HONOLULU, Aug. 10, 2015 /PRNewswire/ -- Hawaiian
Electric Industries, Inc. (NYSE - HE) (HEI) today reported
consolidated net income for common stock for the second quarter of
2015 of $35.0 million, or diluted
earnings per share (EPS) of $0.33. Excluding $7.2 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
second quarter of 2015 were $42.2
million or $0.39 EPS, compared
to $41.3 million or $0.41 EPS for the second quarter of 2014.
"Our utility continued to invest in modernizing and improving
the electric grids on the five islands we serve to support the
integration of more renewable energy, improve customer service and
maintain system stability. We remain focused on further
reducing costs for our customers while providing safe, reliable and
ever cleaner electricity," said Constance
Lau, HEI president and chief executive officer.
"Our bank delivered consistent financial results with good core
deposit growth and strong mortgage banking income this
quarter. Credit quality remained sound while maintaining
healthy capital levels," added Lau.
"In the quarter, we achieved an important milestone for our
pending bank spin and utility merger when our shareholders approved
the merger with approximately 90% of the voted shares voting in
favor of the merger. The process to obtain Hawaii Public
Utilities Commission approval is also underway. We firmly
believe that as we and our merger partner, NextEra Energy, are able
to provide more information and engage in additional discussions,
the commission and others will conclude that this partnership will
result in significant benefits to our customers and will further
underscore Hawaii's global
leadership in clean energy. Both Hawaiian Electric and
NextEra Energy each have made clear that we are fully committed to
achieving Hawaii's new goal of
100% renewable energy by 2045. Together, we believe we can
get there faster."
HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH
EXPECTATIONS
Hawaiian Electric Company's2 net income for the
second quarter of 2015 was $32.8
million compared to $34.2 million for the same quarter last
year. The $1.4 million decline
was mainly driven by the following on an after-tax basis:
- Depreciation expense was $2
million higher as a result of increasing investments for the
integration of more renewable energy, improved customer reliability
and greater system efficiency; and
- O&M expenses3 were $1
million higher in the second quarter of 2015 compared to the
prior year primarily driven by higher consulting costs for our
energy transformation plans, higher transmission and distribution
costs and benefits expense, partially offset by lower overhaul and
smart grid costs in the second quarter of 2015.
These were partially offset by (on an after-tax basis)
$1 million higher allowance for funds
used during construction and lower interest expense.
AMERICAN SAVINGS BANK CONTINUES TO DELIVER SOLID
PERFORMANCE
American Savings Bank's (American) net income for the second
quarter of 2015 was $12.9 million compared to $13.5 million in the first, or linked quarter of
2015 and $11.5 million in the second
quarter of 2014. Second quarter 2015 net income was
$0.6 million lower than the linked
quarter primarily driven by the following on an after-tax
basis:
- $1 million higher net interest
income primarily driven by higher interest-earning assets and fees
related to the early payoff of commercial loans, offset by
- $1 million higher provision for
loan losses; and
- $1 million higher noninterest
expense.
Compared to the second quarter of 2014, net income was higher by
$1.3 million primarily driven by the
following on an after-tax basis:
- $1 million higher net interest
income in the second quarter of 2015 primarily due to higher
average loan balances; and
- $2 million higher noninterest
income primarily from mortgage banking and fees on deposit products
in the second quarter of 2015, partially offset by
- $1 million higher noninterest
expense in the second quarter of 2015 due primarily to higher
pension and benefits expense.
Overall, American achieved solid profitability in the second
quarter of 2015 with a return on average equity of 9.38% and a
return on average assets of 0.89%.
For additional information, refer to the American news release
issued on July 30, 2015.
HOLDING AND OTHER COMPANIES
The holding and other companies' net losses were $10.7 million in the second quarter of
2015. Excluding costs related to the pending merger with
NextEra Energy, Inc. and the spin-off of ASB Hawaii, the second
quarter of 2015 net loss was $3.5
million compared to $4.5 million in the same quarter last year
primarily due to lower interest and other costs.
BOARD DECLARES QUARTERLY DIVIDEND
On August 7, 2015, the board of
directors maintained HEI's quarterly cash dividend of $0.31 cents per share, payable on
September 10, 2015, to shareholders
of record at the close of business on August
24, 2015 (ex-dividend date is August
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
August 7, 2015 of $30.99, HEI's yield is 4.0%.
HEI WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND EPS
GUIDANCE
Hawaiian Electric Industries, Inc. will conduct a webcast and
conference call to review its second quarter of 2015 earnings and
2015 EPS guidance on Monday, August 10, 2015, at 7:00 a.m. Hawaii
time (1:00 p.m. Eastern time).
The event can be accessed through HEI's website at www.hei.com or
by dialing (888) 311-8190 and entering passcode: 74311446.
