NOVI, Mich., Nov. 5, 2015 /PRNewswire/ --
Highlights
- Third quarter 2015 operating earnings of $0.53 per diluted common share increased over the
same period last year; third quarter 2015 reported earnings of
$0.42 per diluted common
share
- Operating earnings for the nine months ended September 30, 2015 of $1.51 per diluted common share increased over the
same period last year; reported earnings for the nine months ended
September 30, 2015 of $1.31 per diluted common share
- Capital investments of $501.4
million for the nine months ended September 30, 2015
- 2015 operating earnings per share guidance of $2.00 to $2.15 per diluted share remains
unchanged and the capital investment guidance revised to
$715 to $765 million
- Announced accelerated share repurchase of $115 million
|
Three months
ended
|
|
Nine months
ended
|
(in thousands, except
per share data)
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
OPERATING
REVENUES
|
$
|
273,189
|
|
|
$
|
270,134
|
|
|
$
|
820,734
|
|
|
$
|
791,951
|
|
REPORTED NET
INCOME
|
$
|
65,573
|
|
|
$
|
73,873
|
|
|
$
|
205,041
|
|
|
$
|
197,345
|
|
OPERATING
EARNINGS
|
$
|
82,334
|
|
|
$
|
73,664
|
|
|
$
|
236,214
|
|
|
$
|
216,126
|
|
REPORTED DILUTED
EPS
|
$
|
0.42
|
|
|
$
|
0.47
|
|
|
$
|
1.31
|
|
|
$
|
1.25
|
|
OPERATING DILUTED
EPS
|
$
|
0.53
|
|
|
$
|
0.47
|
|
|
$
|
1.51
|
|
|
$
|
1.36
|
|
|
ITC Holdings Corp. (NYSE: ITC) announced today its results for
the third quarter and nine month period ended September 30, 2015.
Reported net income for the third quarter, measured in
accordance with Generally Accepted Accounting Principles (GAAP),
was $65.6 million, or $0.42 per diluted common share, compared to
$73.9 million or $0.47 per diluted common share for the third
quarter of 2014. For the nine months ended September 30, 2015, reported net income was
$205.0 million, or $1.31 per diluted common share, compared to
$197.3 million, or $1.25 per diluted common share for the same
period last year.
Operating earnings for the third quarter were $82.3 million, or $0.53 per diluted common share, compared to
operating earnings of $73.7 million,
or $0.47 per diluted common share for
the third quarter of 2014. For the nine months ended September 30, 2015, operating earnings were
$236.2 million, or $1.51 per diluted common share, compared to
operating earnings of $216.1 million,
or $1.36 per diluted common share for
the same period last year.
ITC invested $501.4 million in
capital projects during the nine month period ended September 30, 2015, including $120.2 million at ITCTransmission,
$91.6 million at METC, $273.9 million at ITC Midwest, $11.6 million at ITC Great Plains and
$4.1 million of Development and
Other.
"During the third quarter, we continued to execute on our
strategy to invest in critical transmission infrastructure,
including base and regional capital, while delivering operational
excellence at all of our operating companies," said Joseph L. Welch, chairman, president and CEO of
ITC. "We also remain focused on prudent value return as evidenced
by the 15% dividend increase this quarter as well as the
$115 million accelerated share
repurchase program that will be completed by the end of the
year."
Operating Earnings
Operating earnings are non-GAAP
measures that exclude the impact of after-tax expenses associated
with the following items:
- The Entergy Corporation transaction impacts were approximately
$(0.1) million for the third quarter
of 2014. These expenses total $0.6
million for the nine months ended September 30, 2014.
- Regulatory charges of approximately $5.5
million, or $0.04 per diluted
common share for the third quarter of 2015. These expenses totaled
$6.6 million, or $0.04 per diluted common share for the nine
months ended September 30, 2015 and
$0.1 million for the nine months
ended September 30, 2014. Of the 2015
charges, $1.1 million relates to
management's decision to write-off abandoned project costs at
ITCTransmission and $5.5
million relates to a refund liability attributable to
contributions in aid of construction (CIAC refund liability). The
2014 charge relates to certain acquisition accounting adjustments
for ITC Midwest, ITCTransmission, and METC resulting from
the FERC audit order on ITC Midwest issued in May 2012.
