Spire, Inc
Company Summary
Description
Spire Inc (formerly the Laclede Group) is a public utility holding company based in St. Louis, Missouri providing natural gas service through its regulated core utility operations while engaging in non-regulated activities that provide business opportunities.Website
http://www.spireenergy.comFinancial Data:
NYSE:SR from Google FinanceTickers:
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SR - New York Stock Exchange
Related Entities
Recent news
- 8/29/2022 - Spire Storage Plans to... (subscriber access)
- 2/23/2017 - Spire Prices $150 MM... (subscriber access)
- 2/22/2017 - Spire Commences $150 MM... (subscriber access)
- 9/12/2016 - Spire Closes on... (subscriber access)
- 8/3/2016 - Spire STL Entered... (subscriber access)
News & Press Releases
Criterion News
- 8/29/2022 - Spire Storage Plans to... (subscriber access)
- 2/23/2017 - Spire Prices $150 MM... (subscriber access)
- 2/22/2017 - Spire Commences $150 MM... (subscriber access)
- 9/12/2016 - Spire Closes on... (subscriber access)
- 8/3/2016 - Spire STL Entered... (subscriber access)
- 8/1/2016 - Spire Announces Open Season on New Spire STL Pipeline
- 4/26/2016 - Sempra U.S. Sells... (subscriber access)
Press Releases
- First quarter fiscal 2021 net income of $88.9 million ($1.65 per diluted share), compared to $67.0 million ($1.24 per share) in the prior year
- Net economic earnings* of $76.9 million ($1.42 per share), up from $71.8 million ($1.33 per share) a year ago
- We remain on track with our capital investment program, and reaffirm our long-term earnings growth and ESG targets
- Through pipeline upgrade efforts, Spire reduced methane emissions by more than 39% since 2005, and projects a nearly 54% reduction by 2025 – well ahead of international standards calling for commitments of a 26 to 28% reduction in greenhouse gas emissions nationwide by 2025
- As part of Spire's commitment to the environment, the company announced in 2020 they are one of the first natural gas companies in the United States to commit to being carbon neutral by midcentury
- Spire's "Day for Good" initiative, giving employees the opportunity to spend a paid day volunteering at an organization they are passionate about, placed 2,000 employees in the community, working thousands of volunteer hours in 2019
- During the coronavirus pandemic, Spire increased the match to their Dollar Help program, raising nearly $1.9 million to help thousands of families and small businesses struggling to pay their gas bills as a result of the pandemic
- Spire joined United Way Worldwide's Global Corporate Leadership group, a select group of more than 100 global corporations who partner with United Way to help those in need. This partnership grew from a successful program between Spire and the United Way of Greater St. Louis that, since 2016, helped elevate Spire's corporate social responsibility program
"Spire uses its energy to champion people, every day," said Stan Little, executive vice president and chief experience officer, United Way Worldwide. "We're thrilled that our 'globally local' network, plus leadership from United Way of Greater St. Louis, could support Spire in achieving this milestone." - Forest ReLeaf of Missouri and Spire planted 900 native trees across the Show Me State to provide environmental benefits, help residents save money and energy, and help with recovery after recent tornadoes
"As they grow, these trees will replace canopy lost during recent tornadoes in Carl Junction, green neighborhoods across the Kansas City metro area, and create native forest habitat in St. Peters," said Meredith Perkins, executive director, Forest ReLeaf. "We were so impressed with the enthusiasm of the Spire volunteers who helped distribute trees. Their energy, and their commitment to service made each event a success." - A donation from Spire to Children's of Alabama not only brought financial support for the pediatric hospital's medical play program, it also led to a virtual teddy bear clinic for patients this November
"The medical play program brings so much joy to each patient, especially when they open their bag and see Grahm, Spire's signature stuffed bear, for the first time," said Emily Hornak, director of cause marketing and corporate sponsorships at Children's of Alabama. "We are so appreciative of Spire's continued generosity." - Net income of $89 million ($1.44 per diluted share) compared to $185 million ($3.52 per share) in fiscal 2019
- Net economic earnings (NEE)* of $208 million ($3.76 per share), up from $195 million ($3.73 per share) a year ago
- Long-term NEE per share growth raised to 5-7%; expect fiscal 2021 NEE per share of $4.00 - $4.20
- Capital spend plan through 2025 supports commitment to infrastructure upgrades and sustainability
- To make our system greener, safer and more reliable for our customers and communities, we have invested more than $850 million to modernize our gas infrastructure with the support of the MoPSC.
- We plan to offer new programs and options that our customers want and expect, including renewable natural gas (RNG) to help us achieve carbon neutrality by midcentury.
- Our customers are benefitting from a number of service enhancements, including an online portal, technology platform upgrades, and deployment of advanced metering.
- Spire Missouri West has hit its ISRS cap. We are seeking to reset the cap in order to continue to get timely recovery of the investment in our critically important infrastructure upgrade work.
- It is time to join both sides of the state under one Spire Missouri tariff, to reflect the integrated utility we are today.
- Net loss of $92.3 million, or $1.87 per diluted share, reflecting non-cash, pre-tax impairment charges of $148.6 million, compared to a prior year loss of $3.0 million, or $0.09 per share
- Net economic earnings (NEE)* of $7.3 million compared to $5.0 million a year ago; NEE per share of $0.07 for both periods
- FY20 NEE expected to be $3.70 - $3.75 per share; long-term NEE per share growth targeted at 4-7%
- Since 2005, Spire's utilities have reduced overall methane emissions by 39 percent.
- As an active member of the EPA's Natural Gas STAR Methane Challenge program, Spire committed to reducing methane emissions by 5% per year, up from its prior commitment of 2 % per year.
- In fiscal year 2019, Spire invested $287 million to replace 359 miles of aging infrastructure resulting in a 21% leak reduction per 1,000 system miles of distribution pipelines. Over the last five years, Spire reduced leaks per 1,000 system miles by 66%.
- Not only does Spire follow all applicable rules and regulations regarding water management, including the Clean Water Act, the company uses limited water for hydrostatic testing, and, on a more limited basis, in pipeline construction. Spire also repurposes water and uses leading storm water management techniques, spill prevention control, countermeasure plans and conduct audits at construction sites.
- While plans are in the works for a comprehensive recycling program across all facilities, Spire already has several initiatives in place, such as recycling cardboard as well as industrial and universal wastes including fluorescent bulbs, high-efficiency lamps and alkaline batteries.
- Spire is also reducing carbon emissions by using compressed natural gas in nearly 300 of its fleet vehicles (about 13%).
- Spire invested $287 million to replace 359 miles of aging infrastructure, resulting in a 21 percent leak reduction per 1,000 system miles of distribution pipelines
- As an active member of the EPA's Natural Gas STAR Methane Challenge program, Spire reduced annual methane emissions by 5 percent, up from 2 percent the previous year
- Since 2005, Spire has reduced overall methane emissions by 39 percent
- Spire launched advanced safety protocols, including a mobile app that enables employees to promptly report incidents, claims and more
- With a continued focus on safety, employee injury rates dropped for the fifth year in a row, marking a 29 percent year-over-year improvement and an overall improvement of 48 percent since fiscal 2015
- Other people-focused accomplishments include developing a comprehensive approach to supporting employees in four areas—mental, physical, social and financial well-being
- Focused on building tomorrow's workforce, Spire entered into a strategic partnership to create a new cooperative learning experience for students attending technical college
- Spire's top 100 leaders serve on more than 150 industry-related, non-profit business and community boards
- The company achieved full engagement of leadership and its board corporate governance committee in reviewing and approving its CSR report
- Environment. A commitment to further reduce methane emissions from operations—in alignment with international goals for controlling climate change—targeting a 53 percent reduction from 2005 levels by 2025, while striving to be carbon neutral company by midcentury
- Community. A commitment to continuously building a more diverse workforce through partnerships with technical schools and opportunities for advanced learning
- People. A commitment to achieving the goals of the CEO Action for Diversity & Inclusion Pledge
- Leadership. A commitment to maintaining a board of directors that reflects diverse backgrounds, experiences, expertise, skill sets and viewpoints, as well as diversity of age, gender, nationality, race and ethnicity
- Net income of $133.6 million ($2.54 per diluted share), compared to $154.6 million ($3.04 per share) in the prior year
- Net economic earnings* of $144.0 million ($2.75 per share), down from $147.9 million ($2.90 per share) a year ago, reflecting warmer than normal weather
- Increased our FY20 capital expenditures plan to $640 million and launched our 5-year capital plan through 2024 totaling $2.8 billion
- Expenditures in 2016 and 2017 for intermittent plastic materials used for repairs, with impacted revenues of $4.2 million
- Previously MoPSC-authorized ISRS revenues related to our June 2018 filing of $8.0 million
- Fiscal 2019 net income of $185 million ($3.52 per diluted share), compared to $214 million ($4.33 per share) in fiscal 2018
- Net economic earnings* of $195 million, up 6.2 percent from $184 million a year ago; net economic earnings per share of $3.73, up from $3.72 last year
- Long-term annual net economic earnings per share growth target of 4-7 percent affirmed
- Five-year capital spend target raised to $3 billion including $590 million for fiscal 2020
- Expenditures in 2016 and 2017 for certain intermittent plastic materials (generally used for repairs) replaced as part of much larger upgrades of cast iron and bare steel pipelines. Impacted ISRS revenues collected totaled $4.2 million.
- Overturning ISRS revenues associated with expenditures in 2017 and 2018, despite prudence review and authorization by the MoPSC. Impacted ISRS revenues collected totaled $8.0 million.
- Second quarter fiscal 2019 earnings per diluted share of $3.04, compared to prior year earnings per share of $2.03 that included significant non-cash adjustments
- Net economic earnings* per share of $2.90, up from $2.83 a year ago
- Raised FY19 capital expenditure forecast to reflect current spend across our businesses
- Launched five-year capital expenditures forecast for 2019 – 2023 totaling $2.8 billion
- Faster
Spire can complete repairs in a matter of weeks, compared to the traditional methods, which takes months. - Cleaner
Because the robot can travel underground for 750 feet in either direction, there are far fewer excavation sites in neighborhood streets. - More Efficient
With robotic technology, fewer crews and large equipment are needed – and those efficiencies help to avoid costs for Spire customers. - Stay Connected
During the project, customers stay connected to gas service. - First quarter fiscal 2019 earnings per diluted share of $1.32, compared to $2.39 a year ago including $1.24 in adjustments for the impact of tax reform from the Tax Cuts and Jobs Act
- Net economic earnings* per share of $1.30, up from $1.19 a year ago, reflecting growth in both our Gas Utility and Gas Marketing segments
- Construction commences on Spire STL Pipeline
- Fiscal 2018 diluted earnings per share of $4.33, compared to $3.43 in fiscal 2017
- Net economic earnings* per share of $3.72, up 4.5 percent from a year ago
- Dividend increased to an annualized $2.37 per share
- Long-term earnings growth target of 4-7 percent affirmed
- Fiscal 2019 net economic earnings per share expected to be $3.70-$3.80
- A return on equity (ROE) range of 10.15 - 10.65 percent with an adjusting point of 10.4 percent,
- Capital structure of 55.5 percent equity, and
- Modifications to the Cost Control Measurement used to track operating expenses and incent cost efficiencies through a sharing process.
- Payment plans: The Cold Weather Rule provides the most lenient payment plans available for customers. Plans are available Nov. 1 – March 31, but Spire is offering Cold Weather Rule payment plans early this year to help customers stay warm. Customers can call Spire today to see if they qualify and sign up.
- State and federal funds: Funds are available for customers based on income level, age and disability. Funds for elderly and disabled customers are available starting Nov. 1. Funds for income eligible customers are available starting Dec. 1. Please reach out to your local community action agency to start the application process today.
- DollarHelp: Funds are also available through DollarHelp. Many Spire customers donate $1 a month on their utility bill to help neighbors in need. And Spire matches $150,000 every year to help the communities we serve. These funds are available now through local agencies.
- Budget billing: Every customer can take advantage of budget billing, which helps ease the crunch of higher winter bills by spreading out costs over a 12-month period.
- Wells Fargo Securities, LLC, 375 Park Avenue, New York, NY 10152
Attention: Equity Syndicate Department
800-326-5897 cmclientsupport@wellsfargo.com - Credit Suisse Securities (USA) LLC, One Madison Avenue, New York, NY 10010
Attention: Credit Suisse Prospectus Department
800-221-1037 newyork.prospectus@credit-suisse.com - RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281-8098 Attention: Equity Syndicate
877-822-4089 equityprospectus@rbccm.com - Initiation of fiscal 2018 net economic earnings guidance of $3.65 to $3.75 per share and increasing long-term earnings growth target to 4-7 percent
- Five-year capital expenditures plan increased to $2.5 billion
- GAAP earnings per diluted share of $2.03, compared to $2.36 a year ago, reflecting largely non-cash fair value accounting and regulatory adjustments
- Net economic earnings* per share of $2.83, up from $2.38 a year ago, reflecting strong Spire Marketing results, lower federal income taxes and the impact of regulatory adjustments
- New programs for low-income energy assistance
- New program to help customers catch up on bills
- New program to help customers stay connected to gas service year round
- Low-cost financing for high efficiency appliances, windows, insulation and weatherization – including home energy audits
- Increased funding and eligibility for low-income assistance programs
- New program to help customers catch up on bills
- New program to help customers stay connected to gas service year round
- No credit card fees for online payments
- GAAP earnings were $2.39 per diluted share, or $1.19 per share on a net economic earnings* basis, excluding the largely non-cash impacts of recently enacted federal income tax reform
- Prior year earnings were $0.99 per share (GAAP) and $1.04 per share (net economic earnings)
- Spire's growth strategy advances with a natural gas storage acquisition and continued progress with the Spire STL Pipeline
- Fiscal 2017 diluted earnings per share of $3.43, up from $3.24 in fiscal 2016
- Net economic earnings* per share grew to $3.56, up $0.14 over prior year
- Dividend increased by 7.1 percent to an annualized $2.25 per share
- Second quarter fiscal 2017 diluted earnings per share of $2.36, compared to $2.31 in fiscal 2016
- Net economic earnings* (NEE) per share of $2.38 up from prior year results of $2.37
- Spire board of directors declared quarterly common stock dividend of $0.525 per share
- Five-year capital expenditures forecast through 2021 increased to nearly $2.3 billion
- Laclede Gas and Missouri Gas Energy file separate rate change proposals in Missouri that include plans to invest in customer service and continued infrastructure upgrades
- On February 22, Spire issued $150 million 3.543% senior notes due 2024, including $143.8 million of remarketed junior subordinated notes sold by the unit holders and $6.2 million of new senior notes.
- On March 10, Spire redeemed $250 million floating rate notes at par using short-term borrowings.
- On March 15, Spire funded the private placement of $100 million 3.93% 10-year senior notes, using proceeds to reduce short-term borrowings incurred to retire the floating rate notes.
- On April 3, Spire issued 2,504,700 shares of common stock in conjunction with settlement of the purchase contracts underlying the equity units, receiving net cash proceeds of $142.0 million which was used to repay the remaining short-term borrowings incurred above.
- New this fall, customers will experience faster and easier service, including:
- Freshly designed online experience
- 24/7 appointment scheduling and more evening appointment hours
- Account alerts to keep you on track
- Account management by text
- Advanced mobile technology will provide customer service and field workers with the tools to get work done more effectively and efficiently
- We're able to respond even faster when customers call about possible gas leaks
- We've enhanced programs to help all customers with energy efficiency, rebates and payment plans
- New this fall, customers will experience faster and easier service, including:
- Freshly designed online experience
- 24/7 appointment scheduling and more evening appointment hours
- Account alerts to keep you on track
- Account management by text
- Advanced mobile technology will provide customer service and field workers with the tools to get work done more effectively and efficiently
- We're able to respond even faster when customers call about possible gas leaks
- We've enhanced programs to help all customers with energy efficiency, rebates and payment plans
- $50 million of 15-year bonds to bear interest between 3.58 percent and 3.68 percent per annum
- $70 million of 30-year bonds to bear interest between 4.17 percent and 4.23 percent per annum
- $50 million of 40-year bonds to bear interest between 4.32 percent and 4.38 percent per annum.
- First quarter fiscal 2017 diluted earnings per share of $0.99, compared to $1.08 in fiscal 2016
- Quarterly net economic earnings* (NEE) per share of $1.04 equal to prior year results as growth in earnings across both of our businesses was offset by an increase in shares
- On target for net economic earnings per share of $3.50 - $3.60 for the full fiscal year
- Edward L. Glotzbach, retired vice chairman, mergers and acquisitions, Information Services Group
- Rob L. Jones, retired co-head, Bank of America Merrill Lynch Commodities, Inc.
- John P. Stupp, Jr., president, Stupp Bros., Inc.
- Annualized dividend increased by 7.1 percent to $2.10 per share
- Fiscal 2016 diluted earnings per share of $3.24, up from $3.16 in fiscal 2015
- Fiscal 2016 net economic earnings* (NEE) per share of $3.42, up 7.2 percent from prior year
- Fiscal 2017 NEE per share expected to be $3.50 - $3.60
- Reasonably normal weather across our utility service territories
- The EnergySouth acquisition will be neutral to NEE per share in 2017
- Spire STL Pipeline will contribute modestly to earnings per share while under construction
- Cold Weather Rule is available from November 1 through March 31. It provides the most lenient payment plan available for customers who have fallen behind on their accounts. It enables eligible customers to continue gas service or restore gas service by making an initial payment and then beginning a balanced monthly payment plan. If customers make their monthly payments, they can stay on this plan permanently.
- Heating assistance is available for those struggling to stay warm. Right now, federal heating assistance is available for elderly and disabled customers. Starting December 1, any qualifying low-income customers can receive Low Income Home Energy Assistance Program (LIHEAP) funds. Customers can call United Way at 2-1-1 for more information.
- Budget Billing is a free service that provides customers with consistent bill amounts throughout the year. One out of every five Missouri Gas Energy customers uses this free service. Customers can enroll today and the payment plan will start on their next billing cycle. To sign up, call 800-582-1234.
- DollarHelp is an easy way for MGE customers to help their neighbors stay warm this winter. Checking the red box on an MGE bill provides $1 a month to help our neighbors stay warm. Customers can also donate by visiting www.dollarhelp.org. Missouri Gas Energy and the United Way together provide the administrative resources for this program, so 100 percent of donations go directly to recipients.
- Seal off unused rooms by closing the registers and keeping the doors shut tightly.
- Keep furniture away from heating registers.
- Make sure a clean furnace filter is installed.
- Wash only full loads in the dishwasher and washing machine.
- Clean out the dryer lint trap before each load.
- Third quarter diluted earnings per share of $0.24 down from $0.32 in the prior year, which included a one-time gain on the sale of property
- Net economic earnings (NEE)* per share of $0.33 up from $0.25 a year ago
- Acquisition of Mobile Gas and Willmut Gas remains on schedule
- Open season launched for Spire STL Pipeline on August 1
- Use of materials with low-volatile organic compounds so employees can breathe easier
- Energy-saving LED lighting throughout the building
- Extensive use of recycled building materials
- An automated window shade system that adjusts based on light, season and room usage
- Water bottle filling stations that encourage reusable bottles and water efficient faucets
- Water purification system to provide fresh and healthy water for employees and guests
- Lighting that maximizes daylight and adjusts based on room usage
- Diversion of more than half of the construction waste from landfills
- Strong internal recycling protocols
- Net economic earnings* of $2.37 per diluted share, up from $2.25 per share a year ago
- GAAP earnings of $2.31 per share compared to $2.18 per share in prior year
- Agreement to acquire Mobile Gas and Willmut Gas from Sempra Energy
2/4/2021 - Spire Reports First Quarter Results
Spire Reports First Quarter Results
Source: PR Newswire
Orignial Article: https://contentapi.cision...
ST. LOUIS, Feb. 4, 2021 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported results for its fiscal first quarter ended December 31, 2020. Highlights include:
"We're stepping forward in fiscal 2021, building on last year's momentum to deliver on our growth-focused strategic priorities. Thanks to our remarkable Spire employees, we're off to a good start in our first quarter with higher earnings and solid operating performance. We're doing this while continuing to support our customers and communities, and doing our best to keep everyone healthy and safe," said Suzanne Sitherwood, president and chief executive officer of Spire. "At the same time, we continued our investment in infrastructure upgrades and innovation to drive even stronger safety, reliability, and customer service levels. We're remaining focused on our ESG goals including our commitment to being a carbon neutral company by midcentury."
First Quarter Results | Three Months Ended December 31, | |||||||||||||||
(Millions) | (Per Diluted Common Share) | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Economic Earnings* by Segment | ||||||||||||||||
Gas Utility | $ | 76.4 | $ | 69.1 | ||||||||||||
Gas Marketing | 3.3 | 6.1 | ||||||||||||||
Other | (2.8) | (3.4) | ||||||||||||||
Total | $ | 76.9 | $ | 71.8 | $ | 1.42 | $ | 1.33 | ||||||||
Net economic earnings adjustments, pre-tax | 16.0 | (6.3) | 0.31 | (0.12) | ||||||||||||
Income tax effect of pre-tax adjustments | (4.0) | 1.5 | (0.08) | 0.03 | ||||||||||||
Net Income | $ | 88.9 | $ | 67.0 | $ | 1.65 | $ | 1.24 | ||||||||
Weighted Average Diluted Shares Outstanding | 51.6 | 51.1 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." | ||||||||||||||||
Consolidated net income for the three months ended December 31, 2020, the first quarter of our fiscal year, was $88.9 million ($1.65 per diluted share), up from $67.0 million ($1.24 per share) a year ago.
Net economic earnings (NEE) for the first quarter of fiscal 2021 was $76.9 million ($1.42 per share) up from $71.8 million ($1.33 per share) last year, reflecting higher Gas Utility earnings as well as lower corporate costs and improved Spire Storage performance. These positive impacts were partially offset by lower earnings from Spire Marketing reflecting market conditions and net costs of incremental storage positions.
NEE excludes from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of impairments and other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions.
Gas Utility
The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. First quarter NEE was $76.4 million, up from $69.1 million in the prior year, reflecting a higher contribution margin and lower expenses.
Contribution margin increased $7.6 million, reflecting higher Infrastructure System Replacement Surcharge (ISRS) revenues of $6.5 million, a $1.1 million benefit from usage and weather (net of weather mitigation) and customer growth. These positive impacts were partially offset by net regulatory adjustments in Spire Alabama of $1.3 million.
Operation and maintenance expenses of $103.0 million for the quarter were down $5.6 million from the same period a year ago, driven by lower operation, administrative and employee-related expenses, due in part to the timing of expenses we expect to occur later this year compared to last year. Depreciation and amortization expenses increased $2.2 million from last year, reflecting incremental capital investment. Taxes other than income taxes decreased $2.4 million due to a reduction in gross receipts taxes as a result of lower gas cost recoveries.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing services across most of the United States. First quarter NEE was $3.3 million, down from $6.1 million in the prior year, reflecting the costs of incremental storage capacity and transportation fees, partially offset by value realized from storage withdrawals.
Other
Other gas-related operations and corporate costs on an NEE basis for the first quarter were $2.8 million in fiscal 2021, compared to $3.4 million a year ago. The improvement reflects higher earnings from Spire Storage and lower corporate costs.
Balance Sheets and Cash Flow
In the first quarter of fiscal 2021, we maintained a solid capital structure and ample liquidity. Short-term borrowings outstanding at December 31, 2020, were $696.1 million, up from $518.9 million at December 31, 2019, reflecting lower cash flow from operations, seasonal working capital needs that typically peak during the winter, and timing of permanent financing in the prior year. We retain significant capacity in our revolving credit facility and related commercial paper program to meet our liquidity needs.
On December 15, 2020, Spire Alabama issued and sold $150 million of 2.04% Senior Notes due December 15, 2030, in a private placement. Proceeds were used to repay short-term debt.
Net cash provided by operating activities was $7.6 million for the quarter ended December 31, 2020, down from $64.5 million for the first quarter of fiscal 2020, largely due to fluctuations in working capital balances.
Capital expenditures for the first quarter of fiscal 2021 were $163.6 million, down from $192.3 million in the prior year mainly due to decreased investment in Spire STL Pipeline that was placed into service in late 2019. Capital expenditures for our gas utilities were down $2.6 million, primarily due to timing of our infrastructure upgrade projects.
For additional details on Spire's results for the first quarter of fiscal 2021, please see the accompanying unaudited Condensed Consolidated Statements of Income, Balance Sheets, and Statements of Cash Flows.
Regulatory Matters
Missouri rate review
On December 11, 2020, Spire Missouri filed a rate review with the Missouri Public Service Commission. The filing seeks recovery of costs and more than $850 million in capital investments since 2018 to make our system safer, more reliable and cleaner for our customers and communities. Our investment includes modernizing our gas infrastructure and implementing customer service enhancements.
The filing proposes new programs and options for our customers, including a voluntary carbon neutral program and renewable natural gas (RNG), that will also help us achieve carbon neutrality by midcentury. In addition, we are seeking to combine our two Missouri utilities into one to ensure all customers can benefit from our programs and services, regardless of location.
The filing requests a net base rate increase of $64.2 million, which is in addition to $47.3 million in annualized ISRS already being collected, representing a 5.6% increase in the average residential customer bill. The request is based upon a rate base of $2.78 billion, a common equity ratio of 54.25%, and a return on equity of 9.95%.
Alabama annual rate setting
New rates for Spire Alabama and Spire Gulf were approved by the Alabama Public Service Commission (APSC), effective December 1, 2020. These rates are established under Alabama's annual rate-setting process and are based on the utilities' budgets for the fiscal year ended September 30, 2021, after prudence review by the APSC. The rates include net income and a calculation of allowed return on average common equity (ROE) ranging from 10.5% for Spire Alabama and 10.7% for Spire Gulf. Spire Alabama's ROE includes a 10 basis-point increase, as the utility exceeded the threshold miles of pipeline replaced to be eligible for the Accelerated Infrastructure Modernization incentive.
Dividends
The Spire board of directors has declared a quarterly common stock dividend of $0.65 per share, payable April 2, 2021, to shareholders of record on March 11, 2021. We have continuously paid a cash common stock dividend since 1946, with 2021 marking the 18th consecutive year of increasing dividends on an annualized basis.
The board also declared the regular quarterly dividend of $0.36875 per depositary share on Spire's 5.90 percent Series A Cumulative Redeemable Preferred Stock payable May 17, 2021, to holders of record on April 26, 2021.
Guidance and Outlook
We affirm our 5-year capital expenditures outlook through fiscal 2025 of $3.0 billion. Our expected fiscal 2021 investment remains $590 million, with $560 million earmarked for our gas utilities.
We also affirm our fiscal 2021 NEE per share expectation of $4.00 - $4.20, as well as our annual long-term NEE per share growth target of 5-7 percent, supported by expected annual rate base growth of 7-8 percent. Our long-term targets reflect the expectation of continued consistent growth of our gas utilities focused on pipeline upgrades that enhance system reliability and safety, and support further reductions in methane emissions, as well as technology upgrades and new business.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2021 first quarter financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
Date and Time: | Thursday, Feb. 4 | ||
8 a.m. CT (9 a.m. ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 | ||
The call will also be webcast and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available at 10 a.m. CT (11 a.m. ET) on Feb. 4 until March 5, 2021, by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10151298.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's annual (Form 10-K) filing with the Securities and Exchange Commission.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of impairments and other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Condensed Consolidated Statements of Income – Unaudited | ||||||||
(In Millions, except per share amounts) | Three Months Ended December 31, | |||||||
2020 | 2019 | |||||||
Operating Revenues | $ | 512.6 | $ | 566.9 | ||||
Operating Expenses: | ||||||||
Natural gas | 181.2 | 261.9 | ||||||
Operation and maintenance | 111.6 | 116.6 | ||||||
Depreciation and amortization | 50.8 | 47.5 | ||||||
Taxes, other than income taxes | 36.1 | 38.6 | ||||||
Total Operating Expenses | 379.7 | 464.6 | ||||||
Operating Income | 132.9 | 102.3 | ||||||
Interest Expense, Net | 25.7 | 26.7 | ||||||
Other Income, Net | 4.3 | 5.7 | ||||||
Income Before Income Taxes | 111.5 | 81.3 | ||||||
Income Tax Expense | 22.6 | 14.3 | ||||||
Net Income | 88.9 | 67.0 | ||||||
Provision for preferred dividends | 3.7 | 3.7 | ||||||
Income allocated to participating securities | 0.1 | 0.1 | ||||||
Net Income Available to Common Shareholders | $ | 85.1 | $ | 63.2 | ||||
Weighted Average Number of Shares Outstanding: | ||||||||
Basic | 51.5 | 50.9 | ||||||
Diluted | 51.6 | 51.1 | ||||||
Basic Earnings Per Common Share | $ | 1.65 | $ | 1.24 | ||||
Diluted Earnings Per Common Share | $ | 1.65 | $ | 1.24 | ||||
Dividends Declared Per Common Share | $ | 0.65 | $ | 0.6225 | ||||
Condensed Consolidated Balance Sheets – Unaudited | ||||||||||||
(In Millions) | December 31, | September 30, | December 31, | |||||||||
2020 | 2020 | 2019 | ||||||||||
ASSETS | ||||||||||||
Utility Plant | $ | 6,860.2 | $ | 6,766.3 | $ | 6,256.1 | ||||||
Less: Accumulated depreciation and amortization | 2,113.3 | 2,086.2 | 1,823.8 | |||||||||
Net Utility Plant | 4,746.9 | 4,680.1 | 4,432.3 | |||||||||
Non-utility Property | 448.7 | 432.3 | 518.7 | |||||||||
Other Investments | 74.8 | 71.7 | 74.7 | |||||||||
Total Other Property and Investments | 523.5 | 504.0 | 593.4 | |||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | 3.5 | 4.1 | 21.5 | |||||||||
Accounts receivable, net | 423.0 | 253.3 | 451.3 | |||||||||
Inventories | 184.5 | 191.5 | 185.6 | |||||||||
Other | 159.0 | 141.7 | 118.0 | |||||||||
Total Current Assets | 770.0 | 590.6 | 776.4 | |||||||||
Deferred Charges and Other Assets | 2,475.2 | 2,466.5 | 2,158.9 | |||||||||
Total Assets | $ | 8,515.6 | $ | 8,241.2 | $ | 7,961.0 | ||||||
CAPITALIZATION AND LIABILITIES | ||||||||||||
Capitalization: | ||||||||||||
Preferred stock | $ | 242.0 | $ | 242.0 | $ | 242.0 | ||||||
Common stock and paid-in capital | 1,601.7 | 1,600.8 | 1,557.8 | |||||||||
Retained earnings | 771.2 | 720.7 | 803.1 | |||||||||
Accumulated other comprehensive loss | (28.1) | (41.2) | (16.9) | |||||||||
Total Shareholders' Equity | 2,586.8 | 2,522.3 | 2,586.0 | |||||||||
Temporary equity | 5.3 | 3.4 | 4.1 | |||||||||
Long-term debt (less current portion) | 2,517.6 | 2,423.7 | 2,484.4 | |||||||||
Total Capitalization | 5,109.7 | 4,949.4 | 5,074.5 | |||||||||
Current Liabilities: | ||||||||||||
Current portion of long-term debt | 110.8 | 60.4 | 45.3 | |||||||||
Notes payable | 696.1 | 648.0 | 518.9 | |||||||||
Accounts payable | 260.8 | 243.3 | 307.9 | |||||||||
Accrued liabilities and other | 479.0 | 497.5 | 380.4 | |||||||||
Total Current Liabilities | 1,546.7 | 1,449.2 | 1,252.5 | |||||||||
Deferred Credits and Other Liabilities: | ||||||||||||
Deferred income taxes | 541.9 | 511.4 | 475.3 | |||||||||
Pension and postretirement benefit costs | 289.2 | 309.0 | 260.7 | |||||||||
Asset retirement obligations | 545.6 | 540.1 | 340.9 | |||||||||
Regulatory liabilities | 357.3 | 343.7 | 417.8 | |||||||||
Other | 125.2 | 138.4 | 139.3 | |||||||||
Total Deferred Credits and Other Liabilities | 1,859.2 | 1,842.6 | 1,634.0 | |||||||||
Total Capitalization and Liabilities | $ | 8,515.6 | $ | 8,241.2 | $ | 7,961.0 | ||||||
Condensed Consolidated Statements of Cash Flows – Unaudited | ||||||||
(In Millions) | Three Months Ended December 31, | |||||||
2020 | 2019 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 88.9 | $ | 67.0 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 50.8 | 47.5 | ||||||
Deferred income taxes and investment tax credits | 21.8 | 14.3 | ||||||
Changes in assets and liabilities | (156.4) | (61.3) | ||||||
Other | 2.5 | (3.0) | ||||||
Net cash provided by operating activities | 7.6 | 64.5 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (163.6) | (192.3) | ||||||
Other | — | (0.3) | ||||||
Net cash used in investing activities | (163.6) | (192.6) | ||||||
Financing Activities: | ||||||||
Issuance of long-term debt | 150.0 | 510.0 | ||||||
Repayment of long-term debt | (5.4) | (100.0) | ||||||
Issuance (repayment) of short-term debt, net | 48.1 | (224.2) | ||||||
Issuance of common stock | 0.4 | 2.3 | ||||||
Dividends paid on common stock | (32.2) | (34.7) | ||||||
Dividends paid on preferred stock | (3.7) | (3.7) | ||||||
Other | (1.8) | (5.9) | ||||||
Net cash provided by financing activities | 155.4 | 143.8 | ||||||
Net (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash | (0.6) | 15.7 | ||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 4.1 | 5.8 | ||||||
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ | 3.5 | $ | 21.5 | ||||
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||
(In Millions, except per share amounts) | Gas Utility | Gas Marketing | Other | Total | Per Diluted Common | |||||||||||||||
Three Months Ended December 31, 2020 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 76.5 | $ | 15.2 | $ | (2.8) | $ | 88.9 | $ | 1.65 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Fair value and timing adjustments | (0.1) | (15.9) | — | (16.0) | (0.31) | |||||||||||||||
Income tax effect of adjustments (1) | — | 4.0 | — | 4.0 | 0.08 | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 76.4 | $ | 3.3 | $ | (2.8) | $ | 76.9 | $ | 1.42 | ||||||||||
Three Months Ended December 31, 2019 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 67.1 | $ | 3.3 | $ | (3.4) | $ | 67.0 | $ | 1.24 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Provision for ISRS rulings | 2.6 | — | — | 2.6 | 0.05 | |||||||||||||||
Fair value and timing adjustments | — | 3.7 | — | 3.7 | 0.07 | |||||||||||||||
Income tax effect of adjustments (1) | (0.6) | (0.9) | — | (1.5) | (0.03) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 69.1 | $ | 6.1 | $ | (3.4) | $ | 71.8 | $ | 1.33 | ||||||||||
(1) | Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre- |
(2) | Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted |
Contribution Margin and Reconciliation to GAAP | ||||||||||||||||||||
(In Millions) | Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
Three Months Ended December 31, 2020 | ||||||||||||||||||||
Operating Income [GAAP] | $ | 106.8 | $ | 20.3 | $ | 5.8 | $ | — | $ | 132.9 | ||||||||||
Operation and maintenance expenses | 103.0 | 3.3 | 8.6 | (3.3) | 111.6 | |||||||||||||||
Depreciation and amortization | 48.6 | 0.3 | 1.9 | — | 50.8 | |||||||||||||||
Taxes, other than income taxes | 35.5 | 0.2 | 0.4 | — | 36.1 | |||||||||||||||
Less: Gross receipts tax expense | (21.7) | — | — | — | (21.7) | |||||||||||||||
Contribution Margin [Non-GAAP] | 272.2 | 24.1 | 16.7 | (3.3) | 309.7 | |||||||||||||||
Natural gas costs | 204.3 | 0.7 | — | (23.8) | 181.2 | |||||||||||||||
Gross receipts tax expense | 21.7 | — | — | — | 21.7 | |||||||||||||||
Operating Revenues | $ | 498.2 | $ | 24.8 | $ | 16.7 | $ | (27.1) | $ | 512.6 | ||||||||||
Three Months Ended December 31, 2019 | ||||||||||||||||||||
Operating Income [GAAP] | $ | 96.3 | $ | 4.4 | $ | 1.6 | $ | — | $ | 102.3 | ||||||||||
Operation and maintenance expenses | 108.6 | 3.1 | 7.9 | (3.0) | 116.6 | |||||||||||||||
Depreciation and amortization | 46.4 | — | 1.1 | — | 47.5 | |||||||||||||||
Taxes, other than income taxes | 37.9 | 0.3 | 0.4 | — | 38.6 | |||||||||||||||
Less: Gross receipts tax expense | (24.6) | — | — | — | (24.6) | |||||||||||||||
Contribution Margin [Non-GAAP] | 264.6 | 7.8 | 11.0 | (3.0) | 280.4 | |||||||||||||||
Natural gas costs | 241.5 | 24.5 | 0.1 | (4.2) | 261.9 | |||||||||||||||
Gross receipts tax expense | 24.6 | — | — | — | 24.6 | |||||||||||||||
Operating Revenues | $ | 530.7 | $ | 32.3 | $ | 11.1 | $ | (7.2) | $ | 566.9 | ||||||||||
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-reports-first-quarter-results-301221847.html
SOURCE Spire Inc.
Article Date
2/4/20212/3/2021 - Spire joins ONE Future Coalition's efforts to reduce methane emissions to 1% or less by 2025
Spire joins ONE Future Coalition's efforts to reduce methane emissions to 1% or less by 2025
Source: PR Newswire
Orignial Article: https://contentapi.cision...
ST. LOUIS, Feb. 3, 2021 /PRNewswire/ -- As part of Spire's commitment to the environment and the communities it serves, the natural gas provider is joining the ONE Future Coalition, a group of 37 energy companies voluntarily working together to reduce methane emissions to 1% or less by 2025.
Spire's partnership with ONE Future builds on the company's commitment to become a carbon neutral company by midcentury. Just this week, Spire appointed their first Head of Environmental Commitment, guiding the company's path to carbon neutrality. In addition, Spire continues to see success in reducing methane emissions, decreasing emissions by more than 39% since 2005 with a nearly 54% reduction projected by 2025, well ahead of international standards.
"As an energy provider, it's our privilege and responsibility to care for our planet. We are excited to join this diverse mix of peers to collaboratively reduce methane emissions and collectively report on our success," said Spire President & CEO Suzanne Sitherwood. "We believe that natural gas has an important role to play in the transition to a low-carbon future. Partnerships like ONE Future help solidify that role and will help guide us to be a carbon neutral company."
"The innovative efforts of the ONE Future Coalition allow us to build consensus views on new ways to reduce emissions," said Steve Lindsey, executive vice president and chief operating officer at Spire. "Partnering with like-minded companies is essential to reducing our industry's environmental footprint and creating a more sustainable energy future for generations to come."
ONE Future is focused on demonstrating a performance- and science-based approach to the management of methane emissions directed toward a concrete goal: to achieve an average rate of methane emissions across the entire natural gas value chain that is 1% or less of total natural gas production and delivery. As a ONE Future member, Spire will report its 2020 methane results as part of the transmission, storage and distribution sectors, and will hold a seat on its board of directors.
"We committed to being a carbon neutral company by midcentury because it helps us hold ourselves accountable for our operational impact on the environment," said Nick Popielski, the newly named head of environmental commitment at Spire. "Our partnership with ONE Future will help us further measure the impact across our footprint so that we can continue to reduce it over time."
"Spire has been helping families and business owners fuel their daily lives for more than 160 years," said Richard Hyde, executive director, ONE Future. "With a reputation of reliability and affordability that their customers depend on, we look forward to the positive enhancements that membership with the Coalition will provide."
Since ONE Future began reporting its methane intensity, each year it has surpassed its 1% goal. The 2019 Methane Intensity Report, released in November 2020, registered a 2019 methane intensity number of 0.334%; coming under its 1% goal by 67%. This indicates that ONE Future Coalition members contributed to roughly one-third of 1% of all methane emissions from natural gas produced and delivered; demonstrating that the natural gas industry can minimize methane emissions, while increasing production.
About Spire
At Spire Inc. (NYSE: SR), we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
About ONE Future
ONE Future was formed when seven companies came together in 2014 with a focus to collectively achieve a science-based average rate of methane emissions across our facilities equivalent to one percent (or less) of total natural gas production. Since our formation, we have grown to 37 companies accounting for the some of the largest natural gas producers, transmission, and distribution companies in the U.S. ONE Future members operate in 13 out of the 38 production basins and other segments of the value chain operate in multiple regions of the country, hence ONE Future's data represent a geographically diverse and material share of the U.S. natural gas supply chain. Its members include Antero Resources, Apache, Ascent Resources, Atmos Energy, Berkshire Hathaway Pipeline Group, Boardwalk Pipeline Partners, LP, Caerus Oil & Gas, Crestone Peak Resources, Crestwood, Consolidated Edison, Inc., Dominion Energy, Duke Energy, EagleClaw Midstream, Enbridge, Encino, Equinor, EQT, Equitrans Midstream, Hess, Kinder Morgan, National Grid, New Jersey Natural Gas, Northeast Natural Energy, NW Natural, ONE Gas, ONEOK, Sempra Energy, Southern Company Gas, Southern Star, Southwestern Energy, Spire, Summit Utilities, TC Energy, UGI, Williams, Woodland Midstream and Xcel Energy. For more information visit www.onefuture.us.
Media Contact:
Raegan Johnson
314-342-3300
Raegan.Johnson@SpireEnergy.com
Media Contact ONE Future:
Beverly Jernigan
713-494-1733
beverly@beverlypr.com
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SOURCE Spire Inc.
Article Date
2/3/2021Spire appoints first Head of Environmental Commitment
Source: PR Newswire
Orignial Article: https://contentapi.cision...
ST. LOUIS, Feb. 1, 2021 /PRNewswire/ -- As part of its commitment to achieve carbon neutrality by midcentury, Spire announced today that Nick Popielski has been appointed as the company's first Head of Environmental Commitment.
In this new leadership position, Popielski will lead Spire's environmental efforts, develop new processes and guide the company's strategy behind its environmental commitment of achieving carbon neutrality. Popielski will take on this added responsibility while continuing to lead business and economic development, positioning Spire to align environmental and business performance goals.
The announcement comes on the heels of another strong year of methane emission reduction at Spire. Through pipeline replacement in fiscal year 2020, Spire's investment to replace 318 miles of aging infrastructure resulted in a 19.2% leak reduction per 1,000 system miles of distribution pipelines. Overall, Spire has already reduced methane emissions by more than 39% since 2005 and projects a nearly 54% reduction by 2025, well ahead of international standards.
"We want to build on this strong momentum by ensuring we have a dedicated leader who will drive forward our commitment to protecting our planet," said Suzanne Sitherwood, Spire president and CEO. "With his proven expertise and track record in leading our business and economic development, we're happy to have Nick Popielski help us truly advance Spire's environmental efforts."
Such efforts have already earned Spire national recognition, recently being named one of "America's Most Responsible Companies" by Newsweek for a second consecutive year.
"Our focus on the environment aligns with our core values and it's important we assign leadership to it," said Steve Lindsey, Spire chief operating officer. "Nick's expertise in data and analytics position us to build on what's already established and drive our strategy."
"We believe in caring for the planet. And we know that our environmental initiatives are important to our customers as well," said Popielski, who joined Spire in 2015 as vice president of business and economic development. "I'm excited to take on this role and help Spire step forward to become carbon neutral and ensure our customers have access to the affordable, reliable, clean natural gas they rely on, every day."
A graduate of the University of Rochester, Popielski earned a master's degree from the University of Minnesota and an MBA from Georgia State University's J. Mack Robinson College of Business. He has served on the American Gas Association's Sustainable Growth Committee and Electrification Study Group, and currently serves on their Carbon Neutral Strategies Steering Committee. In addition, Popielski serves on the board of the Gas Technology Institute's (GTI) Utilization Technology Development Group and oversees Spire's participation in GTI's Emerging Technology Program, Carbon Management Information Center, and Center for Methane Research. Nick and his wife Dawn Smith-Popielski live in St. Louis.
About Spire
At Spire Inc. (NYSE: SR), we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Media Contact:
Raegan Johnson
314-342-3300
Raegan.Johnson@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-appoints-first-head-of-environmental-commitment-301219438.html
SOURCE Spire Inc.
Article Date
2/1/20211/12/2021 - Spire to Host Earnings Conference Call on Feb. 4
Spire to Host Earnings Conference Call on Feb. 4
Source: PR Newswire
Orignial Article: https://contentapi.cision...
ST. LOUIS, Jan. 12, 2021 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Thursday, Feb. 4 to discuss our fiscal 2021 first quarter financial results. We will issue our earnings news release before the market opens that day, and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Thursday, Feb. 4 | |
8:00 a.m. CT (9:00 a.m. ET) | ||
Phone Numbers: | U.S. and Canada: | 844-824-3832 |
International: | 412-317-5142 | |
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed
at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on Feb. 4 until March 5, 2021, by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10151298. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-feb-4-301205817.html
SOURCE Spire Inc.
Article Date
1/12/2021Spire named one of 'America's Most Responsible Companies' by Newsweek
Source: PR Newswire
ST. LOUIS, Dec. 17, 2020 /PRNewswire/ -- Spire is ranked for a second consecutive year as one of "America's Most Responsible Companies" by Newsweek, recognizing the natural gas company for their strong performance as a corporate citizen.
In ranking the top 400 most responsible companies across 14 industries in the United States, Newsweek scored companies based on their commitment to the environment, social issues and corporate governance. In the new list posted Dec. 2 on Newsweek's website, Spire stands out as one of only seven companies ranked from their home state of Missouri.
"A few years ago, we set out to reimagine what it means to be an energy company — one that exists to do the very best for people, communities and the planet," said Suzanne Sitherwood, president and chief executive officer at Spire. "We're honored that this commitment has named us among America's 400 most responsible companies."
The annual rankings are developed by the market and data research firm Statista. After screening the 2,000 largest public companies in the U.S., Statista conducted independent surveys among 7,500 U.S. citizens and then examined key performance indicators from public reports. In Spire's case, that data comes from their 2019 Corporate Social Responsibility (CSR) Report, highlighting how Spire uses their energy for good, driving positive and significant change in the communities they serve.
For example:
In the community, Spire supports dozens of organizations and initiatives, investing nearly $5 million in 2019 to advance the communities they serve across Alabama, Mississippi, Missouri, Texas and Wyoming. Among recent projects in 2020:
For more about the Newsweek rankings and to view the full list, click here.
About Spire
At Spire Inc. (NYSE: SR), we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Media Contact:
Raegan Johnson
314-342-3300
Raegan.Johnson@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-named-one-of-americas-most-responsible-companies-by-newsweek-301195487.html
SOURCE Spire Inc.
Article Date
12/17/2020Spire Increases Common Stock Dividend 18th Consecutive Year of Increases
Source: PR Newswire
ST. LOUIS, Nov. 18, 2020 /PRNewswire/ -- The board of directors of Spire Inc. (NYSE: SR) unanimously agreed to increase the quarterly common stock dividend to $0.65 per share from $0.6225 per share. This full year $0.11 increase brings the annualized rate to $2.60 per share.
"Spire's growing dividend ensures that our investors benefit from another year of solid performance and its strong financial position. The Board of Directors is confident in our Company's growth strategy and plans going forward. Growing our dividend is an integral part of how we deliver value to our shareholders and maintain Spire's position as a compelling investment," said Ed Glotzbach, chairman of the board of Spire.
The dividend is payable on January 5, 2021, to shareholders of record on December 11, 2020. Spire has continuously paid a cash dividend since 1946, with 2021 marking the Company's 18th consecutive year of increasing its common stock dividend on an annualized basis.
The board of directors also declared the regular quarterly dividend of $0.36875 per depositary share on Spire's 5.90 percent Series A Cumulative Redeemable Perpetual Preferred Stock payable February 15, 2021, to holders of record on January 25, 2021.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-increases-common-stock-dividend-18th-consecutive-year-of-increases-301175442.html
SOURCE Spire Inc.
Article Date
11/18/202011/18/2020 - Spire Reports Solid FY20 Results
Spire Reports Solid FY20 Results
Source: PR Newswire
ST. LOUIS, Nov. 18, 2020 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported results for its fiscal 2020 full year ended September 30. Highlights include:
"Thanks to the commitment and resilience of our employees, Spire delivered a strong year for our shareholders, customers and communities. Even during the coronavirus, we focused on our strategic priorities and achieved further gains in the safety and integrity of our natural gas delivery system, customer service, and reductions in methane emissions, in keeping with our sustainability commitment to achieve carbon neutrality by midcentury. Even with the immense challenges—health, social and economic—we pulled together as a company to ensure the safety and well-being of our workforce, customers and communities. And, I'm proud to say, through it all, we applied our innovative thinking to establish new ways to help our customers stay connected to the energy they need," said Suzanne Sitherwood, president and chief executive officer of Spire. "Looking ahead, we'll continue to invest in and innovate around enhancing our operating performance including customer service, and delivering on our ESG commitments, while achieving targeted earnings growth of 5-7%."
Fiscal Year Results | Year Ended September 30, | |||||||||||||||
(Millions) | (Per Diluted Common Share) | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Economic Earnings* by Segment | ||||||||||||||||
Gas Utility | $ | 213.4 | $ | 199.8 | ||||||||||||
Gas Marketing | 9.1 | 19.4 | ||||||||||||||
Other | (14.7) | (24.1) | ||||||||||||||
Total | $ | 207.8 | $ | 195.1 | $ | 3.76 | $ | 3.73 | ||||||||
Impairments, pre-tax | (148.6) | — | (2.89) | — | ||||||||||||
Provision for ISRS rulings, pre-tax | — | (12.2) | — | (0.23) | ||||||||||||
All other adjustments, including tax effects | 29.4 | 1.7 | 0.57 | 0.02 | ||||||||||||
Net Income | $ | 88.6 | $ | 184.6 | $ | 1.44 | $ | 3.52 | ||||||||
Weighted Average Diluted Shares Outstanding | 51.3 | 50.8 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." | ||||||||||||||||
For fiscal 2020, we reported consolidated net income of $88.6 million ($1.44 per diluted share) compared to $184.6 million ($3.52 per share) in the prior-year period. The decrease reflects after-tax impairment charges of $117.3 million ($2.28 per share) recorded in the third quarter of fiscal 2020.
On a net economic earnings (NEE) basis, Spire reported $207.8 million ($3.76 per share), up from $195.1 million ($3.73 per share) a year ago. This increase reflects improved performance at our Gas Utility segment, along with a higher contribution from Spire STL Pipeline and improved operating results from Spire Storage. These benefits were partially offset by lower Gas Marketing earnings. Net income and NEE per share were both impacted by the preferred dividends and the common stock issued over the last twelve months.
NEE excludes from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as impairments and certain regulatory, legislative, or GAAP standard-setting actions.
Gas Utility
The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. For fiscal 2020, this segment reported NEE of $213.4 million, up from $199.8 million a year ago. This increase reflects a higher contribution margin and lower operating expenses, partially offset by higher depreciation expense.
Fiscal 2020 contribution margin increased by $33.6 million, reflecting an increase of $20.2 million in Infrastructure System Replacement Surcharge (ISRS) run-rate revenues (and a $10.0 million net year-over-year favorable impact from the provisions for ISRS rulings booked in fiscal 2019), and rate adjustments under the Rate Stabilization and Equalization (RSE) mechanism at Spire Alabama. These positive factors were partially offset by $5.4 million lower volumetric margins (net of weather mitigation).
Operation and maintenance (O&M) expenses in fiscal 2020 decreased by $20.4 million compared to the prior-year period, including the impact of a $9.1 million year-over-year reclassification of certain postretirement benefit costs to other income and expense (no impact on net income). Excluding this adjustment, O&M expenses decreased by $11.3 million, primarily due to lower bad debt expense in Spire Alabama and lower operations and employee-related costs. These amounts reflect the deferral of certain expenses for Spire Missouri pursuant to the Accounting Authority Order (AAO) from the Missouri Public Service Commission (MoPSC) discussed in Regulatory Matters later in this release. Depreciation and amortization expense rose by $10.3 million due to ongoing capital investment across our utilities.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing services primarily across the central and southern United States. Fiscal 2020 Gas Marketing NEE, which excludes mark-to-market and fair value adjustments, was $9.1 million, a decrease of $10.3 million from the prior year. Current year results reflect the benefit of higher volumes that was more than offset by higher costs incurred in fiscal 2020 for incremental storage capacity (whose value will not be realized until fiscal 2021), as well as less favorable market conditions.
Other
Other gas-related operations and corporate costs were $14.7 million, a $9.4 million improvement from a year ago. The improvement was driven by an increase in earnings from Spire STL Pipeline and improved operating results from Spire Storage.
Fourth Quarter Results | Three Months Ended September 30, | |||||||||||||||
(Millions) | (Per Diluted Common Share) | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Economic Loss* by Segment | ||||||||||||||||
Gas Utility | $ | (8.4) | $ | (20.9) | ||||||||||||
Gas Marketing | (2.2) | 1.6 | ||||||||||||||
Other | (4.7) | (4.4) | ||||||||||||||
Total | $ | (15.3) | $ | (23.7) | $ | (0.37) | $ | (0.54) | ||||||||
Provision for ISRS rulings, pre-tax | — | (12.2) | — | (0.23) | ||||||||||||
All other adjustments, including tax effects | (4.4) | 1.6 | (0.08) | 0.03 | ||||||||||||
Net Loss | $ | (19.7) | $ | (34.3) | $ | (0.45) | $ | (0.74) | ||||||||
Weighted Average Diluted Shares Outstanding | 51.6 | 50.9 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." | ||||||||||||||||
Our gas utility business is seasonal in nature, with earnings concentrated during the winter heating season. As a result, we typically report a loss in our fiscal fourth quarter ended September 30. For the fourth quarter of fiscal 2020, we reported a consolidated net loss of $19.7 million ($0.45 per diluted share), compared to a prior year net loss of $34.3 million ($0.74 per share) that included a $9.3 million after-tax provision for the Missouri ISRS rulings that was settled earlier in fiscal 2020.
On a NEE basis, the quarterly loss was $15.3 million ($0.37 per share) compared to a loss of $23.7 million ($0.54 per share) in the prior-year period. The lower loss is due to improved results from Gas Utility, partially offset by a loss at Spire Marketing.
Gas Utility
Gas Utility reported a loss on a NEE basis of $8.4 million, compared to a loss of $20.9 million in the prior year. Excluding the prior year impact of ISRS rulings, a higher contribution margin and lower O&M expenses were partially offset by higher depreciation.
Contribution margin increased $20.5 million over the prior-year period, or $8.3 million after removing the impact of the prior year ISRS ruling provision, reflecting an increase of $5.0 million in ISRS run-rate revenues, along with higher usage and modest customer growth totaling $3.1 million.
O&M expenses of $101.4 million were down $10.0 million compared to the prior year as a result of lower bad debt in Spire Alabama and lower operations, outside services, and employee-related costs. Spire Missouri deferred bad debt cost increases related to COVID-19, under the AAO (see discussion in Regulatory Matters). Depreciation and amortization expense increased by $2.3 million from last year, reflecting continued capital investment.
Gas Marketing
Fourth quarter net economic loss was $2.2 million, compared to NEE of $1.6 million in the prior year. Performance in the current-year period reflects the costs incurred in 2020 for incremental storage capacity, whose value will not be realized until the upcoming winter season in fiscal 2021, as well as less favorable market conditions.
Other
Other gas-related operations and corporate costs on a NEE basis for the fourth quarter were $4.7 million in fiscal 2020, essentially flat with a year ago, as higher corporate costs were offset by improved results from Spire Storage.
Earnings Guidance and Outlook
We have increased our long-term NEE per share earnings growth target to 5-7%, reflecting the expectation of continued consistent growth of our regulated businesses and improved contributions from Spire Marketing.
We have also increased our targeted capital investment to $3.0 billion for the 5-year period now extending to 2025. This plan, focused on infrastructure upgrades, technology and new business investments in our gas utilities, supports our commitments to provide safe, reliable and sustainable energy to our customers. These investments are anticipated to drive annual rate base growth of 7-8%, supported by pipeline replacement programs of up to 15 years in length. We expect more than 80% of our utility spend to be recovered in rates with minimal lag under regulatory mechanisms or reflected in earnings.
Consistent with our new long-term growth target, we expect fiscal 2021 NEE per share to be in the range of $4.00-$4.20 reflecting growth in our gas utilities and a higher contribution from Spire Marketing due to expansion of the business and the benefit of storage positions entered into during fiscal 2020. Capital expenditures for fiscal 2021 are expected to be $590 million.
Regulatory Matters
Resolution of Missouri ISRS matters
As previously reported, legislation clarifying the eligibility of pipeline replacement investments for ISRS recovery was passed in Missouri, effective August 28, 2020. Going forward, qualification for ISRS recovery will be based on safety criteria that calls for older, more leak-prone infrastructure (cast iron, bare steel) to be replaced.
Spire Missouri has successfully resolved the ISRS cases that had been appealed by the Office of Public Counsel, with no change to the amounts authorized to be collected. We have also been authorized additional annualized ISRS revenues for two requests filed with the MoPSC in 2020, including $11.1 million effective May 25, 2020 (February filing) and $7.0 million approved on November 12, 2020 (August filing). Spire Missouri's annualized ISRS run-rate is now $47.3 million.
Missouri authorization to defer COVID-19 costs
On October 21, 2020, the MoPSC approved our request for an Accounting Authority Order (AAO) that allows Spire Missouri to track and defer extraordinary costs associated with COVID-19. As a result, Spire Missouri recorded net cost deferrals and established an associated regulatory asset of $3.8 million as of September 30, 2020, offsetting costs incurred earlier in the fiscal year for bad debts, enhanced cleaning and protective equipment required to ensure the safety of our employees and customers. These costs were offset, in part, by lower costs for travel, meals and training. Additionally, the AAO asks Spire Missouri to track lost fee revenues with these deferred costs and tracked revenues to be considered for rate recovery in our next general rate case.
Missouri rate case filing
Spire Missouri anticipates it will file its next rate case before the end of calendar year 2020, based on a required 60-day advance notice it filed with the MoPSC on October 8, 2020.
Since our last rate case, we have remained focused on providing even better service to customers while keeping our rates lower than they were 15 years ago. Although not required to file a rate case until October of next year, we determined now was the right time to file, given the impact of our rate base growth and other developments.
The decision to file a rate case now also includes other considerations, including:
Alabama
On October 26, 2020, Spire Alabama made its annual RSE rate filing with the Alabama Public Service Commission (APSC), presenting the utility's budget for the fiscal year ending September 30, 2021, including net income and a calculation of allowed return on average common equity (ROE). In fiscal 2020, Spire Alabama operated under an infrastructure replacement incentive called the Accelerated Infrastructure Modernization (AIM) mechanism. This incentive provides for a 10 basis-point increase in the allowed ROE of 10.4 percent in fiscal 2021 if a prescribed number of pipeline miles were replaced in fiscal 2020. Spire Alabama exceeded the threshold miles to be eligible for the AIM incentive, and accordingly, filed for a 10.5 percent ROE for fiscal 2021.
On October 23, 2020, Spire Gulf also made its annual RSE rate filing with the APSC based on its budget for fiscal 2021 and an allowed ROE of 10.7 percent.
The filings are currently being reviewed by the APSC, and we anticipate that new rates will be effective on or about December 1, 2020.
Balance Sheets and Cash Flow
In fiscal 2020, we maintained a solid capital structure and ample liquidity. Short-term borrowings outstanding at September 30, 2020, were $648.0 million, down from $743.2 million at September 30, 2019, reflecting stronger cash flow and the use of proceeds from long-term debt financing. Our working capital needs are seasonal in nature and typically peak during the winter. We retain significant capacity in our revolving credit facility and related commercial paper program to meet our liquidity needs. Spire had approximately $475 million of available liquidity at year end.
Net cash provided by operating activities was $469.9 million for the twelve months ended September 30, 2020, up from $450.9 million for fiscal 2019. The increase was largely driven by fluctuations in working capital balances.
Capital expenditures for fiscal 2020 were $638.4 million, down from $823.3 million in the prior year due to decreases in investment in Spire STL Pipeline, which was completed and placed into service in late 2019, and lower expenditures at Spire Storage. Capital expenditures for our gas utilities of $548 million were focused on pipeline upgrades that enabled us to further reduce methane emissions, as well as technology upgrades and new business.
For additional details on Spire's results for the fourth quarter and full year of fiscal 2020, please see the accompanying unaudited Condensed Consolidated Statements of Income, Balance Sheets, and Statements of Cash Flows.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2020 fourth quarter and full-year financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
Date and Time: | Wednesday, Nov. 18 | ||
8 a.m. CT (9 a.m. ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 | ||
The call will also be webcast and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available at 10 a.m. CT (11 a.m. ET) on Nov. 18 until Dec. 18, 2020, by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10148490.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's annual (Form 10-K) filing with the Securities and Exchange Commission.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," "adjusted long-term capitalization," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of impairments and other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2019, other items included a provision for refunds to customers of amounts previously collected under MoPSC approved orders as a result of the November 2019 ISRS rulings against Spire Missouri. In fiscal 2020, adjustments for ISRS revenues reflect the regulatory settlement reached in the third quarter, such that the related GAAP provision for customer credit in fiscal 2020 is reflected in net economic earnings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and gross receipts taxes. Adjusted long-term capitalization treats preferred stock as 50% debt and 50% equity, as rating agencies would treat preferred stock. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Condensed Consolidated Statements of Income – Unaudited
(In Millions, except per share amounts) | Three Months Ended September 30, | Year Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating Revenues | $ | 251.9 | $ | 225.6 | $ | 1,855.4 | $ | 1,952.4 | ||||||||
Operating Expenses: | ||||||||||||||||
Natural gas | 64.2 | 57.3 | 696.1 | 840.3 | ||||||||||||
Operation and maintenance | 111.4 | 121.2 | 458.6 | 474.1 | ||||||||||||
Depreciation and amortization | 50.5 | 46.8 | 197.3 | 181.7 | ||||||||||||
Taxes, other than income taxes | 25.7 | 25.9 | 148.4 | 154.0 | ||||||||||||
Impairments | — | — | 148.6 | — | ||||||||||||
Total Operating Expenses | 251.8 | 251.2 | 1,649.0 | 1,650.1 | ||||||||||||
Operating Income (Loss) | 0.1 | (25.6) | 206.4 | 302.3 | ||||||||||||
Interest Expense, Net | 25.2 | 25.3 | 105.5 | 104.4 | ||||||||||||
Other Income, Net | 0.9 | 5.9 | 0.1 | 21.2 | ||||||||||||
(Loss) Income Before Income Taxes | (24.2) | (45.0) | 101.0 | 219.1 | ||||||||||||
Income Tax (Benefit) Expense | (4.5) | (10.7) | 12.4 | 34.5 | ||||||||||||
Net (Loss) Income | (19.7) | (34.3) | 88.6 | 184.6 | ||||||||||||
Provision for preferred dividends | 3.7 | 3.7 | 14.8 | 5.3 | ||||||||||||
(Loss) income allocated to participating securities | (0.1) | (0.1) | 0.1 | 0.4 | ||||||||||||
Net (Loss) Income Available to Common Shareholders | $ | (23.3) | $ | (37.9) | $ | 73.7 | $ | 178.9 | ||||||||
Weighted Average Number of Shares Outstanding: | ||||||||||||||||
Basic | 51.5 | 50.8 | 51.2 | 50.7 | ||||||||||||
Diluted | 51.6 | 50.9 | 51.3 | 50.8 | ||||||||||||
Basic (Loss) Earnings Per Share | $ | (0.45) | $ | (0.75) | $ | 1.44 | $ | 3.53 | ||||||||
Diluted (Loss) Earnings Per Share | (0.45) | (0.74) | 1.44 | 3.52 | ||||||||||||
Dividends Declared Per Common Share | 0.6225 | 0.5925 | 2.49 | 2.37 | ||||||||||||
Condensed Consolidated Balance Sheets – Unaudited
(In Millions) | September 30, | September 30, | ||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Utility Plant | $ | 6,766.3 | $ | 6,146.5 | ||||
Less: Accumulated depreciation and amortization | 2,086.2 | 1,794.5 | ||||||
Net Utility Plant | 4,680.1 | 4,352.0 | ||||||
Other Property and Investments | 504.0 | 550.1 | ||||||
Current Assets: | ||||||||
Cash and cash equivalents | 4.1 | 5.8 | ||||||
Accounts receivable, net | 253.3 | 289.6 | ||||||
Inventories | 191.5 | 196.6 | ||||||
Other | 141.7 | 122.5 | ||||||
Total Current Assets | 590.6 | 614.5 | ||||||
Deferred Charges and Other Assets: | ||||||||
Goodwill | 1,171.6 | 1,171.6 | ||||||
Other deferred charges and other assets | 1,294.9 | 931.0 | ||||||
Total Deferred Charges and Other Assets | 2,466.5 | 2,102.6 | ||||||
Total Assets | $ | 8,241.2 | $ | 7,619.2 | ||||
CAPITALIZATION AND LIABILITIES | ||||||||
Capitalization: | ||||||||
Preferred stock | $ | 242.0 | $ | 242.0 | ||||
Common stock and paid-in capital | 1,600.8 | 1,556.8 | ||||||
Retained earnings | 720.7 | 775.5 | ||||||
Accumulated other comprehensive loss | (41.2) | (31.3) | ||||||
Total Shareholders' Equity | 2,522.3 | 2,543.0 | ||||||
Temporary equity | 3.4 | 3.4 | ||||||
Long-term debt (less current portion) | 2,423.7 | 2,082.6 | ||||||
Total Capitalization | 4,949.4 | 4,629.0 | ||||||
Current Liabilities: | ||||||||
Current portion of long-term debt | 60.4 | 40.0 | ||||||
Notes payable | 648.0 | 743.2 | ||||||
Accounts payable | 243.3 | 301.5 | ||||||
Accrued liabilities and other | 497.5 | 384.1 | ||||||
Total Current Liabilities | 1,449.2 | 1,468.8 | ||||||
Deferred Credits and Other Liabilities: | ||||||||
Deferred income taxes | 511.4 | 451.4 | ||||||
Other deferred credits and other liabilities | 1,331.2 | 1,070.0 | ||||||
Total Deferred Credits and Other Liabilities | 1,842.6 | 1,521.4 | ||||||
Total Capitalization and Liabilities | $ | 8,241.2 | $ | 7,619.2 | ||||
Condensed Consolidated Statements of Cash Flows – Unaudited
(In Millions) | Year Ended September 30, | |||||||
2020 | 2019 | |||||||
Operating Activities: | ||||||||
Net income | $ | 88.6 | $ | 184.6 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 197.3 | 181.7 | ||||||
Deferred income taxes and investment tax credits | 9.0 | 31.8 | ||||||
Changes in assets and liabilities | 166.8 | 56.8 | ||||||
Other | 8.2 | (4.0) | ||||||
Net cash provided by operating activities | 469.9 | 450.9 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (638.4) | (823.3) | ||||||
Business acquisitions | — | (7.9) | ||||||
Other | 6.8 | (7.1) | ||||||
Net cash used in investing activities | (631.6) | (838.3) | ||||||
Financing Activities: | ||||||||
Issuance of preferred stock | — | 242.0 | ||||||
Issuance of long-term debt | 510.0 | 230.0 | ||||||
Repayment of long-term debt | (147.0) | (184.1) | ||||||
(Repayment) issuance of short-term debt, net | (95.2) | 189.6 | ||||||
Issuance of common stock | 41.1 | 19.5 | ||||||
Dividends paid on common stock | (128.0) | (119.0) | ||||||
Dividends paid on preferred stock | (14.8) | (3.4) | ||||||
Other | (6.1) | (2.8) | ||||||
Net cash provided by financing activities | 160.0 | 371.8 | ||||||
Net Decrease in Cash, Cash Equivalents, and Restricted Cash | (1.7) | (15.6) | ||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year | 5.8 | 21.4 | ||||||
Cash, Cash Equivalents, and Restricted Cash at End of Year | $ | 4.1 | $ | 5.8 | ||||
Net Economic Earnings and Reconciliation to GAAP
(In Millions, except per share amounts) | Gas Utility | Gas Marketing | Other | Total | Per Diluted Common | |||||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||
Net Loss [GAAP] | $ | (8.4) | $ | (6.6) | $ | (4.7) | $ | (19.7) | $ | (0.45) | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Fair value and timing adjustments | (0.1) | 5.8 | — | 5.7 | 0.11 | |||||||||||||||
Income tax effect of adjustments (1) | 0.1 | (1.4) | — | (1.3) | (0.03) | |||||||||||||||
Net Economic Loss [Non-GAAP] | $ | (8.4) | $ | (2.2) | $ | (4.7) | $ | (15.3) | $ | (0.37) | ||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||||||
Net (Loss) Income [GAAP] | $ | (30.2) | $ | 0.3 | $ | (4.4) | $ | (34.3) | $ | (0.74) | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Provision for ISRS rulings | 12.2 | — | — | 12.2 | 0.23 | |||||||||||||||
Fair value and timing adjustments | — | 1.8 | — | 1.8 | 0.04 | |||||||||||||||
Income tax effect of adjustments (1) | (2.9) | (0.5) | — | (3.4) | (0.07) | |||||||||||||||
Net Economic (Loss) Earnings [Non-GAAP] | $ | (20.9) | $ | 1.6 | $ | (4.4) | $ | (23.7) | $ | (0.54) | ||||||||||
Year Ended September 30, 2020 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 213.6 | $ | 7.0 | $ | (132.0) | $ | 88.6 | $ | 1.44 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Impairment losses | — | — | 148.6 | 148.6 | 2.89 | |||||||||||||||
Fair value and timing adjustments | (0.3) | 2.8 | — | 2.5 | 0.05 | |||||||||||||||
Income tax effect of adjustments (1) | 0.1 | (0.7) | (31.3) | (31.9) | (0.62) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 213.4 | $ | 9.1 | $ | (14.7) | $ | 207.8 | $ | 3.76 | ||||||||||
Year Ended September 30, 2019 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 190.5 | $ | 18.5 | $ | (24.4) | $ | 184.6 | $ | 3.52 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Provision for ISRS rulings | 12.2 | — | — | 12.2 | 0.23 | |||||||||||||||
Fair value and timing adjustments | — | 1.2 | — | 1.2 | 0.03 | |||||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 0.4 | 0.4 | 0.01 | |||||||||||||||
Income tax effect of adjustments (1) | (2.9) | (0.3) | (0.1) | (3.3) | (0.06) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 199.8 | $ | 19.4 | $ | (24.1) | $ | 195.1 | $ | 3.73 | ||||||||||
(1) Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the related effective date. | ||||||||||||||||||||
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation, which includes reductions for cumulative preferred dividends and participating shares. | ||||||||||||||||||||
Contribution Margin and Reconciliation to GAAP
(In Millions) | Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 4.7 | $ | (8.9) | $ | 4.3 | $ | — | $ | 0.1 | ||||||||||
Operation and maintenance expenses | 101.4 | 2.9 | 10.2 | (3.1) | 111.4 | |||||||||||||||
Depreciation and amortization | 48.5 | 0.3 | 1.7 | — | 50.5 | |||||||||||||||
Taxes, other than income taxes | 25.2 | 0.2 | 0.3 | — | 25.7 | |||||||||||||||
Less: Gross receipts tax expense | (11.7) | (0.1) | — | — | (11.8) | |||||||||||||||
Contribution Margin [Non-GAAP] | 168.1 | (5.6) | 16.5 | (3.1) | 175.9 | |||||||||||||||
Natural gas costs | 56.5 | 16.2 | 0.1 | (8.6) | 64.2 | |||||||||||||||
Gross receipts tax expense | 11.7 | 0.1 | — | — | 11.8 | |||||||||||||||
Operating Revenues | $ | 236.3 | $ | 10.7 | $ | 16.6 | $ | (11.7) | $ | 251.9 | ||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||||||
Operating (Loss) Income [GAAP] | $ | (23.8) | $ | 0.9 | $ | (2.7) | $ | — | $ | (25.6) | ||||||||||
Operation and maintenance expenses | 111.4 | 3.2 | 9.3 | (2.7) | 121.2 | |||||||||||||||
Depreciation and amortization | 46.2 | 0.1 | 0.5 | — | 46.8 | |||||||||||||||
Taxes, other than income taxes | 25.4 | 0.2 | 0.3 | — | 25.9 | |||||||||||||||
Less: Gross receipts tax expense | (11.6) | (0.1) | — | — | (11.7) | |||||||||||||||
Contribution Margin [Non-GAAP] | 147.6 | 4.3 | 7.4 | (2.7) | 156.6 | |||||||||||||||
Natural gas costs | 48.0 | 9.7 | (0.2) | (0.2) | 57.3 | |||||||||||||||
Gross receipts tax expense | 11.6 | 0.1 | — | — | 11.7 | |||||||||||||||
Operating Revenues | $ | 207.2 | $ | 14.1 | $ | 7.2 | $ | (2.9) | $ | 225.6 | ||||||||||
Year Ended September 30, 2020 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 334.3 | $ | 9.3 | $ | (137.2) | $ | — | $ | 206.4 | ||||||||||
Operation and maintenance expenses | 421.3 | 11.8 | 38.2 | (12.7) | 458.6 | |||||||||||||||
Depreciation and amortization | 189.7 | 0.6 | 7.0 | — | 197.3 | |||||||||||||||
Taxes, other than income taxes | 146.5 | 1.1 | 0.8 | — | 148.4 | |||||||||||||||
Impairment losses | — | — | 148.6 | — | 148.6 | |||||||||||||||
Less: Gross receipts tax expense | (91.1) | (0.4) | — | — | (91.5) | |||||||||||||||
Contribution Margin [Non-GAAP] | 1,000.7 | 22.4 | 57.4 | (12.7) | 1,067.8 | |||||||||||||||
Natural gas costs | 660.2 | 65.1 | 0.4 | (29.6) | 696.1 | |||||||||||||||
Gross receipts tax expense | 91.1 | 0.4 | — | — | 91.5 | |||||||||||||||
Operating Revenues | $ | 1,752.0 | $ | 87.9 | $ | 57.8 | $ | (42.3) | $ | 1,855.4 | ||||||||||
Year Ended September 30, 2019 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 293.4 | $ | 23.2 | $ | (14.3) | $ | — | $ | 302.3 | ||||||||||
Operation and maintenance expenses | 441.7 | 11.7 | 31.6 | (10.9) | 474.1 | |||||||||||||||
Depreciation and amortization | 179.4 | 0.1 | 2.2 | — | 181.7 | |||||||||||||||
Taxes, other than income taxes | 151.7 | 0.8 | 1.5 | — | 154.0 | |||||||||||||||
Less: Gross receipts tax expense | (99.1) | (0.2) | — | — | (99.3) | |||||||||||||||
Contribution Margin [Non-GAAP] | 967.1 | 35.6 | 21.0 | (10.9) | 1,012.8 | |||||||||||||||
Natural gas costs | 794.6 | 47.9 | 0.5 | (2.7) | 840.3 | |||||||||||||||
Gross receipts tax expense | 99.1 | 0.2 | — | — | 99.3 | |||||||||||||||
Operating Revenues | $ | 1,860.8 | $ | 83.7 | $ | 21.5 | $ | (13.6) | $ | 1,952.4 | ||||||||||
Adjusted Long-Term Capitalization and Reconciliation to GAAP
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(Millions) | Equity1 | Debt | Total | Equity1 | Debt | Total | |||||||||||||||||
Capitalization | $ | 2,525.7 | $ | 2,423.7 | $ | 4,949.4 | $ | 2,546.4 | $ | 2,082.6 | $ | 4,629.0 | |||||||||||
Current portion of long-term debt | — | 60.4 | 60.4 | — | 40.0 | 40.0 | |||||||||||||||||
Long-term Capitalization [GAAP] | 2,525.7 | 2,484.1 | 5,009.8 | 2,546.4 | 2,122.6 | 4,669.0 | |||||||||||||||||
Reclassify 50% of preferred stock | (121.0) | 121.0 | — | (121.0) | 121.0 | — | |||||||||||||||||
Adjusted Long-term Capitalization [non-GAAP] | $ | 2,404.7 | $ | 2,605.1 | $ | 5,009.8 | $ | 2,425.4 | $ | 2,243.6 | $ | 4,669.0 | |||||||||||
% of adjusted long-term capitalization | 48.0% | 52.0% | 100.0% | 51.9% | 48.1% | 100.0% | |||||||||||||||||
1 Includes temporary equity of $3.4 as of September 30, 2020 and 2019. | |||||||||||||||||||||||
Investor Contact: |
Scott W. Dudley Jr. |
314-342-0878 |
Media Contact: |
Jessica B. Willingham |
314-342-3300 |
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-reports-solid-fy20-results-301175443.html
SOURCE Spire Inc.
