ST. LOUIS, Aug. 5, 2016 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced second quarter 2016 GAAP and core (non-GAAP) net income attributable to common shareholders of $147 million, or 61 cents per share, compared to second quarter 2015 GAAP net income attributable to common shareholders of $150 million, or 61 cents per share. Excluding certain items discussed below, Ameren recorded second quarter 2015 core (non-GAAP) net income of $141 million, or 58 cents per share.

GAAP earnings for the second quarter of 2015 included results from discontinued operations and a loss provision for discontinuing the pursuit of a construction and operating license (COL) for a second Callaway nuclear unit that were excluded from core earnings. The year-over-year second quarter GAAP and core earnings comparisons reflect higher 2016 retail electric sales volumes, excluding those to Noranda Aluminum, driven by warmer early summer temperatures. Earnings in 2016 also benefited from increased electric transmission and electric and natural gas distribution infrastructure investments made by Ameren Transmission Company of Illinois (ATXI) and Ameren Illinois under modern, constructive regulatory frameworks. These positive factors were partially offset by expenses for a 2016 scheduled nuclear refueling and maintenance outage at Ameren Missouri's Callaway Energy Center and lower electric sales volumes to Noranda, historically Ameren Missouri's largest customer who suspended operations in early 2016.

"Our team continued to successfully execute all elements of our strategy. That performance drove solid second quarter earnings results, which also benefited from warmer-than-normal early summer temperatures," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "As a result of these solid earnings, I am pleased to report that we have raised our 2016 guidance to a range of $2.45 to $2.65 per share, up from our prior range of $2.40 to $2.60 per share."

Ameren recorded GAAP and core net income attributable to common shareholders for the six months ended June 30, 2016, of $252 million, or $1.04 per share, compared to GAAP net income attributable to common shareholders of $258 million, or $1.06 per share, for the same period in 2015. Excluding certain items discussed below, Ameren recorded core earnings of $249 million, or $1.03 per share, for the six months ended June 30, 2015.

GAAP earnings for the first six months of 2015 included results from discontinued operations and a provision for a Callaway COL that were excluded from core earnings. The year-over-year six-month GAAP and core earnings comparisons reflect increased 2016 electric transmission and electric and natural gas distribution infrastructure investments made by ATXI and Ameren Illinois. These comparisons also benefited from a decrease in the 2016 effective income tax rate due to the recognition of tax benefits associated with share-based compensation and from increased Illinois natural gas distribution service rates. These positive factors were partially offset by 2016 nuclear refueling and maintenance outage expenses at the Callaway Energy Center and lower electric sales volumes to Noranda. The earnings comparisons were also unfavorably affected by impacts of the 2015 Missouri energy efficiency plan.

As reflected in the table below, the following items were excluded from core earnings for the three- and six-month periods ended June 30, 2016 and 2015, as applicable:

  • Results from discontinued operations, which increased 2015 GAAP net income for both the three- and six-month periods by $52 million primarily reflecting recognition of a tax benefit related to the resolution of an uncertain tax position.
  • A provision for discontinuing pursuit of a COL for a second nuclear unit at Ameren Missouri's Callaway Energy Center, which decreased 2015 net income from continuing operations for both the three- and six- month periods by $43 million.

A reconciliation of GAAP to core earnings, including per share amounts, is as follows:


(In millions, except per share amounts)


Three Months Ended

Six Months Ended


June 30,

June 30,


2016

2015

2016

2015

GAAP Earnings / Diluted EPS

$

147


$

0.61


$

150


$

0.61


$

252


$

1.04


$

258


$

1.06


Results from discontinued operations









  Operating income before income tax







(3)


(0.01)


  Income tax benefit



(52)


(0.21)




(49)


(0.20)


Income from discontinued operations,  net of taxes



(52)


(0.21)




(52)


(0.21)











Provision for Callaway COL









  Provision before income tax



69


0.29




69


0.29


  Income tax expense



(26)


(0.11)




(26)


(0.11)


 Provision, net of taxes



43


0.18




43


0.18


Core Earnings / Diluted EPS

$

147


$

0.61


$

141


$

0.58


$

252


$

1.04


$

249


$

1.03


Earnings Guidance

Ameren now expects its 2016 earnings to be in a range of $2.45 to $2.65 per diluted share, an increase from its prior range of $2.40 to $2.60 per diluted share. This updated guidance reflects year-to-date results and continues to include an estimated 15 cents per share reduction related to the expected temporary net effect of significantly lower electric sales volumes to Noranda.