- Loss on extinguishment of debt associated with the cash tender
offer and consent solicitation transaction for select bonds at ITC
Holdings that we completed in the second quarter of 2014. The
impact of this item totaled $(0.1)
million for the third quarter of 2014 and $18.0 million, or $0.11 per diluted common share, for the nine
months ended September 30, 2014.
- The estimated refund liability associated with the Midcontinent
ISO (MISO) regional base ROE rate (the "base ROE") of $11.2 million, or $0.07 per diluted common share, and $24.5 million, or $0.16 per diluted common share, for the third
quarter and nine month period ended September 30, 2015, respectively. The refund
liability reflects the estimated refund obligation associated with
the base ROE 206 complaints.
Operating earnings for the third quarter and nine month period
ended September 30, 2015 increased by
$8.6 million, or $0.06 per diluted common share, and $20.1 million, or $0.15 per diluted common share, compared with the
same period last year. The increases compared to the prior period
were largely attributable to higher income associated with
increased rate base at our operating companies, partially offset by
non-recoverable bonus payments expensed primarily in the first
quarter associated with completion of the Kansas V-Plan Project at
ITC Great Plains in December of 2014 coupled with higher
professional services for various development initiatives. Absent
the Kansas V-Plan Project bonus payments, year-over-year operating
earnings would have increased by approximately 14%
year-to-date.
Share Repurchase
On September
30, 2015, ITC entered into an accelerated share repurchase
(ASR) program for $115 million, which
is expected to be completed by the end of 2015. Under the ASR
program, ITC received an initial delivery of 2.8 million shares on
October 1, 2015, with a market value
of $92 million. The final number of
shares delivered under the ASR program will be based on the
volume-weighted average share price of our common stock during the
term of the transaction, less an agreed upon discount and adjusted
for the initial share delivery.
2015 EPS and Capital Investment Guidance
For 2015,
ITC's full year operating earnings per share guidance of
$2.00 to $2.15 remains unchanged. ITC
is revising its 2015 capital guidance range to a range of
$715 to $765 million from the
previous range of $710 to $810
million. The revised range includes $180 to $190 million for ITCTransmission,
$155 to $170 million for METC,
$370 to $385 million for ITC Midwest,
$10 to $15 million for ITC Great
Plains and up to $5 million of
Development and Other.
Third Quarter 2015 Operating Earnings Financial Results
Detail — Non-GAAP Measure
ITC's operating revenues
for the third quarter of 2015 increased to $299.8 million compared to $270.1 million for the third quarter of 2014.
Amounts reported for the third quarter of 2015 exclude
approximately $18.0 million in
reduced pre-tax revenues associated with the base ROE refund
liability and $8.6 million in reduced
pre-tax revenues associated with the CIAC refund liability. This
increase was primarily due to higher revenue requirements
attributable to a higher rate base at our regulated operating
subsidiaries, as well as an increase in regional cost sharing
revenues resulting from additional capital projects being placed
in-service that have been identified by MISO as eligible for
regional cost sharing.
Operation and maintenance (O&M) expenses of $32.7 million were $3.7
million higher than the same period in 2014. The increase in
O&M expenses was primarily due to higher vegetation management
requirements and higher expenses associated with substation and
overhead line maintenance activities.
General and administrative (G&A) expenses of $33.7 million were $4.7
million higher compared to the same period in 2014. Amounts
reported for the third quarter 2014 were impacted by $(0.2) million of pre-tax activity related to the
Entergy transaction. The increase in G&A expenses was primarily
due to higher compensation expenses related to personnel additions
and higher professional services for various development
initiatives.
