HONOLULU, May 6, 2015 /PRNewswire/ -- Hawaiian
Electric Industries, Inc. (NYSE - HE) (HEI) today reported
consolidated net income for common stock for the first quarter of
2015 of $31.9 million, or
$0.31 diluted earnings per share
(EPS). Excluding $4.7 million
after-tax of merger-related costs associated with the pending
merger with NextEra Energy, Inc. and the spin-off of ASB Hawaii,
core earnings1 for the first quarter of 2015 were
$36.6 million or $0.35 EPS compared to $45.8 million or $0.45 EPS for the same quarter last year.
"First quarter earnings were in line with our expectations. Our
utility continues to move ahead with its clean energy
transformation and leads the nation with an estimated 12 percent of
customers with rooftop solar systems and 21 percent of energy from
renewable resources. Working collaboratively and innovatively with
industry partners and other interested stakeholders, we can achieve
a sustainable clean energy future for Hawaii," said Constance H. Lau, HEI president and chief
executive officer.
"Our bank, American Savings Bank, continued to deliver solid
results with excellent deposit growth and a high credit quality
loan portfolio in a strong Hawaii
economy. American's solid results enabled it to pay dividends of
$7.5 million to HEI in the
quarter while maintaining healthy capital levels," added Lau.
"With regard to our bank spin and utility merger transactions,
we made good progress in the quarter. During April, both
NextEra Energy and the Hawaiian Electric companies hosted
informational open houses across Hawaii to allow our communities the
opportunity to ask questions and engage with NextEra Energy in what
we hope is the beginning of a long and beneficial relationship.
NextEra Energy has a proven track record of lowering customer
bills, and we cannot imagine a better partner to help us accelerate
Hawaii's clean energy
transformation," said Lau. Federal Energy Regulatory
Commission approval was received in March, and shareholders will
vote on the merger on May 12. In
addition, the bank accomplished an important step towards its
planned spin-off by filing its Form 10 with the Securities and
Exchange Commission.
HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH
EXPECTATIONS
Hawaiian Electric Company's2 net income for the first
quarter of 2015 was $26.9 million.
Excluding $0.3 million after-tax of
merger-related costs associated with the pending merger with
NextEra Energy, Inc., core earnings3 for the first
quarter of 2015 were $27.1 million
compared to $35.4 million for
the same quarter last year. The $8.3
million decline was mainly the result of higher other
operations and maintenance (O&M) expense in the first quarter
of 2015 compared to the prior year. Further details of the net
income drivers are mainly as follows on an after-tax basis:
- $9 million higher other
operations and maintenance (O&M) expense4 primarily
due to:
- $3 million higher transmission,
distribution and generation maintenance costs;
- $1 million higher overhaul costs
in the first quarter of 2015 compared to the prior year quarter
that included no major overhauls;
- $1 million higher bad debt
reserves for one customer account;
- $1 million higher consulting
costs for our energy transformation plans;
- $1 million accrued costs for
damage to combined heat and power generating unit;
- $1 million higher employee
benefit costs; and
- $1 million higher other
expenses
- $2 million higher depreciation
expense in 2015 as a result of increasing investments for the
integration of more renewable energy, improved customer reliability
and greater system efficiency.
These decreases were partially offset (on an after-tax basis) by
$3 million higher net
revenues5 compared to the first quarter of 2014
primarily due to the $4 million greater estimated recovery of
costs for reliability and clean energy investments less
$1 million due to reduced fuel efficiency performance of the
generation units on Oahu and
Hawaii Island in the first quarter of 2015 stemming from the
increased integration of intermittent renewable energy.
AMERICAN SAVINGS BANK CONTINUES TO DELIVER SOLID
PERFORMANCE
American Savings Bank's (American) net income for the first
quarter of 2015 was $13.5 million compared to $12.1 million in the fourth (or linked) quarter
of 2014 and $14.4 million in the
first quarter of 2014. First quarter 2015 net income was
$1.4 million higher than the linked
quarter primarily driven by the following on an after-tax
basis:
- $1 million lower provision for
loan losses; and
- $1 million higher noninterest
income, especially higher mortgage banking income from gains on the
sale of newly originated mortgages.
These were partially offset by $1 million (after-tax) lower
net interest income primarily due to interest and fees related to
commercial loan payoffs in the fourth quarter of 2014.
Compared to the first quarter of 2014, net income declined
by $0.9 million. The decline was primarily driven by the
following on an after-tax basis:
- $2 million gain in the first
quarter of 2014 on the sale of the municipal bond securities
portfolio; and
- $2 million higher noninterest
expense in the first quarter of 2015 due primarily to higher
pension expense from the effect of a lower discount rate and
changes in national mortality tables.
These were largely offset by (on an after-tax basis):
- $1 million higher mortgage
banking income and fee income on deposits in the first quarter of
2015; and
- $1 million higher net interest
income in the first quarter of 2015 driven by the growth in the
lending portfolio.
Overall, American achieved solid profitability in the first
quarter of 2015 with a return on average equity of 9.96% and a
return on average assets of 0.96%.
For additional information, refer to the American news release
issued on April 30, 2015.
HOLDING AND OTHER COMPANIES
The holding and other companies' net losses were $8.5 million in the first quarter of 2015.
Excluding costs related to the pending merger with NextEra Energy,
Inc. and the spin-off of ASB Hawaii, the first quarter of 2015 net
loss was $4.0 million, consistent
with the first quarter of 2014.
