NOVI, Mich., July 28, 2016
/PRNewswire/ --
Highlights
- Second quarter 2016 reported earnings of $0.46 per diluted common share; second quarter
2016 operating earnings of $0.58 per
diluted common share
- Reported earnings for the six months ended June 30, 2016 of $0.88 per diluted common share; operating
earnings for the six months ended June 30,
2016 of $1.13 per diluted
common share
- Capital investments of $374.5
million for the six months ended June
30, 2016
- Rate base and construction work in progress of $5.7 billion for the six months ended
June 30, 2016
|
Three months
ended
|
|
Six months
ended
|
(in thousands, except
per share data)
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
REPORTED OPERATING
REVENUES (GAAP)
|
$
|
298,044
|
|
|
$
|
275,058
|
|
|
$
|
578,177
|
|
|
$
|
547,545
|
|
REPORTED NET
INCOME (GAAP)
|
$
|
70,726
|
|
|
$
|
72,336
|
|
|
$
|
134,963
|
|
|
$
|
139,468
|
|
OPERATING EARNINGS
(Non-GAAP)
|
$
|
88,653
|
|
|
$
|
80,823
|
|
|
$
|
173,104
|
|
|
$
|
153,880
|
|
REPORTED DILUTED
EPS (GAAP)
|
$
|
0.46
|
|
|
$
|
0.46
|
|
|
$
|
0.88
|
|
|
$
|
0.89
|
|
OPERATING DILUTED
EPS (Non-GAAP)
|
$
|
0.58
|
|
|
$
|
0.52
|
|
|
$
|
1.13
|
|
|
$
|
0.98
|
|
ITC Holdings Corp. (NYSE: ITC) announced today its results for
the quarter ended June 30, 2016.
Reported net income for the second quarter, measured in
accordance with Generally Accepted Accounting Principles (GAAP),
was $70.7 million, or $0.46 per diluted common share, compared to
$72.3 million or $0.46 per diluted common share for the second
quarter of 2015. For the six months ended June 30, 2016, reported net income was
$135.0 million, or $0.88 per diluted common share, compared to
$139.5 million, or $0.89 per diluted common share for the same
period last year.
Operating earnings for the second quarter were $88.7 million, or $0.58 per diluted common share, compared to
operating earnings of $80.8 million,
or $0.52 per diluted common share for
the second quarter of 2015. For the six months ended June 30, 2016, operating earnings were
$173.1 million, or $1.13 per diluted common share, compared to
operating earnings of $153.9 million,
or $0.98 per diluted common share for
the same period last year.
ITC invested $374.5 million in
capital projects during the six month period ended June 30, 2016, including $85.2 million at ITCTransmission,
$104.9 million at METC, $154.3 million at ITC Midwest, $21.5 million at ITC Great Plains and
$8.6 million of Development.
"We are pleased to have delivered another strong quarter, both
financially and operationally," said Joseph
L. Welch, chairman, president and CEO of ITC. "We are also
making good progress on the Fortis acquisition of ITC with ITC's
shareholders approving the transaction in June. We continue to
expect the transaction to close in 2016."
Operating Earnings
Operating earnings are non-GAAP measures that exclude the impact
of after-tax expenses associated with the following items:
- Regulatory charges of approximately $0.1
million pre-tax and after-tax for the second quarter and the
six months ended June 30, 2016. These
expenses totaled $1.1 million, or
$0.01 per diluted common share for
the six months ended June 30, 2015,
and $1.5 million, on a pre-tax basis
over the same period. The 2016 charge relates to a refund liability
attributable to contributions in aid of construction (CIAC refund
liability). The 2015 charge relates to management's decision to
write-off abandoned project costs at ITCTransmission.
- The estimated refund liability associated with the Midcontinent
ISO (MISO) regional base ROE rate (the "base ROE") of $6.1 million, or $0.04 per diluted common share, and $8.5 million, or $0.06 per diluted common share, for the second
quarter of 2016 and 2015, respectively. On a pre-tax basis, these
expenses were $9.9 million and
$13.8 million for the second quarter
of 2016 and 2015, respectively. These expenses totaled $17.7 million, or $0.11 per diluted common share, and $13.3 million or $0.08 per diluted common share for the six months
ended June 30, 2016 and 2015,
respectively and $28.8 million and
$21.8 million on a pre-tax basis over
the same period, respectively. The refund liability reflects the
estimated refund obligation associated with the base ROE 206
complaints.
