ALLENTOWN, Pa., May 7, 2015 /PRNewswire/ -- PPL Corporation
(NYSE: PPL) on Thursday (5/7) announced first-quarter 2015 reported
earnings of $647 million, or
$0.96 per share, an increase from
$316 million, or $0.49 per share, in the first quarter of
2014.
Adjusting for special items, including Supply segment earnings,
first-quarter 2015 regulated utility earnings from ongoing
operations were $519 million, or
$0.77 per share. This compares to
regulated utility earnings from ongoing operations (adjusted) of
$426 million, or $0.66 per share, in the first quarter of
2014.
"Strong first-quarter earnings at our U.K. regulated segment
drove a 17 percent increase in per-share regulated utility earnings
from ongoing operations, while our regulated businesses in both
Pennsylvania and Kentucky continued to perform well and
benefited from ongoing infrastructure investments," said
William H. Spence, PPL chairman,
president and Chief Executive Officer.
The company's first-quarter performance led PPL to reaffirm its
2015 forecast range of $2.05 to $2.25
per share for regulated utility earnings from ongoing operations,
with a midpoint of $2.15 per
share.
Meanwhile, Spence said PPL continues to move closer to
completing the spinoff of its competitive generation business,
which will be combined with competitive generation assets of RJS
Power Holdings LLC, an affiliate of Riverstone Holdings LLC, to
form a new independent power producer named Talen Energy
Corporation.
The company recently announced that the transaction will close
June 1. PPL has received all of the
necessary regulatory approvals to complete the transaction. After
the close, PPL will focus on the high-performing, award-winning
regulated utilities it owns and operates in Pennsylvania, Kentucky and the United Kingdom.
"Moving forward as a purely regulated utility company, we remain
confident in our ability to achieve annual earnings growth of 4 to
6 percent through at least 2017, based on the continued strong
performance of our regulated businesses, the rate base growth
expected from significant projected infrastructure investment and
$75 million in targeted, corporate
support cost savings that have been identified as part of our
corporate restructuring," Spence said.
First-Quarter 2015 Earnings Details
PPL's reported earnings for the first quarter of 2015 included
net special item after-tax benefits of $128
million, or $0.19 per share,
primarily due to Supply segment earnings and foreign
currency-related economic hedges. Reported earnings for the first
quarter of 2014 included special item after-tax expenses of
$133 million, or $0.20 per share. The 2014 special items included
an increase in accrued liability for U.K. line losses and were
adjusted to include Supply segment losses.
Reported earnings are calculated in accordance with U.S.
generally accepted accounting principles (GAAP). "Regulated utility
earnings from ongoing operations" is a non-GAAP financial measure
that is adjusted for special items, including the Supply segment's
earnings. The first quarter of 2014 has also been adjusted to
reflect the impact of dissynergies related to the spinoff of PPL
Energy Supply. Special items and the dissynergies are fully
detailed at the end of this news release.
(Dollars in
millions, except for per share amounts)
|
|
1st
Quarter
|
|
|
|
|
2015
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Reported
earnings
|
|
$
|
647
|
|
|
$
|
316
|
|
|
105%
|
Reported earnings per
share
|
|
$
|
0.96
|
|
|
$
|
0.49
|
|
|
96%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st
Quarter
|
|
|
|
|
2015
|
|
2014
(adjusted)
|
|
%
Change
|
Regulated utility
earnings from ongoing operations
|
|
$
|
519
|
|
|
$
|
426
|
|
|
22%
|
Regulated utility
earnings from ongoing operations
per share
|
|
$
|
0.77
|
|
|
$
|
0.66
|
|
|
17%
|
|
(See the tables at the end of this news release for a
reconciliation of reported earnings to regulated utility earnings
from ongoing operations.)
First-Quarter Earnings by
Segment1
|
|
1st
Quarter
|
Per
share
|
|
2015
|
|
2014
(adjusted)
|
Regulated Utility
earnings from ongoing operations
|
|
|
|
|
|
|
|
|
U.K.
