HONOLULU, Feb. 18, 2014 /PRNewswire/ --
Selected 2013 Highlights:
- Core net income1of $161.5 million in 2013 vs $163.1 million in 2012; Reported net
income of $161.5 million in 2013
vs $138.7 million in 2012
- Core EPS1 of $1.62 in 2013 vs $1.68 in 2012; Reported EPS of
$1.62 in 2013 vs $1.42 in 2012
- ROE of 9.7% -- 8.0% utility; 11.4% bank
- Successfully accessed the capital markets to fund
ongoing utility investments in local infrastructure to modernize
the electric grid
- Executed $180 million equity
forward sale agreement in March
2013
- Refinanced $216 million of debt
at lower interest rates
- Continued investments by local shareholders: Of the
shareholders who disclose residence, over a third are Hawaii based, representing at least 25% of
total HEI ownership
- Continued 113-year history of continuous dividends:
Through HEI's dividend reinvestment program, shareholders invested
$42 million in HEI by reinvesting
their dividends and buying more stock
- Continued legacy of delivering value for customers and
Hawaii:
- Record 18% of electricity used by Hawaiian Electric customers
was from renewable sources
- Surpassed Hawaii's 2015
renewable portfolio standard of 15%
- Avoided-oil equivalent of 2.9 million barrels which would have
cost our state approximately $350
million2 in imported oil in 2013
- Led the nation by far in the integration of customer-sited
solar: 10% of Oahu customers using
rooftop solar by the end of 2013
- Bank continued clean energy financing for rooftop solar
vendors
- Integrated two new lower-cost utility-scale solar projects on
Oahu
- Reached milestone to deactivate Honolulu Power Plant
(January 2014)
- Leveraging collaborative partnerships and over $20 million in grant funding to seek clean energy
solutions for Hawaii
- Utility proposals to the Hawaii Public Utilities Commission for
259 MW renewables priced ~30% lower than current
rates3
- Utility operating expenses managed to inflationary increases
while expanding strategic initiatives
- Bank provided over $2 billion in
new credit and refinancings to customers
- Contributed over ten thousand volunteer hours and over
$2 million of charitable
contributions to community organizations
Hawaiian Electric Industries, Inc.(NYSE - HE) (HEI) today
reported 2013 year-end consolidated net income for common stock of
$161.5 million, or diluted earnings
per share (EPS) of $1.62. For
the fourth quarter of 2013, consolidated net income for common
stock was $39.0 million, or
$0.39 EPS. The comparison to
prior year results is shown on a core earnings basis1 in
the table below. Core earnings exclude a $24 million after-tax write-down in the fourth
quarter of 2012 related to a settlement agreement between Hawaiian
Electric Company4 and the Hawaii Consumer Advocate which
was subsequently approved by the Hawaii Public Utilities
Commission.
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RECONCILIATION OF
GAAP TO NON-GAAP MEASURES
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($ in millions,
except per share amounts)
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Three
months
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Years
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|
ended December
31
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ended December
31
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2013
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2012
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2013
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2012
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HEI CONSOLIDATED
NET INCOME
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GAAP (as
reported)
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$
39.0
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$
13.8
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$
161.5
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$
138.7
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Excluding special
items
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-
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24.4
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-
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24.4
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Non-GAAP
(core)
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$
39.0
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$
38.3
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$
161.5
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$
163.1
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HEI CONSOLIDATED
DILUTED EARNINGS PER SHARE
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GAAP (as
reported)
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$
0.39
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$
0.14
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$
1.62
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$
1.42
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Excluding special
items
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-
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|
0.25
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-
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0.25
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Non-GAAP
(core)
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$
0.39
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|
$
0.39
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$
1.62
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$
1.68
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Note: Columns may not
foot due to rounding
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"While earnings per share were down 4% due to earnings declines
at both American Savings Bank and Hawaiian Electric Company, we
continued to deliver a competitive 9.7% return on equity for the
year. HEI's unique combination of companies continues to
provide us with the financial resources to efficiently invest in
our Hawaii-based companies," said
Constance Lau, HEI president and
chief executive officer. "Our utility continued to invest in
the modernization of our electric grid to ensure reliability and
safety for our customers as we integrate more renewable
energy. These investments helped us exceed Hawaii's 2015 Renewable Portfolio Standard of
15%, meeting 18% of customers' electricity needs with renewable
sources in 2013. Ten percent of Oahu customers now have customer-sited solar,
far more than any other utility. At the same time, we are
focused on reducing costs for our customers with proposed
utility-scale solar and wind projects priced 30% lower than the
current cost of generation. We also are working with other
stakeholders on the viability and benefits of bringing liquefied
natural gas to Hawaii as a
cleaner, lower-cost alternative to oil while we continue to
aggressively pursue more renewable generation sources to displace
fossil fuels."
"Our bank exceeded its loan growth goals while maintaining its
targeted portfolio mix, gained market share in home lending,
improved credit quality, and provided dividends to HEI while
maintaining healthy capital levels. Overall, we are pleased
that we were able to achieve many of our goals in a challenging and
dynamic year," said Lau.
HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH
EXPECTATIONS
The utility's full-year and fourth quarter 2013 net income was
$122.9 million and $32.0 million, respectively. The comparison
to the prior year is shown on a core earnings basis in the chart
below.
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RECONCILIATION OF
GAAP TO NON-GAAP MEASURES
|
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($ in
millions)
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|
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|
Three
months
|
|
Years
|
|
|
|
ended December
31
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ended December
31
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|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
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HAWAIIAN ELECTRIC
COMPANY NET INCOME
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|
|
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GAAP (as
reported)
|
$
32.0
|
|
$
4.2
|
|
$
122.9
|
|
$
99.3
|
|
|
Excluding special
items
|
-
|
|
24.4
|
|
-
|
|
24.4
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|
|
Non-GAAP
(core)
|
$
32.0
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|
$
28.7
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|
$
122.9
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$
123.7
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Note: Columns may not
foot due to rounding
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Full Year Results:
Core earnings declined by $0.8
million as additional recovery of costs was slightly less
than the total increases in costs, primarily driven by higher
customer service investments, lower cost recovery at Maui Electric
due to its 2012 final rate case decision, and lower fuel efficiency
performance on Oahu due to efforts
to run units at lower levels. These impacts were partially
offset by a net favorable income tax adjustment in 2013.
