Hawaiian Electric Industries Reports 2014 Year-End & Fourth Quarter Earnings
2014 Net Income of $168.3 Million;
2014 Diluted Earnings Per Share (EPS) of $1.64 and Core EPS[1] of $1.68
Fourth Quarter Net Income of $33.2 Million; EPS of $0.32 and Core EPS[1] of $0.36
Results In Line with EPS Guidance
HONOLULU, Feb. 12, 2015 /PRNewswire/ --
Selected 2014 Highlights:
- Reported net income of $168.3 million vs $161.5 million in 2013, up 4%;
Core net income[1] of $173.2 million vs $161.5 million in 2013, up 7% - Reported EPS of $1.64 vs $1.62 in 2013, up 1%;
Core EPS[1] of $1.68 vs $1.62 in 2013, up 4% - Reported ROE of 9.6%;Core ROE[1] of 9.8%
- 114-year history of continuous dividends
- Continued legacy of delivering value for customers and Hawaii:
- Record 21%[2] of electricity used by Hawaiian Electric customers generated from renewable sources
- Surpassed Hawaii's 2015 renewable portfolio standard of 15%
- Avoided-oil equivalent purchase of 2 million barrels which would have cost our state approximately $259 million[3] in imported oil in 2014
- Led the nation in the integration of customer-sited solar: 13% of Oahu residential customers and 12% of all of our residential customers using rooftop solar by the end of 2014
- Filed utility's Power Supply Improvement Plan (PSIP) proposals with the Hawaii Public Utilities Commission in 2014 to:
- Lower electric bills by 20 percent by 2030
- Increase renewable energy to more than 65 percent by 2030
- Triple the amount of distributed solar by 2030
- Offer customers expanded products and services
- Limited other operations and maintenance (O&M) expense[4] increases to 1% over the 2013 level, less than the 2014 anticipated Honolulu inflation rate of 1.5%, while accommodating approximately $12 million in additional costs associated with strategic initiatives and storm recovery
- Bank provided over $1.5 billion of credit to consumers and businesses and originated over 3,600 mortgages
- Bank credit quality excellent with net charge offs of only 1 basis point on a loan book of $4.4 billion
- Contributed over 16,000 volunteer hours and over $2 million of charitable contributions to community organizations
- Announced plans for Hawaiian Electric Industries (HEI) and NextEra Energy to combine, as well as plans to spin off ASB Hawaii, the parent company of American Saving Bank, into a new, publicly traded company, mutually contingent upon the closing of the proposed combination of HEI and NextEra Energy
- Record 21%[2] of electricity used by Hawaiian Electric customers generated from renewable sources
Hawaiian Electric Industries, Inc. (NYSE - HE) today reported 2014 year-end consolidated net income for common stock of $168.3 million, or diluted earnings per share (EPS) of $1.64. For the fourth quarter of 2014, consolidated net income for common stock was $33.2 million, or $0.32 EPS. Excluding $4.9 million after-tax of merger-related costs associated with the pending merger with NextEra Energy, Inc. and the spin-off of ASB Hawaii, core earnings[1] for 2014 were $173.2 million or $1.68 EPS, compared to $161.5 million or $1.62 EPS in 2013. For the fourth quarter of 2014, core earnings[1] were $37.5 million or $0.36 EPS compared to $39.0 million or $0.39 EPS for the same quarter last year.
"We continued to grow our businesses in steady fashion and delivered a competitive core return on equity[1] of 9.8% for the year as HEI's combination of companies continues to provide us with the financial resources to efficiently invest in future opportunities," said Constance Lau, HEI president and chief executive officer. "Our utility continued to invest in the modernization and improvement of our electric grid as we integrated more renewable energy. These investments helped us achieve an energy portfolio powered by 21% renewable sources in 2014, far in excess of Hawaii's 2015 RPS target of 15%. Thirteen percent of Oahu residential customers now have customer-sited solar, a rate of integration that leads the nation. Even as recent oil price decreases have brought our customers bill relief, we remain focused on further reducing costs for our customers with proposed grid-scale solar and wind projects. We also are working with other stakeholders to bring liquefied natural gas to Hawaii as a cleaner, lower-cost alternative to oil while we continue to aggressively pursue more renewable generation sources. Furthermore, as we did earlier in 2014 for Hawaiian Electric, we recently filed our abbreviated rate case for Maui Electric in which we offered to forgo the opportunity to request additional base revenues."
"Our bank delivered solid financial results in 2014 in a challenging regulatory and interest rate environment. We produced strong loan growth while improving credit quality and maintaining healthy capital levels. Our bank continues to improve the ways it delivers to its customers and is poised in 2015 to continue growing its balance sheet and earnings," said Lau.
"Last December we announced our proposed merger with NextEra Energy, and we are looking forward to working with NextEra Energy as a partner to help accelerate Hawaii's clean energy transformation. We also announced the related spin off of American Savings Bank, and we are very confident that American, as a new, publicly-traded entity, will remain a strong community bank for Hawaii," added Lau.
HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH EXPECTATIONS
Full Year Results:
Hawaiian Electric Company's[5] full-year 2014 net income was $137.6 million compared to $122.9 million in 2013. The $14.7 million increase from the prior year was driven by the following items on an after-tax basis:
- Net revenues[6] were $31 million higher compared to the prior year primarily due to $29 million in 2014 revenues attributable to the recovery of costs for clean energy and reliability investments and a $3 million refund to Maui Electric customers which reduced 2013 revenues, partially offset by $1 million due to reduced fuel efficiency performance; and
- Higher allowance for funds used during construction of $1 million.
These increases were partially offset by the following on an after-tax basis:
- $8 million higher depreciation expense in 2014 as a result of increasing investments for the integration of more renewable energy, improved customer reliability and greater system efficiency;
- O&M expenses[4] were $3 million higher in 2014 compared to the prior year. However, excluding the unanticipated Tropical Storm Iselle restoration expenses and consulting costs associated with our energy transformation plans, O&M expenses for 2014 would have decreased by approximately $4 million compared to the prior year. Included in 2014 O&M expenses were grid modernization program costs for smart grid installations and the upgrade of our customer information system which were more than offset by lower customer services expenses, lower overhaul costs due to reduced scope of work and savings from the deactivation of generating units compared to the prior year;
- Higher interest expense and other charges, net of $3 million in 2014, including lower revenue balancing account (RBA) interest income of $2 million primarily due to the lower interest rates applied; and
- A favorable deferred income tax adjustment of $3 million recorded in 2013 related to prior years.
