HONOLULU, Nov. 3, 2011 /PRNewswire/ -- Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported consolidated net income for common stock for the third quarter 2011 of $48.4 million, or $0.50 diluted earnings per share (EPS), compared to $32.4 million, or $0.35 diluted EPS for the third quarter 2010.
"While utility earnings are recovering from the depressed levels of 2010, returns will continue to fall short of those allowed by the Hawaii Public Utilities Commission. Continued regulatory support to recover our investments in a timely manner is essential to our success in attracting the significant capital needed to fund our utilities' reliability and clean energy plans. Our bank continues to be a consistent source of capital for HEI and maintained its strong performance. This marks the fourth consecutive quarter of loan growth and we continue to maintain strong profitability metrics and healthy capital levels," said Constance H. Lau, HEI president and chief executive officer.
UTILITY EARNINGS IMPROVE AND EXPENSE MANAGEMENT REMAINS A PRIORITY FOCUS
Electric utility net income for the third quarter 2011 was $38.0 million compared to $22.0 million in the third quarter 2010. The $16.0 million net income improvement resulted primarily from regulatory action and continued cost management. The significant increases over the prior year were (on an after-tax basis):
- $6 million of rate relief granted to all three utilities;
- $5 million net decoupling revenue adjustments recorded for our Oahu utility;
- $2 million higher fuel efficiency savings at our Hawaii Island and Maui County utilities; and
- $1 million lower depreciation expense primarily from the change in depreciation rates and methods.
These increases were partially offset by $1 million lower kilowatthour sales at the Hawaii Island and Maui County utilities. Kilowatthour sales were down 0.5% and 3.0% for Hawaii Island and Maui County, respectively, primarily due to increased customer conservation.
O&M expenses(1) were flat compared to the same quarter last year. Higher bad debt expense of $4 million, primarily due to two large commercial accounts, and $2 million higher maintenance expense to safely and responsibly operate our systems were largely offset by $3 million lower administrative and general expense from a regulatory change in the capitalization of costs and by $2 million lower claims reserves. We expect total 2011 O&M, which would have been flat compared to 2010, to be 3% higher due to externalities such as bad debt.
(1) Excludes demand side management (DSM) program costs. DSM program costs were $1 million in the third quarter of 2010 and 2011. DSM program costs are recovered through a surcharge.
CONTINUED SOLID BANK PERFORMANCE AND MODERATE LOAN GROWTH
Bank net income for the third quarter 2011 was $15.5 million, essentially even with $15.2 million in the second, or linked, quarter 2011 and $15.3 million in the third quarter 2010.
Loan growth continued for the fourth consecutive quarter with an increase in loans of $40 million in the third quarter 2011. Loan growth was driven primarily by home equity and commercial loans which more than offset the decline in residential mortgages resulting from the low interest rate environment. Year-to-date, total loans increased by $129 million or 3.6%, meeting our target for mid-single digit loan growth.
Net interest margin was 4.11% in the third quarter 2011, up from 4.07% in the linked quarter but down from 4.31% in the third quarter 2010. The improvement in net interest margin from the linked quarter was primarily attributable to the recognition of deferred loan fees due to higher loan prepayments from residential mortgage refinancings and slightly lower cost of funds. The third quarter 2010 was higher primarily due to higher yields on earning assets in 2010 and the recognition of deferred loan fees from the refinancing wave in the second half of 2010.
Provision for loan losses (pretax) was $3.8 million in the third quarter 2011 compared to $6.0 million in the third quarter 2010 and $2.6 million in the linked quarter. With year-to-date provision expense of $10.9 million, the company expects full-year provision expense to be in the lower end of the guidance range of $15 to $20 million.
The third quarter 2011 net charge-off ratio was 0.54%. This is up slightly from 0.45% reported in the linked quarter and from 0.53% in the third quarter last year, but remains low compared to our peers. The increase from the linked quarter is primarily due to the partial charge-offs of two commercial credits.