Operations and maintenance (O&M) expenses5
(pretax) were $3 million or
approximately 0.9% higher compared to the prior year and below
inflationary levels. The increases were primarily due to
higher customer service costs (discussed above) partially offset by
lower expenses for substation and overhead line maintenance and
lower overhaul expenses.
Fourth Quarter Results:
The $3.3 million core earnings
improvement from the prior year quarter was primarily driven by
lower O&M expenses5. Additional recovery of
costs was offset by increases in depreciation resulting from
infrastructure investments to modernize the grid and ensure
reliability, and lower allowance for funds used during
construction.
O&M expenses (pretax) were $6
million lower due to lower overhaul and substation
maintenance costs in the fourth quarter of
2013.
AMERICAN SAVINGS BANK: SOLID PERFORMANCE AND LOAN
GROWTH
Full Year Results:
American Savings Bank's (American) net income for 2013 was
$57.5 million compared to
$58.6 million in 2012. Lower
2013 earnings compared to the prior year reflected the challenging
regulatory and interest rate environment. The primary drivers
impacting net income for the year were (on an after-tax
basis): $2 million lower net interest income as lower
yields on loans continued to more than offset the favorable
contributions of loan growth; $2
million lower noninterest income due to lower mortgage
banking income and lower interchange fees as a result of the Durbin
Amendment which became effective in July
2013 for American, offsetting all the increases in other fee
income and the premium on the sale of the credit card portfolio;
$4 million higher noninterest expense
primarily driven by higher loan and investment product volumes to
customers, sales and performance related incentives, and benefit
cost increases; and $7 million lower provision for loan losses
resulting from continued improvement in credit quality, coupled
with higher recoveries from previously charged-off loans and
release of reserves related to the sale of the credit card
portfolio.
Overall, American's return on average equity for the full year
remained solid at 11.4% in 2013 compared to 11.7% in 2012 and the
return on average assets was 1.13% in 2013 compared to 1.18% in
2012.
Fourth Quarter Results:
Fourth quarter 2013 net income of $12.2
million was $3.1 million lower
than the linked quarter and $2.2
million lower than the same quarter of 2012.
Compared to the linked quarter of 2013, the $3.1 million net income decline was primarily
driven by (on an after-tax basis): $2
million lower noninterest income mainly due to the gain on
the strategic sale of the credit card portfolio recorded in the
third quarter of 2013; and $1 million
higher noninterest expense, largely attributable to the timing of
certain performance-related compensation expenses.
Compared to the same quarter of 2012, net income declined by
$2.2 million primarily driven by (on
an after-tax basis): $4 million lower
noninterest income primarily due to lower gains on sales of loans
of new residential mortgages as the refinancing market contracted
dramatically since mid-2013 and lower interchange fees; and
$2 million lower provision for loan
losses.
American's fourth quarter 2013 return on average equity was
9.6%, down from 12.1% in the linked quarter and 11.3% in the same
quarter last year. Return on average assets was 0.94% for the
fourth quarter of 2013, compared to 1.20% from the linked quarter
and 1.15% in the same quarter last year.
Also refer to the American news release issued on January 30, 2014.
HOLDING AND OTHER COMPANIES
The holding and other companies' net losses were $18.9 million in 2013 compared to
$19.3 million in 2012.
Fourth quarter net losses were $5.2
million in 2013 compared to $4.8 million in the fourth quarter 2012.
WEBCAST AND CONFERENCE CALL
HEI TO ANNOUNCE 2014 EPS GUIDANCE IN EARNINGS CONFERENCE
CALL
Hawaiian Electric Industries, Inc. will conduct a webcast and
conference call to review its 2013 earnings on Tuesday, February
18, 2014, at 12:00 noon Hawaii time (5:00 p.m.
Eastern time). HEI will announce 2014 EPS guidance
during the scheduled webcast and conference call.
Interested parties may listen to the conference by calling (877)
415-3182 and entering passcode: 61297681, or by accessing the
webcast on HEI's website at www.hei.com under the heading "Investor
Relations." HEI and Hawaiian Electric Company 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, Hawaiian Electric
Company's and American's press releases, HEI's and Hawaiian
Electric Company's Securities and Exchange Commission (SEC) filings
and HEI's public conference calls and webcasts. The
information on HEI's website is not incorporated by reference in
this document or in HEI's and Hawaiian Electric 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 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 HEI's and Hawaiian Electric Company's SEC
filings.
An online replay of the webcast will be available at the same
website beginning about two hours after the event and will remain
on HEI's website for 12 months. Replays of the conference
call will also be available approximately two hours after the event
through March 4, 2014, by dialing
(888) 286-8010, passcode: 22850388.
HEI supplies power to approximately 450,000 customers or 95% of
Hawaii's population through its
electric utilities, Hawaiian Electric Company, Inc., 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 Savings Bank, one of
Hawaii's largest financial
institutions.
NON-GAAP MEASURES
See "Explanation of HEI's Use of Certain Unaudited Non-GAAP
Measures" and related reconciliations on pages 16 to 17 of this
release.
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 Quarterly Report on Form 10-Q for the quarter
ended September 30, 2013 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.
These 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,
Hawaiian Electric Company, 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.
1 Non-GAAP measure which excludes the fourth
quarter after-tax partial write-off of certain utility assets of
$24.4 million in 2012. See
the included tables for GAAP to Non-GAAP reconciliations and
"Explanation of HEI's Use of Certain Unaudited Non-GAAP Measures"
and related reconciliation.
2 Estimate based on 2013 average price per
barrel of $125.
3 Based on October 2013
on-peak avoided cost of oil generation.
4 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.
5 Excludes net income neutral expenses covered by
surcharges or by third parties of $8
million and $6 million for the
full year in 2013 and 2012, respectively, and $3 million and $2
million in the fourth quarter of 2013 and 2012,
respectively. See "Explanation of HEI's Use of Certain Unaudited
Non-GAAP Measures" and the related reconciliation.
Note: Amounts indicated as "after-tax" in this earnings
release are based upon adjusting items for the composite statutory
tax rates of 39% for the utilities and 40% for the bank.