International parties may listen to the conference by calling the
following toll free number, (330) 863-3378 and entering
passcode: 74311446. The presentation for the webcast
will be on HEI's website 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 on-line replay of the webcast will be available on HEI's
website beginning about two hours after the event. Audio
replays of the teleconference will also be available approximately
two hours after the event through August 24,
2015, by dialing (855) 859-2056 or (404) 537-3406 and
entering passcode: 74311446.
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 14 to 15 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, HEI's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2015 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 second 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 Excludes net income neutral expenses covered by
surcharges or by third parties of $2
million and $3 million in the
second quarter of 2015 and 2014, 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)
|
|
|
Three months ended
June 30
|
|
Six months ended
June 30
|
(in thousands, except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
558,163
|
|
$
|
738,429
|
|
$
|
1,131,605
|
|
|
$
|
1,458,491
|
|
Bank
|
|
65,783
|
|
60,616
|
|
130,131
|
|
|
124,235
|
|
Other
|
|
(34)
|
|
(388)
|
|
38
|
|
|
(320)
|
|
Total
revenues
|
|
623,912
|
|
798,657
|
|
1,261,774
|
|
|
1,582,406
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
492,002
|
|
668,361
|
|
1,007,808
|
|
|
1,317,757
|
|
Bank
|
|
46,057
|
|
42,660
|
|
89,774
|
|
|
83,748
|
|
Other
|
|
13,123
|
|
4,453
|
|
21,956
|
|
|
8,504
|
|
Total
expenses
|
|
551,182
|
|
715,474
|
|
1,119,538
|
|
|
1,410,009
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
66,161
|
|
70,068
|
|
123,797
|
|
|
140,734
|
|
Bank
|
|
19,726
|
|
17,956
|
|
40,357
|
|
|
40,487
|
|
Other
|
|
(13,157)
|
|
(4,841)
|
|
(21,918)
|
|
|
(8,824)
|
|
Total operating
income
|
|
72,730
|
|
83,183
|
|
142,236
|
|
|
172,397
|
|
Interest expense,
net—other than on deposit liabilities and other bank
borrowings
|
|
(18,906)
|
|
(20,022)
|
|
(38,006)
|
|
|
(39,478)
|
|
Allowance for
borrowed funds used during construction
|
|
682
|
|
523
|
|
1,181
|
|
|
1,137
|
|
Allowance for equity
funds used during construction
|
|
1,896
|
|
1,387
|
|
3,309
|
|
|
2,996
|
|
Income before
income taxes
|
|
56,402
|
|
65,071
|
|
108,720
|
|
|
137,052
|
|
Income
taxes
|
|
20,911
|
|
23,317
|
|
40,890
|
|
|
49,038
|
|
Net
income
|
|
35,491
|
|
41,754
|
|
67,830
|
|
|
88,014
|
|
Preferred stock
dividends of subsidiaries
|
|
473
|
|
473
|
|
946
|
|
|
946
|
|
Net income for
common stock
|
|
$
|
35,018
|
|
$
|
41,281
|
|
$
|
66,884
|
|
|
$
|
87,068
|
|
Basic earnings per
common share
|
|
$
|
0.33
|
|
$
|
0.41
|
|
0.63
|
|
|
$
|
0.86
|
|
Diluted earnings
per common share
|
|
$
|
0.33
|
|
$
|
0.41
|
|
0.63
|
|
|
$
|
0.85
|
|
Dividends per
common share
|
|
$
|
0.31
|
|
$
|
0.31
|
|
$
|
0.62
|
|
|
$
|
0.62
|
|
Weighted-average
number of common shares outstanding
|
|
107,418
|
|
101,495
|
|
105,361
|
|
|
101,439
|
|
Adjusted
weighted-average shares
|
|
107,694
|
|
101,825
|
|
105,659
|
|
|
102,045
|
|
Net income (loss)
for common stock by segment
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
32,841
|
|
$
|
34,230
|
|
$
|
59,715
|
|
|
$
|
69,650
|
|
Bank
|
|
12,851
|
|
11,536
|
|
26,326
|
|
|
25,935
|
|
Other
|
|
(10,674)
|
|
(4,485)
|
|
(19,157)
|
|
|
(8,517)
|
|
Net income for
common stock
|
|
$
|
35,018
|
|
$
|
41,281
|
|
$
|
66,884
|
|
|
$
|
87,068
|
|
Comprehensive income
attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
31,891
|
|
$
|
44,181
|
|
$
|
67,815
|
|
|
$
|
91,135
|
|
Return on average
common equity (twelve months ended)1
|
|
|
|
|
|
8.1
|
%
|
|
10.3
|
%
|
|
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 Reports
on SEC Form 10-Q for the quarters ended March 31, 2015 and June 30,
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 June 30) were 9.0% and 10.3%,
respectively. See reconciliation of GAAP to non-GAAP
measures.