Noninterest expense (pretax) for the third quarter 2011 of $35.6 million improved from $36.2 million in the linked quarter and $36.3 million in the third quarter 2010. 2011 annual noninterest expense is on track to meet our target of $145 million.
The bank remains well-capitalized with a Tier 1 leverage ratio of 9.1% and total risk-based capital ratio of 13.0% as of the end of the third quarter 2011.
HOLDING AND OTHER COMPANIES
The holding and other companies' net losses were $5.0 million in the third quarter 2011 compared to $4.8 million in the third quarter 2010.
BOARD DECLARES QUARTERLY DIVIDEND
On November 2, 2011, the board of directors of HEI maintained the regular quarterly cash dividend of 31 cents per share, payable on December 13, 2011, to shareholders of record at the close of business on November 21, 2011 (ex-dividend date is November 17, 2011). The dividend is equivalent to an annual rate of $1.24 per share.
Dividends have been paid continuously since 1901. At the indicated annual dividend rate and the closing share price on November 2, 2011 of $25.36, HEI's yield is 4.9%.
WEBCAST AND TELECONFERENCE
Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its third quarter 2011 earnings on Thursday, November 3, 2011, at 8:00 a.m. Hawaii time (2:00 p.m. Eastern time). The event can be accessed through HEI's website at www.hei.com or by dialing (800) 299-7635, passcode: 75157227 for the teleconference call. The presentation for the webcast will be on HEI’s website under the headings “Investor Relations”, “News & Events” and “Presentations & Webcasts”. HEI and Hawaiian Electric Company, Inc. (HECO) 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, HECO's and American Savings Bank, F.S.B.'s (ASB) press releases, SEC filings and public conference calls and webcasts. The information on HEI's website is not incorporated by reference in this document or in the Company's SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the 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 the Company's SEC filings.
An online replay of the webcast will be available at the same website beginning about two hours after the event. Replays of the teleconference call will also be available approximately two hours after the event through November 17, 2011, by dialing (888) 286-8010, passcode: 80767105.
HEI supplies power to over 400,000 customers or 95% of Hawaii's population through its electric utilities, HECO, 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 ASB, one of Hawaii's largest financial institutions.
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" discussions (which are incorporated by reference herein) set forth on pages iv and v of HEI's Quarterly Reports on Form 10-Q for the quarters ended June 30, 2011 and September 30, 2011 (when filed), and in HEI's future periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements. 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, HECO, ASB 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.
Contact: |
Shelee M.T. Kimura |
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Manager, Investor Relations & |
Telephone: (808) 543-7384 |
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Strategic Planning |
E-mail: [email protected] |
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Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries |
|||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
(Unaudited) |