Fourth Quarter Results:
Fourth quarter 2014 net income was $29.1 million compared to $32.0 million in the fourth quarter of 2013. The $2.9 million decline from the prior year quarter was primarily driven by the following items on an after-tax basis:
- O&M expenses[4] were $8 million higher in the fourth quarter of 2014 compared to the prior quarter. This is largely due to no major overhauls in the fourth quarter of 2013, consulting costs associated with our energy transformation plans, the customer information system upgrade, and the initial phase of our smart grid installations as part of our grid modernization program, partially offset by the savings from the deactivation of generating units; and
- Depreciation expense in the fourth quarter of 2014 was $2 million higher than the prior year quarter due to increases in utility property, plant and equipment.
These increases were partially offset by the following on an after-tax basis:
- Net revenues[6] were $6 million higher compared to the prior year quarter primarily due to 2014 revenues attributable to the recovery of costs for clean energy and reliability investments; and
- Tax-related items of $1 million.
AMERICAN SAVINGS BANK: SOLID PERFORMANCE AND LOAN GROWTH
Full Year Results:
American Savings Bank's (American) net income for 2014 was $51.5 million compared to $57.5 million in 2013. Lower 2014 earnings compared to the prior year reflected the continued impact of regulatory changes and the low interest rate environment. The primary drivers impacting net income for the year were as follows on an after-tax basis:
- $7 million lower noninterest income primarily due to lower mortgage banking income related to the decline in refinancing volume, lower interchange fees as a result of rate caps mandated by the Durbin Amendment, which became effective for American in July 2013, and the gain reflected in the prior year related to the sale of the credit card portfolio;
- $3 million higher provision for loan losses due primarily to normal growth in the loan portfolio and the $1 million release of reserves in 2013 related to the sale of the credit card portfolio; and
- $3 million higher net interest income as contributions from loan growth more than offset the lower yields on loans.
American achieved strong loan growth of 6.8% in 2014 despite the competitive Hawaii market environment, and credit quality improved with the 2014 net charge-off ratio of 0.01% of average loans compared to 0.09% in 2013. Total deposits were $4.6 billion at December 31, 2014, an increase of $251 million from December 31, 2013.
Overall, American's return on average equity for the full year remained solid at 9.6% in 2014 compared to 11.4% in 2013, and the return on average assets was 0.95% in 2014 compared to 1.13% in 2013.
Fourth Quarter Results:
Fourth quarter 2014 net income of $12.0 million was $1.2 million lower than the linked quarter and $0.2 million lower than the same quarter of 2013. Compared to the linked quarter of 2014, the $1.2 million net income decline was primarily driven by the following on an after-tax basis:
- $1 million higher noninterest expense largely attributable to the settlement of a purported class action lawsuit related to overdraft fees on debit card transactions and costs related to the strategic designation of a new corporate campus in Honolulu;
- $1 million higher provision for loan losses related to loan growth in the quarter; and
- $1 million of higher net interest income primarily due to loan growth.
American's fourth quarter 2014 return on average equity was 8.8%, compared to 9.9% in the linked quarter and 9.6% in the same quarter last year. Return on average assets was 0.87% for the fourth quarter of 2014, compared to 0.98% from the linked quarter and 0.94% in the same quarter last year.
Also refer to the American news release issued on January 30, 2015.
HOLDING AND OTHER COMPANIES
The holding and other companies' net losses were $20.8 million in 2014 compared to $18.9 million in 2013. Fourth quarter net losses were $8.0 million in 2014 compared to $5.2 million in the fourth quarter 2013. The full year 2014 and the fourth quarter 2014 net loss included $4.9 million after-tax and $4.3 million after-tax, respectively, of costs related to the pending merger with NextEra Energy, Inc. and expenses incurred in connection with plans to spin off ASB Hawaii. Excluding the pending merger-related costs, the full year and the fourth quarter 2014 net loss declined primarily due to lower interest expense compared to 2013.
WEBCAST AND CONFERENCE CALL
HEI TO ANNOUNCE 2015 EPS GUIDANCE IN EARNINGS CONFERENCE CALL
Hawaiian Electric Industries, Inc. will conduct a webcast and conference call to review its 2014 earnings on Thursday, February 12, 2015, at 12:00 noon Hawaii time (5:00 p.m. Eastern time). HEI will announce 2015 EPS guidance during the scheduled webcast and conference call.
Interested parties may listen to the conference by calling (800) 884-5695 and entering passcode: 41634040, or by accessing the webcast on HEI's website at www.hei.com under the heading "Investor Relations." HEI and Hawaiian Electric Company intend to continue to use HEI's website, www.hei.com, as a means of disclosing additional information. Such disclosures will be included on HEI's website in the Investor Relations section. Accordingly, investors should routinely monitor such portions of HEI's website, in addition to following HEI's, Hawaiian Electric Company's and American's press releases, HEI's and Hawaiian Electric Company's Securities and Exchange Commission (SEC) filings and HEI's public conference calls and webcasts. The information on HEI's website is not incorporated by reference in this document or in HEI's and Hawaiian Electric Company's SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms in order to review documents filed with and issued by the PUC. No information on the PUC website is incorporated by reference in this document or in HEI's and Hawaiian Electric Company's SEC filings.
An online replay of the webcast will be available at the same website beginning about four hours after the event and will remain on HEI's website for 12 months. Replays of the conference call will also be available approximately four hours after the event through February 26, 2015, by dialing (888) 286-8010, passcode: 65598214.
HEI supplies power to approximately 450,000 customers or 95% of Hawaii's population through its electric utilities, Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited and provides a wide array of banking and other financial services to consumers and businesses through American Savings Bank, one of Hawaii's largest financial institutions.