Article Date
11/18/2020Spire to Host Earnings Conference Call on Nov. 18
Source: PR Newswire
ST. LOUIS, Nov. 4, 2020 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, Nov. 18 to discuss our fiscal 2020 results. We will issue our earnings news release before the market opens that day, and it will be available on our website at Investors.SpireEnergy.com under the News tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Wednesday, Nov. 18 |
8:00 a.m. CT (9 a.m. ET) | |
Phone Numbers: | U.S. and Canada: 844-824-3832 |
International: 412-317-5142 |
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 9 a.m. CT (10 a.m. ET) on Nov. 18 until Dec. 18, 2020, by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10148490. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.8 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-nov-18-301166513.html
SOURCE Spire Inc.
Article Date
11/4/20208/5/2020 - Spire Reports Third Quarter Results
Spire Reports Third Quarter Results
Source: PR Newswire
ST. LOUIS, Aug. 5, 2020 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported results for its fiscal third quarter ended June 30, 2020. Highlights include:
"Amid the coronavirus, the resulting economic slowdown and social unrest across our country, we've remained focused on safely and reliably serving our customers. We're committed to providing the energy people need to fuel their daily lives while also stepping up to support people and communities in new ways," said Suzanne Sitherwood, president and chief executive officer of Spire. "During the quarter, decisions in two key areas stand out as we move the company forward. We made significant progress in resolving several open items regarding the regulatory recovery of our pipeline upgrade investments in Missouri. We also made important decisions regarding our development plan and related investment in Spire Storage, determining that a longer time horizon will be required for optimizing and positioning the business to serve its target markets. Overall, our third quarter results were driven by our gas utilities as we continued our initiatives to upgrade our infrastructure and enhance our operating efficiency and service levels. We look forward to further delivering value for our customers, communities and shareholders."
Third Quarter Results | Three Months Ended June 30, | |||||||||||||||
(Millions) | (Per Diluted Common Share) | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Economic Earnings (Loss)* by Segment | ||||||||||||||||
Gas Utility | $ | 8.4 | $ | 7.6 | ||||||||||||
Gas Marketing | 0.1 | 3.3 | ||||||||||||||
Other | (1.2) | (5.9) | ||||||||||||||
Total | $ | 7.3 | $ | 5.0 | $ | 0.07 | $ | 0.07 | ||||||||
Impairments, pre-tax | (148.6) | — | (2.89) | — | ||||||||||||
Other net economic earnings adjustments, pre-tax | 23.3 | (10.7) | 0.45 | (0.21) | ||||||||||||
Income tax effect of pre-tax adjustments | 25.7 | 2.7 | 0.50 | 0.05 | ||||||||||||
Net Income | $ | (92.3) | $ | (3.0) | $ | (1.87) | $ | (0.09) | ||||||||
Weighted Average Diluted Shares Outstanding | 51.2 | 50.7 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
Consolidated net loss for the three months ended June 30, 2020, the third quarter of our fiscal year, was $92.3 million, or $1.87 per diluted share, compared to a loss of $3.0 million, or $0.09 per share a year ago. The current year period includes non-cash, pre-tax impairment charges totaling $148.6 million ($117.3 million after tax) that relate principally to a write-down of our Spire Storage asset value as previously announced. See additional information in the Other section detailing quarterly results later in this news release.
For the third quarter of fiscal 2020, NEE was $7.3 million ($0.07 per share), compared to $5.0 million ($0.07 per share) last year. The increase in earnings reflects improved contribution from Gas Utility and Other operations partially offset by lower results from Gas Marketing. Per share results reflect the impacts of preferred and common stock issued over the last twelve months.
NEE excludes from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as impairments and certain regulatory, legislative, or GAAP standard-setting actions. For the fiscal 2020 periods presented, adjustments for Missouri Infrastructure System Replacement Surcharge (ISRS) revenues reflect the regulatory settlement reached in the third quarter regarding the 2016-2018 ISRS cases that will result in a $15.0 million one-time bill credit to Spire Missouri customers. See additional information under Regulatory Matters later in this news release.
Gas Utility
The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. Third quarter NEE was $8.4 million, up from $7.6 million in the prior year. The segment benefited from higher ISRS revenues and customer growth, combined with lower operation and maintenance (O&M) expenses, slightly offset by higher depreciation and marginally unfavorable regulatory adjustments in Alabama.
Contribution margin increased $2.9 million, reflecting higher ISRS of $7.3 million, partially offset by COVID-19 impacts of $2.5 million due to lower late payment fees and volumes net of fixed charges.
O&M expenses of $112.5 million for the quarter were up $1.3 million from last year reflecting a $9.5 million quarter-over-quarter increase in benefit costs in O&M primarily due to non-service pension costs recorded in Other Income (Expense). Excluding this adjustment, which had no bottom-line impact, O&M expenses were down $8.2 million. The decrease was driven by lower employee-related costs offset by COVID-19 related expense totaling $3.4 million including higher bad debt expenses. Depreciation and amortization expenses increased $2.7 million from last year, reflecting incremental capital investment across all our utilities over the past year. Taxes other than income taxes increased $2.0 million, reflecting primarily higher volume-driven gross receipts taxes.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing services across the central and southern United States. Third quarter NEE was $0.1 million, down from $3.3 million in the prior year, as higher volumes associated with the segment's business expansion were more than offset by the costs of incremental storage capacity, transportation fees, and less favorable market conditions.
Other
Other operations and corporate costs on a NEE basis were $1.2 million in the third quarter of fiscal 2020, a $4.7 million improvement over the prior year, due to higher earnings from Spire STL Pipeline, which began commercial operations late in calendar 2019, and a smaller loss from Spire Storage. These benefits were only partially offset by slightly higher interest expense and other corporate costs. On an adjusted EBITDA basis, Spire Storage incurred a loss of $0.9 million in the current quarter compared to a loss of $4.4 million a year ago.
The third quarter of fiscal 2020 includes a non-cash, pre-tax impairment charge of $140.8 million related to Spire Storage, reflecting a write-down of the value of storage assets as a result of a longer time horizon required to optimize and position it to serve western U.S. energy markets that continue to evolve. We remain committed to serving our customers through the ongoing development and operation of the facility, which is expected to include $20 million in capital investment over the next two years to enhance the facility's capabilities. We expect to file a Section 7(c) application with the Federal Energy Regulatory Commission by early fiscal 2021, outlining a specific path for future development.
Third quarter results also include an impairment charge of $7.8 million related to two commercial compressed natural gas fueling stations.
Year-to-Date Results | Nine Months Ended June 30, | |||||||||||||||
(Millions) | (Per Diluted Common Share) | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Economic Earnings (Loss)* by Segment | ||||||||||||||||
Gas Utility | $ | 221.8 | $ | 220.7 | ||||||||||||
Gas Marketing | 11.3 | 17.8 | ||||||||||||||
Other | (10.0) | (19.7) | ||||||||||||||
Total | $ | 223.1 | $ | 218.8 | $ | 4.14 | $ | 4.27 | ||||||||
Impairments, pre-tax | (148.6) | — | (2.90) | — | ||||||||||||
Other net economic earnings adjustments, pre-tax | 3.2 | 0.2 | 0.06 | — | ||||||||||||
Income tax effect of pre-tax adjustments | 30.6 | (0.1) | 0.60 | — | ||||||||||||
Net Income | $ | 108.3 | $ | 218.9 | $ | 1.90 | $ | 4.27 | ||||||||
Weighted Average Diluted Shares Outstanding | 51.2 | 50.8 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For the first nine months of fiscal 2020, consolidated net income was $108.3 million ($1.90 per diluted share) compared to $218.9 million ($4.27 per share) in the prior-year period. The decrease reflects the impairment charges recorded in the third quarter.
NEE for the nine months ended June 30, 2020, was $223.1 million ($4.14 per share), compared to $218.8 million ($4.27 per share) a year ago. This increase reflects improved performance at Gas Utility, Spire STL Pipeline and Spire Storage, partially offset by lower Gas Marketing earnings. We estimate that the impact of COVID-19 across our businesses in our current year-to-date pre-tax operating results was approximately $7.6 million, principally in lower demand and fees, and higher costs for bad debts. The lower NEE per share reflects the impact of preferred and common stock issued over the last twelve months.
Gas Utility
For the first nine months of fiscal 2020, the Gas Utility segment reported NEE of $221.8 million, up slightly from $220.7 million a year ago. This increase reflects a higher contribution margin, and slightly lower O&M expenses, after adjusting for the pension transfer reflected in Other Income (Expense), partially offset by higher depreciation and amortization expense.
Year-to-date segment contribution margin increased by $13.1 million, reflecting an increase of $13.0 million in ISRS revenues (net of the true-up of the provisions for ISRS rulings), customer growth, and $4.3 million favorable rate adjustments under the RSE mechanism at Spire Alabama. These positive factors were partially offset by lower volumetric margins across Spire Alabama and Spire Missouri (net of weather mitigation).
O&M expenses decreased by $11.6 million compared to the prior-year period, reflecting the pension adjustment described earlier. Excluding this adjustment, O&M expenses decreased by $2.6 million due to lower operation and employee-related costs. Depreciation and amortization expense rose by $8.0 million due to incremental capital investment across our utilities over the past year.
Gas Marketing
NEE, which excludes mark-to-market and fair value adjustments, was $11.3 million for the nine months ended June 30, 2020, down from $17.8 million in the prior-year period. The benefit of higher volumes from business expansion were more than offset by the costs of incremental storage capacity, transportation fees, and less favorable market conditions.
Other
On a NEE basis, year-to-date results for other operations and corporate costs were $10.0 million, a $9.7 million improvement over the prior-year period. The improvement was driven by an increase in earnings from Spire STL Pipeline and a smaller loss from Spire Storage. On an adjusted EBITDA basis, Spire Storage incurred a loss of $3.7 million in the current period, down from $11.7 million a year ago.
Regulatory Matters
Missouri
In early 2020, legislation was introduced in both the Missouri House and Senate to clarify language in the statute governing the ISRS mechanism. Specifically, the legislation sought to ensure we can continue to upgrade our infrastructure, enhance its safety and reliability, and secure timely recovery of costs incurred. The legislation, which was passed on May 15, 2020, signed by the governor on July 2, and becomes effective on August 28, clarifies infrastructure investments that qualify for ISRS recovery.
As previously reported, the Missouri Western District Court of Appeals issued rulings determining that certain Spire Missouri expenditures for infrastructure upgrades in 2016 through 2018 were not eligible for recovery under ISRS and remanded the cases back to the Missouri Public Service Commission (MoPSC).
In the third quarter of fiscal 2020, Spire Missouri reached a settlement with the MoPSC staff and the Office of Public Counsel resolving these cases that was subsequently approved by the MoPSC. Under the settlement, Spire Missouri will make a one-time bill credit of $15.0 million to Spire Missouri customers in August 2020. This settlement was applied to the $12.2 million provision accrued in fiscal 2019, with the remaining $2.8 million impacting fiscal 2020 results and the true up reflected in this year's third quarter.
ISRS rates going forward remain unchanged as a result of the settlement. Our current approved annual run rate for ISRS revenues is $40.3 million, including the latest approved increase effective May 25, 2020 for $11.1 million annualized.
Guidance and Outlook
We expect NEE per share for fiscal 2020 to be $3.70 - $3.75. This earnings guidance reflects year-to-date results and greater clarity regarding ISRS and the expected impacts of COVID-19. Specifically, we expect coronavirus impacts to be approximately $0.09 per share, driven by lower commercial demand and fees, as well as higher bad debt costs. The impact of the ISRS refund on NEE is $0.04 per share in fiscal 2020.
We affirm our annual long-term NEE per share growth target of 4-7%, based on growth in our utility rate base of 7-8%. We have also updated our fiscal 2020 capital investment forecast to $650 million.
Balance Sheets and Cash Flow
We maintain a balanced capital structure with ample liquidity. At June 30, 2020, our adjusted long-term capitalization was 48.4 percent equity, compared to 51.9 percent equity at September 30, 2019, our last fiscal year-end. The decrease in our equity ratio is due to the completion of $410 million in net debt financings during the first quarter of fiscal 2020 and the impairment charges.
Short-term borrowings outstanding at June 30, 2020, were $477.6 million, down from $743.2 million at September 30, 2019, reflecting stronger cash flow and the use of the long-term debt financing to pay down short-term borrowings. Our working capital needs are seasonal in nature and typically peak during the winter. We retain significant capacity in our revolving credit facility and related commercial paper program to meet our liquidity needs. Spire had nearly $650 million of available liquidity at quarter end.
Net cash provided by operating activities was $453.8 million for the nine months ended June 30, 2020, up from $440.6 million for same period in fiscal 2019. The increase was largely driven by fluctuations in working capital balances.
Capital expenditures for the first nine months of fiscal 2020 were $475.7 million, down from $608.5 million in the prior year, reflecting principally a decrease in investment in Spire STL Pipeline which was placed into service in late 2019.
For additional details on Spire's results for the third quarter and first nine months of fiscal 2020, please see the accompanying unaudited Condensed Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
Dividends
The Spire board of directors has declared a quarterly common stock dividend of $0.6225 per share, payable October 2, 2020, to shareholders of record on September 11, 2020. We have continuously paid a cash common stock dividend since 1946, with 2020 marking the 17th consecutive year of increasing dividends on an annualized basis.
The board also declared the regular quarterly dividend of $0.36875 per depositary share on Spire's 5.90 percent Series A Cumulative Redeemable Preferred Stock payable November 16, 2020, to holders of record on October 26, 2020.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2020 third quarter financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
Date and Time: | Wednesday, August 5 | ||
11 a.m. CT (Noon ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 | ||
The call will also be webcast and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available at 1 p.m. CT (2 p.m. ET) on August 5 until September 5, 2020 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10145812.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.8 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, the COVID-19 health crisis, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's annual (Form 10-K) and quarterly (Form 10-Q) filings with the Securities and Exchange Commission.
This news release also includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," "adjusted long-term capitalization," "contribution margin," and "adjusted EBITDA." Management uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of other non-recurring or unusual items such as impairments and certain regulatory, legislative, or GAAP standard-setting actions. For the fiscal 2020 periods presented, adjustments for Missouri Infrastructure System Replacement Surcharge revenues reflect the regulatory settlement reached in the third quarter of fiscal 2020, such that the related GAAP provisions for customer credit for fiscal 2020 to date is reflected in net economic earnings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin is defined as operating revenues less natural and propane gas costs and gross receipts taxes expense, which are directly passed on to customers and collected through revenues. Adjusted long-term capitalization treats preferred stock as 50% debt and 50% equity, as rating agencies would treat preferred stock. Adjusted EBITDA is earnings before impairments, interest, income taxes, depreciation and amortization. Management believes adjusted EBITDA provides a helpful additional measure of core results of Spire Storage. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Condensed Consolidated Statements of Income – Unaudited
(In Millions, except per share amounts) | Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating Revenues: | ||||||||||||||||
Gas Utility | $ | 305.7 | $ | 301.4 | $ | 1,515.4 | $ | 1,651.9 | ||||||||
Gas Marketing and other | 15.4 | 19.9 | 88.1 | 74.9 | ||||||||||||
Total Operating Revenues | 321.1 | 321.3 | 1,603.5 | 1,726.8 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Gas Utility | ||||||||||||||||
Natural and propane gas | 70.7 | 75.5 | 534.3 | 664.6 | ||||||||||||
Operation and maintenance | 112.5 | 111.2 | 311.6 | 323.2 | ||||||||||||
Depreciation and amortization | 47.8 | 45.1 | 141.2 | 133.2 | ||||||||||||
Taxes, other than income taxes | 31.7 | 29.7 | 121.3 | 126.3 | ||||||||||||
Total Gas Utility Operating Expenses | 262.7 | 261.5 | 1,108.4 | 1,247.3 | ||||||||||||
Impairments | 148.6 | — | 148.6 | — | ||||||||||||
Gas Marketing and other | 16.3 | 46.5 | 140.2 | 151.6 | ||||||||||||
Total Operating Expenses | 427.6 | 308.0 | 1,397.2 | 1,398.9 | ||||||||||||
Operating (Loss) Income | (106.5) | 13.3 | 206.3 | 327.9 | ||||||||||||
Interest Expense, Net | 26.4 | 25.6 | 80.3 | 79.1 | ||||||||||||
Other Income (Expense), Net | 13.0 | 6.4 | (0.8) | 15.3 | ||||||||||||
(Loss) Income Before Income Taxes | (119.9) | (5.9) | 125.2 | 264.1 | ||||||||||||
Income Tax (Benefit) Expense | (27.6) | (2.9) | 16.9 | 45.2 | ||||||||||||
Net (Loss) Income | (92.3) | (3.0) | 108.3 | 218.9 | ||||||||||||
Provision for preferred dividends | 3.7 | 1.6 | 11.1 | 1.6 | ||||||||||||
(Loss) Income allocated to participating securities | (0.1) | — | 0.2 | 0.5 | ||||||||||||
Net (Loss) Income Available to Common Shareholders | $ | (95.9) | $ | (4.6) | $ | 97.0 | $ | 216.8 | ||||||||
Weighted Average Number of Shares Outstanding: | ||||||||||||||||
Basic | 51.2 | 50.7 | 51.1 | 50.6 | ||||||||||||
Diluted | 51.2 | 50.7 | 51.2 | 50.8 | ||||||||||||
Basic (Loss) Earnings Per Common Share | $ | (1.87) | $ | (0.09) | $ | 1.90 | $ | 4.28 | ||||||||
Diluted (Loss) Earnings Per Common Share | $ | (1.87) | $ | (0.09) | $ | 1.90 | $ | 4.27 | ||||||||
Dividends Declared Per Common Share | $ | 0.6225 | $ | 0.5925 | $ | 1.8675 | $ | 1.7775 | ||||||||
Condensed Consolidated Balance Sheets – Unaudited
(In Millions) | June 30, | September 30, | June 30, | |||||||||
2020 | 2019 | 2019 | ||||||||||
ASSETS | ||||||||||||
Utility Plant | $ | 6,472.2 | $ | 6,146.5 | $ | 5,990.6 | ||||||
Less: Accumulated depreciation and amortization | 1,882.1 | 1,794.5 | 1,770.4 | |||||||||
Net Utility Plant | 4,590.1 | 4,352.0 | 4,220.2 | |||||||||
Non-utility Property | 420.1 | 477.8 | 416.6 | |||||||||
Other Investments | 70.6 | 72.3 | 74.8 | |||||||||
Total Other Property and Investments | 490.7 | 550.1 | 491.4 | |||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | 7.4 | 5.8 | 5.8 | |||||||||
Accounts receivable, net | 248.1 | 289.6 | 336.7 | |||||||||
Inventories | 148.6 | 196.6 | 158.2 | |||||||||
Other | 155.2 | 122.5 | 149.1 | |||||||||
Total Current Assets | 559.3 | 614.5 | 649.8 | |||||||||
Deferred Charges and Other Assets | 2,182.5 | 2,102.6 | 1,970.6 | |||||||||
Total Assets | $ | 7,822.6 | $ | 7,619.2 | $ | 7,332.0 | ||||||
CAPITALIZATION AND LIABILITIES | ||||||||||||
Capitalization: | ||||||||||||
Preferred stock | $ | 242.0 | $ | 242.0 | $ | 242.0 | ||||||
Common stock and paid-in capital | 1,591.4 | 1,556.8 | 1,543.5 | |||||||||
Retained earnings | 774.6 | 775.5 | 844.3 | |||||||||
Accumulated other comprehensive loss | (49.6) | (31.3) | (17.2) | |||||||||
Total Shareholders' Equity | 2,558.4 | 2,543.0 | 2,612.6 | |||||||||
Temporary equity | 4.1 | 3.4 | — | |||||||||
Long-term debt (less current portion) | 2,478.3 | 2,082.6 | 2,042.3 | |||||||||
Total Capitalization | 5,040.8 | 4,629.0 | 4,654.9 | |||||||||
Current Liabilities: | ||||||||||||
Current portion of long-term debt | 5.4 | 40.0 | 165.0 | |||||||||
Notes payable | 477.6 | 743.2 | 434.0 | |||||||||
Accounts payable | 200.8 | 301.5 | 297.6 | |||||||||
Accrued liabilities and other | 424.0 | 384.1 | 323.0 | |||||||||
Total Current Liabilities | 1,107.8 | 1,468.8 | 1,219.6 | |||||||||
Deferred Credits and Other Liabilities: | ||||||||||||
Deferred income taxes | 479.7 | 451.4 | 490.4 | |||||||||
Pension and postretirement benefit costs | 271.9 | 264.8 | 172.1 | |||||||||
Asset retirement obligations | 348.2 | 337.6 | 328.9 | |||||||||
Regulatory liabilities | 449.6 | 399.0 | 396.3 | |||||||||
Other | 124.6 | 68.6 | 69.8 | |||||||||
Total Deferred Credits and Other Liabilities | 1,674.0 | 1,521.4 | 1,457.5 | |||||||||
Total Capitalization and Liabilities | $ | 7,822.6 | $ | 7,619.2 | $ | 7,332.0 | ||||||
Condensed Consolidated Statements of Cash Flows – Unaudited
(In Millions) | Nine Months Ended June 30, | |||||||
2020 | 2019 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 108.3 | $ | 218.9 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 146.8 | 134.9 | ||||||
Deferred income taxes and investment tax credits | 17.0 | 42.6 | ||||||
Impairments | 148.6 | — | ||||||
Changes in assets and liabilities | 28.0 | 46.1 | ||||||
Other | 5.1 | (1.9) | ||||||
Net cash provided by operating activities | 453.8 | 440.6 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (475.7) | (608.5) | ||||||
Business acquisitions | — | (7.9) | ||||||
Other | 5.6 | (7.1) | ||||||
Net cash used in investing activities | (470.1) | (623.5) | ||||||
Financing Activities: | ||||||||
Issuance of preferred stock | — | 242.0 | ||||||
Issuance of long-term debt | 510.0 | 190.0 | ||||||
Repayment of long-term debt | (147.0) | (59.1) | ||||||
Repayment of short-term debt, net | (265.6) | (119.6) | ||||||
Issuance of common stock | 33.2 | 5.7 | ||||||
Dividends paid on common stock | (95.7) | (88.9) | ||||||
Dividends paid on preferred stock | (11.1) | — | ||||||
Other | (5.9) | (2.8) | ||||||
Net cash provided by financing activities | 17.9 | 167.3 | ||||||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 1.6 | (15.6) | ||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 5.8 | 21.4 | ||||||
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ | 7.4 | $ | 5.8 | ||||
Net Economic Earnings and Reconciliation to GAAP
(In Millions, except per share amounts) | Gas Utility | Gas Marketing | Other | Total | Per Diluted Common | |||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 12.6 | $ | 13.6 | $ | (118.5) | $ | (92.3) | $ | (1.87) | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Impairments | — | — | 148.6 | 148.6 | 2.89 | |||||||||||||||
Provision for ISRS rulings | (4.8) | — | — | (4.8) | (0.09) | |||||||||||||||
Unrealized gain on energy-related derivatives | (0.6) | (17.9) | — | (18.5) | (0.36) | |||||||||||||||
Income tax effect of adjustments (1) | 1.2 | 4.4 | (31.3) | (25.7) | (0.50) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 8.4 | $ | 0.1 | $ | (1.2) | $ | 7.3 | $ | 0.07 | ||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 7.6 | $ | (4.7) | $ | (5.9) | $ | (3.0) | $ | (0.09) | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized loss on energy-related derivatives | — | 8.0 | — | 8.0 | 0.16 | |||||||||||||||
Lower of cost or market inventory adjustments | — | 2.7 | — | 2.7 | 0.05 | |||||||||||||||
Income tax effect of adjustments (1) | — | (2.7) | — | (2.7) | (0.05) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 7.6 | $ | 3.3 | $ | (5.9) | $ | 5.0 | $ | 0.07 | ||||||||||
Nine Months Ended June 30, 2020 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 222.0 | $ | 13.6 | $ | (127.3) | $ | 108.3 | $ | 1.90 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Impairments | — | — | 148.6 | 148.6 | 2.90 | |||||||||||||||
Unrealized gain on energy-related derivatives | (0.2) | (3.0) | — | (3.2) | (0.06) | |||||||||||||||
Income tax effect of adjustments (1) | — | 0.7 | (31.3) | (30.6) | (0.60) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 221.8 | $ | 11.3 | $ | (10.0) | $ | 223.1 | $ | 4.14 | ||||||||||
Nine Months Ended June 30, 2019 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 220.7 | $ | 18.2 | $ | (20.0) | $ | 218.9 | $ | 4.27 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized gain on energy-related derivatives | — | (3.3) | — | (3.3) | (0.06) | |||||||||||||||
Lower of cost or market inventory adjustments | — | 2.7 | — | 2.7 | 0.05 | |||||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 0.4 | 0.4 | 0.01 | |||||||||||||||
Income tax effect of adjustments (1) | — | 0.2 | (0.1) | 0.1 | — | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 220.7 | $ | 17.8 | $ | (19.7) | $ | 218.8 | $ | 4.27 | ||||||||||
(1) Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the related effective date. |
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation, which includes reductions for cumulative preferred dividends and participating shares. |
Contribution Margin and Reconciliation to GAAP
(In Millions) | Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 20.4 | $ | 18.2 | $ | (145.1) | $ | — | $ | (106.5) | ||||||||||
Operation and maintenance expenses | 115.5 | 2.2 | 10.5 | (3.3) | 124.9 | |||||||||||||||
Depreciation and amortization | 47.8 | 0.2 | 2.1 | — | 50.1 | |||||||||||||||
Taxes, other than income taxes | 31.7 | 0.2 | (0.8) | — | 31.1 | |||||||||||||||
Impairments | — | — | 148.6 | — | 148.6 | |||||||||||||||
Less: Gross receipts tax expense | (17.2) | (0.1) | 0.1 | — | (17.2) | |||||||||||||||
Contribution Margin [Non-GAAP] | 198.2 | 20.7 | 15.4 | (3.3) | 231.0 | |||||||||||||||
Natural and propane gas costs | 90.6 | (9.2) | 0.1 | (8.6) | 72.9 | |||||||||||||||
Gross receipts tax expense | 17.2 | 0.1 | (0.1) | — | 17.2 | |||||||||||||||
Operating Revenues | $ | 306.0 | $ | 11.6 | $ | 15.4 | $ | (11.9) | $ | 321.1 | ||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 25.3 | $ | (7.0) | $ | (5.0) | $ | — | $ | 13.3 | ||||||||||
Operation and maintenance expenses | 113.4 | 3.2 | 8.4 | (2.6) | 122.4 | |||||||||||||||
Depreciation and amortization | 45.1 | — | 0.7 | — | 45.8 | |||||||||||||||
Taxes, other than income taxes | 29.7 | 0.1 | 0.4 | — | 30.2 | |||||||||||||||
Less: Gross receipts tax expense | (18.2) | — | — | — | (18.2) | |||||||||||||||
Contribution Margin [Non-GAAP] | 195.3 | (3.7) | 4.5 | (2.6) | 193.5 | |||||||||||||||
Natural and propane gas costs | 88.1 | 22.0 | 0.1 | (0.6) | 109.6 | |||||||||||||||
Gross receipts tax expense | 18.2 | — | — | — | 18.2 | |||||||||||||||
Operating Revenues | $ | 301.6 | $ | 18.3 | $ | 4.6 | $ | (3.2) | $ | 321.3 | ||||||||||
Nine Months Ended June 30, 2020 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 329.6 | $ | 18.2 | $ | (141.5) | $ | — | $ | 206.3 | ||||||||||
Operation and maintenance expenses | 319.9 | 8.9 | 28.0 | (9.6) | 347.2 | |||||||||||||||
Depreciation and amortization | 141.2 | 0.3 | 5.3 | — | 146.8 | |||||||||||||||
Taxes, other than income taxes | 121.3 | 0.9 | 0.5 | — | 122.7 | |||||||||||||||
Impairments | — | — | 148.6 | — | 148.6 | |||||||||||||||
Less: Gross receipts tax expense | (79.4) | (0.3) | — | — | (79.7) | |||||||||||||||
Contribution Margin [Non-GAAP] | 832.6 | 28.0 | 40.9 | (9.6) | 891.9 | |||||||||||||||
Natural and propane gas costs | 603.7 | 48.9 | 0.3 | (21.0) | 631.9 | |||||||||||||||
Gross receipts tax expense | 79.4 | 0.3 | — | — | 79.7 | |||||||||||||||
Operating Revenues | $ | 1,515.7 | $ | 77.2 | $ | 41.2 | $ | (30.6) | $ | 1,603.5 | ||||||||||
Nine Months Ended June 30, 2019 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 317.2 | $ | 22.3 | $ | (11.6) | $ | — | $ | 327.9 | ||||||||||
Operation and maintenance expenses | 330.3 | 8.5 | 22.3 | (8.2) | 352.9 | |||||||||||||||
Depreciation and amortization | 133.2 | — | 1.7 | — | 134.9 | |||||||||||||||
Taxes, other than income taxes | 126.3 | 0.6 | 1.2 | — | 128.1 | |||||||||||||||
Less: Gross receipts tax expense | (87.5) | (0.1) | — | — | (87.6) | |||||||||||||||
Contribution Margin [Non-GAAP] | 819.5 | 31.3 | 13.6 | (8.2) | 856.2 | |||||||||||||||
Natural and propane gas costs | 746.6 | 38.2 | 0.7 | (2.5) | 783.0 | |||||||||||||||
Gross receipts tax expense | 87.5 | 0.1 | — | — | 87.6 | |||||||||||||||
Operating Revenues | $ | 1,653.6 | $ | 69.6 | $ | 14.3 | $ | (10.7) | $ | 1,726.8 | ||||||||||
Spire Storage Adjusted EBITDA1 Reconciliation to GAAP
(In Millions) | Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net Loss [GAAP] | $ | (113.0) | $ | (5.1) | $ | (118.2) | $ | (12.9) | |||||||
Add back: | |||||||||||||||
Impairments | 140.8 | — | 140.8 | — | |||||||||||
Interest charges | 0.7 | 1.5 | 3.4 | 3.4 | |||||||||||
Income tax benefit | (30.0) | (1.3) | (31.4) | (3.4) | |||||||||||
Depreciation and amortization | 0.6 | 0.5 | 1.7 | 1.2 | |||||||||||
Adjusted EBITDA [Non-GAAP] | $ | (0.9) | $ | (4.4) | $ | (3.7) | $ | (11.7) | |||||||
1 Adjusted EBITDA is earnings before impairments, interest, income taxes, depreciation and amortization. | |||||||||||||||
Adjusted Long-Term Capitalization Reconciliation to GAAP
(In Millions) | June 30, 2020 | September 30, 2019 | |||||||||||||||||||||
Equity2 | Debt | Total | Equity2 | Debt | Total | ||||||||||||||||||
Capitalization | $ | 2,562.5 | $ | 2,478.3 | $ | 5,040.8 | $ | 2,546.4 | $ | 2,082.6 | $ | 4,629.0 | |||||||||||
Current portion of long-term debt | — | 5.4 | 5.4 | — | 40.0 | 40.0 | |||||||||||||||||
Long-term Capitalization [GAAP] | 2,562.5 | 2,483.7 | 5,046.2 | 2,546.4 | 2,122.6 | 4,669.0 | |||||||||||||||||
Reclassify 50% of preferred stock | (121.0) | 121.0 | — | (121.0) | 121.0 | — | |||||||||||||||||
Adjusted Long-term Capitalization [Non-GAAP] | $ | 2,441.5 | $ | 2,604.7 | $ | 5,046.2 | $ | 2,425.4 | $ | 2,243.6 | $ | 4,669.0 | |||||||||||
% of adjusted long-term capitalization | 48.4% | 51.6% | 100.0% | 51.9% | 48.1% | 100.0% | |||||||||||||||||
2 Temporary equity of $4.1 million and $3.4 million is included in equity as of June 30, 2020 and September 30, 2019, respectively. | |||||||||||||||||||||||
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-reports-third-quarter-results-301106208.html
SOURCE Spire Inc.
Article Date
8/5/2020Spire is one of the first natural gas companies in U.S. committed to carbon neutrality
Source: PR Newswire
ST. LOUIS, July 15, 2020 /PRNewswire/ -- As part of Spire's commitment to the environment and the communities it serves, the company announced it is one of the first natural gas companies in the United States to commit to being carbon neutral by midcentury, while also reducing methane emissions with a 53% reduction by 2025.
Spire's focus on environmental responsibility is featured in its second annual Corporate Social Responsibility report, which highlights performance data the company tracks through the independent Global Reporting Initiative (GRI) index, the American Gas Association voluntary reporting tool, and information provided to the Pipeline and Hazardous Materials Safety Administration. Other focus areas in the report include community, people and leadership.
"We know natural gas plays an important part in a sustainable energy future," said Steve Lindsey, executive vice president and chief operating officer at Spire. "That's why we're committed to moving our business forward in a way that protects the planet and supports communities for generations to come."
Spire is committed to:
Substantial reductions in methane emissions
By 2025, Spire's goal is a 53% reduction in gas utility methane emissions from 2005 levels, putting the company well ahead of international standards, which call for a commitment of a 26 to 28% reduction in greenhouse gas emissions nationwide.
Spire has already seen success in reductions:
Being a carbon neutral company by midcentury
In addition to its infrastructure upgrades and methane reduction goals, Spire's natural gas utilities are committed to being carbon neutral by midcentury.
"Our environmental efforts are important to our customers, and they are important to us, too," Lindsey said. "As a natural gas utility, we will continue to find innovative ways to supply the energy people depend on while striving to become carbon neutral by midcentury."
Working responsibly
Spire is also creating sustainable workplaces, eliminating water waste, recycling across all facilities and efficiently fueling its fleet.
Access more information about Spire's environmental commitment and the complete CSR report here.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.8 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Raegan Johnson
314-342-3300
Raegan.Johnson@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-is-one-of-the-first-natural-gas-companies-in-us-committed-to-carbon-neutrality-301094035.html
SOURCE Spire Inc.
Article Date
7/15/2020Spire to Host Earnings Conference Call on Aug. 5
Source: PR Newswire
ST. LOUIS, July 9, 2020 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, August 5 to discuss our fiscal 2020 third quarter financial results. We will issue our earnings news release before the market opens that day, and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Wednesday, August 5 | |
11:00 a.m. CT (Noon ET) | ||
Phone Numbers: | U.S. and Canada: | 844-824-3832 |
International: | 412-317-5142 |
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 12 p.m. CT (1 p.m. ET) on August 5 until September 4, 2020, by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10145812. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.8 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-aug-5-301091160.html
SOURCE Spire Inc.
Article Date
7/9/2020Spire Missouri Inc. Announces Final Tender Results of Offers for Any and All of Its First Mortgage Bonds, 7% Series Due 2029, 7.90% Series Due 2030, 6% Series Due 2034, 6.15% Series Due 2036 and 4.625% Series Due 2043
Source: PR Newswire
ST. LOUIS, June 15, 2020 /PRNewswire/ -- Spire Missouri Inc. ("Spire Missouri" or the "Company"), a wholly-owned subsidiary of Spire Inc. (NYSE: SR), today announced the final tender results of the previously announced offers (the "Offers") to purchase any and all of the Company's First Mortgage Bonds, 7% Series due 2029 (the "2029 Bonds"), First Mortgage Bonds, 7.90% Series due 2030 (the "2030 Bonds"), First Mortgage Bonds, 6% Series due 2034 (the "2034 Bonds"), First Mortgage Bonds, 6.15% Series due 2036 (the "2036 Bonds") and First Mortgage Bonds, 4.625% Series due 2043 (the "2043 Bonds" and, together with the 2029 Bonds, the 2030 Bonds, the 2034 Bonds and the 2036 Bonds, the "Bonds"). The terms and conditions of the Offers are described in an offer to purchase dated June 8, 2020 (the "Offer to Purchase"). Terms not defined in this announcement have the meanings given to them in the Offer to Purchase.
The Offers expired at 5:00 p.m., New York City time, on June 12, 2020 (the "Expiration Time").
The aggregate principal amount of 2029 Bonds validly tendered and not withdrawn by the Expiration Time is $5,715,000, as reported by the information and tender agent, Global Bondholder Services Corporation ("GBSC"). No 2030 Bonds were validly tendered by the Expiration Time, as reported by GBSC. The aggregate principal amount of 2034 Bonds validly tendered and not withdrawn by the Expiration Time is $755,000, as reported by GBSC. The aggregate principal amount of 2036 Bonds validly tendered and not withdrawn by the Expiration Time is $500,000, as reported by GBSC. The aggregate principal amount of 2043 Bonds validly tendered and not withdrawn by the Expiration Time is $55,000, as reported by GBSC. All Bonds validly tendered and not withdrawn will be purchased as described in the Offer to Purchase and will be cancelled. The Company expects to pay the Tender Consideration, together with any Accrued Interest, on June 16, 2020.
About Spire Missouri Inc.
The Company is a public utility engaged in the purchase, retail distribution and sale of natural gas, with primary offices located in St. Louis, Missouri. The Company is the largest natural gas distribution utility system in Missouri, serving approximately 1.2 million residential, commercial and industrial customers. The Company has two regions, one serving St. Louis and eastern Missouri and the other serving Kansas City and western Missouri.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-missouri-inc-announces-final-tender-results-of-offers-for-any-and-all-of-its-first-mortgage-bonds-7-series-due-2029--7-90-series-due-2030--6-series-due-2034--6-15-series-due-2036-and-4-625-series-due-2043--301076708.html
SOURCE Spire Inc.
Article Date
6/15/2020Spire Missouri Inc. Announces Pricing of Tender Offers for Any and All of Its First Mortgage Bonds, 7% Series Due 2029, 7.90% Series Due 2030, 6% Series Due 2034, 6.15% Series Due 2036 and 4.625% Series Due 2043
Source: PR Newswire
ST. LOUIS, June 12, 2020 /PRNewswire/ -- Spire Missouri Inc. ("Spire Missouri" or the "Company"), a wholly-owned subsidiary of Spire Inc. (NYSE: SR), today announced the pricing of the previously announced offers (the "Offers") to purchase any and all of the Company's First Mortgage Bonds, 7% Series due 2029 (the "2029 Bonds"), First Mortgage Bonds, 7.90% Series due 2030 (the "2030 Bonds"), First Mortgage Bonds, 6% Series due 2034 (the "2034 Bonds"), First Mortgage Bonds, 6.15% Series due 2036 (the "2036 Bonds") and First Mortgage Bonds, 4.625% Series due 2043 (the "2043 Bonds" and, together with the 2029 Bonds, the 2030 Bonds, the 2034 Bonds and the 2036 Bonds, the "Bonds"). The terms and conditions of the Offers are described in an offer to purchase dated June 8, 2020 (the "Offer to Purchase") and a notice of guaranteed delivery. The Offers will expire today at 5:00 p.m., New York City time, unless extended or earlier terminated as described in the Offer to Purchase (such time and date, as they may be extended, the "Expiration Time").
Holders of the Bonds who validly tender (and do not validly withdraw) their Bonds prior to the Expiration Time, or who deliver to the information and tender agent a properly completed and duly executed notice of guaranteed delivery in accordance with the instructions described in the Offer to Purchase, will be eligible to receive the tender consideration as set forth in the table below:
Title of Security | CUSIP | Outstanding | Reference | Bloomberg | Fixed | Tender |
First Mortgage Bonds, 7% Series due June 1, 2029
| 505588AY9 | $25,000,000 | 0.625% due May | FIT1 | 115 bps | $1,424.87 |
First Mortgage Bonds, 7.90% Series due September 15, 2030
| 505588BA0 | $30,000,000 | 0.625% due May | FIT1 | 120 bps | $1,558.07 |
First Mortgage Bonds, 6% Series due May 1, 2034
| 505588BE2 | $100,000,000 | 0.625% due May | FIT1 | 140 bps | $1,469.56 |
First Mortgage Bonds, 6.15% Series due June 1, 2036
| 505588BF9 | $55,000,000 | 2.000 % due | FIT1 | 135 bps | $1,434.69 |
First Mortgage Bonds, 4.625% Series due August 15, 2043(2) | 505588BK8 | $100,000,000 | 2.000 % due | FIT1 | 135 bps | $1,312.04 |
(1) | Per $1,000 principal amount of Bonds validly tendered and accepted for purchase. The Reference Yield and the Tender Consideration for each series of Bonds were determined at 2:00 p.m., New York City time, on June 12, 2020, as described in the Offer to Purchase. |
(2) | The Tender Consideration was determined taking into account the par call date for such series of Bonds, as described in the Offer to Purchase. |
In addition, holders who tender Bonds that are accepted for purchase by the Company pursuant to the Offers will receive a cash payment representing the accrued and unpaid interest on the relevant Bonds from, and including, the immediately preceding interest payment date applicable to such Bonds to, but excluding, the Settlement Date ("Accrued Interest"). The Company expects to pay the Tender Consideration, together with any Accrued Interest, to the holders of Bonds validly tendered at or prior to the Expiration Time and not validly withdrawn on June 16, 2020 (such date the "Settlement Date") and to the holders of Bonds tendered through guaranteed delivery procedures on June 18, 2020 (such date the "Guaranteed Delivery Settlement Date"). No tenders submitted after the Expiration Time will be valid, unless made by guaranteed delivery in accordance with the instructions described in the Offer to Purchase. Bonds purchased pursuant to the Offers are expected to be cancelled.
Tendered Bonds may be withdrawn at any time at or prior to the Expiration Time. The Company reserves the right to terminate, withdraw or amend the Offers at any time, subject to applicable law. The Offers are not conditioned on any minimum amount of Bonds being tendered.
The Offers are being made pursuant to the terms and conditions contained in the Offer to Purchase and notice of guaranteed delivery, copies of which may be obtained from Global Bondholder Services Corporation, the information and tender agent for the Offers, by telephone at +1 (866) 470-3900 or for banks and brokers, +1 (212) 430-3774 (Banks and Brokers only), or at the following web address: https://www.gbsc-usa.com/spire/.
Persons with questions regarding the Offers should contact the dealer manager: RBC Capital Markets, LLC, Collect: (212) 618-7843, Toll-Free by telephone at (877) 381-2099, E-mail: liability.management@rbccm.com.
None of Spire Missouri, the dealer manager, the information and tender agent or the trustee for the Bonds, or any of their respective affiliates, is making any recommendation as to whether holders should tender any Bonds in response to the Offers. Holders must make their own decision as to whether to tender any of their Bonds and, if so, the principal amount of Bonds to tender.
This announcement is not an offer to purchase or a solicitation of an offer to sell any securities. The Offers are being made solely by means of the offer to purchase.
About Spire Missouri Inc.
The Company is a public utility engaged in the purchase, retail distribution and sale of natural gas, with primary offices located in St. Louis, Missouri. The Company is the largest natural gas distribution utility system in Missouri, serving approximately 1.2 million residential, commercial and industrial customers. The Company has two regions, one serving St. Louis and eastern Missouri and the other serving Kansas City and western Missouri.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, that address activities that Spire Missouri assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events, particularly the consummation of the Offers. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management. Specifically, Spire Missouri cannot assure you that the Offers will be consummated on the terms currently contemplated, if at all. Information concerning these risks and other factors can be found in Spire Missouri's filings with the Securities and Exchange Commission ("SEC"), including its reports on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC's web site at http://www.sec.gov. Spire Missouri does not undertake any obligation to update or revise any forward-looking statement.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica. Willingham@SpireEnergy.com
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SOURCE Spire Inc.
Article Date
6/12/2020Spire Missouri Inc. Announces Commencement of Tender Offers for Any and All of Its First Mortgage Bonds, 7% Series Due 2029, 7.90% Series Due 2030, 6% Series Due 2034, 6.15% Series Due 2036 and 4.625% Series Due 2043
Source: PR Newswire
ST. LOUIS, June 8, 2020 /PRNewswire/ -- Spire Missouri Inc. ("Spire Missouri" or the "Company"), a wholly-owned subsidiary of Spire Inc. (NYSE: SR), today announced that it has commenced cash tender offers (the "Offers") to purchase any and all of its First Mortgage Bonds, 7% Series due 2029 (the "2029 Bonds"), First Mortgage Bonds, 7.90% Series due 2030 (the "2030 Bonds"), First Mortgage Bonds, 6% Series due 2034 (the "2034 Bonds"), First Mortgage Bonds, 6.15% Series due 2036 (the "2036 Bonds") and First Mortgage Bonds, 4.625% Series due 2043 (the "2043 Bonds" and, together with the 2029 Bonds, the 2030 Bonds, the 2034 Bonds and the 2036 Bonds, the "Bonds"). As of June 5, 2020, the Company had $310 million aggregate principal amount of the Bonds outstanding. The Offers are being made pursuant to an offer to purchase, dated as of June 8, 2020, and a notice of guaranteed delivery. The Offers will expire at 5:00 p.m., New York City time, on June 12, 2020, unless extended or earlier terminated as described in the offer to purchase (such time and date, as they may be extended, the "Expiration Time").
The Offers | |||||
Title of Security | CUSIP | Outstanding Principal Amount | Reference Treasury Security | Bloomberg | Fixed Spread |
First Mortgage Bonds, 7% Series due June 1, 2029
| 505588AY9 | $25,000,000 | 0.625% due May 15, 2030 | FIT1 | 115 bps |
First Mortgage Bonds, 7.90% Series due September 15, 2030
| 505588BA0 | $30,000,000 | 0.625% due May 15, 2030 | FIT1 | 120 bps |
First Mortgage Bonds, 6% Series due May 1, 2034
| 505588BE2 | $100,000,000 | 0.625% due May 15, 2030 | FIT1 | 140 bps |
First Mortgage Bonds, 6.15% Series due June 1, 2036
| 505588BF9 | $55,000,000 | 2.000 % due February 15, 2050 | FIT1 | 135 bps |
First Mortgage Bonds, 4.625% Series due August 15, 2043(1) | 505588BK8 | $100,000,000 | 2.000 % due February 15, 2050 | FIT1 | 135 bps |
(1) The Tender Consideration will be determined taking into account the par call date for such Series of Bonds, as described herein. | |||||
Holders of the Bonds who validly tender (and do not validly withdraw) their Bonds prior to the Expiration Time, or who deliver to the tender agent and information agent a properly completed and duly executed notice of guaranteed delivery in accordance with the instructions described in the offer to purchase, will be eligible to receive tender consideration for each $1,000 principal amount of Bonds that would reflect a yield to the applicable par call or maturity date of the relevant Bonds equal to the sum of (i) the Reference Yield (as defined below) for such Bonds, determined at 2:00 p.m. (New York City time) on June 12, 2020, plus (ii) the fixed spread applicable to such Bonds, as set forth in the table above (the "Fixed Spread"), minus accrued and unpaid interest on such Bonds from, and including, the most recent interest payment date up to, but excluding, the Settlement Date (as defined below) (the "Tender Consideration"). The "Reference Yield" means the bid-side yield to maturity of the applicable reference security listed in the table above (the "Reference Security") for such Bonds as calculated by the Dealer Manager.
In addition, holders who tender Bonds that are accepted for purchase by the Company pursuant to the Offers will receive a cash payment representing the accrued and unpaid interest on the relevant Bonds from, and including, the immediately preceding interest payment date applicable to such Bonds to, but excluding, the Settlement Date ("Accrued Interest"). The Company expects to pay the Tender Consideration, together with any Accrued Interest, to the holders of Bonds validly tendered at or prior to the Expiration Time and not validly withdrawn on June 16, 2020 (such date the "Settlement Date") and to the holders of Bonds tendered through guaranteed delivery procedures on June 18, 2020 (such date the "Guaranteed Delivery Settlement Date"). No tenders submitted after the Expiration Time will be valid, unless made by guaranteed delivery in accordance with the instructions described in the offer to purchase. Bonds purchased pursuant to the Offers are expected to be cancelled.
Tendered Bonds may be withdrawn at any time at or prior to the Expiration Time. The Company reserves the right to terminate, withdraw or amend the Offers at any time, subject to applicable law. The Offers are not conditioned on any minimum amount of Bonds being tendered.
The Offers are being made pursuant to the terms and conditions contained in the offer to purchase and notice of guaranteed delivery, copies of which may be obtained from Global Bondholder Services Corporation, the information and tender agent for the Offers, by telephone at +1 (866) 470-3900 or for banks and brokers, +1 (212) 430-3774 (Banks and Brokers only), or at the following web address: https://www.gbsc-usa.com/spire/.
Persons with questions regarding the Offers should contact the dealer manager: RBC Capital Markets, LLC, Brookfield Place, 200 Vesey Street, New York, NY 10281, Attn: Capital Markets Group, Collect: (212) 618-7843, Toll-Free by telephone at (877) 381-2099, E-mail: liability.management@rbccm.com.
None of Spire Missouri, the dealer manager, the information and tender agent or the trustee for the Bonds, or any of their respective affiliates, is making any recommendation as to whether holders should tender any Bonds in response to the Offers. Holders must make their own decision as to whether to tender any of their Bonds and, if so, the principal amount of Bonds to tender.
This announcement is not an offer to purchase or a solicitation of an offer to sell any securities. The Offers are being made solely by means of the offer to purchase.
About Spire Missouri Inc.
The Company is a public utility engaged in the purchase, retail distribution and sale of natural gas, with primary offices located in St. Louis, Missouri. The Company is the largest natural gas distribution utility system in Missouri, serving approximately 1.2 million residential, commercial and industrial customers. The Company has two regions, one serving St. Louis and eastern Missouri and the other serving Kansas City and western Missouri.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, that address activities that Spire Missouri assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events, particularly the consummation of the Offers. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management. Specifically, Spire Missouri cannot assure you that the Offers will be consummated on the terms currently contemplated, if at all. Information concerning these risks and other factors can be found in Spire Missouri's filings with the Securities and Exchange Commission ("SEC"), including its reports on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC's web site at http://www.sec.gov. Spire Missouri does not undertake any obligation to update or revise any forward-looking statement.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
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SOURCE Spire Inc.
Article Date
6/8/20205/14/2020 - Spire releases new corporate social responsibility report, confirms commitments as trusted energy provider
Spire releases new corporate social responsibility report, confirms commitments as trusted energy provider
Source: PR Newswire
ST. LOUIS, May 14, 2020 /PRNewswire/ -- Utilizing fiscal 2019 data, Spire just released its second annual Corporate Social Responsibility report which tracks social responsibility metrics based on the Global Reporting Initiative (GRI) index. In one year, Spire increased overall performance by 9 percent on 107 economic, environmental and social indicators while adding commitments for the future.
"There's a saying that what you measure matters. And last year, as part of our commitment to holding ourselves accountable for being a responsible corporate citizen, we released our first-ever CSR report," said Spire President and CEO Suzanne Sitherwood. "This year's report provides a deeper look into what we believe, how we're committing to those beliefs, and how we're measuring and delivering results on those commitments. It shares where we're headed as a trusted energy provider. We're so excited to share not only what we've done, but how our beliefs influence every decision we make."
The inaugural report, which detailed Spire's fiscal 2018 GRI-informed index and its impact in four key areas —the environment, community, people and leadership, garnered Spire's inclusion on Newsweek's The Good List which recognizes the top responsible companies in the U.S. Other honors included recognition from the Women's Forum of New York for diversity in Spire's board membership, and placement as a finalist for the St. Louis Business Journal's Corporate Philanthropy Awards.
Key achievements for Spire's fiscal 2019 report include:
Highlights of the CSR report include the following commitments:
Spire's complete CSR report can be accessed here.
About Spire
At Spire Inc. (NYSE: SR), we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Media Contact:
Raegan Johnson
314-342-3300
Raegan.Johnson@SpireEnergy.com
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SOURCE Spire Inc.
Article Date
5/14/20205/8/2020 - Spire Reports Second Quarter Results
Spire Reports Second Quarter Results
Source: PR Newswire
ST. LOUIS, May 8, 2020 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported results for its fiscal second quarter ended March 31, 2020. Highlights include:
"Our second quarter results were below our plans, largely driven by lower margins from warmer weather across our footprint. Heading into the second half of our fiscal year, we're focused on continuing to safely and reliably serve our customers and support our communities, while upgrading our infrastructure and operating efficiently," said Suzanne Sitherwood, president and chief executive officer of Spire. "Beginning in March, we set in motion a broad range of proactive steps to address the coronavirus health crisis and its economic impact on our customers, while passionately protecting the health and safety of our employees and communities. We've worked with our regulators to find supportive solutions for customers whose income has been interrupted, including suspending service disconnections and late payment fees. I'm especially proud of our DollarHelp program and how our employees and customers are rallying to support one another. It's truly about people helping people."
Second Quarter Results | Three Months Ended March 31, | |||||||||||||||
(Millions) | (Per Diluted Common Share) | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Economic Earnings (Loss)* by Segment | ||||||||||||||||
Gas Utility | $ | 144.3 | $ | 146.7 | ||||||||||||
Gas Marketing | 5.1 | 6.2 | ||||||||||||||
Other | (5.4) | (5.0) | ||||||||||||||
Total | $ | 144.0 | $ | 147.9 | $ | 2.75 | $ | 2.90 | ||||||||
Net economic earnings adjustments, pre-tax | (13.8) | 9.1 | (0.27) | 0.18 | ||||||||||||
Income tax effect of pre-tax adjustments | 3.4 | (2.4) | 0.06 | (0.04) | ||||||||||||
Net Income | $ | 133.6 | $ | 154.6 | $ | 2.54 | $ | 3.04 | ||||||||
Weighted Average Diluted Shares Outstanding | 51.1 | 50.8 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
Consolidated net income for the three months ended March 31, 2020, the second quarter of our fiscal year, was $133.6 million ($2.54 per diluted share), down from $154.6 million ($3.04 per share) a year ago.
Net economic earnings (NEE) for the second quarter of fiscal 2020 was $144.0 million ($2.75 per share) down from $147.9 million ($2.90 per share) last year. The earnings decrease reflects lower Gas Utility earnings primarily due to the impact of warmer weather, a decrease in the value of investments in certain benefit plans, slightly higher operating and maintenance expenses, combined with lower results from Gas Marketing. The lower net economic earnings per share reflects lower earnings as well as the impact of preferred and common stock issued over the last twelve months of $0.08 per share.
NEE excludes from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. Beginning with the fourth quarter of fiscal 2019, NEE excludes the provisions established for the appeals court rulings regarding Missouri Infrastructure System Replacement Surcharge (ISRS) revenues.
Gas Utility
The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. Second quarter NEE was $144.3 million, down from $146.7 million in the prior year, primarily due to the impact of warmer weather on margins in Missouri that was not fully mitigated and a decrease in the value of investments associated with non-qualified employee benefit plans.
Contribution margin increased $3.1 million, reflecting higher ISRS revenues of $3.7 million, net of provisions for ISRS rulings, and a $2.7 million increase due to the annual rate renewal under the Rate Stabilization and Equalization (RSE) mechanism at Spire Alabama. These positive impacts were primarily offset by lower volumetric margins at Spire Missouri of $5.9 million, as degree days were 19 percent warmer than last year and 11 percent warmer than normal. Residential volumetric contribution margins were approximately $5.0 million below what was anticipated under normal weather conditions at our Missouri utilities as a result of the ineffectiveness of the Weather Normalization Adjustment Rider (WNAR), a weather mitigation tool that was established in our last rate proceeding. In addition, commercial and industrial margins, which are not weather mitigated, were lower by approximately $2.0 million.
Operation and maintenance (O&M) expenses of $93.1 million for the quarter were down $16.4 million from last year, including a $19.1 million year-over-year net decrease in benefit costs recorded in O&M primarily due to a pension settlement charge at Spire Missouri recorded in Other Expense (Income). Excluding this adjustment, which had no bottom-line impact, O&M expenses were up $2.7 million driven by higher operations and employee-related costs. Depreciation and amortization expenses increased $2.6 million from last year, reflecting higher capital investment. Taxes other than income taxes decreased $5.7 million mainly due to lower volume-driven gross receipts taxes. Other expense, net of the pension adjustment noted above, had an unfavorable variance of $3.6 million due to a decrease in the value of investments for non-qualified benefit plans.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing services across the central and southern United States. Second quarter NEE was $5.1 million, down from $6.2 million in the prior year, reflecting higher volumes that were more than offset by less favorable market conditions and higher costs.
Other
Other operations and corporate costs on a NEE basis were $5.4 million in fiscal 2020, up marginally from the prior year, as higher earnings from Spire STL Pipeline, a smaller loss from Spire Storage, and lower interest expense were more than offset by higher corporate costs. On an EBITDA basis, Spire Storage incurred a loss of $2.3 million in the current quarter compared to a loss of $4.5 million in the prior year.
Year-to-Date Results | Six Months Ended March 31, | |||||||||||||||
(Millions) | (Per Diluted Common Share) | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net Economic Earnings (Loss)* by Segment | ||||||||||||||||
Gas Utility | $ | 213.4 | $ | 213.1 | ||||||||||||
Gas Marketing | 11.2 | 14.5 | ||||||||||||||
Other | (8.8) | (13.8) | ||||||||||||||
Total | $ | 215.8 | $ | 213.8 | $ | 4.06 | $ | 4.20 | ||||||||
Net economic earnings adjustments, pre-tax | (20.1) | 10.9 | (0.39) | 0.21 | ||||||||||||
Income tax effect of pre-tax adjustments | 4.9 | (2.8) | 0.10 | (0.05) | ||||||||||||
Net Income | $ | 200.6 | $ | 221.9 | $ | 3.77 | $ | 4.36 | ||||||||
Weighted Average Diluted Shares Outstanding | 51.1 | 50.8 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For the first six months of fiscal 2020, we reported consolidated net income of $200.6 million ($3.77 per diluted share) compared to $221.9 million ($4.36 per share) for the prior year.
NEE for the six months ended March 31, 2020 was $215.8 million ($4.06 per share), compared to $213.8 million ($4.20 per share) a year ago. The increase in NEE reflects comparable Gas Utility earnings and improved performance at Spire Storage and higher earnings from Spire STL Pipeline, partially offset by lower Gas Marketing earnings. The lower net economic earnings per share reflects the impact of preferred and common stock issued over the last twelve months of $0.17 per share.
Gas Utility
For the first six months of fiscal 2020, the Gas Utility segment reported NEE of $213.4 million, up slightly from $213.1 million a year ago. This increase reflects a higher contribution margin, including the weather impacts in the second quarter. After adjusting for the pension settlement charge, higher operating and maintenance expenses and the decrease in the value of investments mentioned above also contributed to the variance.
Year-to-date segment contribution margin increased by $10.2 million reflecting an increase of $11.8 million at Spire Alabama primarily due to the annual rate renewal and change in net RSE giveback, and a $5.9 million increase in ISRS revenues (net of the ISRS ruling provision) for our Missouri utilities. These positive factors were partially offset by lower volumetric margins at Spire Missouri of $8.6 million as degree days were 13 percent warmer than last year and 5 percent warmer than normal. Spire Missouri volumetric margins on a year-to-date basis were approximately $7.0 million below what was anticipated under normal weather conditions due to the impacts discussed above for the second quarter.
O&M expenses decreased by $12.9 million compared to the prior-year period, reflecting the pension adjustment described earlier. Excluding this adjustment, O&M expenses were higher by $5.6 million largely due to higher operations and employee-related costs. Depreciation and amortization rose by $5.3 million reflecting increased capital investment across our utilities.
Gas Marketing
NEE, which excludes mark-to-market and fair value adjustments, was $11.2 million in the first half of fiscal 2020, down from $14.5 million in the prior-year period. The benefit of higher volumes was more than offset by less favorable market conditions and higher operating expenses including transportation costs.
Other
On a NEE basis, year-to-date other operations and corporate costs were $8.8 million, down from $13.8 million in the prior-year period. The improvement was driven by a $3.1 million increase in earnings from Spire STL Pipeline and a smaller loss from Spire Storage. On an EBITDA basis, Spire Storage incurred a loss of $2.9 million in the current period, down from $7.2 million a year ago.
Regulatory Matters
Missouri
In January 2020, legislation was introduced in both the Missouri House and Senate to clarify language in the statute governing the ISRS mechanism. Specifically, the bills seek to ensure we can continue to upgrade our infrastructure, enhance its safety and reliability, and secure timely recovery of costs incurred. Senate Bill 618 was passed by the Missouri Senate in early March. On May 6, 2020, the House passed a substitution of Senate Bill 618. Given that different versions passed each chamber, the matter will now go to conference to reconcile the differences between the House and Senate versions.
On February 3, 2020, Spire Missouri filed a request with the MoPSC for additional ISRS revenues to recover new investments, plus revenues for previously disallowed investments. Spire, the staff of the MoPSC and the OPC recently entered into a Unanimous Stipulation and Agreement, which would result in an annualized ISRS revenue increase of $11.1 million, subject to MoPSC approval.
As previously reported, the Missouri Western District Court of Appeals issued rulings determining that certain Spire Missouri expenditures for infrastructure upgrades approved by the Missouri Public Service Commission (MoPSC) were not eligible for recovery under ISRS. The rulings upheld several prior-year appeals by the Missouri Office of Public Counsel (OPC) and ordered refunds for:
Based on the rulings, we have accrued a total provision (regulatory liability) of $16.9 million through our second quarter of fiscal 2020 ended March 31, for the above amounts subject to the Appeals Court ruling. The provision consists of 2018 case amounts of $8.0 million in fiscal 2019 and $4.2 million year-to-date in fiscal 2020, plus $0.3 million in interest. The provision for the plastics (2016 and 2017 cases) consists of $4.2 million in fiscal 2019 plus $0.3 million in cumulative interest. These provisions, net of tax, are included in net income and earnings per share but are excluded from net economic earnings measures.
Spire Missouri applied for transfer of these cases to the Missouri Supreme Court, which was denied on March 17, 2020. The cases have been remanded to the MoPSC, which must render a decision by July 16, 2020.
Our current approved annual run rate for ISRS revenues is $29.2 million, including the latest approved increase effective November 16, 2019 for $8.8 million annualized. Spire Missouri will continue to collect and record these authorized revenues.
Alabama
During the second quarter of fiscal 2020, Spire Alabama continued to implement an off-system sales and capacity release program, which went into effect on December 1, 2019. The program is designed to create value from the sale of excess natural gas supply and pipeline capacity not needed to serve customers. Under the program, 75 percent of any value created is used to lower Alabama customer rates.
Under the Accelerated Infrastructure Modernization (AIM) program, Spire Alabama completed the replacement of the requisite number of pipeline miles in 2019 in order to qualify for a 10 basis-point increase in its allowed return on equity to 10.5 percent in 2020. Spire Alabama is on track to earn the AIM incentive again next year, based on pipeline miles being replaced this year.
Balance Sheets and Cash Flow
We maintain a balanced capital structure with ample liquidity. At March 31, 2020, our adjusted long-term capitalization was 49.4 percent equity, compared to 51.9 percent equity at September 30, 2019, our fiscal year-end. The slight decrease in our equity ratio is due to the completion of $410 million in net debt financings during the first quarter of fiscal 2020.
Short-term borrowings outstanding at March 31, 2020, were $560.6 million, down from $743.2 million at September 30, 2019, reflecting stronger cash flow and the use of the long-term debt financing noted above to pay down short-term borrowings. Our working capital needs are seasonal in nature and typically peak during the winter. We retain significant capacity in our $975 million revolving credit facility and related commercial paper program to meet our liquidity needs. We further enhanced our liquidity with the funding of a 364-day, $150 million term loan on March 26, 2020. Spire had $661 million of available liquidity at quarter end.
Net cash provided by operating activities was $321.7 million for the six months ended March 31, 2020, compared to $297.5 million for the first half of fiscal 2019. The increase was largely driven by fluctuations in working capital balances.
Capital expenditures for the first half of fiscal 2020 were $346.1 million, down from $376.8 million in the prior year. Investment in our gas utilities was $279 million, up $24 million over last year, reflecting increased spend focused on infrastructure upgrades and new business development.
For additional details on Spire's results for the second quarter and first six months of fiscal 2020, please see the accompanying unaudited Condensed Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
Dividends
The Spire board of directors has declared a quarterly common stock dividend of $0.6225 per share, payable July 2, 2020, to shareholders of record on June 11, 2020. We have continuously paid a cash common stock dividend since 1946, with 2020 marking the 17th consecutive year of increasing dividends on an annualized basis.
The board also declared the regular quarterly dividend of $0.36875 per depositary share on Spire's 5.90 percent Series A Cumulative Redeemable Preferred Stock payable August 17, 2020, to holders of record on July 24, 2020.
Guidance and Outlook
We have updated our expected fiscal 2020 capital investment, increasing it by $30 million to $640 million, with $560 million earmarked for our gas utilities and $80 million for our gas-related businesses. We have also updated our 5-year capital expenditure plan to now include 2024, with total investment expected to be $2.8 billion and supporting utility rate base growth of 7-8 percent over that time period.
We affirm our annual long-term NEE per share growth target of 4-7 percent. At this time, we are not providing fiscal 2020 earnings guidance due to the uncertainty over the resolution of ISRS cases in Missouri.
While we have seen limited financial impact from the coronavirus during the first half of our fiscal year, we do anticipate that the combination of higher costs, lower demand and the economic slowdown resulting from the health crisis could adversely impact us for the remainder of calendar 2020. We have taken many actions to ensure our team, customers and communities are both safe and positioned to begin to recover successfully. We are monitoring the potential impacts of the coronavirus, including lower demand and fees and higher bad debts and other operating costs, and we are pursuing operational efficiencies and potential regulatory mechanisms to offset those impacts. We will share our latest view on our earnings call noted below.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2020 second quarter financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
Date and Time: | Friday, May 8 | ||
8 a.m. CT (9 a.m. ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 | ||
The call will also be webcast and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available at 10 a.m. CT (11 a.m. ET) on May 8 until June 9, 2020 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10140913.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, the COVID-19 health crisis, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's annual (Form 10-K) and quarterly (Form 10-Q) filings with the Securities and Exchange Commission.
This news release also includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," "adjusted long-term capitalization," "contribution margin," and "EBITDA." Management uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. Beginning with the fourth quarter of fiscal 2019 and continuing into fiscal 2020, these items include provisions related to the ISRS rulings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin is defined as operating revenues less natural and propane gas costs and gross receipts taxes expense, which are directly passed on to customers and collected through revenues. Adjusted long-term capitalization treats preferred stock as 50% debt and 50% equity, as rating agencies would treat preferred stock. EBITDA is earnings before interest, income taxes, depreciation and amortization. Management believes EBITDA provides a helpful additional measure of core results of Spire Storage. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
Condensed Consolidated Statements of Income – Unaudited | ||||||||||||||||
(In Millions, except per share amounts) | Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating Revenues: | ||||||||||||||||
Gas Utility | $ | 679.1 | $ | 776.7 | $ | 1,209.7 | $ | 1,350.5 | ||||||||
Gas Marketing and other | 36.4 | 26.8 | 72.7 | 55.0 | ||||||||||||
Total Operating Revenues | 715.5 | 803.5 | 1,282.4 | 1,405.5 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Gas Utility | ||||||||||||||||
Natural and propane gas | 249.0 | 337.4 | 463.6 | 589.1 | ||||||||||||
Operation and maintenance | 93.1 | 109.5 | 199.1 | 212.0 | ||||||||||||
Depreciation and amortization | 47.0 | 44.4 | 93.4 | 88.1 | ||||||||||||
Taxes, other than income taxes | 51.7 | 57.4 | 89.6 | 96.6 | ||||||||||||
Total Gas Utility Operating Expenses | 440.8 | 548.7 | 845.7 | 985.8 | ||||||||||||
Gas Marketing and other | 64.2 | 45.3 | 123.9 | 105.1 | ||||||||||||
Total Operating Expenses | 505.0 | 594.0 | 969.6 | 1,090.9 | ||||||||||||
Operating Income | 210.5 | 209.5 | 312.8 | 314.6 | ||||||||||||
Interest Expense, Net | 27.2 | 27.6 | 53.9 | 53.5 | ||||||||||||
Other (Expense) Income, Net | (19.5) | 6.1 | (13.8) | 8.9 | ||||||||||||
Income Before Income Taxes | 163.8 | 188.0 | 245.1 | 270.0 | ||||||||||||
Income Tax Expense | 30.2 | 33.4 | 44.5 | 48.1 | ||||||||||||
Net Income | 133.6 | 154.6 | 200.6 | 221.9 | ||||||||||||
Provision for preferred dividends | 3.7 | — | 7.4 | — | ||||||||||||
Income allocated to participating securities | 0.2 | 0.3 | 0.3 | 0.5 | ||||||||||||
Net Income Available to Common Shareholders | $ | 129.7 | $ | 154.3 | $ | 192.9 | $ | 221.4 | ||||||||
Weighted Average Number of Shares Outstanding: | ||||||||||||||||
Basic | 51.0 | 50.6 | 51.0 | 50.6 | ||||||||||||
Diluted | 51.1 | 50.8 | 51.1 | 50.8 | ||||||||||||
Basic Earnings Per Common Share | $ | 2.55 | $ | 3.05 | $ | 3.78 | $ | 4.37 | ||||||||
Diluted Earnings Per Common Share | $ | 2.54 | $ | 3.04 | $ | 3.77 | $ | 4.36 | ||||||||
Dividends Declared Per Common Share | $ | 0.6225 | $ | 0.5925 | $ | 1.245 | $ | 1.185 | ||||||||
Condensed Consolidated Balance Sheets – Unaudited | ||||||||||||
(In Millions) | March 31, | September 30, | March 31, | |||||||||
2020 | 2019 | 2019 | ||||||||||
ASSETS | ||||||||||||
Utility Plant | $ | 6,369.4 | $ | 6,146.5 | $ | 5,856.8 | ||||||
Less: Accumulated depreciation and amortization | 1,848.4 | 1,794.5 | 1,738.5 | |||||||||
Net Utility Plant | 4,521.0 | 4,352.0 | 4,118.3 | |||||||||
Non-utility Property | 547.4 | 477.8 | 329.1 | |||||||||
Other Investments | 68.1 | 72.3 | 68.4 | |||||||||
Total Other Property and Investments | 615.5 | 550.1 | 397.5 | |||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | 108.4 | 5.8 | 11.1 | |||||||||
Accounts receivable, net | 353.0 | 289.6 | 487.0 | |||||||||
Inventories | 127.1 | 196.6 | 126.3 | |||||||||
Other | 130.3 | 122.5 | 169.2 | |||||||||
Total Current Assets | 718.8 | 614.5 | 793.6 | |||||||||
Deferred Charges and Other Assets | 2,162.7 | 2,102.6 | 1,964.2 | |||||||||
Total Assets | $ | 8,018.0 | $ | 7,619.2 | $ | 7,273.6 | ||||||
CAPITALIZATION AND LIABILITIES | ||||||||||||
Capitalization: | ||||||||||||
Preferred stock | $ | 242.0 | $ | 242.0 | $ | — | ||||||
Common stock and paid-in capital | 1,571.9 | 1,556.8 | 1,536.3 | |||||||||
Retained earnings | 902.3 | 775.5 | 877.5 | |||||||||
Accumulated other comprehensive loss | (50.6) | (31.3) | (7.8) | |||||||||
Total Shareholders' Equity | 2,665.6 | 2,543.0 | 2,406.0 | |||||||||
Temporary equity | 3.9 | 3.4 | — | |||||||||
Long-term debt (less current portion) | 2,484.8 | 2,082.6 | 2,041.9 | |||||||||
Total Capitalization | 5,154.3 | 4,629.0 | 4,447.9 | |||||||||
Current Liabilities: | ||||||||||||
Current portion of long-term debt | 5.4 | 40.0 | 215.0 | |||||||||
Notes payable | 560.6 | 743.2 | 512.0 | |||||||||
Accounts payable | 221.4 | 301.5 | 324.8 | |||||||||
Accrued liabilities and other | 365.1 | 384.1 | 284.9 | |||||||||
Total Current Liabilities | 1,152.5 | 1,468.8 | 1,336.7 | |||||||||
Deferred Credits and Other Liabilities: | ||||||||||||
Deferred income taxes | 498.1 | 451.4 | 490.2 | |||||||||
Pension and postretirement benefit costs | 272.1 | 264.8 | 178.3 | |||||||||
Asset retirement obligations | 344.7 | 337.6 | 325.5 | |||||||||
Regulatory liabilities | 472.3 | 399.0 | 431.3 | |||||||||
Other | 124.0 | 68.6 | 63.7 | |||||||||
Total Deferred Credits and Other Liabilities | 1,711.2 | 1,521.4 | 1,489.0 | |||||||||
Total Capitalization and Liabilities | $ | 8,018.0 | $ | 7,619.2 | $ | 7,273.6 | ||||||
Condensed Consolidated Statements of Cash Flows – Unaudited | ||||||||
(In Millions) | Six Months Ended March 31, | |||||||
2020 | 2019 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 200.6 | $ | 221.9 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 96.7 | 89.1 | ||||||
Deferred income taxes and investment tax credits | 42.8 | 45.5 | ||||||
Changes in assets and liabilities | (18.3) | (57.6) | ||||||
Other | (0.1) | (1.4) | ||||||
Net cash provided by operating activities | 321.7 | 297.5 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (346.1) | (376.8) | ||||||
Business acquisitions | — | (7.9) | ||||||
Other | 1.5 | (1.9) | ||||||
Net cash used in investing activities | (344.6) | (386.6) | ||||||
Financing Activities: | ||||||||
Issuance of long-term debt | 510.0 | 190.0 | ||||||
Repayment of long-term debt | (140.0) | (9.1) | ||||||
Repayment of short-term debt, net | (182.6) | (41.6) | ||||||
Issuance of common stock | 15.2 | 1.0 | ||||||
Dividends paid on common stock | (63.8) | (58.8) | ||||||
Dividends paid on preferred stock | (7.4) | — | ||||||
Other | (5.9) | (2.7) | ||||||
Net cash provided by financing activities | 125.5 | 78.8 | ||||||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 102.6 | (10.3) | ||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 5.8 | 21.4 | ||||||
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ | 108.4 | $ | 11.1 | ||||
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||
(In Millions, except per share amounts) | Gas Utility | Gas Marketing | Other | Total | Per Diluted Common Share (2) | |||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 142.3 | $ | (3.3) | $ | (5.4) | $ | 133.6 | $ | 2.54 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Provision for ISRS rulings | 2.2 | — | — | 2.2 | 0.04 | |||||||||||||||
Unrealized loss on energy-related derivatives | 0.4 | 11.2 | — | 11.6 | 0.23 | |||||||||||||||
Income tax effect of adjustments (1) | (0.6) | (2.8) | — | (3.4) | (0.06) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 144.3 | $ | 5.1 | $ | (5.4) | $ | 144.0 | $ | 2.75 | ||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 146.7 | $ | 12.9 | $ | (5.0) | $ | 154.6 | $ | 3.04 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized gain on energy-related derivatives | — | (9.1) | — | (9.1) | (0.18) | |||||||||||||||
Income tax effect of adjustments (1) | — | 2.4 | — | 2.4 | 0.04 | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 146.7 | $ | 6.2 | $ | (5.0) | $ | 147.9 | $ | 2.90 | ||||||||||
Six Months Ended March 31, 2020 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 209.4 | $ | — | $ | (8.8) | $ | 200.6 | $ | 3.77 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Provision for ISRS rulings | 4.8 | — | — | 4.8 | 0.09 | |||||||||||||||
Unrealized gain on energy-related derivatives | 0.4 | 14.9 | — | 15.3 | 0.30 | |||||||||||||||
Income tax effect of adjustments (1) | (1.2) | (3.7) | — | (4.9) | (0.10) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 213.4 | $ | 11.2 | $ | (8.8) | $ | 215.8 | $ | 4.06 | ||||||||||
Six Months Ended March 31, 2019 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 213.1 | $ | 22.9 | $ | (14.1) | $ | 221.9 | $ | 4.36 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized gain on energy-related derivatives | — | (11.3) | — | (11.3) | (0.22) | |||||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 0.4 | 0.4 | 0.01 | |||||||||||||||
Income tax effect of adjustments (1) | — | 2.9 | (0.1) | 2.8 | 0.05 | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 213.1 | $ | 14.5 | $ | (13.8) | $ | 213.8 | $ | 4.20 | ||||||||||
(1) | Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the related effective date. |
(2) | Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation, which includes reductions for cumulative preferred dividends and participating shares. |
Contribution Margin and Reconciliation to GAAP | ||||||||||||||||||||
(In Millions) | Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 212.9 | $ | (4.4) | $ | 2.0 | $ | — | $ | 210.5 | ||||||||||
Operation and maintenance expenses | 95.8 | 3.6 | 9.6 | (3.3) | 105.7 | |||||||||||||||
Depreciation and amortization | 47.0 | 0.1 | 2.1 | — | 49.2 | |||||||||||||||
Taxes, other than income taxes | 51.7 | 0.4 | 0.9 | — | 53.0 | |||||||||||||||
Less: Gross receipts tax expense | (37.6) | (0.2) | (0.1) | — | (37.9) | |||||||||||||||
Contribution Margin [Non-GAAP] | 369.8 | (0.5) | 14.5 | (3.3) | 380.5 | |||||||||||||||
Natural and propane gas costs | 271.6 | 33.6 | 0.1 | (8.2) | 297.1 | |||||||||||||||
Gross receipts tax expense | 37.6 | 0.2 | 0.1 | — | 37.9 | |||||||||||||||
Operating Revenues | $ | 679.0 | $ | 33.3 | $ | 14.7 | $ | (11.5) | $ | 715.5 | ||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 196.3 | $ | 16.8 | $ | (3.6) | $ | — | $ | 209.5 | ||||||||||
Operation and maintenance expenses | 112.0 | 2.7 | 6.5 | (2.9) | 118.3 | |||||||||||||||
Depreciation and amortization | 44.4 | — | 0.5 | — | 44.9 | |||||||||||||||
Taxes, other than income taxes | 57.4 | 0.3 | 0.4 | — | 58.1 | |||||||||||||||
Less: Gross receipts tax expense | (43.4) | (0.1) | — | — | (43.5) | |||||||||||||||
Contribution Margin [Non-GAAP] | 366.7 | 19.7 | 3.8 | (2.9) | 387.3 | |||||||||||||||
Natural and propane gas costs | 366.7 | 5.7 | 0.5 | (0.2) | 372.7 | |||||||||||||||
Gross receipts tax expense | 43.4 | 0.1 | — | — | 43.5 | |||||||||||||||
Operating Revenues | $ | 776.8 | $ | 25.5 | $ | 4.3 | $ | (3.1) | $ | 803.5 | ||||||||||
Six Months Ended March 31, 2020 | ||||||||||||||||||||
Operating Income [GAAP] | $ | 309.2 | $ | — | $ | 3.6 | $ | — | $ | 312.8 | ||||||||||
Operation and maintenance expenses | 204.4 | 6.7 | 17.5 | (6.3) | 222.3 | |||||||||||||||
Depreciation and amortization | 93.4 | 0.1 | 3.2 | — | 96.7 | |||||||||||||||
Taxes, other than income taxes | 89.6 | 0.7 | 1.3 | — | 91.6 | |||||||||||||||
Less: Gross receipts tax expense | (62.2) | (0.2) | (0.1) | — | (62.5) | |||||||||||||||
Contribution Margin [Non-GAAP] | 634.4 | 7.3 | 25.5 | (6.3) | 660.9 | |||||||||||||||
Natural and propane gas costs | 513.1 | 58.1 | 0.2 | (12.4) | 559.0 | |||||||||||||||
Gross receipts tax expense | 62.2 | 0.2 | 0.1 | — | 62.5 | |||||||||||||||
Operating Revenues | $ | 1,209.7 | $ | 65.6 | $ | 25.8 | $ | (18.7) | $ | 1,282.4 | ||||||||||
Six Months Ended March 31, 2019 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 291.9 | $ | 29.3 | $ | (6.6) | $ | — | $ | 314.6 | ||||||||||
Operation and maintenance expenses | 216.9 | 5.3 | 13.9 | (5.6) | 230.5 | |||||||||||||||
Depreciation and amortization | 88.1 | — | 1.0 | — | 89.1 | |||||||||||||||
Taxes, other than income taxes | 96.6 | 0.5 | 0.8 | — | 97.9 | |||||||||||||||
Less: Gross receipts tax expense | (69.3) | (0.1) | — | — | (69.4) | |||||||||||||||
Contribution Margin [Non-GAAP] | 624.2 | 35.0 | 9.1 | (5.6) | 662.7 | |||||||||||||||
Natural and propane gas costs | 658.5 | 16.2 | 0.6 | (1.9) | 673.4 | |||||||||||||||
Gross receipts tax expense | 69.3 | 0.1 | — | — | 69.4 | |||||||||||||||
Operating Revenues | $ | 1,352.0 | $ | 51.3 | $ | 9.7 | $ | (7.5) | $ | 1,405.5 | ||||||||||
Spire Storage EBITDA1 Reconciliation to GAAP | |||||||||||||||
(In Millions) | Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net Loss [GAAP] | $ | (3.3) | $ | (4.9) | $ | (5.2) | $ | (7.8) | |||||||
Add back: | |||||||||||||||
Interest charges | 1.3 | 1.3 | 2.6 | 1.9 | |||||||||||
Income tax benefit | (0.9) | (1.3) | (1.4) | (2.1) | |||||||||||
Depreciation and amortization | 0.6 | 0.4 | 1.1 | 0.8 | |||||||||||
EBITDA [Non-GAAP] | $ | (2.3) | $ | (4.5) | $ | (2.9) | $ | (7.2) | |||||||
1 EBITDA is earnings before interest, income taxes, depreciation and amortization. |
Adjusted Long-Term Capitalization Reconciliation to GAAP | |||||||||||||||||||||||
(In Millions) | March 31, 2020 | September 30, 2019 | |||||||||||||||||||||
Equity2 | Debt | Total | Equity2 | Debt | Total | ||||||||||||||||||
Capitalization | $ | 2,669.5 | $ | 2,484.8 | $ | 5,154.3 | $ | 2,546.4 | $ | 2,082.6 | $ | 4,629.0 | |||||||||||
Current portion of long-term debt | — | 5.4 | 5.4 | — | 40.0 | 40.0 | |||||||||||||||||
Long-term Capitalization [GAAP] | 2,669.5 | 2,490.2 | 5,159.7 | 2,546.4 | 2,122.6 | 4,669.0 | |||||||||||||||||
Reclassify 50% of preferred stock | (121.0) | 121.0 | — | (121.0) | 121.0 | — | |||||||||||||||||
Adjusted Long-term Capitalization [Non-GAAP] | $ | 2,548.5 | $ | 2,611.2 | $ | 5,159.7 | $ | 2,425.4 | $ | 2,243.6 | $ | 4,669.0 | |||||||||||
% of adjusted long-term capitalization | 49.4% | 50.6% | 100.0% | 51.9% | 48.1% | 100.0% | |||||||||||||||||
2 Temporary equity of $3.9 and $3.4 is included in equity as of March 31, 2020 and September 30, 2019, respectively. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-reports-second-quarter-results-301055506.html
SOURCE Spire Inc.
