ST. LOUIS, May 8, 2014 /PRNewswire/ -- Ameren
Corporation (NYSE: AEE) today announced first quarter 2014 net
income from continuing operations of $97
million, or 40 cents per
share, compared to first quarter 2013 net income from continuing
operations of $54 million, or
22 cents per share.
The year-over-year increase in first quarter 2014 earnings from
continuing operations reflected much colder winter temperatures,
increased revenues for electric transmission service and lower
interest expense. The colder temperatures drove higher electric and
natural gas sales volumes, while the increased electric
transmission revenues under the Federal Energy Regulatory
Commission's (FERC) forward-looking formula ratemaking reflected
2014 infrastructure investments. The earnings comparison also
benefited from the substantial elimination of business and
administrative costs previously incurred in support of the divested
merchant generation business. In addition, Illinois electric delivery service earnings
recognized under formula ratemaking increased, reflecting 2014
infrastructure investments and a higher allowed return on equity
due to increased 30-year U.S. Treasury bond yields.
"Our strong first quarter results reflected unusually cold
winter temperatures, earnings on infrastructure investments made to
meet our customers' energy needs and expectations and disciplined
cost management," said Warner L.
Baxter, president and chief executive officer of Ameren
Corporation. "We continue to execute on a key component of our
strategy — investing in and operating our utilities in a manner
consistent with existing regulatory frameworks. This was a key
driver of our strong first quarter earnings results."
Guidance for Earnings from Continuing Operations
Ameren now expects 2014 earnings to be in a range of
$2.30 to $2.50 per share, an increase
from its prior range of $2.25 to
$2.45 per share. This guidance increase reflects
colder-than-normal first quarter 2014 temperatures.
Ameren continues to expect earnings per share to grow at a 7% to
10% compound annual rate through 2018 using 2013 results from
continuing operations as the base. This expected growth is driven
primarily by infrastructure investments in FERC-regulated electric
transmission and Illinois-regulated energy delivery
services.
Ameren's earnings guidance assumes normal temperatures for the
remaining three quarters of 2014 and is subject to the effects of,
among other things, changes in 30-year U.S. Treasury bond yields;
regulatory decisions and legislative actions; energy center
operations; energy, economic, capital and credit market conditions;
severe storms; unusual or otherwise unexpected gains or losses; and
other risks and uncertainties outlined, or referred to, in the
Forward-looking Statements section of this press release.
Ameren Missouri Segment Results
Ameren Missouri segment first quarter 2014 earnings were
$47 million, compared to first
quarter 2013 earnings of $40 million.
The increase in earnings reflected much colder winter temperatures,
which drove higher electric and natural gas sales volumes, a
decrease in interest expense and disciplined cost management. These
positive factors were partially offset by higher depreciation
expense and a higher effective income tax rate.
Ameren Illinois Segment Results
Ameren Illinois segment first quarter 2014 earnings were
$53 million, compared to first
quarter 2013 earnings of $31 million.
The increase in earnings reflected much colder winter temperatures,
which drove higher electric and natural gas sales volumes. The
earnings comparison also benefited from increased electric delivery
service earnings recognized under formula ratemaking. In addition,
earnings were boosted by increased FERC electric transmission
revenues and increased Illinois
natural gas delivery service rates partially offset by higher gas
delivery service operations and maintenance expenses.
Parent Company and Other
The parent company and other loss from continuing operations was
$3 million for the first quarter of
2014, compared to a loss of $17
million for the first quarter of 2013. This reduced loss was
largely due to the substantial elimination of business and
administrative costs previously incurred in support of the divested
merchant generation business, as well as increased earnings from
Ameren Transmission Company of Illinois reflecting 2014 infrastructure
investments.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at
9 a.m. Central Time on Thursday, May 8, to discuss first quarter 2014
earnings, earnings guidance and other matters. Investors, the news
media and the public may listen to a live Internet broadcast of the
call at Ameren.com by clicking on "Q1 2014 Ameren Corporation
Earnings Conference Call," followed by the appropriate audio link.
