HONOLULU, Feb. 12, 2015 /PRNewswire/ --
Selected 2014 Highlights:
- Reported net income of $168.3
million vs $161.5 million in
2013, up 4%;
Core net income[1] of $173.2
million vs $161.5 million in
2013, up 7%
- Reported EPS of $1.64 vs
$1.62 in 2013, up 1%;
Core EPS[1] of $1.68 vs
$1.62 in 2013, up 4%
- Reported ROE of 9.6%;Core ROE[1] of
9.8%
- 114-year history of continuous dividends
- Continued legacy of delivering value for customers and
Hawaii:
- Record 21%[2] of electricity used by Hawaiian Electric
customers generated from renewable sources
- Surpassed Hawaii's 2015
renewable portfolio standard of 15%
- Avoided-oil equivalent purchase of 2 million barrels which
would have cost our state approximately $259
million[3] in imported oil in 2014
- Led the nation in the integration of customer-sited solar: 13%
of Oahu residential customers and
12% of all of our residential customers using rooftop solar by the
end of 2014
- Filed utility's Power Supply Improvement Plan (PSIP) proposals
with the Hawaii Public Utilities Commission in 2014 to:
- Lower electric bills by 20 percent by 2030
- Increase renewable energy to more than 65 percent by 2030
- Triple the amount of distributed solar by 2030
- Offer customers expanded products and services
- Limited other operations and maintenance (O&M) expense[4]
increases to 1% over the 2013 level, less than the 2014 anticipated
Honolulu inflation rate of 1.5%,
while accommodating approximately $12
million in additional costs associated with strategic
initiatives and storm recovery
- Bank provided over $1.5 billion
of credit to consumers and businesses and originated over 3,600
mortgages
- Bank credit quality excellent with net charge offs of only 1
basis point on a loan book of $4.4 billion
- Contributed over 16,000 volunteer hours and over $2 million of charitable contributions to
community organizations
- Announced plans for Hawaiian Electric Industries (HEI) and
NextEra Energy to combine, as well as plans to spin off ASB Hawaii,
the parent company of American Saving Bank, into a new, publicly
traded company, mutually contingent upon the closing of the
proposed combination of HEI and NextEra Energy
Hawaiian Electric Industries, Inc. (NYSE - HE) today reported
2014 year-end consolidated net income for common stock of
$168.3 million, or diluted earnings
per share (EPS) of $1.64. For the
fourth quarter of 2014, consolidated net income for common stock
was $33.2 million, or
$0.32 EPS. Excluding $4.9 million after-tax of merger-related costs
associated with the pending merger with NextEra Energy, Inc. and
the spin-off of ASB Hawaii, core earnings[1] for 2014 were
$173.2 million or $1.68 EPS, compared to $161.5 million or $1.62 EPS in 2013. For the fourth quarter of
2014, core earnings[1] were $37.5
million or $0.36 EPS compared
to $39.0 million or $0.39 EPS for the same quarter last year.
"We continued to grow our businesses in steady fashion and
delivered a competitive core return on equity[1] of 9.8% for the
year as HEI's combination of companies continues to provide us with
the financial resources to efficiently invest in future
opportunities," said Constance Lau,
HEI president and chief executive officer. "Our utility continued
to invest in the modernization and improvement of our electric grid
as we integrated more renewable energy. These investments helped us
achieve an energy portfolio powered by 21% renewable sources in
2014, far in excess of Hawaii's
2015 RPS target of 15%. Thirteen percent of Oahu residential customers now have
customer-sited solar, a rate of integration that leads the nation.
Even as recent oil price decreases have brought our customers bill
relief, we remain focused on further reducing costs for our
customers with proposed grid-scale solar and wind projects. We also
are working with other stakeholders to bring liquefied natural gas
to Hawaii as a cleaner, lower-cost
alternative to oil while we continue to aggressively pursue more
renewable generation sources. Furthermore, as we did earlier in
2014 for Hawaiian Electric, we recently filed our abbreviated rate
case for Maui Electric in which we offered to forgo the opportunity
to request additional base revenues."
"Our bank delivered solid financial results in 2014 in a
challenging regulatory and interest rate environment. We produced
strong loan growth while improving credit quality and maintaining
healthy capital levels. Our bank continues to improve the ways it
delivers to its customers and is poised in 2015 to continue growing
its balance sheet and earnings," said Lau.
"Last December we announced our proposed merger with NextEra
Energy, and we are looking forward to working with NextEra Energy
as a partner to help accelerate Hawaii's clean energy transformation. We also
announced the related spin off of American Savings Bank, and we are
very confident that American, as a new, publicly-traded entity,
will remain a strong community bank for Hawaii," added Lau.
HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH
EXPECTATIONS
Full Year Results:
Hawaiian Electric Company's[5] full-year 2014 net income was
$137.6 million compared to
$122.9 million in 2013. The
$14.7 million increase from the prior
year was driven by the following items on an after-tax basis:
- Net revenues[6] were $31 million
higher compared to the prior year primarily due to $29 million in 2014 revenues attributable to the
recovery of costs for clean energy and reliability investments and
a $3 million refund to Maui Electric
customers which reduced 2013 revenues, partially offset by
$1 million due to reduced fuel efficiency performance;
and
- Higher allowance for funds used during construction of
$1 million.