NON-GAAP MEASURES
See "Explanation of HEI's Use of Certain Unaudited Non-GAAP Measures" and related reconciliations on page 17 of this release.
FORWARD-LOOKING STATEMENTS
This release may contain "forward-looking statements," which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as "expects," "anticipates," "intends," "plans," "believes," "predicts," "estimates" or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this release should be read in conjunction with the "Forward-Looking Statements" and "Risk Factors" discussions (which are incorporated by reference herein) set forth in HEI's Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 and HEI's future periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric Company, American and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
| [1] |
Non-GAAP measure which excludes $4.9 million and $4.3 million of merger-related costs after-tax for the full year 2014 and for the fourth quarter of 2014, respectively. See the "Explanation of HEI's Use of Certain Unaudited Non-GAAP measures" and the related reconciliation. |
| [2] |
Based upon preliminary Renewable Portfolio Standard information as of 12/31/14. |
| [3] |
Estimate based on the 2014 average price per barrel of $129.65. |
| [4] |
Excludes net income neutral expenses covered by surcharges or by third parties of $10 million and $8 million for the full year 2014 and 2013, respectively, and $3 million in both the fourth quarter of 2014 and 2013. See "Explanation of HEI's Use of Certain Unaudited Non-GAAP measures" and the related reconciliation. |
| [5] |
Hawaiian Electric Company, unless otherwise defined, refers to the three utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc. |
| [6] |
Net revenues represent the after-tax impact of "Revenues" less the following expenses which are largely pass through items in revenues: "fuel oil," "purchased power" and "taxes, other than income taxes" as shown on the Hawaiian Electric Company, Inc. and Subsidiaries' Consolidated Statements of Income. |
| Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||||||||||
| Three months ended December 31 |
Years ended December 31 |
|||||||||||||||
| (in thousands, except per share amounts) |
2014 |
2013 |
2014 |
2013 |
||||||||||||
| Revenues |
||||||||||||||||
| Electric utility |
$ |
725,267 |
$ |
770,152 |
$ |
2,987,323 |
$ |
2,980,172 |
||||||||
| Bank |
64,726 |
62,306 |
252,497 |
258,147 |
||||||||||||
| Other |
47 |
45 |
(278) |
151 |
||||||||||||
| Total revenues |
790,040 |
832,503 |
3,239,542 |
3,238,470 |
||||||||||||
| Expenses |
||||||||||||||||
| Electric utility |
666,389 |
704,588 |
2,711,555 |
2,734,659 |
||||||||||||
| Bank |
47,350 |
44,540 |
176,878 |
171,090 |
||||||||||||
| Other |
9,060 |
5,026 |
22,185 |
17,302 |
||||||||||||
| Total expenses |
722,799 |
754,154 |
2,910,618 |
2,923,051 |
||||||||||||
| Operating income (loss) |
||||||||||||||||
| Electric utility |
58,878 |
65,564 |
275,768 |
245,513 |
||||||||||||
| Bank |
17,376 |
17,766 |
75,619 |
87,057 |
||||||||||||
| Other |
(9,013) |
(4,981) |
(22,463) |
(17,151) |
||||||||||||
| Total operating income |
67,241 |
78,349 |
328,924 |
315,419 |
||||||||||||
| Interest expense, net—other than on deposit liabilities and other bank borrowings |
(17,704) |
(19,263) |
(76,352) |
(75,479) |
||||||||||||
| Allowance for borrowed funds used during construction |
702 |
620 |
2,579 |
2,246 |
||||||||||||
| Allowance for equity funds used during construction |
1,838 |
1,531 |
6,771 |
5,561 |
||||||||||||
| Income before income taxes |
52,077 |
61,237 |
261,922 |
247,747 |
||||||||||||
| Income taxes |
18,447 |
21,751 |
91,712 |
84,341 |
||||||||||||
| Net income |
33,630 |
39,486 |
170,210 |
163,406 |
||||||||||||
| Preferred stock dividends of subsidiaries |
473 |
473 |
1,890 |
1,890 |
||||||||||||
| Net income for common stock |
$ |
33,157 |
$ |
39,013 |
$ |
168,320 |
$ |
161,516 |
||||||||
| Basic earnings per common share |
$ |
0.32 |
$ |
0.39 |
$ |
1.65 |
$ |
1.63 |
||||||||
| Diluted earnings per common share |
$ |
0.32 |
$ |
0.39 |
$ |
1.64 |
$ |
1.62 |
||||||||
| Dividends per common share |
$ |
0.31 |
$ |
0.31 |
$ |
1.24 |
$ |
1.24 |
||||||||
| Weighted-average number of common shares outstanding |
102,561 |
99,853 |
101,968 |
98,968 |
||||||||||||
| Adjusted weighted-average shares |
103,991 |
100,525 |
102,937 |
99,623 |
||||||||||||
| Net income (loss) for common stock by segment |
||||||||||||||||
| Electric utility |
$ |
29,112 |
$ |
31,990 |
$ |
137,641 |
$ |
122,929 |
||||||||
| Bank |
12,017 |
12,184 |
51,492 |
57,534 |
||||||||||||
| Other |
(7,972) |
(5,161) |
(20,813) |
(18,947) |
||||||||||||
| Net income for common stock |
$ |
33,157 |
$ |
39,013 |
$ |
168,320 |
$ |
161,516 |
||||||||
| Comprehensive income attributable to Hawaiian Electric Industries, Inc. |
$ |
19,773 |
$ |
57,949 |
$ |
157,692 |
$ |
171,189 |
||||||||
| Return on average common equity |
9.6% |
9.7% |
||||||||||||||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2014 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, as updated by SEC Forms 8-K. |
| Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
| December 31 |