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
|
|
|
(dollars in thousands)
|
|
June 30,
2015
|
|
December 31,
2014
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
300,687
|
|
$
|
175,542
|
Accounts receivable
and unbilled revenues, net
|
|
269,207
|
|
313,696
|
Available-for-sale
investment securities, at fair value
|
|
693,520
|
|
550,394
|
Stock in Federal Home
Loan Bank, at cost
|
|
10,678
|
|
69,302
|
Loans receivable held
for investment, net
|
|
4,410,817
|
|
4,389,033
|
Loans held for sale,
at lower of cost or fair value
|
|
5,581
|
|
8,424
|
Property, plant and
equipment, net of accumulated depreciation of $2,288,804 and
$2,250,950 at the respective dates
|
|
4,269,241
|
|
4,148,774
|
Regulatory
assets
|
|
904,559
|
|
905,264
|
Other
|
|
493,151
|
|
542,523
|
Goodwill
|
|
82,190
|
|
82,190
|
Total
assets
|
|
$
|
11,439,631
|
|
$
|
11,185,142
|
Liabilities and
shareholders' equity
|
|
|
|
|
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
183,094
|
|
$
|
186,425
|
Interest and
dividends payable
|
|
25,360
|
|
25,336
|
Deposit
liabilities
|
|
4,803,271
|
|
4,623,415
|
Short-term
borrowings—other than bank
|
|
124,543
|
|
118,972
|
Other bank
borrowings
|
|
314,157
|
|
290,656
|
Long-term debt,
net—other than bank
|
|
1,506,546
|
|
1,506,546
|
Deferred income
taxes
|
|
632,718
|
|
633,570
|
Regulatory
liabilities
|
|
357,089
|
|
344,849
|
Contributions in aid
of construction
|
|
482,760
|
|
466,432
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
615,945
|
|
632,845
|
Other
|
|
461,335
|
|
531,230
|
Total
liabilities
|
|
9,506,818
|
|
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:
107,446,530 shares and 102,565,266 shares at the respective
dates
|
|
1,626,569
|
|
1,521,297
|
Retained
earnings
|
|
298,398
|
|
296,654
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
(26,447)
|
|
(27,378)
|
Total
shareholders' equity
|
|
1,898,520
|
|
1,790,573
|
Total liabilities
and shareholders' equity
|
|
$
|
11,439,631
|
|
$
|
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 Reports
on SEC Form 10-Q for the quarters ended March 31, 2015 and June 30,
2015 (when filed), as updated by SEC Forms 8-K.
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
Six months ended
June 30
|
2015
|
|
2014
|
(in thousands)
|
|
|
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
67,830
|
|
$
|
88,014
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
Depreciation of
property, plant and equipment
|
91,731
|
|
86,397
|
Other
amortization
|
4,320
|
|
4,014
|
Provision for loan
losses
|
2,439
|
|
2,016
|
Loans receivable
originated and purchased, held for sale
|
(168,921)
|
|
(69,656)
|
Proceeds from sale of
loans receivable, held for sale
|
173,267
|
|
75,040
|
Increase in deferred
income taxes
|
22,980
|
|
28,570
|
Excess tax benefits
from share-based payment arrangements
|
(984)
|
|
(267)
|
Allowance for equity
funds used during construction
|
(3,309)
|
|
(2,996)
|
Change in cash
overdraft
|
193
|
|
(1,038)
|
Changes in assets and
liabilities
|
|
|
|
Decrease (increase)
in accounts receivable and unbilled revenues, net
|
44,489
|
|
(2,986)
|
Increase in fuel oil
stock
|
(2,362)
|
|
(27,206)
|
Increase in
regulatory assets
|
(19,976)
|
|
(17,731)
|
Decrease in accounts,
interest and dividends payable
|
(56,076)
|
|
(64,843)
|
Change in prepaid and
accrued income taxes and utility revenue taxes
|
(4,390)
|
|
(32,510)
|
Increase (decrease)
in defined benefit pension and other postretirement benefit plans
liability
|
218
|
|
(1,714)
|
Change in other
assets and liabilities
|
(47,146)
|
|
(16,909)
|
Net cash provided
by operating activities
|
104,303
|
|
46,195
|
Cash flows from
investing activities