An accompanying slide presentation will be available on Ameren's
website. This presentation will be posted in the "Investors"
section of the website under "Webcasts & Presentations." The
analyst call will be available for replay on the Internet for one
year. In addition, a telephone playback of the conference call will
be available beginning at approximately noon
Central Time from May 8 through May
15 by dialing U.S. 877.660.6853 or international
201.612.7415, and entering ID number 13581498.
About Ameren
St. Louis-based Ameren
Corporation powers the quality of life for 2.4 million electric
customers and more than 900,000 natural gas customers in a
64,000-square-mile area through its Ameren Missouri and Ameren
Illinois rate-regulated utility subsidiaries. Ameren Illinois
provides electric and natural gas delivery service while Ameren
Missouri provides vertically integrated electric service, with
generating capacity of 10,300 megawatts, and natural gas delivery
service. Ameren Transmission Company of Illinois develops and operates regional
electric transmission assets. Follow us on Twitter @AmerenCorp. For
more information, visit Ameren.com.
Forward-looking Statements
Statements in this release not based on historical facts are
considered "forward-looking" and, accordingly, involve risks and
uncertainties that could cause actual results to differ materially
from those discussed. Although such forward-looking statements have
been made in good faith and are based on reasonable assumptions,
there is no assurance that the expected results will be achieved.
These statements include (without limitation) statements as to
future expectations, beliefs, plans, strategies, objectives,
events, conditions, and financial performance. In connection with
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995, we are providing this cautionary statement to
identify important factors that could cause actual results to
differ materially from those anticipated. The following factors, in
addition to those discussed under Risk Factors in Ameren's Form
10-K for the year ended December 31,
2013 and elsewhere in this release and in our other filings
with the Securities and Exchange Commission, could cause actual
results to differ materially from management expectations suggested
in such forward-looking statements:
- regulatory, judicial, or legislative actions, including changes
in regulatory policies and ratemaking determinations, such as the
complaint cases filed by Noranda Aluminum, Inc. and 37 residential
customers with the Missouri Public Service Commission in
February 2014; the outcome of Ameren
Illinois' appeals of the Illinois Commerce Commission's electric
and natural gas rate orders issued in December 2013; Ameren Illinois' request for
rehearing of a July 2012 FERC order
regarding the inclusion of acquisition premiums in its transmission
rates; the complaint case filed with FERC seeking a reduction in
the allowed return on common equity under the Midcontinent
Independent System Operator tariff; and future regulatory,
judicial, or legislative actions that seek to change regulatory
recovery mechanisms;
- the effect of Ameren Illinois participating in a
performance-based formula ratemaking process under the Illinois
Energy Infrastructure Modernization Act (IEIMA), including the
direct relationship between Ameren Illinois' return on common
equity and the 30-year United States Treasury bond yields, the
related financial commitments required by the IEIMA, and the
resulting uncertain impact on the financial condition, results of