Depreciation and amortization expenses of $36.9 million increased by $5.0 million compared to the same period in 2014
due to a higher depreciable base resulting from property, plant and
equipment in-service additions.
Taxes other than income taxes of $20.5
million were $1.3 million
higher than the same period in 2014. This increase was due to 2014
capital additions at our regulated operating subsidiaries, which
are included in the assessment for 2015 personal property
taxes.
Interest expense of $50.1 million
increased by $2.8 million compared to
the same period in 2014. Amounts reported for the third quarter of
2015 exclude $1.3 million of pre-tax
expenses related to the adjustments to operating earnings. The
increase was due primarily to higher borrowing levels to finance
capital investments.
The effective income tax rate for the third quarter of 2015 was
37.4 percent compared to 37.7 percent for the same period last
year. Amounts reported for the third quarter of 2015 exclude income
taxes of approximately $11.1 million
associated with adjustments to operating earnings.
Year-to-Date 2015 Operating Earnings Financial Results Detail
— Non-GAAP Measure
ITC's operating revenues for the
nine months ended September 30, 2015
increased to $868.1 million compared
to $792.0 million from the same
period last year. Amounts reported for the nine months ended
September 30, 2015 exclude
approximately $38.8 million in
reduced pre-tax revenues associated with the base ROE refund
liability and $8.6 million in pre-tax
revenues associated with the CIAC refund liability. This increase
was primarily due to higher revenue requirements attributable to a
higher rate base at our regulated operating subsidiaries, as well
as an increase in regional cost sharing revenues due to additional
capital projects being placed in-service that have been identified
by MISO as eligible for regional cost sharing.
O&M expenses of $88.3 million
were $8.6 million higher for the nine
months ended September 30, 2015
compared to the same period in 2014. The increase in O&M
expenses was primarily due to higher vegetation management
requirements and higher expenses associated with substation and
overhead line maintenance activities.
G&A expenses of $105.6 million
were $19.5 million higher compared to
the same period in 2014. Amounts reported for the nine months ended
September 30, 2015 exclude
approximately $1.5 million of pre-tax
expenses related to regulatory charges and the nine months ended
September 30, 2014 exclude
approximately $1.0 million of pre-tax
expenses associated with the Entergy transaction. The increase in
G&A expenses was primarily due to incentive-based compensation
for bonus payments associated with completion of the Kansas V-Plan
Project at ITC Great Plains in December of 2014 and higher
professional services for various development initiatives.
Depreciation and amortization expenses of $106.9 million increased by $12.3 million for the nine months ended
September 30, 2015 compared to the
same period in 2014 due to a higher depreciable base resulting from
property, plant and equipment in-service additions.
Taxes other than income taxes of $61.6
million were $4.1 million
higher compared to the same period in 2014. This increase was due
to 2014 capital additions at our regulated operating subsidiaries,
which are included in the assessment for 2015 personal property
taxes.
Interest expense of $147.8 million
was $9.5 million higher compared to
the same period in 2014. Amounts reported for the nine months ended
September 30, 2015 and 2014 exclude
approximately $2.3 million and
$0.2 million, respectively, of
pre-tax expenses associated with the adjustments to operating
earnings noted previously. The increase in interest expense was due
primarily to higher borrowing levels to finance capital
investments.
The effective income tax rate for the nine months ended
September 30, 2015 was 37.5 percent
compared to 38.0 percent for the same period in 2014. Amounts
reported for the nine months ended September
30, 2015 and 2014 exclude income taxes of $20.0 million and $11.6
million, respectively, associated with adjustments to
operating earnings noted previously.
Third Quarter Conference Call and Webcast
Joseph L. Welch, chairman, president
and CEO and Rejji P. Hayes, senior
vice president, CFO and treasurer will discuss the third quarter
results in a conference call at 11
a.m. Eastern on Thursday, November 5, 2015. Individuals
wishing to participate in the conference call may dial toll-free
877-644-1296 (domestic) or 914-495-8555 (international); there is
no passcode. A listen-only live webcast of the conference call,
including accompanying slides and the earnings release, will be
available on the company's investor information page. The
conference call replay, available through November 10, 2015, can be accessed by dialing
855-859-2056 (toll free) or 404-537-3406, passcode 51993117. The
webcast will be archived on the ITC website.