2015 EPS GUIDANCE
The company is maintaining its 2015 EPS guidance range of
$1.64 to $1.74, excluding any
expenses related to the pending merger and spin-off transactions,
but is now guiding towards the lower end of the range. This is the
result of the early equity forward settlement of 4.7 million shares
in March 2015 and the Hawaii Public
Utilities Commission (PUC) decision and order which provides
clarity on the Schedule B decoupling mechanism issues. For
additional information, refer to HEI's Form 8-K filed on
April 16, 2015.
We reaffirm our key assumptions for 2015 EPS guidance disclosed
on February 12, 2015, in our yearend
earnings call except for the following. The utilities have
re-evaluated the timing of their 2015-2017 net capital
expenditures, revising their prior 3-year forecast from a range of
$1.1 billion to $2.0 billion downward
to a range of $0.8 billion to $1.7
billion. 2015 is the transitional year under the
revised rate adjustment mechanism (RAM) and our utility will
propose a new approval process for projects exceeding the new GDPPI
cap under the revised mechanism. Given the change to the RAM,
the number of other high priority issues currently before the PUC
and our continuing refinement of our transformation plans, we have
reduced our forecast for 2015 net capital expenditures from
$420 million to $250 million. As a result, the utility will
not need the previously estimated $60
million HEI equity infusion and is re-evaluating the amount
of debt needed in 2015. The 2015 rate base growth is now
expected to be between 1.5% to 3.0%.
BOARD DECLARES QUARTERLY DIVIDEND
On May 5, 2015, the board of
directors maintained HEI's quarterly cash dividend of $0.31 cents per share, payable on June 10, 2015, to shareholders of record at the
close of business on May 22, 2015
(ex-dividend date is May 20, 2015).
The dividend is equivalent to an annual rate of $1.24 per
share.
Dividends have been paid continuously since 1901. At the
indicated annual dividend rate and the closing share price on
May 5, 2015 of $31.19, HEI's yield is 4.0%.
NO WEBCAST AND CONFERENCE CALL
MAY 12, 2015 SPECIAL SHAREHOLDER MEETING
Due to the upcoming special meeting of shareholders to be held
on May 12, 2015, there will not be a
webcast and conference call to discuss first quarter results and
2015 earnings per share guidance this quarter.
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 15 and 16 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 Annual Report on Form 10-K for the year ended
December 31, 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 merger-related
costs after-tax for the first quarter of 2015. See the "Explanation
of HEI's Use of Certain Unaudited Non-GAAP measures" and the
related reconciliation.
2 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.
3 Non-GAAP measure which excludes merger-related costs
after-tax for the first quarter of 2015. See the "Explanation of
HEI's Use of Certain Unaudited Non-GAAP measures" and the related
reconciliation.
4 Excludes net income neutral expenses covered by
surcharges or by third parties of $2
million in both the first quarter of 2015 and 2014 and costs
related to the pending merger in 2015. See "Explanation of
HEI's Use of Certain Unaudited Non-GAAP measures" and the related
reconciliation.
5 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.
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)
|
|
|
Three months ended
March 31
|
|
(in thousands, except per share amounts)
|
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
Electric
utility
|
|
$
|
573,442
|
|
|
$
|
720,062
|
|
|
Bank
|
|
64,348
|
|
|
63,619
|
|
|
Other
|
|
72
|
|
|
68
|
|
|
Total
revenues
|
|
637,862
|
|
|
783,749
|
|
|
Expenses
|
|
|
|
|
|
Electric
utility
|
|
515,806
|
|
|
649,396
|
|
|
Bank
|
|
43,717
|
|
|
41,088
|
|
|
Other
|
|
8,833
|
|
|
4,051
|
|
|
Total
expenses
|
|
568,356
|
|
|
694,535
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Electric
utility
|
|
57,636
|
|
|
70,666
|
|
|
Bank
|
|
20,631
|
|
|
22,531
|
|
|
Other
|
|
(8,761)
|
|
|
(3,983)
|
|
|
Total operating
income
|
|
69,506
|
|
|
89,214
|
|
|
Interest expense,
net—other than on deposit liabilities and other bank
borrowings
|
|
(19,100)
|
|
|
(19,456)
|
|
|
Allowance for
borrowed funds used during construction
|
|
499
|
|
|
614
|
|
|
Allowance for equity
funds used during construction
|
|
1,413
|
|
|
1,609
|
|
|
Income before
income taxes
|
|
52,318
|
|
|
71,981
|
|
|
Income
taxes
|
|
19,979
|
|
|
25,721
|
|
|
Net
income
|
|
32,339
|
|
|
46,260
|
|
|
Preferred stock
dividends of subsidiaries
|
|
473
|
|
|
473
|
|
|
Net income for
common stock
|
|
$
|
31,866
|
|
|
$
|
45,787
|
|
|
Basic earnings per
common share
|
|
$
|
0.31
|
|
|
$
|
0.45
|
|
|
Diluted earnings
per common share
|
|
$
|
0.31
|
|
|
$
|
0.45
|
|
|
Dividends per
common share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
Weighted-average
number of common shares outstanding
|
|
103,281
|
|
|
101,382
|
|
|
Adjusted
weighted-average shares
|
|
103,567
|
|
|
102,165
|
|
|
Net income (loss)
for common stock by segment
|
|
|
|
|
|
Electric
utility
|
|
$
|
26,874
|
|
|
$
|
35,420
|
|
|
Bank
|
|
13,475
|
|
|
14,399
|
|
|
Other
|
|
(8,483)
|
|
|
(4,032)
|
|
|
Net income for
common stock
|
|
$
|
31,866
|
|
|
$
|
45,787
|
|
|
Comprehensive income
attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
35,924
|
|
|
$
|
46,954
|
|
|
Return on average
common equity (twelve months ended)1
|
|
8.5%
|
|
|
10.4%
|
|
|
|
Prior period
financial statements reflect the retrospective application of
Accounting Standards Update (ASU) No. 2014-01, "Investments-Equity
Method and Joint Ventures (Topic 323): Accounting for Investments
in Qualified Affordable Housing Projects," which was adopted as of
January 1, 2015 and did not have a material impact on the Company's
financial condition or results of operations.