operations and liquidity of Ameren Illinois;
- the effects of Ameren Illinois' expected participation,
beginning in 2015, in the regulatory framework provided by the
state of Illinois' Natural Gas
Consumer, Safety and Reliability Act, which allows for the use of a
rider to recover costs of certain natural gas infrastructure
investments made between rate cases;
- the effects of increased competition in the future due to,
among other things, deregulation of certain aspects of our business
at either the state or federal levels and the implementation of
deregulation;
- changes in laws and other governmental actions, including
monetary, fiscal, and tax policies;
- the effects on demand for our services resulting from
technological advances, including advances in energy efficiency and
distributed generation sources, which generate electricity at the
site of consumption;
- increasing capital expenditure and operating expense
requirements and our ability to timely recover these costs;
- the cost and availability of fuel such as coal, natural gas,
and enriched uranium used to produce electricity; the cost and
availability of purchased power and natural gas for distribution;
and the level and volatility of future market prices for such
commodities, including our ability to recover the costs for such
commodities;
- the effectiveness of our risk management strategies and the use
of financial and derivative instruments;
- business and economic conditions, including their impact on
interest rates, bad debt expense, and demand for our products;
- disruptions of the capital markets, deterioration in our credit
metrics, or other events that may make our access to necessary
capital, including short-term credit and liquidity, impossible,
more difficult, or more costly;
- our assessment of our liquidity;
- the impact of the adoption of new accounting guidance and the
application of appropriate technical accounting rules and
guidance;
- actions of credit rating agencies and the effects of such
actions;
- the impact of weather conditions and other natural phenomena on
us and our customers, including the impact of system outages;
- generation, transmission, and distribution asset construction,
installation, performance, and cost recovery;
- the effects of our increasing investment in electric
transmission projects and uncertainty as to whether we will achieve
our expected returns in a timely fashion, if at all;
- the extent to which Ameren Missouri prevails in its claims
against insurers in connection with its Taum Sauk pumped-storage
hydroelectric energy center incident;
- the extent to which Ameren Missouri is permitted by its
regulators to recover in rates the investments it made in
connection with additional nuclear generation at its Callaway
Energy Center;
- operation of Ameren Missouri's Callaway Energy Center,
including planned and unplanned outages, and decommissioning
costs;
- the effects of strategic initiatives, including mergers,
acquisitions and divestitures, and any related tax
implications;
- the impact of current environmental regulations on utilities
and power generating companies and new, more stringent or changing
requirements, including those related to greenhouse gases, other
emissions and discharges, cooling water intake structures, coal
combustion residuals, and energy efficiency, that are enacted over
time and that could limit or terminate the operation of certain of
our energy centers, increase our costs, result in an impairment of
our assets, cause us to sell our assets, reduce our customers'