- Fortis transaction related expenses of $11.7 million, or $0.08 per diluted common share, and $20.4 million, or $0.14 per diluted common share for the second
quarter and six month period ended June 30,
2016, respectively. On a pre-tax basis, these expenses were
$15.6 million and $28.6 million over the same period,
respectively.
Reported net income for the second quarter and six month period
ended June 30, 2016 decreased by
$1.6 million and $4.5 million or $0.01 per diluted common share, respectively,
compared with the same period last year. The decrease compared to
the prior period was largely attributable to higher Fortis
transaction-related expenses partially offset by higher income
associated with increased rate base at our operating companies for
the second quarter and six month period ended June 30, 2016. In addition, there were higher
MISO regional base ROE rate refund liabilities for the six months
ended June 30, 2016.
Operating earnings for the second quarter and six month period
ended June 30, 2016 increased by
$7.9 million, or $0.06 per diluted common share, and $19.2 million, or $0.15 per diluted common share, respectively,
compared with the same period last year. The increase compared to
the prior period was largely attributable to higher income
associated with increased rate base at our operating companies as
well as lower non-recoverable bonus payments associated with the
V-Plan project in the first quarter of 2016 compared to the same
period in 2015. These beneficial factors were partially offset by
the impact of electing bonus depreciation at all of our operating
subsidiaries.
Balance Sheet Activities
On July 5, 2016, ITC Holdings
issued $400.0 million aggregate
principal amount of unsecured 3.25% notes, due June 30, 2026.
The proceeds from the issuance were used to repay the $161.0 million outstanding under ITC Holdings'
term loan credit agreement and for general corporate purposes,
primarily the repayment of indebtedness outstanding under ITC
Holdings' commercial paper program.
Fortis Inc. ("Fortis") Transaction Update
During the second quarter, Fortis and ITC received shareholder
approval to proceed with the transaction along with the completion
of the review for the Committee on Foreign Investment in
the United States. Completion of
the proposed merger is subject to the following remaining
processes: Federal Energy Regulatory Commission approval; United
States Federal Trade Commission/Department of Justice approval
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended; approvals from various State regulatory commissions; and
the satisfaction of other customary closing conditions. All
regulatory filings have been made and we are working through the
various approval processes. The transaction is expected to
close by the end of this year.
Second Quarter 2016 Financial Results Detail — GAAP
Measures
ITC's reported operating revenues for the second quarter of 2016
increased to $298.0 million compared
to $275.1 million for the second
quarter of 2015. 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 and SPP as
eligible for regional cost sharing partially offset by the election
of bonus depreciation and the recognition of the refund liability
relating to the ROE complaints.
Operation and maintenance (O&M) expenses of $27.6 million were $2.4
million lower than the same period in 2015. The decrease in
O&M expenses was primarily due to lower vegetation management
requirements.
General and administrative (G&A) expenses of $49.5 million were $17.0
million higher compared to the same period in 2015. The
increase in G&A expenses was primarily due to higher
professional services for the Fortis transaction and higher
compensation expenses related to personnel additions.
Depreciation and amortization expenses of $39.4 million increased by $3.8 million compared to the same period in 2015
due to a higher depreciable base resulting from property, plant and
equipment in-service additions.
Taxes other than income taxes of $22.4
million were $3.6 million
higher than the same period in 2015. This increase was due to 2015
capital additions at our regulated operating subsidiaries, which
are included in the assessment for 2016 personal property
taxes.
Interest expense of $51.8 million
increased by $1.6 million compared to
the same period in 2015. The increase was due primarily to the
refund liability relating to the ROE complaints and higher
borrowing levels to finance capital investments.
The effective income tax rate for the second quarter of 2016 was
39.0 percent compared to 37.3 percent for the same period last
year.
Second Quarter 2016 Financial Results Detail —
Non-GAAP Measures
ITC's adjusted operating revenues for the second quarter of 2016
increased to $306.2 million compared
to $288.4 million for the second
quarter of 2015. Amounts reported for the second quarter of 2016
and 2015 exclude approximately $8.2
million and $13.3 million,
respectively, in reduced pre-tax revenues associated with the base
ROE 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
and SPP as eligible for regional cost sharing partially offset by
the election of bonus depreciation.
Operation and maintenance (O&M) expenses of $27.6 million were $2.4
million lower than the same period in 2015. The decrease in
O&M expenses was primarily due to lower vegetation management
requirements.