|
|
|
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, ASB Hawaii, Inc.'s Form
10 filed with the SEC on March 30, 2015 and HEI's Quarterly Report
on SEC Form 10-Q for the quarter ended March 31, 2015 (when filed),
as updated by SEC Forms 8-K. Results of operations for interim
periods are not necessarily indicative of results to be expected
for future interim periods or the full year.
|
|
|
1 On
a core basis, 2015 and 2014 returns on average common equity
(twelve months ended March 31) were 9.0% and 10.4%,
respectively. See reconciliation of GAAP to non-GAAP
measures.
|
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(Unaudited)
|
|
|
(dollars in thousands)
|
|
March 31,
2015
|
|
|
December 31,
2014
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
292,168
|
|
|
$
|
175,542
|
|
Accounts receivable
and unbilled revenues, net
|
|
255,365
|
|
|
313,696
|
|
Available-for-sale
investment securities, at fair value
|
|
590,648
|
|
|
550,394
|
|
Stock in Federal Home
Loan Bank of Seattle, at cost
|
|
63,711
|
|
|
69,302
|
|
Loans receivable held
for investment, net
|
|
4,401,504
|
|
|
4,389,033
|
|
Loans held for sale,
at lower of cost or fair value
|
|
9,906
|
|
|
8,424
|
|
Property, plant and
equipment, net of accumulated depreciation of $2,258,065
and
|
|
|
|
|
|
|
$2,250,950 at
the respective dates
|
|
4,190,835
|
|
|
4,148,774
|
|
Regulatory
assets
|
|
905,589
|
|
|
905,264
|
|
Other
|
|
481,531
|
|
|
542,523
|
|
Goodwill
|
|
82,190
|
|
|
82,190
|
|
Total
assets
|
|
$
|
11,273,447
|
|
|
$
|
11,185,142
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
|
167,784
|
|
|
$
|
186,425
|
|
Interest and
dividends payable
|
|
25,225
|
|
|
25,336
|
|
Deposit
liabilities
|
|
4,751,328
|
|
|
4,623,415
|
|
Short-term
borrowings—other than bank
|
|
30,500
|
|
|
118,972
|
|
Other bank
borrowings
|
|
312,094
|
|
|
290,656
|
|
Long-term debt,
net—other than bank
|
|
1,506,546
|
|
|
1,506,546
|
|
Deferred income
taxes
|
|
640,778
|
|
|
633,570
|
|
Regulatory
liabilities
|
|
351,712
|
|
|
344,849
|
|
Contributions in aid
of construction
|
|
474,385
|
|
|
466,432
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
624,555
|
|
|
632,845
|
|
Other
|
|
456,338
|
|
|
531,230
|
|
Total
liabilities
|
|
9,341,245
|
|
|
9,360,276
|
|
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:
107,417,644 shares and 102,565,266 shares at the respective
dates
|
|
1,624,549
|
|
|
1,521,297
|
|
Retained
earnings
|
|
296,680
|
|
|
296,654
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
(23,320)
|
|
|
(27,378)
|
|
Total
shareholders' equity
|
|
1,897,909
|
|
|
1,790,573
|
|
Total liabilities
and shareholders' equity
|
|
$
|
11,273,447
|
|
|
$
|
11,185,142
|
|
|
Prior period
financial statements reflect the retrospective application of ASU
No. 2014-01, "Investments-Equity Method and Joint Ventures (Topic
323): Accounting for Investments in Qualified Affordable Housing
Projects," which was adopted as of January 1, 2015 and did not have
a material impact on the Company's financial condition or results
of operations.
|
|
|
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, ASB Hawaii, Inc.'s Form
10 filed with the SEC on March 30, 2015 and HEI's Quarterly Report
on SEC Form 10-Q for the quarter ended March 31, 2015 (when filed),
as updated by SEC Forms 8-K.