Three months |
Nine months |
|||||||||
ended September 30, |
ended September 30, |
||||||||||
(in thousands, except per share amounts) |
2011 |
2010 |
2011 |
2010 |
|||||||
Revenues |
|||||||||||
Electric utility |
$ 820,254 |
$ 623,126 |
$ 2,194,327 |
$ 1,755,332 |
|||||||
Bank |
66,100 |
71,429 |
197,731 |
213,975 |
|||||||
Other |
1 |
(14) |
(751) |
(62) |
|||||||
886,355 |
694,541 |
2,391,307 |
1,969,245 |
||||||||
Expenses |
|||||||||||
Electric utility |
745,298 |
571,783 |
2,031,645 |
1,619,945 |
|||||||
Bank |
42,931 |
47,040 |
128,988 |
142,040 |
|||||||
Other |
3,636 |
3,087 |
9,148 |
10,291 |
|||||||
791,865 |
621,910 |
2,169,781 |
1,772,276 |
||||||||
Operating income (loss) |
|||||||||||
Electric utility |
74,956 |
51,343 |
162,682 |
135,387 |
|||||||
Bank |
23,169 |
24,389 |
68,743 |
71,935 |
|||||||
Other |
(3,635) |
(3,101) |
(9,899) |
(10,353) |
|||||||
94,490 |
72,631 |
221,526 |
196,969 |
||||||||
Interest expense–other than on deposit liabilities and other bank borrowings |
(19,949) |
(21,015) |
(64,266) |
(61,916) |
|||||||
Allowance for borrowed funds used during construction |
658 |
492 |
1,731 |
2,061 |
|||||||
Allowance for equity funds used during construction |
1,570 |
1,197 |
4,131 |
4,817 |
|||||||
Income before income taxes |
76,769 |
53,305 |
163,122 |
141,931 |
|||||||
Income taxes |
27,894 |
20,385 |
57,700 |
51,677 |
|||||||
Net income |
48,875 |
32,920 |
105,422 |
90,254 |
|||||||
Preferred stock dividends of subsidiaries |
471 |
471 |
1,417 |
1,417 |
|||||||
Net income for common stock |
$ 48,404 |
$ 32,449 |
$ 104,005 |
$ 88,837 |
|||||||
Basic earnings per common share |
$ 0.50 |
$ 0.35 |
$ 1.09 |
$ 0.95 |
|||||||
Diluted earnings per common share |
$ 0.50 |
$ 0.35 |
$ 1.09 |
$ 0.95 |
|||||||
Dividends per common share |
$ 0.31 |
$ 0.31 |
$ 0.93 |
$ 0.93 |
|||||||
Weighted-average number of common shares outstanding |
95,873 |
93,699 |
95,365 |
93,148 |
|||||||
Adjusted weighted-average shares |
96,100 |
93,891 |
95,671 |
93,405 |
|||||||
Income (loss) by segment |
|||||||||||
Electric utility |
$ 37,959 |
$ 21,980 |
$ 74,172 |
$ 57,674 |
|||||||
Bank |
15,457 |
15,293 |
44,503 |
45,160 |
|||||||
Other |
(5,012) |
(4,824) |
(14,670) |
(13,997) |
|||||||
Net income for common stock |
$ 48,404 |
$ 32,449 |
$ 104,005 |
$ 88,837 |
|||||||
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
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Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries |
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CONSOLIDATED BALANCE SHEETS |
|||
(Unaudited) |
|||
September 30, |
December 31, |
||
(dollars in thousands) |
2011 |
2010 |
|
Assets |
|||
Cash and cash equivalents |
$ 283,483 |
$ 330,651 |
|
Accounts receivable and unbilled revenues, net |
342,901 |
266,996 |
|
Available-for-sale investment and mortgage-related securities |
571,045 |
678,152 |
|
Investment in stock of Federal Home Loan Bank of Seattle |
97,764 |
97,764 |
|
Loans receivable held for investment, net |
3,622,181 |
3,489,880 |
|
Loans held for sale, at lower of cost or fair value |
25,016 |
7,849 |
|
Property, plant and equipment, net of accumulated depreciation of |
|||
$2,033,576 in 2011 and $2,037,598 in 2010 |
3,248,658 |
3,165,918 |
|
Regulatory assets |
494,487 |
478,330 |
|
Other |
496,638 |
487,614 |
|
Goodwill |
82,190 |
82,190 |
|
Total assets |
$ 9,264,363 |
$ 9,085,344 |
|
Liabilities and shareholders' equity |
|||