These increases were partially offset by the following on an
after-tax basis:
- $8 million higher depreciation
expense in 2014 as a result of increasing investments for the
integration of more renewable energy, improved customer reliability
and greater system efficiency;
- O&M expenses[4] were $3
million higher in 2014 compared to the prior year. However,
excluding the unanticipated Tropical Storm Iselle restoration
expenses and consulting costs associated with our energy
transformation plans, O&M expenses for 2014 would have
decreased by approximately $4 million compared to the prior
year. Included in 2014 O&M expenses were grid modernization
program costs for smart grid installations and the upgrade of our
customer information system which were more than offset by lower
customer services expenses, lower overhaul costs due to reduced
scope of work and savings from the deactivation of generating units
compared to the prior year;
- Higher interest expense and other charges, net of $3 million in 2014, including lower revenue
balancing account (RBA) interest income of $2 million primarily due to the lower interest
rates applied; and
- A favorable deferred income tax adjustment of $3 million recorded in 2013 related to prior
years.
Fourth Quarter Results:
Fourth quarter 2014 net income was $29.1
million compared to $32.0
million in the fourth quarter of 2013. The $2.9 million decline from the prior year quarter
was primarily driven by the following items on an after-tax
basis:
- O&M expenses[4] were $8
million higher in the fourth quarter of 2014 compared to the
prior quarter. This is largely due to no major overhauls in the
fourth quarter of 2013, consulting costs associated with our energy
transformation plans, the customer information system upgrade, and
the initial phase of our smart grid installations as part of our
grid modernization program, partially offset by the savings from
the deactivation of generating units; and
- Depreciation expense in the fourth quarter of 2014 was
$2 million higher than the prior year
quarter due to increases in utility property, plant and
equipment.
These increases were partially offset by the following on an
after-tax basis:
- Net revenues[6] were $6 million
higher compared to the prior year quarter primarily due to 2014
revenues attributable to the recovery of costs for clean energy and
reliability investments; and
- Tax-related items of $1
million.
AMERICAN SAVINGS BANK: SOLID PERFORMANCE AND LOAN
GROWTH
Full Year Results:
American Savings Bank's (American) net income for 2014 was
$51.5 million compared to
$57.5 million in 2013. Lower
2014 earnings compared to the prior year reflected the continued
impact of regulatory changes and the low interest rate environment.
The primary drivers impacting net income for the year were as
follows on an after-tax basis:
- $7 million lower noninterest income primarily due to lower
mortgage banking income related to the decline in refinancing
volume, lower interchange fees as a result of rate caps mandated by
the Durbin Amendment, which became effective for American in
July 2013, and the gain reflected in
the prior year related to the sale of the credit card
portfolio;
- $3 million higher provision for
loan losses due primarily to normal growth in the loan portfolio
and the $1 million release of
reserves in 2013 related to the sale of the credit card portfolio;
and
- $3 million higher net interest
income as contributions from loan growth more than offset the lower
yields on loans.
American achieved strong loan growth of 6.8% in 2014 despite the
competitive Hawaii market
environment, and credit quality improved with the 2014 net
charge-off ratio of 0.01% of average loans compared to 0.09% in
2013. Total deposits were $4.6
billion at December 31, 2014,
an increase of $251 million from
December 31, 2013.
Overall, American's return on average equity for the full year
remained solid at 9.6% in 2014 compared to 11.4% in 2013, and the
return on average assets was 0.95% in 2014 compared to 1.13% in
2013.
Fourth Quarter Results:
Fourth quarter 2014 net income of $12.0
million was $1.2 million lower
than the linked quarter and $0.2
million lower than the same quarter of 2013. Compared to the
linked quarter of 2014, the $1.2
million net income decline was primarily driven by the
following on an after-tax basis:
- $1 million higher noninterest
expense largely attributable to the settlement of a purported class
action lawsuit related to overdraft fees on debit card transactions
and costs related to the strategic designation of a new corporate
campus in Honolulu;
- $1 million higher provision for
loan losses related to loan growth in the quarter; and
- $1 million of higher net interest
income primarily due to loan growth.
American's fourth quarter 2014 return on average equity was
8.8%, compared to 9.9% in the linked quarter and 9.6% in the same
quarter last year. Return on average assets was 0.87% for the
fourth quarter of 2014, compared to 0.98% from the linked quarter
and 0.94% in the same quarter last year.
Also refer to the American news release issued on January 30, 2015.
HOLDING AND OTHER COMPANIES
The holding and other companies' net losses were $20.8 million in 2014 compared to
$18.9 million in 2013. Fourth
quarter net losses were $8.0 million
in 2014 compared to $5.2 million
in the fourth quarter 2013. The full year 2014 and the fourth
quarter 2014 net loss included $4.9 million after-tax and $4.3 million after-tax, respectively, of costs
related to the pending merger with NextEra Energy, Inc. and
expenses incurred in connection with plans to spin off ASB Hawaii.
Excluding the pending merger-related costs, the full year and the
fourth quarter 2014 net loss declined primarily due to lower
interest expense compared to 2013.
WEBCAST AND CONFERENCE CALL
HEI TO ANNOUNCE 2015 EPS GUIDANCE IN EARNINGS CONFERENCE
CALL
Hawaiian Electric Industries, Inc. will conduct a webcast and
conference call to review its 2014 earnings on Thursday, February
12, 2015, at 12:00 noon Hawaii time (5:00 p.m.
Eastern time). HEI will announce 2015 EPS guidance during
the scheduled webcast and conference call.
Interested parties may listen to the conference by calling (800)
884-5695 and entering passcode: 41634040, 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 four hours after the event and will remain
on HEI's website for 12 months. Replays of the conference call will
also be available approximately four hours after the event through
February 26, 2015, by dialing
(888) 286-8010, passcode: 65598214.