Article Date
5/8/2020Spire commits $250,000 to feeding people in the communities it serves
Source: PR Newswire
ST. LOUIS, April 30, 2020 /PRNewswire/ -- Spire is donating $250,000 to food pantries and meal programs in its service areas — Missouri, Alabama, Houston, Mississippi, and Wyoming. The donation is part of Spire's broader effort to provide relief to customers impacted by the coronavirus pandemic. Previously, the company announced the suspension of late fees and disconnections into May and a commitment of $500,000 in DollarHelp gifts to help active customers pay their natural gas bills.
"As the pandemic began to sweep across our communities, we asked ourselves, 'How can we help right now? That's very much who we are,'" said Suzanne Sitherwood, Spire president and CEO. "Partnering with food pantries and meal programs seemed like the perfect fit, because providing the energy needed for warm meals and moments around the dinner table is part of our daily business and a real need we can help meet."
Spire's donation will be shared across 17 organizations, including the Boys and Girls Club of Greater Kansas City, Christian Services Inc., Community Food Bank of Central Alabama, Evanston Child Development Center, Feeding the Gulf Coast, Festival for Families, Harvesters Community Food Network, Houston Food Bank, Montgomery Area Food Bank, Ozarks Food Harvest, Ozark Food Pantry, Ronald McDonald House, Second Harvest Community Food Bank, Southeast Missouri Foodbank, St. Louis Area Foodbank, the Urban League of Metropolitan St. Louis, and the YMCA of Greater Montgomery's Brown Bag Bus. The contributions will provide nearly 650,000 meals.
"We are incredibly grateful for the generous support from Spire to help provide food and hope to so many of our neighbors in need during this coronavirus pandemic," said Meredith Knopp, St. Louis Area Foodbank president and CEO. "During these unprecedented times, it takes all of us coming together to support so many people struggling with food insecurity for the first time."
With school closures, income disruptions and job losses, millions are turning to food banks for much-needed support.
"We are so grateful that our community is rallying around the food bank to help our neighbors in need," said Elizabeth Wix, director of partnerships and interim executive manager at the Community Food Bank of Central Alabama. "We have seen a large increase in the demand for our services as businesses are closed and folks are out of work. Donations like this help us to purchase more food and feed more families."
To learn more about what Spire is doing to help customers impacted by the coronavirus pandemic, visit SpireEnergy.com/relief.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Media Contact:
Raegan Johnson
314-342-3300
Raegan.Johnson@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-commits-250-000-to-feeding-people-in-the-communities-it-serves-301050314.html
SOURCE Spire Inc.
Article Date
4/30/20204/17/2020 - Spire to Host Earnings Conference Call on May 8
Spire to Host Earnings Conference Call on May 8
Source: PR Newswire
ST. LOUIS, April 17, 2020 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Friday, May 8, to discuss our fiscal 2020 second quarter financial results. We will issue our earnings news release before the market opens that day, and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Friday, May 8 | ||
8 a.m. CT (9 a.m. ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 | ||
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 12 p.m. CT (1 p.m. ET) on May 8 until June 9, 2020, by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10140913. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-may-8-301043023.html
SOURCE Spire Inc.
Article Date
4/17/2020Spire to Host Earnings Conference Call on Feb. 5
Source: PR Newswire
ST. LOUIS, Jan. 7, 2020 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, Feb. 5, to discuss our fiscal 2020 first quarter financial results. We will issue our earnings news release before the market opens that day, and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Wednesday, Feb. 5 |
10 a.m. CT (11 a.m. ET) | |
Phone Numbers: | U.S. and Canada: 844-824-3832 |
International: 412-317-5142 |
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 12 p.m. CT (1 p.m. ET) on Feb. 5 until March 6, 2020, by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10138031. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-feb-5-300982781.html
SOURCE Spire Inc.
Article Date
1/7/2020Steve Lindsey Named Chief Operating Officer of Spire Inc.
Source: PR Newswire
ST. LOUIS, Dec. 9, 2019 /PRNewswire/ -- Steve Lindsey has been appointed executive vice president, chief operating officer (COO) of Spire Inc., effective Jan. 1. In this role, Lindsey retains oversight of Spire's gas utilities while assuming management oversight for the company's midstream operations, which include Spire Storage and Spire STL Pipeline.
"As we've grown our business and focused on finding innovative ways to serve our customers better than ever before, Steve has done an exceptional job of leading and modernizing our utility companies. It's a natural progression to ask Steve to now take on our midstream operations and become our COO of Spire Inc.," said Suzanne Sitherwood, Spire president and CEO. "Steve has more than 30 years of experience in the natural gas industry. He's a fantastic leader who thinks strategically, inspires the best in others, and always—always—puts safety first."
Lindsey joined Spire as president of its gas utility in 2012 and is currently the executive vice president, chief executive officer of gas utilities and distribution operations, leading 3,000 employees to deliver the safest, most reliable and affordable energy to more than 1.7 million homes and businesses in Alabama, Mississippi and Missouri.
Lindsey is based out of Spire's St. Louis office.
To learn more about Spire, visit www.SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Media Contact:
Raegan Johnson
314-342-3300
Raegan.Johnson@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/steve-lindsey-named-chief-operating-officer-of-spire-inc-300970856.html
SOURCE Spire Inc.
Article Date
12/9/201911/25/2019 - Spire Reports Growth in Fiscal 2019 Earnings
Spire Reports Growth in Fiscal 2019 Earnings
Source: PR Newswire
ST. LOUIS, Nov. 25, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported results for its fiscal 2019 full year and fourth quarter ended September 30. Highlights include:
"In fiscal 2019, we delivered another year of consistent growth and improving performance. Through our organic growth initiatives and continued investment, we achieved growth in our gas utilities while we further expanded our marketing business," said Suzanne Sitherwood, president and chief executive officer of Spire. "Our ongoing investment in infrastructure upgrades, technology and our people drove another year of enhanced safety, system integrity and service levels. At the same time, we continued to advance our midstream businesses, and we are pleased to announce that the Spire STL Pipeline is now in service, providing a reliable and more diverse supply of natural gas to the St. Louis region. Moving forward, we are poised to continue our growth while delivering on our promise to enrich the lives of our customers and advance the communities we serve."
Fiscal Year Results | Year Ended September 30, | |||||||||||||||
(Millions) | (Per Diluted Common Share) | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net Economic Earnings (Loss)* by Segment | ||||||||||||||||
Gas Utility | $ | 199.8 | $ | 183.1 | ||||||||||||
Gas Marketing | 19.4 | 22.9 | ||||||||||||||
Other | (24.1) | (22.3) | ||||||||||||||
Total | $ | 195.1 | $ | 183.7 | $ | 3.73 | $ | 3.72 | ||||||||
Missouri ISRS provision, pre-tax | (12.2) | — | (0.23) | — | ||||||||||||
Missouri regulatory adjustments, pre-tax | — | (30.6) | — | (0.62) | ||||||||||||
Effect of the Tax Cuts and Jobs Act | — | 60.1 | — | 1.21 | ||||||||||||
All other adjustments | 1.7 | 1.0 | 0.02 | 0.02 | ||||||||||||
Net Income | $ | 184.6 | $ | 214.2 | $ | 3.52 | $ | 4.33 | ||||||||
Weighted Average Diluted Shares Outstanding | 50.8 | 49.3 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For fiscal 2019, we reported consolidated net income of $184.6 million (or $3.52 per diluted share) which includes $12.2 million ($9.3 million after tax or $0.18 per share) to establish a provision for Infrastructure System Replacement Surcharge (ISRS) revenues which were subject to rulings by the Missouri Court of Appeals on November 19, 2019. See further discussion in the Regulatory Matters section.
Prior-year net income was $214.2 million (or $4.33 per share). Fiscal year 2018 results include a $60.1 million benefit from the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act, partially offset by a $38.4 million write-off of certain assets that were disallowed in our Missouri rate proceedings.
Net economic earnings (NEE) for the year were $195.1 million (or $3.73 per share), up 6.2% from $183.7 million (or $3.72 per share) a year ago. The increase in NEE was driven by growth at our Gas Utility operations offset by slightly lower results, as expected, from Gas Marketing in comparison to an unusually strong performance a year ago. Per share results reflect a three percent increase in diluted shares outstanding as a result of 2.3 million shares issued in May 2018 and equity issued under our At-the-Market (ATM) program launched this year, as well as the impact from dividends on the preferred stock issued in our fiscal 2019 third quarter.
NEE excludes from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative or GAAP standard-setting actions. In fiscal 2019, these impacts included the provision established for the Missouri ISRS rulings noted above. In fiscal 2018, these impacts included the tax reform and $30.6 million of write-offs related to the Missouri rate proceedings.
Gas Utility
The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. For fiscal 2019, this segment reported NEE of $199.8 million, up from $183.1 million a year ago, reflecting a higher contribution margin and more favorable weather patterns.
Fiscal 2019 contribution margin increased by $19.6 million, reflecting the rate design change at the Missouri utilities that resulted in $32.2 million higher margins during the winter heating season. Margin also benefitted a combined $21.1 million from higher ISRS revenues, increased gas usage due to colder weather in Missouri, a favorable Rate Stabilization and Equalization (RSE) adjustment, and modest customer growth. These benefits were partially offset by a reduction in Missouri and Alabama customer rates of $24.3 million to reflect the lower federal income taxes resulting from tax reform, which is offset by lower income tax expense resulting in minimal impact on earnings, and $12.2 million for the Missouri ISRS provision.
Operation and maintenance (O&M) expenses in fiscal 2019 decreased by $8.9 million compared to the prior-year period, which included the write-off of assets and expenses disallowed in our Missouri rate cases totaling $38.4 million. Current year expenses reflect the benefit of a $19.6 million year-over-year reclassification of certain postretirement benefit costs to other income and expense (no impact on net income). Excluding these items, O&M increased $9.9 million, with $9.0 million of that increase attributed to higher employee benefits and energy efficiency costs reset in our Missouri rate cases. Depreciation and amortization rose by $12.4 million, reflecting increased capital investment across our utilities.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing services across the central and southern United States. Fiscal 2019 Gas Marketing NEE, which excludes mark-to-market and fair value adjustments, was $19.4 million, down from $22.9 million in the prior year. The solid current year performance reflects the benefit of geographic expansion of the business offset by a return of more normal market conditions compared to favorable weather-driven conditions last year.
Other
On an NEE basis, other gas-related operations and corporate costs were $24.1 million, up from $22.3 million a year ago. The higher costs reflect negative Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA1) from Spire Storage of $13.2 million, which was excluded from NEE in the prior year, partially offset by the benefit of increased non-cash Allowance for Funds Used During Construction (AFUDC) income from Spire STL Pipeline.
Fourth Quarter Results | Three Months Ended September 30, | |||||||||||||||
(Millions) | (Per Diluted Common Share) | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net Economic (Loss) Earnings* by Segment | ||||||||||||||||
Gas Utility | $ | (20.9) | $ | (25.0) | ||||||||||||
Gas Marketing | 1.6 | 4.7 | ||||||||||||||
Other | (4.4) | (6.3) | ||||||||||||||
Total | $ | (23.7) | $ | (26.6) | $ | (0.54) | $ | (0.52) | ||||||||
Missouri ISRS provision | (12.2) | — | (0.23) | — | ||||||||||||
Effect of the Tax Cuts and Jobs Act | — | 6.1 | — | 0.12 | ||||||||||||
All other adjustments | 1.6 | (5.4) | 0.03 | (0.11) | ||||||||||||
Net Loss | $ | (34.3) | $ | (25.9) | $ | (0.74) | $ | (0.51) | ||||||||
Weighted Average Diluted Shares Outstanding | 50.9 | 50.7 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
Our gas utility business is seasonal in nature, with earnings concentrated during the winter heating season. As a result, we typically report a loss in our fiscal fourth quarter ended September 30. For fiscal 2019, we reported a consolidated net loss for the fourth quarter of $34.3 million ($0.74 per diluted share), compared to a net loss of $25.9 million ($0.51 per share), a year ago. The fourth quarter fiscal 2019 loss includes the $9.3 million, after-tax ($0.18 per share) impact for the Missouri ISRS provision as noted earlier.
On an NEE basis, the fourth quarter loss was $23.7 million ($0.54 per share) compared to a loss of $26.6 million ($0.52 per share) in the prior-year period. The lower loss is due to improved results from Gas Utility, partially offset by lower results from Spire Marketing.
Gas Utility
Gas Utility reported a loss on an NEE basis of $20.9 million, compared to a loss of $25.0 million in the prior year. Excluding the ISRS rulings, contribution margin increased, partially offset by higher operating costs.
Contribution margin decreased $3.8 million in the fourth quarter of fiscal 2019 over the prior-year period, due to the Missouri ISRS provision partially offset by higher ISRS revenues of $5.5 million, higher usage and customer growth totaling $1.5 million and favorable Alabama RSE adjustments.
O&M expenses of $109.1 million for the fourth quarter were up $1.3 million compared to the prior-year period, largely reflecting the quarter-over-quarter benefit of the reclassification of certain postretirement costs to other income and expense of $1.4 million. Depreciation and amortization expense increased by $1.1 million from last year, reflecting higher capital investment.
Gas Marketing
Fourth quarter NEE was $1.6 million, down from $4.7 million in the prior year. Performance in the current-year period reflects the benefit of geographic expansion of the business, offset by less favorable market conditions including narrower basis differentials.
Other
Other gas-related operations and corporate costs on an NEE basis for the fourth quarter were $4.4 million in fiscal 2019, improved from $6.3 million a year ago. Current year results include negative EBITDA from Spire Storage of $1.6 million, which was more than offset by higher AFUDC income from Spire STL Pipeline and lower corporate costs.
Spire Midstream Operations
During the fourth quarter, we hired Scott Smith, a 30-year energy industry veteran, to lead our midstream operations. In his role, he will be focused on the operational performance the Spire STL Pipeline as well as advancing the development plan and commercial strategy for Spire Storage.
Spire STL Pipeline
We have completed the construction of Spire STL Pipeline and it is now in commercial operation. This follows significant work by our contractor and other partners to complete construction, land restoration and testing of the pipeline after historic flooding caused delays earlier this year. Having the pipeline in operation before calendar year end also reflects timely Federal Energy Regulatory Commission approval of final rates and authorization to commence service.
The 65-mile natural gas supply pipeline serves Spire Missouri East with economical shale gas from the Marcellus/Utica producing regions, and enhances the resiliency and diversity of our physical transport portfolio. The total project cost of the pipeline is approximately $265 million, excluding AFUDC. Under a precedent agreement, Spire Missouri East is the foundation shipper on the pipeline, taking roughly 88 percent of the pipeline's 400,000 Dth/day capacity.
Spire Storage
Our Spire Storage facility is located in southwest Wyoming and is strategically located near the Opal hub with interconnections to five interstate pipelines serving the Rockies and western United States. During fiscal 2019, we continued to focus on development of the facility, including a disciplined approach to capital deployment to enhance operating capabilities and position the business to serve its customers during the upcoming winter season. In fiscal 2019, we invested $35 million in the facilities in addition to $56 million in base gas, both to support the operating capabilities of the facility.
Regulatory Matters
Missouri
Spire Missouri is authorized by the Missouri Public Service Commission (MoPSC) to collect ISRS revenues, subject to prudence review. The ISRS mechanism allows for more timely recovery of certain investments in infrastructure upgrades that improve the integrity and safety of our distribution pipeline system. It has been in place for over 15 years and has supported investments of well over $1.2 billion in infrastructure upgrades during that time period.
On October 30, 2019, the MoPSC approved an increase of $8.8 million in ISRS revenues for Spire Missouri, effective November 16, 2019.
On November 19, 2019, the Missouri Western District Court of Appeals issued rulings that determined that certain expenditures in 2016-2018 were not eligible for ISRS recovery, and called for refund of amounts including
The Court of Appeals remanded these findings to the MoPSC, who will define its process to respond to the decision and determine the appropriate refund, if any, at a later date should the decision ultimately stand.
We strongly disagree with the rulings, and are evaluating our legal and regulatory options in response. Spire Missouri plans to continue the appeal process, which will stay the effectiveness of the ISRS rulings. It is unclear at this point what amounts, if any, may be refunded to customers. As of September 30, 2019, Spire Missouri has accrued a $12.2 million regulatory liability, reducing revenue for fiscal 2019 and reducing net income by $9.3 million or $0.18 per diluted share.
Alabama
On October 24, 2019, Spire Alabama made its annual RSE rate filing with the Alabama Public Service Commission (APSC), presenting the utility's budget for the fiscal year ending September 30, 2020, including net income and a calculation of allowed return on average common equity (ROE). In fiscal 2019, Spire Alabama operated under an infrastructure replacement incentive called the Accelerated Infrastructure Modernization, or AIM mechanism. This incentive provides for a 10 basis-point increase in the ROE of 10.4 percent in fiscal 2020 if a prescribed number of pipeline miles were replaced in fiscal 2019. Spire Alabama exceeded the threshold miles to be eligible for the AIM incentive, and accordingly, filed for a 10.5 percent ROE for fiscal 2020.
On October 25, 2019, Spire Gulf made its annual RSE rate filing with the APSC based on its budget for fiscal 2020 and an allowed ROE of 10.7 percent.
The filings are currently being reviewed by the APSC and we anticipate that new rates will be effective December 1, 2019.
On November 5, 2019, the APSC approved Spire Alabama's proposal to establish a mechanism allowing the utility to create value through off-system sales of excess natural gas supply. Similar to the successful program we have operated for many years in Missouri, 75 percent of value created from this program will be used to lower customer rates in Alabama, with the remainder retained by the utility. The mechanism is expected to be effective with new rates on December 1, 2019.
Dividend Increased by 5.1 Percent
Reflecting our solid performance in fiscal 2019 and expectations for continued growth, the board of directors of Spire increased the quarterly common stock dividend to $0.6225 per share, an increase of 5.1 percent. This raises the annualized rate by $0.12 per share to $2.49 per share. Spire has continuously paid a cash dividend since 1946, and 2020 will mark the 17th consecutive year that the dividend has increased. The dividend is payable January 3, 2020, to shareholders of record on December 11, 2019.
The board of directors also declared the regular quarterly dividend of $0.36875 per depository share on Spire's 5.90 percent Series A Cumulative Redeemable Perpetual Preferred Stock payable February 15, 2020, to holders of record on January 24, 2020.
Balance Sheets and Cash Flow
In fiscal 2019, we maintained a strong capital structure and ample liquidity. At September 30, 2019, the end of our fiscal year, we had adjusted long-term capitalization2 of 51.9 percent equity, compared to 52.2 percent a year ago. Our solid financial position was bolstered by issuance of preferred stock in May 2019 that generated net proceeds of $242 million. The proceeds were used in part to redeem $125 million in Spire senior notes.
We also launched a $150 million ATM equity program in May 2019. Approximately 180,000 shares (gross proceeds of $14.9 million) were issued from this program through the remainder of our fiscal year.
During fiscal 2019, Spire Gulf completed a private debt transaction, issuing $40 million of 30-year first mortgage bonds in September. During our fiscal fourth quarter, we redeemed $125 million of senior unsecured notes at Spire Inc. Subsequent to our year end, Spire Missouri issued $275 million of 10-year first mortgage bonds in November 2019 and redeemed a $100 million term loan at Spire Missouri.
Short-term borrowings outstanding at fiscal year-end were $743.2 million, up from $553.6 million a year ago, reflecting higher capital investment and the timing of long-term borrowing. Through our $975 million credit facility, we have ample capacity to meet our seasonal borrowing needs, which peak during the winter heating season.
Net cash provided by operating activities was $450.9 million for fiscal 2019, compared to $456.6 million for fiscal 2018. The slight decrease was primarily driven by lower net income partially offset by higher depreciation expense.
Capital expenditures for fiscal 2019 were $823.3 million, up from $499.4 million in the prior year. The year-over-year increase reflects a $119 million increase in utility spend focused on infrastructure upgrades and new business across all our utilities, higher spend for construction of Spire STL Pipeline ($111 million) and in Spire Storage.
For additional details on Spire's results for the fourth quarter and full year of fiscal 2019, please see the accompanying unaudited Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
______________________________ |
1See "Spire Storage EBITDA and Reconciliation to GAAP." |
2See "Adjusted Long-Term Capitalization and Reconciliation to GAAP." |
Earnings Guidance and Outlook
We affirm our annual long-term NEE per share earnings growth target of 4-7 percent. Our long-term target reflects the expectation of continued consistent growth of our gas utilities driven by organic growth initiatives as well as robust capital investment focused on infrastructure upgrades, technology and new business. We also expect growing contributions from Spire Marketing and Spire STL Pipeline, and continue to anticipate that Spire Storage will deliver positive EBITDA beginning in the second half of next year. We expect to provide NEE per share guidance for fiscal 2020 when we have greater clarity on the impact of the Missouri ISRS rulings.
We have increased our targeted capital investment for the 5-year period 2019-2023 to $3.0 billion, reflecting higher spend in our gas utilities and the timing of spend across other businesses. Capital expenditures for fiscal 2020 are expected to be $590 million, with investment in our gas utilities totaling $520 million, investment in Spire STL Pipeline of $50 million and capital spend for Spire Storage and other businesses totaling $20 million.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2019 fourth quarter and full-year financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
Date and Time: | Tuesday, November 26 | ||
8 a.m. CT (9 a.m. ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 | ||
The call will also be webcast and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available at 10 a.m. CT (11 a.m. ET) on November 26 until January 6, 2020 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10136509.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's annual (Form 10-K) filing with the Securities and Exchange Commission.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," "adjusted long-term capitalization," "contribution margin," and "EBITDA." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these items included the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-off of certain long-standing assets as a result of disallowances in our 2018 Missouri rate proceedings. In fiscal 2019, this included ISRS rulings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. Adjusted long-term capitalization treats preferred stock as 50% debt and 50% equity, as rating agencies would treat preferred stock. EBITDA is earnings before interest, income taxes, depreciation and amortization. Management believes EBITDA provides a helpful additional measure of core results of Spire Storage. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
Condensed Consolidated Statements of Income – Unaudited | |||||||||||||||
(In Millions, except per share amounts) | Three Months Ended September 30, | Year Ended September 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating Revenues: | |||||||||||||||
Gas Utility | $ | 207.3 | $ | 220.7 | $ | 1,859.2 | $ | 1,888.0 | |||||||
Gas Marketing and other | 18.3 | 18.5 | 93.2 | 77.0 | |||||||||||
Total Operating Revenues | 225.6 | 239.2 | 1,952.4 | 1,965.0 | |||||||||||
Operating Expenses: | |||||||||||||||
Gas Utility | |||||||||||||||
Natural and propane gas | 33.6 | 38.4 | 698.2 | 770.1 | |||||||||||
Operation and maintenance | 109.1 | 107.8 | 432.3 | 441.2 | |||||||||||
Depreciation and amortization | 46.2 | 45.1 | 179.4 | 167.0 | |||||||||||
Taxes, other than income taxes | 25.4 | 24.3 | 151.7 | 152.5 | |||||||||||
Total Gas Utility Operating Expenses | 214.3 | 215.6 | 1,461.6 | 1,530.8 | |||||||||||
Gas Marketing and other | 36.9 | 42.5 | 188.5 | 140.1 | |||||||||||
Total Operating Expenses | 251.2 | 258.1 | 1,650.1 | 1,670.9 | |||||||||||
Operating (Loss) Income | (25.6) | (18.9) | 302.3 | 294.1 | |||||||||||
Interest Expense, Net | 25.3 | 24.4 | 104.4 | 98.4 | |||||||||||
Other Income (Expense), Net | 5.9 | (0.6) | 21.2 | (8.0) | |||||||||||
(Loss) Income Before Income Taxes | (45.0) | (43.9) | 219.1 | 187.7 | |||||||||||
Income Tax (Benefit) Expense | (10.7) | (18.0) | 34.5 | (26.5) | |||||||||||
Net (Loss) Income | (34.3) | (25.9) | 184.6 | 214.2 | |||||||||||
Provision for preferred dividends | 3.7 | — | 5.3 | — | |||||||||||
(Loss) Income allocated to participating securities | (0.1) | — | 0.4 | 0.5 | |||||||||||
Net (Loss) Income Available to Common Shareholders | $ | (37.9) | $ | (25.9) | $ | 178.9 | $ | 213.7 | |||||||
Weighted Average Number of Shares Outstanding: | |||||||||||||||
Basic | 50.8 | 50.6 | 50.7 | 49.1 | |||||||||||
Diluted | 50.9 | 50.7 | 50.8 | 49.3 | |||||||||||
Basic (Loss) Earnings Per Share | $ | (0.75) | $ | (0.51) | $ | 3.53 | $ | 4.35 | |||||||
Diluted (Loss) Earnings Per Share | (0.74) | (0.51) | 3.52 | 4.33 | |||||||||||
Dividends Declared Per Common Share | 0.5925 | 0.5625 | 2.37 | 2.25 | |||||||||||
Condensed Consolidated Balance Sheets – Unaudited | ||||||||
(In Millions) | September 30, | September 30, | ||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
Utility Plant | $ | 6,146.5 | $ | 5,653.3 | ||||
Less: Accumulated depreciation and amortization | 1,794.5 | 1,682.8 | ||||||
Net Utility Plant | 4,352.0 | 3,970.5 | ||||||
Other Property and Investments | 550.1 | 243.2 | ||||||
Current Assets: | ||||||||
Cash and cash equivalents | 5.8 | 4.4 | ||||||
Accounts receivable, net | 289.6 | 296.8 | ||||||
Inventories | 196.6 | 210.3 | ||||||
Other | 122.5 | 148.1 | ||||||
Total Current Assets | 614.5 | 659.6 | ||||||
Deferred Charges and Other Assets: | ||||||||
Goodwill | 1,171.6 | 1,171.6 | ||||||
Other deferred charges and other assets | 931.0 | 798.7 | ||||||
Total Deferred Charges and Other Assets | 2,102.6 | 1,970.3 | ||||||
Total Assets | $ | 7,619.2 | $ | 6,843.6 | ||||
CAPITALIZATION AND LIABILITIES | ||||||||
Capitalization: | ||||||||
Preferred stock | $ | 242.0 | $ | — | ||||
Common stock and paid-in capital | 1,556.8 | 1,533.4 | ||||||
Retained earnings | 775.5 | 715.6 | ||||||
Accumulated other comprehensive (loss) income | (31.3) | 6.4 | ||||||
Total Shareholders' Equity | 2,543.0 | 2,255.4 | ||||||
Temporary equity | 3.4 | 7.9 | ||||||
Long-term debt (less current portion) | 2,082.6 | 1,900.1 | ||||||
Total Capitalization | 4,629.0 | 4,163.4 | ||||||
Current Liabilities: | ||||||||
Current portion of long-term debt | 40.0 | 175.5 | ||||||
Notes payable | 743.2 | 553.6 | ||||||
Accounts payable | 301.5 | 290.1 | ||||||
Accrued liabilities and other | 384.1 | 302.5 | ||||||
Total Current Liabilities | 1,468.8 | 1,321.7 | ||||||
Deferred Credits and Other Liabilities: | ||||||||
Deferred income taxes | 451.4 | 435.8 | ||||||
Other deferred credits and other liabilities | 1,070.0 | 922.7 | ||||||
Total Deferred Credits and Other Liabilities | 1,521.4 | 1,358.5 | ||||||
Total Capitalization and Liabilities | $ | 7,619.2 | $ | 6,843.6 | ||||
Condensed Consolidated Statements of Cash Flows – Unaudited | ||||||||
(In Millions) | Year Ended September 30, | |||||||
2019 | 2018 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 184.6 | $ | 214.2 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 181.7 | 168.4 | ||||||
Deferred income taxes and investment tax credits | 31.8 | (28.7) | ||||||
Changes in assets and liabilities | 56.8 | 58.8 | ||||||
Other | (4.0) | 43.9 | ||||||
Net cash provided by operating activities | 450.9 | 456.6 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (823.3) | (499.4) | ||||||
Business acquisitions | (7.9) | (28.1) | ||||||
Other | (7.1) | (4.2) | ||||||
Net cash used in investing activities | (838.3) | (531.7) | ||||||
Financing Activities: | ||||||||
Issuance of preferred stock | 242.0 | — | ||||||
Issuance of long-term debt | 230.0 | 75.0 | ||||||
Repayment of long-term debt | (184.1) | (105.0) | ||||||
Issuance of short-term debt, net | 189.6 | 76.3 | ||||||
Issuance of common stock | 19.5 | 154.7 | ||||||
Dividends paid on common stock | (119.0) | (108.7) | ||||||
Dividends paid on preferred stock | (3.4) | — | ||||||
Other | (2.8) | (3.2) | ||||||
Net cash provided by financing activities | 371.8 | 89.1 | ||||||
Net (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash | (15.6) | 14.0 | ||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year | 21.4 | 7.4 | ||||||
Cash, Cash Equivalents, and Restricted Cash at End of Year | $ | 5.8 | $ | 21.4 | ||||
Net Economic Earnings and Reconciliation to GAAP | |||||||||||||||||||
(In Millions, except per share amounts) | Gas Utility | Gas Marketing | Other | Total | Per Diluted Common | ||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||
Net (Loss) Income [GAAP] | $ | (30.2) | $ | 0.3 | $ | (4.4) | $ | (34.3) | $ | (0.74) | |||||||||
Adjustments, pre-tax: | |||||||||||||||||||
Missouri ISRS provision | 12.2 | — | — | 12.2 | 0.23 | ||||||||||||||
Unrealized loss on energy-related derivatives | — | 4.5 | — | 4.5 | 0.09 | ||||||||||||||
Lower of cost or market inventory adjustments | — | (2.7) | — | (2.7) | (0.05) | ||||||||||||||
Income tax effect of adjustments (1) | (2.9) | (0.5) | — | (3.4) | (0.07) | ||||||||||||||
Net Economic (Loss) Earnings [Non-GAAP] | $ | (20.9) | $ | 1.6 | $ | (4.4) | $ | (23.7) | $ | (0.54) | |||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||
Net (Loss) Income [GAAP] | $ | (21.8) | $ | 4.9 | $ | (9.0) | $ | (25.9) | $ | (0.51) | |||||||||
Adjustments, pre-tax: | |||||||||||||||||||
Unrealized gain on energy-related derivatives | — | (0.6) | — | (0.6) | (0.01) | ||||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 6.6 | 6.6 | 0.13 | ||||||||||||||
Income tax effect of adjustments (1) | 0.1 | 0.2 | (0.9) | (0.6) | (0.01) | ||||||||||||||
Effect of the Tax Cuts and Jobs Act | (3.3) | 0.2 | (3.0) | (6.1) | (0.12) | ||||||||||||||
Net Economic (Loss) Earnings [Non-GAAP] | $ | (25.0) | $ | 4.7 | $ | (6.3) | $ | (26.6) | $ | (0.52) | |||||||||
Year Ended September 30, 2019 | |||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 190.5 | $ | 18.5 | $ | (24.4) | $ | 184.6 | $ | 3.52 | |||||||||
Adjustments, pre-tax: | |||||||||||||||||||
Missouri ISRS provision | 12.2 | — | — | 12.2 | 0.23 | ||||||||||||||
Unrealized loss on energy-related derivatives | — | 1.2 | — | 1.2 | 0.03 | ||||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 0.4 | 0.4 | 0.01 | ||||||||||||||
Income tax effect of adjustments (1) | (2.9) | (0.3) | (0.1) | (3.3) | (0.06) | ||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 199.8 | $ | 19.4 | $ | (24.1) | $ | 195.1 | $ | 3.73 | |||||||||
Year Ended September 30, 2018 | |||||||||||||||||||
Net Income [GAAP] | $ | 144.4 | $ | 24.9 | $ | 44.9 | $ | 214.2 | $ | 4.33 | |||||||||
Adjustments, pre-tax: | |||||||||||||||||||
Missouri regulatory adjustments | 30.6 | — | — | 30.6 | 0.62 | ||||||||||||||
Unrealized gain on energy-related derivatives | — | (4.0) | — | (4.0) | (0.08) | ||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.3) | — | (0.3) | (0.01) | ||||||||||||||
Acquisition, divestiture and restructuring activities | 0.2 | — | 13.4 | 13.6 | 0.28 | ||||||||||||||
Income tax effect of adjustments (1) | (9.1) | 1.2 | (2.4) | (10.3) | (0.21) | ||||||||||||||
Effect of the Tax Cuts and Jobs Act | 17.0 | 1.1 | (78.2) | (60.1) | (1.21) | ||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 183.1 | $ | 22.9 | $ | (22.3) | $ | 183.7 | $ | 3.72 | |||||||||
(1) Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the related effective date. |
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation, which includes reductions for cumulative preferred dividends and participating shares. |
Contribution Margin and Reconciliation to GAAP | |||||||||||||||||||
(In Millions) | Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | ||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||
Operating (Loss) Income [GAAP] | $ | (23.8) | $ | 0.9 | $ | (2.7) | $ | — | $ | (25.6) | |||||||||
Operation and maintenance expenses | 111.4 | 3.2 | 9.3 | (2.7) | 121.2 | ||||||||||||||
Depreciation and amortization | 46.2 | 0.1 | 0.5 | — | 46.8 | ||||||||||||||
Taxes, other than income taxes | 25.4 | 0.2 | 0.3 | — | 25.9 | ||||||||||||||
Less: Gross receipts tax expense | (11.6) | (0.1) | — | — | (11.7) | ||||||||||||||
Contribution Margin [Non-GAAP] | 147.6 | 4.3 | 7.4 | (2.7) | 156.6 | ||||||||||||||
Natural and propane gas costs | 48.0 | 9.7 | (0.2) | (0.2) | 57.3 | ||||||||||||||
Gross receipts tax expense | 11.6 | 0.1 | — | — | 11.7 | ||||||||||||||
Operating Revenues | $ | 207.2 | $ | 14.1 | $ | 7.2 | $ | (2.9) | $ | 225.6 | |||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||
Operating (Loss) Income [GAAP] | $ | (16.6) | $ | 6.1 | $ | (8.4) | $ | — | $ | (18.9) | |||||||||
Operation and maintenance expenses | 109.9 | 2.3 | 12.5 | (2.6) | 122.1 | ||||||||||||||
Depreciation and amortization | 45.1 | — | 0.4 | — | 45.5 | ||||||||||||||
Taxes, other than income taxes | 24.3 | — | 0.4 | — | 24.7 | ||||||||||||||
Less: Gross receipts tax expense | (11.3) | — | — | — | (11.3) | ||||||||||||||
Contribution Margin [Non-GAAP] | 151.4 | 8.4 | 4.9 | (2.6) | 162.1 | ||||||||||||||
Natural and propane gas costs | 58.1 | 7.9 | 0.1 | (0.3) | 65.8 | ||||||||||||||
Gross receipts tax expense | 11.3 | — | — | — | 11.3 | ||||||||||||||
Operating Revenues | $ | 220.8 | $ | 16.3 | $ | 5.0 | $ | (2.9) | $ | 239.2 | |||||||||
Year Ended September 30, 2019 | |||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 293.4 | $ | 23.2 | $ | (14.3) | $ | — | $ | 302.3 | |||||||||
Operation and maintenance expenses | 441.7 | 11.7 | 31.6 | (10.9) | 474.1 | ||||||||||||||
Depreciation and amortization | 179.4 | 0.1 | 2.2 | — | 181.7 | ||||||||||||||
Taxes, other than income taxes | 151.7 | 0.8 | 1.5 | — | 154.0 | ||||||||||||||
Less: Gross receipts tax expense | (99.1) | (0.2) | — | — | (99.3) | ||||||||||||||
Contribution Margin [Non-GAAP] | 967.1 | 35.6 | 21.0 | (10.9) | 1,012.8 | ||||||||||||||
Natural and propane gas costs | 794.6 | 47.9 | 0.5 | (2.7) | 840.3 | ||||||||||||||
Gross receipts tax expense | 99.1 | 0.2 | — | — | 99.3 | ||||||||||||||
Operating Revenues | $ | 1,860.8 | $ | 83.7 | $ | 21.5 | $ | (13.6) | $ | 1,952.4 | |||||||||
Year Ended September 30, 2018 | |||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 276.6 | $ | 33.8 | $ | (16.3) | $ | — | $ | 294.1 | |||||||||
Operation and maintenance expenses | 449.7 | 7.4 | 30.3 | (10.1) | 477.3 | ||||||||||||||
Depreciation and amortization | 167.0 | — | 1.4 | — | 168.4 | ||||||||||||||
Taxes, other than income taxes | 152.5 | 0.2 | 0.8 | — | 153.5 | ||||||||||||||
Less: Gross receipts tax expense | (98.3) | (0.1) | — | — | (98.4) | ||||||||||||||
Contribution Margin [Non-GAAP] | 947.5 | 41.3 | 16.2 | (10.1) | 994.9 | ||||||||||||||
Natural and propane gas costs | 842.6 | 30.2 | 0.3 | (1.4) | 871.7 | ||||||||||||||
Gross receipts tax expense | 98.3 | 0.1 | — | — | 98.4 | ||||||||||||||
Operating Revenues | $ | 1,888.4 | $ | 71.6 | $ | 16.5 | $ | (11.5) | $ | 1,965.0 | |||||||||
Spire Storage EBITDA1 and Reconciliation to GAAP | |||||||
Period ended September 30, 2019 | |||||||
(Millions) | Quarter | Year | |||||
Net Loss [GAAP] | $ | (2.6) | $ | (15.4) | |||
Add back: | |||||||
Interest charges | 1.5 | 4.9 | |||||
Income tax benefit | (1.0) | (4.4) | |||||
Depreciation & amortization | 0.5 | 1.7 | |||||
EBITDA [non-GAAP] | $ | (1.6) | $ | (13.2) | |||
1 EBITDA is earnings before interest, income taxes, depreciation and amortization. | |||||||
Adjusted Long-Term Capitalization and Reconciliation to GAAP | |||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | ||||||||||||||||||||||
(Millions) | Equity2 | Debt | Total | Equity2 | Debt | Total | |||||||||||||||||
Capitalization | $ | 2,546.4 | $ | 2,082.6 | $ | 4,629.0 | $ | 2,263.3 | $ | 1,900.1 | $ | 4,163.4 | |||||||||||
Current portion of long-term debt | — | 40.0 | 40.0 | — | 175.5 | 175.5 | |||||||||||||||||
Long-term Capitalization [GAAP] | 2,546.4 | 2,122.6 | 4,669.0 | 2,263.3 | 2,075.6 | 4,338.9 | |||||||||||||||||
Reclassify 50% of preferred stock | (121.0) | 121.0 | — | — | — | — | |||||||||||||||||
Adjusted Long-term Capitalization [non-GAAP] | $ | 2,425.4 | $ | 2,243.6 | $ | 4,669.0 | $ | 2,263.3 | $ | 2,075.6 | $ | 4,338.9 | |||||||||||
% of adjusted long-term capitalization | 51.9% | 48.1% | 100.0% | 52.2% | 47.8% | 100.0% | |||||||||||||||||
2 Includes temporary equity of $3.4 and $7.9 as of September 30, 2019 and 2018, respectively. | |||||||||||||||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-reports-growth-in-fiscal-2019-earnings-300964965.html
SOURCE Spire Inc.
Article Date
11/25/2019Spire upgrades more than 2,500 miles of Missouri natural gas pipelines and keeps customer bills lower than 15 years ago
Source: PR Newswire
ST. LOUIS, Nov. 25, 2019 /PRNewswire/ -- Today, Spire released new data regarding progress on pipeline upgrades across Missouri. Over the last 15 years, Spire has spent more than $1 billion to replace more than 2,500 miles of aging pipeline across the state. And while that sounds like a big price tag, Spire has been able to do this while keeping customer bills lower than they were 15 years ago.
"Thanks to an abundant, domestic supply of natural gas, the price for natural gas has never been more affordable. While the price for the commodity is low, we've been doubling down on replacing infrastructure to make sure that our customers have a modern system to deliver natural gas to their homes and businesses safely, efficiently and with reduced emissions. And we've done it in a way that balances the total cost for customers. Today, Missouri customer bills are nearly 20 percent less than they were 15 years ago—that's an average annual savings of $175 for each Missouri household. We're proud of being able to do this for our customers and communities," said Scott Carter, president of Spire Missouri.
Pipeline replacement accelerated thanks to Missouri ISRS legislation
Pipeline replacement has been accelerated in the last 15 years thanks to Missouri Infrastructure System Replacement Surcharge (ISRS) legislation enacted in 2003 that allows for incremental replacement costs to be recovered by utilities more quickly. The legislation serves to 1) address an emerging safety issue related to aging cast iron and bare steel pipes, 2) enhance Missouri Public Service Commission (MoPSC) oversight and transparency into replacement efforts, 3) reduce the regulatory cost of more frequent rate cases and 4) ensure that utility companies are able to attract the investor capital efficiently to fund these multi-million dollar efforts.
Carter explained, "The Missouri PSC has a longstanding program—which we wholeheartedly support—that accelerates replacement of cast iron and bare steel pipes. The ISRS statute was intended to promote safety-related investments and it's been working effectively for more than a decade here in Missouri. And, while we've been able to upgrade aging pipes—some of which had been in ground since the 1800s—we're also making a significant positive environmental impact by reducing emissions from leaks in the system. It's a win-win-win, for our customers, communities and the environment."
Missouri Court issued rulings that challenge MoPSC authority on ISRS
On Nov. 19, 2019, the Missouri Western District Court of Appeals issued rulings that determined that certain Spire expenditures approved by the MoPSC in 2016, 2017 and 2018 were not eligible for ISRS recovery, and called for refund of amounts totaling up to $12 million, or about $10 for the average Missouri homeowner.
"The Court's decision regarding the 2018 ISRS funding is especially troubling. The Court ruled on something that wasn't in question by the Missouri PSC, the U.S. Department of Transportation, the National Association of Regulatory Utility Commissioners or any US state that has, or has had, cast iron and bare steel pipelines. The Missouri Western District Court appears to have second-guessed the expertise of the Missouri PSC," said Carter.
Carter continued, "The court does not say that we shouldn't be making these upgrades. They are saying that to fund it through the ISRS mechanism—instead of through recovery of investment in a rate case which can take years—we must prove something more to verify that the pipes are 'worn out or deteriorated.' But, experts know that cast iron was put in the ground from the 1800s to the 1950s and that bare steel was used in the 1940s and 1950s before innovation and technology allowed for safer, smarter and more efficient options."
Craig Hoeferlin, Spire's vice president of operations services, including engineering and safety, explained, "Modernizing infrastructure dovetails with the deterioration of existing pipes, but it's much more than that. We have a detailed and voluminous Distribution Integrity Management Plan [DIMP]—that is the cornerstone of industry practice and widely accepted by Missouri and fellow regulatory jurisdictions—to properly and safely guide pipeline replacement. It takes into account a pipeline's history, geography, and overall risk profile. In addition, we examine the ability for pipes to work safely with today's higher pressure delivery systems." Craig continued, "This ruling—if upheld—could take the ISRS statute from a mechanism intended to expedite cost-effective, safety-related investments into one that significantly hinders such investments. That's not good for our customers or communities."
Procedural next steps in response to the Missouri Court's ruling
Spire will file appeals, so the Court's orders will not become effective until the appeal process is exhausted. Should the Court's decision ultimately stand, the Court will remand these matters to the MoPSC who will define its process to respond to the decision and determine the appropriate refund, if any, at a later date.
Carter added, "Our customers and communities deserve the very best from us. We are responsible for providing energy safely so that families can cook Thanksgiving dinner and stay warm when it's cold outside, without worrying about the safety, efficiency and sustainability of the complex and intricate infrastructure that delivers natural gas to them. We made a promise to our customers that we'd take good care of them, and we intend to keep that promise. On behalf of our employees, customers and communities, we strongly disagree with the court rulings and plan to vigorously defend the timely and efficient modernization of infrastructure."
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-upgrades-more-than-2-500-miles-of-missouri-natural-gas-pipelines-and-keeps-customer-bills-lower-than-15-years-ago-300964963.html
SOURCE Spire Inc.
Article Date
11/25/2019Spire Reschedules Earnings Conference Call for Nov. 26
Source: PR Newswire
ST. LOUIS, Nov. 21, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Tuesday, November 26, to discuss fiscal 2019 fourth quarter and full-year financial results. We will issue our earnings news release after market close on November 25, and it will be available at Investors.Spireenergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Tuesday, November 26 | |
8 a.m. CT (9 a.m. ET) | ||
Phone Numbers: | U.S. and Canada: | 844-824-3832 |
International: | 412-317-5142 | |
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on November 26, 2019 until January 6, 2020 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10136509. A replay of the webcast will be available on our website at Investors.Spireenergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at www.spireenergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-reschedules-earnings-conference-call-for-nov-26-300963224.html
SOURCE Spire Inc.
Article Date
11/21/201911/20/2019 - Spire to Postpone Its Earnings Conference Call
Spire to Postpone Its Earnings Conference Call
Source: PR Newswire
ST. LOUIS, Nov. 19, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) is postponing its earnings conference call scheduled for Wednesday, November 20, 2019, in order to allow time for the company to assess the impact of adverse court rulings from the Missouri Western District Court of Appeals received earlier today.
The rulings denied Spire Missouri's appeals of its Infrastructure System Replacement Surcharge and ordered refunds of certain amounts deemed not recoverable since 2016.
We strongly disagree with the rulings and are evaluating our legal and regulatory options in response. We are in the process of determining the impact of the court rulings and the impacts, if any, on disclosures and financial results for our just completed fiscal year 2019. The company plans to reschedule its earnings call to a later date after its assessment and analysis are completed.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-postpone-its-earnings-conference-call-300961455.html
SOURCE Spire Inc.
Article Date
11/20/2019Women's Forum of New York Recognized Spire for Advancing Gender Equity in the Boardroom
Source: PR Newswire
ST. LOUIS, Nov. 7, 2019 /PRNewswire/ -- The Women's Forum of New York recognized Spire at its Breakfast of Corporate Champions on Nov. 7, 2019, for achieving at least 30 percent female board representation. This benchmark biennial event brings together more than 600 thought leaders and change-makers including CEOs, Board Directors and government officials in support of one shared goal – achieving 50/50 gender parity in the boardroom by 2025.
"We salute Spire for actively enhancing its boardroom diversity and increasing its percentage of woman-occupied board seats to 44 percent," said Janice Ellig, CEO of the Ellig Group and Chair and Founder of the Breakfast of Corporate Champions.
With a corporate board comprised of 44 percent women, Spire exceeds the national average for female-held board seats, which is currently 23.4 percent.
"One of our three Spire values is inclusion," said Sitherwood. "We know that in order to deliver on our mission to advance communities and enrich lives, we need to embrace, encourage and value every point of view. Having women on our board who bring their experiences and unique perspectives to the table helps us continuously find new and better ways to serve our customers and communities.
"Spire is part of a growing number of forward-thinking companies, which are raising the bar and accelerating the U.S. towards the goal of gender parity by 2025," Ellig said.
To learn more about Spire, visit www.SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. Learn more at SpireEnergy.com.
About the Women's Forum of New York
The Women's Forum of New York is the city's premier organization of women leaders. The invitation-only membership of more than 500 women represents the highest levels of achievement across all professional sectors from finance to fine arts. The organization is dedicated to the advancement of women's leadership through programs which enrich members' lives both personally and professionally, through The Education Fund, which enables talented women whose potential has been disrupted by extreme adversity to resume their education, and through the Corporate Board Initiative, which extends and expands the contribution of women leaders through corporate board participation. Founded in 1974, the Women's Forum of New York is the flagship of the International Women's Forum, a global organization of over 6,500 outstanding women leaders in over 74 Forums around the world.
Media Contact:
Raegan Johnson
314-575-4111
Raegan.Johnson@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/womens-forum-of-new-york-recognized-spire-for-advancing-gender-equity-in-the-boardroom-300954297.html
SOURCE Spire Inc.
Article Date
11/7/2019Spire to Host Earnings Conference Call on November 20
Source: PR Newswire
ST. LOUIS, Oct. 30, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, November 20, to discuss our fiscal 2019 fourth quarter and full-year financial results. We will issue our earnings news release before the market opens that day, and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Wednesday, November 20 | |
8 a.m. CT (9 a.m. ET) | ||
Phone Numbers: | U.S. and Canada: | 844-824-3832 |
International: | 412-317-5142 | |
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on November 20, 2019 until January 6, 2020 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10136509. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovating and advancing technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-november-20-300948672.html
SOURCE Spire Inc.
Article Date
10/30/2019Spire Encourages People to Apply for Energy Assistance This Winter
Source: PR Newswire
ST. LOUIS, Oct. 24, 2019 /PRNewswire/ -- Valerie lost her job of 24 years in November 2018, right before the season's coldest temperatures hit. "When things happen, you wonder how you're going to survive," she said. "I have a daughter, and I knew my bills needed to be paid."
Then, Valerie said a miracle happened. She discovered the Low Income Home Energy Assistance Program (LIHEAP). LIHEAP provides federal funding to assist families with maintaining or restoring heating services.
Spire has been working with LIHEAP agencies to make more people aware that help is available.
More than 830,000 people in Missouri alone qualify for energy assistance based on their income. Yet in some areas, applications are only trickling in. Individuals can apply for funding through their local LIHEAP agency. If a person's need exceeds the assistance LIHEAP provides, additional funding is accessible through Spire's DollarHelp Program.
Since 1982, DollarHelp has made it possible for Spire customers to donate $1 each month to help other customers in need. Individuals can contribute online or by checking the box on their Spire bills. In 2018, DollarHelp received more than $1,100,000 in Missouri and $290,000 in Alabama and Mississippi from donations and company matches. LIHEAP agencies distribute DollarHelp funds.
"DollarHelp funds assist hundreds of families with maintaining their gas service," said Connie Sanchez, Spire community outreach specialist. "This program helps people meet basic needs to live safely and comfortably in their homes during the cold weather months."
In addition to DollarHelp, Spire partners with agencies to offer services and programs for income-qualified residents to maintain their gas service year-round, including weatherization services and the Extra Notification Program for elderly or disabled customers.
"We proactively call customers we think may qualify," said Julie Trachsel, Spire manager of community services. "Most customers are very surprised by our outreach efforts, but Spire is committed to making sure people are getting the help they need."
Spire hosts around 80 events each year to help people sign up for LIHEAP services.
For more information about LIHEAP energy assistance in your area, contact 855-FSD-INFO (855-373-4636). To learn more about Spire, visit www.SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovating and advancing technology. Learn more at SpireEnergy.com.
Media Contact:
Raegan Johnson
314-575-4111
Raegan.Johnson@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-encourages-people-to-apply-for-energy-assistance-this-winter-300944947.html
SOURCE Spire Inc.
Article Date
10/24/201910/16/2019 - Scott Smith Joins Spire's Leadership Team
Scott Smith Joins Spire's Leadership Team
Source: PR Newswire
ST. LOUIS, Oct. 15, 2019 /PRNewswire/ -- Scott Smith recently joined Spire as president of Spire Storage and Spire STL Pipeline. In this role, he leads the company's operations and commercialization of natural gas storage facilities in Wyoming and pipelines serving Spire Missouri East and other midwestern U.S. markets.
Smith brings more than 30 years of energy industry experience to Spire. Most recently, he served as president & CEO of Midstream Energy Holdings, which develops and operates midstream assets in North America. He's also held leadership positions with Black & Veatch, Lukens Energy Group, Southern Company and Atlantic Richfield Company (ARCO).
"Spire has a long history of providing safe and reliable energy to the communities it serves," Smith said. "At the same time, the company is growing, innovating and expanding its midstream services—all to find new and improved ways of connecting people and energy. That balance of an established, yet transformative company, is what excites me about joining the Spire team."
Smith is based out of Spire's Houston office.
He has served in various board and leadership roles with the Southern Gas Association, West University Little League, and the Houston Arts Fund. He and his wife, Katie, have two children.
To learn more about Spire, visit www.SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovating and advancing technology. Learn more at SpireEnergy.com.
Media Contact:
Raegan Johnson
314-575-4111
Raegan.Johnson@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/scott-smith-joins-spires-leadership-team-300939220.html
SOURCE Spire Inc.
Article Date
10/16/2019Spire to Host Earnings Conference Call on July 30
Source: PR Newswire
ST. LOUIS, July 10, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Tuesday, July 30, to discuss our fiscal 2019 third quarter financial results. We will issue our earnings news release before the market opens that day and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Tuesday, July 30 | ||
8 a.m. CT (9 a.m. ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on July 30 until August 30 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10132808. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovating and advancing technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-july-30-300882638.html
SOURCE Spire Inc.
Article Date
7/10/20195/20/2019 - Spire to Present at AGA Financial Forum
Spire to Present at AGA Financial Forum
Source: PR Newswire
ST. LOUIS, May 20, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) today announced that members of its management team will present at the 2019 American Gas Association (AGA) Financial Forum on Wednesday, May 22, 2019, at 1:00 p.m. Eastern time. Members of Spire's executive leadership team will provide an update on the company's growth initiatives as well as recent performance and developments.
A live webcast of the presentation, along with presentation materials, can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. The presentation will be archived and will be available for replay on our website.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-present-at-aga-financial-forum-300853381.html
SOURCE Spire Inc.
Article Date
5/20/20195/1/2019 - Spire Reports Second Quarter Results
Spire Reports Second Quarter Results
Source: PR Newswire
ST. LOUIS, May 1, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported operating results for its fiscal 2019 second quarter ended March 31, 2019. Highlights include:
"We delivered another strong quarter, driven by growth of our gas utilities and continued solid performance by Spire Marketing during the heart of the winter heating season. Our results reflect continued investment in infrastructure upgrades, organic growth and technology, as well as the growth and development of our gas-related businesses," said Suzanne Sitherwood, president and chief executive officer of Spire. "We are driving improved operating and financial performance to deliver earnings per share growth over the longer term while enhancing our ability to serve more customers even better."
Second Quarter Results | Three Months Ended March 31, | |||||||||||||||
(Millions) | (Per Diluted Share) | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net Economic Earnings (Loss)* by Segment | ||||||||||||||||
Gas Utility | $ | 146.7 | $ | 131.7 | $ | 2.88 | $ | 2.72 | ||||||||
Gas Marketing | 6.2 | 10.2 | 0.12 | 0.21 | ||||||||||||
Other | (5.0) | (4.7) | (0.10) | (0.10) | ||||||||||||
Total | $ | 147.9 | $ | 137.2 | $ | 2.90 | $ | 2.83 | ||||||||
Missouri regulatory adjustments, pre-tax | — | (30.6) | — | (0.63) | ||||||||||||
Fair value adjustments, pre-tax | 9.1 | (11.6) | 0.18 | (0.23) | ||||||||||||
Acquisition-related costs, pre-tax | — | (2.0) | — | (0.04) | ||||||||||||
Income tax effect of pre-tax adjustments | (2.4) | 11.1 | (0.04) | 0.22 | ||||||||||||
Effect of the Tax Cuts and Jobs Act | — | (5.9) | — | (0.12) | ||||||||||||
Net Income | $ | 154.6 | $ | 98.2 | $ | 3.04 | $ | 2.03 | ||||||||
Weighted Average Diluted Shares Outstanding | 50.8 | 48.4 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
Consolidated net income for the three months ended March 31, the second quarter of our fiscal year, was $154.6 million ($3.04 per diluted share), up from $98.2 million ($2.03 per share) a year ago. The results for the prior-year period include significant, largely non-cash write-offs of assets and expenses resulting from our Missouri rate cases in 2018 and the impact of tax reform under the Tax Cuts and Jobs Act, as shown below:
(Millions) | ||||||||||||
Pre-tax | After tax | Per share | ||||||||||
Certain pension contributions (prior to 1997) | $ | 28.8 | $ | 17.7 | ||||||||
A portion of incentive compensation expense from January 2016 forward | 6.9 | 4.2 | ||||||||||
The net book value of property sold in 2014 | 1.8 | 1.1 | ||||||||||
Rate case expenses | 0.9 | 0.6 | ||||||||||
Subtotal | $ | 38.4 | $ | 23.6 | $ | 0.49 | ||||||
Net economic earnings (NEE) for the second quarter of fiscal 2019 was $147.9 million ($2.90 per share), up from $137.2 million ($2.83 per share) last year, reflecting improved Gas Utility results and continued solid performance by Gas Marketing. Current year per share amounts were impacted by 2.3 million shares that were issued in May 2018.
NEE excludes from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these impacts included the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-offs from our 2018 Missouri rate proceedings, as noted above.
Gas Utility
The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. Second quarter fiscal 2019 NEE was $146.7 million, up from $131.7 million in the prior year, the timing benefit of a change in rate design at our Missouri utilities resulting from the 2018 rate cases, as well as earnings growth across our utilities.
Contribution margin increased $22.6 million, reflecting the Missouri rate design change that lowers the fixed monthly charge and increases the volumetric component during the winter heating season when usage is highest, thereby shifting margin into the first and second quarters of our fiscal year. This timing benefit of $31.4 million was partially offset by a $11.8 million reduction in customer rates from lower income taxes as a result of tax reform, which is largely offset by lower income tax expense such that there is minimal impact to earnings.
Operation and maintenance (O&M) expenses of $109.5 million for the second quarter were down $25.8 million compared to the prior-year period which included the write-off of assets and expenses disallowed in our Missouri rate cases totaling $38.4 million. Current year expenses reflect a $9.6 million benefit from a quarter-over-quarter reclassification of benefit costs to below the operating income line (no impact on net income). Excluding these adjustments, O&M increased $3.0 million due to higher employee benefits and energy efficiency costs reset in our Missouri rate cases totaling $4.0 million, partially offset by a reduction in other costs. Depreciation and amortization expenses increased by $3.3 million from last year, reflecting higher capital investment.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing services across the central and southern United States. Second quarter NEE was $6.2 million, down from $10.2 million in the prior year that included the earnings benefits from unusually favorable weather-driven market conditions. The solid performance in the current-year period reflects the benefit of the geographic expansion of the business that created additional opportunities to optimize our supply, transportation and storage portfolio, more than offset by less market opportunities this year.
Other
Other gas-related operations and corporate costs on a NEE basis for the second quarter were $5.0 million in fiscal 2019, up slightly from $4.7 million a year ago. Current year results include an operating loss for Spire Storage (excluded from NEE in the prior year) and higher interest expense due to an increase in short-term rates, both of which were largely offset by higher non-cash Allowance for Funds Used During Construction (AFUDC) income for Spire STL Pipeline.
Year-to-Date Results | For the Six Months Ended March 31, | |||||||||||||||
(Millions) | (Per Diluted Share) | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net Economic Earnings (Loss)* by Segment | ||||||||||||||||
Gas Utility | $ | 213.1 | $ | 191.2 | $ | 4.19 | $ | 3.94 | ||||||||
Gas Marketing | 14.5 | 13.8 | 0.28 | 0.29 | ||||||||||||
Other | (13.8) | (9.9) | (0.27) | (0.21) | ||||||||||||
Total | $ | 213.8 | $ | 195.1 | $ | 4.20 | $ | 4.02 | ||||||||
Missouri regulatory adjustments, pre-tax | — | (30.6) | — | (0.63) | ||||||||||||
Fair value adjustments, pre-tax | 11.3 | (12.3) | 0.22 | (0.25) | ||||||||||||
Acquisition-related costs, pre-tax | (0.4) | (3.7) | (0.01) | (0.08) | ||||||||||||
Income tax effect of pre-tax adjustments | (2.8) | 11.7 | (0.05) | 0.24 | ||||||||||||
Effect of the Tax Cuts and Jobs Act | — | 54.0 | — | 1.12 | ||||||||||||
Net Income | $ | 221.9 | $ | 214.2 | $ | 4.36 | $ | 4.42 | ||||||||
Weighted Average Diluted Shares Outstanding | 50.8 | 48.4 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For the first six months of fiscal 2019, we reported consolidated net income of $221.9 million ($4.36 per diluted share) compared to $214.2 million ($4.42 per share) for the prior year. The prior-year results include rate case-related write-offs and the impact of tax reform as noted earlier and shown below:
(Millions) | ||||||||||||
Pre-tax | After tax | Per share | ||||||||||
Certain pension contributions (prior to 1997) | $ | 28.8 | $ | 17.7 | ||||||||
A portion of incentive compensation expense from January 2016 forward | 6.9 | 4.2 | ||||||||||
The net book value of property sold in 2014 | 1.8 | 1.1 | ||||||||||
Rate case expenses | 0.9 | 0.6 | ||||||||||
Subtotal | $ | 38.4 | $ | 23.6 | $ | 0.49 | ||||||
Effect of the Tax Cuts and Jobs Act | (50.0) | (1.03) | ||||||||||
Total | $ | (26.4) | $ | (0.54) | ||||||||
NEE for the six months ended March 31, 2019 was $213.8 million ($4.20 per share), up from $195.1 million ($4.02 per share) a year ago. The increase in NEE reflects higher Gas Utility earnings, partially offset by higher other costs.
Gas Utility
For the first six months of fiscal 2019, the Gas Utility segment reported NEE of $213.1 million, up from $191.2 million a year ago, reflecting a higher contribution margin and lower operating expenses.
Year-to-date segment contribution margin increased by $24.6 million, reflecting the rate design change at the Missouri utilities that resulted in $36.6 million higher margins during the winter heating season, as described earlier. These benefits were partially offset by a reduction in Missouri customer rates of $21.4 million to reflect the lower federal income taxes resulting from tax reform. The margin impact of lower rates due to tax reform is offset by lower income tax expense, resulting in minimal impact on earnings. Margins benefitted a combined $8.8 million from higher gas usage and modest customer growth across our utilities as well as increased off-system sales and capacity release in Missouri.
O&M expenses decreased by $22.3 million compared to the prior-year period, reflecting the $38.4 million write-off of assets and expenses disallowed in our Missouri rate cases recorded in the prior-year period, as well as a $9.9 million reclassification of benefit costs, both noted earlier. Excluding these adjustments, O&M expenses were higher by $6.2 million largely due to higher employee benefits and energy efficiency costs reset in our Missouri rate cases totaling $8.0 million. Depreciation and amortization rose by $6.7 million reflecting increased capital investment across our utilities.
Gas Marketing
NEE, which excludes mark-to-market and fair value adjustments, was $14.5 million, up from $13.8 million in the prior year. The solid current year performance reflects the benefit of geographic expansion of the business offset by lower market opportunities this year.
Other
On an NEE basis, year-to-date other gas-related operations and corporate costs were $13.8 million, up from $9.9 million in the prior-year period. The higher costs reflect a loss from Spire Storage (excluded from NEE in the prior-year period) and higher corporate interest costs, partially offset by increased AFUDC income from Spire STL Pipeline.
Balance Sheets and Cash Flows
We maintain a strong capital structure with ample liquidity. At March 31, 2019, our long-term capitalization was 51.6 percent equity, compared to 49.8 percent equity a year ago.
Net cash provided by operating activities was $297.5 million for the six months ended March 31, 2019, compared to $309.6 million for the same period a year ago. The decrease was largely driven by fluctuations in working capital items.
Capital expenditures for the first six months of fiscal 2019 were $376.8 million, up from $215.8 million in the prior year. This increase reflects higher investment in infrastructure upgrades, support of customer growth and new business development initiatives, as well as construction of Spire STL Pipeline and development of Spire Storage.
Short-term borrowings outstanding at March 31, 2019 increased to $512.0 million from $391.7 million a year ago due to the higher capital expenditures and working capital fluctuations noted earlier. These borrowing levels reflect the highly seasonal nature of our working capital needs, which are higher during the winter heating season. We retain significant capacity in our $975 million revolving credit facility and related commercial paper program to meet our liquidity needs.
For additional details on Spire's results through the second quarter of fiscal 2019, please see the accompanying unaudited Condensed Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
Pipelines and Storage
We continue to develop our gas-related businesses as part of our long-term growth strategy, including Spire STL Pipeline and Spire Storage.
Spire STL Pipeline
Construction of Spire STL Pipeline began in December and is now well underway including substantial completion of river bores as well as preparing the route and beginning the installation of pipe and ancillary facilities. The 65-mile natural gas supply pipeline will provide Spire Missouri East with access to lower-cost shale gas from the Marcellus and Utica producing regions. It will also enhance the reliability and diversity of our physical transportation portfolio.
Based on the construction progress to date, we expect the pipeline to be in service by the end of our fiscal year. Reflecting actual expenditures to date and the remaining construction work to be completed, we expect the total project cost to be $230 million – $240 million.
Spire Storage
We continue to refine our development plan for Spire Storage and the integration of our two adjacent storage facilities in Wyoming. Our efforts follow Federal Energy Regulatory Commission (FERC) approval in January to combine the operations of the facilities into one FERC certificate with a market-based tariff. Spire Storage is strategically located near the Opal hub and interconnects with five interstate pipelines.
Our development plan includes investments to increase injection and withdrawal capabilities, improve interconnection with interstate pipelines, and expand working gas capacity. It is designed to allow Spire Storage to take advantage of expanded opportunities by better serving customers and markets in the Rockies and western United States.
Missouri Regulatory Update
On February 25, 2019, Spire Missouri updated its request with the Missouri Public Service Commission (MoPSC), originally filed in January, to increase Infrastructure System Replacement Surcharge (ISRS) revenues by $18.0 million. The ISRS mechanism allows for more timely recovery of investments in infrastructure upgrades that improve the integrity and safety of our distribution system.
The request includes $3.2 million of recovery related to replacement of certain pipeline materials that was not approved as part of Spire Missouri's June 2018 ISRS filing. With that filing, the MoPSC instituted new information requirements which Spire Missouri included in its January filing. The staff of the MoPSC has recommended that the $3.2 million not be recovered via ISRS in the current request. By rule, new rates are to be effective by May 14, 2019, and as a result, we expect an order to be issued shortly.
Dividends
The Spire board of directors declared a quarterly common stock dividend of $0.5925 per share, payable July 2, 2019, to shareholders of record on June 11, 2019. We have continuously paid a cash dividend since 1946, with 2019 marking the 16th consecutive year of increasing dividends on an annualized basis.
Earnings Guidance and Outlook
We affirm our fiscal 2019 NEE guidance range of $3.70 – $3.80 per diluted share. Our longer-term NEE per share growth target remains 4 – 7 percent.
Our capital expenditures forecast for fiscal 2019 is increased to $740 million reflecting increases in investment across our businesses including for construction of Spire STL Pipeline, the investment in the development of Spire Storage, and higher spend for our gas utilities focused on infrastructure upgrades and new business. Our five-year capital spend outlook for the fiscal years 2019 – 2023 is $2.8 billion, an increase from $2.6 billion for 2018 – 2022.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2019 second quarter financial results. To access the call, please dial the applicable number approximately 5 – 10 minutes prior to the start time.