Other Available Information
More detail about third
quarter 2015 results may be found in ITC's Form 10-Q filing. Once
filed with the Securities and Exchange Commission, an electronic
copy of our 10-Q can be found at our website,
http://investor.itc-holdings.com. Paper copies can also be made
available by contacting us through our website. Additionally, a
calendar of our future earnings calls can be found at our website,
http://investor.itc-holdings.com.
About ITC Holdings Corp.
ITC Holdings Corp. (NYSE:
ITC) is the nation's largest independent electric transmission
company. Based in Novi, Michigan,
ITC invests in the electric transmission grid to improve
reliability, expand access to markets, lower the overall cost of
delivered energy and allow new generating resources to interconnect
to its transmission systems. Through its regulated operating
subsidiaries ITCTransmission, Michigan Electric Transmission
Company, ITC Midwest and ITC Great Plains, ITC owns and operates
high-voltage transmission facilities in Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma, serving a combined peak load
exceeding 26,000 megawatts along approximately 15,600 circuit miles
of transmission line. ITC's grid development focus includes growth
through regulated infrastructure investment as well as domestic and
international expansion through merchant and other commercial
development opportunities. For more information, please visit ITC's
website at www.itc-holdings.com (ITC-itc-F).
GAAP v. Non-GAAP Measures
ITC's reported earnings are
prepared in accordance with GAAP and represent earnings as reported
to the Securities and Exchange Commission. ITC's management
believes that operating earnings, or GAAP earnings adjusted for
specific items as described in the release that are generally not
indicative of our core operations, provides additional information
that is useful to investors in understanding ITC's underlying
performance, business and performance trends, and helps facilitate
period to period comparisons. However, non-GAAP financial measures
are not required to be uniformly applied, are not audited and
should not be considered in isolation or as substitutes for results
prepared in accordance with GAAP.
Safe Harbor Statement
This press release contains
certain statements that describe our management's beliefs
concerning future business conditions, plans and prospects, growth
opportunities and the outlook for our business and the electricity
transmission industry based upon information currently available.
Such statements are "forward-looking" statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Wherever
possible, we have identified these forward-looking statements by
words such as "will," "may," "anticipates," "believes," "intends,"
"estimates," "expects," "projects" and similar phrases. These
forward-looking statements are based upon assumptions our
management believes are reasonable. Such forward looking statements
are subject to risks and uncertainties which could cause our actual
results, performance and achievements to differ materially from
those expressed in, or implied by, these statements, including,
among others, the risks and uncertainties disclosed in our annual
reports on Form 10-K, quarterly reports on Form 10-Q and other
filings made with the Securities and Exchange Commission.
Because our forward-looking statements are based on estimates
and assumptions that are subject to significant business, economic
and competitive uncertainties, many of which are beyond our control
or are subject to change, actual results could be materially
different and any or all of our forward-looking statements may turn
out to be wrong. Forward-looking statements speak only as of the
date made and can be affected by assumptions we might make or by
known or unknown risks and uncertainties. Many factors mentioned in
our discussion in this release and in our annual and quarterly
reports will be important in determining future results.
Consequently, we cannot assure you that our expectations or
forecasts expressed in such forward-looking statements will be
achieved. Except as required by law, we undertake no obligation to
publicly update any of our forward-looking or other statements,
whether as a result of new information, future events, or
otherwise.
ITC HOLDINGS CORP.
