Attached files
| file | filename |
|---|---|
| 8-K - 8-K - HAWAIIAN ELECTRIC CO INC | a12-11596_18k.htm |
HEI Exhibit 99
May 8, 2012
|
Contact: |
Shelee M.T. Kimura |
|
|
|
|
|
Manager, Investor Relations & |
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Telephone: (808) 543-7384 |
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Strategic Planning |
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E-mail: skimura@hei.com |
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HAWAIIAN ELECTRIC INDUSTRIES REPORTS FIRST QUARTER 2012 EARNINGS
& DECLARES DIVIDEND
EPS of $0.40 Reflects Improvement at Both Utility and Bank
Hawaiian Electric Company Invests Over $40 Million in Infrastructure
Loan Growth Continues at American Savings Bank
Board Declares Dividend of $0.31 Per Share
HONOLULU – Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported consolidated net income for common stock for the first quarter of 2012 of $38.3 million, or $0.40 diluted earnings per share (EPS), compared to $28.5 million, or $0.30 diluted EPS for the first quarter of 2011.
“HEI delivered solid results in the first quarter of 2012 and continued to reinvest earnings into our Hawaii-based businesses. Our three utilities, Hawaiian Electric, Maui Electric and Hawaii Electric Light Company, invested over $40 million -- one and a half times their earnings -- in infrastructure for a more modern and reliable electric grid that will be able to integrate significant amounts of renewable energy across our islands. As we announced last week, American Savings Bank increased its loan portfolio for the sixth consecutive quarter, adding more than $100 million in loans to customers over the last year,” said Constance H. Lau, HEI president and chief executive officer.
“Like many companies across Hawaii, our companies’ futures are linked to an economically and environmentally vibrant Hawaii. Reducing Hawaii’s dependence on oil is of paramount importance to our state and our customers,” said Lau. Since the end of 2010, over 90% of the increase in the typical Oahu customer’s bill was due to the increase in the cost of oil which went up over $40 per barrel. “That’s why we remain committed to encouraging the development of renewable energy in Hawaii and we are making progress with 12% of our customers’ energy usage provided by renewable energy,” said Lau.
Hawaiian Electric Industries, Inc. News Release
May 8, 2012
Hawaiian Electric Company Continues to Invest in Clean Energy and Reliability
Hawaiian Electric Company’s1 net income for the first quarter of 2012 was $27.3 million compared to $19.2 million in the first quarter of 2011. The main driver of the improvement was the recovery of costs for reliability and clean energy investments on Oahu. In 2011, the Oahu utility continued to ramp up its clean energy and reliability initiatives which resulted in spending in advance of revenues to recover the costs. This put pressure on first half 2011 earnings until the Oahu utility was able to start the recovery of these costs in July 2011.
Operations and maintenance (O&M) expenses2 (after-tax) were $1 million lower for the first quarter of 2012 compared to the first quarter of the prior year; however, management continues to estimate O&M expenses to be approximately 6% higher for the year compared to 2011 as work continues on strengthening the electric grid.
All three Hawaiian Electric utilities are now fully decoupled and no longer impacted by changes in sales volumes under Hawaii’s new regulatory framework. Hawaiian Electric on Oahu decoupled last year and Hawaii Electric Light Company on Hawaii Island and Maui Electric in Maui County just received Hawaii Public Utilities Commission approval to decouple in April and May 2012, respectively. The new decoupled regulatory model helps the utilities fulfill their critical role in carrying out the state’s energy policy to reduce Hawaii’s dependence on oil and to provide clean, secure, reliable power at stable costs for our customers.
American Savings Bank Continues Solid Performance
American Savings Bank (American) net income for the first quarter of 2012 was $15.9 million compared to $13.9 million in the first quarter of 2011. Net income improved by $2.0 million primarily due to lower provision for loan losses as consumer credit quality improved with Hawaii’s gradual economic recovery and higher noninterest income from higher gains on sales of very low fixed rate residential mortgages.
1 Hawaiian Electric Company, unless otherwise defined, refers to the three utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc.
2 Excludes demand side management (DSM) program costs. DSM program costs were $1 million in the first quarter of 2012 compared to $2 million in the first quarter of 2011. DSM program costs are recovered through a surcharge.
Hawaiian Electric Industries, Inc. News Release
May 8, 2012
Overall, American achieved strong profitability in the quarter with a return on average equity of 12.9% and a return on average assets of 1.29%.