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
|
|
|
(in thousands, except
per share amounts)
|
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Three months
ended December 31
|
|
Years
ended December 31
|
|
Revenues
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Electric
utility
|
|
$
|
764,096
|
|
$
|
769,182
|
|
$
|
2,980,172
|
|
$
|
3,109,439
|
|
Bank
|
|
62,306
|
|
68,970
|
|
258,147
|
|
265,539
|
|
Other
|
|
45
|
|
(5)
|
|
151
|
|
17
|
|
Total
revenues
|
|
826,447
|
|
838,147
|
|
3,238,470
|
|
3,374,995
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
704,588
|
|
749,739
|
|
2,734,659
|
|
2,896,427
|
|
Bank
|
|
44,540
|
|
46,945
|
|
171,090
|
|
177,106
|
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Other
|
|
5,026
|
|
4,191
|
|
17,302
|
|
17,266
|
|
Total
expenses
|
|
754,154
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|
800,875
|
|
2,923,051
|
|
3,090,799
|
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Operating income
(loss)
|
|
|
|
|
|
|
|
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|
Electric
utility
|
|
59,508
|
|
19,443
|
|
245,513
|
|
213,012
|
|
Bank
|
|
17,766
|
|
22,025
|
|
87,057
|
|
88,433
|
|
Other
|
|
(4,981)
|
|
(4,196)
|
|
(17,151)
|
|
(17,249)
|
|
Total operating
income
|
|
72,293
|
|
37,272
|
|
315,419
|
|
284,196
|
|
Interest expense,
net—other than on deposit liabilities and other bank
borrowings
|
|
(15,774)
|
|
(19,393)
|
|
(75,479)
|
|
(78,151)
|
|
Allowance for
borrowed funds used during construction
|
|
620
|
|
1,904
|
|
2,246
|
|
4,355
|
|
Allowance for equity
funds used during construction
|
|
1,531
|
|
1,459
|
|
5,561
|
|
7,007
|
|
Income before
income taxes
|
|
58,670
|
|
21,242
|
|
247,747
|
|
217,407
|
|
Income
taxes
|
|
19,184
|
|
6,933
|
|
84,341
|
|
76,859
|
|
Net
income
|
|
39,486
|
|
14,309
|
|
163,406
|
|
140,548
|
|
Preferred stock
dividends of subsidiaries
|
|
473
|
|
473
|
|
1,890
|
|
1,890
|
|
Net income for
common stock
|
|
$
|
39,013
|
|
$
|
13,836
|
|
$
|
161,516
|
|
$
|
138,658
|
|
Basic earnings per
common share
|
|
$
|
0.39
|
|
$
|
0.14
|
|
$
|
1.63
|
|
$
|
1.43
|
|
Diluted earnings per
common share
|
|
$
|
0.39
|
|
$
|
0.14
|
|
$
|
1.62
|
|
$
|
1.42
|
|
Dividends per common
share
|
|
$
|
0.31
|
|
$
|
0.31
|
|
$
|
1.24
|
|
$
|
1.24
|
|
Weighted-average
number of common shares outstanding
|
|
99,853
|
|
97,602
|
|
98,968
|
|
96,908
|
|
Adjusted
weighted-average shares
|
|
100,525
|
|
97,970
|
|
99,623
|
|
97,338
|
|
Net income (loss) for
common stock by segment
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
31,990
|
|
$
|
4,225
|
|
$
|
122,929
|
|
$
|
99,276
|
|
Bank
|
|
12,184
|
|
14,363
|
|
57,534
|
|
58,637
|
|
Other
|
|
(5,161)
|
|
(4,752)
|
|
(18,947)
|
|
(19,255)
|
|
Net income for common
stock
|
|
$
|
39,013
|
|
$
|
13,836
|
|
$
|
161,516
|
|
$
|
138,658
|
|
Comprehensive income
attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
57,949
|
|
$
|
3,103
|
|
$
|
171,189
|
|
$
|
131,372
|
|
Return on average
common equity
|
|
|
|
|
|
|
9.7%
|
|
8.9%
|
|
|
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, 2013 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms
8-K.
|
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Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
|
|
|
|
December
31
|
|
2013
|
|
2012
|
|
(dollars in thousands)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
220,036
|
|
$
|
219,662
|
|
Accounts receivable
and unbilled revenues, net
|
|
346,785
|
|
362,823
|
|
Available-for-sale
investment and mortgage-related securities
|
|
529,007
|
|
671,358
|
|
Investment in stock
of Federal Home Loan Bank of Seattle
|
|
92,546
|
|
96,022
|
|
Loans receivable held
for investment, net
|
|
4,110,113
|
|
3,737,233
|
|
Loans held for sale,
at lower of cost or fair value
|
|
5,302
|
|
26,005
|
|
Property, plant and
equipment, net of accumulated depreciation of $2,191,199 in 2013
and $2,125,286 in 2012
|
|
3,858,947
|
|
3,594,829
|
|
Regulatory
assets
|
|
575,924
|
|
864,596
|
|
Other
|
|
519,194
|
|
494,414
|
|
Goodwill
|
|
82,190
|
|
82,190
|
|
Total
assets
|
|
$
|
10,340,044
|
|
$
|
10,149,132
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
|
212,331
|
|
$
|
212,379
|
|
Interest and
dividends payable
|
|
26,716
|
|
26,258
|
|
Deposit
liabilities
|
|
4,372,477
|
|
4,229,916
|
|
Short-term
borrowings—other than bank
|
|
105,482
|
|
83,693
|
|
Other bank
borrowings
|
|
244,514
|
|
195,926
|
|
Long-term debt,
net—other than bank
|
|
1,492,945
|
|
1,422,872
|
|
Deferred income
taxes
|
|
529,260
|
|
439,329
|
|
Regulatory
liabilities
|
|
349,299
|
|
324,152
|
|
Contributions in aid
of construction
|
|
432,894
|
|
405,520
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
288,539
|
|
656,394
|
|
Other
|
|
524,224
|
|
524,535
|
|
Total
liabilities
|
|
8,578,681
|
|
8,520,974
|
|
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:
101,259,800 shares in 2013 and 97,928,403 shares in 2012
|
|
1,488,126
|
|
1,403,484
|
|
Retained
earnings
|
|
255,694
|
|
216,804
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
(16,750)
|
|
(26,423)
|
|
Total shareholders'
equity
|
|
1,727,070
|
|
1,593,865
|
|
Total liabilities and
shareholders' equity
|
|
$
|
10,340,044
|
|
$
|
10,149,132
|
|
|
|
|
|
|
|
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, 2013 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms
8-K.