|
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
Three months ended
March 31
|
2015
|
|
2014
|
|
(in thousands)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
$
|
32,339
|
|
|
$
|
46,260
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation of
property, plant and equipment
|
45,865
|
|
|
43,181
|
|
Other
amortization
|
1,362
|
|
|
1,609
|
|
Provision for loan
losses
|
614
|
|
|
995
|
|
Loans receivable
originated and purchased, held for sale
|
(79,070)
|
|
|
(46,998)
|
|
Proceeds from sale of
loans receivable, held for sale
|
78,332
|
|
|
48,720
|
|
Increase in deferred
income taxes
|
15,265
|
|
|
6,457
|
|
Excess tax benefits
from share-based payment arrangements
|
(968)
|
|
|
(164)
|
|
Allowance for equity
funds used during construction
|
(1,413)
|
|
|
(1,609)
|
|
Change in cash
overdraft
|
—
|
|
|
(1,038)
|
|
Changes in assets and
liabilities
|
|
|
|
|
Decrease in accounts
receivable and unbilled revenues, net
|
58,331
|
|
|
22,352
|
|
Decrease (increase)
in fuel oil stock
|
20,731
|
|
|
(34,260)
|
|
Increase in
regulatory assets
|
(10,827)
|
|
|
(9,258)
|
|
Decrease in accounts,
interest and dividends payable
|
(42,463)
|
|
|
(9,307)
|
|
Change in prepaid and
accrued income taxes and utility revenue taxes
|
(61,397)
|
|
|
(19,474)
|
|
Increase (decrease)
in defined benefit pension and other postretirement benefit plans
liability
|
123
|
|
|
(818)
|
|
Change in other
assets and liabilities
|
19,826
|
|
|
(27,227)
|
|
Net cash provided
by operating activities
|
76,650
|
|
|
19,421
|
|
Cash flows from
investing activities
|
|
|
|
|
Available-for-sale
investment securities purchased
|
(63,370)
|
|
|
(79,912)
|
|
Principal repayments
on available-for-sale investment securities
|
28,486
|
|
|
15,597
|
|
Proceeds from sale of
available-for-sale investment securities
|
—
|
|
|
79,564
|
|
Redemption of stock
from Federal Home Loan Bank of Seattle
|
5,590
|
|
|
5,848
|
|
Net increase in loans
held for investment
|
(12,524)
|
|
|
(37,887)
|
|
Proceeds from sale of
real estate acquired in settlement of loans
|
606
|
|
|
1,429
|
|
Capital
expenditures
|
(59,011)
|
|
|
(65,829)
|
|
Contributions in aid
of construction
|
9,145
|
|
|
6,958
|
|
Other
|
3,281
|
|
|
—
|
|
Net cash used in
investing activities
|
(87,797)
|
|
|
(74,232)
|
|
Cash flows from
financing activities
|
|
|
|
|
Net increase in
deposit liabilities
|
127,913
|
|
|
105,510
|
|
Net increase
(decrease) in short-term borrowings with original maturities of
three months or less
|
(88,472)
|
|
|
30,887
|
|
Net increase in
retail repurchase agreements
|
21,451
|
|
|
141
|
|
Excess tax benefits
from share-based payment arrangements
|
968
|
|
|
164
|
|
Net proceeds from
issuance of common stock
|
104,468
|
|
|
3,054
|
|
Common stock
dividends
|
(31,829)
|
|
|
(31,435)
|
|
Preferred stock
dividends of subsidiaries
|
(473)
|
|
|
(473)
|
|
Other
|
(6,253)
|
|
|
(3,953)
|
|
Net cash provided
by financing activities
|
127,773
|
|
|
103,895
|
|
Net increase in cash
and cash equivalents
|
116,626
|
|
|
49,084
|
|
Cash and cash
equivalents, beginning of period
|
175,542
|
|
|
220,036
|
|
Cash and cash
equivalents, end of period
|
$
|
292,168
|
|
|
$
|
269,120
|
|
|
Prior period
financial statements reflect the retrospective application of ASU
No. 2014-01, "Investments-Equity Method and Joint Ventures (Topic
323): Accounting for Investments in Qualified Affordable Housing
Projects," which was adopted as of January 1, 2015 and did not have
a material impact on the Company's financial condition or results
of operations.
|
|
|
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, ASB Hawaii, Inc.'s Form
10 filed with the SEC on March 30, 2015 and HEI's Quarterly Reports
on SEC Form 10-Q for the quarters ended March 31, 2015 (when
filed), as updated by SEC Forms 8-K.