Also refer to the American news release on Form 8-K filed on April 30, 2012.
Holding and Other Companies
The holding and other companies’ net losses were $4.9 million in the first quarter of 2012 compared to $4.6 million in the first quarter of 2011.
BOARD DECLARES QUARTERLY DIVIDEND
On May 8, 2012, the board of directors maintained HEI’s quarterly cash dividend of 31 cents per share, payable on June 13, 2012, to shareholders of record at the close of business on May 21, 2012 (ex-dividend date is May 17, 2012). The dividend is equivalent to an annual rate of $1.24 per share.
Dividends have been paid continuously since 1901. At the indicated annual dividend rate and the closing share price on May 7, 2012 of $26.51, HEI’s yield is 4.7%.
WEBCAST AND TELECONFERENCE
Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its first quarter 2012 earnings on Wednesday, May 9, 2012, at 7:00 a.m. Hawaii time (1:00 p.m. Eastern time). The event can be accessed through HEI’s website at www.hei.com or by dialing (866) 314-5050, passcode: 22527679 for the teleconference call. The presentation for the webcast will be on HEI’s website under the headings “Investor Relations,” “News & Events” and “Presentations & Webcasts.” HEI and Hawaiian Electric Company, Inc. (HECO) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information. Such disclosures will be included on HEI’s website in the Investor Relations section. Accordingly, investors should routinely monitor such portions of HEI’s website, in addition to following HEI’s, HECO’s and American’s press releases, Securities and Exchange Commission (SEC) filings and public conference calls and webcasts. The information on HEI’s website is not incorporated by reference in this document or in the Company’s SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms in
Hawaiian Electric Industries, Inc. News Release
May 8, 2012
order to review documents filed with and issued by the PUC. No information on the PUC website is incorporated by reference in this document or in the Company’s SEC filings.
An online replay of the webcast will be available at the same website beginning about two hours after the event. Replays of the teleconference call will also be available approximately two hours after the event through May 23, 2012, by dialing (888) 286-8010, passcode: 92305336.
HEI supplies power to over 400,000 customers or 95% of Hawaii’s population through its electric utilities, HECO, Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited and provides a wide array of banking and other financial services to consumers and businesses through American, one of Hawaii’s largest financial institutions.
FORWARD-LOOKING STATEMENTS
This release may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this release should be read in conjunction with the “Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2011 and HEI’s future periodic reports that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. Forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, HECO, American and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
###
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited) |
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|
Three months ended |
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|
|
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March 31, |
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(in thousands, except per share amounts) |
|
|
2012 |
|
2011 |
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Revenues |
|
|
|
|
|
| ||
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Electric utility |
|
|
$ |
749,610 |
|
$ |
645,335 |
|
|
Bank |
|
|
65,252 |
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65,313 |
| ||
|
Other |
|
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(2 |
) |
(15 |
) | ||
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Total revenues |