Regulated
|
|
$
|
0.50
|
|
|
$
|
0.41
|
|
Kentucky
Regulated
|
|
|
0.16
|
|
|
|
0.16
|
|
Pennsylvania
Regulated
|
|
|
0.13
|
|
|
|
0.13
|
|
Corporate and
Other2
|
|
|
(0.02)
|
|
|
|
(0.04)
|
|
Total
|
|
$
|
0.77
|
|
|
$
|
0.66
|
|
|
|
|
|
|
|
|
2015
|
|
2014
(adjusted)
|
Special items and
dissynergy adjustments
|
|
|
|
|
|
|
|
|
Special items
(expense) benefit:
|
|
|
|
|
|
|
|
|
U.K.
Regulated
|
|
$
|
0.06
|
|
|
$
|
(0.09)
|
|
Kentucky
Regulated
|
|
|
–
|
|
|
|
–
|
|
Pennsylvania Regulated
|
|
|
–
|
|
|
|
–
|
|
Corporate and Other2
|
|
|
(0.01)
|
|
|
|
–
|
|
Supply
|
|
|
0.14
|
|
|
|
(0.11)
|
|
Total Special
items
|
|
|
0.19
|
|
|
|
(0.20)
|
|
Dissynergy
adjustments expense (benefit):
|
|
|
|
|
|
|
|
|
Corporate and Other2
|
|
|
–
|
|
|
|
0.03
|
|
Total special items and
dissynergy adjustments
|
|
$
|
0.19
|
|
|
$
|
(0.17)
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
Reported
earnings
|
|
|
|
|
|
|
|
|
U.K.
Regulated
|
|
$
|
0.56
|
|
|
$
|
0.32
|
|
Kentucky
Regulated
|
|
|
0.16
|
|
|
|
0.16
|
|
Pennsylvania
Regulated
|
|
|
0.13
|
|
|
|
0.13
|
|
Corporate and
Other2
|
|
|
(0.03)
|
|
|
|
(0.01)
|
|
Supply1
|
|
|
0.14
|
|
|
|
(0.11)
|
|
Total
|
|
$
|
0.96
|
|
|
$
|
0.49
|
|
|
1
Supply earnings from ongoing operations are discussed in a
subsequent section of this news release.
|
2This category primarily
includes unallocated corporate-level financing and other costs. For
2014, regulated utility earnings from ongoing operations (adjusted)
and special items and dissynergy adjustments reflect the impact of
dissynergies related to the spinoff of PPL Energy Supply: Indirect
O&M ($0.02) and Interest ($0.01).
|
(For an itemization of special items and dissynergy
adjustments, see the reconciliation tables at the end of this news
release.)
Key Factors Impacting Regulated Utility
Earnings from Ongoing Operations
U.K. Regulated Segment
PPL's U.K. Regulated segment primarily consists of the regulated
electricity delivery operations of Western Power Distribution,
serving Southwest and Central
England and South
Wales.
Regulated utility earnings from ongoing operations in the first
quarter of 2015 increased by $0.09
per share compared with a year ago. This increase was primarily due
to higher utility revenues driven by an April 1, 2014, price increase, lower depreciation
expense, and lower income taxes.
Kentucky Regulated Segment
PPL's Kentucky Regulated segment primarily consists of the
regulated electricity and natural gas operations of Louisville Gas
and Electric Company and Kentucky Utilities Company.
Regulated utility earnings from ongoing operations in the first
quarter of 2015 were the same as a year ago. This was primarily due
to returns on additional environmental capital investments, offset
by lower sales volumes and higher income taxes.
Pennsylvania Regulated Segment
PPL's Pennsylvania Regulated segment consists of the regulated
electricity delivery operations of PPL Electric Utilities.
Regulated utility earnings from ongoing operations in the first
quarter of 2015 were the same as a year ago. This was primarily due
to higher margins from additional transmission capital investments,
offset by higher depreciation expense and a benefit recorded in the
first quarter of 2014 from a change in estimate of a regulatory
liability.
Corporate and Other
PPL's Corporate and Other category primarily includes
unallocated corporate-level financing and other costs.
Corporate and Other improved by $0.02 per share in the first quarter of 2015
compared to the first quarter of 2014 (adjusted). This was
primarily due to the benefits of the corporate restructuring.
