HONOLULU, Nov. 5, 2015 /PRNewswire/ -- Hawaiian Electric
Industries, Inc. (NYSE - HE) (HEI) today reported consolidated net
income for common stock for the third quarter of 2015 of
$50.7 million and diluted earnings
per share (EPS) of $0.47 compared to
$47.8 million and $0.46 EPS for the third quarter of 2014.
Excluding costs associated with the pending merger with NextEra
Energy, Inc. and the spin-off of ASB Hawaii of $1.7 million and $0.4
million (after-tax), in the third quarter of 2015 and 2014
respectively, core earnings1 for the third quarter of
2015 were $52.4 million and
$0.49 EPS compared to $48.3 million and $0.47 EPS for the third quarter of 2014.
"With the PUC's recent distributed energy resources order and
Hawaii's new 100% renewable
portfolio standard goal by 2045, our utility's continued work to
modernize our electric grids and pursue new customer options is
more important than ever," said Constance
Lau, HEI president and chief executive officer.
"Our bank delivered solid revenue and loan growth this quarter.
Credit quality remained sound, and capital levels were healthy,"
added Lau.
"During the quarter, we achieved another important milestone
toward the completion of our proposed merger with NextEra Energy
with the expiration of the Hart-Scott-Rodino waiting period. The
PUC just completed public listening sessions on all islands, and
during the past few weeks, we and NextEra Energy filed our
surrebuttal testimonies and closed out a six-month
discovery process. We look forward to evidentiary hearings
beginning late November. And as we move forward, we continue to
believe NextEra Energy is the right partner for Hawaiian Electric
to help achieve Hawaii's 100
percent renewable portfolio standard by 2045."
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1 Non-GAAP
measure which excludes merger-related and spin-off costs after-tax.
See the "Explanation of HEI's Use of Certain Unaudited Non-GAAP
measures" and the related reconciliation.
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HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH
EXPECTATIONS
Hawaiian Electric Company's2 net
income for the third quarter of 2015 was $43.0 million compared to $38.9 million for the same quarter last year. The
$4.1 million increase was mainly
driven by the following on an after-tax basis:
- $3 million higher net
revenues3 compared to the third quarter of 2014
primarily due to $2 million in
recovery of costs for clean energy and reliability investments and
$1 million for better fuel efficiency
performance; and
- $2 million lower operations and
maintenance (O&M) expenses4 in the third quarter of
2015 compared to the same quarter last year, due to the following
on an after-tax basis:
- Third quarter of 2014 O&M costs were elevated due primarily
to consulting costs associated with regulatory filings, storm
restoration expenses and the initial phase of our smart grid
installations as part of our grid modernization program which in
total had a $6 million impact to net
income; and
- Third quarter of 2015 O&M costs were impacted by the
regulatory decision denying enterprise resource planning software
costs and higher maintenance costs including environmental
compliance costs and vegetation management costs partially offset
by the positive impact of the regulatory approval of the deferral
of the Interactive Voice Response system project costs that were
previously expensed. In total, these items had a $4 million unfavorable impact to net income.
- $2 million higher depreciation
expense as a result of increasing investments for the integration
of more renewable energy, improved customer reliability and greater
system efficiency.
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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.
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3 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
Consolidated Statements of Income.
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4 Excludes
net income neutral expenses covered by surcharges or by third
parties of $2 million in the third quarter of 2015 and $3 million
in the third quarter of 2014. See "Explanation of HEI's Use of
Certain Unaudited Non-GAAP measures" and the related
reconciliation.
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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.
AMERICAN SAVINGS BANK CONTINUES TO DELIVER SOLID
PERFORMANCE
American Savings Bank's (American) net income
for the third quarter of 2015 was $13.5
million compared to $12.9
million in the second, or linked quarter of 2015 and
$13.3 million in the third quarter of
2014. Third quarter 2015 net income was $0.6
million higher than the linked quarter primarily driven by
the following on an after-tax basis:
- $1 million higher net interest
income primarily driven by higher average interest-earning assets
and a favorable shift to higher yielding assets; and
- $1 million higher noninterest
income primarily due to the gain on sale of an American service
center building vacated as part of the bank's facilities
consolidation plan; partially offset by
- $1 million higher provision for
loan losses primarily due to strong loan growth in the quarter;
and
- $1 million higher noninterest
expense.
Compared to the third quarter of 2014, net income was higher by
$0.2 million primarily driven by the
following on an after-tax basis:
- $1 million higher net interest
income in the third quarter of 2015 primarily due to higher average
interest earning assets; and
- $2 million higher noninterest
income primarily from the gain on sale of real estate and higher
fee income on deposit products and mortgage banking in the third
quarter of 2015; offset by
- $1 million higher provision for
loan losses attributable to higher loan growth; and
- $2 million higher noninterest
expense in the third quarter of 2015 due primarily to higher
pension and benefits expense.