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 page 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, 2014 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 $4.9 million and $4.3 million of merger-related
costs after-tax for the full year 2014 and for the fourth quarter
of 2014, respectively. See the "Explanation of HEI's Use of
Certain Unaudited Non-GAAP measures" and the related
reconciliation.
|
|
[2]
|
Based upon
preliminary Renewable Portfolio Standard information as of
12/31/14.
|
|
[3]
|
Estimate based on the
2014 average price per barrel of $129.65.
|
|
[4]
|
Excludes net income
neutral expenses covered by surcharges or by third parties of $10
million and $8 million for the full year 2014 and 2013,
respectively, and $3 million in both the fourth quarter of 2014 and
2013. See "Explanation of HEI's Use of Certain Unaudited Non-GAAP
measures" and the related reconciliation.
|
|
[5]
|
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.
|
|
[6]
|
Net revenues
represent the after-tax impact of "Revenues" less the following
expenses which are largely pass through items in revenues: "fuel
oil," "purchased power" and "taxes, other than income taxes" as
shown on the Hawaiian Electric Company, Inc. and Subsidiaries'
Consolidated Statements of Income.
|
|
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
|
|
|
|
Three months ended
December 31
|
|
Years ended
December 31
|
|
(in thousands, except per share amounts)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
725,267
|
|
$
|
770,152
|
|
$
|
2,987,323
|
|
$
|
2,980,172
|
|
Bank
|
|
64,726
|
|
62,306
|
|
252,497
|
|
258,147
|
|
Other
|
|
47
|
|
45
|
|
(278)
|
|
151
|
|
Total
revenues
|
|
790,040
|
|
832,503
|
|
3,239,542
|
|
3,238,470
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
666,389
|
|
704,588
|
|
2,711,555
|
|
2,734,659
|
|
Bank
|
|
47,350
|
|
44,540
|
|
176,878
|
|
171,090
|
|
Other
|
|
9,060
|
|
5,026
|
|
22,185
|
|
17,302
|
|
Total
expenses
|
|
722,799
|
|
754,154
|
|
2,910,618
|
|
2,923,051
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
58,878
|
|
65,564
|
|
275,768
|
|
245,513
|
|
Bank
|
|
17,376
|
|
17,766
|
|
75,619
|
|
87,057
|
|
Other
|
|
(9,013)
|
|
(4,981)
|
|
(22,463)
|
|
(17,151)
|
|
Total operating
income
|
|
67,241
|
|
78,349
|
|
328,924
|
|
315,419
|
|
Interest expense,
net—other than on deposit liabilities and other bank
borrowings
|
|
(17,704)
|
|
(19,263)
|
|
(76,352)
|
|
(75,479)
|
|
Allowance for
borrowed funds used during construction
|
|
702
|
|
620
|
|
2,579
|
|
2,246
|
|
Allowance for equity
funds used during construction
|
|
1,838
|
|
1,531
|
|
6,771
|
|
5,561
|
|
Income before
income taxes
|
|
52,077
|
|
61,237
|
|
261,922
|
|
247,747
|
|
Income
taxes
|
|
18,447
|
|
21,751
|
|
91,712
|
|
84,341
|
|
Net
income
|
|
33,630
|
|
39,486
|
|
170,210
|
|
163,406
|
|
Preferred stock
dividends of subsidiaries
|
|
473
|
|
473
|
|
1,890
|
|
1,890
|
|
Net income for
common stock
|
|
$
|
33,157
|
|
$
|
39,013
|
|
$
|
168,320
|
|
$
|
161,516
|
|
Basic earnings per
common share
|
|
$
|
0.32
|
|
$
|
0.39
|
|
$
|
1.65
|
|
$
|
1.63
|
|
Diluted earnings
per common share
|
|
$
|
0.32
|
|
$
|
0.39
|
|
$
|
1.64
|
|
$
|
1.62
|
|
Dividends per
common share
|
|
$
|
0.31
|
|
$
|
0.31
|
|
$
|
1.24
|
|
$
|
1.24
|
|
Weighted-average
number of common shares outstanding
|
|
102,561
|
|
99,853
|
|
101,968
|
|
98,968
|
|
Adjusted
weighted-average shares
|
|
103,991
|
|
100,525
|
|
102,937
|
|
99,623
|
|
Net income (loss)
for common stock by segment
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
29,112
|
|
$
|
31,990
|
|
$
|
137,641
|
|
$
|
122,929
|
|
Bank
|
|
12,017
|
|
12,184
|
|
51,492
|
|
57,534
|
|
Other
|
|
(7,972)
|
|
(5,161)
|
|
(20,813)
|
|
(18,947)
|
|
Net income for
common stock
|
|
$
|
33,157
|
|
$
|
39,013
|
|
$
|
168,320
|
|
$
|
161,516
|
|
Comprehensive income
attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
19,773
|
|
$
|
57,949
|
|
$
|
157,692
|
|
$
|
171,189
|
|
Return on average
common equity
|
|
|
|
|
|
9.6%
|
|
9.7%
|
|
|
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, 2014 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2014, June 30, 2014 and September 30, 2014, as updated by SEC Forms
8-K.