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
(in thousands,
except per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
OPERATING
REVENUES
|
$
|
273,189
|
|
|
$
|
270,134
|
|
|
$
|
820,734
|
|
|
$
|
791,951
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Operation and
maintenance
|
32,721
|
|
|
29,038
|
|
|
88,309
|
|
|
79,735
|
|
General and
administrative
|
33,677
|
|
|
28,812
|
|
|
107,064
|
|
|
87,082
|
|
Depreciation and
amortization
|
36,890
|
|
|
31,936
|
|
|
106,903
|
|
|
94,609
|
|
Taxes other than
income taxes
|
20,463
|
|
|
19,205
|
|
|
61,629
|
|
|
57,474
|
|
Other operating
(income) and expenses — net
|
(206)
|
|
|
(289)
|
|
|
(675)
|
|
|
(750)
|
|
Total operating
expenses
|
123,545
|
|
|
108,702
|
|
|
363,230
|
|
|
318,150
|
|
OPERATING
INCOME
|
149,644
|
|
|
161,432
|
|
|
457,504
|
|
|
473,801
|
|
OTHER EXPENSES
(INCOME)
|
|
|
|
|
|
|
|
Interest expense —
net
|
51,398
|
|
|
47,328
|
|
|
150,070
|
|
|
138,491
|
|
Allowance for equity
funds used during construction
|
(6,421)
|
|
|
(4,921)
|
|
|
(21,434)
|
|
|
(14,865)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
29,074
|
|
Other
income
|
(384)
|
|
|
(244)
|
|
|
(804)
|
|
|
(618)
|
|
Other
expense
|
1,372
|
|
|
761
|
|
|
2,969
|
|
|
3,696
|
|
Total other expenses
(income)
|
45,965
|
|
|
42,924
|
|
|
130,801
|
|
|
155,778
|
|
INCOME BEFORE
INCOME TAXES
|
103,679
|
|
|
118,508
|
|
|
326,703
|
|
|
318,023
|
|
INCOME TAX
PROVISION
|
38,106
|
|
|
44,635
|
|
|
121,662
|
|
|
120,678
|
|
NET
INCOME
|
$
|
65,573
|
|
|
$
|
73,873
|
|
|
$
|
205,041
|
|
|
$
|
197,345
|
|
Basic earnings per
common share
|
$
|
0.42
|
|
|
$
|
0.47
|
|
|
$
|
1.32
|
|
|
$
|
1.26
|
|
Diluted earnings per
common share
|
$
|
0.42
|
|
|
$
|
0.47
|
|
|
$
|
1.31
|
|
|
$
|
1.25
|
|
Operating diluted
earnings per common share
|
$
|
0.53
|
|
|
$
|
0.47
|
|
|
$
|
1.51
|
|
|
$
|
1.36
|
|
Dividends declared
per common share
|
$
|
0.1875
|
|
|
$
|
0.1625
|
|
|
$
|
0.5125
|
|
|
$
|
0.4475
|
|
|
RECONCILIATION OF
REPORTED NET INCOME (GAAP) TO OPERATING EARNINGS (NON-GAAP MEASURE)
- UNAUDITED
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reported net income
(GAAP)
|
$
|
65,573
|
|
|
$
|
73,873
|
|
|
$
|
205,041
|
|
|
$
|
197,345
|
|
After-tax Entergy
transaction related expenses
|
—
|
|
|
(143)
|
|
|
—
|
|
|
601
|
|
After-tax regulatory
charges
|
5,549
|
|
|
—
|
|
|
6,632
|
|
|
132
|
|
After-tax debt
extinguishment & consent solicitation fees
|
—
|
|
|
(66)
|
|
|
—
|
|
|
18,048
|
|
After-tax MISO
regional base ROE rate refund liability
|
11,212
|
|
|
—
|
|
|
24,541
|
|
|
—
|
|
Operating earnings
(non-GAAP)
|
$
|
82,334
|
|
|
$
|
73,664
|
|
|
$
|
236,214
|
|
|
$
|
216,126
|
|
|
RECONCILIATION OF
REPORTED DILUTED EPS (GAAP) TO OPERATING DILUTED EPS (NON-GAAP
MEASURE) - UNAUDITED
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reported diluted EPS
(GAAP)
|
$
|
0.42
|
|
|
$
|
0.47
|
|
|
$
|
1.31
|
|
|
$
|
1.25
|
|
After-tax Entergy
transaction related expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
After-tax regulatory
charges
|
0.04
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
After-tax debt
extinguishment & consent solicitation fees
|
—
|
|
|
—
|
|
|
—
|
|
|
0.11
|
|
After-tax MISO
regional base ROE rate refund liability
|
0.07
|
|
|
—
|
|
|
0.16
|
|
|
—
|
|
Operating diluted EPS
(non-GAAP)
|
$
|
0.53
|
|
|
$
|
0.47
|
|
|
$
|
1.51
|
|
|
$
|
1.36
|
|
ITC HOLDINGS CORP.