Overall, American achieved solid profitability in the third
quarter of 2015 with a return on average equity of 9.73% and a
return on average assets of 0.92%.
For additional information, refer to the American news release
issued on October 30, 2015.
HOLDING AND OTHER COMPANIES
The holding and other
companies' net losses were $5.8
million in the third quarter of 2015 compared to
$4.3 million in the prior year
quarter. Excluding costs related to the pending merger with NextEra
Energy, Inc. and the spin-off of ASB Hawaii, the third quarter of
2015 net loss was $4.1 million
compared to $3.9 million in the same
quarter last year.
BOARD DECLARES QUARTERLY DIVIDEND
On November 4, 2015, the board of directors
maintained HEI's quarterly cash dividend of $0.31 cents per share, payable on December 10, 2015, to shareholders of record at
the close of business on November 23,
2015 (ex-dividend date is November
19, 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
November 4, 2015 of $29.30, HEI's yield is 4.2%.
HEI AND HAWAIIAN ELECTRIC COMPANY
CASH FLOW
RESTATEMENTS AND REVISIONS
In the course of preparing our
third quarter financial statements, HEI's and Hawaiian Electric
Company's management determined that Hawaiian Electric Company's
capital expenditures on HEI's and Hawaiian Electric Company's
Consolidated Statements of Cash Flows did not correctly account for
the beginning of period unpaid invoices and accruals (that were
paid in cash during the period). Accordingly, HEI and Hawaiian
Electric Company are each restating or revising their
previously filed Consolidated Statements of Cash Flows for the
periods stated below to correct for such misstatements by adjusting
cash used for "Capital expenditures" (investing activity) and the
change in accounts payable (operating activity).
Based on our review, HEI and Hawaiian Electric Company have
determined that, as a result of the described misstatements, HEI's
and Hawaiian Electric Company's consolidated net cash provided by
operating activities were understated for the years 2012 through
2014 approximately by $45 million,
$40 million, and $25 million, respectively, and approximately by
$65 million for both the first
three-month and the first six-month periods of 2015. Accordingly,
HEI's and Hawaiian Electric Company's restatements and revisions
will show higher cash inflows from operations for the periods
affected. Similarly, HEI's and Hawaiian Electric Company's
consolidated net cash used in investing activities due to capital
expenditures were also understated by the corresponding amounts in
their respective time periods. Accordingly, HEI's and Hawaiian
Electric Company's restatements and revisions will show greater
outflows of cash invested in capital expenditures. Furthermore, the
misstatements, as well as our revisions and restatements, did not
and will not have any impact on HEI's and Hawaiian Electric
Company's obligations nor upon utility customer rates.
On November 4, 2015, the Audit
Committees of the Boards of Directors of HEI and Hawaiian Electric
Company (Audit Committees), after consultation with management and
PricewaterhouseCoopers LLP, the independent registered public
accounting firm for HEI and Hawaiian Electric Company, concluded
that it is necessary to restate HEI's and Hawaiian Electric
Company's Consolidated Statements of Cash Flows for:
- the three months ended March 31,
2015 and 2014,
- the six months ended June 30,
2015 and 2014, and
- the years ended December 31, 2013
and 2012,
and therefore, such financial statements should no longer be
relied upon. The Audit Committees also concluded it was necessary
to revise HEI's and Hawaiian Electric Company's Consolidated
Statements of Cash Flows for:
- the nine months ended September 30,
2014 and
- the year ended December 31,
2014.
The restatements and revisions are necessary to correct the
misstatements related to capital expenditures, changes in accounts
payable, changes in deferred income taxes, changes in accrued
income taxes, and changes in other assets and liabilities as
described below. The restatements and revisions do not impact HEI's
and Hawaiian Electric Company's previously reported overall net
change in cash and cash equivalents in their Consolidated
Statements of Cash Flows for any period restated or revised.
Additionally, the restatements and revisions do not impact HEI's
and Hawaiian Electric Company's Consolidated Balance Sheets or
Consolidated Statements of Income for any period restated or
revised.
As soon as practicable, HEI and Hawaiian Electric Company expect
to amend the reports discussed above, in order to correct the
misstatements and related disclosures.
Preliminary Conclusions Regarding Internal Controls
In light of the above matter, management, in consultation with
the Audit Committees, has determined that a material weakness in
HEI's and Hawaiian Electric Company's internal control over
financial reporting existed at December 31,
2014. HEI and Hawaiian Electric Company intend to restate
management's report on internal control over financial reporting
and its evaluation of disclosure controls and procedures and expect
to receive an adverse opinion on the internal control over
financial reporting as of December 31,
2014, from PricewaterhouseCoopers LLP.