|
|
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
December
31
|
|
2014
|
|
2013
|
|
(dollars in thousands)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
175,542
|
|
$
|
220,036
|
|
Accounts receivable
and unbilled revenues, net
|
|
313,696
|
|
346,785
|
|
Available-for-sale
investment securities
|
|
550,394
|
|
529,007
|
|
Stock in Federal Home
Loan Bank of Seattle, at cost
|
|
69,302
|
|
92,546
|
|
Loans receivable held
for investment, net
|
|
4,389,033
|
|
4,110,113
|
|
Loans held for sale,
at lower of cost or fair value
|
|
8,424
|
|
5,302
|
|
Property, plant and
equipment, net of accumulated depreciation of $2,250,950 and
$2,192,422 at the respective dates
|
|
4,148,774
|
|
3,865,514
|
|
Regulatory
assets
|
|
905,264
|
|
575,924
|
|
Other
|
|
541,542
|
|
512,627
|
|
Goodwill
|
|
82,190
|
|
82,190
|
|
Total
assets
|
|
$
|
11,184,161
|
|
$
|
10,340,044
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
|
186,425
|
|
$
|
212,331
|
|
Interest and
dividends payable
|
|
25,336
|
|
26,716
|
|
Deposit
liabilities
|
|
4,623,415
|
|
4,372,477
|
|
Short-term
borrowings—other than bank
|
|
118,972
|
|
105,482
|
|
Other bank
borrowings
|
|
290,656
|
|
244,514
|
|
Long-term debt,
net—other than bank
|
|
1,506,546
|
|
1,492,945
|
|
Deferred income
taxes
|
|
631,734
|
|
529,260
|
|
Regulatory
liabilities
|
|
344,849
|
|
349,299
|
|
Contributions in aid
of construction
|
|
466,432
|
|
432,894
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
632,845
|
|
288,539
|
|
Other
|
|
531,230
|
|
524,224
|
|
Total
liabilities
|
|
9,358,440
|
|
8,578,681
|
|
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:
102,565,266 shares and 101,259,800 shares at the respective
dates
|
|
1,521,297
|
|
1,488,126
|
|
Retained
earnings
|
|
297,509
|
|
255,694
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
(27,378)
|
|
(16,750)
|
|
Total
shareholders' equity
|
|
1,791,428
|
|
1,727,070
|
|
Total liabilities
and shareholders' equity
|
|
$
|
11,184,161
|
|
$
|
10,340,044
|
|
|
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, 2014 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2014, June 30, 2014 and September 30, 2014, as updated by SEC Forms
8-K.
|
|
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Years ended December 31
|
2014
|
|
2013
|
|
(in thousands)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
$
|
170,210
|
|
$
|
163,406
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation of
property, plant and equipment
|
172,762
|
|
160,061
|
|
Other
amortization
|
8,476
|
|
4,667
|
|
Provision for loan
losses
|
6,126
|
|
1,507
|
|
Loans receivable
originated and purchased, held for sale
|
(155,755)
|
|
(249,022)
|
|
Proceeds from sale of
loans receivable, held for sale
|
155,030
|
|
273,775
|
|
Gain on sale of
credit card portfolio
|
—
|
|
(2,251)
|
|
Increase in deferred
income taxes
|
59,184
|
|
80,399
|
|
Excess tax benefits
from share-based payment arrangements
|
(277)
|
|
(430)
|
|
Allowance for equity
funds used during construction
|
(6,771)
|
|
(5,561)
|
|
Change in cash
overdraft
|
(1,038)
|
|
1,038
|
|
Changes in assets and
liabilities
|
|
|
|
|
Decrease in accounts
receivable and unbilled revenues, net
|
33,089
|
|
16,038
|
|
Decrease in fuel oil
stock
|
28,041
|
|
27,332
|
|
Increase in
regulatory assets
|
(17,000)
|
|
(65,461)
|
|
Decrease in accounts,
interest and dividends payable
|
(92,294)
|
|
(23,153)
|
|
Change in prepaid and
accrued income taxes and utility revenue taxes
|
12,845
|
|
(19,406)
|
|
Increase (decrease)
in defined benefit pension and other postretirement benefit plans
liability
|
22,251
|
|
(33,014)
|
|
Change in other
assets and liabilities
|
(93,400)
|
|
(2,779)
|
|
Net cash provided
by operating activities
|
301,479
|
|
327,146
|
|
Cash flows from
investing activities
|
|
|
|
|
Available-for-sale
investment securities purchased
|
(183,778)
|
|
(112,654)
|
|
Principal repayments
on available-for-sale investment securities
|
91,013
|
|
158,558
|
|
Proceeds from sale of
available-for-sale investment securities
|
79,564
|
|
71,367
|
|
Redemption of stock
from Federal Home Loan Bank of Seattle
|
23,244
|
|
3,476
|
|
Net increase in loans
held for investment
|
(283,810)
|
|
(398,426)
|
|
Proceeds from sale of
real estate acquired in settlement of loans
|
3,213
|
|
9,212
|
|
Capital
expenditures
|
(339,721)
|
|
(353,879)
|
|