Forecast of Regulated Utility Earnings from
Ongoing Operations
|
2015
forecast
midpoint
|
|
2014
regulated
utility
earnings
from
ongoing
operations
(adjusted)
|
Per
share
|
|
|
|
|
|
U.K.
Regulated
|
$ 1.38
|
|
|
$ 1.37
|
|
Kentucky
Regulated
|
0.48
|
|
|
0.47
|
|
Pennsylvania
Regulated
|
0.39
|
|
|
0.40
|
|
Corporate and
Other1
|
(0.10)
|
|
|
(0.21)
|
|
Total
|
$ 2.15
|
|
|
$ 2.03
|
|
1 This category primarily includes
unallocated corporate-level financing and other costs. For
2014, regulated utility earnings from ongoing operations (adjusted)
reflects the full impact of dissynergies related to the spinoff of
PPL Energy Supply: Indirect O&M ($0.07), Interest ($0.05) and Depreciation ($0.01).
See the tables at the end of this news release for a
reconciliation of reported earnings to 2014 regulated utility
earnings from ongoing operations (adjusted).
U.K. Regulated Segment
PPL projects higher segment earnings in 2015 compared with 2014,
primarily driven by lower income taxes, lower depreciation expense
and effects of foreign currency, partially offset by lower utility
revenue as Western Power Distribution transitions to a new
eight-year price control period (RIIO-ED1) effective April 1, 2015. The remaining 2015 foreign
currency earnings exposure for this segment is 97 percent
hedged.
Kentucky Regulated Segment
PPL projects higher segment earnings in 2015 compared with 2014,
primarily driven by anticipated electric and gas base rate
increases and returns on additional environmental capital
investments, partially offset by higher operation and maintenance
expense, higher depreciation and higher financing costs.
Pennsylvania Regulated Segment
PPL projects lower segment earnings in 2015 compared with 2014,
primarily driven by higher operation and maintenance expense,
higher depreciation, higher financing costs, and a benefit recorded
in the first quarter of 2014 for a change in estimate of a
regulatory liability, partially offset by higher transmission
margins and returns on distribution improvement capital
investments.
Corporate and Other
PPL projects lower costs in this category in 2015 compared with
2014, primarily driven by the reduction of dissynergies related to
the Supply business spinoff through corporate restructuring efforts
and lower income taxes.
First-Quarter Earnings for the Supply Segment
Reported earnings are calculated in accordance with U.S.
generally accepted accounting principles (GAAP). "Supply
earnings from ongoing operations" is a non-GAAP financial measure
that is adjusted for special items. Special items are fully
detailed at the end of this news release.
|
|
1st
Quarter
|
|
|
2015
|
|
2014
|
Supply earnings from
ongoing operations per share
|
|
$
|
0.11
|
|
|
$
|
0.11
|
|
Supply special items
per share
|
|
|
0.03
|
|
|
|
(0.22)
|
|
Supply reported
earnings per share
|
|
|
0.14
|
|
|
|
(0.11)
|
|
(See the tables at the end of the news release for details as
to the reconciliation of reported earnings to Supply earnings from
ongoing operations.)
Key Factors Impacting the Supply Segment's
Earnings from Ongoing Operations
Supply Segment
PPL's Supply segment consists primarily of the competitive
domestic electricity generation and energy marketing operations of
PPL Energy Supply.
Supply earnings from ongoing operations in the first quarter of
2015 remained the same as a year ago despite the benefit from
unusually cold weather in the first quarter of 2014. Excluding the
weather impact in 2014, the results were higher primarily due to
higher energy prices, favorable baseload generation and
intermediate and peaking margins, offset by lower capacity prices,
full-requirement sales contracts and certain commodity
positions.
PPL Corporation (NYSE: PPL), with 2014 revenues of $11.5 billion, is one of the largest companies in
the U.S. utility sector. The PPL family of companies delivers
electricity and natural gas to about 10 million customers in
the United States and the
United Kingdom. In June 2014, PPL announced an agreement to combine
its competitive generation business with the competitive generation
business of Riverstone Holdings LLC to form Talen Energy
Corporation, an independent power producer. More information is
available at www.pplweb.com.