|
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED CASH
FLOWS
(Unaudited)
|
|
|
Years ended December 31
|
2013
|
|
2012
|
|
(in
thousands)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
$
|
163,406
|
|
$
|
140,548
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation of
property, plant and equipment
|
160,061
|
|
150,389
|
|
Other
amortization
|
4,667
|
|
7,958
|
|
Provision for loan
losses
|
1,507
|
|
12,883
|
|
Impairment of utility
assets
|
—
|
|
40,000
|
|
Loans receivable
originated and purchased, held for sale
|
(249,022)
|
|
(519,622)
|
|
Proceeds from sale of
loans receivable, held for sale
|
273,775
|
|
513,000
|
|
Gain on sale of
credit card portfolio
|
(2,251)
|
|
—
|
|
Increase in deferred
income taxes
|
80,399
|
|
90,848
|
|
Excess tax benefits
from share-based payment arrangements
|
(430)
|
|
(61)
|
|
Allowance for equity
funds used during construction
|
(5,561)
|
|
(7,007)
|
|
Change in cash
overdraft
|
1,038
|
|
—
|
|
Changes in assets and
liabilities
|
|
|
|
|
Decrease (increase)
in accounts receivable and unbilled revenues, net
|
16,038
|
|
(18,501)
|
|
Decrease in fuel oil
stock
|
27,332
|
|
10,129
|
|
Increase in
regulatory assets
|
(65,461)
|
|
(72,401)
|
|
Decrease in accounts,
interest and dividends payable
|
(23,153)
|
|
(39,738)
|
|
Change in prepaid and
accrued income taxes and utility revenue taxes
|
(19,406)
|
|
21,079
|
|
Decrease in defined
benefit pension and other postretirement benefit plans
liability
|
(33,014)
|
|
(228)
|
|
Change in other
assets and liabilities
|
(2,779)
|
|
(94,734)
|
|
Net cash provided
by operating activities
|
327,146
|
|
234,542
|
|
Cash flows from
investing activities
|
|
|
|
|
Available-for-sale
investment and mortgage-related securities purchased
|
(112,654)
|
|
(243,633)
|
|
Principal repayments
on available-for-sale investment and mortgage-related
securities
|
158,558
|
|
191,253
|
|
Proceeds from sale of
available-for-sale investment and mortgage-related
securities
|
71,367
|
|
3,548
|
|
Net increase in loans
held for investment
|
(398,426)
|
|
(112,730)
|
|
Proceeds from sale of
real estate acquired in settlement of loans
|
9,212
|
|
11,336
|
|
Capital
expenditures
|
(353,879)
|
|
(325,480)
|
|
Contributions in aid
of construction
|
32,160
|
|
45,982
|
|
Proceeds from sale of
credit card portfolio
|
26,386
|
|
—
|
|
Other
|
3,516
|
|
2,677
|
|
Net cash used in
investing activities
|
(563,760)
|
|
(427,047)
|
|
Cash flows from
financing activities
|
|
|
|
|
Net increase in
deposit liabilities
|
142,561
|
|
159,884
|
|
Net increase in
short-term borrowings with original maturities of three months or
less
|
21,789
|
|
14,872
|
|
Net decrease in
retail repurchase agreements
|
(1,418)
|
|
(37,291)
|
|
Proceeds from other
bank borrowings
|
130,000
|
|
5,000
|
|
Repayments of other
bank borrowings
|
(80,000)
|
|
(5,000)
|
|
Proceeds from
issuance of long-term debt
|
286,000
|
|
457,000
|
|
Repayment of
long-term debt
|
(216,000)
|
|
(375,500)
|
|
Excess tax benefits
from share-based payment arrangements
|
430
|
|
61
|
|
Net proceeds from
issuance of common stock
|
55,086
|
|
23,613
|
|
Common stock
dividends
|
(98,383)
|
|
(96,202)
|
|
Preferred stock
dividends of subsidiaries
|
(1,890)
|
|
(1,890)
|
|
Other
|
(1,187)
|
|
(2,645)
|
|
Net cash provided
by financing activities
|
236,988
|
|
141,902
|
|
Net increase
(decrease) in cash and cash equivalents
|
374
|
|
(50,603)
|
|
Cash and cash
equivalents, January 1
|
219,662
|
|
270,265
|
|
Cash and cash
equivalents, December 31
|
$
|
220,036
|
|
$
|
219,662
|
|
|
|
|
|
|
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, 2013 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms
8-K.