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 third quarter of 2015
earnings and 2015 EPS guidance on Thursday,
November 5, 2015, at 12:00 noon Hawaii time (5:00 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: 22822426. International parties may listen to the
conference by calling the following toll free number, (330)
863-3378 and entering passcode: 22822426. 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 November 19,
2015, by dialing (855) 859-2056 or (404) 537-3406 and
entering passcode: 22822426.
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 to 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, HEI's Quarterly
Report on Form 10-Q for the quarter ended June 30, 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.
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Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
|
|
|
Three months
ended
September
30
|
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Nine months
ended
September
30
|
|
(in thousands, except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
648,127
|
|
|
$
|
803,565
|
|
|
$
|
1,779,732
|
|
|
$
|
2,262,056
|
|
|
Bank
|
|
69,091
|
|
|
63,536
|
|
|
199,222
|
|
|
187,771
|
|
|
Other
|
|
(42)
|
|
|
(5)
|
|
|
(4)
|
|
|
(325)
|
|
|
Total
revenues
|
|
717,176
|
|
|
867,096
|
|
|
1,978,950
|
|
|
2,449,502
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
565,470
|
|
|
727,409
|
|
|
1,573,278
|
|
|
2,045,166
|
|
|
Bank
|
|
48,289
|
|
|
43,030
|
|
|
138,063
|
|
|
126,778
|
|
|
Other
|
|
6,322
|
|
|
4,621
|
|
|
28,278
|
|
|
13,125
|
|
|
Total
expenses
|
|
620,081
|
|
|
775,060
|
|
|
1,739,619
|
|
|
2,185,069
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
82,657
|
|
|
76,156
|
|
|
206,454
|
|
|
216,890
|
|
|
Bank
|
|
20,802
|
|
|
20,506
|
|
|
61,159
|
|
|
60,993
|
|
|
Other
|
|
(6,364)
|
|
|
(4,626)
|
|
|
(28,282)
|
|
|
(13,450)
|
|
|
Total operating
income
|
|
97,095
|
|
|
92,036
|
|
|
239,331
|
|
|
264,433
|
|
|
Interest expense,
net—other than on deposit liabilities and other bank
borrowings
|
|
(19,229)
|
|
|
(19,170)
|
|
|
(57,235)
|
|
|
(58,648)
|
|
|
Allowance for
borrowed funds used during construction
|
|
737
|
|
|
740
|
|
|
1,918
|
|
|
1,877
|
|
|
Allowance for equity
funds used during construction
|
|
2,057
|
|
|
1,937
|
|
|
5,366
|
|
|
4,933
|
|
|
Income before
income taxes
|
|
80,660
|
|
|
75,543
|
|
|
189,380
|
|
|
212,595
|
|
|
Income
taxes
|
|
29,516
|
|
|
27,264
|
|
|
70,406
|
|
|
76,302
|
|
|
Net
income
|
|
51,144
|
|
|
48,279
|
|
|
118,974
|
|
|
136,293
|
|
|
Preferred stock
dividends of subsidiaries
|
|
471
|
|
|
471
|
|
|
1,417
|
|
|
1,417
|
|
|
Net income for
common stock
|
|
$
|
50,673
|
|
|
$
|
47,808
|
|
|
$
|
117,557
|
|
|
$
|
134,876
|
|
|
Basic earnings per
common share
|
|
$
|
0.47
|
|
|
$
|
0.47
|
|
|
$
|
1.11
|
|
|
$
|
1.33
|
|
|
Diluted earnings
per common share
|
|
$
|
0.47
|
|
|
$
|
0.46
|
|
|
$
|
1.11
|
|
|
$
|
1.32
|
|
|
Dividends per
common share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
0.93
|
|
|
$
|
0.93
|
|
|
Weighted-average
number of common shares outstanding
|
|
107,457
|
|
|
102,416
|
|
|
106,067
|
|
|
101,768
|
|
|
Adjusted
weighted-average shares
|
|
107,738
|
|
|
103,026
|
|
|
106,347
|
|
|
102,478
|
|
|
Net income (loss)
for common stock by segment
|
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
43,006
|
|
|
$
|
38,879
|
|
|
$
|
102,721
|
|
|
$
|
108,529
|
|
|
Bank
|
|
13,451
|
|
|
13,253
|
|
|
39,777
|
|
|
39,188
|
|
|
Other
|
|
(5,784)
|
|
|
(4,324)
|
|
|
(24,941)
|
|
|
(12,841)
|
|
|
Net income for
common stock
|
|
$
|
50,673
|
|
|
$
|
47,808
|
|
|
$
|
117,557
|
|
|
$
|
134,876
|
|
|
Comprehensive income
attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
55,103
|
|
|
$
|
46,497
|
|
|
$
|
122,918
|
|
|
$
|
137,632
|
|
|
Return on average
common equity (twelve months ended)1
|
|
|
|
|
|
8.1
|
%
|
|
10.1
|
%
|
|
|
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.
|
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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, June 30,
2015 and September 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.