|
|
|
|
Available-for-sale
investment securities purchased
|
(208,110)
|
|
(125,531)
|
Principal repayments
on available-for-sale investment securities
|
63,568
|
|
33,202
|
Proceeds from sale of
available-for-sale investment securities
|
—
|
|
79,564
|
Redemption of stock
from Federal Home Loan Bank
|
58,623
|
|
11,683
|
Net increase in loans
held for investment
|
(23,206)
|
|
(137,122)
|
Proceeds from sale of
real estate acquired in settlement of loans
|
1,258
|
|
2,162
|
Capital
expenditures
|
(142,236)
|
|
(149,253)
|
Contributions in aid
of construction
|
19,089
|
|
13,209
|
Other
|
3,308
|
|
(16)
|
Net cash used in
investing activities
|
(227,706)
|
|
(272,102)
|
Cash flows from
financing activities
|
|
|
|
Net increase in
deposit liabilities
|
179,856
|
|
152,383
|
Net increase in
short-term borrowings with original maturities of three months or
less
|
5,571
|
|
79,693
|
Net increase
(decrease) in retail repurchase agreements
|
13,508
|
|
(2,053)
|
Proceeds from other
bank borrowings
|
10,000
|
|
—
|
Proceeds from
issuance of long-term debt
|
—
|
|
125,000
|
Repayment of
long-term debt
|
—
|
|
(100,000)
|
Excess tax benefits
from share-based payment arrangements
|
984
|
|
267
|
Net proceeds from
issuance of common stock
|
104,469
|
|
3,048
|
Common stock
dividends
|
(65,140)
|
|
(62,916)
|
Preferred stock
dividends of subsidiaries
|
(946)
|
|
(946)
|
Other
|
246
|
|
(228)
|
Net cash provided
by financing activities
|
248,548
|
|
194,248
|
Net increase
(decrease) in cash and cash equivalents
|
125,145
|
|
(31,659)
|
Cash and cash
equivalents, beginning of period
|
175,542
|
|
220,036
|
Cash and cash
equivalents, end of period
|
$
|
300,687
|
|
$
|
188,377
|
|
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 and June 30,
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
June 30
|
|
Six months ended
June 30
|
(dollars
in thousands, except per barrel amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
$
|
558,163
|
|
$
|
738,429
|
|
1,131,605
|
|
1,458,491
|
Expenses
|
|
|
|
|
|
|
|
|
Fuel oil
|
|
146,231
|
|
270,257
|
|
323,037
|
|
556,557
|
Purchased
power
|
|
149,284
|
|
188,323
|
|
285,291
|
|
353,239
|
Other operation and
maintenance
|
|
98,864
|
|
98,564
|
|
202,866
|
|
187,170
|
Depreciation
|
|
44,241
|
|
41,593
|
|
88,484
|
|
83,196
|
Taxes, other than
income taxes
|
|
53,382
|
|
69,624
|
|
108,130
|
|
137,595
|
Total
expenses
|
|
492,002
|
|
668,361
|
|
1,007,808
|
|
1,317,757
|
Operating
income
|
|
66,161
|
|
70,068
|
|
123,797
|
|
140,734
|
Allowance for equity
funds used during construction
|
|
1,896
|
|
1,387
|
|
3,309
|
|
2,996
|
Interest expense and
other charges, net
|
|
(16,288)
|
|
(16,852)
|
|
(32,613)
|
|
(32,575)
|
Allowance for
borrowed funds used during construction
|
|
682
|
|
523
|
|
1,181
|
|
1,137
|
Income before income
taxes
|
|
52,451
|
|
55,126
|
|
95,674
|
|
112,292
|
Income
taxes
|
|
19,111
|
|
20,397
|
|
34,961
|
|
41,644
|
Net
income
|
|
33,340
|
|
34,729
|
|
60,713
|
|
70,648
|
Preferred stock
dividends of subsidiaries
|
|
229
|
|
229
|
|
458
|
|
458
|
Net income
attributable to Hawaiian Electric
|
|
33,111
|
|
34,500
|
|
60,255
|
|
70,190
|
Preferred stock
dividends of Hawaiian Electric
|
|
270
|
|
270
|
|
540
|
|
540
|
Net income for
common stock
|
|
$
|
32,841
|
|
$
|
34,230
|
|
59,715
|
|
69,650
|
Comprehensive
income attributable to Hawaiian Electric
|
|
$
|
32,826
|
|
$
|
34,243
|
|
$
|
59,722
|
|
$
|
69,672
|
OTHER ELECTRIC
UTILITY INFORMATION
|
|
|
|
|
|
|
|
|
Kilowatthour sales
(millions)
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
1,615
|
|
1,652
|
|
3,142
|
|
3,247
|
Hawaii
Electric Light
|
|
257
|
|
261
|
|
510
|
|
520
|
Maui
Electric