Earnings guidance for 2016 assumes normal temperatures for the last six months of this year and is subject to the effects of, among other things: 30-year U.S. Treasury bond yields; regulatory decisions and legislative actions; energy center and energy distribution 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 second quarter 2016 GAAP and core earnings were $92 million, compared to second quarter 2015 GAAP and core earnings of $61 million and $104 million, respectively. GAAP earnings in 2015 included a provision for a Callaway COL that was excluded from core earnings. The year-over-year GAAP and core earnings comparisons reflect 2016 nuclear refueling and maintenance outage expenses at the Callaway Energy Center, lower electric sales volumes to Noranda, and the impacts of the 2015 energy efficiency plan. These unfavorable factors were partially offset by higher retail electric sales volumes in 2016, excluding those to Noranda, driven by warmer early summer temperatures, as well as lower other operations and maintenance expenses.

Ameren Illinois Segment Results

Ameren Illinois segment second quarter 2016 GAAP and core earnings were $45 million, compared to second quarter 2015 GAAP and core earnings of $31 million. The earnings comparisons benefited from increased investments in transmission and electric distribution infrastructure, increased natural gas distribution service rates, and higher residential and commercial electric sales volumes driven by warmer early summer temperatures.

Other Results from Continuing Operations, including ATXI and Parent

Other GAAP and core earnings, including those of ATXI and the parent company, for the second quarter of 2016 were $10 million, compared to second quarter 2015 GAAP and core earnings of $6 million. The higher earnings reflect an increase in ATXI earnings to $14 million from $7 million as a result of increased investments in electric transmission infrastructure, partially offset by increased parent company interest charges resulting from the November 2015 issuance of $700 million of senior notes that replaced lower-cost, short-term debt.

Analyst Conference Call

Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, Aug. 5, to discuss second quarter 2016 earnings, earnings guidance, and regulatory 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 "Q2 2016 Ameren Corporation Earnings Conference Call," followed by the appropriate audio link. An accompanying slide presentation will be available on Ameren's website. The conference call and this presentation will be accessible in the "Investors" section of the website under "Webcasts & Presentations." The analyst call will be available for replay on Ameren's website for one year. In addition, a telephone replay of the conference call will be available beginning at approximately noon Central Time from Aug. 6 through Aug. 12 by dialing U.S. and Canada 877.660.6853 or international 201.612.7415, and entering ID number 13641806.

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 distribution and transmission service as well as natural gas distribution service while Ameren Missouri provides vertically integrated electric service, with generating capacity of over 10,200 megawatts, and natural gas distribution service. Ameren Transmission Company of Illinois develops regional electric transmission projects. Follow the company on Twitter @AmerenCorp. For more information, visit Ameren.com.

Use of Non-GAAP Financial Measures

In this release, Ameren has presented core earnings, which is a non-GAAP measure and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP results has been included in this release. Generally, core earnings or losses include earnings or losses attributable to Ameren common shareholders and exclude income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as the Callaway COL provision. Ameren uses core earnings internally for financial planning and for analysis of performance. Ameren also uses core earnings as the primary performance measurement when communicating with analysts and investors regarding our earnings results and outlook, as the company believes that core earnings allow the company to more accurately compare its ongoing performance across periods. In providing core earnings guidance, there could be differences between core earnings and earnings prepared in accordance with GAAP as a result of our treatment of certain items, such as those described above. Ameren is unable to estimate the impact, if any, on future GAAP earnings of such items.