Date and Time: | Wednesday, May 1 | ||
9 a.m. CT (10 a.m. ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 | ||
The call will also be webcast and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available at 11 a.m. CT (Noon ET) on May 1 until June 3 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10130233.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's annual (Form 10-K) and quarterly (Form 10-Q) filings with the Securities and Exchange Commission.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these items included the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-off of certain long-standing assets as a result of disallowances in our 2018 Missouri rate proceedings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Condensed Consolidated Statements of Income – Unaudited | ||||||||||||||||
(In Millions, except per share amounts) | Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating Revenues: | ||||||||||||||||
Gas Utility | $ | 776.7 | $ | 790.6 | $ | 1,350.5 | $ | 1,332.5 | ||||||||
Gas Marketing and other | 26.8 | 22.8 | 55.0 | 42.7 | ||||||||||||
Total Operating Revenues | 803.5 | 813.4 | 1,405.5 | 1,375.2 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Gas Utility | ||||||||||||||||
Natural and propane gas | 337.4 | 383.7 | 589.1 | 624.5 | ||||||||||||
Operation and maintenance | 109.5 | 135.3 | 212.0 | 234.3 | ||||||||||||
Depreciation and amortization | 44.4 | 41.1 | 88.1 | 81.4 | ||||||||||||
Taxes, other than income taxes | 57.4 | 58.0 | 96.6 | 94.7 | ||||||||||||
Total Gas Utility Operating Expenses | 548.7 | 618.1 | 985.8 | 1,034.9 | ||||||||||||
Gas Marketing and other | 45.3 | 45.2 | 105.1 | 86.2 | ||||||||||||
Total Operating Expenses | 594.0 | 663.3 | 1,090.9 | 1,121.1 | ||||||||||||
Operating Income | 209.5 | 150.1 | 314.6 | 254.1 | ||||||||||||
Other Income (Expense), Net | 6.1 | (7.6) | 8.9 | (4.3) | ||||||||||||
Interest Charges: | ||||||||||||||||
Interest on long-term debt | 21.5 | 21.0 | 41.9 | 41.7 | ||||||||||||
Other interest charges | 6.1 | 4.4 | 11.6 | 8.1 | ||||||||||||
Total Interest Charges | 27.6 | 25.4 | 53.5 | 49.8 | ||||||||||||
Income Before Income Taxes | 188.0 | 117.1 | 270.0 | 200.0 | ||||||||||||
Income Tax Expense (Benefit) | 33.4 | 18.9 | 48.1 | (14.2) | ||||||||||||
Net Income | $ | 154.6 | $ | 98.2 | $ | 221.9 | $ | 214.2 | ||||||||
Weighted Average Number of Shares Outstanding: | ||||||||||||||||
Basic | 50.6 | 48.2 | 50.6 | 48.2 | ||||||||||||
Diluted | 50.8 | 48.4 | 50.8 | 48.4 | ||||||||||||
Basic Earnings Per Share | $ | 3.05 | $ | 2.03 | $ | 4.37 | $ | 4.43 | ||||||||
Diluted Earnings Per Share | $ | 3.04 | $ | 2.03 | $ | 4.36 | $ | 4.42 | ||||||||
Dividends Declared Per Share | $ | 0.5925 | $ | 0.5625 | $ | 1.1850 | $ | 1.1250 | ||||||||
Condensed Consolidated Balance Sheets – Unaudited | ||||||||||||
(In Millions) | March 31, | September 30, | March 31, | |||||||||
2019 | 2018 | 2018 | ||||||||||
ASSETS | ||||||||||||
Utility Plant | $ | 5,856.8 | $ | 5,653.3 | $ | 5,403.4 | ||||||
Less: Accumulated depreciation and amortization | 1,738.5 | 1,682.8 | 1,645.0 | |||||||||
Net Utility Plant | 4,118.3 | 3,970.5 | 3,758.4 | |||||||||
Non-utility Property | 329.1 | 174.5 | 116.9 | |||||||||
Goodwill | 1,171.6 | 1,171.6 | 1,171.6 | |||||||||
Other Investments | 68.4 | 68.7 | 66.4 | |||||||||
Other Property and Investments | 1,569.1 | 1,414.8 | 1,354.9 | |||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | 11.1 | 4.4 | 17.8 | |||||||||
Accounts receivable, net | 487.0 | 296.8 | 388.0 | |||||||||
Inventories | 126.3 | 210.3 | 128.5 | |||||||||
Other | 169.2 | 148.1 | 184.0 | |||||||||
Total Current Assets | 793.6 | 659.6 | 718.3 | |||||||||
Regulatory Assets and Other Deferred Charges | 792.6 | 798.7 | 755.2 | |||||||||
Total Assets | $ | 7,273.6 | $ | 6,843.6 | $ | 6,586.8 | ||||||
CAPITALIZATION AND LIABILITIES | ||||||||||||
Capitalization: | ||||||||||||
Common stock and paid-in capital | $ | 1,536.3 | $ | 1,533.4 | $ | 1,375.7 | ||||||
Retained earnings | 877.5 | 715.6 | 773.7 | |||||||||
Accumulated other comprehensive (loss) income | (7.8) | 6.4 | 4.1 | |||||||||
Total Shareholders' Equity | 2,406.0 | 2,255.4 | 2,153.5 | |||||||||
Redeemable noncontrolling interest | — | 7.9 | 6.5 | |||||||||
Long-term debt (less current portion) | 2,041.9 | 1,900.1 | 2,073.9 | |||||||||
Total Capitalization | 4,447.9 | 4,163.4 | 4,233.9 | |||||||||
Current Liabilities: | ||||||||||||
Current portion of long-term debt | 215.0 | 175.5 | 105.5 | |||||||||
Notes payable | 512.0 | 553.6 | 391.7 | |||||||||
Accounts payable | 324.8 | 290.1 | 194.8 | |||||||||
Accrued liabilities and other | 284.9 | 302.5 | 236.0 | |||||||||
Total Current Liabilities | 1,336.7 | 1,321.7 | 928.0 | |||||||||
Deferred Credits and Other Liabilities: | ||||||||||||
Deferred income taxes | 490.2 | 435.8 | 465.6 | |||||||||
Pension and postretirement benefit costs | 178.3 | 180.2 | 233.4 | |||||||||
Asset retirement obligations | 325.5 | 321.1 | 302.8 | |||||||||
Regulatory liabilities | 431.3 | 354.6 | 353.1 | |||||||||
Other | 63.7 | 66.8 | 70.0 | |||||||||
Total Deferred Credits and Other Liabilities | 1,489.0 | 1,358.5 | 1,424.9 | |||||||||
Total Capitalization and Liabilities | $ | 7,273.6 | $ | 6,843.6 | $ | 6,586.8 | ||||||
Condensed Consolidated Statements of Cash Flows – Unaudited | ||||||||
(In Millions) | Six Months Ended March 31, | |||||||
2019 | 2018 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 221.9 | $ | 214.2 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 89.1 | 81.9 | ||||||
Deferred income taxes and investment tax credits | 45.5 | (15.2) | ||||||
Changes in assets and liabilities | (57.6) | (12.8) | ||||||
Other | (1.4) | 41.5 | ||||||
Net cash provided by operating activities | 297.5 | 309.6 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (376.8) | (215.8) | ||||||
Business acquisitions | (7.9) | (17.1) | ||||||
Other | (1.9) | (0.4) | ||||||
Net cash used in investing activities | (386.6) | (233.3) | ||||||
Financing Activities: | ||||||||
Issuance of long-term debt | 190.0 | 75.0 | ||||||
Repayment of long-term debt | (9.1) | — | ||||||
Repayment of short-term debt, net | (41.6) | (85.6) | ||||||
Issuance of common stock | 1.0 | 0.8 | ||||||
Dividends paid | (58.8) | (53.0) | ||||||
Other | (2.7) | (3.1) | ||||||
Net cash provided by (used in) financing activities | 78.8 | (65.9) | ||||||
Net (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash | (10.3) | 10.4 | ||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 21.4 | 7.4 | ||||||
Cash and Cash Equivalents at End of Period | $ | 11.1 | $ | 17.8 | ||||
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||
(In Millions, except per share amounts) | Gas Utility | Gas Marketing | Other | Total | Per Diluted Share (2) | |||||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 146.7 | $ | 12.9 | $ | (5.0) | $ | 154.6 | $ | 3.04 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized gain on energy-related derivatives | — | (9.1) | — | (9.1) | (0.18) | |||||||||||||||
Income tax effect of adjustments (1) | — | 2.4 | — | 2.4 | 0.04 | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 146.7 | $ | 6.2 | $ | (5.0) | $ | 147.9 | $ | 2.90 | ||||||||||
Diluted EPS [GAAP] | $ | 2.88 | $ | 0.26 | $ | (0.10) | $ | 3.04 | ||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | 2.88 | $ | 0.12 | $ | (0.10) | $ | 2.90 | ||||||||||||
Three Months Ended March 31, 2018 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 102.5 | $ | 0.3 | $ | (4.6) | $ | 98.2 | $ | 2.03 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Missouri regulatory adjustments | 30.6 | — | — | 30.6 | 0.63 | |||||||||||||||
Unrealized loss on energy-related derivatives | — | 11.8 | — | 11.8 | 0.24 | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.2) | — | (0.2) | (0.01) | |||||||||||||||
Acquisition, divestiture and restructuring activities | 0.2 | — | 1.8 | 2.0 | 0.04 | |||||||||||||||
Income tax effect of adjustments (1) | (7.6) | (3.0) | (0.5) | (11.1) | (0.22) | |||||||||||||||
Effect of the Tax Cuts and Jobs Act | 6.0 | 1.3 | (1.4) | 5.9 | 0.12 | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 131.7 | $ | 10.2 | $ | (4.7) | $ | 137.2 | $ | 2.83 | ||||||||||
Diluted EPS [GAAP] | $ | 2.12 | $ | 0.01 | $ | (0.10) | $ | 2.03 | ||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | 2.72 | $ | 0.21 | $ | (0.10) | $ | 2.83 | ||||||||||||
(1) Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the related effective date. |
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
(In Millions, except per share amounts) | Gas Utility | Gas Marketing | Other | Total | Per Diluted Share (2) | |||||||||||||||
Six Months Ended March 31, 2019 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 213.1 | $ | 22.9 | $ | (14.1) | $ | 221.9 | $ | 4.36 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized gain on energy-related derivatives | — | (11.3) | — | (11.3) | (0.22) | |||||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 0.4 | 0.4 | 0.01 | |||||||||||||||
Income tax effect of adjustments (1) | — | 2.9 | (0.1) | 2.8 | 0.05 | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 213.1 | $ | 14.5 | $ | (13.8) | $ | 213.8 | $ | 4.20 | ||||||||||
Diluted EPS [GAAP] | $ | 4.19 | $ | 0.45 | $ | (0.28) | $ | 4.36 | ||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | 4.19 | $ | 0.28 | $ | (0.27) | $ | 4.20 | ||||||||||||
Six Months Ended March 31, 2018 | ||||||||||||||||||||
Net Income [GAAP] | $ | 147.7 | $ | 3.8 | $ | 62.7 | $ | 214.2 | $ | 4.42 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Missouri regulatory adjustments | 30.6 | — | — | 30.6 | 0.63 | |||||||||||||||
Unrealized loss on energy-related derivatives | — | 12.6 | — | 12.6 | 0.26 | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.3) | — | (0.3) | (0.01) | |||||||||||||||
Acquisition, divestiture and restructuring activities | 0.2 | — | 3.5 | 3.7 | 0.08 | |||||||||||||||
Income tax effect of adjustments (1) | (7.6) | (3.2) | (0.9) | (11.7) | (0.24) | |||||||||||||||
Effect of the Tax Cuts and Jobs Act | 20.3 | 0.9 | (75.2) | (54.0) | (1.12) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 191.2 | $ | 13.8 | $ | (9.9) | $ | 195.1 | $ | 4.02 | ||||||||||
Diluted EPS [GAAP] | $ | 3.05 | $ | 0.08 | $ | 1.29 | $ | 4.42 | ||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | 3.94 | $ | 0.29 | $ | (0.21) | $ | 4.02 | ||||||||||||
(1) Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the related effective date. |
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
Contribution Margin and Reconciliation to GAAP | ||||||||||||||||||||
(In Millions) | Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 196.3 | $ | 16.8 | $ | (3.6) | $ | — | $ | 209.5 | ||||||||||
Operation and maintenance expenses | 112.0 | 2.7 | 6.5 | (2.9) | 118.3 | |||||||||||||||
Depreciation and amortization | 44.4 | — | 0.5 | — | 44.9 | |||||||||||||||
Taxes, other than income taxes | 57.4 | 0.3 | 0.4 | — | 58.1 | |||||||||||||||
Less: Gross receipts tax expense | (43.4) | (0.1) | — | — | (43.5) | |||||||||||||||
Contribution Margin [Non-GAAP] | 366.7 | 19.7 | 3.8 | (2.9) | 387.3 | |||||||||||||||
Natural and propane gas costs | 366.7 | 5.7 | 0.5 | (0.2) | 372.7 | |||||||||||||||
Gross receipts tax expense | 43.4 | 0.1 | — | — | 43.5 | |||||||||||||||
Operating Revenues | $ | 776.8 | $ | 25.5 | $ | 4.3 | $ | (3.1) | $ | 803.5 | ||||||||||
Three Months Ended March 31, 2018 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 151.0 | $ | 1.1 | $ | (2.0) | $ | — | $ | 150.1 | ||||||||||
Operation and maintenance expenses | 137.5 | 1.5 | 5.8 | (2.6) | 142.2 | |||||||||||||||
Depreciation and amortization | 41.1 | — | 0.4 | — | 41.5 | |||||||||||||||
Taxes, other than income taxes | 58.0 | 0.1 | 0.1 | — | 58.2 | |||||||||||||||
Less: Gross receipts tax expense | (43.5) | (0.1) | — | — | (43.6) | |||||||||||||||
Contribution Margin [Non-GAAP] | 344.1 | 2.6 | 4.3 | (2.6) | 348.4 | |||||||||||||||
Natural and propane gas costs | 403.2 | 18.6 | 0.1 | (0.5) | 421.4 | |||||||||||||||
Gross receipts tax expense | 43.5 | 0.1 | — | — | 43.6 | |||||||||||||||
Operating Revenues | $ | 790.8 | $ | 21.3 | $ | 4.4 | $ | (3.1) | $ | 813.4 | ||||||||||
Six Months Ended March 31, 2019 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 291.9 | $ | 29.3 | $ | (6.6) | $ | — | $ | 314.6 | ||||||||||
Operation and maintenance expenses | 216.9 | 5.3 | 13.9 | (5.6) | 230.5 | |||||||||||||||
Depreciation and amortization | 88.1 | — | 1.0 | — | 89.1 | |||||||||||||||
Taxes, other than income taxes | 96.6 | 0.5 | 0.8 | — | 97.9 | |||||||||||||||
Less: Gross receipts tax expense | (69.3) | (0.1) | — | — | (69.4) | |||||||||||||||
Contribution Margin [Non-GAAP] | 624.2 | 35.0 | 9.1 | (5.6) | 662.7 | |||||||||||||||
Natural and propane gas costs | 658.5 | 16.2 | 0.6 | (1.9) | 673.4 | |||||||||||||||
Gross receipts tax expense | 69.3 | 0.1 | — | — | 69.4 | |||||||||||||||
Operating Revenues | $ | 1,352.0 | $ | 51.3 | $ | 9.7 | $ | (7.5) | $ | 1,405.5 | ||||||||||
Six Months Ended March 31, 2018 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 251.7 | $ | 6.1 | $ | (3.7) | $ | — | $ | 254.1 | ||||||||||
Operation and maintenance expenses | 238.4 | 3.1 | 10.1 | (4.9) | 246.7 | |||||||||||||||
Depreciation and amortization | 81.4 | — | 0.5 | — | 81.9 | |||||||||||||||
Taxes, other than income taxes | 94.7 | 0.1 | 0.1 | — | 94.9 | |||||||||||||||
Less: Gross receipts tax expense | (66.6) | (0.1) | — | — | (66.7) | |||||||||||||||
Contribution Margin [Non-GAAP] | 599.6 | 9.2 | 7.0 | (4.9) | 610.9 | |||||||||||||||
Natural and propane gas costs | 666.6 | 31.6 | 0.2 | (0.8) | 697.6 | |||||||||||||||
Gross receipts tax expense | 66.6 | 0.1 | — | — | 66.7 | |||||||||||||||
Operating Revenues | $ | 1,332.8 | $ | 40.9 | $ | 7.2 | $ | (5.7) | $ | 1,375.2 | ||||||||||
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-reports-second-quarter-results-300841536.html
SOURCE Spire Inc.
Article Date
5/1/2019Spire to Host Earnings Conference Call on May 1
Source: PR Newswire
ST. LOUIS, April 8, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, May 1, to discuss our fiscal 2019 second quarter financial results. We will issue our earnings news release before the market opens that day and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Wednesday, May 1 | |
9 a.m. CT (10 a.m. ET) | ||
Phone Numbers: | U.S. and Canada: | 844-824-3832 |
International: | 412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 11 a.m. CT (12 p.m. ET) on May 1 until June 3 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10130233. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-may-1-300826472.html
SOURCE Spire Inc.
Article Date
4/8/2019Spire Uses Robotic Technology to Continue Safe and Reliable Energy Delivery
Source: PR Newswire
ST. LOUIS, March 28, 2019 /PRNewswire/ -- Every day, Spire crews are working to ensure the safe and reliable delivery of natural gas to customers. Now, they have an extra crew member to help with the work – a robot.
The robot, named CISBOT, was developed by New York-based ULC Robotics and can travel through large-diameter gas mains to repair joints from the inside without interruption to natural gas service. The joints connect pieces of pipe together every 12 feet along the pipeline and are inspected regularly to ensure integrity and reduce future repairs. These inspections and repairs prevent future leaks and extend the life of large-diameter pipes underground.
"At Spire, we're constantly looking for innovative ways to improve the delivery of natural gas – both for field operations and for our customers. While the robot focuses on this project, additional construction crews are freed up to work on other important projects around the metro," said Tim Goodson, vice president of operations for Spire.
Customers will see multiple benefits from this robotic technology:
"We will be sealing around 14,000 feet of pipeline robotically this year with limited disruption to neighborhoods," said Goodson. "Using this technology, we're delivering on our promise to customers to always provide a reliable system while keeping our rates as low as possible."
"Partnering on these projects demonstrates Spire's commitment to investing in infrastructure to better serve the needs of customers," said Ryan McGowan, vice president of field operations at ULC Robotics. "Identifying and sealing these pipeline joints with CISBOT helps Spire to provide even safer and more reliable service for years to come."
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
ULC Robotics, Inc.
ULC Robotics, Inc. is a leading Robotics-as-a-Service (RaaS) solutions provider and developer for the energy industry, transforming the way that vital infrastructure is maintained and operated. Our diverse team of engineers, sensor scientists, unmanned system pilots, and field operators provide end-to-end solutions for real-world application across a variety of environments. The deployment of ULC's robotic systems and unmanned aerial systems helps utilities lower operating costs while minimizing their impact on customers and the environment. For more information please visit www.ulcrobotics.com.
Media Contact: | Media Contact: |
Jenny Barth | Nathan King |
314-342-3300 | 631-667-9200 |
View original content:http://www.prnewswire.com/news-releases/spire-uses-robotic-technology-to-continue-safe-and-reliable-energy-delivery-300820439.html
SOURCE Spire Inc.
Article Date
3/28/20192/6/2019 - Spire Reports First Quarter Results
Spire Reports First Quarter Results
Source: PR Newswire
ST. LOUIS, Feb. 6, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported operating results for its fiscal 2019 first quarter ended December 31, 2018. Highlights include:
"We are off to another strong start this fiscal year. With increasing contributions from our gas utilities and Spire Marketing, we continue to grow and strengthen Spire for long-term success through our utilities and gas-related businesses," said Suzanne Sitherwood, president and chief executive officer of Spire. "Thanks to our investments in organic growth, infrastructure upgrades and technology, we're well positioned to deliver both improved operating performance and increased earnings per share, while continuing to keep our promise to bring people and energy together in ways that enrich lives and support the communities we serve."
First Quarter Results | Three Months Ended December 31, | |||||||||||||||
(Millions) | (Per Diluted Share) | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net Economic Earnings (Loss)* by Segment | ||||||||||||||||
Gas Utility | $ | 66.4 | $ | 59.5 | $ | 1.31 | $ | 1.22 | ||||||||
Gas Marketing | 8.3 | 3.6 | 0.16 | 0.08 | ||||||||||||
Other | (8.8) | (5.2) | (0.17) | (0.11) | ||||||||||||
Total | $ | 65.9 | $ | 57.9 | $ | 1.30 | $ | 1.19 | ||||||||
Fair value adjustments, pre-tax | 2.2 | (0.7) | 0.04 | (0.02) | ||||||||||||
Acquisition-related costs, pre-tax | (0.4) | (1.7) | (0.01) | (0.04) | ||||||||||||
Income tax effect of pre-tax adjustments | (0.4) | 0.6 | (0.01) | 0.02 | ||||||||||||
Effect of the Tax Cuts and Jobs Act | — | 59.9 | — | 1.24 | ||||||||||||
Net Income | $ | 67.3 | $ | 116.0 | $ | 1.32 | $ | 2.39 | ||||||||
Weighted Average Diluted Shares Outstanding | 50.8 | 48.4 | ||||||||||||||
*Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
Consolidated net income for the three months ended December 31, the first quarter of our fiscal year, was $67.3 million ($1.32 per diluted share), down from $116.o million ($2.39 per share) a year ago. The prior year period included $59.9 million (or $1.24 per share) in non-cash adjustments to reflect the estimated impact of federal tax reform from the Tax Cuts and Jobs Act.
Net economic earnings (NEE) for the first quarter of fiscal 2019 was $65.9 million ($1.30 per share), up from $57.9 million ($1.19 per share) last year, reflecting improved Gas Utility and Gas Marketing results, partially offset by higher corporate costs and the operating loss from Spire Storage. Current year per share amounts reflect our successful equity offering completed on May 10, 2018 of 2.3 million shares (or 4.8 percent of our then outstanding shares).
NEE excludes from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these impacts included the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-off of assets that were disallowed in our 2018 Missouri rate proceedings.
Gas Utility
The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. First quarter NEE was $66.4 million, up from $59.5 million in the prior year, reflecting a slightly higher contribution margin and lower effective tax rates due to tax reform, partially offset by higher expenses.
Contribution margin increased $2.0 million, which includes reductions totaling $14.0 million related to lower customer rates due to tax reform that is largely offset by lower income tax expense. As a result, there is minimal impact to net income in the quarter. Margins excluding the customer rate reduction were up $16.0 million, or 6.3 percent. The increase reflects higher usage from colder weather, and the rate increase and change in rate design at the Missouri utilities resulting from the 2018 rate cases, as well as modest customer growth.
Operation and maintenance (O&M) expenses of $102.5 million for the quarter were up $3.5 million, driven by $4.1 million in higher benefit and energy efficiency costs reset in our Missouri rate cases. Costs net of these adjustments were down slightly from last year. Depreciation and amortization expenses increased by $3.4 million from last year, reflecting higher capital investment. Taxes other than income taxes increased $2.5 million reflecting higher volume-driven gross receipts taxes.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing services across the central and southern United States. First quarter NEE was $8.3 million, up from $3.6 million in the prior year, reflecting higher sales volumes driven by the geographic expansion of our business and favorable market conditions. Colder weather and ongoing basis differentials increased the value of our services delivered through optimizing our supply, transportation and storage portfolio.
Other
Other gas-related operations and corporate costs on a NEE basis for the first quarter were $8.8 million in fiscal 2019, up from $5.2 million a year ago. The increase is largely due to the inclusion of an operating loss for Spire Storage, which was excluded from NEE in the prior year, partially offset by non-cash Allowance for Funds Used During Construction (AFUDC) earnings for Spire STL Pipeline.
Pipelines and Storage
We continue to develop our gas-related businesses as part of our long-term growth strategy, including Spire STL Pipeline and Spire Storage.
Spire STL Pipeline
Following the securing of land access for Spire STL Pipeline in December, our contractor (Michels) has started construction, including preparing sites along the route for the installation of pipe and ancillary facilities. The 65-mile natural gas supply pipeline will provide Spire Missouri East with access to lower-cost shale gas from the Marcellus and Utica producing regions. The pipeline will also enhance reliability and the diversity of our physical transportation portfolio.
Based on the current project schedule, we are targeting an in-service date by the end of our fiscal year. The estimated project cost remains $210 million - $225 million.
Spire Storage
On January 25, 2019, the Federal Energy Regulatory Commission (FERC) approved our application to combine the operations of our two adjacent storage facilities in Wyoming into one FERC certificate with a market-based tariff. This will reduce processing costs and promote greater efficiency and reliability. With this approval, we are now integrating the two facilities and finalizing our development plan. That plan, designed to take advantage of expanded opportunities in the region, will likely include additional investments in infrastructure and resources to increase injection and withdrawal capabilities, expand working gas capacity, and improve overall operating performance. We expect Spire Storage to contribute to earnings in fiscal 2020 and beyond. The operating results of Spire Storage are included in Other.
Spire Storage, with a maximum certificated working gas capacity of 39 Bcf, is strategically located near the Opal hub and interconnects with five interstate pipes including the Kern River Pipeline. It serves a wide range of natural gas markets throughout the Rockies and western United States.
Balance Sheets and Cash Flows
We maintain a strong capital structure with ample liquidity. At December 31, 2018, our long-term capitalization was 51.3 percent equity, compared to 49.4 percent equity a year ago.
On December 3, 2018, Spire Missouri completed and fully funded a $100 million, 3-year term loan, with borrowings bearing interest at a variable rate. Proceeds were used to refinance a majority of maturing Spire Missouri debt. On January 15, 2019, Spire Alabama closed a $90 million private placement of 30-year Senior Notes with a 4.64 percent coupon. Spire Alabama used the proceeds to repay short-term debt and for general corporate purposes.
Short-term borrowings outstanding at December 31, 2018 were $626.1 million, compared to $583.6 million a year ago. These levels reflect the highly seasonal nature of our working capital needs, which typically peak in this time period. We retain significant capacity in our $975 million revolving credit facility and related commercial paper program to meet our liquidity needs.
Net cash provided by operating activities was $70.4 million for the three months ended December 31, 2018, compared to $17.9 million for the fiscal first quarter a year ago. The increase was largely driven by fluctuations in working capital items. Capital expenditures for the first quarter of fiscal 2019 were $206.8 million, up from $110.8 million in the prior year. This increase reflects increased investment in infrastructure upgrades and for support of customer growth and new business development initiatives, as well as development of Spire STL Pipeline and Spire Storage.
For additional details on Spire's results for the first quarter of fiscal 2019, please see the accompanying unaudited Condensed Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
Missouri Regulatory Update
On January 14, 2019, Spire Missouri filed with the Missouri Public Service Commission (MoPSC) a request to increase Infrastructure System Replacement Surcharge (ISRS) revenues by $19.0 million. The ISRS mechanism allows for more timely recovery of investments in infrastructure upgrades that improve the integrity and safety of our distribution system.
The filing includes $3.2 million of recovery related to replacement of certain pipeline materials that were not approved as part of Spire Missouri's June 2018 ISRS filing. During that filing, the MoPSC instituted new information requirements which Spire Missouri included in its January filing. New rates are to be effective within 120 days of our filing, or by mid-May 2019.
Dividends
The Spire board of directors has declared a quarterly common stock dividend of $0.5925 per share, payable April 2, 2019, to shareholders of record on March 11, 2019. We have continuously paid a cash dividend since 1946, with 2019 marking the 16th consecutive year of increasing dividends on an annualized basis.
Earnings Guidance and Outlook
We affirm our fiscal 2019 NEE guidance range of $3.70 - $3.80 per diluted share. Our longer-term NEE per share growth target remains 4 - 7 percent. The base for this growth rate is fiscal 2018 earnings, less earnings of $0.17 per share from Spire Marketing due to favorable weather-driven market conditions that are not expected to recur in fiscal 2019.
Our capital expenditures forecast for fiscal 2019 remains $650 million and our five-year capital spend outlook for the fiscal years 2018-2022 remains $2.6 billion.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2019 first quarter financial results. To access the call, please dial the applicable number approximately 5 - 10 minutes prior to the start time.
Date and Time: | Wednesday, February 6 | ||
8 a.m. CT (9 a.m. ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 | ||
The call will also be webcast in a listen-only format for the media and general public, and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available at 10 a.m. CT (11 a.m. ET) on February 6 until March 6 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10127559.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's annual (Form 10-K) and quarterly (Form 10-Q) filings with the Securities and Exchange Commission.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these items included the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-off of certain long-standing assets as a result of disallowances in our 2018 Missouri rate proceedings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
Condensed Consolidated Statements of Income – Unaudited | ||||||||
(In Millions, except per share amounts) | Three Months Ended December 31, | |||||||
2018 | 2017 | |||||||
Operating Revenues: | ||||||||
Gas Utility | $ | 573.8 | $ | 541.9 | ||||
Gas Marketing and other | 28.2 | 19.9 | ||||||
Total Operating Revenues | 602.0 | 561.8 | ||||||
Operating Expenses: | ||||||||
Gas Utility | ||||||||
Natural and propane gas | 251.7 | 240.8 | ||||||
Operation and maintenance | 102.5 | 99.0 | ||||||
Depreciation and amortization | 43.7 | 40.3 | ||||||
Taxes, other than income taxes | 39.2 | 36.7 | ||||||
Total Gas Utility Operating Expenses | 437.1 | 416.8 | ||||||
Gas Marketing and other | 59.8 | 41.0 | ||||||
Total Operating Expenses | 496.9 | 457.8 | ||||||
Operating Income | 105.1 | 104.0 | ||||||
Other Income, Net | 2.8 | 3.3 | ||||||
Interest Charges: | ||||||||
Interest on long-term debt | 20.4 | 20.7 | ||||||
Other interest charges | 5.5 | 3.7 | ||||||
Total Interest Charges | 25.9 | 24.4 | ||||||
Income Before Income Taxes | 82.0 | 82.9 | ||||||
Income Tax Expense (Benefit) | 14.7 | (33.1) | ||||||
Net Income | $ | 67.3 | $ | 116.0 | ||||
Weighted Average Number of Shares Outstanding: | ||||||||
Basic | 50.6 | 48.2 | ||||||
Diluted | 50.8 | 48.4 | ||||||
Basic Earnings Per Share | $ | 1.33 | $ | 2.40 | ||||
Diluted Earnings Per Share | $ | 1.32 | $ | 2.39 | ||||
Dividends Declared Per Share | $ | 0.5925 | $ | 0.5625 | ||||
Condensed Consolidated Balance Sheets – Unaudited | ||||||||||||
(In Millions) | December 31, | September 30, | December 31, | |||||||||
2018 | 2018 | 2017 | ||||||||||
ASSETS | ||||||||||||
Utility Plant | $ | 5,754.8 | $ | 5,653.3 | $ | 5,351.7 | ||||||
Less: Accumulated depreciation and amortization | 1,709.5 | 1,682.8 | 1,641.0 | |||||||||
Net Utility Plant | 4,045.3 | 3,970.5 | 3,710.7 | |||||||||
Non-utility Property | 254.5 | 174.5 | 105.3 | |||||||||
Goodwill | 1,171.6 | 1,171.6 | 1,171.6 | |||||||||
Other Investments | 69.5 | 68.7 | 66.3 | |||||||||
Other Property and Investments | 1,495.6 | 1,414.8 | 1,343.2 | |||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | 8.4 | 4.4 | 6.7 | |||||||||
Accounts receivable, net | 556.7 | 296.8 | 447.6 | |||||||||
Delayed customer billings | 10.9 | 6.9 | 7.5 | |||||||||
Inventories | 212.7 | 210.3 | 204.9 | |||||||||
Other | 116.6 | 141.2 | 185.8 | |||||||||
Total Current Assets | 905.3 | 659.6 | 852.5 | |||||||||
Regulatory Assets and Other Deferred Charges | 786.0 | 798.7 | 794.7 | |||||||||
Total Assets | $ | 7,232.2 | $ | 6,843.6 | $ | 6,701.1 | ||||||
CAPITALIZATION AND LIABILITIES | ||||||||||||
Capitalization: | ||||||||||||
Common stock and paid-in capital | $ | 1,533.5 | $ | 1,533.4 | $ | 1,373.2 | ||||||
Retained earnings | 752.9 | 715.6 | 703.0 | |||||||||
Accumulated other comprehensive (loss) income | (1.8) | 6.4 | 3.0 | |||||||||
Total Shareholders' Equity | 2,284.6 | 2,255.4 | 2,079.2 | |||||||||
Redeemable noncontrolling interest | — | 7.9 | 6.5 | |||||||||
Long-term debt (less current portion) | 1,992.0 | 1,900.1 | 2,030.0 | |||||||||
Total Capitalization | 4,276.6 | 4,163.4 | 4,115.7 | |||||||||
Current Liabilities: | ||||||||||||
Current portion of long-term debt | 175.0 | 175.5 | 105.5 | |||||||||
Notes payable | 626.1 | 553.6 | 583.6 | |||||||||
Accounts payable | 430.9 | 290.1 | 245.6 | |||||||||
Advance customer billings | 19.8 | 22.7 | 27.3 | |||||||||
Accrued liabilities and other | 311.6 | 279.8 | 249.3 | |||||||||
Total Current Liabilities | 1,563.4 | 1,321.7 | 1,211.3 | |||||||||
Deferred Credits and Other Liabilities: | ||||||||||||
Deferred income taxes | 453.2 | 435.8 | 441.0 | |||||||||
Pension and postretirement benefit costs | 182.1 | 180.2 | 233.6 | |||||||||
Asset retirement obligations | 324.5 | 321.1 | 299.7 | |||||||||
Regulatory liabilities | 363.4 | 354.6 | 335.1 | |||||||||
Other | 69.0 | 66.8 | 64.7 | |||||||||
Total Deferred Credits and Other Liabilities | 1,392.2 | 1,358.5 | 1,374.1 | |||||||||
Total Capitalization and Liabilities | $ | 7,232.2 | $ | 6,843.6 | $ | 6,701.1 | ||||||
Condensed Consolidated Statements of Cash Flows – Unaudited | ||||||||
(In Millions) | Three Months Ended December 31, | |||||||
2018 | 2017 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 67.3 | $ | 116.0 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 44.2 | 40.4 | ||||||
Deferred income taxes and investment tax credits | 12.7 | (33.6) | ||||||
Changes in assets and liabilities | (53.4) | (106.7) | ||||||
Other | (0.4) | 1.8 | ||||||
Net cash provided by operating activities | 70.4 | 17.9 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (206.8) | (110.8) | ||||||
Business acquisitions | (7.9) | (16.0) | ||||||
Other | (1.5) | 0.1 | ||||||
Net cash used in investing activities | (216.2) | (126.7) | ||||||
Financing Activities: | ||||||||
Issuance of long-term debt | 100.0 | 30.0 | ||||||
Repayment of long-term debt | (9.1) | - | ||||||
Issuance of short-term debt, net | 72.5 | 106.3 | ||||||
Issuance of common stock | 0.4 | 0.3 | ||||||
Dividends paid | (28.8) | (25.8) | ||||||
Other | (2.2) | (2.7) | ||||||
Net cash provided by financing activities | 132.8 | 108.1 | ||||||
Net Decrease in Cash, Cash Equivalents, and Restricted Cash | (13.0) | (0.7) | ||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 21.4 | 7.4 | ||||||
Cash and Cash Equivalents at End of Period | $ | 8.4 | $ | 6.7 | ||||
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||
(In Millions, except per share amounts) | Gas Utility | Gas Marketing | Other | Total | Per Diluted Share (2) | |||||||||||||||
Three Months Ended December 31, 2018 | ||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 66.4 | $ | 10.0 | $ | (9.1) | $ | 67.3 | $ | 1.32 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized gain on energy-related derivatives | — | (2.2) | — | (2.2) | (0.04) | |||||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 0.4 | 0.4 | 0.01 | |||||||||||||||
Income tax effect of adjustments (1) | — | 0.5 | (0.1) | 0.4 | 0.01 | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 66.4 | $ | 8.3 | $ | (8.8) | $ | 65.9 | $ | 1.30 | ||||||||||
Diluted EPS [GAAP] | $ | 1.31 | $ | 0.19 | $ | (0.18) | $ | 1.32 | ||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | 1.31 | $ | 0.16 | $ | (0.17) | $ | 1.30 | ||||||||||||
Three Months Ended December 31, 2017 | ||||||||||||||||||||
Net Income [GAAP] | $ | 45.2 | $ | 3.5 | $ | 67.3 | $ | 116.0 | $ | 2.39 | ||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized loss on energy-related derivatives | — | 0.8 | — | 0.8 | 0.02 | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.1) | — | (0.1) | — | |||||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 1.7 | 1.7 | 0.04 | |||||||||||||||
Income tax effect of adjustments (1) | — | (0.2) | (0.4) | (0.6) | (0.02) | |||||||||||||||
Effect of the Tax Cuts and Jobs Act | 14.3 | (0.4) | (73.8) | (59.9) | (1.24) | |||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 59.5 | $ | 3.6 | $ | (5.2) | $ | 57.9 | $ | 1.19 | ||||||||||
Diluted EPS [GAAP] | $ | 0.93 | $ | 0.07 | $ | 1.39 | $ | 2.39 | ||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | 1.22 | $ | 0.08 | $ | (0.11) | $ | 1.19 | ||||||||||||
(1) Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the related effective date. | |
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. | |
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. | |
Contribution Margin and Reconciliation to GAAP | ||||||||||||||||||||
(In Millions) | Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
Three Months Ended December 31, 2018 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 95.6 | $ | 12.5 | $ | (3.0) | $ | — | $ | 105.1 | ||||||||||
Operation and maintenance expenses | 104.9 | 2.6 | 7.4 | (2.7) | 112.2 | |||||||||||||||
Depreciation and amortization | 43.7 | — | 0.5 | — | 44.2 | |||||||||||||||
Taxes, other than income taxes | 39.2 | 0.2 | 0.4 | — | 39.8 | |||||||||||||||
Less: Gross receipts tax expense | (25.9) | — | — | — | (25.9) | |||||||||||||||
Contribution Margin [Non-GAAP] | 257.5 | 15.3 | 5.3 | (2.7) | 275.4 | |||||||||||||||
Natural and propane gas costs | 291.8 | 10.5 | 0.1 | (1.7) | 300.7 | |||||||||||||||
Gross receipts tax expense | 25.9 | — | — | — | 25.9 | |||||||||||||||
Operating Revenues | $ | 575.2 | $ | 25.8 | $ | 5.4 | $ | (4.4) | $ | 602.0 | ||||||||||
Three Months Ended December 31, 2017 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 100.7 | $ | 5.0 | $ | (1.7) | $ | — | $ | 104.0 | ||||||||||
Operation and maintenance expenses | 100.9 | 1.6 | 4.3 | (2.3) | 104.5 | |||||||||||||||
Depreciation and amortization | 40.3 | — | 0.1 | — | 40.4 | |||||||||||||||
Taxes, other than income taxes | 36.7 | — | — | — | 36.7 | |||||||||||||||
Less: Gross receipts tax expense | (23.1) | — | — | — | (23.1) | |||||||||||||||
Contribution Margin [Non-GAAP] | 255.5 | 6.6 | 2.7 | (2.3) | 262.5 | |||||||||||||||
Natural and propane gas costs | 263.4 | 13.0 | 0.1 | (0.3) | 276.2 | |||||||||||||||
Gross receipts tax expense | 23.1 | — | — | — | 23.1 | |||||||||||||||
Operating Revenues | $ | 542.0 | $ | 19.6 | $ | 2.8 | $ | (2.6) | $ | 561.8 | ||||||||||
View original content:http://www.prnewswire.com/news-releases/spire-reports-first-quarter-results-300790533.html
SOURCE Spire Inc.
Article Date
2/6/2019Spire to Host Earnings Conference Call on February 6
Source: PR Newswire
ST. LOUIS, Jan. 14, 2019 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, February 6, to discuss our fiscal 2019 first quarter financial results. We will issue our earnings news release before the market opens that day, and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Wednesday, February 6 | |
8 a.m. CT (9 a.m. ET) | ||
Phone Numbers: | U.S. and Canada: | 844-824-3832 |
International: | 412-317-5142 |
The call will be webcast in a listen-only format for the media and general public, and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on February 6 until March 6 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10127559. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-february-6-300777898.html
SOURCE Spire Inc.
Article Date
1/14/201911/15/2018 - Spire Reports 2018 Results
Spire Reports 2018 Results
Source: PR Newswire
ST. LOUIS, Nov. 15, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported results for its fiscal 2018 full year and fourth quarter ended September 30. Highlights include:
"I'm so proud of our Spire employees who delivered another year of solid performance. Together, we achieved higher earnings per share reflecting organic growth, investments in infrastructure upgrades, technology and new business, as well as strong performance by Spire Marketing. Of particular importance, we have achieved certainty in Missouri and Alabama regulatory outcomes," said Suzanne Sitherwood, president and chief executive officer of Spire. "With regulatory resets behind us, we are focused on organic growth across our businesses, having recently named business unit presidents to lead these efforts. I'm excited about the coming year as we continue to grow and strengthen Spire for long-term success through our utilities and other businesses including Spire STL Pipeline. We're well positioned to deliver both improved operating performance and increased earnings per share, while continuing to elevate the customer experience."
Fiscal 2018 Results | Year ended September 30, | |||||||||||||||
(Millions) | (Per Diluted Share) | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net Economic Earnings (Loss)* by Segment | ||||||||||||||||
Gas Utility | $ | 183.1 | $ | 181.5 | $ | 3.71 | $ | 3.86 | ||||||||
Gas Marketing | 22.9 | 6.8 | 0.46 | 0.14 | ||||||||||||
Other | (22.3) | (20.7) | (0.45) | (0.44) | ||||||||||||
Total | $ | 183.7 | $ | 167.6 | $ | 3.72 | $ | 3.56 | ||||||||
Missouri regulatory adjustments, pre-tax | (30.6) | — | (0.62) | — | ||||||||||||
Fair value adjustments, pre-tax | 4.3 | (5.7) | 0.09 | (0.12) | ||||||||||||
Acquisition-related adjustments, pre-tax | (13.6) | (4.0) | (0.28) | (0.09) | ||||||||||||
Income tax effect of adjustments | 10.3 | 3.7 | 0.21 | 0.08 | ||||||||||||
Effect of the Tax Cuts and Jobs Act | 60.1 | — | 1.21 | — | ||||||||||||
Net Income | $ | 214.2 | $ | 161.6 | $ | 4.33 | $ | 3.43 | ||||||||
Average Diluted Shares Outstanding | 49.3 | 47.0 | ||||||||||||||
* Non-GAAP, see "Net Economic Earnings [Non-GAAP] and Reconciliation to GAAP." |
For fiscal 2018, we reported consolidated net income of $214.2 million (or $4.33 per diluted share) up from $161.6 million (or $3.43 per share) for the prior year. Net economic earnings (NEE) for the year were $183.7 million (or $3.72 per share) up from $167.6 million (or $3.56 per share) a year ago. This 4.5 percent increase in NEE per share includes slightly higher Gas Utility NEE, reflecting certain impacts of our Missouri rate cases and tax reform, and much stronger results from Gas Marketing, both of which were impacted by a 4.9 percent increase in diluted shares outstanding.
NEE excludes from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative or GAAP standard-setting actions. In fiscal 2018, these impacts included the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-off of certain assets that were disallowed in our Missouri rate proceedings.
Gas Utility
The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. For fiscal 2018, NEE was $183.1 million, up from $181.5 million in 2017, reflecting a higher contribution margin and the benefit of the lower income tax rate, offset by higher operating expenses.
Contribution margin was $947.5 million, an increase of $8.5 million over the prior year, with $29.2 million due to higher volumetric usage at Spire Alabama and Spire Missouri, both of which experienced colder temperatures than a year ago. Contribution margin also benefited from an increase in Infrastructure System Replacement Surcharge (ISRS) revenues of $5.2 million and customer growth of $2.6 million. These increases were largely offset by a $20.6 million reduction due to a change in the rate design at our Missouri utilities, and by $11.2 million due to the timing of lower rates for Spire Alabama customers as a result of the decrease in the income tax rate. The Missouri rate design change, which was effective in April, shifts more of our margin and earnings from the warm summer months, including our fiscal fourth quarter, to the winter months (our fiscal first and second quarters).
Operation and maintenance (O&M) expenses of $455.6 million were up $50.6 million. Excluding $36.6 million in gross write-offs of disallowed O&M recoveries in our Missouri rate cases, O&M expenses increased $14.0 million. This increase includes $7.0 million in new amortization of pension, other postretirement costs and other regulatory assets as set in our Missouri rate cases. The increase also reflects higher employee-related costs and bad debt expense attributable to colder weather. Depreciation and amortization rose by $13.5 million, reflecting higher capital investment.
Gas Marketing
The Gas Marketing segment includes the operations of Spire Marketing, which provides natural gas marketing services across the country with its core footprint being in the central United States. NEE was $22.9 million, up from $6.8 million in the prior year. The higher earnings reflect improved market conditions driven by colder weather and temperature volatility that resulted in increased value from basis differentials (spreads) as well as transportation and storage optimization.
Other
Other non-utility operations and corporate costs on an NEE basis were $22.3 million up from $20.7 million a year ago. The increase is largely due to higher after-tax interest and other corporate costs partially offset by non-cash earnings associated with Spire STL Pipeline.
Quarterly Results | Three months ended September 30, | |||||||||||||||
(Millions) | (Per Diluted Share) | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net Economic (Loss) Earnings* by Segment | ||||||||||||||||
Gas Utility | $ | (25.0) | $ | (5.8) | $ | (0.49) | $ | (0.12) | ||||||||
Gas Marketing | 4.7 | 3.1 | 0.09 | 0.06 | ||||||||||||
Other | (6.3) | (7.8) | (0.12) | (0.16) | ||||||||||||
Total | $ | (26.6) | $ | (10.5) | $ | (0.52) | $ | (0.22) | ||||||||
Fair value adjustments, pre-tax | 0.6 | (2.7) | 0.01 | (0.06) | ||||||||||||
Acquisition-related adjustments, pre-tax | (6.6) | (1.9) | (0.13) | (0.04) | ||||||||||||
Income tax effect of adjustments | 0.6 | 1.8 | 0.01 | 0.04 | ||||||||||||
Effect of the Tax Cuts and Jobs Act | 6.1 | — | 0.12 | — | ||||||||||||
Net Loss | $ | (25.9) | $ | (13.3) | $ | (0.51) | $ | (0.28) | ||||||||
Average Diluted Shares Outstanding | 50.7 | 48.3 | ||||||||||||||
* Non-GAAP, see "Net Economic Earnings [Non-GAAP] and Reconciliation to GAAP." |
Our Gas Utility business is seasonal in nature, with earnings concentrated during the winter heating season. As a result, we typically report a loss in our fiscal fourth quarter ended September 30. For fiscal 2018, we reported a consolidated net loss for the fourth quarter of $25.9 million ($0.51 per share) compared to a loss of $13.3 million ($0.28 per share) in the prior-year period. On an NEE basis, the loss was $26.6 million ($0.52 per share) in fiscal 2018 compared to a loss of $10.5 million ($0.22 per share) a year ago. The larger seasonal loss in Gas Utility was driven by the rate design change in Missouri that shifts earnings out of warmer summer months and into the winter heating season, partially offset by higher Gas Marketing earnings.
Gas Utility
Gas Utility reported a loss on an NEE basis of $25.0 million for the fourth quarter of fiscal 2018, compared to a loss of $5.8 million for the same period a year ago. The lower results reflect a decrease in contribution margin and higher expenses. Contribution margin decreased by $9.8 million, largely due to the rate design changes at our Missouri utilities.
O&M expenses of $108.5 million were up $2.1 million, with the increase attributable to higher amortization of pension and other postretirement costs as well as higher employee-related expenses.
Gas Marketing
Fourth quarter fiscal 2018 NEE for Gas Marketing was $4.7 million, up $1.6 million from the prior-year period, reflecting favorable basis differentials and higher volumes that drove greater transportation optimization.
Other
Other non-utility operations and corporate costs on an NEE basis were $6.3 million in the fourth quarter of 2018, down from $7.8 million a year ago. The decrease is largely due to higher non-cash earnings associated with Spire STL Pipeline.
Dividend Increased by 5.3 Percent
Reflecting our solid performance in fiscal 2018 and expectations for continued growth, the board of directors of Spire increased the quarterly common stock dividend to $0.5925 per share, an increase of 5.3 percent. This raises the annualized rate by $0.12 per share to $2.37 per share. Spire has continuously paid a cash dividend since 1946, and 2019 will mark the 16th consecutive year that the dividend has increased. The dividend is payable January 3, 2019, to shareholders of record on December 11, 2018.
Balance Sheets and Cash Flow
In fiscal 2018, we continued to strengthen our capital structure while maintaining ample liquidity. At September 30, 2018, the end of our fiscal year, we had long-term capitalization of 52.2 percent equity, up 350 basis points compared to a year ago. The increase in equity capitalization includes our successful issuance of 2.3 million shares in May 2018, which resulted in net proceeds of $153 million.
Short-term borrowings outstanding at fiscal year-end were $553.6 million, up from $477.3 million a year ago, reflecting higher capital investment and the timing of long-term borrowing, including issuances planned for both Spire Missouri and Spire Alabama over the next few months.
Through our $975 million credit facility, we have ample capacity to meet our anticipated seasonal borrowing needs heading into the winter heating season. On October 31, 2018, Spire and the facility's syndicate banks agreed to renew the facility at its current $975 million capacity and extend the term by two years to October 31, 2023.
Net cash provided by operating activities was $456.6 million for fiscal 2018, compared to $288.3 million for fiscal 2017. The increase was primarily driven by higher net income and a decrease in working capital.
Capital expenditures for fiscal 2018 were $499.4 million, up $61.3 million, or 14 percent, from the prior year, as we increased our investment in infrastructure upgrades and new business across all our utilities. The increase also reflects higher capital spend for Spire STL Pipeline and Spire Storage.
For additional details on Spire's results for the fourth quarter and full year of fiscal 2018, please see the accompanying unaudited Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flow.
Spire STL Pipeline and Spire Storage
Spire STL Pipeline
We are progressing with Spire STL Pipeline, a planned 65-mile natural gas supply pipeline that will provide Spire Missouri East with access to lower-cost shale gas from the Marcellus/Utica producing regions. The pipeline will also enhance reliability and the diversity of our physical transport portfolio.
As reported earlier, on August 3, we received a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC), approving the project. On November 5, the FERC issued a Notice to Proceed, giving us the authority to begin construction. The notice confirms that we have satisfied all FERC requirements including their review of our implementation plan and that we have received all required permits.
We have completed the project schedule with our contractor, targeting an in-service date in the second half of calendar 2019, pending timely completion of land acquisitions. The estimated project cost remains $210 million - $225 million.
Spire Storage
We acquired a majority interest in a large natural gas storage facility in Wyoming in December 2017 and acquired the remaining interest in October 2018. In May 2018, we expanded our operations by acquiring a smaller adjacent storage facility. Our total investment in Spire Storage is $56 million. Spire Storage interconnects with five interstate pipelines, has access to the Rockies Express Pipeline, and is strategically located near the Opal hub. It is positioned to serve multiple regions and customers including utilities, power generators, marketers and pipelines.
We continue to integrate our Spire Storage facilities while investing in operational and physical improvements to expand capacity and capability to serve more customers. The operating results of Spire Storage, including integration costs, are included in Other, but are excluded from NEE in fiscal 2018.
Regulatory Matters
Alabama
The parameters of the annual rate setting mechanism in Spire Alabama – Rate Stabilization and Equalization (RSE) – was subject to review by the Alabama Public Service Commission (APSC) during the 2018 rate year. On October 25, 2018, the APSC approved a number of modified RSE parameters, including:
In addition, the APSC established an Accelerated Infrastructure Modernization rider to encourage and incent Spire Alabama to accelerate the replacement of all its cast iron and bare steel distribution pipelines over a 15-year period. During the term of the program, Spire Alabama's ROE will be adjusted by 10 basis points depending on its ability to meet the annual baseline for pipeline replacement miles.
On October 26, 2018, Spire Alabama and Spire Gulf made their annual RSE rate filings with the APSC, presenting each utility's budget for the fiscal year ending September 30, 2019, including net income and a calculation of return on average common equity at the allowed levels described earlier. The filings are currently being reviewed and we anticipate that new rates will be effective December 1, 2018.
Missouri
Effective October 8, 2018, the Missouri Public Service Commission (MoPSC) approved ISRS revenues of $8.0 million for our Spire Missouri utilities, compared to a requested amount of $11.9 million. The amount not approved relates to costs for replacement of certain materials determined by the MoPSC to be non-ISRS eligible. Spire Missouri and the Office of Public Counsel have requested rehearing of this finding. The ISRS mechanism allows for more timely recovery of certain investments in infrastructure upgrades that improve the integrity and safety of our distribution pipeline system.
Earnings Guidance and Outlook
We affirm our longer-term NEE per share earnings growth target of 4-7 percent from a base of fiscal 2018 run-rate earnings after removing $0.17 per share of Spire Marketing's performance (that is not expected to recur). Our long-term target reflects the certainty gained from the completion of regulatory resets in Missouri and Alabama that resulted in lower rates for our customers. It also reflects our expectation of continued growth of our gas utilities driven by organic growth initiatives as well as increasing capital investment focused on infrastructure upgrades, technology and new business. Our business mix is expected to remain predominately regulated and is expected to include growing contributions from our gas-related businesses.
Consistent with our long-term growth target, we expect fiscal 2019 NEE to be in the range of $3.70-$3.80 per share, reflecting growth across all of our businesses.
Capital expenditures for fiscal 2019 are expected to be $650 million, with investment in our gas utilities totaling $475 million and the remainder supporting our pipeline and storage businesses. We anticipate our capital investment for the 5-year period 2018-2022 to be $2.6 billion, and we expect most of that spend to be in our gas utilities, where more than 85 percent will be recovered in rates with minimal lag under regulatory mechanisms or reflected in earnings.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2018 fourth quarter and full year financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
Date and Time: | Thursday, November 15 | ||
8:00 a.m. CT (9:00 a.m. ET) | |||
Phone Numbers: | U.S. and Canada: | 844-824-3832 | |
International: | 412-317-5142 | ||
The call will also be webcast in a listen-only format for the media and general public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available from 12:30 p.m. CT (1:30 p.m. ET) on November 15 until December 15 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10125650. A replay of the webcast will be available at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-K for the fiscal year ended September 30, 2018, to be filed with the Securities and Exchange Commission later today.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these items included the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-off of certain long-standing assets as a result of disallowances in our Missouri rate proceedings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
Consolidated Statements of Income - Unaudited | |||||||||||||||||
Spire Inc. | |||||||||||||||||
(In Millions, except per share amounts) | |||||||||||||||||
Three months ended | Year ended | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
Operating Revenues: | |||||||||||||||||
Gas Utility | $ | 220.7 | $ | 240.9 | $ | 1,888.0 | $ | 1,660.0 | |||||||||
Gas Marketing and other | 18.5 | 17.8 | 77.0 | 80.7 | |||||||||||||
Total Operating Revenues | 239.2 | 258.7 | 1,965.0 | 1,740.7 | |||||||||||||
Operating Expenses: | |||||||||||||||||
Gas Utility | |||||||||||||||||
Natural and propane gas | 38.4 | 45.7 | 770.1 | 570.5 | |||||||||||||
Other operation and maintenance expenses | 108.5 | 106.4 | 455.6 | 405.0 | |||||||||||||
Depreciation and amortization | 45.1 | 39.5 | 167.0 | 153.5 | |||||||||||||
Taxes, other than income taxes | 24.3 | 25.6 | 152.5 | 137.8 | |||||||||||||
Total Gas Utility Operating Expenses | 216.3 | 217.2 | 1,545.2 | 1,266.8 | |||||||||||||
Gas Marketing and other | 42.5 | 39.6 | 140.1 | 152.2 | |||||||||||||
Total Operating Expenses | 258.8 | 256.8 | 1,685.3 | 1,419.0 | |||||||||||||
Operating (Loss) Income | (19.6) | 1.9 | 279.7 | 321.7 | |||||||||||||
Other Income - Net | 0.1 | 1.0 | 6.4 | 6.6 | |||||||||||||
Interest Charges: | |||||||||||||||||
Interest on long-term debt | 20.5 | 19.5 | 83.0 | 76.8 | |||||||||||||
Other interest charges | 3.9 | 3.4 | 15.4 | 12.3 | |||||||||||||
Total Interest Charges | 24.4 | 22.9 | 98.4 | 89.1 | |||||||||||||
(Loss) Income Before Income Taxes | (43.9) | (20.0) | 187.7 | 239.2 | |||||||||||||
Income Tax (Benefit) Expense | (18.0) | (6.7) | (26.5) | 77.6 | |||||||||||||
Net (Loss) Income | $ | (25.9) | $ | (13.3) | $ | 214.2 | $ | 161.6 | |||||||||
Weighted Average Number of Common Shares Outstanding: | |||||||||||||||||
Basic | 50.6 | 48.1 | 49.1 | 46.9 | |||||||||||||
Diluted | 50.7 | 48.3 | 49.3 | 47.0 | |||||||||||||
Basic (Loss) Earnings Per Share of Common Stock | $ | (0.51) | $ | (0.28) | $ | 4.35 | $ | 3.44 | |||||||||
Diluted (Loss) Earnings Per Share of Common Stock | $ | (0.51) | $ | (0.28) | $ | 4.33 | $ | 3.43 | |||||||||
Dividends Declared Per Share of Common Stock | $ | 0.5625 | $ | 0.525 | $ | 2.25 | $ | 2.10 | |||||||||
Condensed Consolidated Balance Sheets - Unaudited | |||||||
Spire Inc. | |||||||
(In Millions) | |||||||
September 30, | September 30, | ||||||
2018 | 2017 | ||||||
Assets | |||||||
Utility Plant | $ | 5,653.3 | $ | 5,278.4 | |||
Less: Accumulated depreciation and amortization | 1,682.8 | 1,613.2 | |||||
Net Utility Plant | 3,970.5 | 3,665.2 | |||||
Non-utility Property | 174.5 | 52.0 | |||||
Goodwill | 1,171.6 | 1,171.6 | |||||
Other Investments | 68.7 | 64.2 | |||||
Other Property and Investments | 1,414.8 | 1,287.8 | |||||
Current Assets: | |||||||
Cash and cash equivalents | 4.4 | 7.4 | |||||
Accounts receivable (net of allowance for doubtful accounts) | 296.8 | 271.4 | |||||
Inventories | 210.3 | 225.8 | |||||
Other | 148.1 | 220.9 | |||||
Total Current Assets | 659.6 | 725.5 | |||||
Deferred Charges and Other Assets | 798.7 | 868.2 | |||||
Total Assets | $ | 6,843.6 | $ | 6,546.7 | |||
Capitalization and Liabilities | |||||||
Capitalization: | |||||||
Common stock and paid-in capital | $ | 1,533.4 | $ | 1,373.9 | |||
Retained earnings | 715.6 | 614.2 | |||||
Accumulated other comprehensive income | 6.4 | 3.2 | |||||
Total Shareholders' Equity | 2,255.4 | 1,991.3 | |||||
Redeemable noncontrolling interest | 7.9 | — | |||||
Long-term debt | 1,900.1 | 1,995.0 | |||||
Total Capitalization | 4,163.4 | 3,986.3 | |||||
Current Liabilities: | |||||||
Current portion of long-term debt | 175.5 | 100.0 | |||||
Notes payable | 553.6 | 477.3 | |||||
Accounts payable | 290.1 | 257.1 | |||||
Accrued liabilities and other | 302.5 | 263.5 | |||||
Total Current Liabilities | 1,321.7 | 1,097.9 | |||||
Deferred Credits and Other Liabilities: | |||||||
Deferred income taxes | 435.8 | 707.5 | |||||
Pension and postretirement benefit costs | 180.2 | 237.4 | |||||
Asset retirement obligations | 321.1 | 296.6 | |||||
Regulatory liabilities | 354.6 | 157.2 | |||||
Other | 66.8 | 63.8 | |||||
Total Deferred Credits and Other Liabilities | 1,358.5 | 1,462.5 | |||||
Total Capitalization and Liabilities | $ | 6,843.6 | $ | 6,546.7 | |||
Condensed Consolidated Statements of Cash Flow - Unaudited | |||||||
Spire Inc. | |||||||
(In Millions) | |||||||
Year ended September 30, | |||||||
2018 | 2017 | ||||||
Operating Activities: | |||||||
Net Income | $ | 214.2 | $ | 161.6 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 168.4 | 154.1 | |||||
Deferred income taxes and investment tax credits | (28.7) | 77.0 | |||||
Changes in assets and liabilities | 58.5 | (108.6) | |||||
Other | 44.2 | 4.2 | |||||
Net cash provided by operating activities | 456.6 | 288.3 | |||||
Investing Activities: | |||||||
Capital expenditures | (499.4) | (438.1) | |||||
Business acquisitions, net of cash acquired, and related settlements | (28.1) | 3.8 | |||||
Other | (4.2) | 0.8 | |||||
Net cash used in investing activities | (531.7) | (433.5) | |||||
Financing Activities: | |||||||
Repayment of long-term debt | (105.0) | (393.8) | |||||
Issuance of long-term debt | 75.0 | 420.0 | |||||
Issuance of short-term debt, net | 76.3 | 78.6 | |||||
Issuance of common stock | 154.7 | 146.9 | |||||
Dividends paid | (108.7) | (96.2) | |||||
Other | (3.2) | (8.1) | |||||
Net cash provided by financing activities | 89.1 | 147.4 | |||||
Net Increase in Cash, Cash Equivalents, and Restricted Cash | 14.0 | 2.2 | |||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year | 7.4 | 5.2 | |||||
Cash, Cash Equivalents, and Restricted Cash at End of Year | $ | 21.4 | $ | 7.4 | |||
Net Economic (Loss) Earnings [Non-GAAP] and Reconciliation to GAAP | ||||||||||||||||||||||
(In Millions, except per share amounts) | Gas | Gas | Other | Consol- | Per Diluted | |||||||||||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||||||||
Net (Loss) Income [GAAP] | $ | (21.8) | $ | 4.9 | $ | (9.0) | $ | (25.9) | $ | (0.51) | ||||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||||
Unrealized gain on energy-related derivatives | — | (0.6) | — | (0.6) | (0.01) | |||||||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 6.6 | 6.6 | 0.13 | |||||||||||||||||
Income tax effect of adjustments (1) | 0.1 | 0.2 | (0.9) | (0.6) | (0.01) | |||||||||||||||||
Effect of the Tax Cuts and Jobs Act | (3.3) | 0.2 | (3.0) | (6.1) | (0.12) | |||||||||||||||||
Net Economic (Loss) Earnings [Non-GAAP] | $ | (25.0) | $ | 4.7 | $ | (6.3) | $ | (26.6) | $ | (0.52) | ||||||||||||
Diluted EPS [GAAP] | $ | (0.43) | $ | 0.10 | $ | (0.18) | $ | (0.51) | ||||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | (0.49) | $ | 0.09 | $ | (0.12) | $ | (0.52) | ||||||||||||||
Three Months Ended September 30, 2017 | ||||||||||||||||||||||
Net (Loss) Income [GAAP] | $ | (6.5) | $ | 1.5 | $ | (8.3) | $ | (13.3) | $ | (0.28) | ||||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||||
Unrealized loss on energy-related derivatives | — | 2.8 | — | 2.8 | 0.06 | |||||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.1) | — | (0.1) | — | |||||||||||||||||
Acquisition, divestiture and restructuring activities | 1.2 | — | 0.7 | 1.9 | 0.04 | |||||||||||||||||
Income tax effect of adjustments (1) | (0.5) | (1.1) | (0.2) | (1.8) | (0.04) | |||||||||||||||||
Net Economic (Loss) Earnings [Non-GAAP] | $ | (5.8) | $ | 3.1 | $ | (7.8) | $ | (10.5) | $ | (0.22) | ||||||||||||
Diluted EPS [GAAP] | $ | (0.14) | $ | 0.03 | $ | (0.17) | $ | (0.28) | ||||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | (0.12) | $ | 0.06 | $ | (0.16) | $ | (0.22) | ||||||||||||||
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the effective date. |
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
Net Economic Earnings (Loss) [Non-GAAP] and Reconciliation to GAAP | ||||||||||||||||||||||
(In Millions, except per share amounts) | Gas | Gas | Other | Consol- | Per Diluted | |||||||||||||||||
Year Ended September 30, 2018 | ||||||||||||||||||||||
Net Income [GAAP] | $ | 144.4 | $ | 24.9 | $ | 44.9 | $ | 214.2 | $ | 4.33 | ||||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||||
Missouri regulatory adjustments | 30.6 | — | — | 30.6 | 0.62 | |||||||||||||||||
Unrealized gain on energy-related derivatives | — | (4.0) | — | (4.0) | (0.08) | |||||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.3) | — | (0.3) | (0.01) | |||||||||||||||||
Acquisition, divestiture and restructuring activities | 0.2 | — | 13.4 | 13.6 | 0.28 | |||||||||||||||||
Income tax effect of adjustments (1) | (9.1) | 1.2 | (2.4) | (10.3) | (0.21) | |||||||||||||||||
Effect of the Tax Cuts and Jobs Act | 17.0 | 1.1 | (78.2) | (60.1) | (1.21) | |||||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 183.1 | $ | 22.9 | $ | (22.3) | $ | 183.7 | $ | 3.72 | ||||||||||||
Diluted EPS [GAAP] | $ | 2.92 | $ | 0.50 | $ | 0.91 | $ | 4.33 | ||||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | 3.71 | $ | 0.46 | $ | (0.45) | $ | 3.72 | ||||||||||||||
Year Ended September 30, 2017 | ||||||||||||||||||||||
Net Income (Loss) [GAAP] | $ | 180.5 | $ | 3.4 | $ | (22.3) | $ | 161.6 | $ | 3.43 | ||||||||||||
Adjustments, pre-tax: | ||||||||||||||||||||||
Unrealized loss on energy-related derivatives | 0.1 | 5.9 | — | 6.0 | 0.13 | |||||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.3) | — | (0.3) | (0.01) | |||||||||||||||||
Acquisition, divestiture and restructuring activities | 1.5 | — | 2.5 | 4.0 | 0.09 | |||||||||||||||||
Income tax effect of adjustments (1) | (0.6) | (2.2) | (0.9) | (3.7) | (0.08) | |||||||||||||||||
Net Economic Earnings (Loss) [Non-GAAP] | $ | 181.5 | $ | 6.8 | $ | (20.7) | $ | 167.6 | $ | 3.56 | ||||||||||||
Diluted EPS [GAAP] | $ | 3.83 | $ | 0.07 | $ | (0.47) | $ | 3.43 | ||||||||||||||
Net Economic EPS [Non-GAAP] (2) | $ | 3.86 | $ | 0.14 | $ | (0.44) | $ | 3.56 | ||||||||||||||
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the effective date. |
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
Contribution Margin [Non-GAAP] and Reconciliation to GAAP | ||||||||||||||||||||
(In Millions) | Gas | Gas | Other | Eliminations | Consolidated | |||||||||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||||||
Operating (Loss) Income [GAAP] | $ | (17.3) | $ | 6.1 | $ | (8.4) | $ | — | $ | (19.6) | ||||||||||
Operation and maintenance expenses | 110.6 | 2.3 | 12.5 | (2.6) | 122.8 | |||||||||||||||
Depreciation and amortization | 45.1 | — | 0.4 | — | 45.5 | |||||||||||||||
Taxes, other than income taxes | 24.3 | — | 0.4 | — | 24.7 | |||||||||||||||
Less: Gross receipts taxes | (11.3) | — | — | — | (11.3) | |||||||||||||||
Contribution Margin [Non-GAAP] | 151.4 | 8.4 | 4.9 | (2.6) | 162.1 | |||||||||||||||
Natural and propane gas expense | 58.1 | 7.9 | 0.1 | (0.3) | 65.8 | |||||||||||||||
Gross receipts tax expense | 11.3 | — | — | — | 11.3 | |||||||||||||||
Operating Revenues [GAAP] | $ | 220.8 | $ | 16.3 | $ | 5.0 | $ | (2.9) | $ | 239.2 | ||||||||||
Three Months Ended September 30, 2017 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 1.3 | $ | 2.3 | $ | (1.7) | $ | — | $ | 1.9 | ||||||||||
Operation and maintenance expenses | 107.4 | 1.5 | 3.4 | (1.6) | 110.7 | |||||||||||||||
Depreciation and amortization | 39.5 | — | 0.2 | — | 39.7 | |||||||||||||||
Taxes, other than income taxes | 25.6 | 0.2 | — | — | 25.8 | |||||||||||||||
Less: Gross receipts taxes | (12.6) | — | — | — | (12.6) | |||||||||||||||
Contribution Margin [Non-GAAP] | 161.2 | 4.0 | 1.9 | (1.6) | 165.5 | |||||||||||||||
Natural and propane gas expense | 67.1 | 13.5 | 0.1 | (0.1) | 80.6 | |||||||||||||||
Gross receipts tax expense | 12.6 | — | — | — | 12.6 | |||||||||||||||
Operating Revenues [GAAP] | $ | 240.9 | $ | 17.5 | $ | 2.0 | $ | (1.7) | $ | 258.7 | ||||||||||
Year Ended September 30, 2018 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 262.2 | $ | 33.8 | $ | (16.3) | $ | — | $ | 279.7 | ||||||||||
Operation and maintenance expenses | 464.1 | 7.4 | 30.3 | (10.1) | 491.7 | |||||||||||||||
Depreciation and amortization | 167.0 | — | 1.4 | — | 168.4 | |||||||||||||||
Taxes, other than income taxes | 152.5 | 0.2 | 0.8 | — | 153.5 | |||||||||||||||
Less: Gross receipts taxes | (98.3) | (0.1) | — | — | (98.4) | |||||||||||||||
Contribution Margin [Non-GAAP] | 947.5 | 41.3 | 16.2 | (10.1) | 994.9 | |||||||||||||||
Natural and propane gas expense | 842.6 | 30.2 | 0.3 | (1.4) | 871.7 | |||||||||||||||
Gross receipts tax expense | 98.3 | 0.1 | — | — | 98.4 | |||||||||||||||
Operating Revenues [GAAP] | $ | 1,888.4 | $ | 71.6 | $ | 16.5 | $ | (11.5) | $ | 1,965.0 | ||||||||||
Year Ended September 30, 2017 | ||||||||||||||||||||
Operating Income (Loss) [GAAP] | $ | 321.6 | $ | 5.2 | $ | (5.1) | $ | — | $ | 321.7 | ||||||||||
Operation and maintenance expenses | 409.1 | 5.9 | 11.8 | (5.5) | 421.3 | |||||||||||||||
Depreciation and amortization | 153.5 | 0.1 | 0.5 | — | 154.1 | |||||||||||||||
Taxes, other than income taxes | 137.8 | 0.5 | 0.2 | — | 138.5 | |||||||||||||||
Less: Gross receipts taxes | (83.0) | (0.1) | — | — | (83.1) | |||||||||||||||
Contribution Margin [Non-GAAP] | 939.0 | 11.6 | 7.4 | (5.5) | 952.5 | |||||||||||||||
Natural and propane gas expense | 645.9 | 67.6 | 0.3 | (8.7) | 705.1 | |||||||||||||||
Gross receipts tax expense | 83.0 | 0.1 | — | — | 83.1 | |||||||||||||||
Operating Revenues [GAAP] | $ | 1,667.9 | $ | 79.3 | $ | 7.7 | $ | (14.2) | $ | 1,740.7 | ||||||||||
View original content:http://www.prnewswire.com/news-releases/spire-reports-2018-results-300750871.html
SOURCE Spire Inc.
Article Date
11/15/201811/14/2018 - Spire Elects Steve Schwartz to Board of Directors
Spire Elects Steve Schwartz to Board of Directors
Source: PR Newswire
ST. LOUIS, Nov. 14, 2018 /PRNewswire/ -- Today, Spire's board of directors announced that it has increased the size of the board from 8 members to 9 and elected Steve Schwartz as its newest member.
Steve, 59, is currently president and chief executive officer of Brooks Automation and a member of its board of directors. Brooks Automation is a leading international provider of automation and cryogenic solutions for multiple markets, including semiconductor manufacturing and life sciences.
"We are pleased to welcome Steve to our board. He brings extensive leadership experience as chief executive officer of a public company that's driving innovation and technology in the manufacturing space," said Ed Glotzbach, board chairman of Spire.
"Innovating through technology is a strategic imperative for Spire. It's one that we are actively deploying across our company," said Suzanne Sitherwood, president and CEO of Spire. "Steve started his career in the innovation space more than 30 years ago. He understands what it takes to nurture and grow an innovative mindset within a company."
As president and chief executive officer of Brooks Automation, Steve provides the strategic vision and execution to assure continued growth in semiconductor and life science markets. Steve began his career at Applied Materials Inc. and has held many senior leadership roles throughout his career, including head of Applied's High Temperature Films division and vice president and general manager of the Services division. He was also president of the first software business unit for Applied Materials. Steve earned bachelor's, master's and doctoral degrees in electrical engineering from Purdue University. He also earned an MBA from the University of Chicago.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our other gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-elects-steve-schwartz-to-board-of-directors-300750690.html
SOURCE Spire Inc.
Article Date
11/14/2018Joe Hampton Named President of Spire's Alabama and Mississippi Utilities
Source: PR Newswire
BIRMINGHAM, Ala., Nov. 14, 2018 /PRNewswire/ -- After serving Spire customers and communities for more than 20 years, Joe Hampton will become president of Spire's Alabama and Mississippi natural gas utilities beginning Dec. 1. He is currently vice president of operations for Spire's western Missouri utility.
"Joe is a proven leader at Spire. As a champion for Spire's values of safety, inclusion and integrity, Joe successfully led our western Missouri utility for the past four years," said Steve Lindsey, CEO of distribution operations and gas utilities for Spire. "We are pleased for him to be returning to his hometown of Birmingham to lead our Alabama and Mississippi natural gas utilities."
Joe will be returning to Birmingham where he began his career at Spire as an engineering intern while completing his bachelor's degrees in physics and electrical engineering. He has held numerous leadership positions in field operations, including all aspects of service, construction and distribution operations, economic development, sales and community development. Joe will replace Ken Smith, who will be retiring Dec. 1.
"Ken's entire career has been dedicated to graciously leading and serving the employees and customers of Spire," said Lindsey. "He cares deeply about this community and the work we do every day."
Ken began his career at Spire in 1981 as an industrial marketing representative. He held positions of increasing responsibility across a number of functional areas, including vice president of operations, vice president of technical and transportation services and most recently, president. As an active member of his community, Ken plans to continue his involvement with many organizations, including the Vapor Ministries and Mountain Brook Community Church.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses, making us the fifth-largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Media Contact:
Jenny Gobble
314-342-3300
Jenny.Gobble@SpireEnergy.com
View original content:http://www.prnewswire.com/news-releases/joe-hampton-named-president-of-spires-alabama-and-mississippi-utilities-300750419.html
SOURCE Spire
Article Date
11/14/2018Scott Carter Named President of Spire's Missouri Utilities
Source: PR Newswire
ST. LOUIS, Nov. 14, 2018 /PRNewswire/ -- Spire has named Scott Carter president of Missouri utilities. Scott will oversee Spire's natural gas utilities in both eastern and western Missouri with a focus on company growth and expanding natural gas service.
"Spire is committed to pouring our energy into a great customer experience and to pursuing opportunities to reach new homes and businesses," said Steve Lindsey, CEO of distribution operations and gas utilities for Spire. "Scott's experience with state regulatory environments and utility operations make him the perfect leader to take Missouri to the next level."