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|
|
1 On
a core basis, 2015 and 2014 returns on average common equity
(twelve months ended September 30) were 9.1% and 10.1%,
respectively. See reconciliation of GAAP to non-GAAP
measures.
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|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
(dollars in thousands)
|
|
September 30,
2015
|
|
December 31,
2014
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
228,417
|
|
|
$
|
175,542
|
|
|
Accounts receivable
and unbilled revenues, net
|
|
305,448
|
|
|
313,696
|
|
|
Available-for-sale
investment securities, at fair value
|
|
785,837
|
|
|
550,394
|
|
|
Stock in Federal Home
Loan Bank, at cost
|
|
10,678
|
|
|
69,302
|
|
|
Loans receivable held
for investment, net
|
|
4,487,130
|
|
|
4,389,033
|
|
|
Loans held for sale,
at lower of cost or fair value
|
|
5,598
|
|
|
8,424
|
|
|
Property, plant and
equipment, net of accumulated depreciation of $2,318,227 and
$2,250,950 at the respective dates
|
|
4,317,121
|
|
|
4,148,774
|
|
|
Regulatory
assets
|
|
897,948
|
|
|
905,264
|
|
|
Other
|
|
453,099
|
|
|
542,523
|
|
|
Goodwill
|
|
82,190
|
|
|
82,190
|
|
|
Total
assets
|
|
$
|
11,573,466
|
|
|
$
|
11,185,142
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
|
152,896
|
|
|
$
|
186,425
|
|
|
Interest and
dividends payable
|
|
25,914
|
|
|
25,336
|
|
|
Deposit
liabilities
|
|
4,825,954
|
|
|
4,623,415
|
|
|
Short-term
borrowings—other than bank
|
|
171,992
|
|
|
118,972
|
|
|
Other bank
borrowings
|
|
368,593
|
|
|
290,656
|
|
|
Long-term debt,
net—other than bank
|
|
1,506,546
|
|
|
1,506,546
|
|
|
Deferred income
taxes
|
|
643,951
|
|
|
633,570
|
|
|
Regulatory
liabilities
|
|
362,251
|
|
|
344,849
|
|
|
Contributions in aid
of construction
|
|
495,667
|
|
|
466,432
|
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
607,682
|
|
|
632,845
|
|
|
Other
|
|
456,726
|
|
|
531,230
|
|
|
Total
liabilities
|
|
9,618,172
|
|
|
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:
107,458,641 shares and 102,565,266 shares at the respective
dates
|
|
1,627,259
|
|
|
1,521,297
|
|
|
Retained
earnings
|
|
315,759
|
|
|
296,654
|
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
(22,017)
|
|
|
(27,378)
|
|
|
Total
shareholders' equity
|
|
1,921,001
|
|
|
1,790,573
|
|
|
Total liabilities
and shareholders' equity
|
|
$
|
11,573,466
|
|
|
$
|
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, June 30,
2015 and September 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
September 30
|
|
Nine months ended
September 30
|
|
(dollars
in thousands, except per barrel amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues
|
|
$
|
648,127
|
|
|
$
|
803,565
|
|
|
1,779,732
|
|
|
2,262,056
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Fuel oil
|
|
195,633
|
|
|
309,432
|
|
|
518,670
|
|
|
865,989
|
|
|
Purchased
power
|
|
160,518
|
|
|
192,882
|
|
|
445,809
|
|
|
546,121
|
|
|
Other operation and
maintenance
|
|
103,653
|
|
|
108,313
|
|
|
306,519
|
|
|
295,483
|
|
|
Depreciation
|
|
44,356
|
|
|
41,594
|
|
|
132,840
|
|
|
124,790
|
|
|
Taxes, other than
income taxes
|
|
61,310
|
|
|
75,188
|
|
|
169,440
|
|