Liabilities |
|||
Accounts payable |
$ 165,909 |
$ 202,446 |
|
Interest and dividends payable |
28,010 |
27,814 |
|
Deposit liabilities |
4,062,801 |
3,975,372 |
|
Short-term borrowings—other than bank |
51,195 |
24,923 |
|
Other bank borrowings |
237,934 |
237,319 |
|
Long-term debt, net—other than bank |
1,340,038 |
1,364,942 |
|
Deferred income taxes |
342,232 |
278,958 |
|
Regulatory liabilities |
313,299 |
296,797 |
|
Contributions in aid of construction |
344,110 |
335,364 |
|
Other |
806,784 |
823,479 |
|
Total liabilities |
7,692,312 |
7,567,414 |
|
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: 95,975,524 shares in 2011 and 94,690,932 shares in 2010 |
1,347,255 |
1,314,199 |
|
Retained earnings |
197,165 |
181,910 |
|
Accumulated other comprehensive loss, net of tax benefits |
(6,662) |
(12,472) |
|
Total shareholders' equity |
1,537,758 |
1,483,637 |
|
Total liabilities and shareholders' equity |
$ 9,264,363 |
$ 9,085,344 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
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Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
(Unaudited) |
|||
Nine months ended September 30, |
2011 |
2010 |
|
(in thousands) |
|||
Cash flows from operating activities |
|||
Net income |
$ 105,422 |
$ 90,254 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|||
Depreciation of property, plant and equipment |
111,516 |
117,109 |
|
Other amortization |
14,552 |
2,995 |
|
Provision for loan losses |
10,927 |
12,310 |
|
Loans receivable originated and purchased, held for sale |
(137,507) |
(286,950) |
|
Proceeds from sale of loans receivable, held for sale |
127,163 |
306,587 |
|
Changes in deferred income taxes |
60,957 |
75,821 |
|
Changes in excess tax benefits from share-based payment arrangements |
(39) |
56 |
|
Allowance for equity funds used during construction |
(4,131) |
(4,817) |
|
Change in cash overdraft |
(2,688) |
884 |
|
Changes in assets and liabilities |
|||
Increase in accounts receivable and unbilled revenues, net |
(75,905) |
(18,016) |
|
Increase in fuel oil stock |
(4,592) |
(42,569) |
|
Decrease in accounts, interest and dividends payable |
(57,746) |
(25,433) |
|
Changes in prepaid and accrued income taxes and utility revenue taxes |
40,418 |
(45,787) |
|
Changes in other assets and liabilities |
(87,258) |
(5,585) |
|
Net cash provided by operating activities |
101,089 |
176,859 |
|
Cash flows from investing activities |
|||
Available-for-sale investment and mortgage-related securities purchased |
(202,061) |
(485,495) |
|
Principal repayments on available-for-sale investment and mortgage-related securities |
283,931 |
350,673 |
|
Proceeds from sale of available-for-sale investment and mortgage-related securities |
32,799 |
- |
|
Net decrease (increase) in loans held for investment |
(153,745) |
171,242 |
|
Proceeds from sale of real estate acquired in settlement of loans |
5,298 |
3,405 |
|
Capital expenditures |
(148,107) |
(124,900) |
|
Contributions in aid of construction |
15,106 |
16,775 |
|
Other |
(2,923) |
1,615 |
|
Net cash used in investing activities |
(169,702) |
(66,685) |
|
Cash flows from financing activities |
|||
Net increase (decrease) in deposit liabilities |
87,429 |
(100,124) |
|
Net increase (decrease) in short-term borrowings with original maturities of |
|||
three months or less |
26,272 |
(14,693) |
|
Net increase (decrease) in retail repurchase agreements |
614 |
(51,057) |
|