(Note: All references to earnings per share in the text and
tables of this news release are stated in terms of diluted earnings
per share unless otherwise noted.)
Conference Call and Webcast
PPL invites interested parties to listen to a live Internet
webcast of management's teleconference with financial analysts
about first-quarter 2015 financial results at 8:30 a.m. Eastern time on Thursday, May 7. The meeting is available online
live, in audio format, along with slides of the presentation, on
PPL's website: www.pplweb.com. The webcast will be available
for replay on the PPL website for 30 days. Interested individuals
also can access the live conference call via telephone at
866-346-8683. International participants should call
1-412-902-4270.
"Regulated utility earnings from ongoing operations," should
not be considered as an alternative to reported earnings, or net
income, which is an indicator of operating performance determined
in accordance with U.S. generally accepted accounting principles
(GAAP). PPL believes that "regulated utility earnings from
ongoing operations," although a non-GAAP financial measure, is also
useful and meaningful to investors because it provides management's
view of PPL's earnings as if the anticipated spinoff of PPL Energy
Supply was completed. Other companies may use different measures to
present financial performance. "Regulated utility earnings from
ongoing operations" is adjusted for the impact of special items as
described below, which includes the Supply segment's earnings, as
the segment is expected to be disposed of upon completion of the
announced spinoff of PPL Energy Supply. "Regulated utility earnings
from ongoing operations (adjusted)" for 2014 also reflects, within
the Corporate and Other category, the impact of spinoff
dissynergies that would remain with PPL after the completion of the
anticipated transaction, if left unmitigated. Due to the
forward-looking nature of any forecasted regulated utility earnings
from ongoing operations for future periods, information to
reconcile this non-GAAP financial measure to the most directly
comparable GAAP financial measure is not available at this time, as
the company is unable to forecast all special items.
"Regulated utility earnings from ongoing operations" is
adjusted for the impact of special items. Special items
include:
- Unrealized gains or losses on foreign currency-related
economic hedges.
- Supply segment earnings.
- Gains and losses on sales of assets not in the ordinary
course of business.
- Impairment charges.
- Workforce reduction and other restructuring
effects.
- Acquisition and divestiture-related adjustments.
- Other charges or credits that are, in management's view, not
reflective of the company's ongoing operations.
"Supply earnings from ongoing operations" should not be
considered as an alternative to reported earnings, or net income,
which is an indicator of operating performance determined in
accordance with U.S. generally accepted accounting principles
(GAAP). PPL believes that "Supply earnings from ongoing
operations," although a non-GAAP financial measure, is also useful
and meaningful to investors because it provides management's view
of the Supply segment's fundamental earnings performance as another
criterion in making investment decisions. Other companies may use
different measures to present financial performance.
"Supply earnings from ongoing operations" and "earnings from
ongoing operations" are adjusted for the impact of special items.
Special items related to "Supply earnings from ongoing operations"
includes the items stated below, while "earnings from ongoing
operations" additionally includes a special item for unrealized
gains or losses on foreign currency-related economic
hedges.
- Adjusted energy-related economic activity (as discussed
below).
- Gains and losses on sales of assets not in the ordinary
course of business.
- Impairment charges (including impairments of securities in
the company's nuclear decommissioning trust funds).
- Workforce reduction and other restructuring
effects.
- Acquisition and divestiture-related adjustments.
- Other charges or credits that are, in management's view, not
reflective of the company's ongoing operations.
Adjusted energy-related economic activity includes the
changes in fair value of positions used to economically hedge a
portion of the economic value of the competitive generation assets,
full-requirement sales contracts and retail activities. This
economic value is subject to changes in fair value due to market
price volatility of the input and output commodities (e.g., fuel
and power) prior to the delivery period that was hedged. Adjusted
energy-related economic activity also includes the ineffective
portion of qualifying cash flow hedges and premium amortization
associated with options. This economic activity is deferred and
included in earnings from ongoing operations over the delivery
period of the item that was hedged or upon realization. Management
believes that adjusting for such amounts provides a better matching
of earnings from ongoing operations to the actual amounts settled
for the Supply segment's underlying hedged assets. Please refer to
the Notes to the Consolidated Financial Statements and MD&A in
PPL Corporation's periodic filings with the Securities and Exchange
Commission for additional information on adjusted energy-related
economic activity.