|
212,783
|
|
|
Total
expenses
|
|
565,470
|
|
|
727,409
|
|
|
1,573,278
|
|
|
2,045,166
|
|
|
Operating
income
|
|
82,657
|
|
|
76,156
|
|
|
206,454
|
|
|
216,890
|
|
|
Allowance for equity
funds used during construction
|
|
2,057
|
|
|
1,937
|
|
|
5,366
|
|
|
4,933
|
|
|
Interest expense and
other charges, net
|
|
(16,557)
|
|
|
(16,414)
|
|
|
(49,170)
|
|
|
(48,989)
|
|
|
Allowance for
borrowed funds used during construction
|
|
737
|
|
|
740
|
|
|
1,918
|
|
|
1,877
|
|
|
Income before income
taxes
|
|
68,894
|
|
|
62,419
|
|
|
164,568
|
|
|
174,711
|
|
|
Income
taxes
|
|
25,390
|
|
|
23,042
|
|
|
60,351
|
|
|
64,686
|
|
|
Net
income
|
|
43,504
|
|
|
39,377
|
|
|
104,217
|
|
|
110,025
|
|
|
Preferred stock
dividends of subsidiaries
|
|
228
|
|
|
228
|
|
|
686
|
|
|
686
|
|
|
Net income
attributable to Hawaiian Electric
|
|
43,276
|
|
|
39,149
|
|
|
103,531
|
|
|
109,339
|
|
|
Preferred stock
dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
|
810
|
|
|
810
|
|
|
Net income for
common stock
|
|
$
|
43,006
|
|
|
$
|
38,879
|
|
|
102,721
|
|
|
108,529
|
|
|
Comprehensive
income attributable to Hawaiian Electric
|
|
$
|
43,010
|
|
|
$
|
38,889
|
|
|
$
|
102,732
|
|
|
$
|
108,561
|
|
|
OTHER ELECTRIC
UTILITY INFORMATION
|
|
|
|
|
|
|
|
|
|
Kilowatthour sales
(millions)
|
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
1,874
|
|
|
1,815
|
|
|
5,016
|
|
|
5,062
|
|
|
Hawaii
Electric Light
|
|
282
|
|
|
273
|
|
|
792
|
|
|
793
|
|
|
Maui
Electric
|
|
312
|
|
|
296
|
|
|
848
|
|
|
844
|
|
|
|
2,468
|
|
|
2,384
|
|
|
6,656
|
|
|
6,699
|
|
|
Wet-bulb temperature
(Oahu average; degrees Fahrenheit)
|
|
74.9
|
|
|
72.2
|
|
|
70.2
|
|
|
69.5
|
|
|
Cooling degree days
(Oahu)
|
|
1,711
|
|
|
1,631
|
|
|
3,687
|
|
|
3,703
|
|
|
Average fuel oil cost
per barrel
|
|
$
|
81.35
|
|
|
$
|
133.26
|
|
|
$
|
79.13
|
|
|
$
|
132.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended September 30
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Return on average
common equity (%) (simple average)
|
|
|
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
|
|
|
|
7.95
|
|
|
9.63
|
|
|
Hawaii
Electric Light
|
|
|
|
|
|
6.30
|
|
|
6.77
|
|
|
Maui
Electric
|
|
|
|
|
|
9.21
|
|
|
8.55
|
|
|
Hawaiian
Electric Consolidated
|
|
|
|
|
|
7.86
|
|
|
8.96
|
|
|
|
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, June 30, 2015 and September 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)
|
|
September 30,
2015
|
|
December 31,
2014
|
|
Assets
|
|
|
|
|
|
Property, plant
and equipment
|
|
|
|
|
|
Utility property,
plant and equipment
|
|
|
|
|
|
Land
|
|
$
|
52,283
|
|
|
$
|
52,299
|
|
|
Plant and
equipment
|
|
6,216,114
|
|
|
6,009,482
|
|
|
Less accumulated
depreciation
|
|
(2,246,614)
|
|
|
(2,175,510)
|
|
|
Construction in
progress
|
|
196,681
|
|
|
158,616
|
|
|
Utility property,
plant and equipment, net
|
|
4,218,464
|
|
|
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
|
|
4,225,026
|
|
|
4,051,450
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
10,704
|
|
|
13,762
|
|
|
Customer accounts
receivable, net
|
|
162,468
|
|
|
158,484
|
|
|
Accrued unbilled
revenues, net
|
|
123,578
|
|
|
137,374
|
|
|
Other accounts