|
|
814,860 |
|
710,633 |
| ||
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Expenses |
|
|
|
|
|
| ||
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Electric utility |
|
|
692,356 |
|
600,127 |
| ||
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Bank |
|
|
42,340 |
|
43,559 |
| ||
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Other |
|
|
4,348 |
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3,572 |
| ||
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Total expenses |
|
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739,044 |
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647,258 |
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Operating income (loss) |
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|
|
|
|
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Electric utility |
|
|
57,254 |
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45,208 |
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Bank |
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|
22,912 |
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21,754 |
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Other |
|
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(4,350 |
) |
(3,587 |
) | ||
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Total operating income |
|
|
75,816 |
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63,375 |
| ||
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Interest expense–other than on deposit liabilities and other bank borrowings |
|
|
(18,539 |
) |
(20,140 |
) | ||
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Allowance for borrowed funds used during construction |
|
|
870 |
|
520 |
| ||
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Allowance for equity funds used during construction |
|
|
1,940 |
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1,244 |
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Income before income taxes |
|
|
60,087 |
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44,999 |
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Income taxes |
|
|
21,298 |
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16,064 |
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Net income |
|
|
38,789 |
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28,935 |
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Preferred stock dividends of subsidiaries |
|
|
473 |
|
473 |
| ||
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Net income for common stock |
|
|
$ |
38,316 |
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$ |
28,462 |
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Basic earnings per common share |
|
|
$ |
0.40 |
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$ |
0.30 |
|
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Diluted earnings per common share |
|
|
$ |
0.40 |
|
$ |
0.30 |
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Dividends per common share |
|
|
$ |
0.31 |
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$ |
0.31 |
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Weighted-average number of common shares outstanding |
|
|
96,167 |
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94,817 |
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Adjusted weighted-average shares |
|
|
96,561 |
|
95,182 |
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|
|
|
|
|
|
|
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Net income (loss) for common stock by segment |
|
|
|
|
|
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Electric utility |
|
|
$ |
27,300 |
|
$ |
19,189 |
|
|
Bank |
|
|
15,877 |
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13,851 |
| ||
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Other |
|
|
(4,861 |
) |
(4,578 |
) | ||
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Net income for common stock |