2014 |
2013 |
||||||
| (dollars in thousands) |
||||||||
| Assets |
||||||||
| Cash and cash equivalents |
$ |
175,542 |
$ |
220,036 |
||||
| Accounts receivable and unbilled revenues, net |
313,696 |
346,785 |
||||||
| Available-for-sale investment securities |
550,394 |
529,007 |
||||||
| Stock in Federal Home Loan Bank of Seattle, at cost |
69,302 |
92,546 |
||||||
| Loans receivable held for investment, net |
4,389,033 |
4,110,113 |
||||||
| Loans held for sale, at lower of cost or fair value |
8,424 |
5,302 |
||||||
| Property, plant and equipment, net of accumulated depreciation of $2,250,950 and $2,192,422 at the respective dates |
4,148,774 |
3,865,514 |
||||||
| Regulatory assets |
905,264 |
575,924 |
||||||
| Other |
541,542 |
512,627 |
||||||
| Goodwill |
82,190 |
82,190 |
||||||
| Total assets |
$ |
11,184,161 |
$ |
10,340,044 |
||||
| Liabilities and shareholders' equity |
||||||||
| Liabilities |
||||||||
| Accounts payable |
$ |
186,425 |
$ |
212,331 |
||||
| Interest and dividends payable |
25,336 |
26,716 |
||||||
| Deposit liabilities |
4,623,415 |
4,372,477 |
||||||
| Short-term borrowings—other than bank |
118,972 |
105,482 |
||||||
| Other bank borrowings |
290,656 |
244,514 |
||||||
| Long-term debt, net—other than bank |
1,506,546 |
1,492,945 |
||||||
| Deferred income taxes |
631,734 |
529,260 |
||||||
| Regulatory liabilities |
344,849 |
349,299 |
||||||
| Contributions in aid of construction |
466,432 |
432,894 |
||||||
| Defined benefit pension and other postretirement benefit plans liability |
632,845 |
288,539 |
||||||
| Other |
531,230 |
524,224 |
||||||
| Total liabilities |
9,358,440 |
8,578,681 |
||||||
| Preferred stock of subsidiaries - not subject to mandatory redemption |
34,293 |
34,293 |
||||||
| Shareholders' equity |
||||||||
| Preferred stock, no par value, authorized 10,000,000 shares; issued: none |
— |
— |
||||||
| Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 102,565,266 shares and 101,259,800 shares at the respective dates |
1,521,297 |
1,488,126 |
||||||
| Retained earnings |
297,509 |
255,694 |
||||||
| Accumulated other comprehensive loss, net of tax benefits |
(27,378) |
(16,750) |
||||||
| Total shareholders' equity |
1,791,428 |
1,727,070 |
||||||
| Total liabilities and shareholders' equity |
$ |
11,184,161 |
$ |
10,340,044 |
||||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2014 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, as updated by SEC Forms 8-K. |
| Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
| Years ended December 31 |
2014 |
2013 |
|||||
| (in thousands) |
|||||||
| Cash flows from operating activities |
|||||||
| Net income |
$ |
170,210 |
$ |
163,406 |
|||
| Adjustments to reconcile net income to net cash provided by operating activities |
|||||||
| Depreciation of property, plant and equipment |
172,762 |
160,061 |
|||||
| Other amortization |
8,476 |
4,667 |
|||||
| Provision for loan losses |
6,126 |
1,507 |
|||||
| Loans receivable originated and purchased, held for sale |
(155,755) |
(249,022) |
|||||
| Proceeds from sale of loans receivable, held for sale |
155,030 |
273,775 |
|||||
| Gain on sale of credit card portfolio |
— |
(2,251) |
|||||
| Increase in deferred income taxes |
59,184 |
80,399 |
|||||
| Excess tax benefits from share-based payment arrangements |
(277) |
(430) |
|||||
| Allowance for equity funds used during construction |
(6,771) |
(5,561) |
|||||
| Change in cash overdraft |
(1,038) |
1,038 |
|||||
| Changes in assets and liabilities |
|||||||
| Decrease in accounts receivable and unbilled revenues, net |
33,089 |
16,038 |
|||||
| Decrease in fuel oil stock |
28,041 |
27,332 |
|||||
| Increase in regulatory assets |
(17,000) |
(65,461) |
|||||
| Decrease in accounts, interest and dividends payable |
(92,294) |
(23,153) |
|||||
| Change in prepaid and accrued income taxes and utility revenue taxes |
12,845 |
(19,406) |
|||||
| Increase (decrease) in defined benefit pension and other postretirement benefit plans liability |
22,251 |
(33,014) |
|||||
| Change in other assets and liabilities |
(93,400) |
(2,779) |
|||||
| Net cash provided by operating activities |
301,479 |
327,146 |
|||||
| Cash flows from investing activities |
|||||||
| Available-for-sale investment securities purchased |
(183,778) |
(112,654) |
|||||
| Principal repayments on available-for-sale investment securities |
91,013 |
158,558 |
|||||
| Proceeds from sale of available-for-sale investment securities |
79,564 |
71,367 |
|||||
| Redemption of stock from Federal Home Loan Bank of Seattle |
23,244 |
3,476 |
|||||
| Net increase in loans held for investment |
(283,810) |
(398,426) |
|||||
| Proceeds from sale of real estate acquired in settlement of loans |
3,213 |
9,212 |
|||||
| Capital expenditures |
(339,721) |
(353,879) |
|||||
| Contributions in aid of construction |
41,806 |
32,160 |
|||||
| Proceeds from sale of credit card portfolio |
— |
26,386 |
|||||
| Other |
(39) |
40 |
|||||
| Net cash used in investing activities |
(568,508) |
(563,760) |
|||||
| Cash flows from financing activities |
|||||||
| Net increase in deposit liabilities |
250,938 |
142,561 |
|||||