Scott has been with Spire since 2016 serving as chief operating officer of distribution operations. Before joining Spire, he was the senior vice president of commercial operations and chief regulatory officer at AGL Resources Inc., where he worked for 15 years in various operational and leadership roles.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses, making us the fifth-largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Media Contact:
Jenny Gobble
314-342-3300
Jenny.Gobble@SpireEnergy.com
View original content:http://www.prnewswire.com/news-releases/scott-carter-named-president-of-spires-missouri-utilities-300750422.html
SOURCE Spire
Article Date
11/14/2018Spire Offers Cold Weather Rule Payment Plans Starting Today
Source: PR Newswire
ST. LOUIS, Oct. 25, 2018 /PRNewswire/ -- We know the need is great and some of our neighbors feel uneasy as fall turns to winter. For some, colder weather can mean a struggle affording higher heating bills or reconnecting gas service. This year, Spire is helping customers through early availability of our most lenient payment plans, which are designed around the Missouri Cold Weather Rule.
"We want to help as many customers with their natural gas service as temperatures drop. We are excited to offer more payment options to customers earlier than previous years," said Dave Williams, director of customer experience for Spire.
Help is available now. Here's a look at some of the options and plans available:
If a customer needs assistance to stay warm this winter, the best thing to do is give us a call directly. If you live in the St. Louis area, please call Spire at 800-887-4173. In the Kansas City and western Missouri area, please call Spire at 800-582-1234.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses, making us the fifth-largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Media Contact:
Jenny Gobble
314-342-3300
Jenny.Gobble@SpireEnergy.com
View original content:http://www.prnewswire.com/news-releases/spire-offers-cold-weather-rule-payment-plans-starting-today-300738113.html
SOURCE Spire
Article Date
10/25/2018Spire to Host Earnings Conference Call on November 15
Source: PR Newswire
ST. LOUIS, Oct. 25, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Thursday, November 15, to discuss our fiscal 2018 fourth quarter and full year financial results. We will issue our earnings news release before the market opens that day and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
Date and Time: | Thursday, November 15 | |
8 a.m. CT (9 a.m. ET) | ||
Phone Numbers: | U.S. and Canada: | 844-824-3832 |
International: | 412-317-5142 |
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on November 15 until December 15 by dialing 877‑344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10125650. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-november-15-300737881.html
SOURCE Spire Inc.
Article Date
10/25/2018Spire Sends Crews to Help Restore Natural Gas Service in Massachusetts
Source: PR Newswire
ST. LOUIS, Oct. 18, 2018 /PRNewswire/ -- In response to last month's tragedy in the Greater Lawrence area of Massachusetts (near Boston), Spire is sending 26 team members to help restore natural gas service to 8,600 customers by mid-November.
Spire crew members will be installing gas meters, performing safety checks and helping to reactivate gas appliances to get customers safely connected to gas service as Columbia Gas works to quickly replace pipelines in the area. Half of the crews left earlier this week with trucks and supplies. They will be working long hours for two weeks until the next shift of Spire workers arrives to take over and finish the work.
"At Spire, giving back to the community is a part of who we are – even when the community in need is far away. When we asked for volunteers our crews responded immediately," said Tim Goodson, vice president of operations for Spire. "Spire volunteers are picking up and leaving their families and lives for two weeks to help others. We couldn't be prouder of their sacrifice and care for others."
To learn more about the larger effort of Columbia Gas to upgrade pipelines and restore service in this area, please visit the website they have created: www.columbiagas.com/massachusetts/home
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses, making us the fifth-largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Media Contact:
Jenny Gobble
314-342-3300
Jenny.Gobble@SpireEnergy.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-sends-crews-to-help-restore-natural-gas-service-in-massachusetts-300733932.html
SOURCE Spire
Article Date
10/18/20188/3/2018 - Spire STL Pipeline Receives Federal Approval
Spire STL Pipeline Receives Federal Approval
Source: PR Newswire
ST. LOUIS, Aug. 3, 2018 /PRNewswire/ -- Today the Federal Energy Regulatory Commission (FERC) approved an order issuing a Certificate of Public Convenience and Necessity for the Spire STL Pipeline, enabling the St. Louis region to receive a new source of natural gas. With this approval, the pipeline will move forward with land acquisition and other pre-construction activities.
"This approval is great news for people who live and work in the St. Louis region," said Mike Geiselhart, president, Spire STL Pipeline. "This project will provide access to new, abundant sources of domestic natural gas for homes and businesses across our area. The Spire STL Pipeline will improve resiliency and bring greater supply security for years to come."
As a part of the certificate process, the pipeline held community meetings for landowners and community members and met all environmental, cultural and civil standards set by the FERC. Throughout the process the pipeline location, construction plans, suppliers and materials were all selected to ensure the well-being and safety of communities along the route. The 65-mile Spire STL Pipeline will interconnect with the existing Rockies Express Pipeline in Scott County, Illinois and run through Scott, Greene and Jersey counties in Illinois and St. Charles and St. Louis counties in Missouri.
With the approval, we will revise and finalize our construction plan, including a final timeline and targeted in-service date. Based upon our initial evaluation and work with our contractor, as well as our desire to avoid the added costs of wintertime construction, we anticipate the targeted in-service date will move to late calendar 2019. The total project costs are expected to increase modestly to a range of $210 million - $225 million.
Spire Inc. affirms its existing earnings and capital spend guidance for fiscal 2018, as well as its long-term targets for earnings per share growth and capital expenditures. The timing of the project is anticipated to increase expenditures in fiscal 2019.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content with multimedia:http://www.prnewswire.com/news-releases/spire-stl-pipeline-receives-federal-approval-300691990.html
SOURCE Spire Inc.
Article Date
8/3/20187/30/2018 - Spire Changes Date and Time of Earnings Call
Spire Changes Date and Time of Earnings Call
Source: PR Newswire
ST. LOUIS, July 30, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) has changed the date and time of its fiscal 2018 third quarter earnings conference call due to a scheduling conflict. The conference call will now be held Thursday, August 2 at 12 p.m. Central time (1 p.m. Eastern time). We will issue our earnings news release before the market opens that day, and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
|
Date and Time: |
Thursday, August 2 | |
|
12 p.m. CDT (1 p.m. EDT) | ||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
International: |
412-317-5142 | |
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 2 p.m. CDT (3 p.m. EDT) on August 2 until September 1 by dialing 877‑344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10121465. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-changes-date-and-time-of-earnings-call-300688704.html
SOURCE Spire Inc.
Article Date
7/30/2018Spire to Host Earnings Conference Call on July 31
Source: PR Newswire
ST. LOUIS, July 10, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Tuesday, July 31, to discuss our fiscal 2018 third quarter financial results. We will issue our earnings news release before the market opens that day and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
|
Date and Time: |
Tuesday, July 31 |
|
|
8 a.m. CT (9 a.m. ET) |
||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
International: |
412-317-5142 |
The call will be webcast in a listen-only format for the media and public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on July 31 until August 31 by dialing 877‑344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10121465. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-july-31-300678998.html
SOURCE Spire Inc.
Article Date
7/10/20185/18/2018 - Spire to Present at AGA Financial Forum
Spire to Present at AGA Financial Forum
Source: PR Newswire
ST. LOUIS, May 18, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) today announced that members of its management team will present at the 2018 American Gas Association (AGA) Financial Forum in Phoenix, Arizona, on Sunday, May 20, 2018, at 3:00 p.m. local time. Suzanne Sitherwood, president and CEO, and Steve Rasche, executive vice president and CFO, will provide an update on the company's growth initiatives as well as recent performance and developments.
A live webcast of the presentation, along with presentation materials, can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. The presentation will be archived and will be available for replay on our website.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-to-present-at-aga-financial-forum-300651178.html
SOURCE Spire Inc.
Article Date
5/18/2018Spire Announces Public Offering of 2,000,000 Shares of Common Stock
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ST. LOUIS, May 7, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) announced today that it has commenced an underwritten public offering of 2,000,000 shares of its common stock pursuant to an effective registration statement previously filed with the Securities and Exchange Commission. Spire has also granted the underwriters a 30-day option to purchase up to 300,000 additional shares of common stock.
The offering is intended to support investments in ongoing infrastructure upgrades, as well as the Spire STL Pipeline and recently acquired storage assets. To that end, we intend to use the net proceeds from the offering to repay short-term borrowings used to fund such investments as well as for general corporate purposes.
Wells Fargo Securities, Credit Suisse and RBC Capital Markets are acting as joint bookrunners for the offering, and Stifel and Ramirez & Co., Inc. are co-managers. Copies of the preliminary prospectus supplement and accompanying prospectus for the offering may be obtained from:
This news release shall not constitute an offer to sell or the solicitation of any offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses, making us the fifth-largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Our future operating results may be affected by various uncertainties and risk factors, many of which are beyond our control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. For a more complete description of these uncertainties and risk factors, see the preliminary prospectus supplement and accompanying prospectus for the offering, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2017 and our Quarterly Reports on Form 10-Q for the quarters ended December 31, 2017 and March 31, 2018 incorporated by reference therein, each as filed with the Securities and Exchange Commission.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-announces-public-offering-of-2-000-000-shares-of-common-stock-300643901.html
SOURCE Spire Inc.
Article Date
5/7/20185/2/2018 - Spire Reports Second Quarter Results
Spire Reports Second Quarter Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ST. LOUIS, May 2, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported operating results for its fiscal 2018 second quarter ended March 31, 2018. Highlights include:
"During this quarter, we wrapped up two year-long Missouri rate cases and reduced customer rates across all of our gas companies as a result of tax reform," said Suzanne Sitherwood, president and chief executive officer of Spire. "Having successfully managed these two significant matters, we have greater clarity and continued confidence in our growth plan. Our outlook reflects that we are achieving additional organic growth and increasing our capital investment, not only for our gas utilities but across all of our businesses."
|
Second Quarter Results |
Three months ended March 31, | ||||||||||||||||
|
(Millions) |
(Per Diluted Share) | ||||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
|||||||||||||||||
|
Gas Utility |
$ |
131.7 |
$ |
112.2 |
$ |
2.72 |
$ |
2.45 |
|||||||||
|
Gas Marketing |
10.2 |
— |
0.21 |
— |
|||||||||||||
|
Other |
(4.7) |
(3.2) |
(0.10) |
(0.07) |
|||||||||||||
|
Total |
$ |
137.2 |
$ |
109.0 |
$ |
2.83 |
$ |
2.38 |
|||||||||
|
Missouri regulatory adjustments, pre-tax |
(30.6) |
— |
(0.63) |
— |
|||||||||||||
|
Fair value adjustments, pre-tax |
(11.6) |
(1.6) |
(0.23) |
(0.04) |
|||||||||||||
|
Acquisition-related costs, pre-tax |
(2.0) |
(0.1) |
(0.04) |
— |
|||||||||||||
|
Income tax effect of pre-tax adjustments |
11.1 |
0.7 |
0.22 |
0.02 |
|||||||||||||
|
Effects of the Tax Cuts and Jobs Act |
(5.9) |
— |
(0.12) |
— |
|||||||||||||
|
Net Income |
$ |
98.2 |
$ |
108.0 |
$ |
2.03 |
$ |
2.36 |
|||||||||
|
Average Shares Outstanding |
48.4 |
45.7 |
|||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
Consolidated net income for the three months ended March 31, 2018, the second quarter of our fiscal year, was $98.2 million ($2.03 per diluted share), down from $108.0 million ($2.36 per diluted share) in the prior year period.
These GAAP results for the second quarter of fiscal 2018 include significant, largely non-cash regulatory adjustments to reflect the order received in March for our Missouri rate cases. These include the write-off of assets and expenses disallowed by the Missouri Public Service Commission (MoPSC) with a total after-tax impact of $23.6 million (or $0.49 per share) as outlined below.
|
Millions, after tax | |||
|
Certain pension contributions (prior to 1997) |
$17.7 | ||
|
A portion of incentive compensation expense from January 2016 forward |
4.2 | ||
|
The net book value of property sold in 2014 |
1.1 | ||
|
Rate case expenses |
0.6 | ||
|
Total |
$23.6 | ||
Results for the quarter also include the impact of a lower federal income tax rate due to the Tax Cuts and Jobs Act (TCJA). This significant legislation also allowed us, working with our regulators, to lower customer rates across all of our jurisdictions.
Net economic earnings (NEE) exclude from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions and the impacts of acquisition, divestiture and restructuring activities. NEE also excludes the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these impacts include the revaluation of deferred tax assets and liabilities under the TCJA and the write-off of assets related to pension costs and property sold as described above.
NEE for the second quarter of fiscal 2018 were $137.2 million ($2.83 per diluted share), up from $109.0 million ($2.38 per diluted share) last year, reflecting higher earnings in both our Gas Utility and Gas Marketing segments, driven by the benefits of lower federal income taxes and the return to more normal weather. The year-over-year change in per share results was impacted by a 6 percent increase in average shares outstanding tied to the maturity of equity units in April 2017.
Gas Utility
The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. Second quarter NEE were $131.7 million, up from $112.2 million in the prior year, reflecting a higher contribution margin and the benefit of lower federal income taxes, net of amounts now reflected in lower customer rates, partially offset by higher expenses.
Contribution margin increased by $10.1 million, driven by higher usage due to colder weather compared to a year ago ($17.6 million) as well as higher Infrastructure System Replacement Surcharge (ISRS) revenues for the Missouri utilities ($2.2 million) and modest customer growth. These factors were partially offset by a $9.0 million reduction in customer rates at Spire Alabama and Spire Gulf to reflect the benefit of tax reform, and a $1.8 million increase in the regulatory adjustment under Spire Gulf's Rate Stabilization and Equalization (RSE) mechanism.
O&M expenses of $143.6 million for the quarter were up $45.2 million, with $38.4 million of the increase attributable to the gross (pre-tax) write-off of assets and expenses disallowed in our Missouri rate cases, as previously mentioned. Excluding these costs, remaining O&M expenses were up $6.8 million largely due to weather-driven increases in employee-related costs and bad debt expense. Depreciation and amortization expenses increased by $3.2 million from last year, reflecting higher capital investment in infrastructure and technology upgrades, and new business. Taxes other than income increased $9.7 million reflecting higher volume-driven gross receipts taxes.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing and related services on a non-regulated basis across the country, with a core operating footprint in the central U.S. For the second quarter of fiscal 2018, Gas Marketing reported NEE of $10.2 million, compared to break-even results in the prior year. The increase in earnings was driven by improved market conditions and wider basis differentials, partially as a result of colder weather and greater temperature volatility, that resulted in improved margins and increased storage optimization.
Other
Other non-utility operations and corporate costs on an NEE basis for the second quarter were $4.7 million in fiscal 2018, up from $3.2 million a year ago. The increase is largely due to higher after-tax interest expense.
|
Year-to-Date Results |
Six Months Ended March 31, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||||
|
Net Economic Earnings (Loss) by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
191.2 |
$ |
164.0 |
$ |
3.94 |
$ |
3.59 |
||||||||||
|
Gas Marketing |
13.8 |
1.4 |
0.29 |
0.03 |
||||||||||||||
|
Other |
(9.9) |
(8.9) |
(0.21) |
(0.20) |
||||||||||||||
|
Total |
$ |
195.1 |
$ |
156.5 |
$ |
4.02 |
$ |
3.42 |
||||||||||
|
Missouri regulatory adjustments, pre-tax |
(30.6) |
— |
(0.63) |
— |
||||||||||||||
|
Fair value adjustments, pre-tax |
(12.3) |
(5.2) |
(0.25) |
(0.12) |
||||||||||||||
|
Acquisition-related costs, pre-tax |
(3.7) |
(0.2) |
(0.08) |
(0.01) |
||||||||||||||
|
Income tax effect of pre-tax adjustments |
11.7 |
2.1 |
0.24 |
0.05 |
||||||||||||||
|
Effects of the Tax Cuts and Jobs Act |
54.0 |
— |
1.12 |
— |
||||||||||||||
|
Net Income |
$ |
214.2 |
$ |
153.2 |
$ |
4.42 |
$ |
3.34 |
||||||||||
|
Average Shares Outstanding |
48.4 |
45.7 |
||||||||||||||||
For the first six months of fiscal 2018, we reported consolidated net income of $214.2 million (or $4.42 per diluted share) compared to $153.2 million (or $3.34 per diluted share) for the prior year. NEE for the six months ended March 31, 2018 were $195.1 million (or $4.02 per diluted share) up from $156.5 million (or $3.42 per diluted share) a year ago. The increase in NEE reflects the return of normal weather, which benefited our Gas Utility segment and contributed to more favorable market conditions for our Gas Marketing segment. NEE also reflect the net benefits of federal income tax reform and the impact of the 6 percent increase in shares outstanding due to the issuance of shares as noted earlier.
Gas Utility
For the first six months of fiscal 2018, the Gas Utility segment reported NEE of $191.2 million, up from $164.0 million a year ago, reflecting a higher contribution margin and the benefits of lower federal income tax rates, partially offset by higher operating expenses.
Year-to-date segment contribution margin increased by $22.4 million, with $25.9 million due to higher volumes. Contribution margin also benefited from a $5.6 million increase in ISRS revenues and modest customer growth at the Missouri utilities. These positive factors were partially offset by a $9.0 million reduction in customer rates at Spire Alabama and Spire Gulf to reflect the lower federal income taxes, and a $1.8 million increase in Spire Gulf's RSE adjustment.
O&M expenses increased by $43.7 million, or by a net $5.3 million after removing the $38.4 million gross write-off noted earlier. The net O&M increase is largely due to weather-driven increases in employee-related costs and bad debt expense. Depreciation and amortization rose by $5.8 million reflecting increased capital investment across our utilities. Taxes other than income taxes were up $13.0 million due to higher gross receipts taxes reflecting an increase in volumes.
Gas Marketing
Net economic earnings, which exclude adverse mark-to-market and fair value adjustments, were $13.8 million, up from $1.4 million in the prior year. Higher earnings were driven by a $9.2 million increase in contribution margin due to improved market conditions leading to higher overall volumes, margins and storage optimization.
Other
On an NEE basis, year-to-date costs were $9.9 million, up from $8.9 million in the prior-year period. The increase in costs largely reflects a lower tax benefit from the reduction in federal income tax. A significant portion of costs in Other is interest expense on corporate-level debt, which was slightly higher.
Earnings Guidance and Outlook
We expect fiscal 2018 NEE to be in the range of $3.65 to $3.75 per fully diluted share. This range reflects our strong performance in the first half of our fiscal year and the impacts of tax reform now that we have reduced our customer rates across all of our utilities. It also includes the impacts of the Missouri rate cases, including an increase in the annualized run rate of expenses and a change in rate design that will concentrate more of our margins and earnings in the winter heating season.
We have increased our longer-term NEE per share growth target to 4-7 percent. This target uses run-rate 2018 earnings as the base, which removes an estimated $0.17 per share of performance from Spire Marketing due to significantly more favorable market conditions due in large part to weather conditions that are not expected to recur next year. Our growth reflects stronger growth in our utility rate base, as well as continued organic growth across our utilities and increasing contributions from our non-utility businesses.
Our capital expenditures forecast for fiscal 2018 has increased to $500 million, reflecting a $10 million increase in investment for our gas utilities to approximately $425 million. Our five-year capital spend outlook for the fiscal years 2018-2022 is $2.5 billion, a 9 percent increase over our prior five-year forecast through 2021. A significant portion of our capital investment is driven by infrastructure upgrade plans for our gas utilities that are up to 20 years in duration. We expect more than 80 percent of our five-year capital spend will be recovered in rates with minimal lag under regulatory mechanisms or reflected in earnings.
Balance Sheets and Cash Flows
We maintain a strong capital structure with ample liquidity. At March 31, 2018, our long-term capitalization was 49.8 percent equity, compared to 48.7 percent equity capitalization at September 30, 2017, the end of our prior fiscal year. Short-term borrowings outstanding at March 31, 2018 were $391.7 million, down from $567.4 million a year ago, reflecting an increase in long-term borrowing for our gas utilities over the last year. We retain significant capacity in our $975 million revolving credit facility and related commercial paper program to meet our liquidity needs.
Net cash provided by operating activities was $309.6 million for the six months ended March 31, 2018, compared to $226.1 million for the prior-year period. The increase was due to the timing of purchased gas adjustments, fluctuations in working capital items, and higher net income. Capital expenditures for the first six months of fiscal 2018 were $215.8 million, up 15.2 percent from $187.3 million in the prior year, reflecting increased infrastructure upgrades to our gas utilities, investment to support customer growth and new business development, and for the Spire STL Pipeline.
For additional details on Spire's results for the second quarter of fiscal 2018, please see the accompanying unaudited Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
Regulatory Update
Missouri
On March 7, 2018, the MoPSC issued an amended order in the general rate case filings we made in April 2017 for Spire Missouri East and Spire Missouri West. The MoPSC authorized a base rate increase of $66.2 million, or a net decrease of $15.8 million, after including the benefits of lower federal income taxes as a result of tax reform and removing the annualized ISRS surcharge of $49.0 million already included in rates.
|
Impact ($ Millions) |
Customer rates |
Earnings |
|
Base rate increase |
$66.2 |
$66.2 |
|
Rate reduction for tax benefits |
(33.0) |
|
|
Current ISRS reset to zero |
(49.0) |
(49.0) |
|
Amort. of reg. assets and other |
(23.1) | |
|
Total |
($15.8) |
($5.9) |
New customer rates went into effect on April 19, 2018 and reflect significant cost savings and synergies, totaling nearly $70 million, achieved from our growth and transformation over the last several years. Rates are based upon an allowed return on equity of 9.8 percent, an equity capitalization of 54.2 percent for our Missouri utilities, and a rate base of $2.0 billion.
The impact of the new rates on future annual earnings of $5.9 million reflects the net impact of higher expenses not recovered in rates as well as true up of rate base. The reduction in customer rates for the benefit of tax reform does not impact earnings.
As discussed earlier, the MoPSC order disallowed certain assets and expenses, including regulatory assets of certain pension costs from prior to 1997, a portion of capitalized incentive compensation costs, assets related to property sold in 2014, and rate case expenses. While Spire has appealed the MoPSC's decisions on pension costs, assets related to property sold and rate case expenses, a charge of $38.4 million to reflect the write-off of the disallowed costs is included in our financial statements, primarily in O&M expenses on the income statements for the three and six months ended March 31, 2018. The after-tax reduction to net income from these write-offs was $23.6 million, or $0.49 per share.
Alabama and Mississippi
The parameters for the Spire Gulf RSE mechanism were set in September 2017, and effective for rates beginning December 1, 2017. The RSE is based on a return on equity of 10.7 percent and an equity capitalization of 55.5 percent. Spire Gulf refiled its RSE to reflect the impact of the lower federal income tax rate. Effective February 1, 2018, we reduced customer rates by $1.9 million for Spire Gulf and $12.8 million for Spire Alabama to reflect the benefit of lower taxes in fiscal 2018 from January 1 to September 30, 2018.
Similarly, parameters for the Rate Stabilization Adjustment mechanism for Spire Mississippi were approved in April 2018, including a return on equity of 9.34 percent, an equity capitalization of 50 percent, and a rate base of approximately $23 million. Customer rates have been reduced by $0.2 million for the lower federal income taxes in fiscal 2018.
Pipelines and Storage
Our growth strategy includes the development of our Spire STL Pipeline project and investing in natural gas storage.
Spire STL Pipeline is a planned 65-mile natural gas supply pipeline that will provide Spire Missouri East with access to lower-cost shale gas from the Marcellus/Utica producing regions, while enhancing reliability and the diversity of our physical transport portfolio. We anticipate that we will receive later in fiscal 2018 a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission, allowing us to complete the necessary land acquisitions and shift into the construction phase of the project. We continue to expect a 2019 in-service date and a total project cost of $190-$210 million.
As previously announced, in late December 2017, we acquired a majority interest in a natural gas storage facility in Wyoming certificated for 35 Bcf of working gas, for $26 million. Our plans are underway to enhance its operating and financial performance. The operating results of storage, including integration costs, are included in Other, but are excluded from NEE in fiscal 2018.
Dividends
The Spire board of directors declared a quarterly common stock dividend of $0.5625 per share, payable July 3, 2018, to shareholders of record on June 11, 2018. We have continuously paid a cash dividend since 1946, with 2018 marking the 15th consecutive year of increasing dividends on an annualized basis.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2018 second quarter financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, May 2 |
||
|
8 a.m. CT (9 a.m. ET) |
|||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
|
International: |
412-317-5142 |
||
The call will also be webcast in a listen-only format for the media and general public. The webcast (and subsequent replay) can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on May 2 until June 2 by dialing 877‑344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10119141.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-Q for the quarter ended March 31, 2018, to be filed with the Securities and Exchange Commission later today.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these items include the revaluation of deferred tax assets and liabilities due to the federal Tax Cuts and Jobs Act and the write-off of certain long-standing assets related to pension costs and property sold as a result of disallowances in our Missouri rate proceedings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
|
Condensed Consolidated Statements of Income - Unaudited | |||||||||||||||||
|
(In Millions, except per share amounts) |
Three months ended |
Six months ended | |||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||||
|
Operating Revenues: |
|||||||||||||||||
|
Gas Utility |
$ |
790.6 |
$ |
641.1 |
$ |
1,332.5 |
$ |
1,113.4 |
|||||||||
|
Gas Marketing and other |
22.8 |
22.3 |
42.7 |
45.1 |
|||||||||||||
|
Total Operating Revenues |
813.4 |
663.4 |
1,375.2 |
1,158.5 |
|||||||||||||
|
Operating Expenses: |
|||||||||||||||||
|
Gas Utility |
|||||||||||||||||
|
Natural and propane gas |
383.7 |
254.3 |
624.5 |
448.1 |
|||||||||||||
|
Operation and maintenance |
143.6 |
98.4 |
241.5 |
197.8 |
|||||||||||||
|
Depreciation and amortization |
41.1 |
37.9 |
81.4 |
75.6 |
|||||||||||||
|
Taxes, other than income taxes |
58.0 |
48.3 |
94.7 |
81.7 |
|||||||||||||
|
Total Gas Utility Operating Expenses |
626.4 |
438.9 |
1,042.1 |
803.2 |
|||||||||||||
|
Gas Marketing and other |
45.2 |
44.1 |
86.2 |
85.8 |
|||||||||||||
|
Total Operating Expenses |
671.6 |
483.0 |
1,128.3 |
889.0 |
|||||||||||||
|
Operating Income |
141.8 |
180.4 |
246.9 |
269.5 |
|||||||||||||
|
Other Income - Net |
0.7 |
3.6 |
2.9 |
4.1 |
|||||||||||||
|
Interest Charges: |
|||||||||||||||||
|
Interest on long-term debt |
21.0 |
19.2 |
41.7 |
38.3 |
|||||||||||||
|
Other interest charges |
4.4 |
3.5 |
8.1 |
6.5 |
|||||||||||||
|
Total Interest Charges |
25.4 |
22.7 |
49.8 |
44.8 |
|||||||||||||
|
Income Before Income Taxes |
117.1 |
161.3 |
200.0 |
228.8 |
|||||||||||||
|
Income Tax Expense (Benefit) |
18.9 |
53.3 |
(14.2) |
75.6 |
|||||||||||||
|
Net Income |
$ |
98.2 |
$ |
108.0 |
$ |
214.2 |
$ |
153.2 |
|||||||||
|
Weighted Average Number of Common Shares Outstanding: |
|||||||||||||||||
|
Basic |
48.2 |
45.6 |
48.2 |
45.6 |
|||||||||||||
|
Diluted |
48.4 |
45.7 |
48.4 |
45.7 |
|||||||||||||
|
Basic Earnings Per Share of Common Stock |
$ |
2.03 |
$ |
2.36 |
$ |
4.43 |
$ |
3.35 |
|||||||||
|
Diluted Earnings Per Share of Common Stock |
$ |
2.03 |
$ |
2.36 |
$ |
4.42 |
$ |
3.34 |
|||||||||
|
Dividends Declared Per Share of Common Stock |
$ |
0.5625 |
$ |
0.525 |
$ |
1.125 |
$ |
1.05 |
|||||||||
|
Condensed Consolidated Balance Sheets - Unaudited | |||||||||||
|
(In Millions) |
March 31, |
September 30, |
March 31, | ||||||||
|
2018 |
2017 |
2017 | |||||||||
|
ASSETS |
|||||||||||
|
Utility Plant |
$ |
5,403.4 |
$ |
5,278.4 |
$ |
4,978.8 |
|||||
|
Less: Accumulated depreciation and amortization |
1,645.0 |
1,613.2 |
1,585.9 |
||||||||
|
Net Utility Plant |
3,758.4 |
3,665.2 |
3,392.9 |
||||||||
|
Non-utility Property |
116.9 |
52.0 |
26.6 |
||||||||
|
Goodwill |
1,171.6 |
1,171.6 |
1,163.9 |
||||||||
|
Other Investments |
66.4 |
64.2 |
63.2 |
||||||||
|
Other Property and Investments |
1,354.9 |
1,287.8 |
1,253.7 |
||||||||
|
Current Assets: |
|||||||||||
|
Cash and cash equivalents |
17.8 |
7.4 |
19.6 |
||||||||
|
Accounts receivable, net |
388.0 |
271.4 |
345.6 |
||||||||
|
Delayed customer billings |
45.6 |
3.4 |
11.6 |
||||||||
|
Inventories |
128.5 |
225.8 |
146.4 |
||||||||
|
Other |
138.4 |
217.5 |
161.1 |
||||||||
|
Total Current Assets |
718.3 |
725.5 |
684.3 |
||||||||
|
Regulatory Assets and Other Deferred Charges |
755.2 |
868.2 |
925.8 |
||||||||
|
Total Assets |
$ |
6,586.8 |
$ |
6,546.7 |
$ |
6,256.7 |
|||||
|
CAPITALIZATION AND LIABILITIES |
|||||||||||
|
Capitalization: |
|||||||||||
|
Common stock and paid-in capital |
$ |
1,375.7 |
$ |
1,373.9 |
$ |
1,223.4 |
|||||
|
Retained earnings |
773.7 |
614.2 |
655.9 |
||||||||
|
Accumulated other comprehensive income |
4.1 |
3.2 |
3.7 |
||||||||
|
Total Equity |
2,153.5 |
1,991.3 |
1,883.0 |
||||||||
|
Redeemable noncontrolling interest |
6.5 |
— |
— |
||||||||
|
Long-term debt (less current portion) |
2,073.9 |
1,995.0 |
1,925.3 |
||||||||
|
Total Capitalization |
4,233.9 |
3,986.3 |
3,808.3 |
||||||||
|
Current Liabilities: |
|||||||||||
|
Current portion of long-term debt |
105.5 |
100.0 |
— |
||||||||
|
Notes payable |
391.7 |
477.3 |
567.4 |
||||||||
|
Accounts payable |
194.8 |
257.1 |
218.6 |
||||||||
|
Advance customer billings |
8.1 |
32.0 |
14.5 |
||||||||
|
Accrued liabilities and other |
227.9 |
231.5 |
214.8 |
||||||||
|
Total Current Liabilities |
928.0 |
1,097.9 |
1,015.3 |
||||||||
|
Deferred Credits and Other Liabilities: |
|||||||||||
|
Deferred income taxes |
465.6 |
707.5 |
690.6 |
||||||||
|
Pension and postretirement benefit costs |
233.4 |
237.4 |
308.1 |
||||||||
|
Asset retirement obligations |
302.8 |
296.6 |
212.4 |
||||||||
|
Regulatory liabilities |
353.1 |
157.2 |
144.1 |
||||||||
|
Other |
70.0 |
63.8 |
77.9 |
||||||||
|
Total Deferred Credits and Other Liabilities |
1,424.9 |
1,462.5 |
1,433.1 |
||||||||
|
Total Capitalization and Liabilities |
$ |
6,586.8 |
$ |
6,546.7 |
$ |
6,256.7 |
|||||
|
Condensed Consolidated Statements of Cash Flows - Unaudited | |||||||
|
(In Millions) |
Six months ended March 31, | ||||||
|
2018 |
2017 | ||||||
|
Operating Activities: |
|||||||
|
Net Income |
$ |
214.2 |
$ |
153.2 |
|||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
|
Depreciation and amortization |
81.9 |
75.8 |
|||||
|
Deferred income taxes and investment tax credits |
(15.2) |
75.4 |
|||||
|
Changes in assets and liabilities |
(13.1) |
(81.4) |
|||||
|
Other |
41.8 |
3.1 |
|||||
|
Net cash provided by operating activities |
309.6 |
226.1 |
|||||
|
Investing Activities: |
|||||||
|
Capital expenditures |
(215.8) |
(187.3) |
|||||
|
Acquisition activity |
(17.1) |
3.8 |
|||||
|
Other |
(0.4) |
0.6 |
|||||
|
Net cash used in investing activities |
(233.3) |
(182.9) |
|||||
|
Financing Activities: |
|||||||
|
Repayment of long-term debt |
— |
(393.8) |
|||||
|
Issuance of long-term debt |
75.0 |
250.0 |
|||||
|
(Repayment) issuance of short-term debt - net |
(85.6) |
168.7 |
|||||
|
Issuance of common stock |
0.8 |
0.1 |
|||||
|
Dividends paid |
(53.0) |
(46.8) |
|||||
|
Other |
(3.1) |
(7.0) |
|||||
|
Net cash used in financing activities |
(65.9) |
(28.8) |
|||||
|
Net Increase in Cash and Cash Equivalents |
10.4 |
14.4 |
|||||
|
Cash and Cash Equivalents at Beginning of Period |
7.4 |
5.2 |
|||||
|
Cash and Cash Equivalents at End of Period |
$ |
17.8 |
$ |
19.6 |
|||
|
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas |
Other |
Total |
Per Diluted | |||||||||||||||||
|
Three Months Ended March 31, 2018 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
102.5 |
$ |
0.3 |
$ |
(4.6) |
$ |
98.2 |
$ |
2.03 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Missouri regulatory adjustments |
30.6 |
— |
— |
30.6 |
0.63 |
|||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
11.8 |
— |
11.8 |
0.24 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.2) |
— |
(0.2) |
(0.01) |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.2 |
— |
1.8 |
2.0 |
0.04 |
|||||||||||||||||
|
Income tax effect of pre-tax adjustments (1) |
(7.6) |
(3.0) |
(0.5) |
(11.1) |
(0.22) |
|||||||||||||||||
|
Effects of the Tax Cuts and Jobs Act |
6.0 |
1.3 |
(1.4) |
5.9 |
0.12 |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
131.7 |
$ |
10.2 |
$ |
(4.7) |
$ |
137.2 |
$ |
2.83 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
2.12 |
$ |
0.01 |
$ |
(0.10) |
$ |
2.03 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
2.72 |
$ |
0.21 |
$ |
(0.10) |
$ |
2.83 |
||||||||||||||
|
Three Months Ended March 31, 2017 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
112.3 |
$ |
(1.0) |
$ |
(3.3) |
$ |
108.0 |
$ |
2.36 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
1.6 |
— |
1.6 |
0.04 |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
0.1 |
— |
0.1 |
— |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
— |
— |
0.1 |
0.1 |
— |
|||||||||||||||||
|
Income tax effect of pre-tax adjustments (1) |
(0.1) |
(0.6) |
— |
(0.7) |
(0.02) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
112.2 |
$ |
— |
$ |
(3.2) |
$ |
109.0 |
$ |
2.38 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
2.45 |
$ |
(0.02) |
$ |
(0.07) |
$ |
2.36 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
2.45 |
$ |
— |
$ |
(0.07) |
$ |
2.38 |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
|
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Net Economic Earnings and Reconciliation to GAAP - Year-to-Date | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas |
Other |
Total |
Per Diluted | |||||||||||||||||
|
Six Months Ended March 31, 2018 |
||||||||||||||||||||||
|
Net Income (GAAP) |
$ |
147.7 |
$ |
3.8 |
$ |
62.7 |
$ |
214.2 |
$ |
4.42 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Missouri regulatory adjustments |
30.6 |
— |
— |
30.6 |
0.63 |
|||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
12.6 |
— |
12.6 |
0.26 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.3) |
— |
(0.3) |
(0.01) |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.2 |
— |
3.5 |
3.7 |
0.08 |
|||||||||||||||||
|
Income tax effect of pre-tax adjustments (1) |
(7.6) |
(3.2) |
(0.9) |
(11.7) |
(0.24) |
|||||||||||||||||
|
Effects of the Tax Cuts and Jobs Act |
20.3 |
0.9 |
(75.2) |
(54.0) |
(1.12) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
191.2 |
$ |
13.8 |
$ |
(9.9) |
$ |
195.1 |
$ |
4.02 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.05 |
$ |
0.08 |
$ |
1.29 |
$ |
4.42 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.94 |
$ |
0.29 |
$ |
(0.21) |
$ |
4.02 |
||||||||||||||
|
Six Months Ended March 31, 2017 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
164.0 |
$ |
(1.8) |
$ |
(9.0) |
$ |
153.2 |
$ |
3.34 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
5.4 |
— |
5.4 |
0.12 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.2) |
— |
(0.2) |
— |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.1 |
— |
0.1 |
0.2 |
0.01 |
|||||||||||||||||
|
Income tax effect of pre-tax adjustments (1) |
(0.1) |
(2.0) |
— |
(2.1) |
(0.05) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
164.0 |
$ |
1.4 |
$ |
(8.9) |
$ |
156.5 |
$ |
3.42 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.58 |
$ |
(0.04) |
$ |
(0.20) |
$ |
3.34 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.59 |
$ |
0.03 |
$ |
(0.20) |
$ |
3.42 |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
|
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Contribution Margin and Reconciliation to GAAP | ||||||||||||||||||||
|
(In Millions) |
Gas |
Gas |
Other |
Eliminations |
Consolidated | |||||||||||||||
|
Three Months Ended March 31, 2018 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
142.7 |
$ |
1.1 |
$ |
(2.0) |
$ |
— |
$ |
141.8 |
||||||||||
|
Operation and maintenance expenses |
145.8 |
1.5 |
5.8 |
(2.6) |
150.5 |
|||||||||||||||
|
Depreciation and amortization |
41.1 |
— |
0.4 |
— |
41.5 |
|||||||||||||||
|
Taxes, other than income taxes |
58.0 |
0.1 |
0.1 |
— |
58.2 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(43.5) |
(0.1) |
— |
— |
(43.6) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
344.1 |
2.6 |
4.3 |
(2.6) |
348.4 |
|||||||||||||||
|
Natural and propane gas costs |
403.2 |
18.6 |
0.1 |
(0.5) |
421.4 |
|||||||||||||||
|
Gross receipts tax expense |
43.5 |
0.1 |
— |
— |
43.6 |
|||||||||||||||
|
Operating Revenues |
$ |
790.8 |
$ |
21.3 |
$ |
4.4 |
$ |
(3.1) |
$ |
813.4 |
||||||||||
|
Three Months Ended March 31, 2017 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
182.6 |
$ |
(1.7) |
$ |
(0.5) |
$ |
— |
$ |
180.4 |
||||||||||
|
Operation and maintenance expenses |
99.3 |
1.5 |
2.1 |
(1.4) |
101.5 |
|||||||||||||||
|
Depreciation and amortization |
37.9 |
— |
0.1 |
— |
38.0 |
|||||||||||||||
|
Taxes, other than income taxes |
48.3 |
0.1 |
— |
— |
48.4 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(34.1) |
(0.1) |
— |
— |
(34.2) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
334.0 |
(0.2) |
1.7 |
(1.4) |
334.1 |
|||||||||||||||
|
Natural and propane gas costs |
275.6 |
22.3 |
0.1 |
(2.9) |
295.1 |
|||||||||||||||
|
Gross receipts tax expense |
34.1 |
0.1 |
— |
— |
34.2 |
|||||||||||||||
|
Operating Revenues |
$ |
643.7 |
$ |
22.2 |
$ |
1.8 |
$ |
(4.3) |
$ |
663.4 |
||||||||||
|
Six Months Ended March 31, 2018 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
244.5 |
$ |
6.1 |
$ |
(3.7) |
$ |
— |
$ |
246.9 |
||||||||||
|
Operation and maintenance expenses |
245.6 |
3.1 |
10.1 |
(4.9) |
253.9 |
|||||||||||||||
|
Depreciation and amortization |
81.4 |
— |
0.5 |
— |
81.9 |
|||||||||||||||
|
Taxes, other than income taxes |
94.7 |
0.1 |
0.1 |
— |
94.9 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(66.6) |
(0.1) |
— |
— |
(66.7) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
599.6 |
9.2 |
7.0 |
(4.9) |
610.9 |
|||||||||||||||
|
Natural and propane gas costs |
666.6 |
31.6 |
0.2 |
(0.8) |
697.6 |
|||||||||||||||
|
Gross receipts tax expense |
66.6 |
0.1 |
— |
— |
66.7 |
|||||||||||||||
|
Operating Revenues |
$ |
1,332.8 |
$ |
40.9 |
$ |
7.2 |
$ |
(5.7) |
$ |
1,375.2 |
||||||||||
|
Six Months Ended March 31, 2017 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
273.2 |
$ |
(3.0) |
$ |
(0.7) |
$ |
— |
$ |
269.5 |
||||||||||
|
Operation and maintenance expenses |
199.8 |
2.9 |
3.9 |
(2.6) |
204.0 |
|||||||||||||||
|
Depreciation and amortization |
75.6 |
— |
0.2 |
— |
75.8 |
|||||||||||||||
|
Taxes, other than income taxes |
81.7 |
0.2 |
0.1 |
— |
82.0 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(53.1) |
(0.1) |
— |
— |
(53.2) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
577.2 |
— |
3.5 |
(2.6) |
578.1 |
|||||||||||||||
|
Natural and propane gas costs |
490.1 |
43.8 |
0.1 |
(6.8) |
527.2 |
|||||||||||||||
|
Gross receipts tax expense |
53.1 |
0.1 |
— |
— |
53.2 |
|||||||||||||||
|
Operating Revenues |
$ |
1,120.4 |
$ |
43.9 |
$ |
3.6 |
$ |
(9.4) |
$ |
1,158.5 |
||||||||||
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
View original content:http://www.prnewswire.com/news-releases/spire-reports-second-quarter-results-300640899.html
SOURCE Spire Inc.
Article Date
5/2/2018Spire customers in western Missouri will save on bills
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
KANSAS CITY, Mo., March 22, 2018 /PRNewswire/ -- As a result of its recent rate case, Spire customers will pay less for safe and reliable natural gas service starting April 19. Typical residential customers in western Missouri will see their Spire natural gas bill decrease slightly by approximately 40 cents per month. This includes a decrease to the monthly customer charge from $23 to $20. Spire bills remain lower than a decade ago even while the company has upgraded hundreds of miles of pipeline since joining the Spire family five years ago.
These savings are due primarily to the recent growth of Spire and federal tax reform. In the last five years, Spire has grown through acquisitions of natural gas utilities in Missouri, Alabama and Mississippi. Spire's growth into the nation's fifth-largest publicly traded gas utility has resulted in more than $70 million in annual savings for Missouri natural gas customers. These savings have been passed along to customers as a part of this rate case.
Spire is also the first Missouri utility to share the savings of federal tax cuts with customers. Spire asked the Public Service Commission to include the federal tax cut in the rate case to expedite savings to customers, even though the impact of tax reform fell outside the review period of the rate case.
"Several years ago, we made the decision to remake this company with the aim of providing better, more cost-effective service to our customers. The results of those efforts have been nothing short of transformational and have directly led to savings for Spire's Missouri customers. It's a testament to the 3,300 dedicated Spire employees who deliver, and even exceed these ambitious goals," said Scott Carter, Spire COO of distribution operations.
Even while general rates decrease, other services have been added to help customers. These programs include:
Spire hasn't increased base natural gas rates for Missouri customers in eight years for anything other than safety-related and public improvements. This general rate case recovers costs for infrastructure as well as operating and maintenance costs to deliver natural gas safely and reliably to homes and businesses. It is separate from the Cost of Gas rate, which reflects changes in the costs charged by our gas and pipeline suppliers. Missouri requires utilities to file a general rate case every three years to incorporate costs related to pipeline safety upgrades into general rates. As Spire continues to invest in safety and upgrade pipelines, small adjustments will be requested to reflect those costs.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Media Contact:
Jenny Gobble
Jenny.Gobble@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-customers-in-western-missouri-will-save-on-bills-300618429.html
SOURCE Spire Inc.
Article Date
3/22/2018Spire customers in eastern Missouri will save on bills
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ST. LOUIS, March 22, 2018 /PRNewswire/ -- As a result of its recent rate case, Spire customers will pay less for safe and reliable natural gas service starting April 19. Typical residential customers in the St. Louis area will see their Spire natural gas bill decrease by approximately $2 per month. Spire bills remain lower than a decade ago, even while the company has upgraded hundreds of miles of pipeline across the region.
These savings are due primarily to the recent growth of Spire and federal tax reform. In the last five years, Spire has grown through acquisitions of natural gas utilities in Missouri, Alabama and Mississippi. Spire's growth into the nation's fifth-largest publicly traded gas utility has resulted in more than $70 million in annual savings for Missouri natural gas customers. These savings have been passed along to customers as a part of this rate case.
Spire is also the first Missouri utility to share the savings of federal tax cuts with customers. Spire asked the Public Service Commission to include the federal tax cut in the rate case to expedite savings to customers, even though the impact of tax reform fell outside the review period of the rate case.
"Several years ago, we made the decision to remake this company with the aim of providing better, more cost-effective service to our customers. The results of those efforts have been nothing short of transformational and have directly led to savings for Spire's Missouri customers. It's a testament to the 3,300 dedicated Spire employees who deliver, and even exceed these ambitious goals," said Scott Carter, Spire COO of distribution operations.
Even while general rates decrease, other services have been added to help customers. These programs include:
Spire hasn't increased base natural gas rates for Missouri customers in eight years for anything other than safety-related and public improvements. This general rate case recovers costs for infrastructure as well as operating and maintenance costs to deliver natural gas safely and reliably to homes and businesses. It is separate from the Cost of Gas rate, which reflects changes in the costs charged by our gas and pipeline suppliers. Missouri requires utilities to file a general rate case every three years to incorporate costs related to pipeline safety upgrades into general rates. As Spire continues to invest in safety and upgrade pipelines, small adjustments will be requested to reflect those costs.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Media Contact:
Jenny Gobble
Jenny.Gobble@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-customers-in-eastern-missouri-will-save-on-bills-300618425.html
SOURCE Spire Inc.
Article Date
3/22/20182/22/2018 - Spire statement on Missouri rate case decision
Spire statement on Missouri rate case decision
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ST. LOUIS, Feb. 22, 2018 /PRNewswire/ --
"Today's decision is a result of Spire's success in becoming an even more efficient, customer-focused company. While we are still analyzing the impact of the final order from the Missouri Public Service Commission, and will seek to clarify the decisions on several issues, we are pleased to announce Spire customers will see a rate decrease starting March 28.
"We agreed to lower rates, despite the federal tax cuts happening outside of the review period for our case, because it's the right thing to do for our customers. The outcome of this case will help us recover our incremental costs, and by becoming the first Missouri utility to share the benefits of the tax reduction, we can still pass along a net rate decrease for our customers. These rates will also provide more funding to help customers better manage their bills, from energy assistance for low-income customers to efficiency programs to help conserve energy use.
"Our Missouri natural gas customers pay less today than they did a decade ago for service that is better and more reliable thanks to an improved customer experience through our new web portal and hundreds of miles of pipeline upgrades. For more than eight years we have been able to forego increasing base natural gas rates for anything other than investments in safety-related and mandated public improvements. That's because our growth into the nation's fifth-largest publicly traded gas utility has produced more than $70 million in annual savings for Missouri natural gas customers.
"Spire employees have worked tirelessly to remake our company with the aim of providing even better, more cost-effective service for our customers, while supporting our communities. The results have been extraordinary. I want to thank every single one of our employees for their efforts to transform Spire. We couldn't be prouder."
—Steve Lindsey, EVP and COO of Distribution Operations and Gas Utilities
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-statement-on-missouri-rate-case-decision-300602742.html
SOURCE Spire Inc.
Article Date
2/22/20182/1/2018 - Spire Reports First Quarter Results
Spire Reports First Quarter Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ST. LOUIS, Feb. 1, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported operating results for its fiscal 2018 first quarter ended December 31, 2017. Highlights include:
"We are off to another solid start in fiscal 2018, building on our momentum from last year. We invested further in infrastructure and technology to deliver even better service, reliability and cost effectiveness for the 1.7 million homes and businesses we serve," said Suzanne Sitherwood, president and chief executive officer of Spire. "We continue to progress on our growth strategy with our Spire STL Pipeline and our acquisition of a natural gas storage facility. Our run-rate earnings of $1.19 per share are solid, and with the passage of tax reform, we are working with our state regulators to determine how to pass the benefits of lower tax rates to our customers. Overall, we are on track with our strategies to deliver long-term growth and keep our promises to our shareholders, customers, communities and employees."
|
First Quarter Results |
Three months ended December 31, | ||||||||||||||||
|
(Millions) |
(Per Diluted Share) | ||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
|||||||||||||||||
|
Gas Utility |
$ |
59.5 |
$ |
51.8 |
$ |
1.22 |
$ |
1.13 |
|||||||||
|
Gas Marketing |
3.6 |
1.4 |
0.08 |
0.03 |
|||||||||||||
|
Other |
(5.2) |
(5.7) |
(0.11) |
(0.12) |
|||||||||||||
|
Total |
$ |
57.9 |
$ |
47.5 |
$ |
1.19 |
$ |
1.04 |
|||||||||
|
Acquisition-related costs, pre-tax |
(1.7) |
(0.1) |
(0.04) |
— |
|||||||||||||
|
Fair value adjustments, pre-tax |
(0.7) |
(3.6) |
(0.02) |
(0.08) |
|||||||||||||
|
Income tax effect of pre-tax adjustments |
0.6 |
1.4 |
0.02 |
0.03 |
|||||||||||||
|
Effects of Tax Cuts and Jobs Act |
59.9 |
— |
1.24 |
— |
|||||||||||||
|
Net Income |
$ |
116.0 |
$ |
45.2 |
$ |
2.39 |
$ |
0.99 |
|||||||||
|
Average Shares Outstanding |
48.4 |
45.7 |
|||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
Results for the three months ended December 31, 2017, the first quarter of our fiscal year, include significant, largely non-cash adjustments, required to reflect the estimated impact of the federal Tax Cuts and Jobs Act which was enacted in late December. Those adjustments include revaluing existing deferred tax assets and liabilities that were established under higher tax rates that will reverse under a new, lower rate embodied in the legislation. For additional details on the tax law changes and the impacts on Spire, please see "Tax Reform" later in this release.
As a result, consolidated net income for the quarter was $116.0 million ($2.39 per diluted share), including $59.9 million ($1.24 per share) of tax reform-driven adjustments, compared to $45.2 million ($0.99 per share) in the prior year period.
Net economic earnings (NEE) for the first quarter of fiscal 2018 were $57.9 million ($1.19 per share), up from $47.5 million ($1.04 per share) last year, due to higher earnings in both our Gas Utility and Gas Marketing segments, reflecting the return to more normal weather compared to warmer-than-normal temperatures a year ago. The year-over-year change in per share results was impacted by a 6 percent increase in average shares outstanding reflecting the issuance of shares in April 2017 upon the maturity of equity units originally issued in 2014.
NEE excludes from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions as well as acquisition, divestiture and restructuring activities. Beginning this quarter, we are also excluding the largely non-cash impact of the recently enacted Tax Cuts and Jobs Act including related amounts that may be subject to regulatory treatment. We believe that this presentation provides clarity into the true run-rate earnings of our business. See "Balance Sheets and Cash Flows" later in this release for details.
Gas Utility
The Gas Utility segment includes the regulated gas distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. First quarter NEE was $59.5 million, up from $51.8 million in the prior year, with the increase due to a higher contribution margin and lower operation and maintenance (O&M) expenses.
Contribution margin increased by $12.3 million, with the majority of the increase ($7.9 million) reflecting higher usage due to the return of more normal weather compared to a year ago. Contribution margin also benefited from higher Infrastructure System Replacement Surcharge (ISRS) revenues for the Missouri Utilities ($3.4 million) and modest customer growth.
O&M expenses of $97.9 million for the quarter were down $1.5 million, reflecting lower maintenance expenses partially offset by higher employee-related costs and bad debt expense. Depreciation and amortization expenses increased by $2.6 million from last year, reflecting higher capital investment in infrastructure and technology upgrades, and new business. Taxes other than income increased $3.3 million due to higher gross receipts taxes.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing and related services on a non-regulated basis across the country, with a core operating footprint in the central U.S. For the first quarter of fiscal 2018, Gas Marketing reported NEE of $3.6 million, up from $1.4 million in the prior year, reflecting greater regional basis differentials (spreads) and increased storage optimization in the current-year quarter, both driven by the colder weather this year versus last.
Other
Other non-utility operations and corporate costs on an NEE basis for the first quarter were $5.2 million in fiscal 2018, down from $5.7 million a year ago, with costs in both periods reflecting principally interest expense associated with acquisition-related debt.
Balance Sheets and Cash Flows
We maintain a strong capital structure with ample liquidity. At December 31, 2017, we had a long-term capitalization of 49.4 percent equity, compared to 48.7 percent equity capitalization at September 30, 2017, the end of our prior fiscal year. Short-term borrowings outstanding at December 31, 2017 were $583.6 million compared to $506.4 million a year ago. These levels reflect the highly seasonal nature of our working capital needs, which typically peak in this time period, and we retain significant capacity in our $975 million revolving credit facility and related commercial paper program to meet liquidity needs.
In December and January, Spire Alabama issued and sold, through private placement, an aggregate amount of $75 million of senior notes. The new debt consisted of $30 million in 40-year notes at an annual interest rate of 4.02 percent issued on December 1, 2017, and $45 million in 30-year notes at 3.92 percent issued on January 12, 2018. Spire Alabama used the proceeds to repay short-term debt and for general corporate purposes.
Net cash provided by operating activities was $17.9 million for the three months ended December 31, 2017, compared to $10.3 million for the first quarter a year ago. The increase is primarily due to higher net income, net of the non-cash impact of tax reform, as discussed further below. Capital expenditures for the first three months of fiscal 2018 were $110.8 million, up from $89.3 million in the prior year, reflecting increased infrastructure upgrades to our gas utilities, investment to support customer growth and new business development, and for our Spire STL Pipeline.
For additional details on Spire's results for the first quarter of fiscal 2018, please see the accompanying unaudited Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
Tax Reform
The Tax Cuts and Jobs Act, signed into law on December 22, 2017, includes significant reform of the tax code including a reduction in the corporate income tax rate from 35 percent to 21 percent. The specific provisions related to regulated public utilities generally allow for continued deductibility of interest expense, elimination of full expensing of property for tax purposes and the continuation of favorable individual tax treatment of dividends.
U.S. GAAP requires that the impact of the tax law changes be recognized in the period when the law is enacted, including the re-measurement of deferred tax assets and liabilities. We have recorded the impact this quarter based on available information and guidance. It is important to note that changes in deferred taxes within our regulated operations are recorded as adjustments to regulatory or liability accounts. The changes in deferred taxes outside of these operations are recorded as adjustments to income tax expense.
For the quarter, the largely non-cash impacts in our results from operations were a decrease to income tax expense (increase to earnings) of $59.9 million ($1.24 per share).
We are currently working with our state regulators to determine how to pass the benefits of lower tax rates to our customers.
Regulatory Update
Missouri Rate Cases
In April 2017, Spire Missouri East and Spire Missouri West each filed with the Missouri Public Service Commission (MoPSC) a general rate case, requesting proposed rate changes. These requests were the first to be made by our Missouri utilities in approximately four years.
Spire Missouri's initial request represents an incremental revenue increase of $59 million, which is net of $49 million that is currently being recovered through ISRS. Even with the requested increases, our Missouri customers will be paying less than they did ten years ago for their natural gas service.
Our requests are premised on a combined Missouri rate base of $2.0 billion, an equity capitalization for the Missouri utilities of 54.2 percent, and a return on equity of 10.35 percent. They reflect the significant infrastructure and technology investments we have made over that time, which have resulted in enhanced safety, reliability and customer service levels of our Missouri customers. The requests also reflect significant cost savings and synergies, totaling nearly $70 million, achieved from our growth and transformation driven by acquisition and integration of other gas utilities over the last several years.
The MoPSC has been discussing the issues in our rate case at its weekly agenda meetings, including one held on January 31. While the case has not been decided, we are very disappointed and concerned over the tenor and direction of the discussions, including the adoption of several positions that run contrary to good business practice or serve to weaken customer protections. We strongly believe that an appropriate level of equity capitalization and fair and reasonable recovery of our costs are necessary to properly reward and incent Spire Missouri to continue to make the right investments and take other steps that benefit our customers.
The regulatory process in Missouri provides the MoPSC up to 11 months to adjudicate the case, meaning new rates would go into effect in March 2018. A decision by the MoPSC is expected in mid-February.
On January 18, 2018, the MoPSC issued an order directing Spire and the MoPSC Staff to file information regarding adjustments to Spire's rates needed to reflect the impact of tax reform under the Tax Cuts and Jobs Act. Spire made its filing on January 22 and the Staff made a reply filing on January 25. A hearing has been set for February 5.
Pipelines and Storage
Our growth strategy includes the development of our Spire STL Pipeline project and investing in natural gas storage.
We anticipate that in early calendar 2018, the Federal Energy Regulatory Commission (FERC) will issue a Certificate of Public Convenience and Necessity for our Spire STL Pipeline, approving the project. This FERC approval is an important milestone that will allow us to complete the necessary land acquisitions and shift into the construction phase of the project.
Spire STL Pipeline is a planned 65-mile natural gas supply pipeline that will provide Spire Missouri East with access to lower-cost shale gas from the Marcellus/Utica producing regions. It will also enhance reliability and the diversity of our physical transport portfolio. Based on our expected in-service date of mid-fiscal 2019, the estimated project cost remains $190 million-$210 million.
In late December 2017, we acquired a majority interest in Ryckman Creek Resources, LLC, a natural gas storage facility in Wyoming certificated for 35 Bcf of working gas. The purchase price was $26 million, and we intend to invest at least $15 million in the facility over the next two years to enhance its operating and financial performance. The facility's results of operations will be included in our financial statements beginning in the second quarter of fiscal 2018, but these results, including integration costs, will be excluded from NEE in fiscal 2018.
Dividends
The Spire board of directors declared a quarterly common stock dividend of $0.5625 per share, payable April 3, 2018, to shareholders of record on March 12, 2018. We have continuously paid a cash dividend since 1946, with 2018 marking the 15th consecutive year of increasing dividends on an annualized basis.
Outlook
Our capital expenditures forecast for fiscal 2018 is approximately $490 million, with investment in our gas utilities of approximately $415 million and expenditures for our Spire STL Pipeline and natural gas storage estimated to be $75 million. Our five-year capital spend outlook for the fiscal years 2017-2021 remains approximately $2.3 billion. We expect more than 80 percent of our five-year capital spend will be recovered in rates with minimal lag under regulatory mechanisms or reflected in earnings.
We anticipate providing an update to our 2018 plan as well as our longer-term targets with our earnings release for the quarter ended March 31, 2018.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2018 first quarter financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
|
Date and Time: |
Thursday, February 1 |
||
|
8 a.m. CT (9 a.m. ET) |
|||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
|
International: |
412-317-5142 |
||
The call will also be webcast in a listen-only format for the media and general public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on February 1 until March 2 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10115276. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-Q for the quarter ended December 31, 2017, to be filed with the Securities and Exchange Commission later today.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions as well as acquisition, divestiture and restructuring activities. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. In calculating net economic earnings, management also excludes from net income the largely non-cash impacts of the recently enacted federal Tax Cuts and Jobs Act including related amounts that may be subject to regulatory treatment. Management believes that excluding the impacts of tax reform provides visibility into the true run-rate earnings of the Company. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
|
Condensed Consolidated Statements of Income - Unaudited | |||||||||
|
(In Millions, except per share amounts) |
Three months ended | ||||||||
|
2017 |
2016 | ||||||||
|
Operating Revenues: |
|||||||||
|
Gas Utility |
$ |
541.9 |
$ |
472.3 |
|||||
|
Gas Marketing and other |
19.9 |
22.8 |
|||||||
|
Total Operating Revenues |
561.8 |
495.1 |
|||||||
|
Operating Expenses: |
|||||||||
|
Gas Utility |
|||||||||
|
Natural and propane gas |
240.8 |
193.8 |
|||||||
|
Operation and maintenance |
97.9 |
99.4 |
|||||||
|
Depreciation and amortization |
40.3 |
37.7 |
|||||||
|
Taxes, other than income taxes |
36.7 |
33.4 |
|||||||
|
Total Gas Utility Operating Expenses |
415.7 |
364.3 |
|||||||
|
Gas Marketing and other |
41.0 |
41.7 |
|||||||
|
Total Operating Expenses |
456.7 |
406.0 |
|||||||
|
Operating Income |
105.1 |
89.1 |
|||||||
|
Other Income |
2.2 |
0.5 |
|||||||
|
Interest Charges: |
|||||||||
|
Interest on long-term debt |
20.7 |
19.1 |
|||||||
|
Other interest charges |
3.7 |
3.0 |
|||||||
|
Total Interest Charges |
24.4 |
22.1 |
|||||||
|
Income Before Income Taxes |
82.9 |
67.5 |
|||||||
|
Income Tax (Benefit) Expense |
(33.1) |
22.3 |
|||||||
|
Net Income |
$ |
116.0 |
$ |
45.2 |
|||||
|
Weighted Average Number of Common Shares Outstanding: |
|||||||||
|
Basic |
48.2 |
45.5 |
|||||||
|
Diluted |
48.4 |
45.7 |
|||||||
|
Basic Earnings Per Share of Common Stock |
$ |
2.40 |
$ |
0.99 |
|||||
|
Diluted Earnings Per Share of Common Stock |
$ |
2.39 |
$ |
0.99 |
|||||
|
Dividends Declared Per Share of Common Stock |
$ |
0.5625 |
$ |
0.525 |
|||||
|
Condensed Consolidated Balance Sheets - Unaudited | |||||||||||
|
(In Millions) |
December 31, |
September 30, |
December 31, | ||||||||
|
2017 |
2017 |
2016 | |||||||||
|
ASSETS |
|||||||||||
|
Utility Plant |
$ |
5,351.7 |
$ |
5,278.4 |
$ |
4,893.2 |
|||||
|
Less: Accumulated depreciation and amortization |
1,641.0 |
1,613.2 |
1,561.4 |
||||||||
|
Net Utility Plant |
3,710.7 |
3,665.2 |
3,331.8 |
||||||||
|
Non-utility Property |
105.3 |
52.0 |
19.7 |
||||||||
|
Goodwill |
1,171.6 |
1,171.6 |
1,161.4 |
||||||||
|
Other Investments |
66.3 |
64.2 |
61.9 |
||||||||
|
Other Property and Investments |
1,343.2 |
1,287.8 |
1,243.0 |
||||||||
|
Current Assets: |
|||||||||||
|
Cash and cash equivalents |
6.7 |
7.4 |
10.6 |
||||||||
|
Accounts receivable, net |
447.6 |
271.4 |
422.7 |
||||||||
|
Delayed customer billings |
7.5 |
3.4 |
5.3 |
||||||||
|
Inventories |
204.9 |
225.8 |
190.5 |
||||||||
|
Other |
185.8 |
217.5 |
186.5 |
||||||||
|
Total Current Assets |
852.5 |
725.5 |
815.6 |
||||||||
|
Regulatory Assets and Other Deferred Charges |
794.7 |
868.2 |
919.7 |
||||||||
|
Total Assets |
$ |
6,701.1 |
$ |
6,546.7 |
$ |
6,310.1 |
|||||
|
CAPITALIZATION AND LIABILITIES |
|||||||||||
|
Capitalization: |
|||||||||||
|
Common stock and paid-in capital |
$ |
1,373.2 |
$ |
1,373.9 |
$ |
1,221.4 |
|||||
|
Retained earnings |
703.0 |
614.2 |
572.1 |
||||||||
|
Accumulated other comprehensive income |
3.0 |
3.2 |
3.2 |
||||||||
|
Noncontrolling interest |
6.5 |
— |
— |
||||||||
|
Total Equity |
2,085.7 |
1,991.3 |
1,796.7 |
||||||||
|
Long-term debt |
2,030.0 |
1,995.0 |
1,821.3 |
||||||||
|
Total Capitalization |
4,115.7 |
3,986.3 |
3,618.0 |
||||||||
|
Current Liabilities: |
|||||||||||
|
Current portion of long-term debt |
105.5 |
100.0 |
250.0 |
||||||||
|
Notes payable |
583.6 |
477.3 |
506.4 |
||||||||
|
Accounts payable |
245.6 |
257.1 |
273.8 |
||||||||
|
Advance customer billings |
27.3 |
32.0 |
60.2 |
||||||||
|
Accrued liabilities and other |
249.3 |
231.5 |
251.8 |
||||||||
|
Total Current Liabilities |
1,211.3 |
1,097.9 |
1,342.2 |
||||||||
|
Deferred Credits and Other Liabilities: |
|||||||||||
|
Deferred income taxes |
441.0 |
707.5 |
636.5 |
||||||||
|
Pension and postretirement benefit costs |
233.6 |
237.4 |
296.3 |
||||||||
|
Asset retirement obligations |
299.7 |
296.6 |
208.7 |
||||||||
|
Regulatory liabilities |
335.1 |
157.2 |
132.1 |
||||||||
|
Other |
64.7 |
63.8 |
76.3 |
||||||||
|
Total Deferred Credits and Other Liabilities |
1,374.1 |
1,462.5 |
1,349.9 |
||||||||
|
Total Capitalization and Liabilities |
$ |
6,701.1 |
$ |
6,546.7 |
$ |
6,310.1 |
|||||
|
Condensed Consolidated Statements of Cash Flows - Unaudited | |||||||
|
(In Millions) |
Three months ended December 31, | ||||||
|
2017 |
2016 | ||||||
|
Operating Activities: |
|||||||
|
Net Income |
$ |
116.0 |
$ |
45.2 |
|||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
|
Depreciation and amortization |
40.4 |
37.8 |
|||||
|
Deferred income taxes and investment tax credits |
(33.6) |
22.1 |
|||||
|
Changes in assets and liabilities |
(106.7) |
(96.5) |
|||||
|
Other |
1.8 |
1.7 |
|||||
|
Net cash provided by operating activities |
17.9 |
10.3 |
|||||
|
Investing Activities: |
|||||||
|
Capital expenditures |
(110.8) |
(89.3) |
|||||
|
Acquisition activity |
(16.0) |
3.8 |
|||||
|
Other |
0.1 |
(0.4) |
|||||
|
Net cash used in investing activities |
(126.7) |
(85.9) |
|||||
|
Financing Activities: |
|||||||
|
Issuance of long-term debt |
30.0 |
— |
|||||
|
Issuance of short-term debt - net |
106.3 |
107.7 |
|||||
|
Issuance of common stock |
0.3 |
0.1 |
|||||
|
Dividends paid |
(25.8) |
(22.8) |
|||||
|
Other |
(2.7) |
(4.0) |
|||||
|
Net cash provided by financing activities |
108.1 |
81.0 |
|||||
|
Net (Decrease) Increase in Cash and Cash Equivalents |
(0.7) |
5.4 |
|||||
|
Cash and Cash Equivalents at Beginning of Period |
7.4 |
5.2 |
|||||
|
Cash and Cash Equivalents at End of Period |
$ |
6.7 |
$ |
10.6 |
|||
|
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas |
Other |
Total |
Per Diluted | |||||||||||||||||
|
Three Months Ended December 31, 2017 |
||||||||||||||||||||||
|
Net Income (GAAP) |
$ |
45.2 |
$ |
3.5 |
$ |
67.3 |
$ |
116.0 |
$ |
2.39 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
0.8 |
— |
0.8 |
0.02 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
— |
— |
1.7 |
1.7 |
0.04 |
|||||||||||||||||
|
Income tax effect of pre-tax adjustments (1) |
— |
(0.2) |
(0.4) |
(0.6) |
(0.02) |
|||||||||||||||||
|
Effects of Tax Cuts and Jobs Act |
14.3 |
(0.4) |
(73.8) |
(59.9) |
(1.24) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
59.5 |
$ |
3.6 |
$ |
(5.2) |
$ |
57.9 |
$ |
1.19 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
0.93 |
$ |
0.07 |
$ |
1.39 |
$ |
2.39 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
1.22 |
$ |
0.08 |
$ |
(0.11) |
$ |
1.19 |
||||||||||||||
|
Three Months Ended December 31, 2016 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
51.7 |
$ |
(0.8) |
$ |
(5.7) |
$ |
45.2 |
$ |
0.99 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
3.8 |
— |
3.8 |
0.08 |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.1 |
— |
— |
0.1 |
— |
|||||||||||||||||
|
Income tax effect of pre-tax adjustments (1) |
— |
(1.4) |
— |
(1.4) |
(0.03) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
51.8 |
$ |
1.4 |
$ |
(5.7) |
$ |
47.5 |
$ |
1.04 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
1.13 |
$ |
(0.02) |
$ |
(0.12) |
$ |
0.99 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
1.13 |
$ |
0.03 |
$ |
(0.12) |
$ |
1.04 |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
|
(2) Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Contribution Margin and Reconciliation to GAAP | ||||||||||||||||||||
|
(In Millions) |
Gas |
Gas |
Other |
Eliminations |
Consolidated | |||||||||||||||
|
Three Months Ended December 31, 2017 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
101.8 |
$ |
5.0 |
$ |
(1.7) |
$ |
— |
$ |
105.1 |
||||||||||
|
Operation and maintenance expenses |
99.8 |
1.6 |
4.3 |
(2.3) |
103.4 |
|||||||||||||||
|
Depreciation and amortization |
40.3 |
— |
0.1 |
— |
40.4 |
|||||||||||||||
|
Taxes, other than income taxes |
36.7 |
— |
— |
— |
36.7 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(23.1) |
— |
— |
— |
(23.1) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
255.5 |
6.6 |
2.7 |
(2.3) |
262.5 |
|||||||||||||||
|
Natural and propane gas costs |
263.4 |
13.0 |
0.1 |
(0.3) |
276.2 |
|||||||||||||||
|
Gross receipts tax expense |
23.1 |
— |
— |
— |
23.1 |
|||||||||||||||
|
Operating Revenues |
$ |
542.0 |
$ |
19.6 |
$ |
2.8 |
$ |
(2.6) |
$ |
561.8 |
||||||||||
|
Three Months Ended December 31, 2016 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
90.6 |
$ |
(1.3) |
$ |
(0.2) |
$ |
— |
$ |
89.1 |
||||||||||
|
Operation and maintenance expenses |
100.5 |
1.4 |
1.8 |
(1.2) |
102.5 |
|||||||||||||||
|
Depreciation and amortization |
37.7 |
— |
0.1 |
— |
37.8 |
|||||||||||||||
|
Taxes, other than income taxes |
33.4 |
0.1 |
0.1 |
— |
33.6 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(19.0) |
— |
— |
— |
(19.0) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
243.2 |
0.2 |
1.8 |
(1.2) |
244.0 |
|||||||||||||||
|
Natural and propane gas costs |
214.5 |
21.5 |
— |
(3.9) |
232.1 |
|||||||||||||||
|
Gross receipts tax expense |
19.0 |
— |
— |
— |
19.0 |
|||||||||||||||
|
Operating Revenues |
$ |
476.7 |
$ |
21.7 |
$ |
1.8 |
$ |
(5.1) |
$ |
495.1 |
||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/spire-reports-first-quarter-results-300591693.html
SOURCE Spire Inc.
Article Date
2/1/20181/29/2018 - Spire Changes Date of Earnings Conference Call
Spire Changes Date of Earnings Conference Call
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ST. LOUIS, Jan. 29, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) has changed the date of its earnings conference call for the first quarter of fiscal 2018 to Thursday, February 1, one day later than originally scheduled in order to avoid a scheduling conflict.
All other details for the conference call and webcast are unchanged and are included below for your convenience.
|
Date and Time: |
Thursday, February 1 |
|
8:00 a.m. CT (9:00 a.m. ET) | |
|
Phone Numbers: |
U.S. and Canada: 844-824-3832 |
|
International: 412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11:00 a.m. ET) on February 1 until March 2 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10115276. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under Events & presentations.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-changes-date-of-earnings-conference-call-300589792.html
SOURCE Spire Inc.
Article Date
1/29/2018Spire to Host Earnings Conference Call on January 31
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ST. LOUIS, Jan. 5, 2018 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, January 31, to discuss our fiscal 2018 first quarter financial results. We will issue our earnings news release before the market opens that day and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, January 31 |
|
|
8 a.m. CT (9 a.m. ET) |
||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
International: |
412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on January 31 until March 2 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10115276. A replay of the webcast will be available on our website at Investors.SpireEnergy.com under the Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-january-31-300578229.html
SOURCE Spire Inc.
Article Date
1/5/201811/15/2017 - Spire Reports 2017 Results
Spire Reports 2017 Results
Source: PR Newswire
ST. LOUIS, Nov. 15, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported results for its fiscal 2017 full year and fourth quarter ended September 30. Highlights include:
"Fiscal 2017 was a year of significant achievements as we delivered on our plans across the entire company. We achieved earnings per share in line with our growth expectations, grew the number of homes and businesses we serve, increased our investment in infrastructure, and further improved our operating performance. At the same time we rolled out technology enhancements to provide an even better service experience for our customers," said Suzanne Sitherwood, president and chief executive officer of Spire. "We also successfully completed the transition of our five gas companies to Spire, aligning them under one name, representing a shared promise to bring people and energy together in ways that enrich lives, support the communities we serve and add value for shareholders."
|
Fiscal 2017 Results |
Year ended September 30, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
181.5 |
$ |
160.3 |
$ |
3.86 |
$ |
3.67 |
||||||||||
|
Gas Marketing |
6.8 |
6.4 |
0.14 |
0.15 |
||||||||||||||
|
Other |
(20.7) |
(17.6) |
(0.44) |
(0.40) |
||||||||||||||
|
Total |
$ |
167.6 |
$ |
149.1 |
$ |
3.56 |
$ |
3.42 |
||||||||||
|
Acquisition-related pre-tax costs |
(4.0) |
(9.2) |
(0.09) |
(0.21) |
||||||||||||||
|
Fair value adjustments, pre-tax |
(5.7) |
1.5 |
(0.12) |
0.03 |
||||||||||||||
|
Income tax effect of adjustments |
3.7 |
2.8 |
0.08 |
0.06 |
||||||||||||||
|
Acquisition-related shares adjustment |
— |
— |
— |
(0.06) |
||||||||||||||
|
Net Income |
$ |
161.6 |
$ |
144.2 |
$ |
3.43 |
$ |
3.24 |
||||||||||
|
Average Shares Outstanding in Millions |
47.0 |
44.3 |
||||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For fiscal 2017, we reported consolidated net income of $161.6 million (or $3.43 per diluted share) compared to $144.2 million (or $3.24 per diluted share) for the prior year. Net economic earnings (NEE) for the year were $167.6 million (or $3.56 per share) up from $149.1 million (or $3.42 per share) a year ago. This 4.1 percent increase in earnings per share reflects higher Gas Utility results driven by growth in Missouri and Alabama, and higher Gas Marketing results, partially offset by modestly higher corporate costs.
NEE excludes from net income the effect of unrealized gains and losses on energy-related derivatives, as well as the impacts of acquisition, divestiture and restructuring activities.
Per share results were impacted by a 6.1 percent increase in average shares outstanding reflecting equity issuance in May 2016 in connection with the financing of the EnergySouth acquisition and in April 2017 upon the conversion of equity units.
Gas Utility
The Gas Utility segment includes the regulated gas distribution operations of our five utilities across Alabama, Mississippi and Missouri. Effective September 25, 2017, all of our utilities transitioned to the Spire name. As a result, Laclede Gas and MGE are now Spire Missouri East and Spire Missouri West, respectively (collectively Spire Missouri), Alagasco is now Spire Alabama, and the EnergySouth entities are now Spire Gulf and Spire Mississippi (formerly Mobile Gas and Willmut Gas, respectively).