receivable, net
|
|
4,763
|
|
|
4,283
|
|
|
Fuel oil stock, at
average cost
|
|
70,104
|
|
|
106,046
|
|
|
Materials and
supplies, at average cost
|
|
58,973
|
|
|
57,250
|
|
|
Prepayments and
other
|
|
46,891
|
|
|
66,383
|
|
|
Regulatory
assets
|
|
79,950
|
|
|
71,421
|
|
|
Total current
assets
|
|
557,431
|
|
|
615,003
|
|
|
Other long-term
assets
|
|
|
|
|
|
Regulatory
assets
|
|
817,998
|
|
|
833,843
|
|
|
Unamortized debt
expense
|
|
7,586
|
|
|
8,323
|
|
|
Other
|
|
75,951
|
|
|
81,838
|
|
|
Total other
long-term assets
|
|
901,535
|
|
|
924,004
|
|
|
Total
assets
|
|
$
|
5,683,992
|
|
|
$
|
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
|
|
578,930
|
|
|
578,938
|
|
|
Retained
earnings
|
|
1,032,690
|
|
|
997,773
|
|
|
Accumulated other
comprehensive income, net of income taxes-retirement benefit
plans
|
|
56
|
|
|
45
|
|
|
Common stock
equity
|
|
1,717,064
|
|
|
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
|
|
2,957,903
|
|
|
2,922,983
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term borrowings
from non-affiliates
|
|
94,995
|
|
|
—
|
|
|
Accounts
payable
|
|
124,779
|
|
|
163,934
|
|
|
Interest and
preferred dividends payable
|
|
25,078
|
|
|
22,316
|
|
|
Taxes
accrued
|
|
193,575
|
|
|
250,402
|
|
|
Regulatory
liabilities
|
|
347
|
|
|
632
|
|
|
Other
|
|
75,450
|
|
|
65,146
|
|
|
Total current
liabilities
|
|
514,224
|
|
|
502,430
|
|
|
Deferred credits
and other liabilities
|
|
|
|
|
|
Deferred income
taxes
|
|
625,422
|
|
|
602,872
|
|
|
Regulatory
liabilities
|
|
361,904
|
|
|
344,217
|
|
|
Unamortized tax
credits
|
|
83,648
|
|
|
79,492
|
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
570,028
|
|
|
595,395
|
|
|
Other
|
|
75,196
|
|
|
76,636
|
|
|
Total deferred
credits and other liabilities
|
|
1,716,198
|
|
|
1,698,612
|
|
|
Contributions in aid
of construction
|
|
495,667
|
|
|
466,432
|
|
|
Total
capitalization and liabilities
|
|
$
|
5,683,992
|
|
|
$
|
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, June 30, 2015 and September 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
|
|
Nine months ended
September 30
|
|
(in thousands)
|
|
September 30,
2015
|
|
June 30,
2015
|
|
September 30,
2014
|
|
2015
|
|
2014
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
46,413
|
|
|
$
|
46,035
|
|
|
$
|
45,532
|
|
|
$
|
137,646
|
|
|
$
|
133,065
|
|
|
Interest and
dividends on investment securities
|
|
4,213
|
|
|
3,306
|
|
|
2,773
|
|
|
10,570
|
|
|
8,758
|
|
|
Total interest and
dividend income
|
|
50,626
|
|
|
49,341
|
|
|
48,305
|
|
|
148,216
|
|
|
141,823
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposit
liabilities
|
|
1,355
|
|
|
1,266
|
|
|
1,312
|
|
|
3,881
|
|
|
3,774
|
|
|
Interest on other
borrowings
|
|
1,515
|
|
|
1,487
|
|
|
1,438
|
|
|
4,468
|
|
|
4,263
|
|
|
Total interest
expense
|
|
2,870
|
|
|
2,753
|
|
|
2,750
|
|
|
8,349
|
|
|
8,037
|
|
|
Net interest
income
|
|
47,756
|
|
|
46,588
|
|
|
45,555
|
|
|
139,867
|
|
|
133,786
|
|
|
Provision for loan
losses
|
|
2,997
|
|
|
1,825
|
|
|
1,550
|
|
|
5,436
|
|
|
3,566
|
|
|
Net interest
income after provision for loan losses
|
|
44,759
|
|
|
44,763
|
|
|
44,005
|
|
|
134,431
|
|
|
130,220