| Net increase in short-term borrowings with original maturities of three months or less |
13,490 |
21,789 |
|||||
| Net decrease in retail repurchase agreements |
(9,465) |
(1,418) |
|||||
| Proceeds from other bank borrowings |
130,601 |
130,000 |
|||||
| Repayments of other bank borrowings |
(75,000) |
(80,000) |
|||||
| Proceeds from issuance of long-term debt |
125,000 |
286,000 |
|||||
| Repayment of long-term debt |
(111,400) |
(216,000) |
|||||
| Excess tax benefits from share-based payment arrangements |
277 |
430 |
|||||
| Net proceeds from issuance of common stock |
26,898 |
55,086 |
|||||
| Common stock dividends |
(126,458) |
(98,383) |
|||||
| Preferred stock dividends of subsidiaries |
(1,890) |
(1,890) |
|||||
| Other |
(456) |
(1,187) |
|||||
| Net cash provided by financing activities |
222,535 |
236,988 |
|||||
| Net increase (decrease) in cash and cash equivalents |
(44,494) |
374 |
|||||
| Cash and cash equivalents, January 1 |
220,036 |
219,662 |
|||||
| Cash and cash equivalents, December 31 |
$ |
175,542 |
$ |
220,036 |
|||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2014 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, as updated by SEC Forms 8-K. |
| Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||||||||||
| Three months ended December 31 |
Years ended December 31 |
||||||||||||||
| (dollars in thousands, except per barrel amounts) |
2014 |
2013 |
2014 |
2013 |
|||||||||||
| Revenues |
$ |
725,267 |
$ |
770,152 |
$ |
2,987,323 |
$ |
2,980,172 |
|||||||
| Expenses |
|||||||||||||||
| Fuel oil |
265,696 |
307,814 |
1,131,685 |
1,185,552 |
|||||||||||
| Purchased power |
175,887 |
184,012 |
722,008 |
710,681 |
|||||||||||
| Other operation and maintenance |
115,129 |
102,547 |
410,612 |
403,270 |
|||||||||||
| Depreciation |
41,597 |
38,160 |
166,387 |
154,025 |
|||||||||||
| Taxes, other than income taxes |
68,080 |
72,055 |
280,863 |
281,131 |
|||||||||||
| Total expenses |
666,389 |
704,588 |
2,711,555 |
2,734,659 |
|||||||||||
| Operating income |
58,878 |
65,564 |
275,768 |
245,513 |
|||||||||||
| Allowance for equity funds used during construction |
1,838 |
1,531 |
6,771 |
5,561 |
|||||||||||
| Interest expense and other charges, net |
(15,768) |
(15,319) |
(64,757) |
(59,279) |
|||||||||||
| Allowance for borrowed funds used during construction |
702 |
620 |
2,579 |
2,246 |
|||||||||||
| Income before income taxes |
45,650 |
52,396 |
220,361 |
194,041 |
|||||||||||
| Income taxes |
16,039 |
19,907 |
80,725 |
69,117 |
|||||||||||
| Net income |
29,611 |
32,489 |
139,636 |
124,924 |
|||||||||||
| Preferred stock dividends of subsidiaries |
229 |
229 |
915 |
915 |
|||||||||||
| Net income attributable to Hawaiian Electric |
29,382 |
32,260 |
138,721 |
124,009 |
|||||||||||
| Preferred stock dividends of Hawaiian Electric |
270 |
270 |
1,080 |
1,080 |
|||||||||||
| Net income for common stock |
$ |
29,112 |
$ |
31,990 |
$ |
137,641 |
$ |
122,929 |
|||||||
| Comprehensive income attributable to Hawaiian Electric |
$ |
28,517 |
$ |
33,516 |
$ |
137,078 |
$ |
124,507 |
|||||||
| OTHER ELECTRIC UTILITY INFORMATION |
|||||||||||||||
| Kilowatthour sales (millions) |
|||||||||||||||
| Hawaiian Electric |
1,720 |
1,759 |
6,782 |
6,859 |
|||||||||||
| Hawaii Electric Light |
269 |
273 |
1,062 |
1,076 |
|||||||||||
| Maui Electric |
288 |
292 |
1,132 |
1,135 |
|||||||||||
| 2,277 |
2,324 |
8,976 |
9,070 |
||||||||||||
| Wet-bulb temperature (Oahu average; degrees Fahrenheit) |
70.0 |
69.3 |
69.6 |
68.8 |
|||||||||||
| Cooling degree days (Oahu) |
1,206 |
1,135 |
4,909 |
4,506 |
|||||||||||
| Average fuel oil cost per barrel |
$ |
122.04 |
$ |
133.88 |
$ |
129.65 |
$ |
131.10 |
|||||||
| Twelve months ended December 31 |
2014 |
2013 |
|||||||||||||
| Return on average common equity (%) (simple average) |
|||||||||||||||
| Hawaiian Electric |
8.74 |
7.98 |
|||||||||||||
| Hawaii Electric Light |
6.71 |
7.41 |
|||||||||||||
| Maui Electric |
8.81 |
8.91 |
|||||||||||||
| Hawaiian Electric Consolidated |
8.40 |
8.02 |
|||||||||||||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric's Annual Report on SEC Form 10-K for the year ended December 31, 2014 (when filed) and the consolidated financial statements and the notes thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014 , as updated by SEC Forms 8-K. |
| Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||
| December 31 |
2014 |
2013 |
|||||
| (dollars in thousands, except par value) |
|||||||
| Assets |
|||||||
| Property, plant and equipment |
|||||||
| Utility property, plant and equipment |
|||||||
| Land |
$ |
52,299 |
$ |
51,883 |
|||
| Plant and equipment |
6,009,482 |
5,701,875 |
|||||
| Less accumulated depreciation |
(2,175,510) |
(2,111,229) |
|||||
| Construction in progress |
158,616 |
143,233 |
|||||
| Utility property, plant and equipment, net |
4,044,887 |
3,785,762 |
|||||
| Nonutility property, plant and equipment, less accumulated depreciation of $1,227 and $1,223 at respective dates |
6,563 |
6,567 |
|||||
| Total property, plant and equipment, net |
4,051,450 |
3,792,329 |
|||||
| Current assets |
|||||||
| Cash and cash equivalents |
13,762 |
62,825 |
|||||