|
|
$ |
38,316 |
|
$ |
28,462 |
|
|
Comprehensive income attributable to common shareholders |
|
|
$ |
38,627 |
|
$ |
26,624 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
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March 31, |
|
December 31, |
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(dollars in thousands) |
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2012 |
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2011 |
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Assets |
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|
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Cash and cash equivalents |
|
$ |
236,346 |
|
$ |
270,265 |
|
|
Accounts receivable and unbilled revenues, net |
|
306,760 |
|
344,322 |
| ||
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Available-for-sale investment and mortgage-related securities |
|
631,063 |
|
624,331 |
| ||
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Investment in stock of Federal Home Loan Bank of Seattle |
|
97,764 |
|
97,764 |
| ||
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Loans receivable held for investment, net |
|
3,672,401 |
|
3,642,818 |
| ||
|
Loans held for sale, at lower of cost or fair value |
|
14,657 |
|
9,601 |
| ||
|
Property, plant and equipment, net of accumulated depreciation of $2,061,649 in 2012 and $2,049,821 in 2011 |
|
3,375,654 |
|
3,334,501 |
| ||
|
Regulatory assets |
|
677,674 |
|
669,389 |
| ||
|
Other |
|
538,443 |
|
517,550 |
| ||
|
Goodwill |
|
82,190 |
|
82,190 |
| ||
|
Total assets |
|
$ |
9,632,952 |
|
$ |
9,592,731 |
|
|
Liabilities and shareholders’ equity |
|
|
|
|
| ||
|
Liabilities |
|
|
|
|
| ||
|
Accounts payable |
|
$ |
183,733 |
|
$ |
216,176 |
|
|
Interest and dividends payable |
|
23,778 |
|
25,041 |
| ||
|
Deposit liabilities |
|
4,125,204 |
|
4,070,032 |
| ||
|
Short-term borrowings—other than bank |
|
156,288 |
|
68,821 |
| ||
|
Other bank borrowings |
|
232,843 |
|
233,229 |
| ||
|
Long-term debt, net—other than bank |
|
1,282,602 |
|
1,340,070 |
| ||
|
Deferred income taxes |
|
375,510 |
|
354,051 |
| ||
|
Regulatory liabilities |
|
316,560 |
|
315,466 |
| ||
|
Contributions in aid of construction |
|
378,039 |
|
356,203 |
| ||
|
Retirement benefits liability |
|
513,187 |
|
530,410 |
| ||
|
Other |
|
456,817 |
|
516,990 |
| ||
|
Total liabilities |
|
8,044,561 |
|
8,026,489 |
| ||
|
|
|
|
|
|
| ||
|
Preferred stock of subsidiaries - not subject to mandatory redemption |
|
34,293 |
|
34,293 |
| ||
|
|
|
|
|
|
| ||
|
Shareholders’ equity |
|
|
|
|
| ||
|
Preferred stock, no par value, authorized 10,000,000 shares; issued: none |
|
- |
|
- |
| ||
|
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 96,541,143 shares in 2012 and 96,038,328 shares in 2011 |
|
1,362,880 |
|
1,349,446 |
| ||
|
Retained earnings |
|
210,044 |
|
201,640 |
| ||
|
Accumulated other comprehensive loss, net of tax benefits |
|
(18,826 |
) |
(19,137 |
) | ||
|
Total shareholders’ equity |
|
1,554,098 |
|
1,531,949 |
| ||
|
Total liabilities and shareholders’ equity |
|
$ |
9,632,952 |
|
$ |
9,592,731 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
Three months ended March 31 |
|
2012 |
|
2011 |
| ||
|
(in thousands) |
|
|
|
|
| ||
|
Cash flows from operating activities |
|
|
|
|
| ||
|
Net income |
|
$ |
38,789 |
|
$ |
28,935 |
|
|
Adjustments to reconcile net income to net cash used in operating activities |
|
|
|
|
| ||
|
Depreciation of property, plant and equipment |
|
37,911 |
|
37,708 |
| ||
|
Other amortization |
|
1,419 |
|
2,354 |
| ||
|
Provision for loan losses |
|
3,546 |
|
4,550 |
| ||
|
Loans receivable originated and purchased, held for sale |
|
(89,087 |
) |
(35,015 |
) | ||
|
Proceeds from sale of loans receivable, held for sale |
|
85,252 |
|
43,048 |
| ||
|
Change in deferred income taxes |
|
21,260 |
|
16,687 |
| ||
|
Change in excess tax benefits from share-based payment arrangements |