|
|
272
|
|
276
|
|
536
|
|
548
|
|
|
2,144
|
|
2,189
|
|
4,188
|
|
4,315
|
Wet-bulb temperature
(Oahu average; degrees Fahrenheit)
|
|
69.2
|
|
69.1
|
|
67.8
|
|
68.1
|
Cooling degree days
(Oahu)
|
|
1,181
|
|
1,244
|
|
1,976
|
|
2,072
|
Average fuel oil cost
per barrel
|
|
$
|
69.37
|
|
$
|
132.07
|
|
$
|
77.85
|
|
$
|
131.60
|
|
|
|
|
|
|
|
|
|
Twelve months
ended June 30
|
|
|
|
|
|
2015
|
|
2014
|
Return on average
common equity (%) (simple average)
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
|
|
|
|
7.87
|
|
9.56
|
Hawaii
Electric Light
|
|
|
|
|
|
6.01
|
|
7.58
|
Maui
Electric
|
|
|
|
|
|
8.87
|
|
8.16
|
Hawaiian
Electric Consolidated
|
|
|
|
|
|
7.70
|
|
8.99
|
|
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 Reports on SEC Form 10-Q for the
quarters ended March 31, 2015 and June 30, 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)
|
|
June 30,
2015
|
|
December 31,
2014
|
Assets
|
|
|
|
|
Property, plant
and equipment
|
|
|
|
|
Utility property,
plant and equipment
|
|
|
|
|
Land
|
|
$
|
52,022
|
|
$
|
52,299
|
Plant and
equipment
|
|
6,142,229
|
|
6,009,482
|
Less accumulated
depreciation
|
|
(2,218,703)
|
|
(2,175,510)
|
Construction in
progress
|
|
196,355
|
|
158,616
|
Utility property,
plant and equipment, net
|
|
4,171,903
|
|
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
|
|
4,178,465
|
|
4,051,450
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
4,470
|
|
13,762
|
Customer accounts
receivable, net
|
|
139,922
|
|
158,484
|
Accrued unbilled
revenues, net
|
|
109,444
|
|
137,374
|
Other accounts
receivable, net
|
|
5,890
|
|
4,283
|
Fuel oil stock, at
average cost
|
|
108,408
|
|
106,046
|
Materials and
supplies, at average cost
|
|
57,355
|
|
57,250
|
Prepayments and
other
|
|
35,962
|
|
66,383
|
Regulatory
assets
|
|
99,236
|
|
71,421
|
Total current
assets
|
|
560,687
|
|
615,003
|
Other long-term
assets
|
|
|
|
|
Regulatory
assets
|
|
805,323
|
|
833,843
|
Unamortized debt
expense
|
|
7,900
|
|
8,323
|
Other
|
|
81,932
|
|
81,838
|
Total other
long-term assets
|
|
895,155
|
|
924,004
|
Total
assets
|
|
$
|
5,634,307
|
|
$
|
5,590,457
|
Capitalization and
liabilities
|
|
|
|
|
Capitalization
|
|
|
|
|
Common stock ($6 2/3
par value, authorized 50,000,000 shares; outstanding 15,805,327
shares)
|
|
$
|
105,388
|
|
$
|
105,388
|
Premium on capital
stock
|
|
578,933
|
|
578,938
|
Retained
earnings
|
|
1,012,285
|
|
997,773
|
Accumulated other
comprehensive income, net of income taxes-retirement benefit
plans
|
|
52
|
|
45
|
Common stock
equity
|
|
1,696,658
|
|
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
|
|
2,937,497
|
|
2,922,983
|
Current
liabilities
|
|
|
|
|
Short-term borrowings
from non-affiliates
|
|
88,993
|
|
—
|
Accounts
payable
|
|
147,750
|
|
163,934
|
Interest and
preferred dividends payable
|
|
22,367
|
|
22,316
|
Taxes
accrued
|
|
188,653
|
|
250,402
|
Regulatory
liabilities
|
|
763
|
|
632
|
Other
|
|
66,385
|
|
65,146
|
Total current
liabilities
|
|
514,911
|
|
502,430
|
Deferred credits
and other liabilities
|
|
|
|
|
Deferred income
taxes
|
|
605,702
|
|
602,872
|
Regulatory
liabilities
|
|
356,326
|
|
344,217
|
Unamortized tax
credits
|
|
83,893
|
|
79,492
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
578,637
|
|
595,395
|
Other
|
|
74,581
|
|
76,636
|
Total deferred
credits and other liabilities
|
|
1,699,139
|
|
1,698,612
|
Contributions in aid
of construction
|
|
482,760
|
|
466,432
|
Total
capitalization and liabilities
|
|
$
|
5,634,307
|
|
$
|
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 Reports on SEC Form 10-Q for the
quarters ended March 31, 2015 and June 30, 2015 (when filed), as
updated by SEC Forms 8-K.