|
|
|
|
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
|
|
|
|
Three months
ended December 31
|
|
Years ended
December 31
|
|
(dollars in
thousands, except per barrel amounts)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Revenues
|
|
$
|
764,096
|
|
$
|
769,182
|
|
$
|
2,980,172
|
|
$
|
3,109,439
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Fuel oil
|
|
307,814
|
|
311,343
|
|
1,185,552
|
|
1,297,419
|
|
Purchased
power
|
|
184,012
|
|
184,400
|
|
710,681
|
|
724,240
|
|
Other operation and
maintenance
|
|
102,299
|
|
107,362
|
|
403,270
|
|
397,429
|
|
Depreciation
|
|
38,160
|
|
35,942
|
|
154,025
|
|
144,498
|
|
Taxes, other than
income taxes
|
|
72,303
|
|
70,692
|
|
281,131
|
|
292,841
|
|
Impairment of utility
assets
|
|
—
|
|
40,000
|
|
—
|
|
40,000
|
|
Total
expenses
|
|
704,588
|
|
749,739
|
|
2,734,659
|
|
2,896,427
|
|
Operating
income
|
|
59,508
|
|
19,443
|
|
245,513
|
|
213,012
|
|
Allowance for equity
funds used during construction
|
|
1,531
|
|
1,459
|
|
5,561
|
|
7,007
|
|
Interest expense and
other charges, net
|
|
(11,830)
|
|
(15,463)
|
|
(59,279)
|
|
(62,055)
|
|
Allowance for
borrowed funds used during construction
|
|
620
|
|
1,904
|
|
2,246
|
|
4,355
|
|
Income before income
taxes
|
|
49,829
|
|
7,343
|
|
194,041
|
|
162,319
|
|
Income
taxes
|
|
17,340
|
|
2,619
|
|
69,117
|
|
61,048
|
|
Net
income
|
|
32,489
|
|
4,724
|
|
124,924
|
|
101,271
|
|
Preferred stock
dividends of subsidiaries
|
|
229
|
|
229
|
|
915
|
|
915
|
|
Net income
attributable to Hawaiian Electric
|
|
32,260
|
|
4,495
|
|
124,009
|
|
100,356
|
|
Preferred stock
dividends of Hawaiian Electric
|
|
270
|
|
270
|
|
1,080
|
|
1,080
|
|
Net income for
common stock
|
|
$
|
31,990
|
|
$
|
4,225
|
|
$
|
122,929
|
|
$
|
99,276
|
|
Comprehensive
income attributable to Hawaiian Electric
|
|
$
|
33,516
|
|
$
|
3,058
|
|
$
|
124,507
|
|
$
|
98,338
|
|
OTHER ELECTRIC
UTILITY INFORMATION
|
|
|
|
|
|
|
|
|
|
Kilowatthour sales
(millions)
|
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
1,759
|
|
1,771
|
|
6,859
|
|
6,976
|
|
Hawaii Electric
Light
|
|
273
|
|
275
|
|
1,076
|
|
1,085
|
|
Maui
Electric
|
|
292
|
|
290
|
|
1,135
|
|
1,145
|
|
|
2,324
|
|
2,336
|
|
9,070
|
|
9,206
|
|
Wet-bulb temperature
(Oahu average; degrees Fahrenheit)
|
|
69.3
|
|
69.4
|
|
68.8
|
|
68.9
|
|
Cooling degree days
(Oahu)
|
|
1,135
|
|
1,102
|
|
4,506
|
|
4,532
|
|
Average fuel oil cost
per barrel
|
|
$
|
133.88
|
|
$
|
133.37
|
|
$
|
131.10
|
|
$
|
138.09
|
|
Return on average
common equity (%) (simple average)1
|
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
|
|
|
|
7.98
|
|
7.57
|
|
Hawaii Electric
Light
|
|
|
|
|
|
7.41
|
|
5.90
|
|
Maui
Electric
|
|
|
|
|
|
8.91
|
|
5.44
|
|
Hawaiian Electric
Consolidated
|
|
|
|
|
|
8.02
|
|
6.91
|
|
|
|
|
|
|
|
|
|
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric's Annual
Report on SEC Form 10-K for the year ended December 31, 2013 (when
filed) and the consolidated financial statements and the notes
thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q
for the quarters ended March 31, 2013, June 30, 2013 and September
30, 2013, as updated by SEC Forms 8-K.
|
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
December 31
|
2013
|
|
2012
|
|
(in
thousands)
|
|
|
|
|
Assets
|
|
|
|
|
Utility plant, at
cost
|
|
|
|
|
Land
|
$
|
51,883
|
|
$
|
51,568
|
|
Plant and
equipment
|
5,701,875
|
|
5,364,400
|
|
Less accumulated
depreciation
|
(2,111,229)
|
|
(2,040,789)
|
|
Construction in
progress
|
143,233
|
|
151,378
|
|
Net utility
plant
|
3,785,762
|
|
3,526,557
|
|
Current
assets
|
|
|
|
|
Cash and
equivalents
|
62,825
|
|
17,159
|
|
Customer accounts
receivable, net
|
175,448
|
|
210,779
|
|
Accrued unbilled
revenues, net
|
144,124
|
|
134,298
|
|
Other accounts
receivable, net
|
14,062
|
|
28,176
|
|
Fuel oil stock, at
average cost
|
134,087
|
|
161,419
|
|
Materials and
supplies, at average cost
|
59,044
|
|
51,085
|
|
Prepayments and
other
|
52,857
|
|
32,865
|
|
Regulatory
assets
|
69,738
|
|
51,267
|
|
Total current
assets
|
712,185
|
|
687,048
|
|
Other long-term
assets
|
|
|
|
|
Regulatory
assets
|
506,186
|
|
813,329
|
|
Unamortized debt
expense
|
9,003
|
|
10,554
|
|
Other
|
73,993
|
|
71,305
|
|
Total other
long-term assets
|
589,182
|
|
895,188
|
|
Total
assets
|
$
|
5,087,129
|
|
$
|
5,108,793
|
|
Capitalization and
liabilities
|
|
|
|
|
Capitalization
|
|
|
|
|
Common stock, $6 2/3
par value, authorized 50, 000 shares; outstanding 15,429,105 shares
in 2013 and 14,665,264 shares in 2012
|
$
|
102,880
|
|
$
|
97,788
|
|
Premium on capital
stock
|
541,452
|
|
468,045
|
|
Retained
earnings
|
948,624
|
|
907,273
|
|
Accumulated other
comprehensive income (loss), net of taxes - retirement benefit
plans
|
608
|
|
(970)
|
|
Common stock
equity
|
1,593,564
|
|
1,472,136
|
|
Cumulative preferred
stock – not subject to mandatory redemption
|
34,293
|
|
34,293
|
|
Long-term debt,
net
|
1,206,545
|
|
1,147,872
|
|
Total
capitalization
|
2,834,402
|
|
2,654,301
|
|
Current
liabilities
|
|
|
|
|
Current portion of
long-term debt
|
11,400
|
|
—
|
|
Accounts
payable
|
189,559
|
|
186,824
|
|
Interest and
preferred dividends payable
|
21,652
|
|
21,092
|
|
Taxes
accrued
|
249,445
|
|
251,066
|
|
Regulatory
liabilities
|
1,916
|
|
1,212
|
|
Other
|
63,881
|
|
60,801
|
|
Total current
liabilities
|
537,853
|
|
520,995
|
|
Deferred credits
and other liabilities
|
|
|
|
|
Deferred income
taxes
|
507,161
|
|
417,611
|
|
Regulatory
liabilities
|
347,383
|
|
322,940
|
|
Unamortized tax
credits
|
73,539
|
|
66,584
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
262,162
|
|
620,205
|
|
Other
|
91,735
|
|
100,637
|
|
Total deferred
credits and other liabilities
|
1,281,980
|
|
1,527,977
|
|
Contributions in
aid of construction
|
432,894
|
|
405,520
|
|
Total
capitalization and liabilities
|
$
|
5,087,129
|
|
$
|
5,108,793
|
|
|
|
|
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric's Annual
Report on SEC Form 10-K for the year ended December 31, 2013 (when
filed) and the consolidated financial statements and the notes
thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q
for the quarters ended March 31, 2013, June 30, 2013 and September
30, 2013, as updated by SEC Forms 8-K.