| Customer accounts receivable, net |
158,484 |
175,448 |
|||||
| Accrued unbilled revenues, net |
137,374 |
144,124 |
|||||
| Other accounts receivable, net |
4,283 |
14,062 |
|||||
| Fuel oil stock, at average cost |
106,046 |
134,087 |
|||||
| Materials and supplies, at average cost |
57,250 |
59,044 |
|||||
| Prepayments and other |
66,383 |
52,857 |
|||||
| Regulatory assets |
71,421 |
69,738 |
|||||
| Total current assets |
615,003 |
712,185 |
|||||
| Other long-term assets |
|||||||
| Regulatory assets |
833,843 |
506,186 |
|||||
| Unamortized debt expense |
8,323 |
9,003 |
|||||
| Other |
81,838 |
67,426 |
|||||
| Total other long-term assets |
924,004 |
582,615 |
|||||
| Total assets |
$ |
5,590,457 |
$ |
5,087,129 |
|||
| Capitalization and liabilities |
|||||||
| Capitalization |
|||||||
| Common stock ($6 2/3 par value, authorized 50,000,000 shares; outstanding 15,805,327 in 2014 and 15,429,105 shares in 2013) |
$ |
105,388 |
$ |
102,880 |
|||
| Premium on capital stock |
578,938 |
541,452 |
|||||
| Retained earnings |
997,773 |
948,624 |
|||||
| Accumulated other comprehensive income, net of income taxes-retirement benefit plans |
45 |
608 |
|||||
| Common stock equity |
1,682,144 |
1,593,564 |
|||||
| Cumulative preferred stock — not subject to mandatory redemption |
34,293 |
34,293 |
|||||
| Long-term debt, net |
1,206,546 |
1,206,545 |
|||||
| Total capitalization |
2,922,983 |
2,834,402 |
|||||
| Current liabilities |
|||||||
| Current portion of long-term debt |
— |
11,400 |
|||||
| Accounts payable |
163,934 |
189,559 |
|||||
| Interest and preferred dividends payable |
22,316 |
21,652 |
|||||
| Taxes accrued |
250,402 |
249,445 |
|||||
| Regulatory liabilities |
632 |
1,916 |
|||||
| Other |
65,146 |
63,881 |
|||||
| Total current liabilities |
502,430 |
537,853 |
|||||
| Deferred credits and other liabilities |
|||||||
| Deferred income taxes |
602,872 |
507,161 |
|||||
| Regulatory liabilities |
344,217 |
347,383 |
|||||
| Unamortized tax credits |
79,492 |
73,539 |
|||||
| Defined benefit pension and other postretirement benefit plans liability |
595,395 |
262,162 |
|||||
| Other |
76,636 |
91,735 |
|||||
| Total deferred credits and other liabilities |
1,698,612 |
1,281,980 |
|||||
| Contributions in aid of construction |
466,432 |
432,894 |
|||||
| Total capitalization and liabilities |
$ |
5,590,457 |
$ |
5,087,129 |
|||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric's Annual Report on SEC Form 10-K for the year ended December 31, 2014 (when filed) and the consolidated financial statements and the notes thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, as updated by SEC Forms 8-K. |
| Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||
| Years ended December 31 |
2014 |
2013 |
||||
| (in thousands) |
||||||
| Cash flows from operating activities |
||||||
| Net income |
$ |
139,636 |
$ |
124,924 |
||
| Adjustments to reconcile net income to net cash provided by operating activities |
||||||
| Depreciation of property, plant and equipment |
166,387 |
154,025 |
||||
| Other amortization |
8,091 |
5,077 |
||||
| Increase in deferred income taxes |
82,947 |
64,507 |
||||
| Change in tax credits, net |
6,062 |
7,017 |
||||
| Allowance for equity funds used during construction |
(6,771) |
(5,561) |
||||
| Change in cash overdraft |
(1,038) |
1,038 |
||||
| Changes in assets and liabilities |
||||||
| Decrease in accounts receivable |
26,743 |
49,445 |
||||
| Decrease (increase) in accrued unbilled revenues |
6,750 |
(9,826) |
||||
| Decrease in fuel oil stock |
28,041 |
27,332 |
||||
| Decrease (increase) in materials and supplies |
1,794 |
(7,959) |
||||
| Increase in regulatory assets |
(17,000) |
(65,461) |
||||
| Decrease in accounts payable |
(90,632) |
(20,828) |
||||
| Change in prepaid and accrued income taxes and revenue taxes |
(4,036) |
(2,028) |
||||
| Increase (decrease) in defined benefit pension and other postretirement |
(961) |
2,240 |
||||
| Change in other assets and liabilities |
(62,959) |
(31,499) |
||||
| Net cash provided by operating activities |
283,054 |
292,443 |
||||
| Cash flows from investing activities |
||||||
| Capital expenditures |
(311,574) |
(342,485) |
||||
| Contributions in aid of construction |
41,806 |
32,160 |
||||
| Other |
— |
(230) |
||||
| Net cash used in investing activities |
(269,768) |
(310,555) |
||||
| Cash flows from financing activities |
||||||
| Common stock dividends |
(88,492) |
(81,578) |
||||
| Preferred stock dividends of Hawaiian Electric and subsidiaries |
(1,995) |
(1,995) |
||||
| Proceeds from issuance of common stock |
40,000 |
78,500 |
||||
| Proceeds from issuance of long-term debt |
— |
236,000 |
||||
| Repayment of long-term debt |
(11,400) |
(166,000) |
||||
| Other |
(462) |
(1,149) |
||||
| Net cash provided by (used in) financing activities |
(62,349) |
63,778 |
||||
| Net increase (decrease) in cash and cash equivalents |
(49,063) |
45,666 |
||||
| Cash and cash equivalents, January 1 |
62,825 |
17,159 |
||||
| Cash and cash equivalents, December 31 |
$ |
13,762 |
$ |
62,825 |