General and administrative (G&A) expenses of $33.9 million were $1.4
million higher compared to the same period in 2015. Amounts
reported for the second quarter of 2016 exclude approximately
$15.6 million of pre-tax activity
related to the Fortis transaction. The increase in G&A expenses
was primarily due to higher compensation expenses related to
personnel additions and higher professional services.
Depreciation and amortization expenses of $39.4 million increased by $3.8 million compared to the same period in 2015
due to a higher depreciable base resulting from property, plant and
equipment in-service additions.
Taxes other than income taxes of $22.4
million were $3.6 million
higher than the same period in 2015. This increase was due to 2015
capital additions at our regulated operating subsidiaries, which
are included in the assessment for 2016 personal property
taxes.
Interest expense of $50.1 million
increased by $0.4 million compared to
the same period in 2015. Amounts reported for the second quarter of
2016 and 2015 exclude $1.7 million
and $0.5 million, respectively, 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 second quarter of 2016 was
37.4 percent compared to 37.5 percent for the same period last
year. Amounts reported for the second quarter of 2016 and 2015
exclude income taxes of approximately $7.7
million and $5.3 million,
respectively, associated with adjustments to operating
earnings.
Year-to-Date 2016 Financial Results Detail — GAAP
Measures
ITC's reported operating revenues for the six months ended
June 30, 2016 increased to
$578.2 million compared to
$547.5 million from the same period
last year. 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 and SPP as
eligible for regional cost sharing partially offset by the election
of bonus depreciation and the recognition of the refund liability
relating to the ROE complaints.
O&M expenses of $52.2 million
were $3.4 million lower for the six
months ended June 30, 2016 compared
to the same period in 2015. The decrease in O&M expenses was
primarily due to lower vegetation management requirements.
G&A expenses of $95.2 million
were $21.8 million higher compared to
the same period in 2015. The increase in G&A expenses was
primarily due to higher professional services for the Fortis
transaction and higher compensation expenses related to personnel
additions partially offset by lower incentive-based compensation
for bonus payments.
Depreciation and amortization expenses of $78.2 million increased by $8.2 million for the six months ended
June 30, 2016 compared to the same
period in 2015 due to a higher depreciable base resulting from
property, plant and equipment in-service additions.
Taxes other than income taxes of $45.8
million were $4.6 million
higher compared to the same period in 2015. This increase was due
to 2015 capital additions at our regulated operating subsidiaries,
which are included in the assessment for 2016 personal property
taxes.
Interest expense of $102.2 million
was $3.5 million higher compared to
the same period in 2015. The increase in interest expense was due
primarily to the refund liability relating to the ROE complaints
and higher borrowing levels to finance capital investments.
The effective income tax rate for the six months ended
June 30, 2016 was 38.6 percent
compared to 37.5 percent for the same period in 2015.
Year-to-Date 2016 Financial Results Detail — Non-GAAP
Measures
ITC's adjusted operating revenues for the six months ended
June 30, 2016 increased to
$603.9 million compared to
$568.4 million from the same period
last year. Amounts reported for the six months ended June 30, 2016 and 2015 exclude approximately
$25.7 million and $20.8 million, respectively, in reduced pre-tax
revenues associated with the base ROE 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 and SPP as eligible
for regional cost sharing partially offset by the election of bonus
depreciation.
O&M expenses of $52.2 million
were $3.4 million lower for the six
months ended June 30, 2016 compared
to the same period in 2015. The decrease in O&M expenses was
primarily due to lower vegetation management requirements.
G&A expenses of $66.7 million
were $5.2 million lower compared to
the same period in 2015. Amounts reported for the six months ended
June 30, 2016 exclude approximately
$28.5 million of pre-tax expenses
related to the Fortis transaction and the six months ended
June 30, 2015 exclude approximately
$1.5 million of pre-tax expenses
related to regulatory charges. The decrease in G&A expenses was
primarily due to lower incentive-based compensation for bonus
payments.
Depreciation and amortization expenses of $78.2 million increased by $8.2 million for the six months ended
June 30, 2016 compared to the same
period in 2015 due to a higher depreciable base resulting from
property, plant and equipment in-service additions.
Taxes other than income taxes of $45.7
million were $4.5 million
higher compared to the same period in 2015. Amounts reported for
the six months ended June 30, 2016
exclude approximately $0.1 million of
pre-tax expenses associated with the Fortis transaction. This
increase was due to 2015 capital additions at our regulated
operating subsidiaries, which are included in the assessment for
2016 personal property taxes.