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
Six months ended
June 30
|
|
2015
|
|
2014
|
(in thousands)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
|
$
|
60,713
|
|
$
|
70,648
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
88,484
|
|
83,196
|
Other
amortization
|
|
2,748
|
|
3,597
|
Increase in deferred
income taxes
|
|
33,320
|
|
45,386
|
Change in tax
credits, net
|
|
4,461
|
|
4,227
|
Allowance for equity
funds used during construction
|
|
(3,309)
|
|
(2,996)
|
Change in cash
overdraft
|
|
193
|
|
(1,038)
|
Changes in assets and
liabilities
|
|
|
|
|
Decrease (increase)
in accounts receivable
|
|
16,955
|
|
(5,039)
|
Decrease in accrued
unbilled revenues
|
|
27,930
|
|
2,255
|
Increase in fuel oil
stock
|
|
(2,362)
|
|
(27,206)
|
Increase in materials
and supplies
|
|
(105)
|
|
(1,835)
|
Increase in
regulatory assets
|
|
(19,976)
|
|
(17,731)
|
Decrease in accounts
payable
|
|
(68,951)
|
|
(63,306)
|
Change in prepaid and
accrued income taxes and revenue taxes
|
|
(63,613)
|
|
(38,270)
|
Increase (decrease)
in defined benefit pension and other postretirement benefit plans
liability
|
|
221
|
|
(498)
|
Change in other
assets and liabilities
|
|
(13,102)
|
|
(26,258)
|
Net cash provided
by operating activities
|
|
63,607
|
|
25,132
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(134,563)
|
|
(145,734)
|
Contributions in aid
of construction
|
|
19,089
|
|
13,209
|
Net cash used in
investing activities
|
|
(115,474)
|
|
(132,525)
|
Cash flows from
financing activities
|
|
|
|
|
Common stock
dividends
|
|
(45,203)
|
|
(44,246)
|
Preferred stock
dividends of Hawaiian Electric and subsidiaries
|
|
(998)
|
|
(998)
|
Net increase in
short-term borrowings from non-affiliates and affiliate with
original maturities of three months or less
|
|
88,993
|
|
102,989
|
Other
|
|
(217)
|
|
(457)
|
Net cash provided
by financing activities
|
|
42,575
|
|
57,288
|
Net decrease in cash
and cash equivalents
|
|
(9,292)
|
|
(50,105)
|
Cash and cash
equivalents, beginning of period
|
|
13,762
|
|
62,825
|
Cash and cash
equivalents, end of period
|
|
$
|
4,470
|
|
$
|
12,720
|
|
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 Reports on
SEC Form 10-Q for the quarters ended March 31, 2015 and June 30,
2015 (when filed), as updated by SEC Forms 8-K.
|
American Savings
Bank, F.S.B.
STATEMENTS OF INCOME
DATA
(Unaudited)
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months ended June
30
|
(in thousands)
|
|
June 30,
2015
|
|
March 31,
2015
|
June 30,
2014
|
|
|
2015
|
|
2014
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
46,035
|
|
$
|
45,198
|
|
$
|
43,851
|
|
$
|
91,233
|
|
$
|
87,533
|
Interest and
dividends on investment securities
|
|
3,306
|
|
3,051
|
|
2,950
|
|
6,357
|
|
5,985
|
Total interest and
dividend income
|
|
49,341
|
|
48,249
|
|
46,801
|
|
97,590
|
|
93,518
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Interest on deposit
liabilities
|
|
1,266
|
|
1,260
|
|
1,237
|
|
2,526
|
|
2,462
|
Interest on other
borrowings
|
|
1,487
|
|
1,466
|
|
1,420
|
|
2,953
|
|
2,825
|
Total interest
expense
|
|
2,753
|
|
2,726
|
|
2,657
|
|
5,479
|
|
5,287
|
Net interest
income
|
|
46,588
|
|
45,523
|
|
44,144
|
|
92,111
|
|
88,231
|
Provision for loan
losses
|
|
1,825
|
|
614
|
|
1,021
|
|
2,439
|
|
2,016
|
Net interest
income after provision for loan losses
|
|
44,763
|
|
44,909
|
|
43,123
|
|
89,672
|
|
86,215
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Fees from other
financial services
|
|
5,550
|
|
5,355
|
|
5,217
|
|
10,905
|
|
10,345
|
Fee income on deposit
liabilities
|
|
5,424
|
|
5,315
|
|
4,645
|
|
10,739
|
|
9,066
|