|
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
(Unaudited)
|
|
|
|
Three months ended
March 31
|
|
(dollars
in thousands, except per barrel amounts)
|
|
2015
|
|
2014
|
|
Revenues
|
|
$
|
573,442
|
|
|
$
|
720,062
|
|
Expenses
|
|
|
|
|
|
Fuel oil
|
|
176,806
|
|
|
286,300
|
|
Purchased
power
|
|
136,007
|
|
|
164,916
|
|
Other operation and
maintenance
|
|
104,002
|
|
|
88,606
|
|
Depreciation
|
|
44,243
|
|
|
41,603
|
|
Taxes, other than
income taxes
|
|
54,748
|
|
|
67,971
|
|
Total
expenses
|
|
515,806
|
|
|
649,396
|
|
Operating
income
|
|
57,636
|
|
|
70,666
|
|
Allowance for equity
funds used during construction
|
|
1,413
|
|
|
1,609
|
|
Interest expense and
other charges, net
|
|
(16,325)
|
|
|
(15,723)
|
|
Allowance for
borrowed funds used during construction
|
|
499
|
|
|
614
|
|
Income before income
taxes
|
|
43,223
|
|
|
57,166
|
|
Income
taxes
|
|
15,850
|
|
|
21,247
|
|
Net
income
|
|
27,373
|
|
|
35,919
|
|
Preferred stock
dividends of subsidiaries
|
|
229
|
|
|
229
|
|
Net income
attributable to Hawaiian Electric
|
|
27,144
|
|
|
35,690
|
|
Preferred stock
dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
Net income for
common stock
|
|
$
|
26,874
|
|
|
$
|
35,420
|
|
Comprehensive
income attributable to Hawaiian Electric
|
|
$
|
26,896
|
|
|
$
|
35,429
|
|
OTHER ELECTRIC
UTILITY INFORMATION
|
|
|
|
|
|
Kilowatthour sales
(millions)
|
|
|
|
|
|
Hawaiian
Electric
|
|
1,527
|
|
|
1,595
|
|
Hawaii
Electric Light
|
|
253
|
|
|
260
|
|
Maui
Electric
|
|
264
|
|
|
271
|
|
|
2,044
|
|
|
2,126
|
|
Wet-bulb temperature
(Oahu average; degrees Fahrenheit)
|
|
66.5
|
|
|
67.1
|
|
Cooling degree days
(Oahu)
|
|
795
|
|
|
828
|
|
Average fuel oil cost
per barrel
|
|
$
|
86.60
|
|
|
$
|
131.15
|
|
|
|
|
|
|
Twelve months
ended March 31
|
|
2015
|
|
2014
|
|
Return on average
common equity (%) (simple average)
|
|
|
|
|
|
Hawaiian
Electric
|
|
8.03
|
|
|
9.21
|
|
Hawaii
Electric Light
|
|
6.18
|
|
|
7.64
|
|
Maui
Electric
|
|
8.87
|
|
|
7.68
|
|
Hawaiian
Electric Consolidated
|
|
7.84
|
|
|
8.69
|
|
|
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 and
the consolidated financial statements and the notes thereto in
Hawaiian Electric's Quarterly Report on SEC Form 10-Q for the
quarter ended March 31, 2015 (when filed), as updated by SEC Forms
8-K. Results of operations for interim periods are not necessarily
indicative of results to be expected for future interim periods or
the full year.
|
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(Unaudited)
|
|
|
(dollars in
thousands, except par value)
|
|
March 31,
2015
|
|
|
December 31,
2014
|
|
Assets
|
|
|
|
|
|
Property, plant
and equipment
|
|
|
|
|
|
Utility property,
plant and equipment
|
|
|
|
|
|
Land
|
|
$
|
52,022
|
|
|
$
|
52,299
|
|
Plant and
equipment
|
|
6,066,523
|
|
|
6,009,482
|
|
Less accumulated
depreciation
|
|
(2,189,090)
|
|
|
(2,175,510)
|
|
Construction in
progress
|
|
164,851
|
|
|
158,616
|
|
Utility property,
plant and equipment, net
|
|
4,094,306
|
|
|
4,044,887
|
|
Nonutility property,
plant and equipment, less accumulated depreciation of $1,228 and
$1,227 at respective dates
|
|
6,562
|
|
|
6,563
|
|
Total property,
plant and equipment, net
|
|
4,100,868
|
|
|
4,051,450
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
8,120
|
|
|
13,762
|
|
Customer accounts
receivable, net
|
|
124,995
|
|
|
158,484
|
|
Accrued unbilled
revenues, net
|
|
109,494
|
|
|
137,374
|
|
Other accounts
receivable, net
|
|
8,668
|
|
|
4,283
|
|
Fuel oil stock, at
average cost
|
|
85,315
|
|
|
106,046
|
|
Materials and
supplies, at average cost
|
|
58,607
|
|
|
57,250
|
|
Prepayments and
other
|
|
43,355
|
|
|
66,383
|
|
Regulatory
assets
|
|
102,745
|
|
|
71,421
|
|
Total current
assets
|
|
541,299
|
|
|
615,003
|
|
Other long-term
assets
|
|
|
|
|
|
Regulatory
assets
|
|
802,844
|
|
|
833,843
|
|
Unamortized debt
expense
|
|
8,216
|
|
|
8,323
|
|
Other
|
|
82,273
|
|
|
81,838
|
|
Total other
long-term assets
|
|
893,333
|
|
|
924,004
|
|
Total
assets
|
|
$
|
5,535,500
|
|
|
$
|
5,590,457
|
|
Capitalization and
liabilities
|
|
|
|
|
|
Capitalization
|
|
|
|
|
|
Common stock ($6 2/3
par value, authorized 50,000,000 shares; outstanding
15,805,327)
|
|
$
|
105,388
|
|
|
$
|
105,388
|
|
Premium on capital
stock
|
|
578,933
|
|
|
578,938
|
|
Retained
earnings
|
|
1,002,046
|
|
|
997,773
|
|
Accumulated other
comprehensive income, net of income taxes-retirement benefit
plans
|
|
67
|
|
|
45
|
|
Common stock
equity
|
|
1,686,434
|
|
|
1,682,144
|
|
Cumulative preferred
stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
Long-term debt,
net
|
|
1,206,546
|
|
|
1,206,546
|
|
Total
capitalization
|
|
2,927,273
|
|
|
2,922,983
|
|
Current
liabilities
|
|
|
|
|
|
Short-term borrowings
from non-affiliates
|
|
30,000
|
|
|
—
|
|
Accounts
payable
|
|
138,509
|
|
|
163,934
|
|
Interest and
preferred dividends payable
|
|
24,257
|
|
|
22,316
|
|
Taxes
accrued
|
|
182,872
|
|
|
250,402
|
|
Regulatory
liabilities
|
|
1,174
|
|
|
632
|
|
Other
|
|
65,989
|
|
|
65,146
|
|
Total current
liabilities
|
|
442,801
|
|
|
502,430
|
|
Deferred credits
and other liabilities
|
|
|
|
|
|
Deferred income
taxes
|
|
596,984
|
|
|
602,872
|
|
Regulatory
liabilities
|
|
350,538
|
|
|
344,217
|
|
Unamortized tax
credits
|
|
82,037
|
|
|
79,492
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
587,165
|
|
|
595,395
|
|
Other
|
|
74,317
|
|
|
76,636
|
|
Total deferred
credits and other liabilities
|
|
1,691,041
|
|
|
1,698,612
|
|
Contributions in aid
of construction
|
|
474,385
|
|
|
466,432
|
|
Total
capitalization and liabilities
|
|
$
|
5,535,500
|
|
|
$
|
5,590,457
|
|
|
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 and
the consolidated financial statements and the notes thereto in
Hawaiian Electric's Quarterly Report on SEC Form 10-Q for the
quarter ended March 31, 2015 (when filed), as updated by SEC Forms
8-K.