Contributions in aid
of construction
|
41,806
|
|
32,160
|
|
Proceeds from sale of
credit card portfolio
|
—
|
|
26,386
|
|
Other
|
(39)
|
|
40
|
|
Net cash used in
investing activities
|
(568,508)
|
|
(563,760)
|
|
Cash flows from
financing activities
|
|
|
|
|
Net increase in
deposit liabilities
|
250,938
|
|
142,561
|
|
Net increase in
short-term borrowings with original maturities of three months or
less
|
13,490
|
|
21,789
|
|
Net decrease in
retail repurchase agreements
|
(9,465)
|
|
(1,418)
|
|
Proceeds from other
bank borrowings
|
130,601
|
|
130,000
|
|
Repayments of other
bank borrowings
|
(75,000)
|
|
(80,000)
|
|
Proceeds from
issuance of long-term debt
|
125,000
|
|
286,000
|
|
Repayment of
long-term debt
|
(111,400)
|
|
(216,000)
|
|
Excess tax benefits
from share-based payment arrangements
|
277
|
|
430
|
|
Net proceeds from
issuance of common stock
|
26,898
|
|
55,086
|
|
Common stock
dividends
|
(126,458)
|
|
(98,383)
|
|
Preferred stock
dividends of subsidiaries
|
(1,890)
|
|
(1,890)
|
|
Other
|
(456)
|
|
(1,187)
|
|
Net cash provided
by financing activities
|
222,535
|
|
236,988
|
|
Net increase
(decrease) in cash and cash equivalents
|
(44,494)
|
|
374
|
|
Cash and cash
equivalents, January 1
|
220,036
|
|
219,662
|
|
Cash and cash
equivalents, December 31
|
$
|
175,542
|
|
$
|
220,036
|
|
|
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, 2014 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2014, June 30, 2014 and September 30, 2014, 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)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenues
|
|
$
|
725,267
|
|
$
|
770,152
|
|
$
|
2,987,323
|
|
$
|
2,980,172
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Fuel oil
|
|
265,696
|
|
307,814
|
|
1,131,685
|
|
1,185,552
|
|
Purchased
power
|
|
175,887
|
|
184,012
|
|
722,008
|
|
710,681
|
|
Other operation and
maintenance
|
|
115,129
|
|
102,547
|
|
410,612
|
|
403,270
|
|
Depreciation
|
|
41,597
|
|
38,160
|
|
166,387
|
|
154,025
|
|
Taxes, other than
income taxes
|
|
68,080
|
|
72,055
|
|
280,863
|
|
281,131
|
|
Total
expenses
|
|
666,389
|
|
704,588
|
|
2,711,555
|
|
2,734,659
|
|
Operating
income
|
|
58,878
|
|
65,564
|
|
275,768
|
|
245,513
|
|
Allowance for equity
funds used during construction
|
|
1,838
|
|
1,531
|
|
6,771
|
|
5,561
|
|
Interest expense and
other charges, net
|
|
(15,768)
|
|
(15,319)
|
|
(64,757)
|
|
(59,279)
|
|
Allowance for
borrowed funds used during construction
|
|
702
|
|
620
|
|
2,579
|
|
2,246
|
|
Income before income
taxes
|
|
45,650
|
|
52,396
|
|
220,361
|
|
194,041
|
|
Income
taxes
|
|
16,039
|
|
19,907
|
|
80,725
|
|
69,117
|
|
Net
income
|
|
29,611
|
|
32,489
|
|
139,636
|
|
124,924
|
|
Preferred stock
dividends of subsidiaries
|
|
229
|
|
229
|
|
915
|
|
915
|
|
Net income
attributable to Hawaiian Electric
|
|
29,382
|
|
32,260
|
|
138,721
|
|
124,009
|
|
Preferred stock
dividends of Hawaiian Electric
|
|
270
|
|
270
|
|
1,080
|
|
1,080
|
|
Net income for
common stock
|
|
$
|
29,112
|
|
$
|
31,990
|
|
$
|
137,641
|
|
$
|
122,929
|
|
Comprehensive
income attributable to Hawaiian Electric
|
|
$
|
28,517
|
|
$
|
33,516
|
|
$
|
137,078
|
|
$
|
124,507
|
|
OTHER ELECTRIC
UTILITY INFORMATION
|
|
|
|
|
|
|
|
|
|
Kilowatthour sales
(millions)
|
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
1,720
|
|
1,759
|
|
6,782
|
|
6,859
|
|
Hawaii
Electric Light
|
|
269
|
|
273
|
|
1,062
|
|
1,076
|
|
Maui
Electric
|
|
288
|
|
292
|
|
1,132
|
|
1,135
|
|
|
2,277
|
|
2,324
|
|
8,976
|
|
9,070
|
|
Wet-bulb temperature
(Oahu average; degrees Fahrenheit)
|
|
70.0
|
|
69.3
|
|
69.6
|
|
68.8
|
|
Cooling degree days
(Oahu)
|
|
1,206
|
|
1,135
|
|
4,909
|
|
4,506
|
|
Average fuel oil cost
per barrel
|
|
$
|
122.04
|
|
$
|
133.88
|
|
$
|
129.65
|
|
$
|
131.10
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended December 31
|
|
|
|
|
|
2014
|
|
2013
|
|
Return on average
common equity (%) (simple average)
|
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
|
|
|
|
8.74
|
|
7.98
|
|
Hawaii
Electric Light
|
|
|
|
|
|
6.71
|
|
7.41
|
|
Maui
Electric
|
|
|
|
|
|
8.81
|
|
8.91
|
|
Hawaiian
Electric Consolidated
|
|
|
|
|
|
8.40
|
|
8.02
|
|
|
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, 2014 (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, 2014, June 30, 2014 and September
30, 2014 , as updated by SEC Forms 8-K.