For fiscal 2017, Gas Utility net income was $180.5 million compared to $159.0 million in the prior year. Segment NEE for the year was $181.5 million, up from $160.3 million in 2016, reflecting the addition of EnergySouth and improved results from Spire Missouri and Spire Alabama despite lower demand from warmer weather than a year ago.
Contribution margin (non-GAAP; see "Contribution Margin and Reconciliation to GAAP") was $939.0 million, an increase of $94.6 million over prior year, including $66.6 million from the addition of EnergySouth. Winter weather was warmer than in the prior year, which reduced margin by $8.6 million. This was more than offset by $19.2 million in lower regulatory adjustments to revenues and higher benefit sharing under the Cost Containment Measure for Spire Alabama, and $14.2 million higher Infrastructure System Replacement Surcharge (ISRS) revenues at Spire Missouri.
Operation and maintenance (O&M) expenses of $405.0 million were up $27.5 million. Excluding $33.5 million in operating costs associated with EnergySouth, O&M expenses were $6.0 million lower in fiscal 2017. The lower costs were largely due to weather during the heating season being warmer compared to last year, which resulted in lower employee-related costs across our other utilities. Depreciation and amortization rose by $16.6 million, with $10.0 million attributable to the addition of EnergySouth, and the remainder reflecting increased capital investment including infrastructure upgrades at Spire Missouri and Spire Alabama.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing services across the country with its core footprint being in the central U.S. Net income for the segment was $3.4 million for fiscal 2017, down from $7.1 million a year ago, principally due to year-over-year changes in fair value adjustments. Removing fair value adjustments in both periods, NEE was $6.8 million, up 6 percent from $6.4 million in the prior year, reflecting favorable wholesale trading volumes and storage optimization.
Other
Other non-utility operations and corporate costs mainly consist of interest expense associated with acquisition-related debt and corporate borrowings. These costs were $22.3 million for fiscal 2017 compared to $21.9 million for the prior year.
|
Quarterly Results |
Three months ended September 30, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
(5.8) |
$ |
(10.2) |
$ |
(0.12) |
$ |
(0.23) |
||||||||||
|
Gas Marketing |
3.1 |
1.9 |
0.06 |
0.04 |
||||||||||||||
|
Other |
(7.8) |
(5.8) |
(0.16) |
(0.13) |
||||||||||||||
|
Total |
$ |
(10.5) |
$ |
(14.1) |
$ |
(0.22) |
$ |
(0.32) |
||||||||||
|
Acquisition-related pre-tax costs |
(1.9) |
(4.1) |
(0.04) |
(0.09) |
||||||||||||||
|
Fair value adjustments, pre-tax |
(2.7) |
4.1 |
(0.06) |
0.09 |
||||||||||||||
|
Income tax effect of adjustments |
1.8 |
(0.1) |
0.04 |
— |
||||||||||||||
|
Acquisition-related shares adjustment |
— |
— |
— |
0.01 |
||||||||||||||
|
Net Loss |
$ |
(13.3) |
$ |
(14.2) |
$ |
(0.28) |
$ |
(0.31) |
||||||||||
|
Average Shares Outstanding in Millions |
48.3 |
45.7 |
||||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
Our Gas Utility business is seasonal in nature, with earnings concentrated during the winter heating season. As a result, we typically report a loss in our fiscal fourth quarter ended September 30. For fiscal 2017, we reported a consolidated net loss for the quarter of $13.3 million ($0.28 per share) compared to a loss of $14.2 million ($0.31 per share) in the prior-year period. On an NEE basis, we reported a loss of $10.5 million ($0.22 per share) compared to a loss of $14.1 million ($0.32 per share) a year ago. The smaller loss reflects improved results in both Gas Utility and Gas Marketing, partially offset by higher corporate costs.
Gas Utility
The Gas Utility segment reported a net loss of $6.5 million for the fourth quarter of fiscal 2017, compared to a loss of $10.6 million for the same period a year ago. The NEE loss for the segment was $5.8 million compared to $10.2 million in the prior year. The improved results reflect an increase in contribution margin, partially offset by higher expenses. Contribution margin increased by $21.3 million with $7.1 million from the inclusion of EnergySouth for the full fourth quarter in fiscal 2017. The remaining margin increase was driven by favorable net regulatory adjustments for Spire Alabama ($8.4 million) and higher ISRS revenues for Spire Missouri ($3.4 million).
O&M expenses of $106.4 million were up $6.6 million, with the increase attributable to the full-quarter inclusion of EnergySouth. Depreciation and amortization expenses increased by $4.1 million from last year reflecting EnergySouth and higher capital investment across our other utilities.
Gas Marketing
Fourth quarter fiscal 2017 net income for Gas Marketing was $1.5 million, down from $4.3 million in the prior-year period, reflecting less favorable fair value adjustments. Excluding the fair value adjustments, NEE increased to $3.1 million from $1.9 million a year ago, due to higher volumes and improved storage optimization.
Other
Other non-utility operations and corporate costs were $8.3 million in the fourth quarter of 2017, and $7.9 million in the year-ago period, reflecting mainly interest expense on debt for the EnergySouth acquisition and costs on short-term borrowings.
Dividend Increase
As a result of the strong performance in fiscal 2017 and expectations for continued growth, the board of directors of Spire increased the quarterly common stock dividend to $0.5625 per share, an increase of 7.1 percent. This raises the annualized rate to $2.25 per share. Spire has continuously paid a cash dividend since 1946, and 2018 will mark the 15th consecutive year that the annualized dividend has increased. The dividend is payable January 3, 2018, to shareholders of record on December 11, 2017.
Balance Sheets and Cash Flows
In fiscal 2017, we continued to maintain a strong capital structure with ample liquidity. At September 30, 2017, we had a long-term capitalization of 48.7 percent equity, compared to a 49.8 percent equity capitalization a year ago.
Our balance sheet at September 30, 2017, reflects a number of planned debt and equity transactions during our fiscal third quarter largely related to the Spire Alabama acquisition financing completed in 2014. These transactions included the redemption of $250 million in Spire floating rate notes and the retirement of $144 million in Spire junior subordinated notes (part of the equity units), both of which were issued to help fund the Spire Alabama acquisition. Upon the conversion of the equity units, we issued approximately 2.5 million shares of common stock, generating net equity proceeds of $142 million. Spire also issued $100 million in senior notes.
As discussed earlier in the year, Spire Missouri completed a private placement of $170 million in first mortgage bonds on September 15, 2017.
Short-term borrowings outstanding at fiscal year end were $477.3 million, up from $398.7 million a year ago. These levels of short-term debt are in line with our typical seasonal borrowing needs, and the increase in 2017 reflects the increased scale of our utility operations. We have significant capacity to meet our anticipated capital needs heading into the winter heating season.
Net cash provided by operating activities was $288.3 million for fiscal 2017, compared to $328.3 million for fiscal 2016. The decrease was primarily driven by an increase in working capital including collections under the purchased gas cost riders in Missouri and Alabama.
Capital expenditures for fiscal 2017 were $438.1 million, up from $293.3 million in the prior year, reflecting increased investment in infrastructure for upgrades to the distribution systems of our gas utilities and for the Spire STL Pipeline.
For additional details on Spire's results for the fourth quarter and full year of fiscal 2017, please see the accompanying unaudited Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flow.
Spire STL Pipeline
We are progressing with our Spire STL Pipeline, a planned 65-mile natural gas supply pipeline that will provide Spire Missouri East with access to lower-cost shale gas from the Marcellus/Utica producing regions. The pipeline will also enhance reliability and the diversity of our physical transport portfolio.
In January 2017, we filed a certificate application with the Federal Energy Regulatory Commission (FERC) seeking approval for the pipeline. This immediately followed the execution of a precedent agreement with Spire Missouri under which they will be a foundation shipper with a commitment of 350 MMcf/d out of the total capacity of 400 MMcf/d.
On September 29, 2017, we received the required Environmental Assessment from the FERC, which concluded that our project, with appropriate mitigating measures, will not significantly impact the environment.
As reported earlier, we have purchased pipe and are finalizing the selection of a construction contractor. We are also well underway with the process to acquire land rights. Our schedule continues to reflect an expected fiscal 2019 in-service date, based on obtaining FERC approval late in calendar 2017. The estimated project cost remains $190 million-$210 million.
Regulatory Matters
Missouri
In April, Spire Missouri East and Spire Missouri West each filed with the Missouri Public Service Commission (MoPSC) a general rate case, requesting proposed rate changes. Spire Missouri East's request represents an incremental rate increase of $25.5 million, which is net of $32.6 million that is currently being recovered through ISRS, and Spire Missouri West's request represents a $34.0 million incremental increase, net of $16.4 million in ISRS recovery.
In September, the staff of the MoPSC and other parties filed their direct testimony on rates and rate design for Spire Missouri, and in October all parties filed related rebuttal testimony. As part of the rate proceeding, Spire Missouri conducted local public hearings to discuss the rate cases with customers and communities across the state. In late October, Spire Missouri filed true-up testimony, as required, to reflect updated information through September 30, 2017, the end of Spire's fiscal year. Spire Missouri's original testimony was based on financial information for calendar year 2016.
Parties to the case have commenced discussions to clarify information and positions taken on a variety of issues. The objective of the discussions is to identify areas in which the parties are in substantial agreement, prior to public hearings in December 2017. The regulatory process in Missouri provides the MoPSC up to 11 months to consider these filings, meaning new rates for our Spire Missouri Utilities will go into effect no later than March 8, 2018.
Alabama
Under the rate-setting process in Alabama, Spire Alabama and Spire Gulf each made their annual Rate Stabilization and Equalization (RSE) filings with the Alabama Public Service Commission (APSC) on October 28, 2017. The RSE filings present each utility's budget for the fiscal year ending September 30, 2018. The filings include net income and a calculation of return on average common equity for the year at 10.8 percent (plus a 5 basis-point adder for achieving certain customer satisfaction rankings) for Spire Alabama and 10.7 percent for Spire Gulf. Reflected in the filings are the anticipated costs of operations of their respective systems as well as a prudent level of investment to maintain and upgrade their infrastructure over the next year. The filings are currently being reviewed by the APSC, and we anticipate that new rates will be effective December 1, 2017.
Earnings Guidance and Outlook
We re-affirm our annual long-term NEE per share growth target of 4 - 6 percent. We will launch fiscal 2018 NEE per share guidance after our Missouri rate proceedings conclude.
Spire capital expenditures for fiscal 2018 are expected to be $485 million, with investment in our gas utilities totaling $415 million and expenditures for Spire STL Pipeline estimated to be $70 million. Our total capital investment for the 5-year period 2017 to 2021 remains $2.3 billion, with $2.1 billion for our gas utilities. We expect more than 80 percent of our 5-year capital spend will be recovered in rates with minimal lag under regulatory mechanisms or reflected in earnings.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2017 fourth quarter and full year financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, November 15 | ||
|
10:30 a.m. CT (11:30 a.m. ET) | |||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 412-317-5142 | |
|
International: | |||
The call will also be webcast in a listen-only format for the media and general public. The webcast can be accessed at Investors.SpireEnergy.com under the Events & presentations tab. A replay of the call will be available from 12:30 p.m. CT (1:30 p.m. ET) on November 15 until December 15 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10113194. A replay of the webcast will be available at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-K for the fiscal year ended September 30, 2017, to be filed with the SEC later today.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions. These adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. In calculating net economic earnings, management also excludes from net income the after-tax impacts related to acquisition, divestiture, and restructuring activities, including costs related to acquisitions and integration. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
|
Consolidated Statements of Income - Unaudited | |||||||||||||||||
|
Spire Inc. | |||||||||||||||||
|
(In Millions, except per share amounts) | |||||||||||||||||
|
Three months ended |
Years ended | ||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||||
|
Operating Revenues: |
|||||||||||||||||
|
Gas Utility |
$ |
240.9 |
$ |
193.7 |
$ |
1,660.0 |
$ |
1,457.2 |
|||||||||
|
Gas Marketing and other |
17.8 |
85.6 |
80.7 |
80.1 |
|||||||||||||
|
Total Operating Revenues |
258.7 |
279.3 |
1,740.7 |
1,537.3 |
|||||||||||||
|
Operating Expenses: |
|||||||||||||||||
|
Gas Utility |
|||||||||||||||||
|
Natural and propane gas |
45.7 |
28.5 |
570.5 |
492.2 |
|||||||||||||
|
Other operation and maintenance expenses |
106.4 |
99.8 |
405.0 |
377.5 |
|||||||||||||
|
Depreciation and amortization |
39.5 |
35.4 |
153.5 |
136.9 |
|||||||||||||
|
Taxes, other than income taxes |
25.6 |
25.7 |
137.8 |
125.2 |
|||||||||||||
|
Total Gas Utility Operating Expenses |
217.2 |
189.4 |
1,266.8 |
1,131.8 |
|||||||||||||
|
Gas Marketing and other |
39.6 |
97.6 |
152.2 |
123.2 |
|||||||||||||
|
Total Operating Expenses |
256.8 |
287.0 |
1,419.0 |
1,255.0 |
|||||||||||||
|
Operating (Loss) Income |
1.9 |
(7.7) |
321.7 |
282.3 |
|||||||||||||
|
Other Income - Net |
1.0 |
4.8 |
6.6 |
8.6 |
|||||||||||||
|
Interest Charges: |
|||||||||||||||||
|
Interest on long-term debt |
19.5 |
17.4 |
76.8 |
67.6 |
|||||||||||||
|
Other interest charges |
3.4 |
2.1 |
12.3 |
9.6 |
|||||||||||||
|
Total Interest Charges |
22.9 |
19.5 |
89.1 |
77.2 |
|||||||||||||
|
Income (Loss) Before Income Taxes |
(20.0) |
(22.4) |
239.2 |
213.7 |
|||||||||||||
|
Income Tax (Benefit) Expense |
(6.7) |
(8.2) |
77.6 |
69.5 |
|||||||||||||
|
Net (Loss) Income |
$ |
(13.3) |
$ |
(14.2) |
$ |
161.6 |
$ |
144.2 |
|||||||||
|
Weighted Average Number of Common Shares Outstanding: |
|||||||||||||||||
|
Basic |
48.1 |
45.5 |
46.9 |
44.1 |
|||||||||||||
|
Diluted |
48.3 |
45.7 |
47.0 |
44.3 |
|||||||||||||
|
Basic Earnings (Loss) Per Share of Common Stock |
$ |
(0.28) |
$ |
(0.31) |
$ |
3.44 |
$ |
3.26 |
|||||||||
|
Diluted Earnings (Loss) Per Share of Common Stock |
$ |
(0.28) |
$ |
(0.31) |
$ |
3.43 |
$ |
3.24 |
|||||||||
|
Dividends Declared Per Share of Common Stock |
$ |
0.53 |
$ |
0.49 |
$ |
2.10 |
$ |
1.96 |
|||||||||
|
Condensed Consolidated Balance Sheets - Unaudited | |||||||
|
Spire Inc. | |||||||
|
(In Millions) | |||||||
|
September 30, |
September 30, | ||||||
|
2017 |
2016 | ||||||
|
ASSETS |
|||||||
|
Utility Plant |
$ |
5,278.4 |
$ |
4,793.6 |
|||
|
Less: Accumulated depreciation and amortization |
1,613.2 |
1,506.4 |
|||||
|
Net Utility Plant |
3,665.2 |
3,287.2 |
|||||
|
Non-utility Property |
52.0 |
13.7 |
|||||
|
Goodwill |
1,171.6 |
1,164.9 |
|||||
|
Other Investments |
64.2 |
62.1 |
|||||
|
Other Property and Investments |
1,287.8 |
1,240.7 |
|||||
|
Current Assets: |
|||||||
|
Cash and cash equivalents |
7.4 |
5.2 |
|||||
|
Accounts receivable (net of allowance for doubtful accounts) |
271.4 |
220.7 |
|||||
|
Delayed customer billings |
3.4 |
1.6 |
|||||
|
Inventories |
225.8 |
202.3 |
|||||
|
Other |
217.5 |
139.8 |
|||||
|
Total Current Assets |
725.5 |
569.6 |
|||||
|
Regulatory Assets and Other Deferred Charges |
868.2 |
966.9 |
|||||
|
Total Assets |
$ |
6,546.7 |
$ |
6,064.4 |
|||
|
CAPITALIZATION AND LIABILITIES |
|||||||
|
Capitalization: |
|||||||
|
Common stock and paid-in capital |
$ |
1,373.0 |
$ |
1,221.5 |
|||
|
Retained earnings |
615.1 |
550.9 |
|||||
|
Accumulated other comprehensive income (loss) |
3.2 |
(4.2) |
|||||
|
Total Common Stock Equity |
1,991.3 |
1,768.2 |
|||||
|
Long-term debt |
1,995.0 |
1,820.7 |
|||||
|
Total Capitalization |
3,986.3 |
3,588.9 |
|||||
|
Current Liabilities: |
|||||||
|
Current portion of long-term debt |
100.0 |
250.0 |
|||||
|
Notes payable |
477.3 |
398.7 |
|||||
|
Accounts payable |
257.1 |
210.9 |
|||||
|
Advance customer billings |
32.0 |
70.2 |
|||||
|
Accrued liabilities and other |
231.5 |
231.5 |
|||||
|
Total Current Liabilities |
1,097.9 |
1,161.3 |
|||||
|
Deferred Credits and Other Liabilities: |
|||||||
|
Deferred income taxes |
707.5 |
607.3 |
|||||
|
Pension and postretirement benefit costs |
237.4 |
303.7 |
|||||
|
Asset retirement obligations |
296.6 |
206.4 |
|||||
|
Regulatory liabilities |
157.2 |
130.7 |
|||||
|
Other |
63.8 |
66.1 |
|||||
|
Total Deferred Credits and Other Liabilities |
1,462.5 |
1,314.2 |
|||||
|
Total Capitalization and Liabilities |
$ |
6,546.7 |
$ |
6,064.4 |
|||
|
Condensed Consolidated Statements of Cash Flow - Unaudited | |||||||
|
Spire Inc. | |||||||
|
(In Millions) | |||||||
|
Years ended September 30, | |||||||
|
2017 |
2016 | ||||||
|
Operating Activities: |
|||||||
|
Net Income |
$ |
161.6 |
$ |
144.2 |
|||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
|
Depreciation, amortization, and accretion |
154.1 |
137.5 |
|||||
|
Deferred income taxes and investment tax credits |
77.0 |
68.8 |
|||||
|
Changes in assets and liabilities |
(108.6) |
(27.1) |
|||||
|
Other |
4.2 |
4.9 |
|||||
|
Net cash provided by operating activities |
288.3 |
328.3 |
|||||
|
Investing Activities: |
|||||||
|
Capital expenditures |
(438.1) |
(293.3) |
|||||
|
Acquisition of EnergySouth (net of $2.0 cash acquired) and final settlement |
3.8 |
(317.7) |
|||||
|
Other |
0.8 |
(1.7) |
|||||
|
Net cash used in investing activities |
(433.5) |
(612.7) |
|||||
|
Financing Activities: |
|||||||
|
Repayment of long-term debt |
(393.8) |
(80.0) |
|||||
|
Issuance of long-term debt |
420.0 |
245.0 |
|||||
|
Issuance of short-term debt - net |
78.6 |
60.7 |
|||||
|
Issuance of common stock |
146.9 |
137.1 |
|||||
|
Dividends paid |
(96.2) |
(85.2) |
|||||
|
Other |
(8.1) |
(1.8) |
|||||
|
Net cash provided by financing activities |
147.4 |
275.8 |
|||||
|
Net Increase (Decrease) in Cash and Cash Equivalents |
2.2 |
(8.6) |
|||||
|
Cash and Cash Equivalents at Beginning of Period |
5.2 |
13.8 |
|||||
|
Cash and Cash Equivalents at End of Period |
$ |
7.4 |
$ |
5.2 |
|||
|
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas |
Other |
Total |
Per Diluted | |||||||||||||||||
|
Three Months Ended September 30, 2017 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
(6.5) |
$ |
1.5 |
$ |
(8.3) |
$ |
(13.3) |
$ |
(0.28) |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
2.8 |
— |
2.8 |
0.06 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
1.2 |
— |
0.7 |
1.9 |
0.04 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.5) |
(1.1) |
(0.2) |
(1.8) |
(0.04) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
(5.8) |
$ |
3.1 |
$ |
(7.8) |
$ |
(10.5) |
$ |
(0.22) |
||||||||||||
|
Diluted EPS (GAAP) |
(0.14) |
0.03 |
(0.17) |
(0.28) |
||||||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
(0.12) |
0.06 |
(0.16) |
(0.22) |
||||||||||||||||||
|
Three Months Ended September 30, 2016 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
(10.6) |
$ |
4.3 |
$ |
(7.9) |
$ |
(14.2) |
$ |
(0.31) |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized gain on energy-related derivatives |
(0.2) |
(2.8) |
— |
(3.0) |
(0.06) |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
(0.4) |
— |
(0.4) |
(0.01) |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.7) |
— |
(0.7) |
(0.02) |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.7 |
— |
3.4 |
4.1 |
0.09 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.1) |
1.5 |
(1.3) |
0.1 |
— |
|||||||||||||||||
|
Weighted Average Shares Adjustment (2) |
— |
— |
— |
— |
(0.01) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
(10.2) |
$ |
1.9 |
$ |
(5.8) |
$ |
(14.1) |
$ |
(0.32) |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
(0.23) |
$ |
0.09 |
$ |
(0.17) |
$ |
(0.31) |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
(0.23) |
$ |
0.04 |
$ |
(0.13) |
$ |
(0.32) |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
|
(2) Net economic earnings per share is generally calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. Fiscal 2016 net economic earnings per share excludes the impact of the May 2016 equity issuance to fund a portion of the acquisition of EnergySouth. The weighted average diluted shares used in the net economic earnings per share calculation for the quarter ended September 30, 2016 was 43.5 compared to 45.7 in the GAAP diluted EPS calculation. |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas |
Other |
Total |
Per Diluted | |||||||||||||||||
|
Year Ended September 30, 2017 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
180.5 |
$ |
3.4 |
$ |
(22.3) |
$ |
161.6 |
$ |
3.43 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
0.1 |
5.9 |
— |
6.0 |
0.13 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.3) |
— |
(0.3) |
(0.01) |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
1.5 |
— |
2.5 |
4.0 |
0.09 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.6) |
(2.2) |
(0.9) |
(3.7) |
(0.08) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
181.5 |
$ |
6.8 |
$ |
(20.7) |
$ |
167.6 |
$ |
3.56 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.83 |
$ |
0.07 |
$ |
(0.47) |
$ |
3.43 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.86 |
$ |
0.14 |
$ |
(0.44) |
$ |
3.56 |
||||||||||||||
|
Year Ended September 30, 2016 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
159.0 |
$ |
7.1 |
$ |
(21.9) |
$ |
144.2 |
$ |
3.24 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized (gain) loss on energy-related derivatives |
(0.3) |
0.2 |
— |
(0.1) |
— |
|||||||||||||||||
|
Lower of cost or market inventory adjustments (1) |
— |
0.2 |
— |
0.2 |
0.01 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(1.6) |
— |
(1.6) |
(0.04) |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
2.3 |
— |
6.9 |
9.2 |
0.21 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.7) |
0.5 |
(2.6) |
(2.8) |
(0.06) |
|||||||||||||||||
|
Weighted Average Shares Adjustment (2) |
— |
— |
— |
— |
0.06 |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
160.3 |
$ |
6.4 |
$ |
(17.6) |
$ |
149.1 |
$ |
3.42 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.57 |
$ |
0.16 |
$ |
(0.49) |
$ |
3.24 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.67 |
$ |
0.15 |
$ |
(0.40) |
$ |
3.42 |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
|
(2) Net economic earnings per share is generally calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. Fiscal 2016 net economic earnings per share excludes the impact of the May 2016 equity issuance to fund a portion of the acquisition of EnergySouth. The weighted average diluted shares used in the net economic earnings per share calculation for fiscal 2016 was 43.5 compared to 44.3 in the GAAP diluted EPS calculation. |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Contribution Margin and Reconciliation to GAAP | ||||||||||||||||||||||||
|
(In Millions) |
Gas |
Gas |
Other |
Eliminations |
Consolidated | |||||||||||||||||||
|
Three Months Ended September 30, 2017 |
||||||||||||||||||||||||
|
Operating income (Loss) (GAAP) |
$ |
1.3 |
$ |
2.3 |
$ |
(1.7) |
$ |
— |
$ |
1.9 |
||||||||||||||
|
Operation and maintenance expenses |
107.4 |
1.5 |
3.4 |
(1.6) |
110.7 |
|||||||||||||||||||
|
Depreciation and amortization |
39.5 |
— |
0.2 |
— |
39.7 |
|||||||||||||||||||
|
Taxes, other than income taxes |
25.6 |
0.2 |
— |
— |
25.8 |
|||||||||||||||||||
|
Less: Gross receipts taxes |
(12.6) |
— |
— |
— |
(12.6) |
|||||||||||||||||||
|
Contribution Margin (Non-GAAP) |
161.2 |
— |
4.0 |
— |
1.9 |
— |
(1.6) |
— |
165.5 |
|||||||||||||||
|
Natural and propane gas expense |
67.1 |
13.5 |
0.1 |
(0.1) |
80.6 |
|||||||||||||||||||
|
Gross receipts tax expense |
12.6 |
— |
— |
— |
12.6 |
|||||||||||||||||||
|
Operating Revenues (GAAP) |
$ |
240.9 |
$ |
17.5 |
$ |
2.0 |
$ |
(1.7) |
$ |
258.7 |
||||||||||||||
|
Three Months Ended September 30, 2016 |
||||||||||||||||||||||||
|
Operating income (Loss) (GAAP) |
$ |
(11.8) |
$ |
7.1 |
$ |
(3.0) |
$ |
— |
$ |
(7.7) |
||||||||||||||
|
Operation and maintenance expenses |
100.9 |
1.5 |
5.0 |
(1.5) |
105.9 |
|||||||||||||||||||
|
Depreciation and amortization |
35.4 |
— |
0.1 |
— |
35.5 |
|||||||||||||||||||
|
Taxes, other than income taxes |
25.7 |
— |
(0.1) |
— |
25.6 |
|||||||||||||||||||
|
Less: Gross receipts taxes |
(10.3) |
— |
— |
— |
(10.3) |
|||||||||||||||||||
|
Contribution Margin (Non-GAAP) |
139.9 |
— |
8.6 |
— |
2.0 |
— |
(1.5) |
— |
149.0 |
|||||||||||||||
|
Natural and propane gas expense |
43.7 |
46.8 |
0.2 |
29.3 |
120.0 |
|||||||||||||||||||
|
Gross receipts tax expense |
10.3 |
— |
— |
— |
10.3 |
|||||||||||||||||||
|
Operating Revenues (GAAP) |
$ |
193.9 |
$ |
55.4 |
$ |
2.2 |
$ |
27.8 |
$ |
279.3 |
||||||||||||||
|
Year Ended September 30, 2017 |
||||||||||||||||||||||||
|
Operating income (Loss) (GAAP) |
$ |
321.6 |
$ |
5.2 |
$ |
(5.1) |
$ |
— |
$ |
321.7 |
||||||||||||||
|
Operation and maintenance expenses |
409.1 |
5.9 |
11.8 |
(5.5) |
421.3 |
|||||||||||||||||||
|
Depreciation and amortization |
153.5 |
0.1 |
0.5 |
— |
154.1 |
|||||||||||||||||||
|
Taxes, other than income taxes |
137.8 |
0.5 |
0.2 |
— |
138.5 |
|||||||||||||||||||
|
Less: Gross receipts taxes |
(83.0) |
(0.1) |
— |
— |
(83.1) |
|||||||||||||||||||
|
Contribution Margin (Non-GAAP) |
939.0 |
11.6 |
7.4 |
(5.5) |
952.5 |
|||||||||||||||||||
|
Natural and propane gas expense |
645.9 |
67.6 |
0.3 |
(8.7) |
705.1 |
|||||||||||||||||||
|
Gross receipts tax expense |
83.0 |
0.1 |
— |
— |
83.1 |
|||||||||||||||||||
|
Operating Revenues (GAAP) |
$ |
1,667.9 |
$ |
79.3 |
$ |
7.7 |
$ |
(14.2) |
$ |
1,740.7 |
||||||||||||||
|
Year Ended September 30, 2016 |
||||||||||||||||||||||||
|
Operating income (Loss) (GAAP) |
$ |
278.3 |
$ |
11.8 |
$ |
(7.8) |
$ |
— |
$ |
282.3 |
||||||||||||||
|
Operation and maintenance expenses |
379.3 |
5.6 |
12.1 |
(2.4) |
394.6 |
|||||||||||||||||||
|
Depreciation and amortization |
136.9 |
0.1 |
0.5 |
137.5 |
||||||||||||||||||||
|
Taxes, other than income taxes |
125.2 |
0.3 |
(0.2) |
125.3 |
||||||||||||||||||||
|
Less: Gross receipts taxes |
(75.3) |
(0.1) |
— |
— |
(75.4) |
|||||||||||||||||||
|
Contribution Margin (Non-GAAP) |
844.4 |
17.7 |
4.6 |
(2.4) |
864.3 |
|||||||||||||||||||
|
Natural and propane gas expense |
539.7 |
60.7 |
0.2 |
(3.0) |
597.6 |
|||||||||||||||||||
|
Gross receipts tax expense |
75.3 |
0.1 |
— |
— |
75.4 |
|||||||||||||||||||
|
Operating Revenues (GAAP) |
$ |
1,459.4 |
$ |
78.5 |
$ |
4.8 |
$ |
(5.4) |
$ |
1,537.3 |
||||||||||||||
View original content:http://www.prnewswire.com/news-releases/spire-reports-2017-results-300556125.html
SOURCE Spire Inc.
Article Date
11/15/201710/26/2017 - Spire Changes Start Time of Earnings Conference Call
Spire Changes Start Time of Earnings Conference Call
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ST. LOUIS, Oct. 26, 2017 /PRNewswire/ -- As previously announced, Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, November 15 to discuss fiscal 2017 fourth quarter and full year financial results.
To avoid a conflict with another webcast to the financial community within our industry, we have changed the start time of our earnings conference call to later in the morning on November 15 than we originally announced. Please note the new start time below. All other details for the conference call and webcast are unchanged and are included below for convenience.
|
Date and Time: |
Wednesday, November 15 |
|
10:30 a.m. CT (11:30 a.m. ET) | |
|
Phone Numbers: |
U.S. and Canada: 844-824-3832 |
|
International: 412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 12:30 p.m. CT (1:30 p.m. ET) on November 15 until December 15 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10113194. A replay of the webcast will be available on our website at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-changes-start-time-of-earnings-conference-call-300543763.html
SOURCE Spire Inc.
Article Date
10/26/2017Spire to Host Earnings Conference Call on November 15
Source: PR Newswire
ST. LOUIS, Oct. 12, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, November 15 to discuss our fiscal 2017 fourth quarter and full year financial results. We will issue our earnings news release before the market opens that day and it will be available on our website at Investors.SpireEnergy.com under the Resources tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, November 15 |
|
|
8 a.m. CT (9 a.m. ET) |
||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
International: |
412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on November 15 until December 15 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10113194. A replay of the webcast will be available on our website at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-november-15-300535267.html
SOURCE Spire Inc.
Article Date
10/12/20179/25/2017 - Five Natural Gas Utilities Unite as Spire
Five Natural Gas Utilities Unite as Spire
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Sept. 25, 2017 /PRNewswire/ -- Today, Spire is delivering on the promise made last year to unite its five natural gas utilities under one name to serve customers even better. As of this morning, communities served by Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas will see employees in Spire trucks and uniforms bringing safe, reliable energy to their neighborhoods.
"We're becoming Spire to serve people even better. Serving others is, and always has been, at the heart of what we do," said Spire President and CEO Suzanne Sitherwood. "To take that service to the next level, we had to unite our five natural gas utilities as one team, wearing one jersey."
Now, as the fifth-largest publicly traded natural gas utility in the United States, Spire is able to manage costs more efficiently – keeping prices low while delivering safe and reliable natural gas for homes and businesses.
In addition to the savings that come with a bigger company, homes and businesses served by Spire will enjoy improved technology, with the launch today of a new mobile-friendly website that makes it easy to manage accounts on the go and get in touch with Spire's customer service team. See the new website at www.SpireEnergy.com.
Another part of Spire's dedication to service is the company's increased commitment to the communities it serves, supporting hundreds of local nonprofit organizations and initiating employee volunteer programs. Starting this year, more than 500 Spire employees took part in a new program called "Day for Good" where they spent a day doing good in neighborhoods and communities across three states.
"There's no greater energy we can offer our communities than the 3,300 dedicated employees who come to work ready to serve every day. Now our employees can also use their energy to support the causes that mean so much to them," Sitherwood said.
Even the Spire logo, which comprises two shapes that form a handshake, symbolizes the company's dedication to connecting people with the energy they need to warm their homes, cook their meals and fuel their homes and businesses. While the Spire logo has already started appearing on trucks and vans, Spire's fleet will be transitioning through mid-October.
"We've proudly served the people of Alabama, Mississippi and Missouri for decades, and in most of our locations, for more than a century," Sitherwood said. "Now, we can't wait to show our communities all the ways we plan to serve them – even better – as Spire."
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers, making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) investing in infrastructure, 3) acquiring and integrating and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Media Contact:
Jessica B. Willingham
314-342-3300
View original content:http://www.prnewswire.com/news-releases/five-natural-gas-utilities-unite-as-spire-300524820.html
SOURCE Spire Inc.
Article Date
9/25/2017Spire to Host Earnings Conference Call on August 2
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, July 17, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, August 2 to discuss our fiscal 2017 third quarter financial results. We will issue our earnings news release before the market opens that day and it will be available on our website at SpireEnergy.com under the News tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, August 2 |
|
|
8 a.m. CT (9 a.m. ET) |
||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
International: |
412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at SpireEnergy.com under the Investors tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on August 2 until September 2 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10110718. A replay of the webcast will be available on our website at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth through 1) growing organically, 2) acquiring and integrating, 3) investing in infrastructure, and 4) innovation and technology. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
View original content:http://www.prnewswire.com/news-releases/spire-to-host-earnings-conference-call-on-august-2-300489210.html
SOURCE Spire Inc.
Article Date
7/17/20175/3/2017 - Spire Reports Second Quarter Results
Spire Reports Second Quarter Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, May 3, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported operating results for its fiscal 2017 second quarter ended March 31, 2017. Highlights include:
"Our operating performance was solid this quarter, as we grew earnings even though winter weather across our footprint continued to be warmer than normal. That's because our 3,300 employees in Alabama, Mississippi and Missouri work hard every day to provide great service that's safe and reliable, while delivering on our promises and growing our company. We also continue to successfully ramp up infrastructure upgrades that help lower long-term operating costs and support our long-term growth," said Suzanne Sitherwood, president and chief executive officer of Spire.
|
Second Quarter Results |
Three months ended March 31, | ||||||||||||||||
|
(Millions) |
(Per Diluted Share) | ||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
|||||||||||||||||
|
Gas Utility |
$ |
112.2 |
$ |
102.5 |
$ |
2.45 |
$ |
2.35 |
|||||||||
|
Gas Marketing |
— |
3.0 |
— |
0.07 |
|||||||||||||
|
Other |
(3.2) |
(2.0) |
(0.07) |
(0.05) |
|||||||||||||
|
Total |
$ |
109.0 |
$ |
103.5 |
$ |
2.38 |
$ |
2.37 |
|||||||||
|
Acquisition-related costs, pre-tax |
(0.1) |
(2.0) |
— |
(0.04) |
|||||||||||||
|
Fair value adjustments, pre-tax |
(1.6) |
(2.5) |
(0.04) |
(0.06) |
|||||||||||||
|
Income tax effect of adjustments |
0.7 |
1.8 |
0.02 |
0.04 |
|||||||||||||
|
Net Income |
$ |
108.0 |
$ |
100.8 |
$ |
2.36 |
$ |
2.31 |
|||||||||
|
Average Shares Outstanding in Millions |
45.7 |
43.5 |
|||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For the three months ended March 31, 2017, the second quarter of our fiscal year, we reported consolidated net income of $108.0 million (or $2.36 per diluted share) compared to $100.8 million (or $2.31 per diluted share) in the prior year period. Net economic earnings (NEE) for the second quarter of fiscal 2017 were $109.0 million, up $5.5 million or 5.3 percent compared to last year, reflecting higher earnings in Gas Utility partially offset by lower results in Gas Marketing and higher corporate costs. NEE excludes from net income the effect of unrealized gains and losses on energy-related derivatives. It also excludes the impacts of acquisition, divestiture and restructuring activities in the fiscal year in which they occur, including expenses, financing impacts and operating results in fiscal 2016 associated with the acquisition of EnergySouth (Mobile Gas and Willmut Gas) as well as overall integration activities. While NEE increased, NEE per share was $2.38 in the current period, up slightly from $2.37 a year ago, reflecting a 5 percent increase in average shares outstanding related to the EnergySouth acquisition in 2016.
Fiscal 2017 results were impacted by winter weather that was warmer in comparison to both normal and last year across our footprint. In general, warmer weather reduces demand and contribution margin (non-GAAP; see "Contribution Margin and Reconciliation to GAAP") and benefits certain weather-sensitive expenses. For Laclede Gas and MGE (collectively our Missouri Utilities), second quarter weather was 23 percent warmer than normal this year and 10 percent warmer than a year ago. For Alagasco, second quarter temperatures were 37 percent warmer than normal this year and 24 percent warmer than the prior year. Temperatures were also more volatile this year when compared to both prior year and normal patterns.
Gas Utility
The Gas Utility segment includes the regulated gas distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. Second quarter net income was $112.3 million for fiscal 2017, up from $102.4 million a year ago. NEE for the segment was $112.2 million, up $9.7 million or more than 9 percent compared to prior year. The increase in earnings was largely driven by the addition of EnergySouth.
Contribution margin increased by $26.5 million reflecting the addition of EnergySouth ($27.6 million), lower net regulatory adjustments for Alagasco ($4.6 million), and higher Infrastructure System Replacement Surcharge (ISRS) revenues for the Missouri Utilities ($3.5 million). These benefits to contribution margin were more than offset by a $9.6 million impact from the warmer weather when compared to last year as described earlier.
Operation and maintenance (O&M) expenses of $98.4 million for the quarter were up $4.1 million, reflecting the addition of EnergySouth ($10.3 million). Excluding EnergySouth, O&M expenses were lower by $6.2 million driven by a decrease in employee-related costs and lower bad debt expense, a portion of which was beneficially impacted by weather. Depreciation and amortization expenses increased by $4.1 million from last year, with $2.6 million from the addition of EnergySouth and the remainder reflecting higher capital investment including infrastructure upgrades for the other utilities. Taxes other than for income and gross receipts increased by $2.5 million reflecting mainly an increase in property taxes including those associated with the addition of EnergySouth.
Gas Marketing
The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing and related services on a non-regulated basis across the country, with a core operating footprint in the central U.S. For the second quarter of fiscal 2017, Gas Marketing reported a loss of $1.0 million compared to net income of $1.5 million in the prior-year period. Removing fair value adjustments in both periods, second quarter NEE was breakeven in fiscal 2017, down from $3.0 million in the prior year. The decrease reflects a lower contribution margin primarily due to the timing of storage optimization and lower market volatility in the current-year quarter.
Other
Other non-utility operations and corporate costs were $3.3 million in the second quarter of 2017 compared to $3.1 million in the year-ago period. On an NEE basis, second quarter costs were $3.2 million in 2017, up from $2.0 million a year ago. A significant portion of these costs are related to interest expense which increased from prior year reflecting the addition of EnergySouth as well as higher interest costs on floating-rate debt.
|
Year-to-Date Results |
Six Months Ended March 31, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
164.0 |
$ |
152.5 |
$ |
3.59 |
$ |
3.50 |
||||||||||
|
Gas Marketing |
1.4 |
2.7 |
0.03 |
0.07 |
||||||||||||||
|
Other |
(8.9) |
(6.6) |
(0.20) |
(0.16) |
||||||||||||||
|
Total |
$ |
156.5 |
$ |
148.6 |
$ |
3.42 |
$ |
3.41 |
||||||||||
|
Acquisition-related costs, pre-tax |
(0.2) |
(3.3) |
(0.01) |
(0.07) |
||||||||||||||
|
Fair value adjustments, pre-tax |
(5.2) |
1.9 |
(0.12) |
0.04 |
||||||||||||||
|
Income tax effect of adjustments |
2.1 |
0.5 |
0.05 |
0.01 |
||||||||||||||
|
Net Income |
$ |
153.2 |
$ |
147.7 |
$ |
3.34 |
$ |
3.39 |
||||||||||
|
Average Shares Outstanding in Millions |
45.7 |
43.5 |
||||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For the first half of fiscal 2017, we reported consolidated net income of $153.2 million (or $3.34 per diluted share) compared to $147.7 million (or $3.39 per diluted share) for the prior year. NEE for the first half of the year was $156.5 million (or $3.42 per share) up $7.9 million or 5.3 percent compared to $148.6 million (or $3.41 per share) a year ago. The increase in earnings reflects higher Gas Utility results mainly due to the addition of EnergySouth, partially offset by a decrease in Gas Marketing earnings and higher corporate costs. Per share results were impacted by a 5 percent increase in shares outstanding related to the EnergySouth acquisition in 2016.
Gas Utility
For the first half of fiscal 2017, the Gas Utility segment reported net income of $164.0 million compared to $151.7 million in the prior year. Segment NEE for the first six months was $164.0 million in fiscal 2017, up $11.5 million or 7.5 percent from a year ago. The increase in earnings was driven primarily by the inclusion of EnergySouth in the current year, as well as higher earnings from the Missouri Utilities, slightly offset by lower results for Alagasco.
Year-to-date segment contribution margin increased by $49.6 million, including $46.9 million from the addition of EnergySouth. In addition, operating margin reflects $6.8 million higher ISRS revenues at the Missouri Utilities and $5.8 million in lower regulatory adjustments in Alabama. These positive factors were largely offset by a $10.1 million impact to contribution margin from lower consumption and demand due to warmer winter temperatures. O&M expenses increased by $11.9 million, reflecting the addition of EnergySouth ($19.1 million). Excluding EnergySouth expenses, O&M expenses were lower by $7.2 million in part due to the warmer weather during the heating season which resulted in lower bad debt expense and lower employee-related costs. Depreciation and amortization rose by $8.3 million with $5.3 million attributable to EnergySouth and the remainder reflecting increased capital investment at the Missouri Utilities and Alagasco including infrastructure upgrades.
Gas Marketing
The Gas Marketing segment reported a fiscal year-to-date loss of $1.8 million compared to net income of $3.8 million a year ago. Excluding adverse mark-to-market and fair value adjustments, NEE was $1.4 million, down from $2.7 million in the prior year. The earnings decrease reflects a lower contribution margin primarily due to lower storage optimization and narrowing spreads, partially offset by higher overall volumes.
Other
Other non-utility operations and corporate costs in the first half of fiscal 2017 were $9.0 million compared to $7.8 million a year ago. On an NEE basis, year-to-date costs were $8.9 million up from $6.6 million in the prior-year period. A significant portion of these costs are related to interest expense which increased from the prior year reflecting the addition of EnergySouth as well as higher interest costs on floating-rate debt.
Balance Sheets and Cash Flows
We continue to maintain a strong capital structure with ample liquidity. Short-term borrowings outstanding at March 31, 2017 were $567.4 million compared to $253.6 million a year ago. These levels of short-term debt are in line with our typical seasonal borrowing needs, with the increase due to the acquisition of EnergySouth and the timing of capital market activity as noted below.
During and immediately following the second quarter, Spire completed a series of planned debt and equity transactions tied to the Alagasco acquisition financing originally raised in 2014. The net result of these transactions was to secure a net $142.0 million in equity proceeds and decrease total long-term debt (including current portions) by $143.8 million.
In 2014, Spire issued 2.875 million equity units consisting of $143.8 million of remarketable junior subordinated notes and an equity purchase contract requiring unit holders to purchase common shares three years in the future. During the same time period, Spire issued three-year $250 million floating rate notes to mature August 15, 2017.
Over the last three months, the equity units and notes were effectively replaced as follows:
The result of these transactions was to increase the equity component of our long-term capitalization (on a pro forma basis including the April 3rd equity issuance) to 51.3 percent equity, compared to 49.8 percent equity at September 30, 2016.
Separately, on March 15, Laclede Gas Company finalized terms for a private placement of $170 million of first mortgage bonds, in 15-year, 30-year and 40-year tranches. These bonds can be funded, at the Company's option, at any time up to September 15, 2017 given standard notice periods and other funding requirements typical in this type of private placement.
Net cash provided by operating activities was $226.1 million for the six months ended March 31, 2017, compared to $243.0 million for the first half of 2016. The decrease is primarily due to changes in working capital largely driven by the relative weather conditions and gas prices during the periods.
Capital expenditures for the first six months of our fiscal year were $187.3 million in 2017, up from $121.8 million in the prior year with approximately $8 million of the increase driven by the addition of EnergySouth. Capital spend for the rest of our utilities was up nearly $50 million, or more than 40 percent, reflecting increased infrastructure upgrades as well as investment to support customer growth and new business development.
For additional details on Spire's results for the second quarter and first six months of fiscal 2017, please see the accompanying unaudited Condensed Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
Regulatory Update
Missouri Rate Cases
As required by the state of Missouri, Laclede Gas and MGE each filed with the Missouri Public Service Commission (MoPSC) a general rate case on April 11, 2017, requesting proposed rate changes. These requests are the first to be made by our Missouri utilities in approximately four years.
The proposed rate changes reflect plans and ongoing investments to upgrade technology for easier and faster customer service, and a continued commitment to modernizing pipeline infrastructure, all while creating benefits for our customers through growth. The filings include accelerated infrastructure upgrades and significant costs savings that keep price increases for customers down.
The requests are based on filed rate bases as of the December 31, 2016 test year of $1,232 million for Laclede Gas and $793 million for MGE, representing 34 percent growth in the combined rate base of our Missouri utilities. This growth reflects significant investments made in infrastructure upgrades, technology and other system investments.
Laclede Gas requested a rate increase of $28.5 million, which is net of $29.5 million already being recovered through ISRS. If approved, the increase for a typical residential customer will be $3.70 per month. MGE requested a $37.0 million increase, net of $13.4 million in current ISRS recovery, that would result in an increase for a typical residential customer of $5.50 per month. Even with these increases, customer bills will still be lower than they were 10 years ago.
The current filings include proposed changes to rate designs and other mechanisms to modernize and simplify the rate-setting process and align practices between Laclede Gas and MGE. The filings also seek cash recovery of regulatory assets including funding of retirement plans and deferred costs of integration.
The regulatory process in Missouri provides the MoPSC up to 11 months to consider these filings. We expect a procedural schedule to be agreed upon mid-May, which will outline the timeframe for the overall process, including evidentiary hearings preliminarily set for early to mid-December. The process includes discovery, filing of testimony and case by MoPSC Staff, and responses from various parties to the case. The prudence review and consideration by the MoPSC and Staff will cover all aspects of the filing, including such factors as rate base, weighted average cost of capital, certain run rate operating costs, capital structure, energy efficiency programs and overall rate design.
Missouri ISRS
On April 26, 2017, the MoPSC approved additional ISRS revenue in the amount of $3.0 million each for Laclede Gas and MGE, effective June 1, 2017. The additional amounts bring the annual ISRS run rate to $49 million. ISRS allows for more timely regulatory recovery of investments made by our Missouri utilities to improve the integrity and safety of their distribution systems.
Spire STL Pipeline
On January 26, 2017, we filed a certificate application with the Federal Energy Regulatory Commission (FERC) seeking approval for our Spire STL Pipeline, a 65-mile natural gas supply pipeline that will enhance reliability and the diversity of our physical transport portfolio while providing access to lower-cost shale gas from the Marcellus/Utica producing regions. Under the terms of a precedent agreement with Laclede Gas, executed on January 25, Laclede Gas will be a foundation shipper with a contractual commitment of 350 MMcf/d out of the total capacity of 400 MMcf/d.
As is typical for a project of this type, a limited number of parties have filed interventions and protests with the FERC, which we are continuing to monitor and respond to as appropriate. Our plans continue to reflect an expected fiscal 2019 in-service date and an estimated project cost of $190 million-$210 million.
On April 21, we filed an amended certificate application to adjust the preferred route for the pipeline to include a new six-mile segment rather than refurbishment of an existing line. The change offers a number of benefits including eliminating potential supply disruption risk for Laclede Gas, eliminating uncertainty regarding upgrade costs and reducing long-term integrity management costs.
Dividends
The Spire board of directors declared a quarterly common stock dividend of $0.525 per share, payable July 5, 2017, to shareholders of record on June 12, 2017. We have continuously paid a cash dividend since 1946, with 2017 marking the 14th consecutive year of increasing dividends on an annualized basis.
Earnings Guidance and Outlook
As noted earlier, Spire's capital spending for the Missouri Utilities and Alagasco for the first six months of the current fiscal year is more than 40 percent higher than the comparable period last year, tangible proof of our success in ramping up our infrastructure upgrades as well as investments to support new business and technology enhancements. As a result, we now anticipate our capital expenditures for fiscal 2017 to be approximately $445 million, up from our original estimate of $410 million. This compares to actual fiscal 2016 capital spending of $293 million. Investment in our gas utilities is now expected to be approximately $415 million, up from $370 million, and we still expect that roughly 75 percent will be recovered with minimal regulatory lag.
We have also updated our longer-term capital expenditure outlook, extending that view through 2021. We now anticipate our five-year capital spend for the fiscal years 2017-2021 to total approximately $2.3 billion, up from $2.0 billion for our last five-year forecast ended 2020.
We also confirm our long-term NEE per share growth target remains 4-6 percent. Further, we expect that dividends should grow at the higher end of that range as we strive to get to the middle of our target payout ratio of 55-65 percent.
Looking to the rest of fiscal 2017, we are confirming our original NEE guidance range of $3.50-$3.60 per fully diluted share. It is likely that earnings will fall in the lower half of that range given the significantly warmer and more volatile weather during the first half of fiscal 2017, which represents a majority of the heating season in our service territories.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2017 second quarter financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, May 3 |
||
|
8 a.m. CT (9 a.m. ET) |
|||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 412-317-5142 | |
|
International: | |||
The call will also be webcast in a listen-only format for the media and general public. The webcast can be accessed at SpireEnergy.com under the Investors tab. A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on May 3 to June 3 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10105352. A replay of the webcast will be available at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities - Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our non-utility operations include Spire Marketing which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas assets, and 4) investing in innovation. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-Q for the quarter ended March 31, 2017 to be filed with the Securities and Exchange Commission later today.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions. These adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. In calculating net economic earnings, management also excludes from net income the after-tax impacts related to acquisition, divestiture, and restructuring activities, including costs related to acquisitions and integration. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
|
Condensed Consolidated Statements of Income - Unaudited | |||||||||||||||||
|
(In Millions, except per share amounts) |
Three months ended March 31, |
Six months ended March 31, | |||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||||
|
Operating Revenues: |
|||||||||||||||||
|
Gas Utility |
$ |
641.1 |
$ |
611.5 |
$ |
1,113.4 |
$ |
1,010.3 |
|||||||||
|
Gas Marketing and other |
22.3 |
(2.2) |
45.1 |
(1.6) |
|||||||||||||
|
Total Operating Revenues |
663.4 |
609.3 |
1,158.5 |
1,008.7 |
|||||||||||||
|
Operating Expenses: |
|||||||||||||||||
|
Gas Utility |
|||||||||||||||||
|
Natural and propane gas |
254.3 |
261.1 |
448.1 |
409.6 |
|||||||||||||
|
Operation and maintenance |
98.4 |
94.3 |
197.8 |
185.9 |
|||||||||||||
|
Depreciation and amortization |
37.9 |
33.8 |
75.6 |
67.3 |
|||||||||||||
|
Taxes, other than income taxes |
48.3 |
43.9 |
81.7 |
72.1 |
|||||||||||||
|
Total Gas Utility Operating Expenses |
438.9 |
433.1 |
803.2 |
734.9 |
|||||||||||||
|
Gas Marketing and other |
44.1 |
8.5 |
85.8 |
19.1 |
|||||||||||||
|
Total Operating Expenses |
483.0 |
441.6 |
889.0 |
754.0 |
|||||||||||||
|
Operating Income |
180.4 |
167.7 |
269.5 |
254.7 |
|||||||||||||
|
Other Income |
3.6 |
0.8 |
4.1 |
2.2 |
|||||||||||||
|
Interest Charges: |
|||||||||||||||||
|
Interest on long-term debt |
19.2 |
16.7 |
38.3 |
33.6 |
|||||||||||||
|
Other interest charges |
3.5 |
2.6 |
6.5 |
4.7 |
|||||||||||||
|
Total Interest Charges |
22.7 |
19.3 |
44.8 |
38.3 |
|||||||||||||
|
Income Before Income Taxes |
161.3 |
149.2 |
228.8 |
218.6 |
|||||||||||||
|
Income Tax Expense |
53.3 |
48.4 |
75.6 |
70.9 |
|||||||||||||
|
Net Income |
$ |
108.0 |
$ |
100.8 |
$ |
153.2 |
$ |
147.7 |
|||||||||
|
Weighted Average Number of Common Shares Outstanding: |
|||||||||||||||||
|
Basic |
45.6 |
43.3 |
45.6 |
43.3 |
|||||||||||||
|
Diluted |
45.7 |
43.5 |
45.7 |
43.5 |
|||||||||||||
|
Basic Earnings Per Share of Common Stock |
$ |
2.36 |
$ |
2.32 |
$ |
3.35 |
$ |
3.40 |
|||||||||
|
Diluted Earnings Per Share of Common Stock |
$ |
2.36 |
$ |
2.31 |
$ |
3.34 |
$ |
3.39 |
|||||||||
|
Dividends Declared Per Share of Common Stock |
$ |
0.53 |
$ |
0.49 |
$ |
1.05 |
$ |
0.98 |
|||||||||
|
Condensed Consolidated Balance Sheets - Unaudited | |||||||||||
|
(In Millions)
|
March 31, |
September 30, |
March 31, | ||||||||
|
2017 |
2016 |
2016 | |||||||||
|
ASSETS |
|||||||||||
|
Utility Plant |
$ |
4,978.8 |
$ |
4,793.6 |
$ |
4,271.3 |
|||||
|
Less: Accumulated depreciation and amortization |
1,585.9 |
1,506.4 |
1,286.1 |
||||||||
|
Net Utility Plant |
3,392.9 |
3,287.2 |
2,985.2 |
||||||||
|
Non-utility Property |
26.6 |
13.7 |
13.8 |
||||||||
|
Goodwill |
1,163.9 |
1,164.9 |
946.0 |
||||||||
|
Other Investments |
63.2 |
62.1 |
61.1 |
||||||||
|
Other Property and Investments |
1,253.7 |
1,240.7 |
1,020.9 |
||||||||
|
Current Assets: |
|||||||||||
|
Cash and cash equivalents |
19.6 |
5.2 |
8.7 |
||||||||
|
Accounts receivable (net of allowance for doubtful accounts) |
345.6 |
220.7 |
265.0 |
||||||||
|
Delayed customer billings |
11.6 |
1.6 |
10.1 |
||||||||
|
Inventories |
146.4 |
202.3 |
124.0 |
||||||||
|
Other |
161.1 |
139.8 |
96.0 |
||||||||
|
Total Current Assets |
684.3 |
569.6 |
503.8 |
||||||||
|
Regulatory Assets and Other Deferred Charges |
925.8 |
966.9 |
797.6 |
||||||||
|
Total Assets |
$ |
6,256.7 |
$ |
6,064.4 |
$ |
5,307.5 |
|||||
|
CAPITALIZATION AND LIABILITIES |
|||||||||||
|
Capitalization: |
|||||||||||
|
Common stock and paid-in capital |
$ |
1,223.4 |
$ |
1,221.5 |
$ |
1,083.7 |
|||||
|
Retained earnings |
655.9 |
550.9 |
599.4 |
||||||||
|
Accumulated other comprehensive income (loss) |
3.7 |
(4.2) |
(1.7) |
||||||||
|
Total Common Stock Equity |
1,883.0 |
1,768.2 |
1,681.4 |
||||||||
|
Long-term debt |
1,925.3 |
1,820.7 |
1,839.3 |
||||||||
|
Total Capitalization |
3,808.3 |
3,588.9 |
3,520.7 |
||||||||
|
Current Liabilities: |
|||||||||||
|
Current portion of long-term debt |
— |
250.0 |
— |
||||||||
|
Notes payable |
567.4 |
398.7 |
253.6 |
||||||||
|
Accounts payable |
218.6 |
210.9 |
127.1 |
||||||||
|
Advance customer billings |
14.5 |
70.2 |
31.7 |
||||||||
|
Accrued liabilities and other |
214.8 |
231.5 |
206.4 |
||||||||
|
Total Current Liabilities |
1,015.3 |
1,161.3 |
618.8 |
||||||||
|
Deferred Credits and Other Liabilities: |
|||||||||||
|
Deferred income taxes |
690.6 |
607.3 |
564.2 |
||||||||
|
Pension and postretirement benefit costs |
308.1 |
303.7 |
254.8 |
||||||||
|
Asset retirement obligations |
212.4 |
206.4 |
162.8 |
||||||||
|
Regulatory liabilities |
144.1 |
130.7 |
110.7 |
||||||||
|
Other |
77.9 |
66.1 |
75.5 |
||||||||
|
Total Deferred Credits and Other Liabilities |
1,433.1 |
1,314.2 |
1,168.0 |
||||||||
|
Total Capitalization and Liabilities |
$ |
6,256.7 |
$ |
6,064.4 |
$ |
5,307.5 |
|||||
|
Condensed Consolidated Statements of Cash Flows - Unaudited | |||||||
|
(In Millions) |
Six months ended March 31, | ||||||
|
2017 |
2016 | ||||||
|
Operating Activities: |
|||||||
|
Net Income |
$ |
153.2 |
$ |
147.7 |
|||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
|
Depreciation, amortization, and accretion |
75.8 |
67.6 |
|||||
|
Deferred income taxes and investment tax credits |
75.4 |
71.0 |
|||||
|
Changes in assets and liabilities |
(81.4) |
(42.9) |
|||||
|
Other |
3.1 |
(0.4) |
|||||
|
Net cash provided by operating activities |
226.1 |
243.0 |
|||||
|
Investing Activities: |
|||||||
|
Capital expenditures |
(187.3) |
(121.8) |
|||||
|
Acquisition activity |
3.8 |
— |
|||||
|
Other |
0.6 |
(0.7) |
|||||
|
Net cash used in investing activities |
(182.9) |
(122.5) |
|||||
|
Financing Activities: |
|||||||
|
Repayment of long-term debt |
(393.8) |
(80.0) |
|||||
|
Issuance of long-term debt |
250.0 |
80.0 |
|||||
|
Issuance (repayment) of short-term debt - net |
168.7 |
(84.4) |
|||||
|
Issuance of common stock |
0.1 |
2.1 |
|||||
|
Dividends paid |
(46.8) |
(41.6) |
|||||
|
Other |
(7.0) |
(1.7) |
|||||
|
Net cash provided by financing activities |
(28.8) |
(125.6) |
|||||
|
Net Increase (Decrease) in Cash and Cash Equivalents |
14.4 |
(5.1) |
|||||
|
Cash and Cash Equivalents at Beginning of Period |
5.2 |
13.8 |
|||||
|
Cash and Cash Equivalents at End of Period |
$ |
19.6 |
$ |
8.7 |
|||
|
Net Economic Earnings and Reconciliation to GAAP - Quarter | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas Utility |
Gas Marketing |
Other |
Total |
Per Diluted Share (2) | |||||||||||||||||
|
Three Months Ended March 31, 2017 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
112.3 |
$ |
(1.0) |
$ |
(3.3) |
$ |
108.0 |
$ |
2.36 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
1.6 |
— |
1.6 |
0.04 |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
0.1 |
— |
0.1 |
— |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
— |
— |
0.1 |
0.1 |
— |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.1) |
(0.6) |
— |
(0.7) |
(0.02) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
112.2 |
$ |
— |
$ |
(3.2) |
$ |
109.0 |
$ |
2.38 |
||||||||||||
|
Diluted EPS (GAAP) |
2.45 |
(0.02) |
(0.07) |
2.36 |
||||||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
2.45 |
— |
(0.07) |
2.38 |
||||||||||||||||||
|
Three Months Ended March 31, 2016 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
102.4 |
$ |
1.5 |
$ |
(3.1) |
$ |
100.8 |
$ |
2.31 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
2.9 |
— |
2.9 |
0.07 |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
0.1 |
— |
0.1 |
— |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.5) |
— |
(0.5) |
(0.01) |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.2 |
— |
1.8 |
2.0 |
0.04 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.1) |
(1.0) |
(0.7) |
(1.8) |
(0.04) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
102.5 |
$ |
3.0 |
$ |
(2.0) |
$ |
103.5 |
$ |
2.37 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
2.34 |
$ |
0.04 |
$ |
(0.07) |
$ |
2.31 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
2.35 |
$ |
0.07 |
$ |
(0.05) |
$ |
2.37 |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. | ||||||||||||||||||||||
|
(2) Net economic earnings per share is generally calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. | ||||||||||||||||||||||
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Net Economic Earnings and Reconciliation to GAAP - Year-to-Date | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas Utility |
Gas Marketing |
Other |
Total |
Per Diluted Share(2) | |||||||||||||||||
|
Six Months Ended March 31, 2017 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
164.0 |
$ |
(1.8) |
$ |
(9.0) |
$ |
153.2 |
$ |
3.34 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
5.4 |
— |
5.4 |
0.12 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.2) |
— |
(0.2) |
— |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.1 |
— |
0.1 |
0.2 |
0.01 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.1) |
(2.0) |
— |
(2.1) |
(0.05) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
164.0 |
$ |
1.4 |
$ |
(8.9) |
$ |
156.5 |
$ |
3.42 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.58 |
$ |
(0.04) |
$ |
(0.20) |
$ |
3.34 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.59 |
$ |
0.03 |
$ |
(0.20) |
$ |
3.42 |
||||||||||||||
|
Six Months Ended March 31, 2016 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
151.7 |
$ |
3.8 |
$ |
(7.8) |
$ |
147.7 |
$ |
3.39 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized gain on energy-related derivatives |
(0.1) |
(1.9) |
— |
(2.0) |
(0.04) |
|||||||||||||||||
|
Lower of cost or market inventory adjustments (1) |
— |
0.7 |
— |
0.7 |
0.02 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.6) |
— |
(0.6) |
(0.02) |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
1.4 |
— |
1.9 |
3.3 |
0.07 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.5) |
0.7 |
(0.7) |
(0.5) |
(0.01) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
152.5 |
$ |
2.7 |
$ |
(6.6) |
$ |
148.6 |
$ |
3.41 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.48 |
$ |
0.09 |
$ |
(0.18) |
$ |
3.39 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.50 |
$ |
0.07 |
$ |
(0.16) |
$ |
3.41 |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. | ||||||||||||||||||||||
|
(2) Net economic earnings per share is generally calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. | ||||||||||||||||||||||
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Contribution Margin and Reconciliation to GAAP | ||||||||||||||||||||
|
(In Millions) |
Gas Utility |
Gas Marketing |
Other |
Eliminations |
Consolidated | |||||||||||||||
|
Three Months Ended March 31, 2017 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
182.6 |
$ |
(1.7) |
$ |
(0.5) |
$ |
— |
$ |
180.4 |
||||||||||
|
Operation and maintenance expenses |
99.3 |
1.5 |
2.1 |
(1.4) |
101.5 |
|||||||||||||||
|
Depreciation and amortization |
37.9 |
— |
0.1 |
— |
38.0 |
|||||||||||||||
|
Taxes, other than income taxes |
48.3 |
0.1 |
— |
— |
48.4 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(34.1) |
(0.1) |
— |
— |
(34.2) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
334.0 |
(0.2) |
1.7 |
(1.4) |
334.1 |
|||||||||||||||
|
Natural and propane gas costs |
275.6 |
22.3 |
0.1 |
(2.9) |
295.1 |
|||||||||||||||
|
Gross receipts tax expense |
34.1 |
0.1 |
— |
— |
34.2 |
|||||||||||||||
|
Operating Revenues |
$ |
643.7 |
$ |
22.2 |
$ |
1.8 |
$ |
(4.3) |
$ |
663.4 |
||||||||||
|
Three Months Ended March 31, 2016 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
167.4 |
$ |
2.5 |
$ |
(2.2) |
$ |
— |
$ |
167.7 |
||||||||||
|
Operation and maintenance expenses |
94.6 |
1.4 |
3.1 |
(0.3) |
98.8 |
|||||||||||||||
|
Depreciation and amortization |
33.8 |
— |
0.1 |
— |
33.9 |
|||||||||||||||
|
Taxes, other than income taxes |
43.9 |
0.1 |
(0.1) |
— |
43.9 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(32.2) |
(0.1) |
— |
— |
(32.3) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
307.5 |
3.9 |
0.9 |
(0.3) |
312.0 |
|||||||||||||||
|
Natural and propane gas costs |
273.0 |
4.0 |
— |
(12.0) |
265.0 |
|||||||||||||||
|
Gross receipts tax expense |
32.2 |
0.1 |
— |
— |
32.3 |
|||||||||||||||
|
Operating Revenues |
$ |
612.7 |
$ |
8.0 |
$ |
0.9 |
$ |
(12.3) |
$ |
609.3 |
||||||||||
|
Six Months Ended March 31, 2017 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
273.2 |
$ |
(3.0) |
$ |
(0.7) |
$ |
— |
$ |
269.5 |
||||||||||
|
Operation and maintenance expenses |
199.8 |
2.9 |
3.9 |
(2.6) |
204.0 |
|||||||||||||||
|
Depreciation and amortization |
75.6 |
— |
0.2 |
— |
75.8 |
|||||||||||||||
|
Taxes, other than income taxes |
81.7 |
0.2 |
0.1 |
— |
82.0 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(53.1) |
(0.1) |
— |
— |
(53.2) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
577.2 |
— |
3.5 |
(2.6) |
578.1 |
|||||||||||||||
|
Natural and propane gas costs |
490.1 |
43.8 |
0.1 |
(6.8) |
527.2 |
|||||||||||||||
|
Gross receipts tax expense |
53.1 |
0.1 |
— |
— |
53.2 |
|||||||||||||||
|
Operating Revenues |
$ |
1,120.4 |
$ |
43.9 |
$ |
3.6 |
$ |
(9.4) |
$ |
1,158.5 |
||||||||||
|
Six Months Ended March 31, 2016 |
||||||||||||||||||||
|
Operating Income (Loss) (GAAP) |
$ |
251.4 |
$ |
6.3 |
$ |
(3.0) |
$ |
— |
$ |
254.7 |
||||||||||
|
Operation and maintenance expenses |
186.5 |
3.0 |
4.5 |
(0.6) |
193.4 |
|||||||||||||||
|
Depreciation and amortization |
67.3 |
— |
0.3 |
— |
67.6 |
|||||||||||||||
|
Taxes, other than income taxes |
72.1 |
0.1 |
(0.1) |
— |
72.1 |
|||||||||||||||
|
Less: Gross receipts tax expense |
(49.7) |
(0.1) |
— |
— |
(49.8) |
|||||||||||||||
|
Contribution Margin (Non-GAAP) |
527.6 |
9.3 |
1.7 |
(0.6) |
538.0 |
|||||||||||||||
|
Natural and propane gas costs |
434.9 |
11.4 |
— |
(25.4) |
420.9 |
|||||||||||||||
|
Gross receipts tax expense |
49.7 |
0.1 |
— |
— |
49.8 |
|||||||||||||||
|
Operating Revenues |
$ |
1,012.2 |
$ |
20.8 |
$ |
1.7 |
$ |
(26.0) |
$ |
1,008.7 |
||||||||||
SOURCE Spire Inc.
Article Date
5/3/20174/12/2017 - Spire to Host Earnings Conference Call on May 3
Spire to Host Earnings Conference Call on May 3
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, April 12, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, May 3 to discuss our fiscal 2017 second quarter financial results. We will issue our earnings news release before the market opens that day and it will be available on our website at SpireEnergy.com under the News tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, May 3 |
|
|
8 a.m. CT (9 a.m. ET) |
||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
International: |
412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at SpireEnergy.com under the Investors tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on May 3 until June 3 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10105352. A replay of the webcast will be available on our website at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities – Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas assets, and 4) investing in innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
SOURCE Spire Inc.
Article Date
4/12/2017Missouri Gas Energy Outlines Plan to Modernize Operations and Enhance Customer Service
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, April 11, 2017 /PRNewswire/ -- Today, as required by the state of Missouri, Missouri Gas Energy (MGE) proposed a rate change with the Missouri Public Service Commission. The plan outlines MGE's ongoing investments to upgrade technology for easier and faster customer service and a continued commitment to modernize pipeline infrastructure, all while creating benefits for customers through growth. It details accelerated infrastructure upgrades and significant cost savings, which combine to keep price increases down to $5.50 per month for the typical residential customer. This is the first requested increase to customer delivery charges in nearly four years and represents a $37 million net increase. Even with this increase, customer bills will still be lower than they were 10 years ago.
"I'm so proud of our employees for delivering on the promise to get natural gas to our customers safely and reliably every day. We also promise to keep costs low, and this plan shows that we're working hard to honor that commitment to our customers," said MGE CEO Steve Lindsey. "We've managed to keep customer bills lower than they were 10 years ago while accelerating important infrastructure upgrades. In fact, customer bills will be 11 percent lower than they were in 2007."
Lindsey continued, "In the four years since we submitted our last plan, we increased the number of construction jobs and pushed ourselves to replace more than 250 miles of pipeline. And, we've upgraded our outdated technology systems so that, this fall, customers will experience faster and easier service with mobile technology. We've been able to make these upgrades and hold costs down by balancing the price of upgrades with the lower cost of natural gas and our ability to significantly cut operating costs. Lower operating costs are a direct benefit of growing our company—with a larger company we've been able to spread costs among more customers. And that's a really good thing for our customers."
In addition to maintaining a safe and reliable system every day, the plan outlines service enhancements:
ABOUT MISSOURI GAS ENERGY
At Missouri Gas Energy we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day our natural gas utility serves 500,000 customers including residential, commercial and industrial homes and businesses in Kansas City metropolitan areas and 31 counties in Missouri. MGE is a subsidiary of Spire Inc. (NYSE: SR). For more information, please visit www.MissouriGasEnergy.com.
CONTACT: Jenny Gobble/314.342.3300
SOURCE Missouri Gas Energy
Article Date
4/11/2017Laclede Gas Outlines Plan to Modernize Operations and Enhance Customer Service
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, April 11, 2017 /PRNewswire/ -- Today, as required by the state of Missouri, Laclede Gas proposed a rate change with the Missouri Public Service Commission. The plan outlines Laclede's ongoing investments to upgrade technology for easier and faster customer service and a continued commitment to modernize pipeline infrastructure, all while creating benefits for customers through growth. It details accelerated infrastructure upgrades and significant cost savings, which combine to keep price increases down to $3.70 per month for the typical residential customer. This is the first requested increase to customer delivery charges in four years and represents a $29 million net increase. Even with this increase, customer bills will still be lower than they were 10 years ago.
"I'm so proud of our employees for delivering on the promise to get natural gas to our customers safely and reliably every day. We also promise to keep costs low, and this plan shows that we're working hard to honor that commitment to our customers," said Laclede Gas CEO Steve Lindsey. "We've managed to keep customer bills lower than they were 10 years ago while accelerating important infrastructure upgrades. In fact, customer bills will be 14 percent lower than they were in 2007."
Lindsey continued, "In the four years since we submitted our last plan, we increased the number of construction jobs and pushed ourselves to replace more than 310 miles of pipeline. And, we've upgraded our outdated technology systems so that, this fall, customers will experience faster and easier service with mobile technology. We've been able to make these upgrades and hold costs down by balancing the price of upgrades with the lower cost of natural gas and our ability to significantly cut operating costs. Lower operating costs are a direct benefit of growing our company—with a larger company we've been able to spread costs among more customers. And that's a really good thing for our customers."
In addition to maintaining a safe and reliable system every day, the plan outlines service enhancements:
ABOUT LACLEDE GAS COMPANY
At Laclede Gas we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day our natural gas utility serves 640,000 customers including residential, commercial and industrial homes and businesses in St. Louis metropolitan areas and 10 counties in Missouri. Laclede Gas is a subsidiary of Spire Inc. (NYSE: SR). For more information, please visit www.LacledeGas.com.
CONTACT: Jenny Gobble/314.342.3300
SOURCE Laclede Gas Company
Article Date
4/11/20174/3/2017 - Spire Issues 2.5 Million Common Shares
Spire Issues 2.5 Million Common Shares
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, April 3, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) today issued 2,504,700 shares of its common stock related to the conversion of equity units that were issued in June 2014 as part of the funding for the acquisition of Alabama Gas Corporation (Alagasco). We received approximately $142 million in net proceeds as a result of the transaction, and we intend to use the funds to repay Spire Inc. indebtedness.
"Our planned equity issuance today marks the completion of a very successful financing of the Alagasco acquisition. At the front end in 2014, the mandatory convertible equity unit structure provided the best financing execution and pricing. Today we were able to issue fewer common shares as we, our investors and customers all benefitted from the significant value we have created at Spire over the last three years," said Steve Rasche, executive vice president and chief financial officer of Spire.
Today's share issuance is in settlement of forward purchase contracts underlying the 2,875,000 equity units issued at $50 per unit. The contracts call for the units to be converted to up to 2,504,700 shares of common stock at a rate of 0.8712 shares per unit, with fractional shares settled in cash. The conversion rate is based on the achievement of at least 25 percent price appreciation in the value of Spire common stock shares since the units were issued. The purchase was funded by proceeds from the successful remarketing on February 27, 2017, of the junior subordinated notes that constituted a component of the units.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers, making us the fifth-largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities—Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas assets and 4) investing in innovation.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
SOURCE Spire Inc.
Article Date
4/3/2017Spire and Laclede Gas Finalize Debt Offerings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, March 9, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) ("Spire") and its Laclede Gas Company subsidiary today finalized the terms of private placements with institutional investors for Laclede Gas first mortgage bonds totaling $170 million and Spire senior unsecured notes totaling $100 million. The companies intend to use the net proceeds primarily to repay other debt as well as for general corporate purposes.
The Laclede Gas debt consists of three tranches that can be funded with certain agreed upon restrictions at any point from the completion of final documentation up to September 15, 2017. The final interest rate on each tranche will be set at the date of funding:
The Spire senior unsecured notes have a ten-year maturity and will bear interest at 3.93 percent per annum, with funding expected to occur on March 15, 2017.
The offer and sale of these debt securities has not been registered under the Securities Act of 1933, as amended, and the securities may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation of any offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers, making us the fifth-largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities—Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas assets and 4) investing in innovation.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond Spire's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see Spire's Annual Report on Form 10-K for the fiscal year ended September 30, 2016 and Spire's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, each as filed with the Securities and Exchange Commission.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
SOURCE Spire Inc.
Article Date
3/9/20172/23/2017 - Spire Prices $150 Million Debt Offering
Spire Prices $150 Million Debt Offering
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Feb. 22, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) announced today that it has priced a registered underwritten public offering (the "Offering") of an aggregate principal amount of $150 million of its 3.543 percent senior notes due 2024 (the "2024 Notes"), of which $6.25 million will be sold by Spire and $143.75 million will be sold by certain selling securityholders.