|
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
Three months ended
March 31
|
|
2015
|
|
|
2014
|
|
(in thousands)
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
|
|
$
|
27,373
|
|
|
$
|
35,919
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
44,243
|
|
|
41,603
|
|
Other
amortization
|
|
689
|
|
|
1,621
|
|
Increase in deferred
income taxes
|
|
15,132
|
|
|
20,344
|
|
Change in tax
credits, net
|
|
2,576
|
|
|
2,032
|
|
Allowance for equity
funds used during construction
|
|
(1,413)
|
|
|
(1,609)
|
|
Change in cash
overdraft
|
|
—
|
|
|
(1,038)
|
|
Changes in assets and
liabilities
|
|
|
|
|
|
Decrease in accounts
receivable
|
|
29,104
|
|
|
8,804
|
|
Decrease in accrued
unbilled revenues
|
|
27,880
|
|
|
12,260
|
|
Decrease (increase)
in fuel oil stock
|
|
20,731
|
|
|
(34,260)
|
|
Increase in materials
and supplies
|
|
(1,357)
|
|
|
(1,045)
|
|
Increase in
regulatory assets
|
|
(10,827)
|
|
|
(9,258)
|
|
Decrease in accounts
payable
|
|
(49,136)
|
|
|
(16,024)
|
|
Change in prepaid and
accrued income taxes and revenue taxes
|
|
(63,696)
|
|
|
(47,526)
|
|
Increase (decrease)
in defined benefit pension and other postretirement benefit
|
|
|
|
|
|
|
plans
liability
|
|
110
|
|
|
(205)
|
|
Change in other
assets and liabilities
|
|
(8,522)
|
|
|
(10,981)
|
|
Net cash provided
by operating activities
|
|
32,887
|
|
|
637
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Capital
expenditures
|
|
(54,358)
|
|
|
(64,462)
|
|
Contributions in aid
of construction
|
|
9,145
|
|
|
6,958
|
|
Net cash used in
investing activities
|
|
(45,213)
|
|
|
(57,504)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Common stock
dividends
|
|
(22,601)
|
|
|
(22,707)
|
|
Preferred stock
dividends of Hawaiian Electric and subsidiaries
|
|
(499)
|
|
|
(499)
|
|
Net increase in
short-term borrowings from non-affiliates and affiliate with
original
|
|
|
|
|
|
|
maturities of three
months or less
|
|
30,000
|
|
|
34,996
|
|
Other
|
|
(216)
|
|
|
(389)
|
|
Net cash provided
by financing activities
|
|
6,684
|
|
|
11,401
|
|
Net decrease in cash
and cash equivalents
|
|
(5,642)
|
|
|
(45,466)
|
|
Cash and cash
equivalents, beginning of period
|
|
13,762
|
|
|
62,825
|
|
Cash and cash
equivalents, end of period
|
|
$
|
8,120
|
|
|
$
|
17,359
|
|
|
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 and the consolidated financial statements
and the notes thereto in Hawaiian Electric's Quarterly Report on
SEC Form 10-Q for the quarter ended March 31, 2015 (when filed), as
updated by SEC Forms 8-K.
|
|
American Savings
Bank, F.S.B.