|
|
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
December
31
|
|
2014
|
|
2013
|
|
(dollars in
thousands, except par value)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Property, plant
and equipment
|
|
|
|
|
|
Utility property,
plant and equipment
|
|
|
|
|
|
Land
|
|
$
|
52,299
|
|
$
|
51,883
|
|
Plant and
equipment
|
|
6,009,482
|
|
5,701,875
|
|
Less accumulated
depreciation
|
|
(2,175,510)
|
|
(2,111,229)
|
|
Construction in
progress
|
|
158,616
|
|
143,233
|
|
Utility property,
plant and equipment, net
|
|
4,044,887
|
|
3,785,762
|
|
Nonutility property,
plant and equipment, less accumulated depreciation of $1,227 and
$1,223 at respective dates
|
|
6,563
|
|
6,567
|
|
Total property,
plant and equipment, net
|
|
4,051,450
|
|
3,792,329
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
13,762
|
|
62,825
|
|
Customer accounts
receivable, net
|
|
158,484
|
|
175,448
|
|
Accrued unbilled
revenues, net
|
|
137,374
|
|
144,124
|
|
Other accounts
receivable, net
|
|
4,283
|
|
14,062
|
|
Fuel oil stock, at
average cost
|
|
106,046
|
|
134,087
|
|
Materials and
supplies, at average cost
|
|
57,250
|
|
59,044
|
|
Prepayments and
other
|
|
66,383
|
|
52,857
|
|
Regulatory
assets
|
|
71,421
|
|
69,738
|
|
Total current
assets
|
|
615,003
|
|
712,185
|
|
Other long-term
assets
|
|
|
|
|
|
Regulatory
assets
|
|
833,843
|
|
506,186
|
|
Unamortized debt
expense
|
|
8,323
|
|
9,003
|
|
Other
|
|
81,838
|
|
67,426
|
|
Total other
long-term assets
|
|
924,004
|
|
582,615
|
|
Total
assets
|
|
$
|
5,590,457
|
|
$
|
5,087,129
|
|
Capitalization and
liabilities
|
|
|
|
|
|
Capitalization
|
|
|
|
|
|
Common stock ($6 2/3
par value, authorized 50,000,000 shares; outstanding 15,805,327 in
2014 and 15,429,105 shares in 2013)
|
|
$
|
105,388
|
|
$
|
102,880
|
|
Premium on capital
stock
|
|
578,938
|
|
541,452
|
|
Retained
earnings
|
|
997,773
|
|
948,624
|
|
Accumulated other
comprehensive income, net of income taxes-retirement benefit
plans
|
|
45
|
|
608
|
|
Common stock
equity
|
|
1,682,144
|
|
1,593,564
|
|
Cumulative preferred
stock — not subject to mandatory redemption
|
|
34,293
|
|
34,293
|
|
Long-term debt,
net
|
|
1,206,546
|
|
1,206,545
|
|
Total
capitalization
|
|
2,922,983
|
|
2,834,402
|
|
Current
liabilities
|
|
|
|
|
|
Current portion of
long-term debt
|
|
—
|
|
11,400
|
|
Accounts
payable
|
|
163,934
|
|
189,559
|
|
Interest and
preferred dividends payable
|
|
22,316
|
|
21,652
|
|
Taxes
accrued
|
|
250,402
|
|
249,445
|
|
Regulatory
liabilities
|
|
632
|
|
1,916
|
|
Other
|
|
65,146
|
|
63,881
|
|
Total current
liabilities
|
|
502,430
|
|
537,853
|
|
Deferred credits
and other liabilities
|
|
|
|
|
|
Deferred income
taxes
|
|
602,872
|
|
507,161
|
|
Regulatory
liabilities
|
|
344,217
|
|
347,383
|
|
Unamortized tax
credits
|
|
79,492
|
|
73,539
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
595,395
|
|
262,162
|
|
Other
|
|
76,636
|
|
91,735
|
|
Total deferred
credits and other liabilities
|
|
1,698,612
|
|
1,281,980
|
|
Contributions in aid
of construction
|
|
466,432
|
|
432,894
|
|
Total
capitalization and liabilities
|
|
$
|
5,590,457
|
|
$
|
5,087,129
|
|
|
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, 2014 (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, 2014, June 30, 2014 and September
30, 2014, 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
|
2014
|
|
2013
|
|
(in thousands)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
$
|
139,636
|
|
$
|
124,924
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation of
property, plant and equipment
|
166,387
|
|
154,025
|
|
Other
amortization
|
8,091
|
|
5,077
|
|
Increase in deferred
income taxes
|
82,947
|
|
64,507
|
|
Change in tax
credits, net
|
6,062
|
|
7,017
|
|
Allowance for equity
funds used during construction
|
(6,771)
|
|
(5,561)
|
|
Change in cash
overdraft
|
(1,038)
|
|
1,038
|
|
Changes in assets and
liabilities
|
|
|
|
|
Decrease in accounts
receivable
|
26,743
|
|
49,445
|
|
Decrease (increase)
in accrued unbilled revenues
|
6,750
|
|
(9,826)
|
|
Decrease in fuel oil
stock
|
28,041
|
|
27,332
|
|
Decrease (increase)
in materials and supplies
|
1,794
|
|
(7,959)
|
|
Increase in
regulatory assets
|
(17,000)
|
|
(65,461)
|
|
Decrease in accounts
payable
|
(90,632)
|
|
(20,828)
|
|
Change in prepaid and
accrued income taxes and revenue taxes
|
(4,036)
|
|
(2,028)
|
|
Increase (decrease)
in defined benefit pension and other postretirement
benefit plans liability
|
(961)
|
|
2,240
|
|
Change in other
assets and liabilities
|
(62,959)
|
|
(31,499)
|
|
Net cash provided
by operating activities
|
283,054
|
|
292,443
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
(311,574)
|
|
(342,485)
|
|
Contributions in aid
of construction
|
41,806
|
|
32,160
|
|
Other
|
—
|
|
(230)
|
|
Net cash used in
investing activities
|
(269,768)
|
|
(310,555)
|
|
Cash flows from
financing activities
|
|
|
|
|
Common stock
dividends
|
(88,492)
|
|
(81,578)
|
|
Preferred stock
dividends of Hawaiian Electric and subsidiaries
|
(1,995)
|
|
(1,995)
|
|
Proceeds from
issuance of common stock
|
40,000
|
|
78,500
|
|
Proceeds from
issuance of long-term debt
|
—
|
|
236,000
|
|
Repayment of
long-term debt
|
(11,400)
|
|
(166,000)
|
|
Other
|
(462)
|
|
(1,149)
|
|
Net cash provided
by (used in) financing activities
|
(62,349)
|
|
63,778
|
|
Net increase
(decrease) in cash and cash equivalents
|
(49,063)
|
|
45,666
|
|
Cash and cash
equivalents, January 1
|
62,825
|
|
17,159
|
|
Cash and cash
equivalents, December 31
|
$
|
13,762
|
|
$
|
62,825
|
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto incorporated by reference in
Hawaiian Electric's Annual Report on SEC Form 10-K for the year
ended December 31, 2014 (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, 2014,
June 30, 2014 and September 30, 2014 , as updated by SEC Forms
8-K.
|
|
|
American Savings
Bank, F.S.B.