||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in Hawaiian Electric's Annual Report on SEC Form 10-K for the year ended December 31, 2014 (when filed) and the consolidated financial statements and the notes thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014 , as updated by SEC Forms 8-K. |
| American Savings Bank, F.S.B. STATEMENTS OF INCOME DATA (Unaudited) |
|||||||||||||||||||
| Three months ended |
Years ended December 31, |
||||||||||||||||||
| (in thousands) |
December 31, 2014 |
September 30, 2014 |
December 31, 2013 |
2014 |
2013 |
||||||||||||||
| Interest and dividend income |
|||||||||||||||||||
| Interest and fees on loans |
$ |
46,276 |
$ |
45,532 |
$ |
43,405 |
$ |
179,341 |
$ |
172,969 |
|||||||||
| Interest and dividends on investment securities |
3,187 |
2,773 |
3,372 |
11,945 |
13,095 |
||||||||||||||
| Total interest and dividend income |
49,463 |
48,305 |
46,777 |
191,286 |
186,064 |
||||||||||||||
| Interest expense |
|||||||||||||||||||
| Interest on deposit liabilities |
1,303 |
1,312 |
1,222 |
5,077 |
5,092 |
||||||||||||||
| Interest on other borrowings |
1,468 |
1,438 |
1,437 |
5,731 |
4,985 |
||||||||||||||
| Total interest expense |
2,771 |
2,750 |
2,659 |
10,808 |
10,077 |
||||||||||||||
| Net interest income |
46,692 |
45,555 |
44,118 |
180,478 |
175,987 |
||||||||||||||
| Provision for loan losses |
2,560 |
1,550 |
554 |
6,126 |
1,507 |
||||||||||||||
| Net interest income after provision for loan losses |
44,132 |
44,005 |
43,564 |
174,352 |
174,480 |
||||||||||||||
| Noninterest income |
|||||||||||||||||||
| Fees from other financial services |
5,760 |
5,642 |
5,732 |
21,747 |
27,099 |
||||||||||||||
| Fee income on deposit liabilities |
5,074 |
5,109 |
4,797 |
19,249 |
18,363 |
||||||||||||||
| Fee income on other financial products |
1,806 |
1,971 |
2,117 |
8,131 |
8,405 |
||||||||||||||
| Bank-owned life insurance |
1,004 |
1,000 |
978 |
3,949 |
3,928 |
||||||||||||||
| Mortgage banking income |
1,164 |
875 |
1,413 |
2,913 |
8,309 |
||||||||||||||
| Gains on sale of securities |
— |
— |
— |
2,847 |
1,226 |
||||||||||||||
| Other income, net |
455 |
634 |
492 |
2,375 |
4,753 |
||||||||||||||
| Total noninterest income |
15,263 |
15,231 |
15,529 |
61,211 |
72,083 |
||||||||||||||
| Noninterest expense |
|||||||||||||||||||
| Compensation and employee benefits |
19,835 |
19,892 |
22,195 |
79,885 |
82,910 |
||||||||||||||
| Occupancy |
4,238 |
4,517 |
4,197 |
17,197 |
16,747 |
||||||||||||||
| Data processing |
2,975 |
2,684 |
2,970 |
11,690 |
10,952 |
||||||||||||||
| Services |
2,561 |
2,580 |
2,160 |
10,269 |
9,015 |
||||||||||||||
| Equipment |
1,638 |
1,672 |
1,826 |
6,564 |
7,295 |
||||||||||||||
| Office supplies, printing and postage |
1,602 |
1,415 |
1,427 |
6,089 |
4,233 |
||||||||||||||
| Marketing |
1,309 |
948 |
1,319 |
3,999 |
3,373 |
||||||||||||||
| FDIC insurance |
820 |
840 |
748 |
3,261 |
3,253 |
||||||||||||||
| Other expense |
7,042 |
5,116 |
4,457 |
20,990 |
21,726 |
||||||||||||||
| Total noninterest expense |
42,020 |
39,664 |
41,299 |
159,944 |
159,504 |
||||||||||||||
| Income before income taxes |
17,375 |
19,572 |
17,794 |
75,619 |
87,059 |
||||||||||||||
| Income taxes |
5,358 |
6,312 |
5,610 |
24,127 |
29,525 |
||||||||||||||
| Net income |
$ |
12,017 |
$ |
13,260 |
$ |
12,184 |
$ |
51,492 |
$ |
57,534 |
|||||||||
| Comprehensive income |
$ |
5,323 |
$ |
11,811 |
$ |
23,802 |
$ |
47,131 |
$ |
60,733 |
|||||||||
| OTHER BANK INFORMATION (annualized %, except as of period end) |
|||||||||||||||||||
| Return on average assets |
0.87 |
0.98 |
0.94 |
0.95 |
1.13 |
||||||||||||||
| Return on average equity |
8.84 |
9.87 |
9.56 |
9.62 |
11.38 |
||||||||||||||
| Return on average tangible common equity |
10.42 |
11.65 |
11.39 |
11.37 |
13.59 |
||||||||||||||
| Net interest margin |
3.65 |
3.62 |
3.67 |
3.62 |
3.74 |
||||||||||||||
| Net charge-offs to average loans outstanding |
0.04 |
0.04 |
0.15 |
0.01 |
0.09 |
||||||||||||||
| As of period end |
|||||||||||||||||||
| Nonperforming assets to loans outstanding and real estate owned * |
0.85 |
0.88 |
1.20 |
||||||||||||||||
| Allowance for loan losses to loans outstanding |
1.03 |
1.00 |
0.97 |
||||||||||||||||
| Tier-1 leverage ratio * |
8.9 |
9.1 |
9.1 |
||||||||||||||||
| Total risk-based capital ratio * |
12.3 |
12.6 |
12.1 |
||||||||||||||||
| Tangible common equity to total assets |
8.25 |
8.49 |
8.50 |
||||||||||||||||
| Dividend paid to HEI (via ASHI) ($ in millions) |
9 |
9 |
10 |
36 |
40 |
||||||||||||||
| * Regulatory basis |
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2014 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, as updated by SEC Forms 8-K. |
| American Savings Bank, F.S.B. BALANCE SHEETS DATA (Unaudited) |
|||||||||||
| December 31 |
2014 |
2013 |
|||||||||
| (in thousands) |
|||||||||||
| Assets |
|||||||||||
| Cash and due from banks |
$ |
107,233 |
$ |
108,998 |
|||||||
| Interest-bearing deposits |
54,230 |
47,605 |
|||||||||
| Available-for-sale investment securities, at fair value |
550,394 |
529,007 |
|||||||||
| Stock in Federal Home Loan Bank of Seattle, at cost |
69,302 |
92,546 |
|||||||||
| Loans receivable held for investment |
4,434,651 |
4,150,229 |
|||||||||
| Allowance for loan losses |
(45,618) |
(40,116) |
