in NSTAR's
Current Report on Form 8-K filed with the Securities and
Exchange Commission on July 24, 2003.
(b) Results for the three and twelve-month periods ended June 30,
2002 include a non-cash after-tax impairment charge of $27.6
million, or $0.52 per share, related to NSTAR's investment in RCN
Corporation (RCN). Results for the twelve-month period also
include an after-tax charge of $4.9 million, or $0.09 per share,
related to the shutdown of a district energy facility.
(c) Results for the twelve-month period ended June 30, 2003
include a net tax benefit of $9.9 million, or $0.19 per basic
share, that reflects the recognition of tax benefits of $19.6
million, or $0.37 per basic share, recorded in the fourth quarter
of 2002, related to NSTAR's investment in RCN offset, in part, by
an impairment charge of $9.7 million, or $0.18 per share,
associated with the RCN investment.
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Forward-Looking Statements
This earnings release contains management's guidance, which
constitutes forward-looking statements. Such statements involve
risk and uncertainties. These statements are based on the
current expectations, estimates, or projections of management.
Future performance is likely to vary. Actual results or outcomes
could differ materially as a result of such important factors as
further actions by state and federal regulatory bodies setting
utility rates, adopting or modifying cost recovery, accounting or
rate-setting mechanisms; new laws and regulations, or new
interpretations of existing laws and regulations, relating to
taxes and other matters; changes in prices of electricity and
gas; weather conditions; the ability to expand new businesses;
the impacts of various environmental and legal issues and other
unforeseen events. These statements are based on the current
expectations, estimates, or projections of NSTAR's management and
should not be considered a continuing reaffirmation that our
outlook has not changed. We undertake no obligation to update
any forward-looking statements, whether as a result of new
information, future events or otherwise. You are advised,
however, to consult any further disclosures we make on related
subjects in our reports to the Securities and Exchange
Commission.
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