Spire intends to use the net proceeds from its sale of the $6.25 million of 2024 Notes to repay short-term debt. Spire will not receive any proceeds from the sale of the 2024 Notes by the selling securityholders. The Offering is expected to close on February 27, 2017, subject to customary closing conditions.
In addition, Spire announced today that it has successfully remarketed $143.75 million principal amount of its 2014 Series A 2.00 percent remarketable junior subordinated notes due 2022 (the "Junior Notes") originally issued as a part of Spire's offering of its corporate units (the "Corporate Units") on June 11, 2014 (the "Remarketing"). As a result of the Remarketing, the annual interest rate on the Junior Notes was reset to 3.424 percent. Proceeds from the Remarketing will be used to purchase U.S. Treasury securities that will be pledged to secure the stock purchase obligations of the holders of the Corporate Units. The Remarketing is expected to close on February 27, 2017, subject to customary closing conditions.
Credit Suisse and Wells Fargo Securities are acting as book-running managers of the Offering.
The Offering will be made only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained from:
Credit Suisse Securities (USA) LLC
One Madison Avenue
New York, NY 10010-3629
Attn: Credit Suisse Prospectus Department
800-221-1037
newyork.prospectus@credit-suisse.com
or
Wells Fargo Securities, LLC
608 2nd Avenue South, Suite 1000
Minneapolis, MN 55402
Attn: WFS Customer Service
800-645-3751
wfscustomerservice@wellsfargo.com
A shelf registration statement relating to the securities in the Offering has been filed previously with the Securities and Exchange Commission and is effective.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer, solicitation or sale in such jurisdiction.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers, making us the fifth-largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities—Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas assets and 4) investing in innovation.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2016 and the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, each as filed with the Securities and Exchange Commission.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Media Contact:
Jessica B. Willingham
314-342-3300
SOURCE Spire Inc.
Article Date
2/23/2017Spire Announces Launch of $150 Million Debt Offering
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Feb. 22, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) announced today that it has commenced a registered underwritten public offering (the "Offering") of an aggregate principal amount of $150 million of its senior notes due 2024 (the "2024 Notes"), of which $6.25 million are being offered by Spire and $143.75 million are being offered by certain selling securityholders. Spire is concurrently remarketing $143.75 million principal amount of its 2014 Series A 2.00 percent remarketable junior subordinated notes due 2022, which were originally issued as part of an offering of corporate units in June 2014.
Spire intends to use the net proceeds from its sale of the $6.25 million of 2024 Notes to repay short-term debt. Spire will not receive any proceeds from the sale of the 2024 Notes by the selling securityholders.
Credit Suisse and Wells Fargo Securities are acting as book-running managers of the Offering.
The Offering will be made only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained from:
Credit Suisse Securities (USA) LLC
One Madison Avenue
New York, NY 10010-3629
Attn: Credit Suisse Prospectus Department
800-221-1037
newyork.prospectus@credit-suisse.com
or
Wells Fargo Securities, LLC
608 2nd Avenue South, Suite 1000
Minneapolis, MN 55402
Attn: WFS Customer Service
800-645-3751
wfscustomerservice@wellsfargo.com
A shelf registration statement relating to the securities in the Offering has been filed previously with the Securities and Exchange Commission and is effective.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer, solicitation or sale in such jurisdiction.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers, making us the fifth-largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities—Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our non-utility operations include Spire Marketing, which provides natural gas marketing and related services. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas assets and 4) investing in innovation.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2016 and the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, each as filed with the Securities and Exchange Commission.
SOURCE Spire Inc.
Article Date
2/22/2017Spire Announces Redemption of Floating Rate Senior Notes Due 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Feb. 8, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) announced today that it has delivered a notice of optional redemption to the holders of its Floating Rate Senior Notes due 2017 (CUSIP No. 505597 AC8, ISIN US505597AC86) (the "Floating Rate Notes"). Spire has called all of the outstanding Floating Rate Notes for redemption on March 10, 2017 (the "Redemption Date"), at a redemption price equal to 100 percent of the principal amount on the Redemption Date, plus accrued and unpaid interest to, but excluding, the Redemption Date. There are currently $250 million aggregate principal amount of the Floating Rate Notes outstanding. Spire intends to use short-term borrowings to fund the redemption.
This news release is not an offer to purchase, or a solicitation of an offer to sell, the Floating Rate Notes.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities — Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our non-utility businesses, Spire Marketing Inc. and Spire Natural Gas Fueling Solutions, provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas assets; and 4) investing in innovation. Learn more at SpireEnergy.com.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2016, and the Company's Quarterly Report on Form 10-Q for the quarter ended Dec. 31, 2016, each as filed with the Securities and Exchange Commission.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
SOURCE Spire Inc.
Article Date
2/9/20172/1/2017 - Spire Reports First Quarter Results
Spire Reports First Quarter Results
Source: PR Newswire
ST. LOUIS, Feb. 1, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported operating results for its fiscal 2017 first quarter ended December 31, 2016. Highlights include:
"We are off to a good start in fiscal 2017, building on our strong performance last year. We delivered solid operating and financial performance in the first quarter in warmer than normal weather across our footprint. We remain on track to hit our earnings per share target for the year," said Suzanne Sitherwood, president and chief executive officer of Spire. "We continued to deliver on our strategy and do what we said we would do. This includes investing in infrastructure upgrades and other organic growth initiatives, and progressing with our Spire STL Pipeline project. At the same time, we are working to complete the integration of our newest gas utilities and the transition of all of our utilities to Spire late this summer."
|
First Quarter Results |
Three months ended December 31, | ||||||||||||||||
|
(Millions) |
(Per Diluted Share) | ||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
|||||||||||||||||
|
Gas Utility |
$ |
51.8 |
$ |
50.0 |
$ |
1.13 |
$ |
1.15 |
|||||||||
|
Gas Marketing |
1.4 |
(0.3) |
0.03 |
— |
|||||||||||||
|
Other |
(5.7) |
(4.6) |
(0.12) |
(0.11) |
|||||||||||||
|
Total |
$ |
47.5 |
$ |
45.1 |
$ |
1.04 |
$ |
1.04 |
|||||||||
|
Acquisition-related pre-tax costs |
(0.1) |
(1.3) |
— |
(0.03) |
|||||||||||||
|
Fair value adjustments, pre-tax |
(3.6) |
4.4 |
(0.08) |
0.10 |
|||||||||||||
|
Income tax effect of adjustments |
1.4 |
(1.3) |
0.03 |
(0.03) |
|||||||||||||
|
Net Income |
$ |
45.2 |
$ |
46.9 |
$ |
0.99 |
$ |
1.08 |
|||||||||
|
Average Shares Outstanding in Millions |
45.7 |
43.4 |
|||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For the three months ended December 31, 2016, the first quarter of our fiscal year, we reported consolidated net income of $45.2 million (or $0.99 per diluted share) compared to $46.9 million (or $1.08 per diluted share) in the prior year period. Net economic earnings (NEE) for the first quarter of fiscal 2017 were $47.5 million, up from $45.1 million in 2016, reflecting higher earnings in Gas Utility and Gas Marketing, slightly offset by higher costs in Other. NEE excludes from net income the effect of unrealized gains and losses on energy-related derivatives. It also excludes the impacts of acquisition, divestiture and restructuring activities in the fiscal year in which they occur, including expenses, financing impacts and operating results in fiscal 2016 associated with the acquisition of EnergySouth (Mobile Gas and Willmut Gas) as well as overall integration activities. While NEE increased, NEE per share was $1.04 in both periods reflecting a 5 percent increase in average shares outstanding.
First quarter fiscal 2017 results were impacted by milder winter weather compared to normal and by timing and variability of degree days in the areas where our businesses operate. In general, these conditions reduce demand and operating margin (non-GAAP; see "Operating Margin and Reconciliation to GAAP"), and benefit certain weather-sensitive expenses, for our gas utilities. For Laclede Gas and Missouri Gas Energy (MGE, collectively our Missouri Utilities), first quarter weather was approximately 16 percent warmer than normal this year, compared to 27 percent warmer than normal a year ago. For Alagasco, first quarter temperatures were 29 percent warmer than normal this year and 37 percent warmer than normal last year.
Generally, volatility in commodity prices and demand creates opportunities for our non-regulated businesses, as discussed under Gas Marketing below.
Gas Utility
The Gas Utility segment includes the regulated gas distribution operations of our five gas utilities - Alagasco, Laclede Gas, MGE, Mobile Gas and Willmut Gas. First quarter net income was $51.7 million for fiscal 2017, compared to $49.3 million for the same period a year ago. NEE for the segment was $51.8 million, up from $50.0 million in the prior year. The increase in earnings was driven by an increase in operating margin partially offset by higher other operation and maintenance expenses, both of which reflect the addition of EnergySouth.
Operating margin increased by $23.1 million due to the inclusion of EnergySouth ($19.4 million), higher Infrastructure System Replacement Surcharge (ISRS) revenues for the Missouri Utilities ($3.3 million) and lower net regulatory adjustments for Alagasco ($1.2 million). Gas utility margin was constrained by mild weather in both periods as noted above. The negative impact on margin of all other variances, including weather, was $0.8 million.
Other operation and maintenance expenses of $99.4 million for the quarter were up $7.8 million, reflecting the inclusion of EnergySouth. Excluding EnergySouth expenses, other operation and maintenance expenses were lower by approximately $1.0 million driven by a decrease in employee-related costs and integration costs, partially offset by higher professional fees. Depreciation and amortization expenses increased by $4.2 million from last year, with $2.7 million from the inclusion of EnergySouth and the remainder reflecting higher capital investment including infrastructure upgrades for the other utilities. Tax other than income taxes increased by $5.2 million reflecting the addition of EnergySouth and an increase in property taxes.
Gas Marketing
First quarter fiscal 2017, the Gas Marketing segment reported a loss of $0.8 million compared to net income of $2.3 million in the prior-year period. Removing fair value adjustments in both periods, NEE increased to $1.4 million from a loss of $0.3 million in the prior year, driven mainly by higher volumes and an increase in trading and storage optimization.
Other
Other non-utility operations and corporate costs were $5.7 million in the first quarter of 2017, up from $4.7 million in the year-ago period. On an NEE basis, first quarter costs were $5.7 million in 2017 and $4.6 million a year ago. A significant portion of these costs are related to interest expense on corporate debt. Interest expense increased period-over-period reflecting the additional debt from the acquisition of EnergySouth as well as higher interest costs on floating-rate debt.
Balance Sheets and Cash Flow
We continue to maintain a strong capital structure with ample liquidity. At December 31, 2016, we had a long-term capitalization of 50.2 percent equity, compared to 49.8 percent equity at September 30, 2016. Short-term borrowings outstanding at December 31, 2016 were $506.4 million compared to $377.1 million a year ago. These levels of short-term debt are in line with our typical seasonal borrowing needs, with the increase reflecting higher commodity costs and the addition of EnergySouth. We have significant capacity to meet our anticipated capital needs during the winter heating season.
On December 14, 2016, Spire, Laclede Gas and Alagasco entered into a new syndicated revolving credit facility under a loan agreement with a group of 11 banks, with an aggregate credit commitment of $975 million. The loan agreement replaces Spire's, Laclede Gas' and Alagasco's existing loan agreements which totaled $750 million. On December 21, 2016, Spire established a commercial paper program backed by the new line of credit for the issuance of up to $975 million of short-term, unsecured commercial paper notes.
Net cash provided by operating activities was $10.3 million for the quarter ended December 31, 2016, compared to $33.5 million for the first quarter a year ago. The decrease reflects a net decrease in working capital, partially offset by the timing of collections of gas costs under purchased gas cost riders in Missouri and Alabama.
Capital expenditures for fiscal 2016 were $89.3 million, up from $62.4 million in the prior year. The increase was driven by increased investment in infrastructure upgrades for our utilities and the addition of EnergySouth.
For additional details on Spire's results for the first quarter of fiscal 2017, please see the accompanying unaudited Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flow.
Spire STL Pipeline
On January 26, 2017, we filed a certificate application with the Federal Energy Regulatory Commission (FERC) seeking approval for our Spire STL Pipeline, an approximately 70-mile natural gas supply pipeline that will enhance reliability and the diversity of our physical transport portfolio while providing access to lower-cost shale gas from the Marcellus/Utica producing regions. Under the terms of a precedent agreement with Laclede Gas, executed on January 25, Laclede Gas will be a foundation shipper with a contractual commitment of 350 MMcf/d out of the total capacity of 400 MMcf/d. Our plans continue to reflect an expected fiscal 2019 in-service date. The estimated cost of the project remains $190 - $210 million.
Regulatory Matters
Alabama
Under the rate-setting process in Alabama, Alagasco and Mobile Gas each made their annual RSE filings with the Alabama Public Service Commission (APSC) in late October 2016. The RSE filings present each utility's budget for the fiscal year ending September 30, 2017. The filings include net income and a calculation of return on average common equity (ROE) for the year at 10.8 percent (plus a 5 basis-point adder applicable to Alagasco for achieving certain customer satisfaction rankings). Reflected in the filings are the anticipated costs of operations of their respective systems as well as a prudent level of investment to maintain and upgrade their infrastructure over the next year.
The filings were reviewed by APSC and new rates were effective December 1, 2016.
Missouri
Effective January 28, the Missouri Public Service Commission (MoPSC) approved increases in annual ISRS revenues of $4.5 million for Laclede Gas and $3.2 million for MGE. The additional amounts bring the annual ISRS run rate for our Missouri Utilities to $43.0 million. ISRS allows for more timely regulatory recovery of prudent investments made by gas utilities to improve the integrity, safety and reliability of their distribution systems while reducing maintenance costs.
Laclede Gas and MGE are anticipating filing concurrent general rate cases in mid-fiscal 2017 consistent with the MGE stipulation and agreement with the MoPSC. The general rate case process in Missouri can extend up to 11 months, and, under that schedule, any resulting change in rates would be anticipated in fiscal 2018.
Earnings Guidance and Outlook
We re-affirm our fiscal 2017 NEE guidance of $3.50 - $3.60 per fully diluted share and our annual long-term NEE per share growth target of 4 - 6 percent.
We continue to anticipate the issuance of 2.5 million shares in April 2017 (the beginning of our fiscal third quarter) in conjunction with the conversion of the equity units issued in 2014 as part of the Alagasco acquisition financing. The number of shares issued is based on the 20-day average volume-weighted price of our common stock leading up to the targeted settlement date in April 2017. The number of shares issued will range from 2.5 million to 3.1 million.
Expected Spire capital expenditures for fiscal 2017 remain approximately $410 million, with investment in our gas utilities being approximately $370 million. More than 70 percent of our fiscal 2017 utility capital spend is expected to be recovered in rates with minimal lag under regulatory mechanisms in Missouri, Alabama and Mississippi. Our 5-year (2016-2020) capital spending plan of at least $2.0 billion is also re-affirmed.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2017 first quarter financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, February 1 |
||||
|
8 a.m. CT (9 a.m. ET) |
|||||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|||
|
International: |
412-317-5142 |
||||
The call will also be webcast in a listen-only format for the media and general public. The webcast can be accessed at SpireEnergy.com under the Investors tab. A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on February 1 to March 1 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10098937. A replay of the webcast will be available at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities - Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our non-utility businesses, Spire Marketing Inc. and Spire Natural Gas Fueling Solutions, provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas assets, and 4) investing in innovation. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-Q for the quarter ended December 31, 2016 to be filed with the SEC later today.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "operating margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions. These adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. In calculating net economic earnings, management also excludes from net income the after-tax impacts related to acquisition, divestiture, and restructuring activities, including costs related to acquisitions and integration. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Operating margin adjusts operating income to include only those costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
|
Consolidated Statements of Income - Unaudited | |||||||||
|
Spire Inc. | |||||||||
|
(In Millions, except per share amounts) | |||||||||
|
Three months ended | |||||||||
|
2016 |
2015 | ||||||||
|
Operating Revenues: |
|||||||||
|
Gas Utility |
$ |
472.3 |
$ |
398.8 |
|||||
|
Gas Marketing and other |
22.8 |
0.6 |
|||||||
|
Total Operating Revenues |
495.1 |
399.4 |
|||||||
|
Operating Expenses: |
|||||||||
|
Gas Utility |
|||||||||
|
Natural and propane gas |
193.8 |
148.5 |
|||||||
|
Other operation and maintenance expenses |
99.4 |
91.6 |
|||||||
|
Depreciation and amortization |
37.7 |
33.5 |
|||||||
|
Taxes, other than income taxes |
33.4 |
28.2 |
|||||||
|
Total Gas Utility Operating Expenses |
364.3 |
301.8 |
|||||||
|
Gas Marketing and other |
41.7 |
10.6 |
|||||||
|
Total Operating Expenses |
406.0 |
312.4 |
|||||||
|
Operating Income |
89.1 |
87.0 |
|||||||
|
Other Income - Net |
0.5 |
1.4 |
|||||||
|
Interest Charges: |
|||||||||
|
Interest on long-term debt |
19.1 |
16.9 |
|||||||
|
Other interest charges |
3.0 |
2.1 |
|||||||
|
Total Interest Charges |
22.1 |
19.0 |
|||||||
|
Income Before Income Taxes |
67.5 |
69.4 |
|||||||
|
Income Tax Expense |
22.3 |
22.5 |
|||||||
|
Net Income |
$ |
45.2 |
$ |
46.9 |
|||||
|
Weighted Average Number of Common Shares Outstanding: |
|||||||||
|
Basic |
45.5 |
43.2 |
|||||||
|
Diluted |
45.7 |
43.4 |
|||||||
|
Basic Earnings Per Share of Common Stock |
$ |
0.99 |
$ |
1.08 |
|||||
|
Diluted Earnings Per Share of Common Stock |
$ |
0.99 |
$ |
1.08 |
|||||
|
Dividends Declared Per Share of Common Stock |
$ |
0.53 |
$ |
0.49 |
|||||
|
Condensed Consolidated Balance Sheets - Unaudited | |||||||||||
|
Spire Inc. | |||||||||||
|
(In Millions) | |||||||||||
|
December 31, |
September 30, |
December 31, | |||||||||
|
2016 |
2016 |
2015 | |||||||||
|
ASSETS |
|||||||||||
|
Utility Plant |
$ |
4,893.2 |
$ |
4,793.6 |
$ |
4,220.6 |
|||||
|
Less: Accumulated depreciation and amortization |
1,561.4 |
1,506.4 |
1,267.3 |
||||||||
|
Net Utility Plant |
3,331.8 |
3,287.2 |
2,953.3 |
||||||||
|
Non-utility Property |
19.7 |
13.7 |
13.9 |
||||||||
|
Goodwill |
1,161.4 |
1,164.9 |
946.0 |
||||||||
|
Other Investments |
61.9 |
62.1 |
60.8 |
||||||||
|
Other Property and Investments |
1,243.0 |
1,240.7 |
1,020.7 |
||||||||
|
Current Assets: |
|||||||||||
|
Cash and cash equivalents |
10.6 |
5.2 |
4.6 |
||||||||
|
Accounts receivable (net of allowance for doubtful accounts) |
422.7 |
220.7 |
297.5 |
||||||||
|
Delayed customer billings |
5.3 |
1.6 |
8.7 |
||||||||
|
Inventories |
190.5 |
202.3 |
203.5 |
||||||||
|
Other |
186.5 |
139.8 |
121.7 |
||||||||
|
Total Current Assets |
815.6 |
569.6 |
636.0 |
||||||||
|
Regulatory Assets and Other Deferred Charges |
919.7 |
966.9 |
788.8 |
||||||||
|
Total Assets |
$ |
6,310.1 |
$ |
6,064.4 |
$ |
5,398.8 |
|||||
|
CAPITALIZATION AND LIABILITIES |
|||||||||||
|
Capitalization: |
|||||||||||
|
Common stock and paid-in capital |
$ |
1,221.4 |
$ |
1,221.5 |
$ |
1,082.1 |
|||||
|
Retained earnings |
572.1 |
550.9 |
519.9 |
||||||||
|
Accumulated other comprehensive income (loss) |
3.2 |
(4.2) |
(1.7) |
||||||||
|
Total Common Stock Equity |
1,796.7 |
1,768.2 |
1,600.3 |
||||||||
|
Long-term debt |
1,821.3 |
1,820.7 |
1,838.9 |
||||||||
|
Total Capitalization |
3,618.0 |
3,588.9 |
3,439.2 |
||||||||
|
Current Liabilities: |
|||||||||||
|
Current portion of long-term debt |
250.0 |
250.0 |
— |
||||||||
|
Notes payable |
506.4 |
398.7 |
377.1 |
||||||||
|
Accounts payable |
273.8 |
210.9 |
159.5 |
||||||||
|
Advance customer billings |
60.2 |
70.2 |
59.3 |
||||||||
|
Accrued liabilities and other |
251.8 |
231.5 |
251.6 |
||||||||
|
Total Current Liabilities |
1,342.2 |
1,161.3 |
847.5 |
||||||||
|
Deferred Credits and Other Liabilities: |
|||||||||||
|
Deferred income taxes |
636.5 |
607.3 |
495.3 |
||||||||
|
Pension and postretirement benefit costs |
296.3 |
303.7 |
250.7 |
||||||||
|
Asset retirement obligations |
208.7 |
206.4 |
161.0 |
||||||||
|
Regulatory liabilities |
132.1 |
130.7 |
129.1 |
||||||||
|
Other |
76.3 |
66.1 |
76.0 |
||||||||
|
Total Deferred Credits and Other Liabilities |
1,349.9 |
1,314.2 |
1,112.1 |
||||||||
|
Total Capitalization and Liabilities |
$ |
6,310.1 |
$ |
6,064.4 |
$ |
5,398.8 |
|||||
|
Condensed Consolidated Statements of Cash Flow - Unaudited | |||||||
|
Spire Inc. | |||||||
|
(In Millions) | |||||||
|
Three months ended | |||||||
|
2016 |
2015 | ||||||
|
Operating Activities: |
|||||||
|
Net Income |
$ |
45.2 |
$ |
46.9 |
|||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
|
Depreciation, amortization, and accretion |
37.8 |
33.7 |
|||||
|
Deferred income taxes and investment tax credits |
22.1 |
22.4 |
|||||
|
Changes in assets and liabilities |
1.7 |
0.9 |
|||||
|
Other |
(96.5) |
(70.4) |
|||||
|
Net cash provided by operating activities |
10.3 |
33.5 |
|||||
|
Investing Activities: |
|||||||
|
Capital expenditures |
(89.3) |
(62.4) |
|||||
|
Acquisition activity |
3.8 |
— |
|||||
|
Other |
(0.4) |
(0.4) |
|||||
|
Net cash used in investing activities |
(85.9) |
(62.8) |
|||||
|
Financing Activities: |
|||||||
|
Repayment of long-term debt |
— |
(80.0) |
|||||
|
Issuance of long-term debt |
— |
80.0 |
|||||
|
Issuance of short-term debt - net |
107.7 |
39.1 |
|||||
|
Issuance of common stock |
0.1 |
1.1 |
|||||
|
Dividends paid |
(22.8) |
(19.9) |
|||||
|
Other |
(4.0) |
(0.2) |
|||||
|
Net cash provided by financing activities |
81.0 |
20.1 |
|||||
|
Net Increase (Decrease) in Cash and Cash Equivalents |
5.4 |
(9.2) |
|||||
|
Cash and Cash Equivalents at Beginning of Period |
5.2 |
13.8 |
|||||
|
Cash and Cash Equivalents at End of Period |
$ |
10.6 |
$ |
4.6 |
|||
|
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas |
Other |
Total |
Per Diluted | |||||||||||||||||
|
Three Months Ended December 31, 2016 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
51.7 |
$ |
(0.8) |
$ |
(5.7) |
$ |
45.2 |
$ |
0.99 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
3.8 |
— |
3.8 |
0.08 |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.1 |
— |
— |
0.1 |
— |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
— |
(1.4) |
— |
(1.4) |
(0.03) |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
51.8 |
$ |
1.4 |
$ |
(5.7) |
$ |
47.5 |
$ |
1.04 |
||||||||||||
|
Diluted EPS (GAAP) |
1.13 |
(0.02) |
(0.12) |
0.99 |
||||||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
1.13 |
0.03 |
(0.12) |
1.04 |
||||||||||||||||||
|
Three Months Ended December 31, 2015 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
49.3 |
$ |
2.3 |
$ |
(4.7) |
$ |
46.9 |
$ |
1.08 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized gain on energy-related derivatives |
(0.1) |
(4.8) |
— |
(4.9) |
(0.11) |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
0.6 |
— |
0.6 |
0.01 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
1.2 |
— |
0.1 |
1.3 |
0.03 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.4) |
1.7 |
— |
1.3 |
0.03 |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
50.0 |
$ |
(0.3) |
$ |
(4.6) |
$ |
45.1 |
$ |
1.04 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
1.14 |
$ |
0.05 |
$ |
(0.11) |
$ |
1.08 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
1.15 |
$ |
— |
$ |
(0.11) |
$ |
1.04 |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
|
(2) Net economic earnings per share is generally calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Operating Margin and Reconciliation to GAAP | ||||||||||||||||||||
|
(In Millions) |
Gas |
Gas |
Other |
Eliminations |
Consolidated | |||||||||||||||
|
Three Months Ended December 31, 2016 |
||||||||||||||||||||
|
Operating revenues |
$ |
476.7 |
$ |
21.7 |
$ |
1.8 |
$ |
(5.1) |
$ |
495.1 |
||||||||||
|
Natural and propane gas expense |
214.5 |
21.5 |
— |
(3.9) |
232.1 |
|||||||||||||||
|
Gross receipts tax expense |
19.0 |
— |
— |
— |
19.0 |
|||||||||||||||
|
Operating margin (non-GAAP) |
243.2 |
0.2 |
1.8 |
(1.2) |
244.0 |
|||||||||||||||
|
Depreciation and amortization |
37.7 |
— |
0.1 |
— |
37.8 |
|||||||||||||||
|
Other operating expenses |
114.9 |
1.5 |
1.9 |
(1.2) |
117.1 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
90.6 |
$ |
(1.3) |
$ |
(0.2) |
$ |
— |
$ |
89.1 |
||||||||||
|
Three Months Ended December 31, 2015 |
||||||||||||||||||||
|
Operating revenues |
$ |
399.5 |
$ |
12.8 |
$ |
0.8 |
$ |
(13.7) |
$ |
399.4 |
||||||||||
|
Natural and propane gas expense |
161.9 |
7.4 |
— |
(13.4) |
155.9 |
|||||||||||||||
|
Gross receipts tax expense |
17.5 |
— |
— |
— |
17.5 |
|||||||||||||||
|
Operating margin (non-GAAP) |
220.1 |
5.4 |
0.8 |
(0.3) |
226.0 |
|||||||||||||||
|
Depreciation and amortization |
33.5 |
— |
0.2 |
— |
33.7 |
|||||||||||||||
|
Other operating expenses |
102.6 |
1.6 |
1.4 |
(0.3) |
105.3 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
84.0 |
$ |
3.8 |
$ |
(0.8) |
$ |
— |
$ |
87.0 |
||||||||||
SOURCE Spire Inc.
Article Date
2/1/20171/26/2017 - Spire Hosts Annual Shareholder Meeting
Spire Hosts Annual Shareholder Meeting
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Jan. 26, 2017 /PRNewswire/ -- Speaking to shareholders at Spire's annual meeting today, Spire Chairman of the Board Ed Glotzbach highlighted that the company is achieving transformative success with a well-articulated growth strategy and a focus on enriching lives and adding value for shareholders and communities.
During the meeting, Glotzbach emphasized how Spire's success is reflected in a number of key metrics. Spire grew net economic earnings per diluted share, representing growth of 7.2 percent compared to 2015 earnings (after normalizing prior year results for the unusually cold weather). This growth keeps Spire poised to achieve the long-term earnings per share growth target of 4 to 6 percent.
"We officially became Spire in April. In changing our name, we further unified our businesses together as one company. The name 'Spire' represents our ongoing efforts to bring people and energy together in ways that enrich lives and add value for our shareholders and communities," Glotzbach said. "To make this vision real, we've increased our scale and expanded our geographic footprint. And, as a result of our success in acquiring and growing gas utilities over the last four years, we've quadrupled our enterprise value, giving us the resources we need to expand in the future."
During the meeting, shareholders elected three members of the board of directors each to serve for a three-year term:
Shareholders also provided advisory approval of compensation of executives named in the proxy statement, advisory approval of one year as the interval at which Spire will seek shareholder advisory approval of compensation of named executive officers, and ratified the appointment of Deloitte & Touche LLP as the independent registered public accountant for the company for the 2017 fiscal year.
Following the shareholders' meeting, the board of directors declared a quarterly common stock dividend of 52.5 cents per share. The dividend is payable on April 4, 2017 to shareholders of record on March 10, 2017. Spire has continuously paid a cash dividend since 1946, with 2017 marking the company's 14th consecutive year of increasing its dividend on an annualized basis.
A video archive of the annual shareholder meeting is available on the company website.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities – Alagasco, Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our non-utility businesses, Spire Marketing Inc. and Spire Natural Gas Fueling Solutions, provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets; and 4) investing in innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
SOURCE Spire Inc.
Article Date
1/26/20171/23/2017 - Spire to Webcast Annual Meeting
Spire to Webcast Annual Meeting
Source: PR Newswire
ST. LOUIS, Jan. 23, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) will webcast its 2017 annual shareholders' meeting on Thursday, January 26, 2017 at 10 a.m. CST. The live webcast will be available and will be archived on our website at www.SpireEnergy.com.
The webcast does not constitute attendance. In order to vote at the annual meeting, shareholders must either authorize a valid proxy or attend the annual meeting and vote in person.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities - Laclede Gas, Missouri Gas Energy, Alagasco, Mobile Gas and Willmut Gas. Our non-utility businesses, Spire Marketing and Spire Natural Gas Fueling Solutions, provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas supply assets, and 4) investing in innovation. Learn more at SpireEnergy.com.
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
SOURCE Spire Inc.
Article Date
1/23/2017Spire to Host Earnings Conference Call on February 1
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Jan. 11, 2017 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, February 1 to discuss our fiscal 2017 first quarter financial results. We will issue our earnings news release before the market opens that day and it will be available on our website at SpireEnergy.com under the News tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, February 1 |
|
|
8 a.m. CT (9 a.m. ET) |
||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
International: |
412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at SpireEnergy.com under the Investors tab.
A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on February 1 until March 1 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10098937. A replay of the webcast will be available on our website at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities - Laclede Gas, Missouri Gas Energy, Alagasco, Mobile Gas and Willmut Gas. Our non-utility businesses, Spire Marketing and Spire Natural Gas Fueling Solutions, provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas supply assets, and 4) investing in innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
SOURCE Spire Inc.
Article Date
1/11/201711/15/2016 - Spire Reports 2016 Results
Spire Reports 2016 Results
Source: PR Newswire
ST. LOUIS, Nov. 15, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported operating results for its fiscal 2016 full year and fourth quarter ended September 30. Highlights include:
"2016 was another banner year for the growth of our company. We became Spire in April to better deliver on our promises to our customers, communities and shareholders," said Suzanne Sitherwood, president and chief executive officer of Spire. "We now stand for both the energy we deliver and what that energy makes possible. We're investing in and growing our gas companies, achieving new levels of infrastructure upgrades and safety performance. We're modernizing our gas assets through our work on our Spire STL Pipeline project. We're expanding the reach of our energy in Alabama and Mississippi with the acquisition of Mobile Gas and Willmut Gas, and we welcome these 103,000 customers and the dedicated employees who serve them to the Spire family. Based on the strength of our 2016 performance and expected growth in 2017, Spire's board of directors raised the quarterly dividend by 7.1 percent to $0.525 per share."
|
Fiscal 2016 Results |
Years ended September 30, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
160.3 |
$ |
150.4 |
$ |
3.67 |
$ |
3.47 | ||||||||||
|
Gas Marketing |
6.4 |
4.2 |
0.15 |
0.10 | ||||||||||||||
|
Other |
(17.6) |
(16.3) |
(0.40) |
(0.38) | ||||||||||||||
|
Total |
$ |
149.1 |
$ |
138.3 |
$ |
3.42 |
$ |
3.19 | ||||||||||
|
Acquisition-related pre-tax costs and increase in shares |
(9.2) |
(9.8) |
(0.27) |
(0.23) | ||||||||||||||
|
Gain on sale of property, pre-tax |
— |
7.6 |
— |
0.18 | ||||||||||||||
|
Fair value adjustments, pre-tax |
1.5 |
— |
0.03 |
— | ||||||||||||||
|
Income tax effect of adjustments |
2.8 |
0.8 |
0.06 |
0.02 | ||||||||||||||
|
Net Income |
$ |
144.2 |
$ |
136.9 |
$ |
3.24 |
$ |
3.16 | ||||||||||
|
Average Shares Outstanding in Millions |
44.3 |
43.3 | ||||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For fiscal 2016, we reported consolidated net income of $144.2 million (or $3.24 per diluted share) compared to $136.9 million (or $3.16 per diluted share) for the prior year. NEE for fiscal 2016 was $149.1 million (or $3.42 per share) up from $138.3 million (or $3.19 per share) a year ago, representing a 7.2 percent increase in earnings per share. NEE excludes from net income the effect of unrealized gains and losses on energy-related derivatives, as well as the impacts of acquisition, divestiture and restructuring activities including expenses, financing impacts and operating results associated with the acquisition of Mobile Gas and Willmut Gas, and the integrations of Alabama Gas Corporation (Alagasco) and Missouri Gas Energy (MGE).
Fiscal 2015 net income included the benefit of a gain on sale of property totaling $7.6 million pre-tax ($4.7 million or $0.11 per share after tax). NEE for 2015 excluded this gain on sale of property.
Gas Utility
The Gas Utility segment includes the regulated gas distribution operations of our five utilities - Laclede Gas and MGE (collectively the Missouri Utilities), Alagasco, and recently acquired Mobile Gas and Willmut Gas (collectively EnergySouth). For fiscal 2016, Gas Utility net income was $159.0 million compared to $153.3 million in the prior year, which included the gain on sale of property noted earlier. Segment NEE for the year was $160.3 million, up from $150.4 million in 2015, reflecting lower operating costs which more than offset higher depreciation expense and higher income taxes.
Segment operating margin (non-GAAP; see "Operating Margin and Reconciliation to GAAP") increased by $2.3 million, including $2.2 million from the addition of EnergySouth. In addition, operating margin reflects $13.8 million higher Infrastructure System Replacement Surcharge (ISRS) revenues at the Missouri Utilities, and $4.5 million in lower regulatory adjustments in Alabama. These positive factors were largely offset by an $18.0 million impact from lower sales volumes due to warmer winter temperatures. Excluding the $7.6 million pre-tax gain in fiscal 2015, other operation and maintenance expenses were lower in fiscal 2016 by $20.7 million, reflecting the warmer weather during the heating season which resulted in lower bad debt expense and lower employee-related costs. Depreciation and amortization rose by $7.0 million reflecting increased capital investment including infrastructure upgrades.
Gas Marketing
The Gas Marketing segment includes the results of Laclede Energy Resources, which provides natural gas marketing services across the country with its core footprint being in the central U.S. Net income for the segment was $7.1 million for fiscal 2016 compared to $4.1 million a year ago. NEE was $6.4 million, up from $4.2 million in the prior year, driven by increased volumes and earnings from storage activities.
Other
Other non-utility operations and corporate costs were $21.9 million for fiscal 2016 and $20.5 million for 2015. The costs consist mainly of interest expense on debt issued to finance the acquisitions of Alagasco and EnergySouth. Interest expense increased due to higher rates on floating-rate debt. On a net economic earnings basis, which excludes the interest on debt issued for the EnergySouth acquisition in 2016, these costs were $17.6 million in fiscal 2016 and $16.3 million in the prior year.
|
Quarterly Results |
Three months ended September 30, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
(10.2) |
$ |
(12.4) |
$ |
(0.23) |
$ |
(0.29) | ||||||||||
|
Gas Marketing |
1.9 |
1.2 |
0.04 |
0.03 | ||||||||||||||
|
Other |
(5.8) |
(4.9) |
(0.13) |
(0.11) | ||||||||||||||
|
Total |
$ |
(14.1) |
$ |
(16.1) |
$ |
(0.32) |
$ |
(0.37) | ||||||||||
|
Acquisition-related pre-tax costs and increase in shares |
(4.1) |
(3.3) |
(0.08) |
(0.08) | ||||||||||||||
|
Fair value adjustments, pre-tax |
4.1 |
(0.9) |
0.09 |
(0.02) | ||||||||||||||
|
Income tax effect of adjustments |
(0.1) |
1.6 |
— |
0.04 | ||||||||||||||
|
Net Income (Loss) |
$ |
(14.2) |
$ |
(18.7) |
$ |
(0.31) |
$ |
(0.43) | ||||||||||
|
Average Shares Outstanding in Millions |
45.7 |
43.3 | ||||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
Our Gas Utility business is seasonal in nature, with earnings concentrated during the winter heating season. As a result, Spire typically reports a loss in the fiscal fourth quarter ended September 30. For the fourth quarter of fiscal 2016, we reported a consolidated net loss of $14.2 million ($0.31 per share) compared to a loss of $18.7 million ($0.43 per share) in the prior year period. On an NEE basis, we reported a loss of $14.1 million ($0.32 per share) compared to a loss of $16.1 million ($0.37 per share) a year ago. The smaller loss reflects improved results in both Gas Utility and Gas Marketing, partially offset by higher costs in Other.
Gas Utility
The Gas Utility segment reported a net loss of $10.6 million for the fourth quarter of fiscal 2016, compared to a loss of $13.2 million for the same period a year ago. The NEE loss for the segment was $10.2 million compared to $12.4 million in the prior year. The decrease in the seasonal loss reflects an increase in operating margin, partially offset by higher expenses. Operating margin increased by $2.2 million on the inclusion of margin from EnergySouth, as higher ISRS revenues for the Missouri Utilities were somewhat offset by higher net regulatory adjustments for Alagasco. Other operation and maintenance expenses of $99.8 million for the quarter were up $0.7 million, reflecting higher outside services costs and higher employee-related expenses, partially offset by lower bad debt expense. Depreciation and amortization expenses increased by $2.2 million from last year reflecting higher capital investment including infrastructure upgrades.
Gas Marketing
Fourth quarter fiscal 2016 net income for the Gas Marketing segment was $4.3 million, up from $0.6 million in the prior-year period, reflecting increased volumes and earnings from storage activities as well as more favorable fair value adjustments. NEE, which excludes the fair value adjustments, increased to $1.9 million from $1.2 million a year ago.
Other
Other non-utility operations and corporate costs were $7.9 million in the fourth quarter of 2016 and $6.1 million in the year-ago period. A significant portion of these costs are related to interest expense on debt issued to finance the acquisitions of Alagasco and EnergySouth, which increased due to higher rates on floating-rate debt. On an NEE basis, which excludes interest on debt for the EnergySouth acquisition, fourth quarter costs were $5.8 million in 2016 and $4.9 million a year ago.
Balance Sheets and Cash Flows
We continue to maintain a strong capital structure with ample liquidity. At September 30, 2016, we had a long-term capitalization of 49.6 percent equity, which fully includes the debt and equity financing for the EnergySouth acquisition discussed below. We had a comparable equity capitalization a year ago. Short-term borrowings outstanding at September 30, 2016 were $398.7 million compared to $338.0 million a year ago. These levels of short-term debt are in line with our typical seasonal borrowing needs. We have significant capacity to meet our anticipated capital needs heading into the winter heating season.
Our balance sheet at September 30, 2016 reflects the acquisition of EnergySouth effective September 12, 2016, including the allocation of the $344 million purchase price to tangible and intangible assets and the assumption of certain liabilities including $67 million of long-term debt. During the fourth quarter, we completed a private placement of $165 million in unsecured senior notes as part of the funding for the EnergySouth acquisition. In May, we completed an equity offering of 2.2 million shares generating gross proceeds of $138 million.
Net cash provided by operating activities was $328.3 million for the year ended September 30, 2016, compared to $322.4 million for fiscal 2015. The increase was primarily driven by smaller increases in working capital, partially offset by a decrease in collections under the purchased gas cost riders in Missouri and Alabama.
Capital expenditures for fiscal 2016 were $293.3 million compared to $289.8 million in the prior year. Our capital program continues to focus on investment in infrastructure upgrades for the Missouri Utilities and Alagasco.
For additional details on Spire's results for the fourth quarter and full year of fiscal 2016, please see the accompanying unaudited Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flow.
Spire STL Pipeline
As described when we first announced the project in February, we are moving forward with the Spire STL Pipeline, an approximately 70-mile supply pipeline that will enhance reliability and the diversity of our physical transport portfolio while providing access to lower-cost shale gas from the Marcellus/Utica producing regions. In July, we secured acceptance of our project into the pre-filing process at the Federal Energy Regulatory Commission (FERC). In August, we completed an open season to solicit commercial interest in capacity on the pipeline, and held open houses with members of affected communities and landowners. Work is underway on environmental assessments, route refinements and other requirements for the filing of our certificate application with FERC in January 2017 seeking approval for the project. Our schedule continues to reflect an expected fiscal 2019 in-service date. The cost of the project is now anticipated to be in the range of $190 - $210 million based upon updated cost estimates.
Laclede Gas expects to be a foundation shipper with a contractual commitment of 350 MMcf/d out of the total capacity of 400 MMcf/d.
Earnings Guidance and Outlook
We expect fiscal 2017 NEE to be in the range of $3.50 - $3.60 per fully diluted share. We re-affirm our annual long-term NEE per share growth target of 4 - 6 percent. Our 2017 earnings guidance assumes:
Our guidance also anticipates the issuance of 2.5 million shares in April 2017 (the beginning of our fiscal third quarter) in conjunction with the conversion of the equity units issued in 2014 as part of the Alagasco acquisition financing. The number of shares issued is based on the 20-day average volume-weighted price of our common stock leading up to the targeted settlement date in April 2017. The number of shares issued will range from 2.5 million to 3.1 million.
Spire capital expenditures for fiscal 2017 are expected to increase from $293 million in 2016 to approximately $410 million, with investment in our gas utilities increasing year-over-year to approximately $370 million. The significant increase in gas utility investment reflects the continued ramp-up of prudent infrastructure upgrades in both Missouri and Alabama, and the addition of capital expenditures for EnergySouth. The remainder of the increase reflects non-utility spend primarily for Spire STL Pipeline. We expect that over 70 percent of our fiscal 2017 utility capital spend will be recovered in rates with minimal lag under regulatory mechanisms in Missouri, Alabama and Mississippi. We anticipate that our capital spending for 2016 to 2020 will increase from $1.8 billion to at least $2.0 billion, driven by higher utility investment and construction of Spire STL Pipeline.
Dividend Increase
As a result of the strong performance in fiscal 2016 and expectations for continued growth, the board of directors of Spire increased the quarterly common stock dividend to $0.525 per share, an increase of 7.1 percent. This raises the annualized rate to $2.10 per share. This follows an increase of 6.5 percent in 2016. Spire has continuously paid a cash dividend since 1946, and 2017 will mark the 14th consecutive year that the annualized dividend has increased.
The dividend is payable January 4, 2017, to shareholders of record on December 12, 2016.
Regulatory Matters
Alabama
Under the rate-setting process in Alabama, Alagasco and Mobile Gas each made their annual RSE filings with the Alabama Public Service Commission (APSC) on October 26, 2016. The RSE filings present each utility's budget for the fiscal year ending September 30, 2017. The filings include net income and a calculation of return on average common equity (ROE) for the year at 10.8 percent (plus a 5 basis-point adder applicable to Alagasco for achieving certain customer satisfaction rankings). Reflected in the filings are the anticipated costs of operations of their respective systems as well as a prudent level of investment to maintain and upgrade their infrastructure over the next year. The filings are currently being reviewed by the APSC, and we anticipate that new rates will be effective December 1, 2016.
Missouri
On September 30, Laclede Gas and MGE each filed a request with the Missouri Public Service Commission (MoPSC) to increase ISRS revenues by $5.0 million and $3.4 million, respectively. If approved by the MoPSC as filed, the additional amounts would bring the annual ISRS run rate for our Missouri Utilities to $43.7 million. ISRS allows for more timely regulatory recovery of prudent investments made by gas utilities to improve the integrity, safety and reliability of their distribution systems while reducing maintenance costs.
Laclede Gas and MGE are anticipating filing concurrent general rate cases with the MoPSC in mid-fiscal 2017 consistent with the MGE stipulation and agreement with the MoPSC. The general rate case process in Missouri can extend up to 11 months, and, under that schedule, a final stipulation and any resulting change in rates would be anticipated in fiscal 2018.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its fiscal 2016 fourth quarter and full year financial results. To access the call, please dial the applicable number approximately 5-10 minutes prior to the start time.
|
Date and Time: |
Tuesday, November 15 |
||
|
8 a.m. CT (9 a.m. ET) |
|||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 412-317-5142 | |
|
International: | |||
The call will also be webcast in a listen-only format for the media and general public. The webcast can be accessed at SpireEnergy.com under the Investors tab. A replay of the call will be available from 10 a.m. CT (11 a.m. ET) on November 15 until December 15 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The replay access code is 10095621. A replay of the webcast will be available at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities - Laclede Gas, Missouri Gas Energy, Alagasco, Mobile Gas and Willmut Gas. Our non-utility businesses, Laclede Energy Resources and Spire Natural Gas Fueling Solutions, provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas assets, and 4) investing in innovation. Learn more at SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-K for the fiscal year ended September 30, 2016, to be filed with the SEC later today.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "operating margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions. These adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. In calculating net economic earnings, management also excludes from net income the after-tax impacts related to acquisition, divestiture, and restructuring activities, including costs related to the acquisition of Mobile Gas and Willmut Gas and the integration of MGE and Alagasco. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Operating margin adjusts operating income to include only those costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share.
|
Consolidated Statements of Income - Unaudited | |||||||||||||||||
|
Three months ended September 30, |
Years ended | ||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||
|
Operating Revenues: |
|||||||||||||||||
|
Gas Utility |
$ |
193.7 |
$ |
203.2 |
$ |
1,457.2 |
$ |
1,891.8 | |||||||||
|
Gas Marketing and other |
85.6 |
1.0 |
80.1 |
84.6 | |||||||||||||
|
Total Operating Revenues |
279.3 |
204.2 |
1,537.3 |
1,976.4 | |||||||||||||
|
Operating Expenses: |
|||||||||||||||||
|
Gas Utility |
|||||||||||||||||
|
Natural and propane gas |
28.5 |
37.6 |
492.2 |
882.4 | |||||||||||||
|
Other operation and maintenance expenses |
99.8 |
99.1 |
377.5 |
390.6 | |||||||||||||
|
Depreciation and amortization |
35.4 |
33.2 |
136.9 |
129.9 | |||||||||||||
|
Taxes, other than income taxes |
25.7 |
22.2 |
125.2 |
142.1 | |||||||||||||
|
Total Gas Utility Operating Expenses |
189.4 |
192.1 |
1,131.8 |
1,545.0 | |||||||||||||
|
Gas Marketing and other |
97.6 |
20.6 |
123.2 |
158.9 | |||||||||||||
|
Total Operating Expenses |
287.0 |
212.7 |
1,255.0 |
1,703.9 | |||||||||||||
|
Operating (Loss) Income |
(7.7) |
(8.5) |
282.3 |
272.5 | |||||||||||||
|
Other Income and (Income Deductions) - Net |
4.8 |
(1.4) |
8.6 |
1.2 | |||||||||||||
|
Interest Charges: |
|||||||||||||||||
|
Interest on long-term debt |
17.4 |
16.6 |
67.6 |
66.6 | |||||||||||||
|
Other interest charges |
2.1 |
1.9 |
9.6 |
8.0 | |||||||||||||
|
Total Interest Charges |
19.5 |
18.5 |
77.2 |
74.6 | |||||||||||||
|
Income (Loss) Before Income Taxes |
(22.4) |
(28.4) |
213.7 |
199.1 | |||||||||||||
|
Income Tax (Benefit) Expense |
(8.2) |
(9.7) |
69.5 |
62.2 | |||||||||||||
|
Net (Loss) Income |
$ |
(14.2) |
$ |
(18.7) |
$ |
144.2 |
$ |
136.9 | |||||||||
|
Weighted Average Number of Common Shares Outstanding: |
|||||||||||||||||
|
Basic |
45.5 |
43.2 |
44.1 |
43.2 | |||||||||||||
|
Diluted |
45.7 |
43.3 |
44.3 |
43.3 | |||||||||||||
|
Basic Earnings (Loss) Per Share of Common Stock |
$ |
(0.31) |
$ |
(0.43) |
$ |
3.26 |
$ |
3.16 | |||||||||
|
Diluted Earnings (Loss) Per Share of Common Stock |
$ |
(0.31) |
$ |
(0.43) |
$ |
3.24 |
$ |
3.16 | |||||||||
|
Dividends Declared Per Share of Common Stock |
$ |
0.49 |
$ |
0.46 |
$ |
1.96 |
$ |
1.84 | |||||||||
|
Condensed Consolidated Balance Sheets - Unaudited | |||||||
|
September 30, |
September 30, | ||||||
|
2016 |
2015 | ||||||
|
ASSETS |
|||||||
|
Utility Plant |
$ |
4,793.6 |
$ |
4,234.5 | |||
|
Less: Accumulated depreciation and amortization |
1,506.4 |
1,307.0 | |||||
|
Net Utility Plant |
3,287.2 |
2,927.5 | |||||
|
Non-utility Property |
13.7 |
13.7 | |||||
|
Goodwill |
1,164.9 |
946.0 | |||||
|
Other Investments |
62.1 |
59.9 | |||||
|
Other Property and Investments |
1,240.7 |
1,019.6 | |||||
|
Current Assets: |
|||||||
|
Cash and cash equivalents |
5.2 |
13.8 | |||||
|
Accounts receivable (net of allowance for doubtful accounts) |
220.7 |
210.6 | |||||
|
Delayed customer billings |
1.6 |
2.6 | |||||
|
Inventories |
202.3 |
215.4 | |||||
|
Other |
139.8 |
87.7 | |||||
|
Total Current Assets |
569.6 |
530.1 | |||||
|
Regulatory Assets and Other Deferred Charges |
979.9 |
813.0 | |||||
|
Total Assets |
$ |
6,077.4 |
$ |
5,290.2 | |||
|
CAPITALIZATION AND LIABILITIES |
|||||||
|
Capitalization: |
|||||||
|
Common stock and paid-in capital |
$ |
1,221.5 |
$ |
1,081.4 | |||
|
Retained earnings |
550.9 |
494.2 | |||||
|
Accumulated other comprehensive loss |
(4.2) |
(2.0) | |||||
|
Total Common Stock Equity |
1,768.2 |
1,573.6 | |||||
|
Long-term debt |
1,833.7 |
1,771.5 | |||||
|
Total Capitalization |
3,601.9 |
3,345.1 | |||||
|
Current Liabilities: |
|||||||
|
Current portion of long-term debt |
250.0 |
80.0 | |||||
|
Notes payable |
398.7 |
338.0 | |||||
|
Accounts payable |
210.9 |
146.5 | |||||
|
Advance customer billings |
70.2 |
44.3 | |||||
|
Accrued liabilities and other |
231.5 |
245.0 | |||||
|
Total Current Liabilities |
1,161.3 |
853.8 | |||||
|
Deferred Credits and Other Liabilities: |
|||||||
|
Deferred income taxes |
607.3 |
482.1 | |||||
|
Pension and postretirement benefit costs |
303.7 |
253.4 | |||||
|
Asset retirement obligations |
206.4 |
159.2 | |||||
|
Regulatory liabilities |
130.7 |
119.3 | |||||
|
Other |
66.1 |
77.3 | |||||
|
Total Deferred Credits and Other Liabilities |
1,314.2 |
1,091.3 | |||||
|
Total Capitalization and Liabilities |
$ |
6,077.4 |
$ |
5,290.2 | |||
|
Condensed Consolidated Statements of Cash Flow - Unaudited | |||||||
|
Years ended September 30, | |||||||
|
2016 |
2015 | ||||||
|
Operating Activities: |
|||||||
|
Net Income |
$ |
144.2 |
$ |
136.9 | |||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
|
Depreciation, amortization, and accretion |
137.5 |
130.8 | |||||
|
Deferred income taxes and investment tax credits |
68.8 |
65.5 | |||||
|
Changes in assets and liabilities |
(27.1) |
(17.2) | |||||
|
Other |
4.9 |
6.4 | |||||
|
Net cash provided by operating activities |
328.3 |
322.4 | |||||
|
Investing Activities: |
|||||||
|
Capital expenditures |
(293.3) |
(289.8) | |||||
|
Acquisition of EnergySouth |
(317.7) |
— | |||||
|
Final payment for acquisition of Alagasco |
— |
(8.2) | |||||
|
Other |
(1.7) |
(0.7) | |||||
|
Net cash used in investing activities |
(612.7) |
(298.7) | |||||
|
Financing Activities: |
|||||||
|
Repayment of long-term debt |
(80.0) |
(34.8) | |||||
|
Issuance of long-term debt |
245.0 |
35.0 | |||||
|
Issuance of short-term debt - net |
60.7 |
50.8 | |||||
|
Issuance of common stock |
137.1 |
3.1 | |||||
|
Dividends paid |
(85.2) |
(79.0) | |||||
|
Other |
(1.8) |
(1.1) | |||||
|
Net cash provided by (used in) financing activities |
275.8 |
(26.0) | |||||
|
Net Decrease in Cash and Cash Equivalents |
(8.6) |
(2.3) | |||||
|
Cash and Cash Equivalents at Beginning of Period |
13.8 |
16.1 | |||||
|
Cash and Cash Equivalents at End of Period |
$ |
5.2 |
$ |
13.8 | |||
|
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas Marketing |
Other |
Total |
Per Diluted Share(2) | |||||||||||||||||
|
Three Months Ended September 30, 2016 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
(10.6) |
$ |
4.3 |
$ |
(7.9) |
$ |
(14.2) |
$ |
(0.31) | ||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized gain on energy-related derivatives |
(0.2) |
(2.8) |
— |
(3.0) |
(0.06) | |||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
(0.4) |
— |
(0.4) |
(0.01) | |||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.7) |
— |
(0.7) |
(0.02) | |||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.7 |
— |
3.4 |
4.1 |
0.09 | |||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.1) |
1.5 |
(1.3) |
0.1 |
— | |||||||||||||||||
|
Weighted average shares adjustment |
— |
— |
— |
— |
(0.01) | |||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
(10.2) |
$ |
1.9 |
$ |
(5.8) |
$ |
(14.1) |
$ |
(0.32) | ||||||||||||
|
Diluted EPS (GAAP) |
(0.23) |
0.09 |
(0.17) |
(0.31) |
||||||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
(0.23) |
0.04 |
(0.13) |
(0.32) |
||||||||||||||||||
|
Three Months Ended September 30, 2015 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
(13.2) |
$ |
0.6 |
$ |
(6.1) |
$ |
(18.7) |
$ |
(0.43) | ||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
0.7 |
— |
0.7 |
0.02 | |||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
0.4 |
— |
0.4 |
0.01 | |||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.2) |
— |
(0.2) |
(0.01) | |||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
1.4 |
— |
1.9 |
3.3 |
0.08 | |||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.6) |
(0.3) |
(0.7) |
(1.6) |
(0.04) | |||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
(12.4) |
$ |
1.2 |
$ |
(4.9) |
$ |
(16.1) |
$ |
(0.37) | ||||||||||||
|
Diluted EPS (GAAP) |
$ |
(0.30) |
$ |
0.01 |
$ |
(0.14) |
$ |
(0.43) |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
(0.29) |
$ |
0.03 |
$ |
(0.11) |
$ |
(0.37) |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
|
(2) Net economic earnings per share is generally calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. Fiscal 2016 net economic earnings per share excludes the impact of the May 2016 equity issuance to fund a portion of the acquisition of EnergySouth. The weighted average diluted shares used in the net economic earnings per share calculation for the quarter ended September 30, 2016 was 43.5 compared to 45.7 in the GAAP diluted EPS calculation. |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas Marketing |
Other |
Total |
Per Diluted Share(2) | |||||||||||||||||||||
|
Year Ended September 30, 2016 |
||||||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
159.0 |
$ |
7.1 |
$ |
(21.9) |
$ |
144.2 |
$ |
3.24 | ||||||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||||||
|
Unrealized (gain) loss on energy-related derivatives |
(0.3) |
0.2 |
— |
(0.1) |
— | |||||||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
0.2 |
— |
0.2 |
0.01 | |||||||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(1.6) |
— |
(1.6) |
(0.04) | |||||||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
2.3 |
— |
6.9 |
9.2 |
0.21 | |||||||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.7) |
0.5 |
(2.6) |
(2.8) |
(0.06) | |||||||||||||||||||||
|
Weighted average shares adjustment |
— |
— |
— |
— |
0.06 | |||||||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
160.3 |
$ |
6.4 |
$ |
(17.6) |
$ |
149.1 |
$ |
3.42 | ||||||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.57 |
$ |
0.16 |
$ |
(0.49) |
$ |
3.24 |
||||||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.67 |
$ |
0.15 |
$ |
(0.40) |
$ |
3.42 |
||||||||||||||||||
|
Year Ended September 30, 2015 |
||||||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
153.3 |
$ |
4.1 |
$ |
(20.5) |
$ |
136.9 |
$ |
3.16 | ||||||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||||||
|
Unrealized gain on energy-related derivatives |
(0.1) |
(2.7) |
— |
(2.8) |
(0.07) | |||||||||||||||||||||
|
Lower of cost or market inventory adjustments (1) |
— |
0.4 |
— |
0.4 |
0.01 | |||||||||||||||||||||
|
Realized loss on economic hedges prior to the sale of the physical commodity |
— |
2.4 |
— |
2.4 |
0.06 | |||||||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
3.1 |
— |
6.7 |
9.8 |
0.23 | |||||||||||||||||||||
|
Gain on sale of property |
(7.6) |
— |
— |
(7.6) |
(0.18) | |||||||||||||||||||||
|
Income tax effect of adjustments (1) |
1.7 |
— |
(2.5) |
(0.8) |
(0.02) | |||||||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
150.4 |
$ |
4.2 |
$ |
(16.3) |
$ |
138.3 |
$ |
3.19 | ||||||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.53 |
$ |
0.10 |
$ |
(0.47) |
$ |
3.16 |
||||||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.47 |
$ |
0.10 |
$ |
(0.38) |
$ |
3.19 |
||||||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
|
(2) Net economic earnings per share is generally calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. Fiscal 2016 net economic earnings per share excludes the impact of the May 2016 equity issuance to fund a portion of the acquisition of EnergySouth. The weighted average diluted shares used in the net economic earnings per share calculation for fiscal 2016 was 43.5 compared to 44.3 in the GAAP diluted EPS calculation. |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Operating Margin and Reconciliation to GAAP | ||||||||||||||||||||
|
(In Millions) |
Gas |
Gas |
Other |
Eliminations |
Consolidated | |||||||||||||||
|
Three Months Ended September 30, 2016 |
||||||||||||||||||||
|
Operating revenues |
$ |
193.9 |
$ |
55.4 |
$ |
2.2 |
$ |
27.8 |
$ |
279.3 | ||||||||||
|
Natural and propane gas expense |
43.7 |
46.8 |
0.2 |
29.3 |
120.0 | |||||||||||||||
|
Gross receipts tax expense |
10.3 |
— |
— |
— |
10.3 | |||||||||||||||
|
Operating margin (non-GAAP) |
139.9 |
8.6 |
2.0 |
(1.5) |
149.0 | |||||||||||||||
|
Depreciation and amortization |
35.4 |
— |
0.1 |
— |
35.5 | |||||||||||||||
|
Other operating expenses |
116.3 |
1.5 |
4.9 |
(1.5) |
121.2 | |||||||||||||||
|
Operating (loss) income (GAAP) |
$ |
(11.8) |
$ |
7.1 |
$ |
(3.0) |
$ |
— |
$ |
(7.7) | ||||||||||
|
Three Months Ended September 30, 2015 |
||||||||||||||||||||
|
Operating revenues |
$ |
203.2 |
$ |
18.2 |
$ |
0.9 |
$ |
(18.1) |
$ |
204.2 | ||||||||||
|
Natural and propane gas expense |
55.5 |
15.7 |
— |
(17.9) |
53.3 | |||||||||||||||
|
Gross receipts tax expense |
10.0 |
— |
— |
— |
10.0 | |||||||||||||||
|
Operating margin (non-GAAP) |
137.7 |
2.5 |
0.9 |
(0.2) |
140.9 | |||||||||||||||
|
Depreciation and amortization |
33.2 |
— |
0.2 |
— |
33.4 | |||||||||||||||
|
Other operating expenses |
111.5 |
1.4 |
3.3 |
(0.2) |
116.0 | |||||||||||||||
|
Operating (loss) income (GAAP) |
$ |
(7.0) |
$ |
1.1 |
$ |
(2.6) |
$ |
— |
$ |
(8.5) | ||||||||||
|
Year Ended September 30, 2016 |
||||||||||||||||||||
|
Operating revenues |
$ |
1,459.4 |
$ |
78.5 |
$ |
4.8 |
$ |
(5.4) |
$ |
1,537.3 | ||||||||||
|
Natural and propane gas expense |
539.7 |
60.7 |
0.2 |
(3.0) |
597.6 | |||||||||||||||
|
Gross receipts tax expense |
75.3 |
0.1 |
— |
— |
75.4 | |||||||||||||||
|
Operating margin (non-GAAP) |
844.4 |
17.7 |
4.6 |
(2.4) |
864.3 | |||||||||||||||
|
Depreciation and amortization |
136.9 |
0.1 |
0.5 |
— |
137.5 | |||||||||||||||
|
Other operating expenses |
429.2 |
5.8 |
11.9 |
(2.4) |
444.5 | |||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
278.3 |
$ |
11.8 |
$ |
(7.8) |
$ |
— |
$ |
282.3 | ||||||||||
|
Year Ended September 30, 2015 |
||||||||||||||||||||
|
Operating revenues |
$ |
1,895.8 |
$ |
153.4 |
$ |
3.7 |
$ |
(76.5) |
$ |
1,976.4 | ||||||||||
|
Natural and propane gas expense |
957.6 |
140.5 |
0.3 |
(75.5) |
1,022.9 | |||||||||||||||
|
Gross receipts tax expense |
96.1 |
0.2 |
— |
— |
96.3 | |||||||||||||||
|
Operating margin (non-GAAP) |
842.1 |
12.7 |
3.4 |
(1.0) |
857.2 | |||||||||||||||
|
Depreciation and amortization |
129.9 |
0.3 |
0.6 |
— |
130.8 | |||||||||||||||
|
Other operating expenses |
437.6 |
5.6 |
11.7 |
(1.0) |
453.9 | |||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
274.6 |
$ |
6.8 |
$ |
(8.9) |
$ |
— |
$ |
272.5 | ||||||||||
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SprireEnergy.com
SOURCE Spire Inc.
Article Date
11/15/201611/9/2016 - Increased Wholesale Natural Gas Prices Lead to Rate Adjustment for Laclede Gas Customers
Increased Wholesale Natural Gas Prices Lead to Rate Adjustment for Laclede Gas Customers
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Nov. 9, 2016 /PRNewswire/ -- Wholesale natural gas prices have increased during the past year and this will necessitate a natural gas price adjustment for Laclede Gas customers. Approved by the Missouri Public Service Commission today, Laclede Gas customers would pay an average of $0.48 per therm* for the cost of gas. The change reflects an increase in the prices charged by Laclede's wholesale natural gas and pipeline transportation suppliers during the past year. Compared to last winter's rates, this would mean an increase of about $4.17 per month, or six percent of the overall bill for a typical residential customer. Weather and other factors that affect customer usage may also impact the customer's bill.
"Natural gas remains the most cost-effective heating source for homes. We work hard to manage all of our natural gas supply resources in the most efficient manner possible and pass savings directly on to customers. In fact, this time last year, we were able to lower the rate for customers because we were paying lower prices," said Steve Lindsey, president of Laclede Gas.
For customers looking to pay the same amount on their gas bill each month, Laclede Gas offers budget billing to all customers. The free service provides customers with consistent bill amounts throughout the year. Customers can enroll today and the payment plan will start on their next billing cycle. To sign up, call 314-621-6960 or toll-free 800-887-4173.
This rate appears on bills as "Cost of Gas" and accounts for more than half of a typical residential customer bill. The remaining portion includes pipeline maintenance and upgrade costs, as well as state and local taxes that MGE incurs to deliver that gas safely and reliably to homes and businesses.
*A therm is a unit of heat equal to burning 100 cubic feet of natural gas.
ABOUT LACLEDE GAS COMPANY
Laclede Gas Company has provided safe and reliable natural gas service to Missouri for more than 150 years. Now including customers from Missouri Gas Energy, we are the largest gas distribution company in Missouri, delivering some of the nation's cleanest energy to more than 1.1 million customers. Laclede serves residential, commercial and industrial customers in the St. Louis and Kansas City metropolitan areas and 40 counties throughout Missouri. Laclede Gas Company is a subsidiary of Spire, traded on the New York Stock Exchange under the symbol SR. For more information, please visit www.LacledeGas.com.
SOURCE Laclede Gas Company
Article Date
11/9/2016Increased Wholesale Natural Gas Prices Lead to Rate Adjustment for MGE Customers
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
KANSAS CITY, Mo., Nov. 9, 2016 /PRNewswire/ -- Wholesale natural gas prices have increased during the past year and this will necessitate a natural gas price adjustment for Missouri Gas Energy (MGE) customers. Approved by the Missouri Public Service Commission today, MGE customers would pay an average of $0.49 per Ccf* for the cost of gas. The change reflects an increase in the prices charged by MGE's wholesale natural gas and pipeline transportation suppliers during the past year. Compared to last winter's rates, this would mean an increase of about $2.24 per month, or 3.7 percent of the overall bill for a typical residential customer. Weather and other factors that affect customer usage may also impact the customer's bill.
"Natural gas remains the most cost-effective heating source for homes. We work hard to manage all of our natural gas supply resources in the most efficient manner possible and pass savings directly on to customers. In fact, this time last year, we were able to lower the rate for customers because we were paying lower prices," said Steve Lindsey, president of MGE.
For customers looking to pay the same amount on their gas bill each month, MGE offers budget billing to all customers. The free service provides customers with consistent bill amounts throughout the year. Customers can enroll today and the payment plan will start on their next billing cycle. To sign up, call 816-756-5252 or toll-free 800-582-1234.
This rate appears on bills as "Cost of Gas" and accounts for more than half of a typical residential customer bill. The remaining portion includes pipeline maintenance and upgrade costs, as well as state and local taxes that MGE incurs to deliver that gas safely and reliably to homes and businesses.
*Ccf is the volume of 100 cubic feet of natural gas.
ABOUT MISSOURI GAS ENERGY
Missouri Gas Energy has provided natural gas service to the residents of the Kansas City metropolitan area and western Missouri for nearly 150 years. Now owned by Laclede Gas Company, a subsidiary of Spire (NYSE:SR), we are part of the largest gas distribution company in Missouri, delivering natural gas to more than 1.1 million customers. Missouri Gas Energy serves residential, commercial and industrial customers in 30 counties. For more information, please visit www.MissouriGasEnergy.com.
Media Contact: Jenny Gobble
855-852-1500 toll-free
Jenny.Gobble@SpireEnergy.com
SOURCE Missouri Gas Energy
Article Date
11/9/201611/7/2016 - Cold Weather Season Starts Now
Cold Weather Season Starts Now
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
KANSAS CITY, Mo., Nov. 7, 2016 /PRNewswire/ -- Temperatures are starting to dip and furnaces are starting to run. Starting each November, Missouri Gas Energy offers unique programs to help customers stay warm and use natural gas more efficiently. During the first week of the Cold Weather Rule, more than 500 Missouri Gas Energy customers have signed up for special payment programs.
If any customer is struggling to stay warm, please call Missouri Gas Energy directly to find out what options are available.
Some quick and easy tips to use natural gas more efficiently:
ABOUT MISSOURI GAS ENERGY
Missouri Gas Energy has provided natural gas service to the residents of the Kansas City metropolitan area and western Missouri for nearly 150 years. Now owned by Laclede Gas Company, a subsidiary of Spire Inc. (NYSE: SR), we are part of the largest gas distribution company in Missouri, delivering natural gas to more than 1.13 million customers. Missouri Gas Energy serves residential, commercial and industrial customers in 30 counties. For more information, please visit www.MissouriGasEnergy.com.
Media Contact: Jenny Gobble
314-342-3300
Jenny.Gobble@SpireEnergy.com
SOURCE Missouri Gas Energy
Article Date
11/7/2016Spire to Host Earnings Conference Call on November 15
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Oct. 26, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Tuesday, November 15 to discuss our fiscal 2016 fourth quarter and full year financial results as well as earnings guidance for fiscal 2017. We will issue our earnings news release before the market opens that day and it will be available on our website at SpireEnergy.com under the News tab.
To access the call, please dial the applicable phone number 5-10 minutes prior to the start time.
|
Date and Time: |
Tuesday, November 15 |
|
|
8 a.m. CT (9 a.m. ET) |
||
|
Phone Numbers: |
U.S. and Canada: |
844-824-3832 |
|
International: |
412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at SpireEnergy.com under the Investors tab.
A replay of the call will be available beginning at 10 a.m. CT (11 a.m. ET) on November 15 continuing until December 16, by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international). The replay access code is 10095621. A replay of the webcast will be available on our website at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our gas utilities - Laclede Gas, Missouri Gas Energy, Alagasco, Mobile Gas and Willmut Gas. Our non-utility businesses, Laclede Energy Resources and Spire Natural Gas Fueling Solutions, provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets; and 4) investing in innovation. Learn more at SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
SOURCE Spire Inc.
Article Date
10/26/2016Sempra U.S. Gas & Power Closes Sale of Parent Company of Mobile Gas and Willmut Gas
Source: PR Newswire
SAN DIEGO, Sept. 12, 2016 /PRNewswire/ -- Sempra U.S. Gas & Power, a unit of Sempra Energy (NYSE: SRE), today announced that it has completed the previously announced transaction to sell EnergySouth, Inc. (EnergySouth), the parent company of Mobile Gas Service Corp. (Mobile Gas) and Willmut Gas & Oil Company (Willmut Gas), to Spire Inc. (Spire) (NYSE:SR) for cash proceeds of $320 million, with Spire assuming existing debt of $67 million.
The transaction included only Mobile Gas and Willmut Gas. Sempra U.S. Gas & Power continues to own Bay Gas Storage Co., Mississippi Hub, LLC, Liberty Gas Storage and Southern Gas Transmission, all of which previously were part of EnergySouth.
J.P. Morgan Securities LLC acted as financial advisor and Latham & Watkins LLP acted as legal counsel for Sempra U.S. Gas & Power.
Sempra U.S. Gas & Power acquired EnergySouth in 2008 and Willmut Gas in 2012.
Mobile Gas provides service to about 85,000 residential, commercial and industrial customers in Mobile and Baldwin counties in southwest Alabama.
Willmut Gas provides service to about 19,000 residential, commercial and industrial customers in greater Hattiesburg, Miss. (which includes portions of Forrest and Lamar Counties) as well as portions of Covington, Jones, Simpson and Rankin Counties.
Sempra U.S. Gas & Power, LLC is a leading developer of renewable energy and natural gas projects. For more information, visit www.SempraUSGP.com. Sempra U.S. Gas & Power is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company with 2015 revenues of $10 billion. The Sempra Energy companies' 17,000 employees serve more than 32 million consumers worldwide.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "contemplates," "intends," "assumes," "depends," "should," "could," "would," "will," "confident," "may," "potential," "possible," "proposed," "target," "pursue," "goals," "outlook," "maintain," or similar expressions or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements.
Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative, legal and regulatory conditions, decisions and developments; actions and the timing of actions, including general rate case decisions, new regulations, issuances of permits to construct, operate and maintain facilities and equipment and to use land, franchise agreements and licenses for operation, by the California Public Utilities Commission, California State Legislature, U.S. Department of Energy, California Division of Oil, Gas, and Geothermal Resources, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, California Energy Commission, U.S. Environmental Protection Agency, Pipeline and Hazardous Materials Safety Administration, California Air Resources Board, South Coast Air Quality Management District, Los Angeles County Department of Public Health, Mexican Competition Commission, states, cities and counties, and other regulatory and governmental bodies in the countries in which we operate; the timing and success of business development efforts and construction, maintenance and capital projects, including risks in obtaining, maintaining or extending permits, licenses, certificates and other authorizations on a timely basis, risks in obtaining the consent of our partners, and risks in obtaining adequate and competitive financing for such projects; the resolution of civil and criminal litigation and regulatory investigations; deviations from regulatory precedent or practice that result in a reallocation of benefits or burdens among shareholders and ratepayers, and delays in, or disallowance or denial of, regulatory agency authorization to recover costs in rates from customers; the availability of electric power, natural gas and liquefied natural gas, and natural gas pipeline and storage capacity, including disruptions caused by failures in the North American transmission grid, moratoriums on the ability to withdraw natural gas from or inject natural gas into storage facilities, pipeline explosions and equipment failures; energy markets; the timing and extent of changes and volatility in commodity prices; the impact on the value of our natural gas storage and related assets and our investments from low natural gas prices, low volatility of natural gas prices and the inability to procure favorable long-term contracts for natural gas storage services; risks posed by decisions and actions of third parties who control the operations of investments in which we do not have a controlling interest, and risks that our partners or counterparties will be unable (due to liquidity issues, bankruptcy or otherwise) or unwilling to fulfill their contractual commitments; weather conditions, natural disasters, catastrophic accidents, equipment failures, terrorist attacks and other events that may disrupt our operations, damage our facilities and systems, cause the release of greenhouse gasses, radioactive materials and harmful emissions, and subject us to third-party liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits) or may be disputed by insurers; cybersecurity threats to the energy grid, natural gas storage and pipeline infrastructure, the information and systems used to operate our businesses and the confidentiality of our proprietary information and the personal information of our customers and employees; failure to obtain regulatory approval for projects required to enhance safety and reliability; the ability to win competitively bid infrastructure projects against a number of strong competitors willing to aggressively bid for these projects; capital markets conditions, including the availability of credit and liquidity of our investments, and inflation, interest and currency exchange rates; disallowance of regulatory assets associated with, or decommissioning costs of, the San Onofre Nuclear Generating Station facility due to increased regulatory oversight, including motions to modify settlements; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of San Diego Gas & Electric Company's (SDG&E) electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources and increased reliance on natural gas and natural gas transmission systems; the impact on competitive customer rates of the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through SDG&E's electric transmission and distribution system; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements due to insufficient market interest, unattractive pricing or other factors; and other uncertainties, all of which are difficult to predict and many of which are beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.
Sempra International, LLC, Sempra U.S. Gas & Power, LLC, and Sempra Partners, LP, are not the same companies as the California utilities, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra International, LLC, Sempra U.S. Gas & Power, LLC, and Sempra Partners, LP, are not regulated by the California Public Utilities Commission. Sempra International's underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power's underlying entities include Sempra Renewables and Sempra Natural Gas.
|
Media Contacts: |
Jill Howard |
|
Sempra U.S. Gas & Power | |
|
(877) 855-7887 | |
|
Financial Contact: |
Patrick Billings |
|
Sempra Energy | |
|
(877) 696-2461 | |
Logo - http://photos.prnewswire.com/prnh/20120103/LA29138LOGO
SOURCE Sempra U.S. Gas & Power
Article Date
9/12/20169/12/2016 - Spire Acquires Mobile Gas and Willmut Gas
Spire Acquires Mobile Gas and Willmut Gas
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Sept. 12, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) ("Spire") today completed its acquisition of EnergySouth, Inc., the parent company of Mobile Gas and Willmut Gas, from Sempra U.S. Gas & Power ("Sempra"). The purchase consideration of $344 million included the assumption of $67 million of debt. The acquisition was funded primarily with the proceeds of an equity offering in May 2016 and a $165 million private placement of unsecured senior notes that closed on September 9.