|
(44 |
) |
(22 |
) | ||
|
Allowance for equity funds used during construction |
|
(1,940 |
) |
(1,244 |
) | ||
|
Change in cash overdraft |
|
- |
|
(2,688 |
) | ||
|
Changes in assets and liabilities |
|
|
|
|
| ||
|
Decrease (increase) in accounts receivable and unbilled revenues, net |
|
37,562 |
|
(19,880 |
) | ||
|
Increase in fuel oil stock |
|
(14,458 |
) |
(3,513 |
) | ||
|
Decrease in accounts, interest and dividends payable |
|
(36,991 |
) |
(40,016 |
) | ||
|
Change in prepaid and accrued income taxes and utility revenue taxes |
|
(41,126 |
) |
(1,594 |
) | ||
|
Contributions to defined benefit pension and other postretirement benefit plans |
|
(26,815 |
) |
(31,200 |
) | ||
|
Change in other assets and liabilities |
|
(30,994 |
) |
(11,344 |
) | ||
|
Net cash used in operating activities |
|
(15,716) |
|
(13,234) |
| ||
|
Cash flows from investing activities |
|
|
|
|
| ||
|
Available-for-sale investment and mortgage-related securities purchased |
|
(53,931 |
) |
(109,307 |
) | ||
|
Principal repayments on available-for-sale investment and mortgage-related securities |
|
46,355 |
|
114,529 |
| ||
|
Net increase in loans held for investment |
|
(34,212 |
) |
(70,269 |
) | ||
|
Proceeds from sale of real estate acquired in settlement of loans |
|
3,371 |
|
1,253 |
| ||
|
Capital expenditures |
|
(65,300 |
) |
(38,491 |
) | ||
|
Contributions in aid of construction |
|
22,855 |
|
5,749 |
| ||
|
Other |
|
- |
|
145 |
| ||
|
Net cash used in investing activities |
|
(80,862 |
) |
(96,391 |
) | ||
|
Cash flows from financing activities |
|
|
|
|
| ||
|
Net increase in deposit liabilities |
|
55,172 |
|
59,883 |
| ||
|
Net increase (decrease) in short-term borrowings with original maturities of three months or less |
|
87,467 |
|
(24,923 |
) | ||
|
Net increase (decrease) in retail repurchase agreements |
|
(379 |
) |
7,368 |
| ||
|
Proceeds from issuance of long-term debt |
|
- |
|
125,000 |
| ||
|
Repayment of long-term debt |
|
(57,500 |
) |
(50,000 |
) | ||
|
Change in excess tax benefits from share-based payment arrangements |
|
44 |
|
22 |
| ||
|
Net proceeds from issuance of common stock |
|
5,940 |
|
5,674 |
| ||
|
Common stock dividends |
|
(23,855 |
) |
(23,593 |
) | ||
|
Preferred stock dividends of subsidiaries |
|
(473 |
) |
(473 |
) | ||
|
Other |
|
(3,757 |
) |
(3,730 |
) | ||
|
Net cash provided by financing activities |
|
62,659 |
|
95,228 |
| ||
|
Net decrease in cash and cash equivalents |
|
(33,919 |
) |
(14,397 |
) | ||
|
Cash and cash equivalents, beginning of period |
|
270,265 |
|
330,651 |
| ||
|
Cash and cash equivalents, end of period |
|
$ |
236,346 |
|
$ |
316,254 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
Three months ended March 31 |
|
2012 |
|
2011 |
| ||
|
(dollars in thousands, except per barrel amounts) |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Operating revenues |
|
$ |
747,938 |
|
$ |
644,301 |
|
|
Operating expenses |
|
|
|
|
| ||
|
Fuel oil |
|
327,839 |
|
260,860 |
| ||
|
Purchased power |
|
164,789 |
|
147,958 |
| ||
|
Other operation |
|
61,849 |
|
65,531 |
| ||
|
Maintenance |
|
30,038 |
|
29,196 |
| ||
|
Depreciation |
|
36,482 |
|
36,432 |
| ||
|
Taxes, other than income taxes |
|
70,995 |
|
59,995 |
| ||
|
Income taxes |
|
17,365 |
|
11,610 |
| ||
|
Total operating expenses |
|
709,357 |
|
611,582 |
| ||
|
Operating income |
|
38,581 |
|
32,719 |
| ||
|
Other income |
|
|
|
|
| ||
|
Allowance for equity funds used during construction |
|
1,940 |
|
1,244 |
| ||
|
Other, net |
|
1,265 |
|
910 |
| ||
|
Total other income |
|
3,205 |
|
2,154 |
| ||
|
Interest and other charges |
|
|
|
|
| ||
|
Interest on long-term debt |
|
14,383 |
|
14,383 |
| ||
|
Amortization of net bond premium and expense |
|
745 |
|
783 |
| ||
|
Other interest charges (credits) |
|
(271 |
) |
539 |
| ||
|
Allowance for borrowed funds used during construction |
|
(870 |
) |