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, 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, that may result from the complaint cases filed with the Federal Energy Regulatory Commission seeking a reduction in the allowed base return on common equity under the Midcontinent Independent System Operator tariff, Ameren Missouri's July 2016 electric rate case filing, Ameren Missouri's appeal of a Missouri Public Service Commission (MoPSC) order that clarified the method applied to determine an input used to calculate its performance incentive under the Missouri Energy Efficiency Investment Act (MEEIA) 2013 plan, Ameren Illinois' April 2016 annual electric distribution service formula rate update filing, and future regulatory, judicial, or legislative actions that 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 30-year United States Treasury bond yields, the related financial commitments required by the IEIMA, and the resulting uncertain impact on Ameren Illinois' results of operations, financial position, and liquidity;
  • our ability to align our overall spending, both operating and capital, with regulatory frameworks established by our regulators in an attempt to earn our allowed return on equity;
  • the effects of changes in laws and other governmental actions, including monetary, fiscal, tax, and energy policies;
  • the effects of changes in federal, state, or local tax laws, regulations, interpretations, or rates and any challenges to the tax positions we have taken;
  • the effects on demand for our services resulting from technological advances, including advances in customer energy efficiency and distributed generation sources, which generate electricity at the site of consumption and are becoming more cost-competitive;
  • the effectiveness of Ameren Missouri's customer energy efficiency programs and the related amount of any revenues and performance incentive earned under the 2013 MEEIA plan, the 2016 MEEIA plan, and any future MEEIA plan;
  • the timing of increasing capital expenditure and operating expense requirements and our ability to recover these costs in a timely manner;
  • 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 and our customers' tolerance for the related rate increases;
  • disruptions in the delivery of fuel, failure of our fuel suppliers to provide adequate quantities or quality of fuel, or lack of adequate inventories of fuel, including ultra-low-sulfur coal used for Ameren Missouri's compliance with environmental regulations;
  • the effectiveness of our risk management strategies and our use of financial and derivative instruments;
  • the ability to obtain sufficient insurance, including insurance relating to Ameren Missouri's Callaway Energy Center and insurance for cyber attacks or, in the absence of insurance, the ability to recover uninsured losses from our customers;
  • business and economic conditions, including their impact on key customers, interest rates, collection of our receivable balances, and demand for our products;
  • Noranda Aluminum, Inc.'s (Noranda) bankruptcy filing, the idling of operations at its aluminum smelter located in southeast Missouri, and the resulting impacts to Ameren Missouri's ability to recover its revenue requirement until rates are adjusted by the MoPSC in Ameren Missouri's July 2016 electric rate case to accurately reflect Noranda's actual sales volumes;
  • disruptions of the capital markets, deterioration in our credit metrics, or other events that may have an adverse effect on the cost or availability of capital, including short-term credit and liquidity;
  • the impact of adopting new accounting guidance and the application of appropriate accounting rules and guidance;
  • the 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;
  • the construction, installation, performance, and cost recovery of generation, transmission, and distribution assets;
  • the effects of breakdowns or failures of equipment in the operation of natural gas distribution and transmission systems and storage facilities, such as leaks, explosions and mechanical problems, and compliance with natural gas safety regulations;
  • the effects of our increasing investment in electric transmission projects, our ability to obtain all of the necessary approvals to complete the projects, and the uncertainty as to whether we will achieve our expected returns in a timely manner;
  • 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 and new, more stringent, or changing requirements, including those related to carbon dioxide, 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 or investment requirements, 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, work force reductions, future wage and employee benefits costs, including changes in discount rates, mortality tables, 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;
  • legal and administrative proceedings;
  • the impact of cyber attacks, which could result in the loss of operational control of energy centers and electric and natural gas transmission and distribution systems and/or the loss of data, such as utility customer data and account information; and
  • acts of sabotage, war, terrorism, or other intentionally disruptive acts.

New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. 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

(Unaudited, in millions, except per share amounts)



Three Months Ended
June 30,


Six Months Ended
June 30,


2016


2015


2016


2015

Operating Revenues:








Electric

$

1,274



$

1,250



$

2,376



$

2,393


Gas

153



151



485



564


Total operating revenues

1,427



1,401



2,861



2,957


Operating Expenses:








Fuel

166



205



369



411


Purchased power

135



101



273



240


Gas purchased for resale

41



46



193



282


Other operations and maintenance

435



427



835



828


Provision for Callaway construction and operating license



69





69


Depreciation and amortization

210



200



417



393


Taxes other than income taxes

115



116



229



241


Total operating expenses

1,102



1,164



2,316



2,464


Operating Income

325



237



545



493


Other Income and Expense:








Miscellaneous income

16



16



36



35


Miscellaneous expense

6



6



13



17


Total other income

10



10



23



18


Interest Charges

95



89



190



177


Income Before Income Taxes

240



158



378



334


Income Taxes

92



59



123



125


Income from Continuing Operations

148



99



255



209


Income from Discontinued Operations, Net of Taxes



52





52


Net Income

148



151



255



261


Less: Net Income from Continuing Operations Attributable to Noncontrolling Interests

1



1



3



3


Net Income Attributable to Ameren Common Shareholders:








Continuing Operations

147



98



252



206


Discontinued Operations



52





52


Net Income Attributable to Ameren Common Shareholders

$

147



$

150



$

252



$

258


Earnings per Common Share – Basic and Diluted:








Continuing Operations

$

0.61



$

0.40



$

1.04



$

0.85


Discontinued Operations



0.21





0.21


Earnings per Common Share – Basic and Diluted

$

0.61



$

0.61



$

1.04



$

1.06










Average Common Shares Outstanding – Basic

242.6



242.6



242.6



242.6


 


AMEREN CORPORATION (AEE)

CONSOLIDATED BALANCE SHEET

(Unaudited, in millions)



June 30,
2016


December 31,
2015

ASSETS




Current Assets:




Cash and cash equivalents

$

13



$

292


Accounts receivable - trade (less allowance for doubtful accounts)

445



388


Unbilled revenue

328



239


Miscellaneous accounts receivable

65



98


Materials and supplies

515



538


Current regulatory assets

146



260


Other current assets

68



88


Assets of discontinued operations

14



14


Total current assets

1,594



1,917


Property and Plant, Net

19,324



18,799


Investments and Other Assets:




Nuclear decommissioning trust fund

582



556


Goodwill

411



411


Regulatory assets

1,330



1,382


Other assets

552



575


Total investments and other assets

2,875



2,924


TOTAL ASSETS

$

23,793



$

23,640


LIABILITIES AND EQUITY




Current Liabilities:




Current maturities of long-term debt

$

431



$

395


Short-term debt

778



301


Accounts and wages payable

499



777


Taxes accrued

124



43


Interest accrued

102



89


Customer deposits

100



100


Current regulatory liabilities

99



80


Other current liabilities

270



279


Liabilities of discontinued operations

27



29


Total current liabilities

2,430



2,093


Long-term Debt, Net

6,605



6,880


Deferred Credits and Other Liabilities:




Accumulated deferred income taxes, net

4,028



3,885


Accumulated deferred investment tax credits

57



60


Regulatory liabilities

1,953



1,905


Asset retirement obligations

629



618


Pension and other postretirement benefits

537



580


Other deferred credits and liabilities

490



531


Total deferred credits and other liabilities

7,694



7,579


Ameren Corporation Shareholders' Equity:




Common stock

2



2


Other paid-in capital, principally premium on common stock

5,545



5,616


Retained earnings

1,376



1,331


Accumulated other comprehensive loss

(1)



(3)


Total Ameren Corporation shareholders' equity

6,922



6,946


Noncontrolling Interests

142



142


Total equity

7,064



7,088


TOTAL LIABILITIES AND EQUITY

$

23,793



$

23,640


 


AMEREN CORPORATION (AEE)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited, in millions)



Six Months Ended June 30,


2016


2015

Cash Flows From Operating Activities:




Net income

$

255



$

261


(Income) from discontinued operations, net of taxes



(52)


Adjustments to reconcile net income to net cash provided by operating activities:




Provision for Callaway construction and operating license



69


Depreciation and amortization

419



387


Amortization of nuclear fuel

38



47


Amortization of debt issuance costs and premium/discounts

11



11


Deferred income taxes and investment tax credits, net

134



116


Allowance for equity funds used during construction

(13)



(11)


Share-based compensation costs

12



14


Other

(7)



(13)


Changes in assets and liabilities

(84)



(47)


Net cash provided by operating activities – continuing operations

765



782


Net cash used in operating activities – discontinued operations

(2)



(1)


Net cash provided by operating activities

763



781


Cash Flows From Investing Activities:




Capital expenditures

(1,000)



(846)


Nuclear fuel expenditures

(24)



(28)


Purchases of securities – nuclear decommissioning trust fund

(201)



(117)