demand for electricity or natural gas, or otherwise have a negative
financial effect;
- the impact of complying with renewable energy portfolio
requirements in Missouri;
- labor disputes, workforce reductions, future wage and employee
benefits costs, including changes in discount rates and returns on
benefit plan assets;
- the inability of our counterparties to meet their obligations
with respect to contracts, credit agreements, and financial
instruments;
- the cost and availability of transmission capacity for the
energy generated by Ameren Missouri's energy centers or required to
satisfy Ameren Missouri's energy sales;
- the inability of Dynegy Inc. and Illinois Power Holdings, LLC
(IPH) to satisfy their indemnity and other obligations to Ameren in
connection with the divestiture of New Ameren Energy Resources
Generating Company, LLC to IPH;
- legal and administrative proceedings; and
- acts of sabotage, war, terrorism, cyber attacks or
intentionally disruptive acts.
Given these uncertainties, undue reliance should not be placed
on these forward-looking statements. Except to the extent required
by the federal securities laws, we undertake no obligation to
update or revise publicly any forward-looking statements to reflect
new information or future events.
AMEREN CORPORATION
(AEE)
|
CONSOLIDATED
STATEMENT OF INCOME (LOSS)
|
(Unaudited, in
millions, except per share amounts)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2014
|
|
2013
|
|
|
|
|
Operating
Revenues:
|
|
|
|
Electric
|
$
1,106
|
|
$
1,088
|
Gas
|
488
|
|
387
|
Total operating
revenues
|
1,594
|
|
1,475
|
|
|
|
|
Operating
Expenses:
|
|
|
|
Fuel
|
204
|
|
213
|
Purchased
power
|
112
|
|
151
|
Gas purchased for
resale
|
304
|
|
230
|
Other operations and
maintenance
|
420
|
|
399
|
Depreciation and
amortization
|
181
|
|
175
|
Taxes other than
income taxes
|
127
|
|
122
|
Total operating
expenses
|
1,348
|
|
1,290
|
Operating
Income
|
246
|
|
185
|
|
|
|
|
Other Income and
Expenses:
|
|
|
|
Miscellaneous
income
|
18
|
|
15
|
Miscellaneous
expense
|
9
|
|
8
|
Total other
income
|
9
|
|
7
|
|
|
|
|
Interest
Charges
|
92
|
|
101
|
|
|
|
|
Income Before
Income Taxes
|
163
|
|
91
|
|
|
|
|
Income
Taxes
|
64
|
|
35
|
|
|
|
|
Income from
Continuing Operations
|
99
|
|
56
|
|
|
|
|
Loss from
Discontinued Operations, Net of Taxes
|
(1)
|
|
(199)
|
|
|
|
|
Net Income
(Loss)
|
98
|
|
(143)
|
|
|
|
|
Less: Net
Income from Continuing Operations Attributable to Noncontrolling
Interests
|
2
|
|
2
|
|
|
|
|
Net Income (Loss)
Attributable to Ameren Corporation:
|
|
|
|
Continuing
Operations
|
97
|
|
54
|
Discontinued
Operations
|
(1)
|
|
(199)
|
|
|
|
|
Net Income (Loss)
Attributable to Ameren Corporation
|
$
96
|
|
$
(145)
|
|
|
|
|
Earnings (Loss)
per Common Share – Basic:
|
|
|
|
Continuing
Operations
|
$
0.40
|
|
$
0.22
|
Discontinued
Operations
|
-
|
|
(0.82)
|
Earnings (Loss)
per Common Share – Basic
|
$
0.40
|
|
$
(0.60)
|
|
|
|
|
Average Common
Shares Outstanding – Basic
|
242.6
|
|
242.6
|
|
|
AMEREN CORPORATION
(AEE)
|
CONSOLIDATED
BALANCE SHEET
|
(Unaudited, in
millions)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
|
|
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
26
|
|
$
30
|
Accounts receivable -
trade (less allowance for doubtful accounts)
|
553
|
|
404
|
Unbilled
revenue
|
236
|
|
304
|
Miscellaneous
accounts and notes receivable
|
201
|
|
196
|
Materials and
supplies
|
424
|
|
526
|
Current regulatory
assets
|
220
|
|
156
|
Current accumulated
deferred income taxes, net
|
95
|
|
106
|
Other current
assets
|
70
|
|
85
|
Assets of
discontinued operations
|