Fee income on other
financial products
|
|
2,103
|
|
1,889
|
|
2,064
|
|
3,992
|
|
4,354
|
Bank-owned life
insurance
|
|
1,058
|
|
983
|
|
982
|
|
2,041
|
|
1,945
|
Mortgage banking
income
|
|
2,068
|
|
1,822
|
|
246
|
|
3,890
|
|
874
|
Gains on sale of
investment securities
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,847
|
Other income,
net
|
|
239
|
|
735
|
|
661
|
|
974
|
|
1,286
|
Total noninterest
income
|
|
16,442
|
|
16,099
|
|
13,815
|
|
32,541
|
|
30,717
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
22,319
|
|
21,766
|
|
19,872
|
|
44,085
|
|
40,158
|
Occupancy
|
|
4,009
|
|
4,113
|
|
4,489
|
|
8,122
|
|
8,442
|
Data
processing
|
|
2,953
|
|
3,116
|
|
2,971
|
|
6,069
|
|
6,031
|
Services
|
|
2,833
|
|
2,341
|
|
2,855
|
|
5,174
|
|
5,128
|
Equipment
|
|
1,690
|
|
1,701
|
|
1,609
|
|
3,391
|
|
3,254
|
Office supplies,
printing and postage
|
|
1,303
|
|
1,483
|
|
1,456
|
|
2,786
|
|
3,072
|
Marketing
|
|
844
|
|
841
|
|
1,031
|
|
1,685
|
|
1,742
|
FDIC
insurance
|
|
773
|
|
811
|
|
805
|
|
1,584
|
|
1,601
|
Other
expense
|
|
4,755
|
|
4,205
|
|
3,894
|
|
8,960
|
|
7,016
|
Total noninterest
expense
|
|
41,479
|
|
40,377
|
|
38,982
|
|
81,856
|
|
76,444
|
Income before
income taxes
|
|
19,726
|
|
20,631
|
|
17,956
|
|
40,357
|
|
40,488
|
Income
taxes
|
|
6,875
|
|
7,156
|
|
6,420
|
|
14,031
|
|
14,553
|
Net
income
|
|
$
|
12,851
|
|
$
|
13,475
|
|
$
|
11,536
|
|
$
|
26,326
|
|
$
|
25,935
|
Comprehensive
income
|
|
$
|
9,544
|
|
$
|
17,318
|
|
$
|
14,294
|
|
$
|
26,862
|
|
$
|
29,717
|
OTHER BANK
INFORMATION (annualized %, except as of period end)
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.89
|
|
0.96
|
|
0.86
|
|
0.93
|
|
0.97
|
Return on average
equity
|
|
9.38
|
|
9.96
|
|
8.69
|
|
9.67
|
|
9.81
|
Return on average
tangible common equity
|
|
11.04
|
|
11.74
|
|
10.28
|
|
11.39
|
|
11.61
|
Net interest
margin
|
|
3.52
|
|
3.52
|
|
3.55
|
|
3.52
|
|
3.59
|
Net charge-offs to
average loans outstanding
|
|
0.11
|
|
0.04
|
|
(0.04)
|
|
0.08
|
|
(0.01)
|
As of period
end
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to loans outstanding and real estate owned *
|
|
0.70
|
|
0.80
|
|
1.05
|
|
|
|
|
Allowance for loan
losses to loans outstanding
|
|
1.04
|
|
1.03
|
|
0.99
|
|
|
|
|
Tangible common
equity to tangible assets
|
|
8.16
|
|
8.18
|
|
8.45
|
|
|
|
|
Tier-1 leverage ratio
*
|
|
8.8
|
|
8.9
|
|
9.0
|
|
|
|
|
Total capital ratio
*
|
|
13.5
|
|
13.2
|
|
12.6
|
|
|
|
|
Dividend paid to HEI
(via ASB Hawaii, Inc.) ($ in millions)
|
|
$
|
7.5
|
|
$
|
7.5
|
|
$
|
9.8
|
|
|
|
|
|
* Regulatory basis.
Capital ratios as of June 30, 2015 and 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 Reports
on SEC Form 10-Q for the quarters ended March 31, 2015 and June 30,
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)
|
|
|
|
|
June 30,
2015
|
December 31,
2014
|
(in
thousands)
|
|
|
|
|
Assets
|
|
|
|
|
Cash and due from
banks
|
|
$
|
106,914
|
|
|
$
|
107,233
|
Interest-bearing
deposits
|
|
162,088
|
|
|
54,230
|
Available-for-sale
investment securities, at fair value
|
|
693,520
|
|
|
550,394
|
Stock in Federal Home
Loan Bank, at cost
|
|
10,678
|
|
|
69,302
|
Loans receivable held
for investment
|
|
4,457,182
|
|
|
4,434,651
|
Allowance for loan
losses
|
|
(46,365)
|
|
|
(45,618)
|
Net loans
|
|
4,410,817
|
|
|
4,389,033
|
Loans held for sale,
at lower of cost or fair value
|
|
5,581
|
|
|
8,424
|
Other
|
|
305,310
|
|
|
305,416
|
Goodwill
|
|
82,190
|
|
|
82,190
|
Total
assets
|
|
$
|
5,777,098
|
|
|
$
|
5,566,222
|
Liabilities and
shareholder's equity
|
|
|
|
|
Deposit
liabilities–noninterest-bearing
|
|
$
|
1,455,721
|
|
|
$
|
1,342,794
|