STATEMENTS OF INCOME
DATA
(Unaudited)
|
|
|
|
Three months
ended
|
|
Years
ended December 31,
|
|
(in thousands)
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
2014
|
|
2013
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
46,276
|
|
$
|
45,532
|
|
$
|
43,405
|
|
$
|
179,341
|
|
$
|
172,969
|
|
Interest and
dividends on investment securities
|
|
3,187
|
|
2,773
|
|
3,372
|
|
11,945
|
|
13,095
|
|
Total interest and
dividend income
|
|
49,463
|
|
48,305
|
|
46,777
|
|
191,286
|
|
186,064
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposit
liabilities
|
|
1,303
|
|
1,312
|
|
1,222
|
|
5,077
|
|
5,092
|
|
Interest on other
borrowings
|
|
1,468
|
|
1,438
|
|
1,437
|
|
5,731
|
|
4,985
|
|
Total interest
expense
|
|
2,771
|
|
2,750
|
|
2,659
|
|
10,808
|
|
10,077
|
|
Net interest
income
|
|
46,692
|
|
45,555
|
|
44,118
|
|
180,478
|
|
175,987
|
|
Provision for loan
losses
|
|
2,560
|
|
1,550
|
|
554
|
|
6,126
|
|
1,507
|
|
Net interest
income after provision for loan losses
|
|
44,132
|
|
44,005
|
|
43,564
|
|
174,352
|
|
174,480
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
Fees from other
financial services
|
|
5,760
|
|
5,642
|
|
5,732
|
|
21,747
|
|
27,099
|
|
Fee income on deposit
liabilities
|
|
5,074
|
|
5,109
|
|
4,797
|
|
19,249
|
|
18,363
|
|
Fee income on other
financial products
|
|
1,806
|
|
1,971
|
|
2,117
|
|
8,131
|
|
8,405
|
|
Bank-owned life
insurance
|
|
1,004
|
|
1,000
|
|
978
|
|
3,949
|
|
3,928
|
|
Mortgage banking
income
|
|
1,164
|
|
875
|
|
1,413
|
|
2,913
|
|
8,309
|
|
Gains on sale of
securities
|
|
—
|
|
—
|
|
—
|
|
2,847
|
|
1,226
|
|
Other income,
net
|
|
455
|
|
634
|
|
492
|
|
2,375
|
|
4,753
|
|
Total noninterest
income
|
|
15,263
|
|
15,231
|
|
15,529
|
|
61,211
|
|
72,083
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
19,835
|
|
19,892
|
|
22,195
|
|
79,885
|
|
82,910
|
|
Occupancy
|
|
4,238
|
|
4,517
|
|
4,197
|
|
17,197
|
|
16,747
|
|
Data
processing
|
|
2,975
|
|
2,684
|
|
2,970
|
|
11,690
|
|
10,952
|
|
Services
|
|
2,561
|
|
2,580
|
|
2,160
|
|
10,269
|
|
9,015
|
|
Equipment
|
|
1,638
|
|
1,672
|
|
1,826
|
|
6,564
|
|
7,295
|
|
Office supplies,
printing and postage
|
|
1,602
|
|
1,415
|
|
1,427
|
|
6,089
|
|
4,233
|
|
Marketing
|
|
1,309
|
|
948
|
|
1,319
|
|
3,999
|
|
3,373
|
|
FDIC
insurance
|
|
820
|
|
840
|
|
748
|
|
3,261
|
|
3,253
|
|
Other
expense
|
|
7,042
|
|
5,116
|
|
4,457
|
|
20,990
|
|
21,726
|
|
Total noninterest
expense
|
|
42,020
|
|
39,664
|
|
41,299
|
|
159,944
|
|
159,504
|
|
Income before
income taxes
|
|
17,375
|
|
19,572
|
|
|
17,794
|
|
75,619
|
|
87,059
|
|
Income
taxes
|
|
5,358
|
|
6,312
|
|
5,610
|
|
24,127
|
|
29,525
|
|
Net
income
|
|
$
|
12,017
|
|
$
|
13,260
|
|
$
|
12,184
|
|
$
|
51,492
|
|
$
|
57,534
|
|
Comprehensive
income
|
|
$
|
5,323
|
|
$
|
11,811
|
|
$
|
23,802
|
|
$
|
47,131
|
|
$
|
60,733
|
|
OTHER BANK
INFORMATION (annualized %, except as of period end)
|
|
|
|
|
|
Return on average
assets
|
|
0.87
|
|
0.98
|
|
0.94
|
|
0.95
|
|
1.13
|
|
Return on average
equity
|
|
8.84
|
|
9.87
|
|
9.56
|
|
9.62
|
|
11.38
|
|
Return on average
tangible common equity
|
|
10.42
|
|
11.65
|
|
11.39
|
|
11.37
|
|
13.59
|
|
Net interest
margin
|
|
3.65
|
|
3.62
|
|
3.67
|
|
3.62
|
|
3.74
|
|
Net charge-offs to
average loans outstanding
|
|
0.04
|
|
0.04
|
|
0.15
|
|
0.01
|
|
0.09
|
|
As of period
end
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to loans outstanding and real estate owned *
|
|
0.85
|
|
0.88
|
|
1.20
|
|
|
|
|
|
Allowance for loan
losses to loans outstanding
|
|
1.03
|
|
1.00
|
|
0.97
|
|
|
|
|
|
Tier-1 leverage ratio
*
|
|
8.9
|
|
9.1
|
|
9.1
|
|
|
|
|
|
Total risk-based
capital ratio *
|
|
12.3
|
|
12.6
|
|
12.1
|
|
|
|
|
|
Tangible common
equity to total assets
|
|
8.25
|
|
8.49
|
|
8.50
|
|
|
|
|
|
Dividend paid to HEI
(via ASHI) ($ in millions)
|
|
9
|
|
9
|
|
10
|
|
36
|
|
40
|
|
|
* 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, 2014 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2014, June 30, 2014 and September 30, 2014, as updated by SEC Forms
8-K.
|
|
|
American Savings
Bank, F.S.B.