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
Fees from other
financial services
|
|
5,639
|
|
|
5,550
|
|
|
5,642
|
|
|
16,544
|
|
|
15,987
|
|
|
Fee income on deposit
liabilities
|
|
5,883
|
|
|
5,424
|
|
|
5,109
|
|
|
16,622
|
|
|
14,175
|
|
|
Fee income on other
financial products
|
|
2,096
|
|
|
2,103
|
|
|
1,971
|
|
|
6,088
|
|
|
6,325
|
|
|
Bank-owned life
insurance
|
|
1,021
|
|
|
1,058
|
|
|
1,000
|
|
|
3,062
|
|
|
2,945
|
|
|
Mortgage banking
income
|
|
1,437
|
|
|
2,068
|
|
|
875
|
|
|
5,327
|
|
|
1,749
|
|
|
Gains on sale of
investment securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,847
|
|
|
Other income,
net
|
|
2,389
|
|
|
239
|
|
|
634
|
|
|
3,363
|
|
|
1,920
|
|
|
Total noninterest
income
|
|
18,465
|
|
|
16,442
|
|
|
15,231
|
|
|
51,006
|
|
|
45,948
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
22,728
|
|
|
22,319
|
|
|
19,892
|
|
|
66,813
|
|
|
60,050
|
|
|
Occupancy
|
|
4,128
|
|
|
4,009
|
|
|
4,517
|
|
|
12,250
|
|
|
12,959
|
|
|
Data
processing
|
|
3,032
|
|
|
2,953
|
|
|
2,684
|
|
|
9,101
|
|
|
8,715
|
|
|
Services
|
|
2,556
|
|
|
2,833
|
|
|
2,580
|
|
|
7,730
|
|
|
7,708
|
|
|
Equipment
|
|
1,608
|
|
|
1,690
|
|
|
1,672
|
|
|
4,999
|
|
|
4,926
|
|
|
Office supplies,
printing and postage
|
|
1,511
|
|
|
1,303
|
|
|
1,415
|
|
|
4,297
|
|
|
4,487
|
|
|
Marketing
|
|
934
|
|
|
844
|
|
|
948
|
|
|
2,619
|
|
|
2,690
|
|
|
FDIC
insurance
|
|
809
|
|
|
773
|
|
|
840
|
|
|
2,393
|
|
|
2,441
|
|
|
Other
expense
|
|
5,116
|
|
|
4,755
|
|
|
4,182
|
|
|
14,076
|
|
|
11,198
|
|
|
Total noninterest
expense
|
|
42,422
|
|
|
41,479
|
|
|
38,730
|
|
|
124,278
|
|
|
115,174
|
|
|
Income before
income taxes
|
|
20,802
|
|
|
19,726
|
|
|
20,506
|
|
|
61,159
|
|
|
60,994
|
|
|
Income
taxes
|
|
7,351
|
|
|
6,875
|
|
|
7,253
|
|
|
21,382
|
|
|
21,806
|
|
|
Net
income
|
|
$
|
13,451
|
|
|
$
|
12,851
|
|
|
$
|
13,253
|
|
|
$
|
39,777
|
|
|
$
|
39,188
|
|
|
Comprehensive
income
|
|
$
|
17,678
|
|
|
$
|
9,544
|
|
|
$
|
11,804
|
|
|
$
|
44,540
|
|
|
$
|
41,521
|
|
|
OTHER BANK
INFORMATION (annualized %, except as of period end)
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.92
|
|
|
0.89
|
|
|
0.98
|
|
|
0.92
|
|
|
0.97
|
|
|
Return on average
equity
|
|
9.73
|
|
|
9.38
|
|
|
9.88
|
|
|
9.69
|
|
|
9.83
|
|
|
Return on average
tangible common equity
|
|
11.43
|
|
|
11.04
|
|
|
11.67
|
|
|
11.40
|
|
|
11.63
|
|
|
Net interest
margin
|
|
3.53
|
|
|
3.52
|
|
|
3.62
|
|
|
3.52
|
|
|
3.60
|
|
|
Net charge-offs to
average loans outstanding
|
|
0.10
|
|
|
0.11
|
|
|
0.04
|
|
|
0.08
|
|
|
0.01
|
|
|
As of period
end
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to loans outstanding and real estate owned *
|
|
1.00
|
|
|
0.70
|
|
|
0.88
|
|
|
|
|
|
|
Allowance for loan
losses to loans outstanding
|
|
1.06
|
|
|
1.04
|
|
|
1.00
|
|
|
|
|
|
|
Tangible common
equity to tangible assets
|
|
8.23
|
|
|
8.16
|
|
|
8.48
|
|
|
|
|
|
|
Tier-1 leverage ratio
*
|
|
8.8
|
|
|
8.8
|
|
|
9.1
|
|
|
|
|
|
|
Total capital ratio
*
|
|
13.4
|
|
|
13.5
|
|
|
12.6
|
|
|
|
|
|
|
Dividend paid to HEI
(via ASB Hawaii, Inc.) ($ in millions)
|
|
$
|
7.5
|
|
|
$
|
7.5
|
|
|
$
|
8.8
|
|
|
|
|
|
|
|
* Regulatory basis.