|
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Years ended
December 31
|
2013
|
|
2012
|
|
(in
thousands)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
$
|
124,924
|
|
$
|
101,271
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation of
property, plant and equipment
|
154,025
|
|
144,498
|
|
Other
amortization
|
5,077
|
|
6,998
|
|
Impairment of utility
assets
|
—
|
|
40,000
|
|
Increase in deferred
income taxes
|
64,507
|
|
86,878
|
|
Change in tax
credits, net
|
7,017
|
|
6,075
|
|
Allowance for equity
funds used during construction
|
(5,561)
|
|
(7,007)
|
|
Change in cash
overdraft
|
1,038
|
|
—
|
|
Changes in assets and
liabilities
|
|
|
|
|
Decrease (increase) in accounts receivable
|
49,445
|
|
(47,004)
|
|
Decrease (increase) in accrued unbilled revenues
|
(9,826)
|
|
3,528
|
|
Decrease in fuel oil stock
|
27,332
|
|
10,129
|
|
Increase in materials and supplies
|
(7,959)
|
|
(7,897)
|
|
Increase in regulatory assets
|
(65,461)
|
|
(72,401)
|
|
Decrease in accounts payable
|
(20,828)
|
|
(38,913)
|
|
Change in prepaid and accrued income taxes and revenue
taxes
|
(2,028)
|
|
25,239
|
|
Increase (decrease) in defined benefit pension and other
postretirement benefit plans liability
|
2,240
|
|
(744)
|
|
Change in other
assets and liabilities
|
(31,499)
|
|
(73,419)
|
|
Net cash provided
by operating activities
|
292,443
|
|
177,231
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
(342,485)
|
|
(310,091)
|
|
Contributions in aid
of construction
|
32,160
|
|
45,982
|
|
Other
|
(230)
|
|
—
|
|
Net cash used in
investing activities
|
(310,555)
|
|
(264,109)
|
|
Cash flows from
financing activities
|
|
|
|
|
Common stock
dividends
|
(81,578)
|
|
(73,044)
|
|
Preferred stock
dividends of Hawaiian Electric and subsidiaries
|
(1,995)
|
|
(1,995)
|
|
Proceeds from
issuance of common stock
|
78,500
|
|
44,000
|
|
Proceeds from
issuance of long-term debt
|
236,000
|
|
457,000
|
|
Repayment of
long-term debt
|
(166,000)
|
|
(368,500)
|
|
Other
|
(1,149)
|
|
(2,230)
|
|
Net cash provided
by financing activities
|
63,778
|
|
55,231
|
|
Net increase
(decrease) in cash and cash equivalents
|
45,666
|
|
(31,647)
|
|
Cash and cash
equivalents, January 1
|
17,159
|
|
48,806
|
|
Cash and cash
equivalents, December 31
|
$
|
62,825
|
|
$
|
17,159
|
|
|
|
|
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric's Annual
Report on SEC Form 10-K for the year ended December 31, 2013 (when
filed) and the consolidated financial statements and the notes
thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q
for the quarters ended March 31, 2013, June 30, 2013 and September
30, 2013, as updated by SEC Forms 8-K.
|
|
American Savings
Bank, F.S.B.
STATEMENTS OF INCOME
DATA
(Unaudited)
|
|
|
(in
thousands)
|
|
Three months
ended
|
|
Years ended
December 31
|
|
Interest and
dividend income
|
|
December 31
2013
|
|
September 30
2013
|
|
December 31
2012
|
|
2013
|
|
2012
|
|
Interest and fees on
loans
|
|
$
|
43,405
|
|
$
|
43,337
|
|
$
|
42,816
|
|
$
|
172,969
|
|
$
|
176,057
|
|
Interest and
dividends on investment and mortgage-related securities
|
|
3,372
|
|
3,025
|
|
3,288
|
|
13,095
|
|
13,822
|
|
Total interest and
dividend income
|
|
46,777
|
|
46,362
|
|
46,104
|
|
186,064
|
|
189,879
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposit
liabilities
|
|
1,222
|
|
1,262
|
|
1,408
|
|
5,092
|
|
6,423
|
|
Interest on other
borrowings
|
|
1,437
|
|
1,206
|
|
1,193
|
|
4,985
|
|
4,869
|
|
Total interest
expense
|
|
2,659
|
|
2,468
|
|
2,601
|
|
10,077
|
|
11,292
|
|
Net interest
income
|
|
44,118
|
|
43,894
|
|
43,503
|
|
175,987
|
|
178,587
|
|
Provision for loan
losses
|
|
554
|
|
54
|
|
3,379
|
|
1,507
|
|
12,883
|
|
Net interest
income after provision for loan losses
|
|
43,564
|
|
43,840
|
|
40,124
|
|
174,480
|
|
165,704
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
Fees from other
financial services
|
|
5,732
|
|
5,728
|
|
8,887
|
|
27,099
|
|
31,361
|
|
Fee income on deposit
liabilities
|
|
4,797
|
|
4,819
|
|
4,648
|
|
18,363
|
|
17,775
|
|
Fee income on other
financial products
|
|
2,117
|
|
2,714
|
|
1,836
|
|
8,405
|
|
6,577
|
|
Mortgage banking
income
|
|
1,413
|
|
1,547
|
|
6,331
|
|
8,309
|
|
14,628
|
|
Gains on sale of
securities
|
|
—
|
|
—
|
|
—
|
|
1,226
|
|
134
|
|
Other income,
net
|
|
1,470
|
|
3,888
|
|
1,164
|
|
8,681
|
|
5,185
|
|
Total noninterest
income
|
|
15,529
|
|
18,696
|
|
22,866
|
|
72,083
|
|
75,660
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
22,195
|
|
20,564
|
|
19,953
|
|
82,910