BALANCE SHEETS
DATA
(Unaudited)
|
|
|
December 31
|
|
|
2014
|
|
|
|
2013
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
|
$
|
107,233
|
|
|
|
$
|
108,998
|
|
Interest-bearing
deposits
|
|
|
54,230
|
|
|
|
47,605
|
|
Available-for-sale
investment securities, at fair value
|
|
|
550,394
|
|
|
|
529,007
|
|
Stock in Federal Home
Loan Bank of Seattle, at cost
|
|
|
69,302
|
|
|
|
92,546
|
|
Loans receivable held
for investment
|
|
|
4,434,651
|
|
|
|
4,150,229
|
|
Allowance for loan
losses
|
|
|
(45,618)
|
|
|
|
(40,116)
|
|
Net loans
|
|
|
4,389,033
|
|
|
|
4,110,113
|
|
Loans held for sale,
at lower of cost or fair value
|
|
|
8,424
|
|
|
|
5,302
|
|
Other
|
|
|
304,435
|
|
|
|
268,063
|
|
Goodwill
|
|
|
82,190
|
|
|
|
82,190
|
|
Total
assets
|
|
|
$
|
5,565,241
|
|
|
|
$
|
5,243,824
|
|
Liabilities and
shareholder's equity
|
|
|
|
|
|
|
|
|
Deposit
liabilities–noninterest-bearing
|
|
|
$
|
1,342,794
|
|
|
|
$
|
1,214,418
|
|
Deposit
liabilities–interest-bearing
|
|
|
3,280,621
|
|
|
|
3,158,059
|
|
Other
borrowings
|
|
|
290,656
|
|
|
|
244,514
|
|
Other
|
|
|
116,527
|
|
|
|
105,679
|
|
Total
liabilities
|
|
|
5,030,598
|
|
|
|
4,722,670
|
|
Common
stock
|
|
|
1
|
|
|
|
1
|
|
Additional paid in
capital
|
|
|
338,411
|
|
|
|
336,053
|
|
Retained
earnings
|
|
|
212,789
|
|
|
|
197,297
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
|
|
|
|
|
|
|
Net unrealized gains
(losses) on securities
|
$
|
462
|
|
|
|
$
|
(3,663)
|
|
|
|
Retirement benefit
plans
|
(17,020)
|
|
(16,558)
|
|
(8,534)
|
|
(12,197)
|
|
Total
shareholder's equity
|
|
|
534,643
|
|
|
|
521,154
|
|
Total liabilities
and shareholder's equity
|
|
|
$
|
5,565,241
|
|
|
|
$
|
5,243,824
|
|
|
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, 2014 (when filed) and HEI's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31,
2014, June 30, 2014 and September 30, 2014, 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 and diluted earnings per share
for HEI consolidated and the adjusted return on average common
equity (ROACE).
The reconciling adjustment from GAAP earnings to core earnings
is limited to the costs related to the pending merger between HEI
and NextEra Energy, Inc. For more information on the pending
merger, see HEI's Form 8-K filed on December
4, 2014. 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
December 31
|
|
Years ended
December 31
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
HEI CONSOLIDATED
NET INCOME
|
|
|
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
33.2
|
|
$
|
39.0
|
|
$
|
168.3
|
|
$
|
161.5
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc.
|
4.3
|
|
—
|
|
4.9
|
|
—
|
|
Non-GAAP
(core)
|
$
|
37.5
|
|
$
|
39.0
|
|
$
|
173.2
|
|
$
|
161.5
|
|
HEI CONSOLIDATED
DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
0.32
|
|
$
|
0.39
|
|
$
|
1.64
|
|
$
|
1.62
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc.
|
0.04
|
|
—
|
|
0.05
|
|
—
|
|
Non-GAAP (core)
diluted earnings per common share
|
$
|
0.36
|
|
$
|
0.39
|
|
$
|
1.68
|
|
$
|
1.62
|
|
HEI CONSOLIDATED
RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
|
|
Based on
GAAP
|
|
|
|
|
9.6%
|
|
9.7%
|
|
Based on non-GAAP
(core)2
|
|
|
|
|
9.8%
|
|
9.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP1 TO NON-GAAP MEASURES
|
|
Hawaiian Electric
Company, Inc. and Subsidiaries
|
|
Unaudited
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Three months ended
December 31
|
|
Years ended
December 31
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED OTHER OPERATION AND MAINTENANCE (O&M)
EXPENSE
|
|
|
GAAP (as
reported)
|
$
|
115.1
|
|
$
|
102.5
|
|
$
|
410.6
|
|
$
|
403.3
|
|
Excluding
O&M-related net income neutral items3
|
2.5
|
|
2.9
|
|
10.0
|
|
8.0
|
|
Adjusted other
operations and maintenance expense (Non-GAAP
measure)
|
$
|
112.6
|
|
$
|
99.6
|
|
$
|
400.6
|
|
$
|
395.3
|
|
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
|
|
|
|
3 Expenses
covered by surcharges or by third parties recorded in
revenues
|
|
|
|
Contact:
|
Clifford H.
Chen
|
Telephone: (808)
543-7300
|
|
Manager, Investor
Relations & Strategic Planning
|
E-mail:
ir@hei.com
|
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SOURCE Hawaiian Electric Industries, Inc.