15
|
|
165
|
Total current
assets
|
1,840
|
|
1,972
|
Property and
Plant, Net
|
16,425
|
|
16,205
|
Investments and
Other Assets:
|
|
|
|
Nuclear
decommissioning trust fund
|
503
|
|
494
|
Goodwill
|
411
|
|
411
|
Intangible
assets
|
17
|
|
22
|
Regulatory
assets
|
1,251
|
|
1,240
|
Other
assets
|
719
|
|
698
|
Total investments and
other assets
|
2,901
|
|
2,865
|
TOTAL
ASSETS
|
$
21,166
|
|
$
21,042
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
648
|
|
$
534
|
Short-term
debt
|
700
|
|
368
|
Accounts and wages
payable
|
559
|
|
806
|
Taxes
accrued
|
89
|
|
55
|
Interest
accrued
|
104
|
|
86
|
Current regulatory
liabilities
|
248
|
|
216
|
Other current
liabilities
|
344
|
|
351
|
Liabilities of
discontinued operations
|
33
|
|
45
|
Total current
liabilities
|
2,725
|
|
2,461
|
Long-term Debt,
Net
|
5,226
|
|
5,504
|
Deferred Credits
and Other Liabilities:
|
|
|
|
Accumulated deferred
income taxes, net
|
3,340
|
|
3,250
|
Accumulated deferred
investment tax credits
|
62
|
|
63
|
Regulatory
liabilities
|
1,751
|
|
1,705
|
Asset retirement
obligations
|
373
|
|
369
|
Pension and other
postretirement benefits
|
480
|
|
466
|
Other deferred
credits and liabilities
|
554
|
|
538
|
Total deferred
credits and other liabilities
|
6,560
|
|
6,391
|
Ameren Corporation
Stockholders' Equity:
|
|
|
|
Common
stock
|
2
|
|
2
|
Other paid-in
capital, principally premium on common stock
|
5,602
|
|
5,632
|
Retained
earnings
|
906
|
|
907
|
Accumulated other
comprehensive income
|
3
|
|
3
|
Total Ameren
Corporation stockholders' equity
|
6,513
|
|
6,544
|
Noncontrolling
Interests
|
142
|
|
142
|
Total
equity
|
6,655
|
|
6,686
|
TOTAL LIABILITIES
AND EQUITY
|
$
21,166
|
|
$
21,042
|
|
|
AMEREN CORPORATION
(AEE)
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
(Unaudited, in
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2014
|
|
2013
|
Cash Flows From
Operating Activities:
|
|
|
|
Net income
(loss)
|
$
98
|
|
$
(143)
|
Loss from
discontinued operations, net of taxes
|
1
|
|
199
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
176
|
|
166
|
Amortization of
nuclear fuel
|
24
|
|
20
|
Amortization of debt
issuance costs and premium/discounts
|
5
|
|
6
|
Deferred income taxes
and investment tax credits, net
|
84
|
|
40
|
Allowance for equity
funds used during construction
|
(7)
|
|
(8)
|
Stock-based
compensation costs
|
9
|
|
9
|
Other
|
(1)
|
|
(3)
|
Changes in assets and
liabilities
|
(150)
|
|
56
|
Net cash provided by
operating activities - continuing operations
|
239
|
|
342
|
Net cash provided by
operating activities - discontinued operations
|
-
|
|
37
|
Net cash provided
by operating activities
|
239
|
|
379
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Capital
expenditures
|
(442)
|
|
(275)
|
Nuclear fuel
expenditures
|
(10)
|
|
(11)
|
Purchases of
securities - nuclear decommissioning trust fund
|
(186)
|
|
(35)
|
Sales and maturities
of securities - nuclear decommissioning trust fund
|
182
|
|
32
|
Proceeds from note
receivable - Illinois Power Marketing Company
|
56
|
|
-
|
Contributions to note
receivable - Illinois Power Marketing Company
|
(65)
|
|
-
|
Other
|
-
|
|
(2)
|
Net cash used in
investing activities - continuing operations
|
(465)
|
|
(291)
|
Net cash provided by
(used in) investing activities - discontinued operations
|
152
|
|
(12)
|
Net cash used in
investing activities
|
(313)
|
|
(303)
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
Dividends on common
stock
|
(97)
|
|
(97)
|
Dividends paid to
noncontrolling interest holders
|
(2)
|
|
(2)
|
Short-term debt,
net
|
332
|