|
|
75,979
|
|
Occupancy
|
|
4,197
|
|
4,208
|
|
4,313
|
|
16,747
|
|
17,179
|
|
Data
processing
|
|
2,970
|
|
2,168
|
|
2,854
|
|
10,952
|
|
10,098
|
|
Services
|
|
2,160
|
|
2,424
|
|
2,800
|
|
9,015
|
|
9,866
|
|
Equipment
|
|
1,826
|
|
1,825
|
|
1,806
|
|
7,295
|
|
7,105
|
|
Other
expense
|
|
7,951
|
|
8,539
|
|
9,207
|
|
32,585
|
|
32,116
|
|
Total noninterest
expense
|
|
41,299
|
|
39,728
|
|
40,933
|
|
159,504
|
|
152,343
|
|
Income before
income taxes
|
|
17,794
|
|
22,808
|
|
22,057
|
|
87,059
|
|
89,021
|
|
Income
taxes
|
|
5,610
|
|
7,532
|
|
7,694
|
|
29,525
|
|
30,384
|
|
Net
income
|
|
$
|
12,184
|
|
$
|
15,276
|
|
$
|
14,363
|
|
$
|
57,534
|
|
$
|
58,637
|
|
Comprehensive
income
|
|
$
|
23,802
|
|
$
|
14,107
|
|
$
|
5,740
|
|
$
|
60,733
|
|
$
|
52,612
|
|
OTHER BANK
INFORMATION (annualized %, except as of period end)
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.94
|
|
1.20
|
|
1.15
|
|
1.13
|
|
1.18
|
|
Return on average
equity
|
|
9.56
|
|
12.13
|
|
11.29
|
|
11.38
|
|
11.68
|
|
Return on average
tangible common equity
|
|
11.39
|
|
14.50
|
|
13.47
|
|
13.59
|
|
13.97
|
|
Net interest
margin
|
|
3.67
|
|
3.73
|
|
3.81
|
|
3.74
|
|
3.93
|
|
Net charge-offs to
average loans outstanding
|
|
0.15
|
|
—
|
|
0.13
|
|
0.09
|
|
0.24
|
|
As of period
end
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to loans outstanding and real estate owned *
|
|
1.20
|
|
1.33
|
|
1.87
|
|
|
|
|
|
Allowance for loan
losses to loans outstanding
|
|
0.97
|
|
1.01
|
|
1.11
|
|
|
|
|
|
Tier-1 leverage ratio
*
|
|
9.1
|
|
9.3
|
|
9.1
|
|
|
|
|
|
Total risk-based
capital ratio *
|
|
12.1
|
|
12.5
|
|
12.8
|
|
|
|
|
|
Tangible common
equity to total assets
|
|
8.5
|
|
8.36
|
|
8.39
|
|
|
|
|
|
Dividend paid to HEI
(via ASHI) ($ in millions)
|
|
10
|
|
10
|
|
15
|
|
40
|
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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, 2013 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms
8-K.
|
|
American Savings
Bank, F.S.B.
BALANCE SHEETS
DATA
(Unaudited)
|
|
|
December 31
|
|
|
2013
|
|
|
|
2012
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
156,603
|
|
|
|
$
|
184,430
|
|
Available-for-sale
investment and mortgage-related securities
|
|
|
529,007
|
|
|
|
671,358
|
|
Investment in stock
of Federal Home Loan Bank of Seattle
|
|
|
92,546
|
|
|
|
96,022
|
|
Loans receivable held
for investment
|
|
|
4,150,229
|
|
|
|
3,779,218
|
|
Allowance for loan
losses
|
|
|
(40,116)
|
|
|
|
(41,985)
|
|
Loans receivable held
for investment, net
|
|
|
4,110,113
|
|
|
|
3,737,233
|
|
Loans held for sale,
at lower of cost or fair value
|
|
|
5,302
|
|
|
|
26,005
|
|
Other
|
|
|
268,063
|
|
|
|
244,435
|
|
Goodwill
|
|
|
82,190
|
|
|
|
82,190
|
|
Total
assets
|
|
|
$
|
5,243,824
|
|
|
|
$
|
5,041,673
|
|
Liabilities and
shareholder's equity
|
|
|
|
|
|
|
|
|
Deposit
liabilities–noninterest-bearing
|
|
|
$
|
1,214,418
|
|
|
|
$
|
1,164,308
|
|
Deposit
liabilities–interest-bearing
|
|
|
3,158,059
|
|
|
|
3,065,608
|
|
Other
borrowings
|
|
|
244,514
|
|
|
|
195,926
|
|
Other
|
|
|
105,679
|
|
|
|
117,752
|
|
Total
liabilities
|
|
|
4,722,670
|
|
|
|
4,543,594
|
|
Common
stock
|
|
|
336,054
|
|
|
|
333,712
|
|
Retained
earnings
|
|
|
197,297
|
|
|
|
179,763
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
|
|
|
|
|
|
|
Net unrealized gains
(losses) on securities
|
$
|
(3,663)
|
|
|
|
$
|
10,761
|
|
|
|
Retirement benefit
plans
|
(8,534)
|
|
(12,197)
|
|
(26,157)
|
|
(15,396)
|
|
Total shareholder's equity
|
|
|
521,154
|
|
|
|
498,079
|
|
Total liabilities and shareholder's equity
|
|
|
$
|
5,243,824
|
|
|
|
$
|
5,041,673
|
|
|
|
|
|
|
|
|
|
|
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, 2013 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2013, June 30, 2013 and September 30, 2013, as updated by SEC Forms
8-K.
|
EXPLANATION OF HEI'S USE OF CERTAIN UNAUDITED NON-GAAP
MEASURES
HEI and Hawaiian Electric Company management use certain
non-GAAP measures to evaluate the performance of the utility and
HEI. Management believes these non-GAAP measures provide
useful information and are a better indicator of the companies'
core operating activities. Core earnings and other financial
measures as presented here may not be comparable to similarly
titled measures used by other companies. The accompanying
tables provide a reconciliation of reported GAAP1
earnings to non-GAAP core earnings for both the utility and HEI
consolidated and the corresponding adjusted return on average
common equity (ROACE).