Proceeds from issuance of long-term debt |
125,000 |
- |
|
Repayment of long-term debt |
(150,000) |
- |
|
Changes in excess tax benefits from share-based payment arrangements |
39 |
(56) |
|
Net proceeds from issuance of common stock |
14,861 |
16,672 |
|
Common stock dividends |
(77,070) |
(69,585) |
|
Preferred stock dividends of subsidiaries |
(1,417) |
(1,417) |
|
Other |
(4,283) |
(6,348) |
|
Net cash provided by (used in) financing activities |
21,445 |
(226,608) |
|
Net decrease in cash and cash equivalents |
(47,168) |
(116,434) |
|
Cash and cash equivalents, beginning of period |
330,651 |
503,922 |
|
Cash and cash equivalents, end of period |
$ 283,483 |
$387,488 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
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Hawaiian Electric Company, Inc. (HECO) and Subsidiaries |
|||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||
(Unaudited) |
Three months |
Nine months |
|||||||
ended September 30, |
ended September 30, |
||||||||
(dollars in thousands, except per barrel amounts) |
2011 |
2010 |
2011 |
2010 |
|||||
Operating revenues |
$ 818,907 |
$ 622,223 |
$ 2,190,860 |
$ 1,751,029 |
|||||
Operating expenses |
|||||||||
Fuel oil |
352,475 |
235,534 |
925,476 |
662,608 |
|||||
Purchased power |
188,484 |
147,880 |
508,179 |
404,175 |
|||||
Other operation |
61,415 |
62,665 |
194,334 |
182,163 |
|||||
Maintenance |
32,336 |
30,618 |
92,808 |
89,894 |
|||||
Depreciation |
34,983 |
36,277 |
107,673 |
113,568 |
|||||
Taxes, other than income taxes |
75,355 |
58,317 |
202,502 |
164,278 |
|||||
Income taxes |
23,860 |
14,818 |
46,630 |
36,972 |
|||||
768,908 |
586,109 |
2,077,602 |
1,653,658 |
||||||
Operating income |
49,999 |
36,114 |
113,258 |
97,371 |
|||||
Other income |
|||||||||
Allowance for equity funds used during construction |
1,570 |
1,197 |
4,131 |
4,817 |
|||||
Other, net |
1,170 |
510 |
2,978 |
2,123 |
|||||
2,740 |
1,707 |
7,109 |
6,940 |
||||||
Interest and other charges |
|||||||||
Interest on long-term debt |
14,383 |
14,383 |
43,149 |
43,149 |
|||||
Amortization of net bond premium and expense |
767 |
799 |
2,316 |
2,192 |
|||||
Other interest charges |
(210) |
653 |
965 |
1,861 |
|||||
Allowance for borrowed funds used during construction |
(658) |
(492) |
(1,731) |
(2,061) |
|||||
14,282 |
15,343 |
44,699 |
45,141 |
||||||
Net income |
38,457 |
22,478 |
75,668 |
59,170 |
|||||
Preferred stock dividends of subsidiaries |
228 |
228 |
686 |
686 |
|||||
Net income attributable to HECO |
38,229 |
22,250 |
74,982 |
58,484 |
|||||
Preferred stock dividends of HECO |
270 |
270 |
810 |
810 |
|||||
Net income for common stock |
$ 37,959 |
$ 21,980 |
$ 74,172 |
$ 57,674 |
|||||
OTHER ELECTRIC UTILITY INFORMATION |
|||||||||
Kilowatthour sales (millions) |
2,448 |
2,497 |
7,159 |
7,144 |
|||||
Wet-bulb temperature (Oahu average; degrees Fahrenheit) |
71.5 |
69.8 |
69.7 |
67.8 |
|||||
Cooling degree days (Oahu) |
1,504 |
1,428 |
3,681 |
3,495 |
|||||
Average fuel oil cost per barrel |
$135.66 |
$89.97 |
$120.13 |
$86.12 |
|||||
Customer accounts (end of period) |
446,144 |
444,190 |
|||||||
Twelve months ended |
|||||||||
Return on average common equity |
September 30, 2011 |
||||||||
(rate-making, simple average method) |
Allowed %(1) |
Actual % |
|||||||
HECO |
10.00 |
6.36 |
|||||||
HELCO |
10.50 |
10.02 |
|||||||
MECO |
10.50 |
6.82 |
|||||||