Deposit
liabilities–interest-bearing
|
|
3,347,550
|
|
|
3,280,621
|
Other
borrowings
|
|
314,157
|
|
|
290,656
|
Other
|
|
113,015
|
|
|
118,363
|
Total
liabilities
|
|
5,230,443
|
|
|
5,032,434
|
Common
stock
|
|
1
|
|
|
1
|
Additional paid in
capital
|
|
339,416
|
|
|
338,411
|
Retained
earnings
|
|
223,260
|
|
|
211,934
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
|
|
|
Net unrealized gains on
securities
|
$
|
219
|
|
|
$
|
462
|
|
|
Retirement benefit
plans
|
(16,241)
|
|
(16,022)
|
|
(17,020)
|
|
(16,558)
|
Total
shareholder's equity
|
|
546,655
|
|
|
533,788
|
Total liabilities
and shareholder's equity
|
|
$
|
5,777,098
|
|
|
$
|
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 Reports
on SEC Form 10-Q for the quarters ended March 31, 2015 and June 30,
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
June 30
|
|
Six months ended
June 30
|
|
2015
|
2014
|
|
2015
|
2014
|
HEI CONSOLIDATED
NET INCOME
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
35.0
|
|
$
|
41.3
|
|
|
$
|
66.9
|
|
$
|
87.1
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc. and spin-off of ASB
Hawaii, Inc
|
7.2
|
|
—
|
|
|
11.9
|
|
—
|
|
Non-GAAP
(core)
|
$
|
42.2
|
|
$
|
41.3
|
|
|
$
|
78.8
|
|
$
|
87.1
|
|
HEI CONSOLIDATED
DILUTED EARNINGS PER SHARE
|
|
|
|
|
GAAP (as
reported)
|
$
|
0.33
|
|
$
|
0.41
|
|
|
$
|
0.63
|
|
$
|
0.85
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc. and spin-off of ASB
Hawaii, Inc
|
0.07
|
|
—
|
|
|
0.11
|
|
—
|
|
Non-GAAP
(core)
|
$
|
0.39
|
|
$
|
0.41
|
|
|
$
|
0.75
|
|
$
|
0.85
|
|
HEI CONSOLIDATED
RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
|
|
|
|
Twelve months
ended June 30
|
|
|
|
|
2015
|
2014
|
Based on
GAAP
|
|
|
|
8.1
|
%
|
10.3
|
%
|
Based on non-GAAP
(core)2
|
|
|
|
9.0
|
%
|
10.3
|
%
|
|
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
|
RECONCILIATION OF
GAAP1 TO NON-GAAP MEASURES
|
|
Hawaiian Electric
Company, Inc. and Subsidiaries
|
Unaudited
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
Three months ended
June 30
|
|
Six months ended
June 30
|
|
2015
|
2014
|
|
2015
|
2014
|
HAWAIIAN ELECTRIC
CONSOLIDATED NET INCOME
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
32.8
|
|
$
|
34.2
|
|
|
$
|
59.7
|
|
$
|
69.7
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc.
|
—
|
|
—
|
|
|
0.3
|
|
—
|
|
Non-GAAP
(core)
|
$
|
32.8
|
|
$
|
34.2
|
|
|
$
|
60.0
|
|
$
|
69.7
|
|
|
|
|
|
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY
|
|
|
|
Twelve months
ended June 30
|
(ROACE) (simple
average)
|
|
|
|
2015
|
2014
|
Based on
GAAP
|
|
|
|
7.70
|
%
|
8.99
|
%
|
Based on non-GAAP
(core)2
|
|
|
|
7.72
|
%
|
8.99
|
%
|
|
|
|
|
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED OTHER OPERATION
|
Three months ended
June 30
|
|
Six months ended
June 30
|
AND MAINTENANCE
(O&M) EXPENSE
|
2015
|
2014
|
|
2015
|
2014
|
GAAP (as
reported)
|
$
|
98.9
|
|
$
|
98.6
|
|
|
$
|
202.9
|
|
$
|
187.2
|
|
Excluding
O&M-related net income neutral items3
|
1.6
|
|
2.9
|
|
|
3.5
|
|
5.0
|
|
Excluding costs
related to pending merger with NextEra Energy,
Inc.
|
—
|
|
—
|
|
|
0.4
|
|
—
|
|
Non-GAAP (Adjusted
other O&M expense)
|
$
|
97.2
|
|
$
|
95.6
|
|
|
$
|
198.9
|
|
$
|
182.2
|
|
|
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
|
Logo -
http://photos.prnewswire.com/prnh/20110411/LA80136LOGO
Contact:
|
Clifford H.
Chen
|
Telephone: (808)
543-7300
|
|
Manager, Investor
Relations & Strategic Planning
|
E-mail:
ir@hei.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hawaiian-electric-industries-reports-second-quarter-2015-earnings-and-2015-eps-guidance-300125810.html
SOURCE Hawaiian Electric Industries, Inc.