|
-
|
Redemptions of
long-term debt
|
(163)
|
|
-
|
Net cash provided by
(used in) financing activities - continuing operations
|
70
|
|
(99)
|
Net cash used in
financing activities - discontinued operations
|
-
|
|
-
|
Net cash provided
by (used in) financing activities
|
70
|
|
(99)
|
|
|
|
|
Net change in cash
and cash equivalents
|
(4)
|
|
(23)
|
Cash and cash
equivalents at beginning of year
|
30
|
|
209
|
Cash and cash
equivalents at end of period
|
26
|
|
186
|
|
|
|
|
Less cash and cash
equivalents at end of period - discontinued
operations
|
-
|
|
25
|
Cash and cash
equivalents at end of period - continuing
operations
|
$
26
|
|
$
161
|
|
|
AMEREN CORPORATION
(AEE)
|
OPERATING
STATISTICS FROM CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
Electric Sales -
kilowatthours (in millions):
|
|
|
|
|
Ameren
Missouri
|
|
|
|
|
|
Residential
|
|
4,182
|
|
3,802
|
|
Commercial
|
|
3,662
|
|
3,518
|
|
Industrial
|
|
2,087
|
|
2,079
|
|
Other
|
|
33
|
|
34
|
|
Native load
subtotal
|
|
9,964
|
|
9,433
|
|
Off-system and
wholesale
|
|
1,453
|
|
1,488
|
|
Subtotal
|
|
11,417
|
|
10,921
|
|
|
|
|
|
|
Ameren
Illinois
|
|
|
|
|
|
Residential
|
|
|
|
|
|
Power supply and
delivery service
|
|
1,306
|
|
1,974
|
|
Delivery service
only
|
|
2,198
|
|
1,133
|
|
Commercial
|
|
|
|
|
|
Power supply and
delivery service
|
|
693
|
|
696
|
|
Delivery service
only
|
|
2,293
|
|
2,107
|
|
Industrial
|
|
|
|
|
|
Power supply and
delivery service
|
|
447
|
|
428
|
|
Delivery service
only
|
|
2,588
|
|
2,669
|
|
Other
|
|
144
|
|
139
|
|
Native load
subtotal
|
|
9,669
|
|
9,146
|
|
|
|
|
|
|
Eliminate affiliate
sales
|
|
-
|
|
(41)
|
|
Ameren Total from
Continuing Operations
|
|
21,086
|
|
20,026
|
|
|
|
|
|
|
Electric Revenues
(in millions):
|
|
|
|
|
Ameren
Missouri
|
|
|
|
|
|
Residential
|
|
$
343
|
|
$
332
|
|
Commercial
|
|
246
|
|
244
|
|
Industrial
|
|
97
|
|
99
|
|
Other
|
|
27
|
|
14
|
|
Native load
subtotal
|
|
713
|
|
689
|
|
Off-system and
wholesale
|
|
36
|
|
43
|
|
Subtotal
|
|
$
749
|
|
$
732
|
|
|
|
|
|
|
Ameren
Illinois
|
|
|
|
|
|
Residential
|
|
|
|
|
|
Power supply and
delivery service
|
|
$
122
|
|
$
165
|
|
Delivery service
only
|
|
77
|
|
42
|
|
Commercial
|
|
|
|
|
|
Power supply and
delivery service
|
|
61
|
|
54
|
|
Delivery service
only
|
|
40
|
|
34
|
|
Industrial
|
|
|
|
|
|
Power supply and
delivery service
|
|
27
|
|
16
|
|
Delivery service
only
|
|
10
|
|
11
|
|
Other
|
|
16
|
|
38
|
|
Native load
subtotal
|
|
353
|
|
360
|
|
|
|
|
|
|
Eliminate affiliate
revenues and other
|
|
4
|
|
(4)
|
|
Ameren Total from
Continuing Operations
|
|
$
1,106
|
|
$
1,088
|
|
|
|
|
|
|
Electric
Generation - megawatthours (in millions):
|
|
|
|
|
|
Ameren
Missouri
|
|
11.7
|
|
11.0
|
|
|
|
|
|
|
Fuel Cost per
kilowatthour (cents):
|
|
|
|
|
|
Ameren
Missouri
|
|
1.943
|
|
1.731
|
|
|
|
|
|
|
Gas Sales -
decatherms (in thousands):
|
|
|
|
|
|
Ameren
Missouri
|
|
8,523
|
|
7,661
|
|
Ameren
Illinois
|
|
77,944
|
|
65,479
|
|
Ameren
Total
|
|
86,467
|
|
73,140
|
|
|
|
|
|
|
Net Income (Loss)
by Segment (in millions):
|
|
|
|
|
|
Ameren
Missouri
|
|
$
47
|
|
$
40
|
|
Ameren
Illinois
|
|
53
|
|
31
|
|
Other
|
|
(3)
|
|
(17)
|
|
Ameren
Total
|
|
$
97
|
|
$
54
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
Common
Stock:
|
|
|
|
|
|
Shares outstanding
(in millions)
|
|
242.6
|
|
242.6
|
|
Book value per
share
|
|
$
26.82
|
|
$
26.97
|
|
|
|
|
|
|
Capitalization
Ratios:
|
|
|
|
|
|
Common
equity
|
|
49.3%
|
|
50.1%
|
|
Preferred
stock
|
|
1.1%
|
|
1.1%
|
|
Debt, net of
cash
|
|
49.6%
|
|
48.8%
|
SOURCE Ameren Corporation