(1) Based on the decisions applicable to rates in effect on September 30, 2011 (interim decisions for HELCO and MECO; interim decision for HECO, which reflects the approval of decoupling and other cost-recovery mechanisms). Interim rates of HECO, HELCO and MECO became effective in July 2011, January 2011 and August 2010, respectively. |
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This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO's Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
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Hawaiian Electric Company, Inc. (HECO) and Subsidiaries |
|||
CONSOLIDATED BALANCE SHEETS |
|||
(Unaudited) |
|||
September 30, |
December 31, |
||
(in thousands, except share data) |
2011 |
2010 |
|
Assets |
|||
Utility plant, at cost |
|||
Land |
$ 51,468 |
$ 51,364 |
|
Plant and equipment |
4,951,799 |
4,896,974 |
|
Less accumulated depreciation |
(1,948,464) |
(1,941,059) |
|
Construction in progress |
136,640 |
101,562 |
|
Net utility plant |
3,191,443 |
3,108,841 |
|
Current assets |
|||
Cash and cash equivalents |
13,869 |
122,936 |
|
Customer accounts receivable, net |
182,932 |
138,171 |
|
Accrued unbilled revenues, net |
137,887 |
104,384 |
|
Other accounts receivable, net |
7,581 |
9,376 |
|
Fuel oil stock, at average cost |
157,297 |
152,705 |
|
Materials and supplies, at average cost |
41,997 |
36,717 |
|
Prepayments and other |
33,156 |
55,216 |
|
Regulatory assets |
9,847 |
7,349 |
|
Total current assets |
584,566 |
626,854 |
|
Other long-term assets |
|||
Regulatory assets |
484,640 |
470,981 |
|
Unamortized debt expense |
12,744 |
14,030 |
|
Other |
77,366 |
64,974 |
|
Total other long-term assets |
574,750 |
549,985 |
|
Total assets |
$ 4,350,759 |
$ 4,285,680 |
|
Capitalization and liabilities |
|||
Capitalization |
|||
Common stock, $6 2/3 par value, authorized 50,000,000 shares; outstanding |
|||
13,830,823 shares |
$ 92,224 |
$ 92,224 |
|
Premium on capital stock |
389,609 |
389,609 |
|
Retained earnings |
876,109 |
854,856 |
|
Accumulated other comprehensive income, net of income taxes |
905 |
709 |
|
Common stock equity |
1,358,847 |
1,337,398 |
|
Cumulative preferred stock – not subject to mandatory redemption |
34,293 |
34,293 |
|
Long-term debt, net |
1,000,538 |
1,057,942 |
|
Total capitalization |
2,393,678 |
2,429,633 |
|
Current liabilities |
|||
Current portion of long-term debt |
57,500 |
- |
|
Short-term borrowings from nonaffiliates |
12,498 |
- |
|
Accounts payable |
140,838 |
178,959 |
|
Interest and preferred dividends payable |
21,349 |
20,603 |
|
Taxes accrued |
199,543 |
175,960 |
|
Other |
54,413 |
56,354 |
|
Total current liabilities |
486,141 |
431,876 |
|
Deferred credits and other liabilities |
|||
Deferred income taxes |
320,582 |
269,286 |
|
Regulatory liabilities |
313,299 |
296,797 |
|
Unamortized tax credits |
59,947 |
58,810 |
|
Retirement benefits liability |
325,060 |
355,844 |
|
Other |
107,942 |
108,070 |
|
Total deferred credits and other liabilities |
1,126,830 |
1,088,807 |
|
Contributions in aid of construction |
344,110 |
335,364 |
|
Total capitalization and liabilities |
$ 4,350,759 |
$ 4,285,680 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO's Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
|||
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries |
|||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
(Unaudited) |
|||
Nine months ended September 30, |
2011 |
2010 |
|
(in thousands) |
|||
Cash flows from operating activities |