(520 |
) | ||
|
Total interest and other charges |
|
13,987 |
|
15,185 |
| ||
|
Net income |
|
27,799 |
|
19,688 |
| ||
|
Preferred stock dividends of subsidiaries |
|
229 |
|
229 |
| ||
|
Net income attributable to HECO |
|
27,570 |
|
19,459 |
| ||
|
Preferred stock dividends of HECO |
|
270 |
|
270 |
| ||
|
Net income for common stock |
|
$ |
27,300 |
|
$ |
19,189 |
|
|
Comprehensive income attributable to common shareholder |
|
$ |
27,377 |
|
$ |
19,216 |
|
|
OTHER ELECTRIC UTILITY INFORMATION |
|
|
|
|
| ||
|
Kilowatthour sales (millions) |
|
|
|
|
| ||
|
HECO |
|
1,696 |
|
1,785 |
| ||
|
HELCO |
|
271 |
|
273 |
| ||
|
MECO |
|
284 |
|
292 |
| ||
|
|
|
2,251 |
|
2,350 |
| ||
|
Wet-bulb temperature (Oahu average; degrees Fahrenheit) |
|
67.2 |
|
68.1 |
| ||
|
Cooling degree days (Oahu) |
|
861 |
|
920 |
| ||
|
Average fuel oil cost per barrel |
|
$134.37 |
|
$101.03 |
| ||
|
Customer accounts (end of period) |
|
|
|
|
| ||
|
HECO |
|
297,640 |
|
296,533 |
| ||
|
HELCO |
|
81,404 |
|
80,758 |
| ||
|
MECO |
|
68,363 |
|
67,860 |
| ||
|
|
|
447,407 |
|
445,151 |
| ||
|
|
|
Twelve months ended |
| ||||
|
|
|
March 31 |
| ||||
|
Return on average common equity (%) (simple average) |
|
2012 |
|
2011 |
| ||
|
HECO |
|
7.69 |
|
5.47 |
| ||
|
HELCO |
|
9.56 |
|
7.37 |
| ||
|
MECO |
|
6.40 |
|
5.68 |
| ||
|
HECO Consolidated |
|
7.85 |
|
5.87 |
| ||
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2011 and the consolidated financial statements and the notes thereto in HECO’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
March 31, |
|
December 31, |
|
|
(dollars in thousands, except share data) |
|
2012 |
|
2011 |
|
|
Assets |
|
|
|
|
|
|
Utility plant, at cost |
|
|
|
|
|
|
Land |
$ |
51,504 |
$ |
51,514 |
|
|
Plant and equipment |
|
5,095,080 |
|
5,052,027 |
|
|
Less accumulated depreciation |
|
(1,980,964 |
) |
(1,966,894 |
) |
|
Construction in progress |
|
150,667 |
|
138,838 |
|
|
Net utility plant |
|
3,316,287 |
|
3,275,485 |
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
5,850 |
|
48,806 |
|
|
Customer accounts receivable, net |
|
158,879 |
|
183,328 |
|
|
Accrued unbilled revenues, net |
|
126,642 |
|
137,826 |
|
|
Other accounts receivable, net |
|
8,071 |
|
8,623 |
|
|
Fuel oil stock, at average cost |
|
186,006 |
|
171,548 |
|
|
Materials and supplies, at average cost |
|
46,749 |
|
43,188 |
|
|
Prepayments and other |
|
31,210 |
|
34,602 |
|
|
Regulatory assets |
|
26,364 |
|
20,283 |
|
|
Total current assets |
|
589,771 |
|
648,204 |
|
|
Other long-term assets |
|
|
|
|
|
|
Regulatory assets |
|
651,310 |
|
649,106 |
|
|
Unamortized debt expense |
|
12,477 |
|
12,786 |
|
|
Other |
|
86,219 |
|
86,361 |
|
|
Total other long-term assets |
|
750,006 |
|
748,253 |
|
|
Total assets |
$ |
4,656,064 |
$ |
4,671,942 |
|
|
Capitalization and liabilities |
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
|
Common stock, $6 2/3 par value, authorized 50,000,000 shares; outstanding 14,233,723 shares in 2012 and 2011 |
$ |
94,911 |
$ |
94,911 |
|
|
Premium on capital stock |
|
426,921 |
|
426,921 |
|
|
Retained earnings |
|
893,323 |
|
884,284 |
|
|
Accumulated other comprehensive income (loss), net of income taxes |
|
45 |
|
(32 |
) |
|
Common stock equity |
|
1,415,200 |
|
1,406,084 |
|
|
Cumulative preferred stock – not subject to mandatory redemption |
|
34,293 |
|
34,293 |
|
|
Long-term debt, net |
|
1,000,602 |
|
1,000,570 |
|
|
Total capitalization |
|
2,450,095 |
|
2,440,947 |
|
|
Current liabilities |
|
|
|
|
|
|
Short-term borrowings – nonaffiliates |
|
84,942 |
|
- |
|
|
Current portion of long-term debt |
|
- |
|
57,500 |
|
|
Accounts payable |
|
158,691 |
|
188,580 |
|
|
Interest and preferred dividends payable |
|
18,835 |
|
19,483 |
|
|
Taxes accrued |
|
183,273 |
|
224,768 |
|
|
Other |
|
58,947 |
|
69,353 |
|
|
Total current liabilities |
|
504,688 |
|
559,684 |
|
|
Deferred credits and other liabilities |