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(UNAUDITED)
|
|
|
September
30,
|
|
December
31,
|
(in thousands,
except share data)
|
2015
|
|
2014
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
24,167
|
|
|
$
|
27,741
|
|
Accounts
receivable
|
124,310
|
|
|
100,998
|
|
Inventory
|
29,491
|
|
|
30,892
|
|
Deferred income
taxes
|
17,002
|
|
|
14,511
|
|
Regulatory
assets
|
12,378
|
|
|
5,393
|
|
Prepaid and other
current assets
|
11,598
|
|
|
7,281
|
|
Total current
assets
|
218,946
|
|
|
186,816
|
|
Property, plant and
equipment (net of accumulated depreciation and amortization
of $1,466,591 and $1,388,217, respectively)
|
5,890,138
|
|
|
5,496,875
|
|
Other
assets
|
|
|
|
Goodwill
|
950,163
|
|
|
950,163
|
|
Intangible assets
(net of accumulated amortization of $27,411 and $24,917,
respectively)
|
46,325
|
|
|
48,794
|
|
Regulatory
assets
|
224,913
|
|
|
223,712
|
|
Deferred financing
fees (net of accumulated amortization of $16,504 and
$15,972, respectively)
|
30,222
|
|
|
30,311
|
|
Other
|
44,892
|
|
|
37,418
|
|
Total other
assets
|
1,296,515
|
|
|
1,290,398
|
|
TOTAL
ASSETS
|
$
|
7,405,599
|
|
|
$
|
6,974,089
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
108,828
|
|
|
$
|
107,969
|
|
Accrued
payroll
|
20,660
|
|
|
23,502
|
|
Accrued
interest
|
41,642
|
|
|
50,538
|
|
Accrued
taxes
|
26,048
|
|
|
41,614
|
|
Regulatory
liabilities
|
43,607
|
|
|
39,972
|
|
Refundable deposits
from generators for transmission network upgrades
|
2,657
|
|
|
10,376
|
|
Debt maturing within
one year
|
694,327
|
|
|
175,000
|
|
Other
|
11,531
|
|
|
14,043
|
|
Total current
liabilities
|
949,300
|
|
|
463,014
|
|
Accrued pension
and postretirement liabilities
|
70,833
|
|
|
69,562
|
|
Deferred income
taxes
|
746,179
|
|
|
656,562
|
|
Regulatory
liabilities
|
210,811
|
|
|
160,070
|
|
Refundable
deposits from generators for transmission network
upgrades
|
9,039
|
|
|
9,384
|
|
Other
|
27,695
|
|
|
17,354
|
|
Long-term
debt
|
3,709,878
|
|
|
3,928,586
|
|
Commitments and
contingent liabilities
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Common stock, without
par value, 300,000,000 shares authorized, 156,177,085
and 155,140,967 shares issued and outstanding at
September 30, 2015 and
December 31, 2014, respectively
|
811,037
|
|
|
923,191
|
|
Retained
earnings
|
866,900
|
|
|
741,550
|
|
Accumulated other
comprehensive income
|
3,927
|
|
|
4,816
|
|
Total stockholders'
equity
|
1,681,864
|
|
|
1,669,557
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
7,405,599
|
|
|
$
|
6,974,089
|
|
ITC HOLDINGS CORP.