Capital ratios as of September 30, 2015 and June 30, 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, June 30,
2015 and September 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)
|
|
|
(in
thousands)
|
September 30,
2015
|
December 31,
2014
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
103,934
|
|
|
$
|
107,233
|
|
|
Interest-bearing
deposits
|
|
73,041
|
|
|
54,230
|
|
|
Available-for-sale
investment securities, at fair value
|
|
785,837
|
|
|
550,394
|
|
|
Stock in Federal Home
Loan Bank, at cost
|
|
10,678
|
|
|
69,302
|
|
|
Loans receivable held
for investment
|
|
4,535,404
|
|
|
4,434,651
|
|
|
Allowance for loan
losses
|
|
(48,274)
|
|
|
(45,618)
|
|
|
Net loans
|
|
4,487,130
|
|
|
4,389,033
|
|
|
Loans held for sale,
at lower of cost or fair value
|
|
5,598
|
|
|
8,424
|
|
|
Other
|
|
307,089
|
|
|
305,416
|
|
|
Goodwill
|
|
82,190
|
|
|
82,190
|
|
|
Total
assets
|
|
$
|
5,855,497
|
|
|
$
|
5,566,222
|
|
|
Liabilities and
shareholder's equity
|
|
|
|
|
|
Deposit
liabilities–noninterest-bearing
|
|
$
|
1,422,843
|
|
|
$
|
1,342,794
|
|
|
Deposit
liabilities–interest-bearing
|
|
3,403,111
|
|
|
3,280,621
|
|
|
Other
borrowings
|
|
368,593
|
|
|
290,656
|
|
|
Other
|
|
103,553
|
|
|
118,363
|
|
|
Total
liabilities
|
|
5,298,100
|
|
|
5,032,434
|
|
|
Common
stock
|
|
1
|
|
|
1
|
|
|
Additional paid in
capital
|
|
339,980
|
|
|
338,411
|
|
|
Retained
earnings
|
|
229,211
|
|
|
211,934
|
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
|
|
|
|
Net unrealized gains on
securities
|
$
|
4,070
|
|
$
|
462
|
|
|
Retirement benefit
plans
|
(15,865)
|
(11,795)
|
|
(17,020)
|
(16,558)
|
|
|
Total
shareholder's equity
|
|
557,397
|
|
|
533,788
|
|
|
Total liabilities
and shareholder's equity
|
|
$
|
5,855,497
|
|
|
$
|
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, June 30,
2015 and September 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
September 30
|
|
Nine months
ended
September
30
|
|
2015
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
HEI CONSOLIDATED
NET INCOME
|
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
50.7
|
|
$
|
47.8
|
|
|
$
|
117.6
|
|
$
|
134.9
|
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc. and spin-off of ASB
Hawaii, Inc
|
1.7
|
|
0.4
|
|
|
13.6
|
|
0.6
|
|
|
Non-GAAP
(core)
|
$
|
52.4
|
|
$
|
48.3
|
|
|
$
|
131.1
|
|
$
|
135.4
|
|
|
|
|
|
|
|
HEI CONSOLIDATED
DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
0.47
|
|
$
|
0.46
|
|
|
$
|
1.11
|
|
$
|
1.32
|
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc. and spin-off of ASB
Hawaii, Inc
|
0.02
|
|
—
|
|
|
0.13
|
|
0.01
|
|
|
Non-GAAP
(core)
|
$
|
0.49
|
|
$
|
0.47
|
|
|
$
|
1.23
|
|
$
|
1.32
|
|
|
HEI CONSOLIDATED
RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
|
|
|
|
Twelve months
ended September 30
|
|
|
|
|
2015
|
2014
|
|
Based on
GAAP
|
|
|
|
8.1
|
%
|
10.1
|
%
|
|
Based on non-GAAP
(core)2
|
|
|
|
9.1
|
%
|
10.1
|
%
|
|
|
|
|
|
|
|
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
September 30
|
|
Nine months
ended
September
30
|
|
2015
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED NET INCOME
|
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
43.0
|
|
$
|
38.9
|
|
|
$
|
102.7
|
|
$
|
108.5
|
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc.
|
—
|
|
—
|
|
|
0.3
|
|
—
|
|
|
Non-GAAP
(core)
|
$
|
43.0
|
|
$
|
38.9
|
|
|
$
|
103.0
|
|
$
|
108.5
|
|
|
|
|
|
|
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY
|
|
|
|
Twelve months
ended September 30
|
|
(ROACE) (simple
average)
|
|
|
|
2015
|
2014
|
|
Based on
GAAP
|
|
|
|
7.86
|
%
|
8.96
|
%
|
|
Based on non-GAAP
(core)2
|
|
|
|
7.88
|
%
|
8.96
|
%
|
|
|
|
|
|
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED OTHER OPERATION
|
Three months
ended September 30
|
|
Nine months
ended
September
30
|
|
AND MAINTENANCE
(O&M) EXPENSE
|
2015
|
2014
|
|
2015
|
2014
|
|
GAAP (as
reported)
|
$
|
103.7
|
|
$
|
108.3
|
|
|
$
|
306.5
|
|
$
|
295.5
|
|
|
Excluding
O&M-related net income neutral items3
|
1.9
|
|
2.5
|
|
|
5.4
|
|
7.5
|
|
|
Excluding costs
related to pending merger with NextEra Energy,
Inc.
|
—
|
|
—
|
|
|
0.4
|
|
—
|
|
|
Non-GAAP (Adjusted
other O&M expense)
|
$
|
101.8
|
|
$
|
105.8
|
|
|
$
|
300.7
|
|
$
|
288.0
|
|
|
|
|
|
|
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.