The reconciling adjustments from GAAP earnings to core earnings
are limited to the settlement charge for the partial write-off of
utility assets in 2012. For more information on the
settlement charge recorded in 2012, see the Form 8-K filed on
March 20, 2013. Management does
not consider these items to be representative of the company's
fundamental core earnings.
The accompanying table also provides the calculation of utility
GAAP O&M adjusted for "O&M-related net income neutral
items" which are O&M expenses covered by specific surcharges or
by third parties. This item is grossed-up in revenue and
expense and does not impact net income.
|
RECONCILIATION OF
GAAP1 TO NON-GAAP MEASURES
|
|
Hawaiian Electric
Industries, Inc. and Subsidiaries (HEI)
|
|
Unaudited
|
|
($ in millions,
except per share amounts)
|
|
|
|
Three months
ended
|
|
Years
ended
|
|
|
|
December
31
|
|
December
31
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
HEI CONSOLIDATED
NET INCOME
|
|
|
|
|
|
|
|
|
|
GAAP (as
reported)
|
|
$
39.0
|
|
$
13.8
|
|
$
161.5
|
|
$
138.7
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
|
|
|
|
Settlement agreement
for the partial writedown of certain utility assets
|
|
-
|
|
24.4
|
|
-
|
|
24.4
|
|
Non-GAAP
(core)
|
|
$
39.0
|
|
$
38.3
|
|
$
161.5
|
|
$
163.1
|
|
|
|
|
|
|
|
|
|
|
|
HEI CONSOLIDATED
DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
GAAP (as
reported)
|
|
$
0.39
|
|
$
0.14
|
|
$
1.62
|
|
$
1.42
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
|
|
|
|
Settlement agreement
for the partial writedown of certain utility assets
|
|
-
|
|
0.25
|
|
-
|
|
0.25
|
|
Non-GAAP
(core)
|
|
$
0.39
|
|
$
0.39
|
|
$
1.62
|
|
$
1.68
|
|
HEI CONSOLIDATED
RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
|
|
Based on
GAAP
|
|
9.7%
|
|
8.9%
|
|
Based on non-GAAP
(core)2
|
|
9.7%
|
|
10.4%
|
|
Note: Columns may not
foot due to rounding
|
|
1
|
Accounting principles
generally accepted in the United States of America
|
|
2
|
Calculated as core
net income divided by average GAAP common equity
|
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES
|
|
Hawaiian Electric
Company, Inc. and Subsidiaries
|
|
Unaudited
|
|
($ in
millions)
|
|
|
|
Three months
ended
|
|
Years
ended
|
|
|
|
|
|
|
|
December
31
|
|
December
31
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED NET INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (as
reported)
|
|
$
32.0
|
|
$
4.2
|
|
$
122.9
|
|
$
99.3
|
|
|
|
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement agreement for the partial writedown of certain utility
assets
|
|
-
|
|
24.4
|
|
-
|
|
24.4
|
|
|
|
|
|
Non-GAAP
(core)
|
|
$
32.0
|
|
$
28.7
|
|
$
122.9
|
|
$
123.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
|
|
Based on
GAAP
|
|
|
|
|
|
8.0%
|
|
6.9%
|
|
|
|
|
|
Based on non-GAAP
(core)1
|
|
|
|
|
|
8.0%
|
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
Hawaii Electric
Light
|
|
Maui
Electric
|
|
Years ended December
31
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
NET
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (as
reported)
|
|
$
81.5
|
|
$
70.4
|
|
$
20.1
|
|
$
16.2
|
|
$
21.3
|
|
$
12.6
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement agreement for the partial writedown of certain utility
assets
|
|
-
|
|
17.7
|
|
-
|
|
3.4
|
|
-
|
|
3.4
|
|
Non-GAAP
(core)
|
|
$
81.5
|
|
$
88.2
|
|
$
20.1
|
|
$
19.6
|
|
$
21.3
|
|
$
16.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON AVERAGE
COMMON EQUITY (ROACE) (simple average)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on
GAAP
|
|
8.0%
|
|
7.6%
|
|
7.4%
|
|
5.9%
|
|
8.9%
|
|
5.4%
|
|
Based on non-GAAP
(core)1
|
|
8.0%
|
|
9.5%
|
|
7.4%
|
|
7.1%
|
|
8.9%
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Years
ended
|
|
|
|
December
31
|
|
December
31
|
|
|
|
2013
|
|
2012
|
|
Change
|
|
2013
|
|
2012
|
|
Change
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED OTHER OPERATION AND MAINTENANCE (O&M)
EXPENSE
|
|
GAAP (as
reported)
|
|
$
102.3
|
|
$
107.4
|
|
$
(5.1)
|
|
$
403.3
|
|
$
397.4
|
|
$
5.9
|
|
Excluding O&M-related net income neutral
items2
|
|
(2.9)
|
|
(1.5)
|
|
(1.4)
|
|
(8.0)
|
|
(5.6)
|
|
(2.4)
|
|
Adjusted
other operation and maintenance (Non-GAAP
measure)
|
|
$
99.4
|
|
$
105.9
|
|
$
(6.5)
|
|
$
395.3
|
|
$
391.8
|
|
$
3.5
|
|
Note: Columns
may not foot due to rounding
|
|
1
|
Calculated as core
net income divided by average GAAP common equity
|
|
2
|
Expenses covered by
surcharges or by third parties recorded in revenues
|
|
|
|
|
Contact:
|
Shelee M.T.
Kimura
|
Telephone: (808)
543-7384
|
|
Manager, Investor
Relations & Strategic Planning
|
E-mail:
skimura@hei.com
|
(Logo:
http://photos.prnewswire.com/prnh/20110411/LA80136LOGO)
SOURCE Hawaiian Electric Industries, Inc.