Interest expense of $99.0 million
was $1.2 million higher compared to
the same period in 2015. Amounts reported for the six months ended
June 30, 2016 and 2015 exclude
approximately $3.2 million and
$0.9 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 six months ended
June 30, 2016 was 37.6 percent
compared to 37.5 percent for the same period in 2015. Amounts
reported for the six months ended June 30,
2016 and 2015 exclude income taxes of $19.4 million and $8.8
million, respectively, associated with adjustments to
operating earnings noted previously.
Other Available Information
More detail about second quarter 2016 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.
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 15,700 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
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
(in thousands,
except per share data)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
OPERATING
REVENUES
|
|
$
|
298,044
|
|
|
$
|
275,058
|
|
|
$
|
578,177
|
|
|
$
|
547,545
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Operation and
maintenance
|
|
27,611
|
|
|
30,026
|
|
|
52,207
|
|
|
55,588
|
|
General and
administrative
|
|
49,462
|
|
|
32,493
|
|
|
95,170
|
|
|
73,387
|
|
Depreciation and
amortization
|
|
39,369
|
|
|
35,578
|
|
|
78,241
|
|
|
70,013
|
|
Taxes other than
income taxes
|
|
22,350
|
|
|
18,786
|
|
|
45,799
|
|
|
41,166
|
|
Other operating
(income) and expenses — net
|
|
(282)
|
|
|
(233)
|
|
|
(546)
|
|
|
(469)
|
|
Total operating
expenses
|
|
138,510
|
|
|
116,650
|
|
|
270,871
|
|
|
239,685
|
|
OPERATING
INCOME
|
|
159,534
|
|
|
158,408
|
|
|
307,306
|
|
|
307,860
|
|
OTHER EXPENSES
(INCOME)
|
|
|
|
|
|
|
|
|
Interest expense —
net
|
|
51,804
|
|
|
50,198
|
|
|
102,221
|
|
|
98,672
|
|
Allowance for equity
funds used during construction
|
|
(8,921)
|
|
|
(7,464)
|
|
|
(16,440)
|
|
|
(15,013)
|
|
Other
income
|
|
(480)
|
|
|
(189)
|
|
|
(741)
|
|
|
(438)
|
|
Other
expense
|
|
1,226
|
|
|
431
|
|
|
2,381
|
|
|
1,615
|
|
Total other expenses
(income)
|
|
43,629
|
|
|
42,976
|
|
|
87,421
|
|
|
84,836
|
|
INCOME BEFORE
INCOME TAXES
|
|
115,905
|
|
|
115,432
|
|
|
219,885
|
|
|
223,024
|
|
INCOME TAX
PROVISION
|
|
45,179
|
|
|
43,096
|
|
|
84,922
|
|
|
83,556
|
|
NET
INCOME
|
|
$
|
70,726
|
|
|
$
|
72,336
|
|
|
$
|
134,963
|
|
|
$
|
139,468
|
|
Basic earnings per
common share
|
|
$
|
0.46
|
|
|
$
|
0.47
|
|
|
$
|
0.88
|
|
|
$
|
0.90
|
|
Diluted earnings per
common share
|
|
$
|
0.46
|
|
|
$
|
0.46
|
|
|
$
|
0.88
|
|
|
$
|
0.89
|
|
Operating diluted
earnings per common share
|
|
$
|
0.58
|
|
|
$
|
0.52
|
|
|
$
|
1.13
|
|
|
$
|
0.98
|
|
Dividends declared
per common share
|
|
$
|
0.1875
|
|
|
$
|
0.1625
|
|
|
$
|
0.3750
|
|
|
$
|
0.3250
|
|
RECONCILIATION OF
REPORTED NET INCOME (GAAP) TO OPERATING EARNINGS (NON-GAAP MEASURE)
- UNAUDITED
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reported net income
(GAAP)
|
$
|
70,726
|
|
|
$
|
72,336
|
|
|
$
|
134,963
|
|
|
$
|
139,468
|
|
|
|
|
|
|
|
|
|
Pre-tax regulatory
charges
|
86
|
|
|
—
|
|
|
135
|
|
|
1,486
|
|
Taxes for regulatory
charges
|
(35)
|
|
|
—
|
|
|
(55)
|
|
|
(403)
|
|
After-tax regulatory
charges
|
51
|
|
|
—
|
|
|
80
|
|
|
1,083
|
|
|
|
|
|
|
|
|
|
Pre-tax MISO regional
base ROE rate refund liability
|
9,904
|
|
|
13,824
|
|
|
28,803
|
|
|
21,784
|
|
Taxes for MISO
regional base ROE rate refund liability
|
(3,774)
|
|
|
(5,337)
|
|
|
(11,142)
|
|
|
(8,455)
|
|
After-tax MISO
regional base ROE rate refund liability
|
6,130
|
|
|
8,487
|
|
|
17,661
|
|
|
13,329
|
|
|
|
|
|
|
|