|
|
|
|
|
|
Deferred income taxes |
|
357,974 |
|
337,863 |
|
|
Regulatory liabilities |
|
316,560 |
|
315,466 |
|
|
Unamortized tax credits |
|
61,941 |
|
60,614 |
|
|
Retirement benefits liability |
|
478,517 |
|
495,121 |
|
|
Other |
|
108,250 |
|
106,044 |
|
|
Total deferred credits and other liabilities |
|
1,323,242 |
|
1,315,108 |
|
|
Contributions in aid of construction |
|
378,039 |
|
356,203 |
|
|
Total capitalization and liabilities |
$ |
4,656,064 |
$ |
4,671,942 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2011 and the consolidated financial statements and the notes thereto in HECO’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
Three months ended March 31 |
|
2012 |
|
2011 |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Net income |
$ |
27,799 |
$ |
19,688 |
|
|
Adjustments to reconcile net income to net cash used in operating activities |
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
36,482 |
|
36,432 |
|
|
Other amortization |
|
1,561 |
|
2,288 |
|
|
Change in deferred income taxes |
|
20,061 |
|
13,521 |
|
|
Change in tax credits, net |
|
1,356 |
|
755 |
|
|
Allowance for equity funds used during construction |
|
(1,940 |
) |
(1,244 |
) |
|
Change in cash overdraft |
|
- |
|
(2,688 |
) |
|
Changes in assets and liabilities |
|
|
|
|
|
|
Decrease (increase) in accounts receivable |
|
25,001 |
|
(11,271 |
) |
|
Decrease (increase) in accrued unbilled revenues |
|
11,184 |
|
(9,402 |
) |
|
Increase in fuel oil stock |
|
(14,458 |
) |
(3,513 |
) |
|
Increase in materials and supplies |
|
(3,561 |
) |
(1,065 |
) |
|
Increase in regulatory assets |
|
(13,948 |
) |
(7,872 |
) |
|
Decrease in accounts payable |
|
(33,174 |
) |
(42,123 |
) |
|
Change in prepaid and accrued income taxes and utility revenue taxes |
|
(44,561 |
) |
240 |
|
|
Contributions to defined benefit pension and other postretirement benefit plans |
|
(26,183 |
) |
(30,693 |
) |
|
Change in other assets and liabilities |
|
3,444 |
|
9,315 |
|
|
Net cash used in operating activities |
|
(10,937 |
) |
(27,632 |
) |
|
Cash flows from investing activities |
|
|
|
|
|
|
Capital expenditures |
|
(63,436 |
) |
(37,556 |
) |
|
Contributions in aid of construction |
|
22,855 |
|
5,749 |
|
|
Net cash used in investing activities |
|
(40,581 |
) |
(31,807 |
) |
|
Cash flows from financing activities |
|
|
|
|
|
|
Common stock dividends |
|
(18,261 |
) |
(17,640 |
) |
|
Preferred stock dividends of HECO and subsidiaries |
|
(499 |
) |
(499 |
) |
|
Repayment of long-term debt |
|
(57,500 |
) |
- |
|
|
Net increase in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less |
|
84,942 |
|
- |
|
|
Other |
|
(120 |
) |
(4 |
) |
|
Net cash provided by (used in) financing activities |
|
8,562 |
|
(18,143 |
) |
|
Net decrease in cash and cash equivalents |
|
(42,956 |
) |
(77,582 |
) |
|
Cash and cash equivalents, beginning of the period |
|
48,806 |
|
122,936 |
|
|
Cash and cash equivalents, end of period |
$ |
5,850 |
$ |
45,354 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2011 and the consolidated financial statements and the notes thereto in HECO’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
American Savings Bank, F.S.B.
STATEMENTS OF INCOME DATA
(Unaudited)
|
|
|
Three months ended |
| |||||||
|
|
|
March 31, |
|
December 31, |
|
March 31, |
| |||
|
(in thousands) |
|
2012 |
|
2011 |
|
2011 |
| |||
|
Interest income |
|
|
|
|
|
|
| |||
|
Interest and fees on loans |
|
$ |
44,888 |
|
$ |
46,500 |
|
$ |
46,097 |
|
|
Interest on investment and mortgage-related securities |
|
3,805 |
|
3,352 |
|
3,769 |
| |||
|
Total interest income |
|
48,693 |
|
49,852 |
|
49,866 |
| |||
|
Interest expense |
|
|
|
|
|
|
| |||
|
Interest on deposit liabilities |
|
1,779 |
|
1,837 |
|
2,593 |
| |||
|
Interest on other borrowings |
|
1,261 |
|
1,362 |
|
1,367 |
| |||
|
Total interest expense |
|
3,040 |
|
3,199 |
|
3,960 |
| |||
|
Net interest income |