|
|
STATEMENTS OF INCOME
DATA
|
|
(Unaudited)
|
|
|
|
Three months
ended
|
|
(in thousands)
|
|
March 31,
2015
|
|
December 31,
2014
|
|
March 31,
2014
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
45,198
|
|
|
$
|
46,276
|
|
|
$
|
43,682
|
|
Interest and
dividends on investment securities
|
|
3,051
|
|
|
3,187
|
|
|
3,035
|
|
Total interest and
dividend income
|
|
48,249
|
|
|
49,463
|
|
|
46,717
|
|
Interest
expense
|
|
|
|
|
|
|
|
Interest on deposit
liabilities
|
|
1,260
|
|
|
1,303
|
|
|
1,225
|
|
Interest on other
borrowings
|
|
1,466
|
|
|
1,468
|
|
|
1,405
|
|
Total interest
expense
|
|
2,726
|
|
|
2,771
|
|
|
2,630
|
|
Net interest
income
|
|
45,523
|
|
|
46,692
|
|
|
44,087
|
|
Provision for loan
losses
|
|
614
|
|
|
2,560
|
|
|
995
|
|
Net interest
income after provision for loan losses
|
|
44,909
|
|
|
44,132
|
|
|
43,092
|
|
Noninterest
income
|
|
|
|
|
|
|
|
Fees from other
financial services
|
|
5,355
|
|
|
5,760
|
|
|
5,128
|
|
Fee income on deposit
liabilities
|
|
5,315
|
|
|
5,074
|
|
|
4,421
|
|
Fee income on other
financial products
|
|
1,889
|
|
|
1,806
|
|
|
2,290
|
|
Bank-owned life
insurance
|
|
983
|
|
|
1,004
|
|
|
963
|
|
Mortgage banking
income
|
|
1,822
|
|
|
1,164
|
|
|
628
|
|
Gains on sale of
investment securities
|
|
—
|
|
|
—
|
|
|
2,847
|
|
Other income,
net
|
|
735
|
|
|
455
|
|
|
625
|
|
Total noninterest
income
|
|
16,099
|
|
|
15,263
|
|
|
16,902
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
21,766
|
|
|
19,835
|
|
|
20,286
|
|
Occupancy
|
|
4,113
|
|
|
4,238
|
|
|
3,953
|
|
Data
processing
|
|
3,116
|
|
|
2,975
|
|
|
3,060
|
|
Services
|
|
2,341
|
|
|
2,561
|
|
|
2,273
|
|
Equipment
|
|
1,701
|
|
|
1,638
|
|
|
1,645
|
|
Office supplies,
printing and postage
|
|
1,483
|
|
|
1,602
|
|
|
1,616
|
|
Marketing
|
|
841
|
|
|
1,309
|
|
|
711
|
|
FDIC
insurance
|
|
811
|
|
|
820
|
|
|
796
|
|
Other
expense
|
|
4,205
|
|
|
6,116
|
|
|
3,122
|
|
Total noninterest
expense
|
|
40,377
|
|
|
41,094
|
|
|
37,462
|
|
Income before
income taxes
|
|
20,631
|
|
|
18,301
|
|
|
$
|
22,532
|
|
Income
taxes
|
|
7,156
|
|
|
6,188
|
|
|
8,133
|
|
Net
income
|
|
$
|
13,475
|
|
|
$
|
12,113
|
|
|
$
|
14,399
|
|
Comprehensive
income
|
|
$
|
17,318
|
|
|
$
|
5,419
|
|
|
$
|
15,423
|
|
OTHER BANK
INFORMATION (annualized %, except as of period end)
|
|
|
|
|
|
Return on average
assets
|
|
0.96
|
|
|
0.88
|
|
|
1.09
|
|
Return on average
equity
|
|
9.96
|
|
|
8.93
|
|
|
10.94
|
|
Return on average
tangible common equity
|
|
11.74
|
|
|
10.52
|
|
|
12.96
|
|
Net interest
margin
|
|
3.52
|
|
|
3.65
|
|
|
3.64
|
|
Net charge-offs to
average loans outstanding
|
|
0.04
|
|
|
0.04
|
|
|
0.02
|
|
As of period
end
|
|
|
|
|
|
|
|
Nonperforming assets
to loans outstanding and real estate owned *
|
|
0.80
|
|
|
0.85
|
|
|
1.12
|
|
Allowance for loan
losses to loans outstanding
|
|
1.03
|
|
|
1.03
|
|
|
0.98
|
|
Tier-1 leverage ratio
*
|
|
8.9
|
|
|
8.9
|
|
|
9.0
|
|
Total capital ratio
*
|
|
13.2
|
|
|
12.3
|
|
|
12.7
|
|
Tangible common
equity to total assets
|
|
8.18
|
|
|
8.23
|
|
|
8.42
|
|
Dividend paid to HEI
(via ASB Hawaii, Inc.) ($ in millions)
|
|
8
|
|
|
9
|
|
|
9
|
|
|
*
Regulatory basis. Capital ratios as of March 31, 2015 calculated
under Basel III rules, which became effective January 1,
2015.
|
|
|
Prior period
financial statements reflect the retrospective application of ASU
No. 2014-01, "Investments-Equity Method and Joint Ventures (Topic
323): Accounting for Investments in Qualified Affordable Housing
Projects," which was adopted as of January 1, 2015 and did not have
a material impact on ASB's financial condition or results of
operations.
|
|
|
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, ASB Hawaii, Inc.'s Form
10 filed with the SEC on March 30, 2015 and HEI's Quarterly Report
on SEC Form 10-Q for the quarter ended March 31, 2015 (when filed),
as updated by SEC Forms 8-K. Results of operations for interim
periods are not necessarily indicative of results to be expected
for future interim periods or the full year.
|
|
American Savings
Bank, F.S.B.