|
|
Pre-tax Fortis
transaction related expenses
|
15,646
|
|
|
—
|
|
|
28,631
|
|
|
—
|
|
Taxes for Fortis
transaction related expenses
|
(3,900)
|
|
|
—
|
|
|
(8,231)
|
|
|
—
|
|
After-tax Fortis
transaction related expenses
|
11,746
|
|
|
—
|
|
|
20,400
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Operating earnings
(Non-GAAP)
|
$
|
88,653
|
|
|
$
|
80,823
|
|
|
$
|
173,104
|
|
|
$
|
153,880
|
|
RECONCILIATION OF
REPORTED DILUTED EPS (GAAP) TO OPERATING DILUTED EPS (NON-GAAP
MEASURE) - UNAUDITED
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reported diluted EPS
(GAAP)
|
$
|
0.46
|
|
|
$
|
0.46
|
|
|
$
|
0.88
|
|
|
$
|
0.89
|
|
After-tax regulatory
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
After-tax MISO
regional base ROE rate refund liability
|
0.04
|
|
|
0.06
|
|
|
0.11
|
|
|
0.08
|
|
After-tax Fortis
transaction related expenses
|
0.08
|
|
|
—
|
|
|
0.14
|
|
|
—
|
|
Operating diluted EPS
(Non-GAAP)
|
$
|
0.58
|
|
|
$
|
0.52
|
|
|
$
|
1.13
|
|
|
$
|
0.98
|
|
ITC HOLDINGS CORP.
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION (UNAUDITED)
|
|
|
June
30,
|
|
December
31,
|
(in thousands,
except share data)
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
6,054
|
|
|
$
|
13,859
|
|
Accounts
receivable
|
147,882
|
|
|
104,262
|
|
Inventory
|
27,852
|
|
|
25,777
|
|
Regulatory
assets
|
19,112
|
|
|
14,736
|
|
Income tax
receivable
|
144,573
|
|
|
—
|
|
Prepaid and other
current assets
|
15,622
|
|
|
10,608
|
|
Total current
assets
|
361,095
|
|
|
169,242
|
|
Property, plant
and equipment (net of accumulated depreciation and amortization
of $1,540,568 and $1,487,713, respectively)
|
6,409,440
|
|
|
6,109,639
|
|
Other
assets
|
|
|
|
Goodwill
|
950,163
|
|
|
950,163
|
|
Intangible assets
(net of accumulated amortization of $29,905 and $28,242,
respectively)
|
44,283
|
|
|
45,602
|
|
Regulatory
assets
|
245,870
|
|
|
233,376
|
|
Deferred financing
fees (net of accumulated amortization of $1,661 and $1,277,
respectively)
|
5,313
|
|
|
2,498
|
|
Other
|
50,802
|
|
|
44,802
|
|
Total other
assets
|
1,296,431
|
|
|
1,276,441
|
|
TOTAL
ASSETS
|
$
|
8,066,966
|
|
|
$
|
7,555,322
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
146,934
|
|
|
$
|
124,331
|
|
Accrued
compensation
|
18,977
|
|
|
24,123
|
|
Accrued
interest
|
54,003
|
|
|
52,577
|
|
Accrued
taxes
|
48,358
|
|
|
44,256
|
|
Regulatory
liabilities
|
27,621
|
|
|
44,964
|
|
Refundable deposits
from generators for transmission network upgrades
|
16,418
|
|
|
2,534
|
|
Debt maturing within
one year
|
451,232
|
|
|
395,105
|
|
Other
|
21,475
|
|
|
31,034
|
|
Total current
liabilities
|
785,018
|
|
|
718,924
|
|
Accrued pension
and postretirement liabilities
|
64,792
|
|
|
61,609
|
|
Deferred income
taxes
|
947,036
|
|
|
735,426
|
|
Regulatory
liabilities
|
284,321
|
|
|
254,788
|
|
Refundable
deposits from generators for transmission network
upgrades
|
16,661
|
|
|
18,077
|
|
Other
|
29,249
|
|
|
23,075
|
|
Long-term
debt
|
4,146,892
|
|
|
4,034,352
|
|
Commitments and
contingent liabilities
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Common stock, without
par value, 300,000,000 shares authorized, 153,365,025 and
152,699,077 shares issued and outstanding at June 30, 2016 and
December 31, 2015, respectively
|
842,893
|
|
|
829,211
|
|
Retained
earnings
|
953,180
|
|
|
875,595
|
|
Accumulated other
comprehensive (loss) income
|
(3,076)
|
|
|
4,265
|
|
Total stockholders'
equity
|
1,792,997
|
|
|
1,709,071
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
8,066,966
|
|
|
$
|
7,555,322
|
|
ITC HOLDINGS CORP.