Sales and maturities of securities – nuclear decommissioning trust fund

192



110


Proceeds from note receivable – Illinois Power Marketing Company



10


Contributions to note receivable – Illinois Power Marketing Company



(7)


Other

(2)



3


Net cash used in investing activities – continuing operations

(1,035)



(875)


Net cash used in investing activities – discontinued operations




Net cash used in investing activities

(1,035)



(875)


Cash Flows From Financing Activities:




Dividends on common stock

(206)



(199)


Dividends paid to noncontrolling interest holders

(3)



(3)


Short-term debt, net

477



172


Maturities of long-term debt

(389)



(114)


Issuances of long-term debt

149



249


Employee payroll taxes related to share-based payments

(32)



(12)


Capital issuance costs

(1)



(2)


Other

(2)




Net cash provided by (used in) financing activities – continuing operations

(7)



91


Net change in cash and cash equivalents

(279)



(3)


Cash and cash equivalents at beginning of year

292



5


Cash and cash equivalents at end of period

$

13



$

2


 

AMEREN CORPORATION (AEE)

OPERATING STATISTICS FROM CONTINUING OPERATIONS



Three Months Ended


Six Months Ended


June 30,


June 30,


2016


2015


2016


2015

Electric Sales - kilowatthours (in millions):








Ameren Missouri








Residential

2,899



2,694



6,376



6,599


Commercial

3,610



3,556



7,079



7,145


Industrial

1,142



2,096



2,444



4,100


Off-system

1,373



2,113



3,264



3,837


Other

27



26



62



61


Ameren Missouri total

9,051



10,485



19,225



21,742


Ameren Illinois








Residential








Power supply and delivery service

972



1,024



2,196



2,443


Delivery service only

1,568



1,463



3,248



3,300


Commercial








Power supply and delivery service

657



651



1,374



1,396


Delivery service only

2,344



2,340



4,462



4,521


Industrial








Power supply and delivery service

166



430



295



903


Delivery service only

2,710



2,521



5,412



5,120


Other

119



121



263



267


Ameren Illinois total

8,536



8,550



17,250



17,950


Eliminate affiliate sales

(79)



(88)



(277)



(96)


Ameren Total from Continuing Operations

17,508



18,947



36,198



39,596


Electric Revenues (in millions):








Ameren Missouri








Residential

$

356



$

348



$

654



$

685


Commercial

326



328



566



576


Industrial

82



123



150



219


Off-system

61



45



119



89


Other

19



15



49



32


Ameren Missouri total

$

844



$

859



$

1,538



$

1,601


Ameren Illinois








Residential








Power supply and delivery service

$

105



$

107



$

225



$

218


Delivery service only

102



85



188



163


Commercial








Power supply and delivery service

56



53



117



107


Delivery service only

64



56



116



102


Industrial








Power supply and delivery service

7



19



13



39


Delivery service only

16



13



31



28


Other

61



53



113



119


Ameren Illinois total

$

411



$

386



$

803



$

776


ATXI








Transmission services

$

29



$

17



$

61



$

37


Eliminate affiliate revenues

(10)



(12)



(26)



(21)


Ameren Total from Continuing Operations

$

1,274



$

1,250



$

2,376



$

2,393


 

AMEREN CORPORATION (AEE)

OPERATING STATISTICS FROM CONTINUING OPERATIONS



Three Months Ended


Six Months Ended


June 30,


June 30,


2016


2015


2016


2015

Electric Generation - kilowatthours (in millions):







Ameren Missouri

8,689



10,409



18,550



21,352


Fuel Cost per kilowatthour (in cents):








Ameren Missouri

1.973



1.783



1.904



1.839


Gas Sales - dekatherms (in thousands):








Ameren Missouri

3,001



2,876



10,225



10,820


Ameren Illinois

29,846



27,269



91,552



99,058


Ameren Total

32,847



30,145



101,777



109,878





June 30,
2016




December 31,
2015

Common Stock:








Shares outstanding (in millions)



242.6





242.6


Book value per share



$

28.53





$

28.63


Capitalization Ratios:








Common equity



47

%




48

%

Preferred stock



1

%




1

%

Debt, net of cash



52

%




51

%















 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ameren-nyse-aee-announces-second-quarter-2016-results-300309791.html

SOURCE Ameren Corporation

Copyright 2016 PR Newswire

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