|||||||||
| Net loans |
4,389,033 |
4,110,113 |
|||||||||
| Loans held for sale, at lower of cost or fair value |
8,424 |
5,302 |
|||||||||
| Other |
304,435 |
268,063 |
|||||||||
| Goodwill |
82,190 |
82,190 |
|||||||||
| Total assets |
$ |
5,565,241 |
$ |
5,243,824 |
|||||||
| Liabilities and shareholder's equity |
|||||||||||
| Deposit liabilities–noninterest-bearing |
$ |
1,342,794 |
$ |
1,214,418 |
|||||||
| Deposit liabilities–interest-bearing |
3,280,621 |
3,158,059 |
|||||||||
| Other borrowings |
290,656 |
244,514 |
|||||||||
| Other |
116,527 |
105,679 |
|||||||||
| Total liabilities |
5,030,598 |
4,722,670 |
|||||||||
| Common stock |
1 |
1 |
|||||||||
| Additional paid in capital |
338,411 |
336,053 |
|||||||||
| Retained earnings |
212,789 |
197,297 |
|||||||||
| Accumulated other comprehensive loss, net of tax benefits |
|||||||||||
| Net unrealized gains (losses) on securities |
$ |
462 |
$ |
(3,663) |
|||||||
| Retirement benefit plans |
(17,020) |
(16,558) |
(8,534) |
(12,197) |
|||||||
| Total shareholder's equity |
534,643 |
521,154 |
|||||||||
| Total liabilities and shareholder's equity |
$ |
5,565,241 |
$ |
5,243,824 |
|||||||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2014 (when filed) and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, as updated by SEC Forms 8-K. |
EXPLANATION OF HEI'S USE OF CERTAIN UNAUDITED NON-GAAP MEASURES
HEI and Hawaiian Electric Company management use certain non-GAAP measures to evaluate the performance of the utility and HEI. Management believes these non-GAAP measures provide useful information and are a better indicator of the companies' core operating activities. Core earnings and other financial measures as presented here may not be comparable to similarly titled measures used by other companies. The accompanying tables provide a reconciliation of reported GAAP1 earnings to non-GAAP core earnings and diluted earnings per share for HEI consolidated and the adjusted return on average common equity (ROACE).
The reconciling adjustment from GAAP earnings to core earnings is limited to the costs related to the pending merger between HEI and NextEra Energy, Inc. For more information on the pending merger, see HEI's Form 8-K filed on December 4, 2014. Management does not consider these items to be representative of the company's fundamental core earnings.
The accompanying table also provides the calculation of utility GAAP O&M adjusted for "O&M-related net income neutral items" which are O&M expenses covered by specific surcharges or by third parties. This item is grossed-up in revenue and expense and does not impact net income.
| RECONCILIATION OF GAAP1 TO NON-GAAP MEASURES |
||||||||||||
| Hawaiian Electric Industries, Inc. and Subsidiaries (HEI) |
||||||||||||
| Unaudited |
||||||||||||
| ($ in millions, except per share amounts) |
||||||||||||
| Three months ended December 31 |
Years ended December 31 |
|||||||||||
| 2014 |
2013 |
2014 |
2013 |
|||||||||
| HEI CONSOLIDATED NET INCOME |
||||||||||||
| GAAP (as reported) |
$ |
33.2 |
$ |
39.0 |
$ |
168.3 |
$ |
161.5 |
||||
| Excluding special items (after-tax): |
||||||||||||
| Costs related to pending merger with NextEra Energy, Inc. |
4.3 |
— |
4.9 |
— |
||||||||
| Non-GAAP (core) |
$ |
37.5 |
$ |
39.0 |
$ |
173.2 |
$ |
161.5 |
||||
| HEI CONSOLIDATED DILUTED EARNINGS PER SHARE |
||||||||||||
| GAAP (as reported) |
$ |
0.32 |
$ |
0.39 |
$ |
1.64 |
$ |
1.62 |
||||
| Excluding special items (after-tax): |
||||||||||||
| Costs related to pending merger with NextEra Energy, Inc. |
0.04 |
— |
0.05 |
— |
||||||||
| Non-GAAP (core) diluted earnings per common share |
$ |
0.36 |
$ |
0.39 |
$ |
1.68 |
$ |
1.62 |
||||
| HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average) |
||||||||||||
| Based on GAAP |
9.6% |
9.7% |
||||||||||
| Based on non-GAAP (core)2 |
9.8% |
9.7% |
||||||||||
| RECONCILIATION OF GAAP1 TO NON-GAAP MEASURES |
||||||||||||
| Hawaiian Electric Company, Inc. and Subsidiaries |
||||||||||||
| Unaudited |
||||||||||||
| ($ in millions) |
||||||||||||
| Three months ended December 31 |
Years ended December 31 |
|||||||||||
| 2014 |
2013 |
2014 |
2013 |
|||||||||
| HAWAIIAN ELECTRIC CONSOLIDATED OTHER OPERATION AND MAINTENANCE (O&M) EXPENSE |
||||||||||||
| GAAP (as reported) |
$ |
115.1 |
$ |
102.5 |
$ |
410.6 |
$ |
403.3 |
||||
| Excluding O&M-related net income neutral items3 |
2.5 |
2.9 |
10.0 |
8.0 |
||||||||
| Adjusted other operations and maintenance expense (Non-GAAP measure) |
$ |
112.6 |
$ |
99.6 |
$ |
400.6 |
$ |
395.3 |
||||
| Note: Columns may not foot due to rounding |
||||||||||||
| 1 Accounting principles generally accepted in the United States of America |
||||||||||||
| 2 Calculated as core net income divided by average GAAP common equity |
||||||||||||
| 3 Expenses covered by surcharges or by third parties recorded in revenues |
||||||||||||
| Contact: |
Clifford H. Chen |
Telephone: (808) 543-7300 |
| Manager, Investor Relations & Strategic Planning |
E-mail: [email protected] |
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SOURCE Hawaiian Electric Industries, Inc.
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