|||
Net income |
$ 75,668 |
$ 59,170 |
|
Adjustments to reconcile net income to cash provided by operating activities |
|||
Depreciation of property, plant and equipment |
107,673 |
113,568 |
|
Other amortization |
12,694 |
5,360 |
|
Changes in deferred income taxes |
51,120 |
74,720 |
|
Changes in tax credits, net |
1,416 |
1,939 |
|
Allowance for equity funds used during construction |
(4,131) |
(4,817) |
|
Change in cash overdraft |
(2,688) |
884 |
|
Changes in assets and liabilities |
|||
Increase in accounts receivable |
(42,966) |
(6,784) |
|
Increase in accrued unbilled revenues |
(33,503) |
(11,590) |
|
Increase in fuel oil stock |
(4,592) |
(42,569) |
|
Increase in materials and supplies |
(5,280) |
(385) |
|
Increase in regulatory assets |
(34,231) |
(3,269) |
|
Decrease in accounts payable |
(59,526) |
(28,729) |
|
Changes in prepaid and accrued income taxes and utility revenue taxes |
44,498 |
(55,202) |
|
Changes in other assets and liabilities |
(45,684) |
1,415 |
|
Net cash provided by operating activities |
60,468 |
103,711 |
|
Cash flows from investing activities |
|||
Capital expenditures |
(142,734) |
(118,412) |
|
Contributions in aid of construction |
15,106 |
16,775 |
|
Other |
77 |
657 |
|
Net cash used in investing activities |
(127,551) |
(100,980) |
|
Cash flows from financing activities |
|||
Common stock dividends |
(52,919) |
(38,360) |
|
Preferred stock dividends of HECO and subsidiaries |
(1,496) |
(1,496) |
|
Net increase in short-term borrowings from nonaffiliates and |
|||
affiliate with original maturities of three months or less |
12,498 |
- |
|
Other |
(67) |
(1,409) |
|
Net cash used in financing activities |
(41,984) |
(41,265) |
|
Net decrease in cash and cash equivalents |
(109,067) |
(38,534) |
|
Cash and cash equivalents, beginning of period |
122,936 |
73,578 |
|
Cash and cash equivalents, end of period |
$ 13,869 |
$ 35,044 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO's Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
|||
American Savings Bank, F.S.B. and Subsidiaries |
|||||||||||
CONSOLIDATED STATEMENTS OF INCOME DATA |
|||||||||||
(Unaudited) |
Three months ended |
Nine months ended |
|||||||||
September 30, |
June 30, |
September 30, |
September 30, |
||||||||
(in thousands) |
2011 |
2011 |
2010 |
2011 |
2010 |
||||||
Interest and dividend income |
|||||||||||
Interest and fees on loans |
$ 46,240 |
$ 45,648 |
$ 49,221 |
$ 137,985 |
$ 148,294 |
||||||
Interest and dividends on investment and mortgage-related securities |
3,654 |
3,793 |
3,852 |
11,216 |
10,815 |
||||||
Total interest and dividend income |
49,894 |
49,441 |
53,073 |
149,201 |
159,109 |
||||||
Interest expense |
|||||||||||
Interest on deposit liabilities |
2,166 |
2,387 |
3,390 |
7,146 |
11,665 |
||||||
Interest on other borrowings |
1,375 |
1,382 |
1,414 |
4,124 |
4,258 |
||||||
Total interest expense |
3,541 |
3,769 |
4,804 |
11,270 |
15,923 |
||||||
Net interest income |
46,353 |
45,672 |
48,269 |
137,931 |
143,186 |
||||||
Provision for loan losses |
3,822 |
2,555 |
5,961 |
10,927 |
12,310 |
||||||
Net interest income after provision for loan losses |
42,531 |
43,117 |
42,308 |
127,004 |
130,876 |
||||||
Noninterest income |
|||||||||||
Fee income on deposit liabilities |
4,492 |
4,599 |
6,109 |
13,540 |
21,520 |
||||||
Fees from other financial services |
7,219 |
7,240 |
6,781 |
21,405 |
19,844 |
||||||
Fee income on other financial products |