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
|
|
|
Nine months
ended
|
|
September
30,
|
(in
thousands)
|
2015
|
|
2014
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
|
205,041
|
|
|
$
|
197,345
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization expense
|
106,903
|
|
|
94,609
|
|
Recognition, refund
and collection of revenue accruals and deferrals — including
accrued interest
|
1,164
|
|
|
29,175
|
|
Deferred income tax
expense
|
76,103
|
|
|
86,935
|
|
Allowance for equity
funds used during construction
|
(21,434)
|
|
|
(14,865)
|
|
Loss on extinguishment
of debt
|
—
|
|
|
29,074
|
|
Other
|
14,950
|
|
|
15,474
|
|
Changes in assets and
liabilities, exclusive of changes shown separately:
|
|
|
|
Accounts
receivable
|
(24,523)
|
|
|
(24,057)
|
|
Inventory
|
1,401
|
|
|
1,423
|
|
Prepaid and other
current assets
|
(4,317)
|
|
|
3,377
|
|
Accounts
payable
|
(1,120)
|
|
|
(16,382)
|
|
Accrued
payroll
|
(1,520)
|
|
|
(1,710)
|
|
Accrued
interest
|
(8,896)
|
|
|
(18,161)
|
|
Accrued
taxes
|
(15,566)
|
|
|
(3,156)
|
|
Other current
liabilities
|
132
|
|
|
(13,486)
|
|
Other non-current
assets and liabilities, net
|
57,970
|
|
|
(4,694)
|
|
Net cash provided by
operating activities
|
386,288
|
|
|
360,901
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Expenditures for
property, plant and equipment
|
(460,110)
|
|
|
(549,599)
|
|
Other
|
(14,969)
|
|
|
(2,667)
|
|
Net cash used in
investing activities
|
(475,079)
|
|
|
(552,266)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Issuance of long-term
debt
|
225,000
|
|
|
498,664
|
|
Borrowings under
revolving credit agreements
|
909,400
|
|
|
1,397,800
|
|
Borrowings under term
loan credit agreements
|
—
|
|
|
110,000
|
|
Net issuance of
commercial paper
|
218,983
|
|
|
—
|
|
Retirement of
long-term debt — including extinguishment of debt costs
|
—
|
|
|
(248,494)
|
|
Repayments of
revolving credit agreements
|
(1,053,200)
|
|
|
(1,319,500)
|
|
Repayments under term
loan credit agreements
|
—
|
|
|
(39,000)
|
|
Issuance of common
stock
|
12,322
|
|
|
19,666
|
|
Dividends on common
and restricted stock
|
(79,697)
|
|
|
(70,279)
|
|
Refundable deposits
from generators for transmission network upgrades
|
3,458
|
|
|
5,833
|
|
Repayment of
refundable deposits from generators for transmission network
upgrades
|
(11,442)
|
|
|
(22,155)
|
|
Repurchase and
retirement of common stock
|
(21,931)
|
|
|
(108,136)
|
|
Forward contracts of
accelerated share repurchase program
|
(115,000)
|
|
|
(46,000)
|
|
Other
|
(2,676)
|
|
|
(9,713)
|
|
Net cash provided by
financing activities
|
85,217
|
|
|
168,686
|
|
NET DECREASE IN
CASH AND CASH EQUIVALENTS
|
(3,574)
|
|
|
(22,679)
|
|
CASH AND CASH
EQUIVALENTS — Beginning of period
|
27,741
|
|
|
34,275
|
|
CASH AND CASH
EQUIVALENTS — End of period
|
$
|
24,167
|
|
|
$
|
11,596
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/itc-reports-continued-strong-performance-for-third-quarter-and-year-to-date-2015-results-300172986.html
SOURCE ITC Holdings Corp.