Statements contained in this news release, including
statements with respect to future earnings, cash flows, financing,
regulation and corporate strategy, are "forward-looking statements"
within the meaning of the federal securities laws. Although PPL
Corporation believes that the expectations and assumptions
reflected in these forward-looking statements are reasonable, these
statements are subject to a number of risks and uncertainties, and
actual results may differ materially from the results discussed in
the statements. The following are among the important factors that
could cause actual results to differ materially from the
forward-looking statements: market demand and prices for energy,
capacity and fuel; weather conditions affecting customer energy
usage and operating costs; competition in power markets; the effect
of any business or industry restructuring, including the ability of
PPL Corporation to realize all or a significant portion of the
anticipated cost savings from the planned corporate
restructuring efforts following the Supply business spinoff; the
profitability and liquidity of PPL Corporation and its
subsidiaries; new accounting requirements or new interpretations or
applications of existing requirements; operating performance of
generating plants and other facilities; the length of scheduled and
unscheduled outages at our generating plants; environmental
conditions and requirements and the related costs of compliance,
including environmental capital expenditures and emission allowance
and other expenses; system conditions and operating costs;
development of new projects, markets and technologies; performance
of new ventures; asset or business acquisitions and dispositions;
any impact of hurricanes or other severe weather on our business,
including any impact on fuel prices; receipt of necessary
government permits, approvals, rate relief and regulatory cost
recovery; capital market conditions and decisions regarding capital
structure; the impact of state, federal or foreign investigations
applicable to PPL Corporation and its subsidiaries; the outcome of
litigation against PPL Corporation and its subsidiaries; stock
price performance; the market prices of equity securities and the
impact on pension income and resultant cash funding requirements
for defined benefit pension plans; the securities and credit
ratings of PPL Corporation and its subsidiaries; political,
regulatory or economic conditions in states, regions or countries
where PPL Corporation or its subsidiaries conduct business,
including any potential effects of threatened or actual terrorism
or war or other hostilities; foreign exchange rates; new state,
federal or foreign legislation, including new tax legislation; and
the commitments and liabilities of PPL Corporation and its
subsidiaries. Any such forward-looking statements should be
considered in light of such important factors and in conjunction
with PPL Corporation's Form 10-K and other reports on file with the
Securities and Exchange Commission.
Note to Editors: Visit our media website at
www.pplnewsroom.com for additional news and background about PPL
Corporation.
PPL CORPORATION
AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED FINANCIAL INFORMATION (a)
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
(Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,335
|
|
$
|
1,751
|
|
Short-term
investments
|
|
|
135
|
|
|
120
|
|
Accounts
receivable
|
|
|
1,231
|
|
|
1,094
|
|
Unbilled
revenues
|
|
|
621
|
|
|
735
|
|
Fuel, materials and
supplies
|
|
|
687
|
|
|
836
|
|
Price risk management
assets - current
|
|
|
1,119
|
|
|
1,158
|
|
Other current
assets
|
|
|
571
|
|
|
465
|
|
Investments
|
|
|
999
|
|
|
985
|
|
Property, Plant and
Equipment
|
|
|
|
|
|
|
|
Regulated utility plant
|
|
|
30,852
|
|
|
30,568
|
|
Less: Accumulated depreciation - regulated utility plant
|
|
|
5,413
|
|
|
5,361
|
|
Regulated utility
plant, net
|
|
|
25,439
|
|
|
25,207
|
|
Non-regulated property, plant and equipment
|
|
|
12,951
|
|
|
12,819
|
|
Less: Accumulated depreciation - non-regulated property, plant and