1,806 |
1,861 |
1,697 |
5,340 |
4,957 |
||||||
Other income |
2,689 |
3,177 |
3,769 |
8,245 |
8,545 |
||||||
Total noninterest income |
16,206 |
16,877 |
18,356 |
48,530 |
54,866 |
||||||
Noninterest expense |
|||||||||||
Compensation and employee benefits |
17,646 |
18,166 |
18,168 |
53,317 |
54,477 |
||||||
Occupancy |
4,313 |
4,288 |
4,176 |
12,841 |
12,617 |
||||||
Data processing |
2,451 |
2,058 |
2,019 |
6,479 |
10,921 |
||||||
Services |
1,686 |
1,949 |
1,544 |
5,406 |
5,117 |
||||||
Equipment |
1,712 |
1,772 |
1,600 |
5,141 |
4,949 |
||||||
Other expense |
7,763 |
7,955 |
8,798 |
23,651 |
25,819 |
||||||
Total noninterest expense |
35,571 |
36,188 |
36,305 |
106,835 |
113,900 |
||||||
Income before income taxes |
23,166 |
23,806 |
24,359 |
68,699 |
71,842 |
||||||
Income taxes |
7,709 |
8,611 |
9,066 |
24,196 |
26,682 |
||||||
Net income |
$ 15,457 |
$ 15,195 |
$ 15,293 |
$ 44,503 |
$ 45,160 |
||||||
OTHER BANK INFORMATION (%) |
|||||||||||
Return on average assets |
1.26 |
1.24 |
1.26 |
1.22 |
1.23 |
||||||
Return on average equity |
12.32 |
12.19 |
12.04 |
11.91 |
11.96 |
||||||
Net interest margin |
4.11 |
4.07 |
4.31 |
4.11 |
4.23 |
||||||
Net charge-offs to average loans outstanding (annualized) |
0.54 |
0.45 |
0.53 |
0.50 |
0.58 |
||||||
Efficiency ratio |
56 |
57 |
54 |
57 |
57 |
||||||
As of period end |
|||||||||||
Nonperforming assets to loans outstanding and real estate owned ** |
1.94 |
1.69 |
1.87 |
||||||||
Allowance for loan losses to loans outstanding |
1.04 |
1.09 |
1.09 |
||||||||
Tier-1 leverage ratio |
9.1 |
9.1 |
9.3 |
||||||||
Total risk-based capital ratio |
13.0 |
13.3 |
14.2 |
||||||||
Tangible common equity to total assets |
8.6 |
8.5 |
8.8 |
||||||||
** Regulatory basis |
|||||||||||
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
|||||||||||
American Savings Bank, F.S.B. and Subsidiaries |
|||
CONSOLIDATED BALANCE SHEETS DATA |
|||
(Unaudited) |
|||
September 30, |
December 31, |
||
(in thousands) |
2011 |
2010 |
|
Assets |
|||
Cash and cash equivalents |
$ 267,961 |
$ 204,397 |
|
Federal funds sold |
- |
1,721 |
|
Available-for-sale investment and mortgage-related securities |
571,045 |
678,152 |
|
Investment in stock of Federal Home Loan Bank of Seattle |
97,764 |
97,764 |
|
Loans receivable held for investment, net |
3,622,181 |
3,489,880 |
|
Loans held for sale at lower of cost or fair value |
25,016 |
7,849 |
|
Other |
234,506 |
234,806 |
|
Goodwill |
82,190 |
82,190 |
|
Total assets |
$ 4,900,663 |
$ 4,796,759 |
|
Liabilities and shareholder's equity |
|||
Deposit liabilities–noninterest-bearing |
$ 951,978 |
$ 865,642 |
|
Deposit liabilities–interest-bearing |
3,110,823 |
3,109,730 |
|
Other borrowings |
237,934 |
237,319 |
|
Other |
99,067 |
90,683 |
|
Total liabilities |
4,399,802 |
4,303,374 |
|
Common stock |
331,678 |
330,562 |
|
Retained earnings |
170,614 |
169,111 |
|
Accumulated other comprehensive loss, net of tax benefits |
(1,431) |
(6,288) |
|
Total shareholder's equity |
500,861 |
493,385 |
|
Total liabilities and shareholder's equity |
$ 4,900,663 |
$ 4,796,759 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference and included in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2010 and the consolidated financial statements and the notes thereto in HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
|||
SOURCE Hawaiian Electric Industries, Inc.
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