"At Spire, we believe in a world where energy enriches people's lives, and our mission is to make that idea a reality. Person by person. Neighborhood by neighborhood. Community by community. So, we're excited to start serving the customers of Mobile Gas and Willmut Gas, and getting to know the people – employees, homeowners, business owners, families and neighbors," said Suzanne Sitherwood, president and CEO of Spire.
With the addition of 85,000 natural gas customers of Mobile Gas in Alabama and 19,000 Willmut Gas customers in Mississippi, Spire will now serve more than 1.7 million customers in Missouri, Alabama and Mississippi.
The acquisition of Mobile Gas and Willmut Gas further delivers on our strategic focus to grow our gas utility business and create long-term shareholder value. This transaction also builds on our proven process and success in integrating, financing and operating our companies. The expansion of our southern footprint builds upon our operations and working relationships in Alabama. Willmut Gas expands our reach into Mississippi and provides further regulatory diversity while adding another highly rated regulatory environment. We expect the acquisition to be neutral to net economic earnings per share in 2017 and accretive in 2018, and to support our long-term annual earnings per share growth target of four percent to six percent.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities - Laclede Gas, Missouri Gas Energy, Alagasco, Mobile Gas and Willmut Gas. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas supply assets, and 4) investing in innovation. Learn more at www.SpireEnergy.com.
SOURCE Spire Inc.
Article Date
9/12/20168/3/2016 - Spire Reports Third Quarter Results
Spire Reports Third Quarter Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, Aug. 3, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) ("Company" or "Spire") today reported operating results for its fiscal 2016 third quarter and nine months ended June 30, 2016. Highlights include:
"Spire posted another solid operating and financial performance in our third quarter as we continued to execute on our growth strategies while delivering on our promises to our customers, communities and shareholders," said Suzanne Sitherwood, president and chief executive officer of Spire. "We have been growing our gas utility business and modernizing our gas assets. I am pleased to note that our initiatives are proceeding according to plans. Our pending acquisition of Mobile Gas and Willmut Gas is on schedule, and we have launched the open season for Spire STL Pipeline, which will bring economical Marcellus/Utica shale gas to our eastern Missouri service area."
|
Third Quarter Results |
Three months ended June 30, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
18.0 |
$ |
16.5 |
$ |
0.41 |
$ |
0.38 |
||||||||||
|
Gas Marketing |
1.8 |
0.5 |
0.04 |
0.01 |
||||||||||||||
|
Other |
(5.2) |
(5.9) |
(0.12) |
(0.14) |
||||||||||||||
|
Total |
$ |
14.6 |
$ |
11.1 |
$ |
0.33 |
$ |
0.25 |
||||||||||
|
Acquisition-related impacts, pre-tax: |
||||||||||||||||||
|
Costs |
(1.8) |
(3.5) |
(0.04) |
(0.08) |
||||||||||||||
|
Increase in shares |
— |
— |
(0.01) |
— |
||||||||||||||
|
Gain on sale of property, pre-tax |
— |
7.6 |
— |
0.17 |
||||||||||||||
|
Fair value adjustments, pre-tax |
(4.5) |
0.8 |
(0.10) |
0.02 |
||||||||||||||
|
Income tax effect of adjustments |
2.4 |
(1.9) |
0.06 |
(0.04) |
||||||||||||||
|
Net Income (GAAP) |
$ |
10.7 |
$ |
14.1 |
$ |
0.24 |
$ |
0.32 |
||||||||||
|
Average Shares Outstanding (Millions) |
44.6 |
43.3 |
||||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For the three months ended June 30, 2016, the third quarter of our fiscal year, we reported consolidated net income of $10.7 million (or $0.24 per diluted share) compared to $14.1 million (or $0.32 per diluted share) for the prior year. The prior year period includes a pre-tax gain on sale of property totaling $7.6 million, or $4.7 million ($0.11 per share) after tax. Net economic earnings (NEE) for the third quarter were $14.6 million (or $0.33 per share), up from $11.1 million (or $0.25 per share) a year ago. NEE excludes from net income the effect of unrealized gains and losses on energy-related derivatives, as well as the impacts of acquisition, divestiture and restructuring activities which consist largely of expenses associated with the pending acquisition of Mobile Gas and Willmut Gas and the integrations of Alabama Gas Corporation (Alagasco) and Missouri Gas Energy (MGE). NEE also excludes the gain on sale of property in 2015.
Gas Utility
The Gas Utility segment includes the regulated gas distribution operations of our three utilities - Laclede Gas and MGE (collectively the Missouri Utilities) and Alagasco. For the third quarter ended June 30, 2016, Gas Utility net income was $17.9 million compared to $20.7 million in the prior year, which included the gain on sale of property noted earlier. Segment NEE for the third quarter was $18.0 million, up from $16.5 million a year earlier, reflecting lower operating costs including bad debt expense. These lower expenses more than offset higher depreciation expense and higher income taxes.
Segment operating margin (non-GAAP; see "Operating Margin and Reconciliation to GAAP") increased by $4.0 million, reflecting $3.3 million higher Infrastructure System Replacement Surcharge (ISRS) revenues at the Missouri Utilities and a $2.8 million lower year-over-year Rate Stabilization and Equalization (RSE) giveback at Alagasco. These margin benefits were partially offset by other variations including the timing of gas cost recoveries. Excluding the $7.6 million pre-tax gain in fiscal 2015, other operation and maintenance expenses were lower in fiscal 2016 due to lower bad debt expense (reflecting the impact of warmer weather experienced during the heating season) and employee related costs. Depreciation and amortization increased by $1.7 million reflecting increased capital investment including infrastructure upgrades.
Gas Marketing
The Gas Marketing segment includes the results of Laclede Energy Resources, which provides natural gas marketing services to the Midwest region. Primarily as a result of fair value adjustments, quarterly net loss for the segment was $1.0 million compared to net income of $1.0 million a year ago. Quarterly net economic earnings were $1.8 million, up from $0.5 million in the prior year, reflecting higher overall volumes and earnings from storage activities, partially offset by narrowing spread reflective of the current market.
Other
The non-utility operations and corporate costs were $6.2 million for the third quarter of fiscal 2016 compared to $7.6 million in the prior year period. On a net economic earnings basis, these costs were $5.2 million in the third quarter of fiscal 2016, compared to $5.9 million a year ago. Most of the costs in both periods relate to interest expense on debt issued to finance the Alagasco acquisition.
|
Nine Months Results |
Nine months ended June 30, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
170.5 |
$ |
162.8 |
$ |
3.91 |
$ |
3.75 |
||||||||||
|
Gas Marketing |
4.5 |
3.0 |
0.10 |
0.07 |
||||||||||||||
|
Other |
(11.8) |
(11.4) |
(0.27) |
(0.26) |
||||||||||||||
|
Total |
$ |
163.2 |
$ |
154.4 |
$ |
3.74 |
$ |
3.56 |
||||||||||
|
Acquisition-related impacts, pre-tax: |
||||||||||||||||||
|
Costs |
(5.1) |
(6.5) |
(0.12) |
(0.15) |
||||||||||||||
|
Increase in shares |
— |
— |
(0.03) |
— |
||||||||||||||
|
Gain on sale of property, pre-tax |
— |
7.6 |
— |
0.17 |
||||||||||||||
|
Fair value adjustments, pre-tax |
(2.6) |
0.9 |
(0.06) |
0.03 |
||||||||||||||
|
Income tax effect of adjustments |
2.9 |
(0.8) |
0.07 |
(0.02) |
||||||||||||||
|
Net Income (GAAP) |
$ |
158.4 |
$ |
155.6 |
$ |
3.60 |
$ |
3.59 |
||||||||||
|
Average Shares Outstanding (Millions) |
43.8 |
43.2 |
||||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For the first nine months of fiscal 2016, we reported consolidated net income of $158.4 million ($3.60 per diluted share), up from $155.6 million ($3.59 per share) a year ago. The prior year period includes the gain on sale of property of $4.7 million after tax, or $0.11 per share. NEE was $163.2 million ($3.74 per share), up from $154.4 million ($3.56 per share) in 2015.
Gas Utility
For the first nine months of fiscal 2016, the Gas Utility segment reported net income of $169.6 million, up from $166.5 million for the same period in 2015, which included the gain on sale of property. Segment NEE increased to $170.5 million from $162.8 million a year ago. The warm winter adversely impacted operating margins and benefited certain other operating costs. Year-to-date operating margins were essentially flat - up $0.1 million - reflecting a $28.9 million impact from lower overall system demand, offset by $9.8 million higher ISRS revenue in Missouri, $9.7 million lower RSE givebacks in Alabama and $9.5 million in other variations including timing of gas cost recoveries. Excluding the gain on sale of property in fiscal 2015, other operation and maintenance expenses in fiscal 2016 were lower by $21.4 million reflecting the beneficial impact of warmer weather including lower bad debt expense in the current year. Depreciation and amortization expenses increased by $4.8 million reflecting incremental capital investments.
Gas Marketing
For the nine months ended June 30, 2016, Gas Marketing net income decreased to $2.8 million from $3.5 million a year ago. The decrease in net income reflects less favorable mark-to-market activity in the current period. Segment NEE was $4.5 million, up from $3.0 million in the prior period, driven by increased volumes and earnings from storage activities, partially offset by a decrease in net spread.
Other
The non-utility operations and corporate costs were $14.0 million in the first nine months of fiscal 2016, compared to $14.4 million in the year-ago period. On a net economic earnings basis, the costs were $11.8 million compared to $11.4 million a year ago. A significant portion of these costs are related to interest expense on debt issued to finance the Alagasco acquisition.
Acquisition of Mobile Gas and Willmut Gas
On April 26, Spire announced its intent to acquire EnergySouth, Inc., from Sempra U.S. Gas & Power, a unit of Sempra Energy. EnergySouth is the parent company of Mobile Gas, with 85,000 gas utility customers in Alabama, and Willmut Gas, with 19,000 customers in Mississippi.
Completing the acquisition is subject to customary closing conditions including regulatory approval by the Mississippi Public Service Commission (MSPSC). We expect to close shortly after all conditions have been met, including MSPSC approval. The addition of Mobile Gas and Willmut Gas is expected to be neutral to net economic earnings per share in fiscal 2017 and accretive in fiscal 2018.
Spire STL Pipeline
As part of our efforts to modernize our gas transport, storage and supply assets, in February we announced the Spire STL Pipeline - an approximately 70-mile pipeline with a capacity of 400 MMcf/d - to enhance reliability, diversify our physical transport portfolio and provide access to lower-cost shale gas from the Marcellus/Utica producing regions. Laclede Gas is expected to be a foundation shipper with a contractual commitment of 350 MMcf/d.
On July 22, our project was accepted into the pre-filing process at the Federal Energy Regulatory Commission (FERC), and on August 1 we launched an open season to broadly solicit commercial interest in capacity on our proposed pipeline. The estimated total project cost remains $170 - $200 million with an expected fiscal 2019 in-service date.
Outlook
Based on year-to-date performance, we are affirming our fiscal 2016 NEE per share range of $3.34 to $3.44, but narrowing our expectation to the upper end of the range. Capital expenditures for the year are anticipated to be $310 million, reflecting the timing of projects underway during our fiscal 2016 fourth quarter. Our 5-year view of capital spend remains unchanged at approximately $1.8 billion.
Balance Sheets and Cash Flows
During the quarter, we successfully completed the raising of permanent financing to support the Mobile Gas and Willmut Gas acquisition. On May 17, we issued 2.2 million shares generating gross proceeds of $138 million. On June 20, we finalized commitments for long-term debt in a private placement offering totaling $165 million, with the funding of that debt tied to the closing of the underlying acquisition.
We maintain a strong capital structure with ample liquidity. At June 30, 2016, we had a balanced long-term capitalization of nearly 52 percent equity before including the benefit of the equity raised to support the Mobile Gas and Willmut Gas acquisition. Short-term borrowings outstanding at June 30, 2016 were $97.6 million, down from $338.0 million at September 30, 2015.
Net cash provided by operating activities was $356.9 million for the nine months ended June 30, 2016, compared to $366.3 million for the same period in fiscal 2015. The change reflects variations in collections under the purchased gas cost riders in Missouri and Alabama, as well as other working capital fluctuations which are largely driven by relative weather conditions in each period.
Capital expenditures for the first nine months of fiscal 2016 were $195.3 million compared to $202.9 million in the prior-year period. We continue to focus on infrastructure upgrade investments at the Missouri Utilities and Alagasco.
For additional details on Spire's results for the third quarter and first nine months of fiscal 2016, please see the accompanying unaudited Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
Regulatory Matters
On July 12, the Missouri Public Service Commission (MoPSC) ordered that a complaint case filed in late April by the Office of Public Counsel (OPC) be allowed to proceed, but denied OPC's request that the Staff of the MoPSC conduct the investigation. OPC had filed the complaint to address whether the gas rates of the Missouri Utilities are just and reasonable. The OPC alleged that the Missouri Utilities were overearning based on an unadjusted return on equity for fiscal 2015. Earlier, we filed a motion, and the Staff of the MoPSC filed a recommendation, for the complaint to be dismissed. On July 22, we filed a motion for reconsideration, or in the alternative, a motion for stay of the complaint proceeding and proposed that our Missouri Utilities would file their required rate cases on or before March 17, 2017.
Effective May 31, the MoPSC approved a $9.0 million annualized increase in ISRS revenues for the Missouri Utilities, bringing the annual ISRS run rate to $35.3 million. ISRS allows for more timely regulatory recovery of prudent investments made by gas utilities to improve the integrity, safety and reliability of their distribution systems while reducing maintenance costs.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its third quarter financial results. To access the call, please dial the number below approximately 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, August 3 | ||
|
8 a.m. CDT (9 a.m. EDT) | |||
|
Phone Numbers: |
U.S. and Canada: |
1-844-824-3832 1-412-317-5142 | |
|
International: | |||
The call will also be webcast in a listen-only format for the media and general public. The webcast can be accessed at www.SpireEnergy.com under the Investor Relations tab. A replay of the call will be available beginning at 10 a.m. CDT (11 a.m. EDT) on August 3 and continuing until September 2 by dialing 1-877-344-7529 (U.S.), 1-855-669-9658 (Canada), or 1-412-317-0088 (International). The Replay Access Code is 10089431. A replay of the webcast will be available at www.SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities - Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives, 2) acquiring and integrating gas utilities, 3) modernizing our gas supply assets, and 4) investing in innovation. Learn more at www.SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-K for the fiscal year ended September 30, 2015, filed with the Securities and Exchange Commission (SEC), and Spire's Form 10-Q for the quarter and nine months ended June 30, 2016, to be filed with the SEC later today.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "operating margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions. These adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. In calculating net economic earnings, management also excludes from net income the after-tax impacts related to acquisition, divestiture, and restructuring activities, including one-time costs related to the pending acquisition of Mobile Gas and Willmut Gas and the integration of MGE and Alagasco. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Operating margin adjusts operating income to include only those costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income or net income.
|
Consolidated Statements of Income - Unaudited Spire Inc. (In Millions, except per share amounts) | |||||||||||||||||
|
Three months ended |
Nine months ended | ||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||
|
Operating Revenues: |
|||||||||||||||||
|
Gas Utility |
$ |
253.2 |
$ |
260.2 |
$ |
1,263.5 |
$ |
1,688.6 |
|||||||||
|
Gas Marketing and other |
(3.9) |
15.0 |
(5.5) |
83.6 |
|||||||||||||
|
Total Operating Revenues |
249.3 |
275.2 |
1,258.0 |
1,772.2 |
|||||||||||||
|
Operating Expenses: |
|||||||||||||||||
|
Gas Utility |
|||||||||||||||||
|
Natural and propane gas |
54.1 |
57.7 |
463.7 |
844.8 |
|||||||||||||
|
Other operation and maintenance expenses |
91.8 |
90.6 |
277.7 |
291.5 |
|||||||||||||
|
Depreciation and amortization |
34.2 |
32.5 |
101.5 |
96.7 |
|||||||||||||
|
Taxes, other than income taxes |
27.4 |
26.2 |
99.5 |
119.9 |
|||||||||||||
|
Total Gas Utility Operating Expenses |
207.5 |
207.0 |
942.4 |
1,352.9 |
|||||||||||||
|
Gas Marketing and other |
6.5 |
32.2 |
25.6 |
138.3 |
|||||||||||||
|
Total Operating Expenses |
214.0 |
239.2 |
968.0 |
1,491.2 |
|||||||||||||
|
Operating Income |
35.3 |
36.0 |
290.0 |
281.0 |
|||||||||||||
|
Other Income |
1.6 |
0.5 |
3.8 |
2.6 |
|||||||||||||
|
Interest Charges: |
|||||||||||||||||
|
Interest on long-term debt |
16.6 |
16.3 |
50.2 |
50.0 |
|||||||||||||
|
Other interest charges |
2.8 |
1.5 |
7.5 |
6.1 |
|||||||||||||
|
Total Interest Charges |
19.4 |
17.8 |
57.7 |
56.1 |
|||||||||||||
|
Income Before Income Taxes |
17.5 |
18.7 |
236.1 |
227.5 |
|||||||||||||
|
Income Tax Expense |
6.8 |
4.6 |
77.7 |
71.9 |
|||||||||||||
|
Net Income |
$ |
10.7 |
$ |
14.1 |
$ |
158.4 |
$ |
155.6 |
|||||||||
|
Weighted Average Number of Common Shares Outstanding: |
|||||||||||||||||
|
Basic |
44.4 |
43.2 |
43.6 |
43.1 |
|||||||||||||
|
Diluted |
44.6 |
43.3 |
43.8 |
43.2 |
|||||||||||||
|
Basic Earnings Per Share of Common Stock |
$ |
0.24 |
$ |
0.32 |
$ |
3.62 |
$ |
3.59 |
|||||||||
|
Diluted Earnings Per Share of Common Stock |
$ |
0.24 |
$ |
0.32 |
$ |
3.60 |
$ |
3.59 |
|||||||||
|
Dividends Declared Per Share of Common Stock |
$ |
0.49 |
$ |
0.46 |
$ |
1.47 |
$ |
1.38 |
|||||||||
|
Condensed Consolidated Balance Sheets - Unaudited Spire Inc. (In Millions) | |||||||||||
|
June 30, |
September 30, |
June 30, | |||||||||
|
2016 |
2015 |
2015 | |||||||||
|
ASSETS |
|||||||||||
|
Utility Plant |
$ |
4,339.5 |
$ |
4,234.5 |
$ |
4,108.4 |
|||||
|
Less: Accumulated depreciation and amortization |
1,311.5 |
1,307.0 |
1,239.1 |
||||||||
|
Net Utility Plant |
3,028.0 |
2,927.5 |
2,869.3 |
||||||||
|
Non-utility Property |
13.8 |
13.7 |
12.2 |
||||||||
|
Goodwill |
946.0 |
946.0 |
946.0 |
||||||||
|
Other Investments |
62.4 |
59.9 |
63.1 |
||||||||
|
Total Other Property and Investments |
1,022.2 |
1,019.6 |
1,021.3 |
||||||||
|
Current Assets: |
|||||||||||
|
Cash and cash equivalents |
4.9 |
13.8 |
5.7 |
||||||||
|
Accounts receivable (net of allowance for doubtful accounts) |
195.6 |
210.6 |
210.7 |
||||||||
|
Delayed customer billings |
3.5 |
2.6 |
21.9 |
||||||||
|
Inventories |
143.9 |
215.4 |
163.3 |
||||||||
|
Other |
105.5 |
87.7 |
81.4 |
||||||||
|
Total Current Assets |
453.4 |
530.1 |
483.0 |
||||||||
|
Regulatory Assets and Other Deferred Charges |
807.3 |
813.0 |
709.3 |
||||||||
|
Total Assets |
$ |
5,310.9 |
$ |
5,290.2 |
$ |
5,082.9 |
|||||
|
CAPITALIZATION AND LIABILITIES |
|||||||||||
|
Capitalization: |
|||||||||||
|
Common stock and paid-in capital |
$ |
1,219.1 |
$ |
1,081.4 |
$ |
1,078.9 |
|||||
|
Retained earnings |
588.6 |
494.2 |
532.9 |
||||||||
|
Accumulated other comprehensive loss |
(5.3) |
(2.0) |
(3.2) |
||||||||
|
Total Common Stock Equity |
1,802.4 |
1,573.6 |
1,608.6 |
||||||||
|
Long-term debt |
1,851.7 |
1,771.5 |
1,736.4 |
||||||||
|
Total Capitalization |
3,654.1 |
3,345.1 |
3,345.0 |
||||||||
|
Current Liabilities: |
|||||||||||
|
Current portion of long-term debt |
— |
80.0 |
80.0 |
||||||||
|
Notes payable |
97.6 |
338.0 |
211.4 |
||||||||
|
Accounts payable |
135.8 |
146.5 |
148.1 |
||||||||
|
Advance customer billings |
53.0 |
44.3 |
12.9 |
||||||||
|
Accrued liabilities and other |
205.4 |
245.0 |
268.0 |
||||||||
|
Total Current Liabilities |
491.8 |
853.8 |
720.4 |
||||||||
|
Deferred Credits and Other Liabilities: |
|||||||||||
|
Deferred income taxes |
574.1 |
482.1 |
487.7 |
||||||||
|
Pension and postretirement benefit costs |
246.9 |
253.4 |
233.3 |
||||||||
|
Asset retirement obligations |
164.6 |
159.2 |
102.7 |
||||||||
|
Regulatory liabilities |
105.7 |
119.3 |
114.9 |
||||||||
|
Other |
73.7 |
77.3 |
78.9 |
||||||||
|
Total Deferred Credits and Other Liabilities |
1,165.0 |
1,091.3 |
1,017.5 |
||||||||
|
Total Capitalization and Liabilities |
$ |
5,310.9 |
$ |
5,290.2 |
$ |
5,082.9 |
|||||
|
Condensed Consolidated Statements of Cash Flow - Unaudited Spire Inc. (In Millions) | |||||||
|
Nine months ended | |||||||
|
2016 |
2015 | ||||||
|
Operating Activities: |
|||||||
|
Net Income |
$ |
158.4 |
$ |
155.6 |
|||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
|
Depreciation, amortization, and accretion |
102.0 |
97.4 |
|||||
|
Deferred income taxes and investment tax credits |
77.7 |
70.4 |
|||||
|
Changes in assets and liabilities |
18.9 |
35.2 |
|||||
|
Other |
(0.1) |
7.7 |
|||||
|
Net cash provided by operating activities |
356.9 |
366.3 |
|||||
|
Investing Activities: |
|||||||
|
Capital expenditures |
(195.3) |
(202.9) |
|||||
|
Payments for final reconciliation of acquisitions |
— |
(8.6) |
|||||
|
Other |
(1.5) |
(0.4) |
|||||
|
Net cash used in investing activities |
(196.8) |
(211.9) |
|||||
|
Financing Activities: |
|||||||
|
Repayment of long-term debt |
(80.0) |
(34.7) |
|||||
|
Issuance of long-term debt |
80.0 |
— |
|||||
|
Repayment of short-term debt - net |
(240.4) |
(75.8) |
|||||
|
Issuance of common stock |
136.1 |
3.6 |
|||||
|
Dividends paid |
(62.9) |
(59.1) |
|||||
|
Other |
(1.8) |
1.2 |
|||||
|
Net cash used in financing activities |
(169.0) |
(164.8) |
|||||
|
Net Decrease in Cash and Cash Equivalents |
(8.9) |
(10.4) |
|||||
|
Cash and Cash Equivalents at Beginning of Period |
13.8 |
16.1 |
|||||
|
Cash and Cash Equivalents at End of Period |
$ |
4.9 |
$ |
5.7 |
|||
|
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas |
Other |
Total |
Per Diluted | |||||||||||||||||
|
Three Months Ended June 30, 2016 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
17.9 |
$ |
(1.0) |
$ |
(6.2) |
$ |
10.7 |
$ |
0.24 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized loss on energy-related derivatives |
— |
4.9 |
— |
4.9 |
0.11 |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
(0.1) |
— |
(0.1) |
— |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.3) |
— |
(0.3) |
(0.01) |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.2 |
— |
1.6 |
1.8 |
0.04 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.1) |
(1.7) |
(0.6) |
(2.4) |
(0.06) |
|||||||||||||||||
|
Weighted average shares adjustment |
— |
— |
— |
— |
0.01 |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
18.0 |
$ |
1.8 |
$ |
(5.2) |
$ |
14.6 |
$ |
0.33 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
0.40 |
$ |
(0.02) |
$ |
(0.14) |
$ |
0.24 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
0.41 |
$ |
0.04 |
$ |
(0.12) |
$ |
0.33 |
||||||||||||||
|
Three Months Ended June 30, 2015 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
20.7 |
$ |
1.0 |
$ |
(7.6) |
$ |
14.1 |
$ |
0.32 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized gain on energy-related derivatives |
— |
(2.9) |
— |
(2.9) |
(0.07) |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
(0.4) |
— |
(0.4) |
(0.01) |
|||||||||||||||||
|
Realized loss on economic hedges prior to the sale of the physical commodity |
— |
2.5 |
— |
2.5 |
0.06 |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
0.8 |
— |
2.7 |
3.5 |
0.08 |
|||||||||||||||||
|
Gain on sale of property |
(7.6) |
— |
— |
(7.6) |
(0.17) |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
2.6 |
0.3 |
(1.0) |
1.9 |
0.04 |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
16.5 |
$ |
0.5 |
$ |
(5.9) |
$ |
11.1 |
$ |
0.25 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
0.48 |
$ |
0.02 |
$ |
(0.18) |
$ |
0.32 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
0.38 |
$ |
0.01 |
$ |
(0.14) |
$ |
0.25 |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. | |
|
(2) Fiscal 2016 net economic earnings per share exclude the impact of the May 2016 equity issuance to fund a portion of the acquisition of Mobile Gas and Willmut Gas. The weighted average diluted shares used in the net economic earnings per share calculation for the fiscal quarter ended June 30, 2016 was 43.5 compared to 44.6 in the GAAP diluted EPS calculation. Fiscal 2015 net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. | |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Net Economic Earnings and Reconciliation to GAAP | ||||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas |
Gas |
Other |
Total |
Per Diluted | |||||||||||||||||
|
Nine Months Ended June 30, 2016 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
169.6 |
$ |
2.8 |
$ |
(14.0) |
$ |
158.4 |
$ |
3.60 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized (gain) loss on energy-related derivatives |
(0.1) |
3.0 |
— |
2.9 |
0.07 |
|||||||||||||||||
|
Lower of cost or market inventory adjustments |
— |
0.6 |
— |
0.6 |
0.01 |
|||||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity |
— |
(0.9) |
— |
(0.9) |
(0.02) |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
1.6 |
— |
3.5 |
5.1 |
0.12 |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
(0.6) |
(1.0) |
(1.3) |
(2.9) |
(0.07) |
|||||||||||||||||
|
Weighted average shares adjustment |
— |
— |
— |
— |
0.03 |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
170.5 |
$ |
4.5 |
$ |
(11.8) |
$ |
163.2 |
$ |
3.74 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.86 |
$ |
0.06 |
$ |
(0.32) |
$ |
3.60 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.91 |
$ |
0.10 |
$ |
(0.27) |
$ |
3.74 |
||||||||||||||
|
Nine Months Ended June 30, 2015 |
||||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
166.5 |
$ |
3.5 |
$ |
(14.4) |
$ |
155.6 |
$ |
3.59 |
||||||||||||
|
Adjustments, pre-tax: |
||||||||||||||||||||||
|
Unrealized gain on energy-related derivatives |
(0.1) |
(3.4) |
— |
(3.5) |
(0.09) |
|||||||||||||||||
|
Realized loss on economic hedges prior to the sale of the physical commodity |
— |
2.6 |
— |
2.6 |
0.06 |
|||||||||||||||||
|
Acquisition, divestiture and restructuring activities |
1.7 |
— |
4.8 |
6.5 |
0.15 |
|||||||||||||||||
|
Gain on sale of property |
(7.6) |
— |
— |
(7.6) |
(0.17) |
|||||||||||||||||
|
Income tax effect of adjustments (1) |
2.3 |
0.3 |
(1.8) |
0.8 |
0.02 |
|||||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
162.8 |
$ |
3.0 |
$ |
(11.4) |
$ |
154.4 |
$ |
3.56 |
||||||||||||
|
Diluted EPS (GAAP) |
$ |
3.84 |
$ |
0.08 |
$ |
(0.33) |
$ |
3.59 |
||||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.75 |
$ |
0.07 |
$ |
(0.26) |
$ |
3.56 |
||||||||||||||
|
(1) Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. | |
|
(2) Fiscal 2016 net economic earnings per share exclude the impact of the May 2016 equity issuance to fund a portion of the acquisition of Mobile Gas and Willmut Gas. The weighted average diluted shares used in the net economic earnings per share calculation for the nine months ended June 30, 2016 was 43.5 compared to 43.8 in the GAAP diluted EPS calculation. Fiscal 2015 net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. | |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
Operating Margin and Reconciliation to GAAP | ||||||||||||||||||||
|
(In Millions) |
Gas Utility |
Gas |
Other |
Eliminations |
Consolidated | |||||||||||||||
|
Three Months Ended June 30, 2016 |
||||||||||||||||||||
|
Operating revenues |
$ |
253.3 |
$ |
2.3 |
$ |
0.9 |
$ |
(7.2) |
$ |
249.3 |
||||||||||
|
Natural and propane gas expense |
61.1 |
2.5 |
— |
(6.9) |
56.7 |
|||||||||||||||
|
Gross receipts tax expense |
15.3 |
— |
— |
— |
15.3 |
|||||||||||||||
|
Operating margin (non-GAAP) |
176.9 |
(0.2) |
0.9 |
(0.3) |
177.3 |
|||||||||||||||
|
Depreciation and amortization |
34.2 |
0.1 |
0.1 |
— |
34.4 |
|||||||||||||||
|
Other operating expenses |
104.0 |
1.3 |
2.6 |
(0.3) |
107.6 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
38.7 |
$ |
(1.6) |
$ |
(1.8) |
$ |
— |
$ |
35.3 |
||||||||||
|
Three Months Ended June 30, 2015 |
||||||||||||||||||||
|
Operating revenues |
$ |
261.2 |
$ |
28.9 |
$ |
1.0 |
$ |
(15.9) |
$ |
275.2 |
||||||||||
|
Natural and propane gas expense |
73.2 |
25.7 |
0.1 |
(15.6) |
83.4 |
|||||||||||||||
|
Gross receipts tax expense |
15.1 |
0.1 |
— |
— |
15.2 |
|||||||||||||||
|
Operating margin (non-GAAP) |
172.9 |
3.1 |
0.9 |
(0.3) |
176.6 |
|||||||||||||||
|
Depreciation and amortization |
32.5 |
0.1 |
0.1 |
— |
32.7 |
|||||||||||||||
|
Other operating expenses |
102.0 |
1.5 |
4.7 |
(0.3) |
107.9 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
38.4 |
$ |
1.5 |
$ |
(3.9) |
$ |
— |
$ |
36.0 |
||||||||||
|
Nine Months Ended June 30, 2016 |
||||||||||||||||||||
|
Operating revenues |
$ |
1,265.5 |
$ |
23.1 |
$ |
2.6 |
$ |
(33.2) |
$ |
1,258.0 |
||||||||||
|
Natural and propane gas expense |
496.0 |
13.9 |
— |
(32.3) |
477.6 |
|||||||||||||||
|
Gross receipts tax expense |
65.0 |
0.1 |
— |
— |
65.1 |
|||||||||||||||
|
Operating margin (non-GAAP) |
704.5 |
9.1 |
2.6 |
(0.9) |
715.3 |
|||||||||||||||
|
Depreciation and amortization |
101.5 |
0.1 |
0.4 |
— |
102.0 |
|||||||||||||||
|
Other operating expenses |
312.9 |
4.3 |
7.0 |
(0.9) |
323.3 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
290.1 |
$ |
4.7 |
$ |
(4.8) |
$ |
— |
$ |
290.0 |
||||||||||
|
Nine Months Ended June 30, 2015 |
||||||||||||||||||||
|
Operating revenues |
$ |
1,692.6 |
$ |
135.2 |
$ |
2.8 |
$ |
(58.4) |
$ |
1,772.2 |
||||||||||
|
Natural and propane gas expense |
902.1 |
124.8 |
0.3 |
(57.6) |
969.6 |
|||||||||||||||
|
Gross receipts tax expense |
86.1 |
0.2 |
— |
— |
86.3 |
|||||||||||||||
|
Operating margin (non-GAAP) |
704.4 |
10.2 |
2.5 |
(0.8) |
716.3 |
|||||||||||||||
|
Depreciation and amortization |
96.7 |
0.3 |
0.4 |
— |
97.4 |
|||||||||||||||
|
Other operating expenses |
326.1 |
4.2 |
8.4 |
(0.8) |
337.9 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
281.6 |
$ |
5.7 |
$ |
(6.3) |
$ |
— |
$ |
281.0 |
||||||||||
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SprireEnergy.com
SOURCE Spire Inc.
Article Date
8/3/20168/1/2016 - Spire STL Pipeline Announces Open Season
Spire STL Pipeline Announces Open Season
Source: PR Newswire
ST. LOUIS, Aug. 1, 2016 /PRNewswire/ -- At Spire, we help communities and businesses in the region grow and thrive. The proposed Spire STL Pipeline will take that one step further by bringing affordable and abundant natural gas to the St. Louis region from the largest producing basin in America. Today marks the beginning of the open season for this pipeline to broadly solicit commercial interest in capacity on our proposed pipeline. The open season ends on August 19, 2016.
The proposed 70-mile steel pipeline would interconnect to the Rockies Express Pipeline in Scott County, Illinois and end in St. Louis County, Missouri. The pipeline as proposed will be capable of delivering up to 400,000 dekatherms per day of natural gas into our region.
"We are fortunate, and excited, to have the opportunity to bring an affordable, reliable and large scale natural gas resource to St. Louis and the surrounding communities. This important new pipeline will help meet the region's growing energy needs well into the future," said Scott Jaskowiak, vice president of strategy and corporate development at Spire. "The open season is a time when we can work alongside local business partners and other interested parties to solidify the design of the pipeline and ensure it meets the growing needs of the region's homes, communities and businesses. Any time we expand natural gas pipeline infrastructure, long-term economic growth benefits follow, which means that businesses and families thrive."
Open season bids are due August 19, 2016 for service beginning as early as November 1, 2018. To learn more about Spire STL Pipeline, visit www.SpireSTLPipeline.com. For more information about the open season and placing a bid, please contact Scott Jaskowiak at 314-516-8588 or Scott.Jaskowiak@SpireEnergy.com. Spire STL Pipeline LLC is a wholly owned subsidiary of Spire Inc.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities - Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets, and 4) investing in innovation. Learn more at www.SpireEnergy.com.
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
SOURCE Spire Inc.
Article Date
8/1/20167/28/2016 - Spire Declares Dividend
Spire Declares Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, July 28, 2016 /PRNewswire/ -- The Spire Inc. (NYSE: SR) board of directors today declared a quarterly common stock dividend of $0.49 per share, payable October 4, 2016, to shareholders of record on September 12, 2016.
We have continuously paid a cash dividend since 1946, with 2016 marking the 13th consecutive year of increasing the dividend on an annualized basis.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities - Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets; and 4) investing in innovation. Learn more at www.SpireEnergy.com.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SprireEnergy.com
SOURCE Spire Inc.
Article Date
7/28/2016Spire to Host Earnings Conference Call on August 3
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, July 12, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) will host a conference call and webcast on Wednesday, August 3 to discuss its fiscal 2016 third quarter financial results, which will be announced in a news release issued before the market opens that day. The release will be available on our website at SpireEnergy.com under the News tab.
To access the call, please dial the number below 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, August 3 |
|
|
8 a.m. CDT (9 a.m. EDT) |
||
|
Phone Numbers: |
U.S. and Canada: |
1-844-824-3832 |
|
International: |
1-412-317-5142 |
The call will be webcast in a listen-only format for the media and general public and can be accessed at SpireEnergy.com under the Investors tab.
A replay of the call will be available beginning at 10 a.m. CDT (11 a.m. EDT) on August 3, and continuing until September 2, by dialing 1-877-344-7529 (U.S.), 1-855-669-9658 (Canada), or 1-412-317-0088 (International). The replay access code is 10089431. A replay of the webcast will be available on our website at SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities - Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets; and 4) investing in innovation. Learn more at www.SpireEnergy.com.
SOURCE Spire Inc.
Article Date
7/12/2016Spire to Present at J.P. Morgan Energy Equity Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, June 27, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) today announced that members of its management team will present at the J.P. Morgan Inaugural Energy Equity Conference in New York City on Tuesday, June 28, 2016 at 10:40 a.m. Eastern Time. Suzanne Sitherwood, president and CEO, and Steve Rasche, executive vice president and CFO, will discuss the company's strategic growth initiatives and provide an update on recent performance and developments.
A live webcast of the presentation, along with accompanying slides, will be available on our website at SpireEnergy.com, under Investors – Events and Presentations. The presentation will be archived and will be available for replay on our website.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities – Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets, and 4) investing in innovation. Learn more at www.SpireEnergy.com.
SOURCE Spire Inc.
Article Date
6/27/2016Spire Announces Private Placement of $165 Million of Senior Unsecured Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, June 20, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) ("Spire") announced today that it has finalized the terms of a private placement with institutional investors of $165 million of senior unsecured notes, consisting of $35 million of 5-year notes and $130 million of 10-year notes.
Spire intends to use the net proceeds to fund a portion of the consideration for its previously announced pending acquisition of Mobile Gas and Willmut Gas. The issuance and sale of the notes is expected to occur concurrently with or shortly before the closing of the acquisition, but may not occur later than December 31, 2016. If the acquisition for any reason does not close within three business days of the issuance of the notes, on the next business day, the notes will be repaid at par and cancelled. If the acquisition is terminated for any reason prior to issuance of the notes, the notes will not be issued. Depending on the date of issuance and sale, the 5-year notes will bear interest between 2.49 percent and 2.61 percent per annum and the 10-year notes will bear interest between 3.11 percent and 3.19 percent per annum. With the completion of the acquisition financing, Spire's $275 million bridge loan commitment for the acquisition has terminated.
The offer and sale of these notes has not been registered under the Securities Act of 1933, as amended, and the notes may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation of any offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond Spire's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see Spire's Annual Report on Form 10-K for the fiscal year ended September 30, 2015 and Spire's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, each as filed with the Securities and Exchange Commission.
SOURCE Spire Inc.
Article Date
6/20/20166/7/2016 - Spire Building Earns LEED Gold Certification
Spire Building Earns LEED Gold Certification
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, June 7, 2016 /PRNewswire/ -- At Spire, one way we advance our communities is by using environmentally friendly and sustainable practices across our company. These practices were recently recognized with LEED Gold Certification by the U.S. Green Building Council for the office space at 700 Market in St. Louis. Spire worked with Arcturis, Tarlton and the Koman Group to go above and beyond with the green design and sustainable construction practices.
"We are proud to have achieved LEED Gold and to provide a healthy and sustainable environment for our employees," said Spire President and CEO Suzanne Sitherwood. "It is our responsibility to be good stewards of our environment and we believe this commitment starts at home. When we moved into our new offices at 700 Market we wanted to bring this historic building back to life and make it an even better space for our employees, our community and our environment."
"Achieving LEED Gold for this iconic building that serves as Spire's St. Louis anchor is a noteworthy achievement," said Rick Fedrizzi, CEO and founding chair, U.S. Green Building Council. "Spire has made a significant contribution to downtown St. Louis by repurposing this beautiful Postmodern building. Simultaneously it is investing in its employees' comfort and well-being with an interior space that's filled with daylight and cleaner, fresher air. Add to that the operational efficiencies of saving energy and water and reducing waste, and you have the kind of leadership that sets a high bar for next generation corporate leaders."
The building at 700 Market was designed by architect Philip Johnson and is on the National Register of Historic Places. Bringing sustainable practices to historical buildings can be more challenging as some features of the building cannot be changed. Spire is proud to be one of six LEED certified projects in historic buildings within St. Louis.
Green design and construction features at Spire include:
About LEED
The LEED green building certification system is the world's most widely used program for the design, construction, maintenance and operations of green buildings. Today, there are nearly 75,000 commercial projects and more than 200,000 residential units participating in LEED across the globe, with 1.85 million square feet of building space becoming LEED-certified every day.
Green construction is a large economic driver. According to the 2015 USGBC Green Building Economic Impact Study, green construction will account for more than 3.3 million U.S. jobs—more than one-third of the entire U.S. construction sector—and generate $190.3 billion in labor earnings. The industry's direct contribution to the U.S. gross domestic product (GDP) is also expected to reach $303.5 billion from 2015–2018. For more information about the LEED credits visit: www.usgbc.org/LEED.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities - Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets, and 4) investing in innovation. Learn more at www.SpireEnergy.com.
SOURCE Spire Inc.
Article Date
6/7/20165/13/2016 - Spire to Present at AGA Financial Forum
Spire to Present at AGA Financial Forum
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, May 13, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) today announced that members of its management team will present at the 2016 American Gas Association (AGA) Financial Forum in Naples, Florida, on Monday, May 16, 2016, at 1:45 p.m. Eastern Time. Spire President and CEO Suzanne Sitherwood, and Executive Vice President and CFO Steve Rasche will discuss our strategic growth initiatives and provide an update on recent performance and developments.
A live webcast of the presentation, along with presentation materials, will be available on our website at SpireEnergy.com. The presentation will be archived and will be available for replay on our website.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but it's one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities - Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets, and 4) investing in innovation. Learn more at www.SpireEnergy.com.
Logo - http://photos.prnewswire.com/prnh/20160323/347388LOGO
SOURCE Spire Inc.
Article Date
5/13/2016Spire Announces Pricing of Public Offering of Common Stock
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, May 12, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) announced today that it has priced a public offering of 1,900,000 shares of its common stock at $63.05 per share. Spire has also granted the underwriter a 30-day option to purchase up to 285,000 additional shares of common stock. The offering is expected to close on May 17, 2016, subject to customary closing conditions.
Spire intends to use the net proceeds, which are expected to be $116 million or $133 million if the option to purchase additional shares is exercised in full (after deducting the underwriting discounts and commissions but before deducting offering expenses), to fund a portion of the consideration for the pending acquisition of Mobile Gas and Willmut Gas.
Morgan Stanley is sole book runner for the offering. Copies of the preliminary prospectus supplement and accompanying prospectus for the offering may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities - Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets; and 4) investing in innovation.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see the preliminary prospectus supplement and accompanying prospectus for the offering, including the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2015 and the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 incorporated by reference therein, each as filed with the Securities and Exchange Commission.
SOURCE Spire Inc.
Article Date
5/12/2016Spire Announces Public Offering of 1,850,000 Shares of Common Stock
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, May 11, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) announced today that it has commenced an underwritten public offering of 1,850,000 shares of its common stock pursuant to an effective registration statement previously filed with the Securities and Exchange Commission. Spire has also granted the underwriter a 30-day option to purchase up to 277,500 additional shares of common stock.
Spire intends to use the proceeds from the offering to fund a portion of the consideration for the pending acquisition of Mobile Gas and Willmut Gas.
Morgan Stanley is acting as sole bookrunner for the offering. Copies of the preliminary prospectus supplement and accompanying prospectus for the offering may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities - Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets; and 4) investing in innovation.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see the preliminary prospectus supplement and accompanying prospectus for the offering, including the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2015 and the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 incorporated by reference therein, each as filed with the Securities and Exchange Commission.
SOURCE Spire Inc.
Article Date
5/11/20165/4/2016 - Spire Reports Second Quarter Results
Spire Reports Second Quarter Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ST. LOUIS, May 4, 2016 /PRNewswire/ -- Spire Inc. (NYSE: SR) ("Company" or "Spire") today reported operating results for its fiscal 2016 second quarter and first half ended March 31, 2016. Highlights include:
"We delivered another solid performance in the second quarter with net economic earnings increasing to $2.37 per share on higher Gas Utility earnings," said Suzanne Sitherwood, president and chief executive officer of Spire. "We also maintained our high level of service to our customers as we continue to grow. Last week we announced plans to acquire two gas utilities - Mobile Gas in Alabama and Willmut Gas in Mississippi - and we look forward to adding their employees, customers and communities to our Spire family. At the same time, we further crystalized our STL Pipeline project to access shale gas from the Marcellus/Utica region."
|
Second Quarter Results |
Three months ended March 31, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
102.5 |
$ |
96.5 |
$ |
2.35 |
$ |
2.22 |
||||||||||
|
Gas Marketing |
3.0 |
2.1 |
0.07 |
0.05 |
||||||||||||||
|
Other |
(2.0) |
(1.0) |
(0.05) |
(0.02) |
||||||||||||||
|
Total |
$ |
103.5 |
$ |
97.6 |
$ |
2.37 |
$ |
2.25 |
||||||||||
|
Acquisition related costs |
(1.1) |
(1.5) |
(0.03) |
(0.03) |
||||||||||||||
|
Fair value adjustments |
(1.6) |
(1.7) |
(0.03) |
(0.04) |
||||||||||||||
|
Net Income (GAAP) |
$ |
100.8 |
$ |
94.4 |
$ |
2.31 |
$ |
2.18 |
||||||||||
|
Average Shares Outstanding (Millions) |
43.5 |
43.2 |
||||||||||||||||
|
* Non-GAAP, see "Net Economic Earnings and Reconciliation to GAAP." |
For the three months ended March 31, 2016, the second quarter of its fiscal year, we reported net economic earnings (NEE) of $103.5 million (or $2.37 per diluted share) compared to $97.6 million (or $2.25 per diluted share) a year earlier. Consolidated net income for the second quarter was $100.8 million compared to $94.4 million in the prior year period, reflecting higher earnings from both the Gas Utility and Gas Marketing segments. NEE excludes from net income the effect of unrealized gains and losses on energy-related derivatives, as well as the impacts of acquisition, divestiture and restructuring activities which consist largely of expenses associated with the integration of Missouri Gas Energy (MGE) and Alabama Gas Corporation (Alagasco).
Gas Utility
The Gas Utility segment includes the regulated gas distribution operations of our three utilities - Laclede Gas and MGE (collectively the Missouri Utilities) and Alagasco. For the second quarter, the Gas Utility segment posted NEE of $102.5 million compared to $96.5 million a year ago. Segment net income was $102.4 million for the second quarter ended March 31, 2016 compared to $96.2 million in the prior year.
Our utilities overall experienced unseasonably warm conditions this winter, with the Missouri Utilities seeing the second warmest winter on record. This weather did impact certain components of operating results for the quarter. Operating margins (non-GAAP; see "Operating Margin and Reconciliation to GAAP") were lower reflecting a $6.1 million impact from a decrease in overall demand and this was more than offset by higher Infrastructure System Replacement Surcharge (ISRS) revenues at the Missouri Utilities of $3.9 million and a lower year-over-year Rate Stabilization and Equalization (RSE) giveback at Alagasco of $3.9 million. Other operation and maintenance expenses were lower by $9.5 million, largely due to the favorable impact of milder weather, especially on bad debt expense and employee-related costs and, to a lesser extent, cost efficiencies and the favorable timing of expenses. Depreciation and amortization increased by $1.6 million reflecting increased capital investment including infrastructure upgrades.
Gas Marketing
The Gas Marketing segment includes the results of Laclede Energy Resources, which provides natural gas marketing services to the Midwest region. Net economic earnings for the second quarter of fiscal 2016 were $3.0 million, up from $2.1 million in the prior year. Quarterly net income for the segment was $1.5 million, up from $0.3 million a year ago. Gas Marketing's improved earnings were largely driven by favorable natural gas storage results.
Other
The non-utility operations and corporate costs, on a net economic earnings basis, were $2.0 million in the second quarter of fiscal 2016, compared to $1.0 million a year ago. Most of these costs in both periods relate to interest expense on debt issued to finance the Alagasco acquisition. Costs were $3.1 million in the second quarter of 2016, compared to $2.1 million a year ago.
|
Six Months Results |
Six months ended March 31, | |||||||||||||||||
|
(Millions) |
(Per Diluted Share) | |||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||
|
Net Economic Earnings (Loss)* by Segment |
||||||||||||||||||
|
Gas Utility |
$ |
152.5 |
$ |
146.3 |
$ |
3.50 |
$ |
3.38 |
||||||||||
|
Gas Marketing |
2.7 |
2.5 |
0.07 |
0.06 |
||||||||||||||
|
Other |
(6.6) |
(5.5) |
(0.16) |
(0.13) |
||||||||||||||
|
Total |
$ |
148.6 |
$ |
143.3 |
$ |
3.41 |
$ |
3.31 |
||||||||||
|
Acquisition related costs |
(2.0) |
(1.9) |
(0.05) |
(0.05) |
||||||||||||||
|
Fair value adjustments |
1.1 |
0.1 |
0.03 |
— |
||||||||||||||
|
Net Income (GAAP) |
$ |
147.7 |
$ |
141.5 |
$ |
3.39 |
$ |
3.26 |
||||||||||
|
Average Shares Outstanding (Millions) |
43.5 |
43.2 |
||||||||||||||||
|
* See "Net Economic Earnings and Reconciliation to GAAP." |
For the first six months of fiscal 2016, we reported consolidated NEE of $148.6 million comparable to $143.3 million in the prior year. Net income was $147.7 million, up from $141.5 million in 2015. The increase in earnings was driven principally by higher Gas Utility operating results. On a per-share basis, NEE was $3.41 per fully diluted share for the first half of fiscal 2016, up from $3.31 per share in the prior-year period.
Gas Utility
For the first half of fiscal 2016, the Gas Utility segment reported NEE of $152.5 million, up from $146.3 million for the same period in 2015. Segment net income increased to $151.7 million from $145.8 million a year ago. As noted earlier, the unseasonably warm winter adversely impacted operating margins and benefited certain other operating costs. Year-to-date operating margins were lower reflecting a $17.3 million impact from lower overall system demand, largely offset by lower RSE givebacks of $6.9 million in Alabama and $6.5 million higher ISRS revenues in Missouri. Other operation and maintenance expenses were lower by $15.0 million reflecting the beneficial impact of milder winter weather, cost efficiencies and timing of expenses. Depreciation and amortization expenses increased by $3.1 million reflecting higher year-over-year capital investments.
Gas Marketing
For the six months ended March 31, 2016, Gas Marketing NEE was $2.7 million, up from $2.5 million a year ago. Net income increased to $3.8 million from $2.5 million a year ago. The earnings increase was largely attributable to better operating margins in the second quarter driven by favorable natural gas storage results.
Other
The non-utility operations and corporate costs, on a NEE basis, were $6.6 million in the first half of fiscal 2016, compared to $5.5 million in the year-ago period. A significant portion of these costs are related to interest expense on debt issued to finance the Alagasco acquisition. Costs were $7.8 million in the first half of 2016, compared to $6.8 million a year ago.
Acquisition of Mobile Gas and Willmut Gas
On April 26, Spire announced its intent to acquire EnergySouth, Inc., from Sempra U.S. Gas & Power, a unit of Sempra Energy (NYSE: SRE). EnergySouth is the parent company of Mobile Gas, with 85,000 gas utility customers in Alabama and Willmut Gas, with 19,000 customers in Mississippi. The purchase price for the utilities is $344 million, and the definitive agreement also calls for the purchase of working capital of $46 million. The purchase consideration will include the assumption of $67 million of existing debt at the two utilities, Spire common equity in the range of $130 - $150 million, new long-term debt in the range of $150 - $170 million, cash on hand and borrowing against existing credit facilities. The transaction is expected to close in 2016, subject to customary closing conditions and regulatory approvals including formal regulatory approval by the Mississippi Public Service Commission. The addition of Mobile Gas and Willmut Gas is expected to be neutral to net economic earnings per share in 2017 and accretive in 2018.
STL Pipeline
In February 2016, we identified a pipeline project - STL Pipeline - as part of our efforts to modernize our gas transportation, storage and supply assets. This pipeline will enhance reliability and provide access to lower-cost shale gas from the Marcellus/Utica producing regions. We are moving forward with our plans to construct this 60-mile, 24-inch pipeline with a capacity of 400 MMcf/d. This FERC-regulated interstate pipeline will interconnect with the Rockies Express and Panhandle Eastern pipelines and delivery gas to our St. Louis utility. We intend to have a 100 percent ownership interest in the pipeline, with Laclede Gas expected to be a foundation shipper. The estimated total project cost is $170 - $200 million, with an expected timeframe of 30 - 36 months from the launch of the open season to the in-service date.
Outlook
We affirm our fiscal 2016 NEE per share range of $3.34 to $3.44, representing annual growth of 5 percent to 8 percent. Including the anticipated expenditures for the STL Pipeline, 2016 capital expenditures are now anticipated to increase to $320 million, and our five-year outlook for capital spend target increases to $1.8 billion.
Balance Sheets and Cash Flows
We maintain a strong capital structure with ample liquidity. At March 31, 2016, we had a balanced long-term capitalization of nearly 52 percent equity and 48 percent debt representing a 160 basis-point improvement in the equity percentage since fiscal 2015 year end. Short-term borrowings outstanding at March 31, 2016 were $253.6 million compared to $338.0 million at September 30, 2015. These amounts reflect normal seasonal borrowings.
Net cash provided by operating activities was $243.0 million for the six months ended March 31, 2016, compared to $279.9 million in the first half of fiscal 2015. The change reflects variations in collections under the purchased gas cost riders in Missouri and Alabama, as well as other working capital fluctuations which are largely driven by relative weather conditions in each period.
Capital expenditures for the first half of fiscal 2016 were $121.8 million compared to $129.5 million in the prior-year period. We continue to focus on infrastructure upgrade investments at the Missouri Utilities and Alagasco.
For additional details on Spire's results for the second quarter and first six months of fiscal 2016, please see the accompanying unaudited Consolidated Statements of Income, unaudited Condensed Consolidated Balance Sheets, and unaudited Condensed Consolidated Statements of Cash Flows.
Regulatory Matters
Missouri Utilities
As previously reported, on February 1, 2016, the Missouri Utilities filed with the Missouri Public Service Commission (MoPSC) for increases in ISRS revenues. In April, the Staff of the MoPSC recommended an increase of $9.0 million. The increase is subject to approval by the Commission, which may occur effective later this month (May). If approved, the additional amounts would bring the annual ISRS run rate to $35.3 million. ISRS allows for more timely regulatory recovery of prudent investments made by gas utilities to improve the integrity, safety and reliability of their distribution systems while reducing maintenance costs.
On April 26, 2016, the Office of Public Counsel (OPC) filed a complaint to address whether the gas rates of the Missouri Utilities are just and reasonable. The OPC alleged that the Missouri Utilities were overearning based on an unadjusted return on equity for fiscal 2015. We believe that complaint lacks merit and is flawed in several respects, and we will vigorously defend our position that our rates are just and reasonable.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss its second quarter financial results. To access the call, please dial the number below approximately 5-10 minutes prior to the start time.
|
Date and Time: |
Wednesday, May 4 |
|||
|
8 a.m. CST (9 a.m. EST) |
||||
|
Phone Numbers: |
U.S. and Canada: |
1-866-652-5200 |
||
|
International: |
1-412-317-6060 |
|||
The call will also be webcast in a listen-only format for the media and general public. The webcast can be accessed at www.SpireEnergy.com under the Investor Relations tab. A replay of the call will be available beginning at 10 a.m. CST (11 a.m. EST) on May 4 and continuing until June 3 by dialing 1-877-344-7529 (U.S.), 1-855-669-9658 (Canada), or 1-412-317-0088 (International). The Replay Access Code is 10084052. A replay of the webcast will be available at www.SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.56 million customers making us the fifth largest publicly traded natural gas company in the country. We help families and business owners fuel their daily lives through our regulated utilities – Laclede Gas, Missouri Gas Energy and Alagasco. Our non-regulated businesses Laclede Energy Resources and Spire Natural Gas Fueling Solutions provide energy solutions to other natural gas users. We are committed to transforming our business and pursuing growth by 1) growing our gas utility business through prudent infrastructure upgrades and organic growth initiatives; 2) acquiring and integrating gas utilities; 3) modernizing our gas supply assets, and 4) investing in innovation. Learn more at www.SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and Non-GAAP Measures
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Spire's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with recent and pending acquisitions. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-K for the fiscal year ended September 30, 2015, filed with the Securities and Exchange Commission (SEC) and Spire's Form 10-Q for the quarter and six months ended March 31, 2016, to be filed with the SEC later today.
This news release includes the non-GAAP financial measures of "net economic earnings," "net economic earnings per share," and "operating margins." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Net economic earnings exclude from net income the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions. These adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in the fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. In calculating net economic earnings, management also excludes from net income the after-tax impacts related to acquisition, divestiture, and restructuring activities, including one-time costs related to the integration of MGE and Alagasco. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations. Operating margin adjusts operating income to include only those costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and propane and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income or net income.
|
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED Spire Inc. (In Millions, except per share amounts) | |||||||||||||||||
|
Three months ended |
Six months ended | ||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||
|
Operating Revenues: |
|||||||||||||||||
|
Gas Utility |
$ |
611.5 |
$ |
847.0 |
$ |
1,010.3 |
$ |
1,428.4 |
|||||||||
|
Gas Marketing and other |
(2.2) |
30.4 |
(1.6) |
68.6 |
|||||||||||||
|
Total Operating Revenues |
609.3 |
877.4 |
1,008.7 |
1,497.0 |
|||||||||||||
|
Operating Expenses: |
|||||||||||||||||
|
Gas Utility |
|||||||||||||||||
|
Natural and propane gas |
261.1 |
482.8 |
409.6 |
787.1 |
|||||||||||||
|
Other operation and maintenance expenses |
94.3 |
103.8 |
185.9 |
200.9 |
|||||||||||||
|
Depreciation and amortization |
33.8 |
32.2 |
67.3 |
64.2 |
|||||||||||||
|
Taxes, other than income taxes |
43.9 |
55.7 |
72.1 |
93.7 |
|||||||||||||
|
Total Gas Utility Operating Expenses |
433.1 |
674.5 |
734.9 |
1,145.9 |
|||||||||||||
|
Gas Marketing and other |
8.5 |
45.2 |
19.1 |
106.1 |
|||||||||||||
|
Total Operating Expenses |
441.6 |
719.7 |
754.0 |
1,252.0 |
|||||||||||||
|
Operating Income |
167.7 |
157.7 |
254.7 |
245.0 |
|||||||||||||
|
Other Income |
0.8 |
0.7 |
2.2 |
2.1 |
|||||||||||||
|
Interest Charges: |
|||||||||||||||||
|
Interest on long-term debt |
16.7 |
16.5 |
33.6 |
33.7 |
|||||||||||||
|
Other interest charges |
2.6 |
2.6 |
4.7 |
4.6 |
|||||||||||||
|
Total Interest Charges |
19.3 |
19.1 |
38.3 |
38.3 |
|||||||||||||
|
Income Before Income Taxes |
149.2 |
139.3 |
218.6 |
208.8 |
|||||||||||||
|
Income Tax Expense |
48.4 |
44.9 |
70.9 |
67.3 |
|||||||||||||
|
Net Income |
$ |
100.8 |
$ |
94.4 |
$ |
147.7 |
$ |
141.5 |
|||||||||
|
Weighted Average Number of Common Shares Outstanding: |
|||||||||||||||||
|
Basic |
43.3 |
43.1 |
43.3 |
43.1 |
|||||||||||||
|
Diluted |
43.5 |
43.2 |
43.5 |
43.2 |
|||||||||||||
|
Basic Earnings Per Share of Common Stock |
$ |
2.32 |
$ |
2.18 |
$ |
3.40 |
$ |
3.27 |
|||||||||
|
Diluted Earnings Per Share of Common Stock |
$ |
2.31 |
$ |
2.18 |
$ |
3.39 |
$ |
3.26 |
|||||||||
|
Dividends Declared Per Share of Common Stock |
$ |
0.49 |
$ |
0.46 |
$ |
0.98 |
$ |
0.92 |
|||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED Spire Inc. (In Millions) | |||||||||||
|
March 31, |
September 30, |
March 31, | |||||||||
|
2016 |
2015 |
2015 | |||||||||
|
ASSETS |
|||||||||||
|
Utility Plant |
$ |
4,271.3 |
$ |
4,234.5 |
$ |
4,037.8 |
|||||
|
Less: Accumulated depreciation and amortization |
1,286.1 |
1,307.0 |
1,213.1 |
||||||||
|
Net Utility Plant |
2,985.2 |
2,927.5 |
2,824.7 |
||||||||
|
Non-utility Property |
13.8 |
13.7 |
10.5 |
||||||||
|
Goodwill |
946.0 |
946.0 |
946.0 |
||||||||
|
Other Investments |
61.1 |
59.9 |
60.8 |
||||||||
|
Total Other Property and Investments |
1,020.9 |
1,019.6 |
1,017.3 |
||||||||
|
Current Assets: |
|||||||||||
|
Cash and cash equivalents |
8.7 |
13.8 |
46.9 |
||||||||
|
Accounts receivable (net of allowance for doubtful accounts) |
265.0 |
210.6 |
355.3 |
||||||||
|
Delayed customer billings |
10.1 |
2.6 |
61.7 |
||||||||
|
Inventories |
124.0 |
215.4 |
117.0 |
||||||||
|
Other |
96.0 |
87.7 |
56.3 |
||||||||
|
Total Current Assets |
503.8 |
530.1 |
637.2 |
||||||||
|
Regulatory Assets and Other Deferred Charges |
809.9 |
813.0 |
701.5 |
||||||||
|
Total Assets |
$ |
5,319.8 |
$ |
5,290.2 |
$ |
5,180.7 |
|||||
|
CAPITALIZATION AND LIABILITIES |
|||||||||||
|
Capitalization: |
|||||||||||
|
Common stock and paid-in capital |
$ |
1,083.7 |
$ |
1,081.4 |
$ |
1,076.6 |
|||||
|
Retained earnings |
599.4 |
494.2 |
539.2 |
||||||||
|
Accumulated other comprehensive loss |
(1.7) |
(2.0) |
(4.2) |
||||||||
|
Total Common Stock Equity |
1,681.4 |
1,573.6 |
1,611.6 |
||||||||
|
Long-term debt |
1,851.6 |
1,771.5 |
1,736.3 |
||||||||
|
Total Capitalization |
3,533.0 |
3,345.1 |
3,347.9 |
||||||||
|
Current Liabilities: |
|||||||||||
|
Current portion of long-term debt |
— |
80.0 |
80.0 |
||||||||
|
Notes payable |
253.6 |
338.0 |
247.6 |
||||||||
|
Accounts payable |
127.1 |
146.5 |
160.1 |
||||||||
|
Advance customer billings |
31.7 |
44.3 |
8.4 |
||||||||
|
Accrued liabilities and other |
206.4 |
245.0 |
357.6 |
||||||||
|
Total Current Liabilities |
618.8 |
853.8 |
853.7 |
||||||||
|
Deferred Credits and Other Liabilities: |
|||||||||||
|
Deferred income taxes |
564.2 |
482.1 |
438.7 |
||||||||
|
Pension and postretirement benefit costs |
254.8 |
253.4 |
243.9 |
||||||||
|
Asset retirement obligations |
162.8 |
159.2 |
101.5 |
||||||||
|
Regulatory liabilities |
110.7 |
119.3 |
114.3 |
||||||||
|
Other |
75.5 |
77.3 |
80.7 |
||||||||
|
Total Deferred Credits and Other Liabilities |
1,168.0 |
1,091.3 |
979.1 |
||||||||
|
Total Capitalization and Liabilities |
$ |
5,319.8 |
$ |
5,290.2 |
$ |
5,180.7 |
|||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED Spire Inc. (In Millions) | |||||||
|
Six months ended March 31, | |||||||
|
2016 |
2015 | ||||||
|
Operating Activities: |
|||||||
|
Net Income |
$ |
147.7 |
$ |
141.5 |
|||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
|
Depreciation, amortization, and accretion |
67.6 |
64.7 |
|||||
|
Deferred income taxes and investment tax credits |
71.0 |
29.0 |
|||||
|
Changes in assets and liabilities |
(42.9) |
40.2 |
|||||
|
Other |
(0.4) |
4.5 |
|||||
|
Net cash provided by operating activities |
243.0 |
279.9 |
|||||
|
Investing Activities: |
|||||||
|
Capital expenditures |
(121.8) |
(129.5) |
|||||
|
Payments for final reconciliation of acquisitions |
— |
(8.6) |
|||||
|
Other |
(0.7) |
(0.4) |
|||||
|
Net cash used in investing activities |
(122.5) |
(138.5) |
|||||
|
Financing Activities: |
|||||||
|
Repayment of long-term debt |
(80.0) |
(34.7) |
|||||
|
Issuance of long-term debt |
80.0 |
— |
|||||
|
Repayment of short-term debt - net |
(84.4) |
(39.6) |
|||||
|
Issuance of common stock |
2.1 |
2.8 |
|||||
|
Dividends paid |
(41.6) |
(39.2) |
|||||
|
Other |
(1.7) |
0.1 |
|||||
|
Net cash used in financing activities |
(125.6) |
(110.6) |
|||||
|
Net (Decrease) Increase in Cash and Cash Equivalents |
(5.1) |
30.8 |
|||||
|
Cash and Cash Equivalents at Beginning of Period |
13.8 |
16.1 |
|||||
|
Cash and Cash Equivalents at End of Period |
$ |
8.7 |
$ |
46.9 |
|||
|
NET ECONOMIC EARNINGS AND RECONCILIATION TO GAAP | ||||||||||||||||||||
|
(In Millions, except per share amounts) |
Gas Utility |
Gas Marketing |
Other |
Total |
Per Share Amounts(2) | |||||||||||||||
|
Three Months Ended March 31, 2016 | ||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
102.4 |
$ |
1.5 |
$ |
(3.1) |
$ |
100.8 |
$ |
2.31 |
||||||||||
|
Unrealized loss on energy-related derivatives (1) |
0.1 |
1.7 |
— |
1.8 |
0.04 |
|||||||||||||||
|
Lower of cost or market inventory adjustments (1) |
— |
0.2 |
— |
0.2 |
— |
|||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity (1) |
— |
(0.4) |
— |
(0.4) |
(0.01) |
|||||||||||||||
|
Acquisition, divestiture and restructuring activities (1) |
— |
— |
1.1 |
1.1 |
0.03 |
|||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
102.5 |
$ |
3.0 |
$ |
(2.0) |
$ |
103.5 |
$ |
2.37 |
||||||||||
|
Diluted EPS (GAAP) |
$ |
2.34 |
$ |
0.04 |
$ |
(0.07) |
$ |
2.31 |
||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
2.35 |
$ |
0.07 |
$ |
(0.05) |
$ |
2.37 |
||||||||||||
|
Three Months Ended March 31, 2015 | ||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
96.2 |
$ |
0.3 |
$ |
(2.1) |
$ |
94.4 |
$ |
2.18 |
||||||||||
|
Unrealized (gain) loss on energy-related derivatives (1) |
(0.1) |
2.7 |
— |
2.6 |
0.06 |
|||||||||||||||
|
Lower of cost or market inventory adjustments (1) |
— |
(1.0) |
— |
(1.0) |
(0.02) |
|||||||||||||||
|
Realized loss on economic hedges prior to the sale of the physical commodity (1) |
— |
0.1 |
— |
0.1 |
— |
|||||||||||||||
|
Acquisition, divestiture and restructuring activities (1) |
0.4 |
— |
1.1 |
1.5 |
0.03 |
|||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
96.5 |
$ |
2.1 |
$ |
(1.0) |
$ |
97.6 |
$ |
2.25 |
||||||||||
|
Diluted EPS (GAAP) |
$ |
2.22 |
$ |
0.01 |
$ |
(0.05) |
$ |
2.18 |
||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
2.22 |
$ |
0.05 |
$ |
(0.02) |
$ |
2.25 |
||||||||||||
|
Six Months Ended March 31, 2016 | ||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
151.7 |
$ |
3.8 |
$ |
(7.8) |
$ |
147.7 |
$ |
3.39 |
||||||||||
|
Unrealized gain on energy-related derivatives (1) |
— |
(1.2) |
— |
(1.2) |
(0.03) |
|||||||||||||||
|
Lower of cost or market inventory adjustments (1) |
— |
0.5 |
— |
0.5 |
0.01 |
|||||||||||||||
|
Realized gain on economic hedges prior to the sale of the physical commodity (1) |
— |
(0.4) |
— |
(0.4) |
(0.01) |
|||||||||||||||
|
Acquisition, divestiture and restructuring activities (1) |
0.8 |
— |
1.2 |
2.0 |
0.05 |
|||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
152.5 |
$ |
2.7 |
$ |
(6.6) |
$ |
148.6 |
$ |
3.41 |
||||||||||
|
Diluted EPS (GAAP) |
$ |
3.48 |
$ |
0.09 |
$ |
(0.18) |
$ |
3.39 |
||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.50 |
$ |
0.07 |
$ |
(0.16) |
$ |
3.41 |
||||||||||||
|
Six Months Ended March 31, 2015 | ||||||||||||||||||||
|
Net Income (Loss) (GAAP) |
$ |
145.8 |
$ |
2.5 |
$ |
(6.8) |
$ |
141.5 |
$ |
3.26 |
||||||||||
|
Unrealized gain on energy-related derivatives (1) |
(0.1) |
(0.3) |
— |
(0.4) |
(0.01) |
|||||||||||||||
|
Lower of cost or market inventory adjustments (1) |
— |
0.2 |
— |
0.2 |
0.01 |
|||||||||||||||
|
Realized loss on economic hedges prior to the sale of the physical commodity (1) |
— |
0.1 |
— |
0.1 |
— |
|||||||||||||||
|
Acquisition, divestiture and restructuring activities (1) |
0.6 |
— |
1.3 |
1.9 |
0.05 |
|||||||||||||||
|
Net Economic Earnings (Loss) (Non-GAAP) |
$ |
146.3 |
$ |
2.5 |
$ |
(5.5) |
$ |
143.3 |
$ |
3.31 |
||||||||||
|
Diluted EPS (GAAP) |
$ |
3.36 |
$ |
0.06 |
$ |
(0.16) |
$ |
3.26 |
||||||||||||
|
Net Economic EPS (Non-GAAP) (2) |
$ |
3.38 |
$ |
0.06 |
$ |
(0.13) |
$ |
3.31 |
||||||||||||
|
(1) Amounts presented net of income taxes. Income taxes are calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
|
(2) Net economic earnings per share (EPS) is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
|
Note: EPS amounts by segment represent contributions to Spire's consolidated EPS. |
|
OPERATING MARGIN AND RECONCILIATION TO GAAP | ||||||||||||||||||||
|
(In Millions) |
Gas Utility |
Gas Marketing |
Other |
Eliminations |
Consolidated | |||||||||||||||
|
Three Months Ended March 31, 2016 | ||||||||||||||||||||
|
Operating revenues |
$ |
612.7 |
$ |
8.0 |
$ |
0.9 |
$ |
(12.3) |
$ |
609.3 |
||||||||||
|
Natural and propane gas expense |
273.0 |
4.0 |
— |
(12.0) |
265.0 |
|||||||||||||||
|
Gross receipts tax expense |
32.2 |
0.1 |
— |
— |
32.3 |
|||||||||||||||
|
Operating margin (non-GAAP) |
307.5 |
3.9 |
0.9 |
(0.3) |
312.0 |
|||||||||||||||
|
Depreciation and amortization |
33.8 |
— |
0.1 |
— |
33.9 |
|||||||||||||||
|
Other operating expenses |
106.3 |
1.4 |
3.0 |
(0.3) |
110.4 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
167.4 |
$ |
2.5 |
$ |
(2.2) |
$ |
— |
$ |
167.7 |
||||||||||
|
Three Months Ended March 31, 2015 | ||||||||||||||||||||
|
Operating revenues |
$ |
849.0 |
$ |
44.1 |
$ |
0.9 |
$ |
(16.6) |
$ |
877.4 |
||||||||||
|
Natural and propane gas expense |
499.1 |
42.0 |
0.1 |
(16.3) |
524.9 |
|||||||||||||||
|
Gross receipts tax expense |
44.1 |
— |
— |
— |
44.1 |
|||||||||||||||
|
Operating margin (non-GAAP) |
305.8 |
2.1 |
0.8 |
(0.3) |
308.4 |
|||||||||||||||
|
Depreciation and amortization |
32.2 |
0.1 |
0.2 |
— |
32.5 |
|||||||||||||||
|
Other operating expenses |
115.6 |
1.4 |
1.5 |
(0.3) |
118.2 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
158.0 |
$ |
0.6 |
$ |
(0.9) |
$ |
— |
$ |
157.7 |
||||||||||
|
Six Months Ended March 31, 2016 | ||||||||||||||||||||
|
Operating revenues |
$ |
1,012.2 |
$ |
20.8 |
$ |
1.7 |
$ |
(26.0) |
$ |
1,008.7 |
||||||||||
|
Natural and propane gas expense |
434.9 |
11.4 |
— |
(25.4) |
420.9 |
|||||||||||||||
|
Gross receipts tax expense |
49.7 |
0.1 |
— |
— |
49.8 |
|||||||||||||||
|
Operating margin (non-GAAP) |
527.6 |
9.3 |
1.7 |
(0.6) |
538.0 |
|||||||||||||||
|
Depreciation and amortization |
67.3 |
— |
0.3 |
— |
67.6 |
|||||||||||||||
|
Other operating expenses |
208.9 |
3.0 |
4.4 |
(0.6) |
215.7 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
251.4 |
$ |
6.3 |
$ |
(3.0) |
$ |
— |
$ |
254.7 |
||||||||||
|
Six Months Ended March 31, 2015 | ||||||||||||||||||||
|
Operating revenues |
$ |
1,431.4 |
$ |
106.3 |
$ |
1.8 |
$ |
(42.5) |
$ |
1,497.0 |
||||||||||
|
Natural and propane gas expense |
828.9 |
99.1 |
0.2 |
(42.0) |
886.2 |
|||||||||||||||
|
Gross receipts tax expense |
71.0 |
0.1 |
— |
— |
71.1 |
|||||||||||||||
|
Operating margin (non-GAAP) |
531.5 |
7.1 |
1.6 |
(0.5) |
539.7 |
|||||||||||||||
|
Depreciation and amortization |
64.2 |
0.2 |
0.3 |
— |
64.7 |
|||||||||||||||
|
Other operating expenses |
224.1 |
2.7 |
3.7 |
(0.5) |
230.0 |
|||||||||||||||
|
Operating income (loss) (GAAP) |
$ |
243.2 |
$ |
4.2 |
$ |
(2.4) |
$ |
— |
$ |
245.0 |
||||||||||
SOURCE Spire Inc.
Article Date
5/4/2016Projects & Assets
Direct Assets
Related Assets
Direct Projects
Spire STL Pipeline (subscriber access)Status: (subscriber access)
Spire Gas Storage West Expansion (subscriber access)
Status: (subscriber access)
Related Projects
Spire Gas Storage West Expansion (subscriber access)
Status: (subscriber access)
Parent Entities:
Spire, Inc
Spire STL Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Spire, Inc
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