equipment
|
|
|
6,516
|
|
|
6,404
|
|
Non-regulated
property, plant and equipment, net
|
|
|
6,435
|
|
|
6,415
|
|
Construction work in progress
|
|
|
3,085
|
|
|
2,975
|
|
Property, Plant and Equipment, net
|
|
|
34,959
|
|
|
34,597
|
|
Regulatory assets -
noncurrent
|
|
|
1,610
|
|
|
1,562
|
|
Goodwill and other
intangibles
|
|
|
4,884
|
|
|
4,930
|
|
Price risk management
assets - noncurrent
|
|
|
437
|
|
|
319
|
|
Other noncurrent
assets
|
|
|
333
|
|
|
312
|
|
Total
Assets
|
|
$
|
48,921
|
|
$
|
48,864
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Short-term
debt
|
|
$
|
1,595
|
|
$
|
1,466
|
|
Long-term debt due
within one year
|
|
|
1,535
|
|
|
1,535
|
|
Accounts
payable
|
|
|
1,128
|
|
|
1,356
|
|
Price risk management
liabilities - current
|
|
|
1,073
|
|
|
1,126
|
|
Other current
liabilities
|
|
|
1,886
|
|
|
1,960
|
|
Long-term
debt
|
|
|
18,772
|
|
|
18,856
|
|
Deferred income taxes
and investment tax credits
|
|
|
4,784
|
|
|
4,609
|
|
Price risk management
liabilities - noncurrent
|
|
|
333
|
|
|
252
|
|
Accrued pension
obligations
|
|
|
1,457
|
|
|
1,756
|
|
Asset retirement
obligations
|
|
|
739
|
|
|
739
|
|
Regulatory
liabilities - noncurrent
|
|
|
987
|
|
|
992
|
|
Other noncurrent
liabilities
|
|
|
596
|
|
|
589
|
|
Common stock and
additional paid-in capital
|
|
|
9,487
|
|
|
9,440
|
|
Earnings
reinvested
|
|
|
6,860
|
|
|
6,462
|
|
Accumulated other
comprehensive loss
|
|
|
(2,311)
|
|
|
(2,274)
|
|
Total Liabilities
and Equity
|
|
$
|
48,921
|
|
$
|
48,864
|
|
|
(a) The
Financial Statements in this news release have been condensed and
summarized for purposes of this presentation. Please refer to PPL
Corporation's periodic filings with the Securities and Exchange
Commission for full financial statements, including note
disclosure.
|
PPL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Income (Unaudited)
|
(Millions of
Dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Utility
|
|
|
$
|
2,214
|
|
$
|
2,162
|
|
Unregulated wholesale
energy (a)
|
|
|
|
521
|
|
|
(1,457)
|
|
Unregulated retail
energy
|
|
|
|
310
|
|
|
348
|
|
Energy-related
businesses
|
|
|
|
120
|
|
|
141
|
|
Total Operating
Revenues
|
|
|
|
3,165
|
|
|
1,194
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Operation
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
|
|
604
|
|
|
758
|
|
|
Energy purchases
(b)
|
|
|
|
321
|
|
|
(1,494)
|
|
|
Other operation and
maintenance
|
|
|
|
668
|
|
|
668
|
|
Depreciation
|
|
|
|
293
|
|
|
300
|
|
Taxes, other than
income
|
|
|
|
101
|
|
|
101
|
|
Energy-related
businesses
|
|
|
|
111
|
|
|
138
|
|
Total Operating
Expenses
|
|
|
|
2,098
|
|
|
471
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
1,067
|
|
|
723
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) - net
|
|
|
|
95
|
|
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
|
247
|
|
|
262
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations Before Income Taxes
|
|
|
|
915
|
|
|
438
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes
|
|
|
|
268
|
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations After Income Taxes
|
|
|
|
647
|
|
|
324
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Discontinued Operations (net of income taxes)
|
|
|
|
|
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
$
|
647
|
|
$
|
316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations After Income Taxes Available
|
|
|
|
|
|
to PPL Common
Shareowners:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.97
|
|
$
|
0.51
|
|
Diluted
|
|
|
$
|
0.96
|
|
$
|
0.50
|
|
Net Income
Available to PPL Common Shareowners:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.97
|
|
$
|
0.50
|
|
Diluted
|
|
|
$
|
0.96
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares of Common Stock Outstanding
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
666,974
|
|
|
630,749
|
|
Diluted
|
|
|
|
668,732
|
|
|
663,939
|
|
(a) The period ended
March 31, 2014 includes significant realized and unrealized losses
on physical and financial commodity sales contracts due to the
unusually cold weather experienced in the first quarter of
2014.