|
45,653 |
|
46,653 |
|
45,906 |
| |||
|
Provision for loan losses |
|
3,546 |
|
4,082 |
|
4,550 |
| |||
|
Net interest income after provision for loan losses |
|
42,107 |
|
42,571 |
|
41,356 |
| |||
|
Noninterest income |
|
|
|
|
|
|
| |||
|
Fees from other financial services |
|
7,337 |
|
7,476 |
|
6,946 |
| |||
|
Fee income on deposit liabilities |
|
4,278 |
|
4,486 |
|
4,449 |
| |||
|
Fee income on other financial products |
|
1,549 |
|
1,364 |
|
1,673 |
| |||
|
Other income |
|
3,395 |
|
3,498 |
|
2,379 |
| |||
|
Total noninterest income |
|
16,559 |
|
16,824 |
|
15,447 |
| |||
|
Noninterest expense |
|
|
|
|
|
|
| |||
|
Compensation and employee benefits |
|
18,646 |
|
17,820 |
|
17,505 |
| |||
|
Occupancy |
|
4,225 |
|
4,313 |
|
4,240 |
| |||
|
Data processing |
|
2,111 |
|
1,676 |
|
1,970 |
| |||
|
Services |
|
1,783 |
|
1,990 |
|
1,771 |
| |||
|
Equipment |
|
1,730 |
|
1,762 |
|
1,657 |
| |||
|
Other expense |
|
6,707 |
|
8,997 |
|
7,933 |
| |||
|
Total noninterest expense |
|
35,202 |
|
36,558 |
|
35,076 |
| |||
|
Income before income taxes |
|
23,464 |
|
22,837 |
|
21,727 |
| |||
|
Income taxes |
|
7,587 |
|
7,497 |
|
7,876 |
| |||
|
Net income |
|
$ |
15,877 |
|
$ |
15,340 |
|
$ |
13,851 |
|
|
Comprehensive net income |
|
$ |
15,899 |
|
$ |
7,400 |
|
$ |
11,586 |
|
|
|
|
|
|
|
|
|
| |||
|
OTHER BANK INFORMATION (%) |
|
|
|
|
|
|
| |||
|
Return on average assets |
|
1.29 |
|
1.26 |
|
1.15 |
| |||
|
Return on average equity |
|
12.87 |
|
12.24 |
|
11.20 |
| |||
|
Return on average tangible common equity |
|
15.44 |
|
14.65 |
|
13.44 |
| |||
|
Net interest margin |
|
4.04 |
|
4.16 |
|
4.16 |
| |||
|
Net charge-offs to average loans outstanding (annualized) |
|
0.28 |
|
0.48 |
|
0.49 |
| |||
|
Efficiency ratio |
|
56 |
|
57 |
|
57 |
| |||
|
As of period end |
|
|
|
|
|
|
| |||
|
Nonperforming assets to loans outstanding and real estate owned ** |
|
2.02 |
|
2.01 |
|
1.82 |
| |||
|
Allowance for loan losses to loans outstanding |
|
1.05 |
|
1.03 |
|
1.14 |
| |||
|
Tier-1 leverage ratio ** |
|
9.1 |
|
9.0 |
|
9.1 |
| |||
|
Total risk-based capital ratio ** |
|
12.9 |
|
12.9 |
|
13.5 |
| |||
|
Tangible common equity to total assets |
|
8.46 |
|
8.42 |
|
8.57 |
| |||
** Regulatory basis
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
American Savings Bank, F.S.B.
BALANCE SHEETS DATA
(Unaudited)
|
|
|
March 31, |
|
December 31, |
| ||
|
(in thousands) |
|
2012 |
|
2011 |
| ||
|
|
|
|
|
|
| ||
|
Assets |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
229,635 |
|
$ |
219,678 |
|
|
Available-for-sale investment and mortgage-related securities |
|
631,063 |
|
624,331 |
| ||
|
Investment in stock of Federal Home Loan Bank of Seattle |
|
97,764 |
|
97,764 |
| ||
|
Loans receivable held for investment, net |
|
3,672,401 |
|
3,642,818 |
| ||
|
Loans held for sale, at lower of cost or fair value |
|
14,657 |
|
9,601 |
| ||
|
Other |
|
235,407 |
|
233,592 |
| ||
|
Goodwill |
|
82,190 |
|
82,190 |
| ||
|
Total assets |
|
$ |
4,963,117 |
|
$ |
4,909,974 |
|
|
|
|
|
|
|
| ||
|
Liabilities and shareholder’s equity |
|
|
|
|
| ||
|
Deposit liabilities–noninterest-bearing |
|
$ |
1,054,512 |
|
$ |
993,828 |
|
|
Deposit liabilities–interest-bearing |
|
3,070,692 |
|
3,076,204 |
| ||
|
Other borrowings |
|
232,843 |
|
233,229 |
| ||
|
Other |
|
110,117 |
|
118,078 |
| ||
|
Total liabilities |
|
4,468,164 |
|
4,421,339 |
| ||
|
|
|
|
|
|
| ||
|
Common stock |
|
332,299 |
|
331,880 |
| ||
|
Retained earnings |
|
172,003 |
|
166,126 |
| ||
|
Accumulated other comprehensive loss, net of tax benefits |
|
(9,349) |
|
(9,371 |
) | ||
|
Total shareholder’s equity |
|
494,953 |
|
488,635 |
| ||
|
Total liabilities and shareholder’s equity |
|
$ |
4,963,117 |
|
$ |
4,909,974 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI’s Quarterly Report on SEC Form 10-Q for the quarter ended March 31, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.