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOW (UNAUDITED)
|
|
|
Six months
ended
|
|
June
30,
|
(in
thousands)
|
2016
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
|
134,963
|
|
|
$
|
139,468
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization expense
|
78,241
|
|
|
70,013
|
|
Recognition, refund
and collection of revenue accruals and deferrals — including
accrued interest
|
(17,991)
|
|
|
(31,867)
|
|
Deferred income tax
expense
|
207,964
|
|
|
47,979
|
|
Allowance for equity
funds used during construction
|
(16,440)
|
|
|
(15,013)
|
|
Other
|
15,351
|
|
|
10,863
|
|
Changes in assets and
liabilities, exclusive of changes shown separately:
|
|
|
|
Accounts
receivable
|
(41,370)
|
|
|
(19,758)
|
|
Inventory
|
(2,049)
|
|
|
1,326
|
|
Income tax
receivable
|
(144,573)
|
|
|
—
|
|
Prepaid and other
current assets
|
(5,126)
|
|
|
(8,166)
|
|
Accounts
payable
|
17,226
|
|
|
(581)
|
|
Accrued
compensation
|
(3,110)
|
|
|
(4,497)
|
|
Accrued
interest
|
1,426
|
|
|
1,693
|
|
Accrued
taxes
|
4,102
|
|
|
2,310
|
|
Other current
liabilities
|
(1,670)
|
|
|
(532)
|
|
Estimated potential
refund related to return on equity complaints
|
28,803
|
|
|
21,784
|
|
Other non-current
assets and liabilities, net
|
1,335
|
|
|
(17,623)
|
|
Net cash provided by
operating activities
|
257,082
|
|
|
197,399
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Expenditures for
property, plant and equipment
|
(392,348)
|
|
|
(318,187)
|
|
Other
|
4,008
|
|
|
(5,542)
|
|
Net cash used in
investing activities
|
(388,340)
|
|
|
(323,729)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Issuance of long-term
debt
|
200,000
|
|
|
225,000
|
|
Borrowings under
revolving credit agreements
|
461,000
|
|
|
638,500
|
|
Net issuance of
commercial paper, net of discount
|
215,801
|
|
|
49,974
|
|
Repayments of
revolving credit agreements
|
(509,400)
|
|
|
(729,100)
|
|
Repayment of term
loan credit agreement
|
(200,000)
|
|
|
—
|
|
Issuance of common
stock
|
10,506
|
|
|
10,704
|
|
Dividends on common
and restricted stock
|
(57,278)
|
|
|
(50,467)
|
|
Refundable deposits
from generators for transmission network upgrades
|
12,468
|
|
|
981
|
|
Repurchase and
retirement of common stock
|
(8,318)
|
|
|
(21,838)
|
|
Other
|
(1,326)
|
|
|
(12,375)
|
|
Net cash provided by
financing activities
|
123,453
|
|
|
111,379
|
|
NET DECREASE IN
CASH AND CASH EQUIVALENTS
|
(7,805)
|
|
|
(14,951)
|
|
CASH AND CASH
EQUIVALENTS — Beginning of period
|
13,859
|
|
|
27,741
|
|
CASH AND CASH
EQUIVALENTS — End of period
|
$
|
6,054
|
|
|
$
|
12,790
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/itc-reports-second-quarter-and-year-to-date-2016-results-300305332.html
SOURCE ITC Holdings Corp.