|
(b) The period ended
March 31, 2014 includes significant realized and unrealized gains
on physical and financial commodity purchase contracts due to the
unusually cold weather experienced in the first quarter of
2014.
|
PPL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2015
|
|
2014
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
647
|
|
$
|
316
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
293
|
|
|
305
|
|
|
Amortization
|
|
|
57
|
|
|
60
|
|
|
Defined benefit plans
- expense
|
|
|
28
|
|
|
21
|
|
|
Deferred income taxes
and investment tax credits
|
|
|
124
|
|
|
(26)
|
|
|
Unrealized (gains)
losses on derivatives, and other hedging activities
|
|
|
(90)
|
|
|
241
|
|
|
Adjustment to WPD
line loss accrual
|
|
|
|
|
|
65
|
|
|
Stock compensation
expense
|
|
|
28
|
|
|
28
|
|
|
Other
|
|
|
4
|
|
|
5
|
|
Change in current
assets and current liabilities
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(143)
|
|
|
(185)
|
|
|
Accounts
payable
|
|
|
(139)
|
|
|
93
|
|
|
Unbilled
revenues
|
|
|
111
|
|
|
(33)
|
|
|
Fuel, material and
supplies
|
|
149
|
|
|
96
|
|
|
Taxes
payable
|
|
|
44
|
|
|
126
|
|
|
Other current
liabilities
|
|
|
(172)
|
|
|
(59)
|
|
|
Other
|
|
|
(43)
|
|
|
(60)
|
|
Other operating
activities
|
|
|
|
|
|
|
|
|
Defined benefit plans
- funding
|
|
|
(271)
|
|
|
(135)
|
|
|
Other
|
|
|
46
|
|
|
73
|
|
|
|
Net cash provided by
operating activities
|
|
|
673
|
|
|
931
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
|
Expenditures for
property, plant and equipment
|
|
|
(942)
|
|
|
(892)
|
|
Expenditures for
intangible assets
|
|
|
(20)
|
|
|
(16)
|
|
Purchases of nuclear
plant decommissioning trust investments
|
|
|
(43)
|
|
|
(32)
|
|
Proceeds from the
sale of nuclear plant decommissioning trust investments
|
|
|
38
|
|
|
27
|
|
Proceeds from the
receipt of grants
|
|
|
|
|
|
56
|
|
Net increase in
restricted cash and cash equivalents
|
|
|
(10)
|
|
|
(334)
|
|
Other investing
activities
|
|
|
(13)
|
|
|
8
|
|
|
|
Net cash used in
investing activities
|
|
|
(990)
|
|
|
(1,183)
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
Retirement of
long-term debt
|
|
|
(1)
|
|
|
(239)
|
|
Issuance of common
stock
|
|
|
35
|
|
|
15
|
|
Payment of common
stock dividends
|
|
|
(250)
|
|
|
(234)
|
|
Net increase in
short-term debt
|
|
|
133
|
|
|
878
|
|
Other financing
activities
|
|
|
(14)
|
|
|
(28)
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
|
(97)
|
|
|
392
|
Effect of Exchange
Rates on Cash and Cash Equivalents
|
|
|
(2)
|
|
|
14
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
|
(416)
|
|
|
154
|
Cash and Cash
Equivalents at Beginning of Period
|
|
|
1,751
|
|
|
1,102
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
1,335
|
|
$
|
1,256
|
Key Indicators
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Months
Ended
|
|
|
|
|
|
|
|
|
March 31,
|
Financial
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock
|
|
$1.49
|
|
$1.475
|
Book value per share
(a)(b)
|
|
$21.02
|
|
$20.14
|
Market price per
share (a)
|
|
$33.66
|
|
$33.14
|
Dividend
yield
|
|
4.4%
|
|
4.5%
|
Dividend payout ratio
(c)
|
|
48.2%
|
|
92.2%
|
Dividend payout ratio
- earnings from ongoing operations (c)(d)
|
|
69.3%
|
|
58.1%
|
Price/earnings ratio
(c)
|
|
10.9
|
|
20.7
|
Price/earnings ratio
- earnings from ongoing operations (c)(d)
|
|
15.7
|
|
13.0
|
Return on average
common equity
|
|
15.1%
|
|
8.6%
|
Return on average
common equity - earnings from ongoing operations (d)
|
|
10.5%
|
|
13.9%
|
|
(a) End of
period.