|
|
BALANCE SHEETS
DATA
|
|
(Unaudited)
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
(in
thousands)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
98,484
|
|
|
$
|
107,233
|
|
Interest-bearing
deposits
|
|
172,517
|
|
|
54,230
|
|
Available-for-sale
investment securities, at fair value
|
|
590,648
|
|
|
550,394
|
|
Stock in Federal Home
Loan Bank of Seattle, at cost
|
|
63,711
|
|
|
69,302
|
|
Loans receivable held
for investment
|
|
4,447,299
|
|
|
4,434,651
|
|
Allowance for loan
losses
|
|
(45,795)
|
|
|
(45,618)
|
|
Net loans
|
|
4,401,504
|
|
|
4,389,033
|
|
Loans held for sale,
at lower of cost or fair value
|
|
9,906
|
|
|
8,424
|
|
Other
|
|
305,917
|
|
|
305,416
|
|
Goodwill
|
|
82,190
|
|
|
82,190
|
|
Total
assets
|
|
$
|
5,724,877
|
|
|
$
|
5,566,222
|
|
Liabilities and
shareholder's equity
|
|
|
|
|
|
Deposit
liabilities–noninterest-bearing
|
|
$
|
1,420,085
|
|
|
$
|
1,342,794
|
|
Deposit
liabilities–interest-bearing
|
|
3,331,243
|
|
|
3,280,621
|
|
Other
borrowings
|
|
312,094
|
|
|
290,656
|
|
Other
|
|
117,849
|
|
|
118,363
|
|
Total
liabilities
|
|
5,181,271
|
|
|
5,032,434
|
|
Common
stock
|
|
1
|
|
|
1
|
|
Additional paid in
capital
|
|
338,411
|
|
|
338,411
|
|
Retained
earnings
|
|
217,909
|
|
|
211,934
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
|
|
|
|
Net unrealized gains on
securities
|
$
|
3,913
|
|
|
$
|
462
|
|
|
|
Retirement benefit
plans
|
(16,628)
|
|
(12,715)
|
|
(17,020)
|
|
(16,558)
|
|
Total shareholder's
equity
|
|
543,606
|
|
|
533,788
|
|
Total liabilities
and shareholder's equity
|
|
$
|
5,724,877
|
|
|
$
|
5,566,222
|
|
|
Prior period
financial statements reflect the retrospective application of ASU
No. 2014-01, "Investments-Equity Method and Joint Ventures (Topic
323): Accounting for Investments in Qualified Affordable Housing
Projects," which was adopted as of January 1, 2015 and did not have
a material impact on ASB's financial condition or results of
operations.
|
|
|
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, ASB Hawaii, Inc.'s Form
10 filed with the SEC on March 30, 2015 and HEI's Quarterly Report
on SEC Form 10-Q for the quarter ended March 31, 2015 (when filed),
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 the adjusted return on
average common equity (ROACE) for the utility and HEI
consolidated.
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. and the spin-off of ASB Hawaii, Inc.
For more information on the pending merger, see HEI's definitive
proxy statement on Form DEFM14A filed on March 26, 2015. 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 costs related to the pending merger
discussed above. "O&M-related net income neutral items" which
are O&M expenses covered by specific surcharges or by third
parties have also been excluded. These "O&M-related net
income neutral items" are grossed-up in revenue and expense and do
not impact net income.
|
RECONCILIATION OF
GAAP1 TO NON-GAAP MEASURES
|
|
|
Hawaiian Electric
Industries, Inc. and Subsidiaries
|
|
Unaudited
|
|
|
|
($ in millions,
except per share amounts)
|
|
|
|
Three months ended
March 31
|
|
2015
|
|
2014
|
|
HEI CONSOLIDATED
NET INCOME
|
|
|
|
|
GAAP (as
reported)
|
$
|
31.9
|
|
$
|
45.8
|
|
Excluding special
items (after-tax):
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc. and spin-off of ASB
Hawaii, Inc
|
4.7
|
|
—
|
|
Non-GAAP
(core)
|
$
|
36.6
|
|
$
|
45.8
|
|
HEI CONSOLIDATED
DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
0.31
|
|
$
|
0.45
|
|
Excluding special
items (after-tax):
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc. and spin-off of ASB
Hawaii, Inc
|
0.05
|
|
—
|
|
Non-GAAP
(core)
|
$
|
0.35
|
|
$
|
0.45
|
|
HEI CONSOLIDATED
RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
|
Twelve months
ended March 31
|
|
2015
|
|
2014
|
|
Based on
GAAP
|
8.5%
|
|
10.4%
|
|
Based on non-GAAP
(core)2
|
9.0%
|
|
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
GAAP1 TO NON-GAAP MEASURES
|
|
|
Hawaiian Electric
Company, Inc. and Subsidiaries
|
|
Unaudited
|
|
|
|
($ in
millions)
|
|
|
|
Three months
ended
March 31
|
|
2015
|
|
2014
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED NET INCOME
|
|
|
|
GAAP (as
reported)
|
$
|
26.9
|
|
$
|
35.4
|
|
Excluding special
items (after-tax):
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc.
|
0.3
|
|
—
|
|
Non-GAAP
(core)
|
$
|
27.1
|
|
$
|
35.4
|
|
|
|
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY
|
Twelve months
ended
March 31
|
|
(ROACE) (simple
average)
|
2015
|
|
2014
|
|
Based on
GAAP
|
7.84%
|
|
8.69%
|
|
Based on non-GAAP
(core)2
|
7.86%
|
|
8.69%
|
|
|
|
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED OTHER OPERATION AND MAINTENANCE
(O&M)
|
Three months
ended
March 31
|
|
EXPENSE
|
2015
|
|
2014
|
|
GAAP (as
reported)
|
$
|
104.0
|
|
$
|
88.6
|
|
Excluding
O&M-related net income neutral items3
|
1.9
|
|
2.0
|
|
Excluding costs
related to pending merger with NextEra Energy,
Inc.
|
0.4
|
|
—
|
|
Non-GAAP (Adjusted
other O&M expense)
|
$
|
101.7
|
|
$
|
86.6
|
|
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.