|
(b) Based on 667,713
and 631,417 shares of common stock outstanding (in thousands) at
March 31, 2015 and March 31, 2014.
|
(c) Based on diluted
earnings per share.
|
(d) 2015 was
calculated using regulated utility earnings from ongoing
operations. The calculation includes nine months of earnings from
2014 that were adjusted for Supply segment earnings and the impact
of dissynergies related to the spinoff of PPL Energy Supply. 2014
was calculated using actual earnings from ongoing operations and
was not adjusted for such items. Regulated earnings from ongoing
operations and earnings from ongoing operations are non-GAAP
financial measures that include adjustments described in the text
and tables of this news release.
|
Operating -
Domestic & International Electricity Sales
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
|
|
|
|
|
|
|
|
|
Percent
|
(GWh)
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Delivered
|
|
|
|
|
|
|
|
|
PPL Electric
Utilities
|
|
|
10,661
|
|
10,630
|
|
0.3%
|
|
LKE
|
|
|
8,296
|
|
8,495
|
|
(2.3%)
|
|
|
Total
|
|
|
18,957
|
|
19,125
|
|
(0.9%)
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Supplied (a)
|
|
|
|
|
|
|
|
|
PPL
EnergyPlus
|
|
|
3,805
|
|
3,777
|
|
0.7%
|
|
LKE
|
|
|
8,296
|
|
8,495
|
|
(2.3%)
|
|
|
Total
|
|
|
12,101
|
|
12,272
|
|
(1.4%)
|
|
|
|
|
|
|
|
|
|
|
International
Delivered
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
|
20,793
|
|
21,015
|
|
(1.1%)
|
|
|
|
|
|
|
|
|
|
|
Domestic
Wholesale
|
|
|
|
|
|
|
|
|
PPL EnergyPlus -
East
|
|
|
12,821
|
|
15,747
|
|
(18.6%)
|
|
PPL EnergyPlus -
West
|
|
|
678
|
|
1,379
|
|
(50.8%)
|
|
LKE (b)
|
|
|
684
|
|
730
|
|
(6.3%)
|
|
|
Total
|
|
|
14,183
|
|
17,856
|
|
(20.6%)
|
|
(a) Represents GWh
supplied by PPL EnergyPlus to PPL Electric Utilities as PLR, and to
other retail customers in Pennsylvania, New Jersey, Montana,
Delaware, Maryland, Ohio and Washington, D.C. Also includes GWh
supplied by LKE to retail customers in Kentucky, Virginia and
Tennessee.
|
(b) Represents
FERC-regulated municipal and unregulated off-system
sales.
|
Reconciliation of
Segment Reported Earnings (Loss) to Regulated Utility Earnings from
Ongoing Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Quarter
2015
|
|
(millions of
dollars)
|
|
|
|
U.K.
|
|
Kentucky
|
|
Pennsylvania
|
|
Corporate
|
|
|
|
|
|
|
|
Regulated
|
|
Regulated
|
|
Regulated
|
|
and Other
|
|
Supply
|
|
Total
|
Reported Earnings
(Loss)
|
|
$
|
375
|
|
$
|
109
|
|
$
|
87
|
|
$
|
(19)
|
|
$
|
95
|
|
$
|
647
|
Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37
|
Spinoff of PPL Energy
Supply:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply segment
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95
|
|
|
95
|
|
Employee transitional
services
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
(2)
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
|
|
|
(3)
|
|
Separation
benefits
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
(1)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPD Midlands
acquisition-related adjustment
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Total Special
Items
|
|
|
39
|
|
|
|
|
|
|
|
|
(6)
|
|
|
95
|
|
|
128
|
Regulated Utility
Earnings from Ongoing Operations
|
|
$
|
336
|
|
$
|
109
|
|
$
|
87
|
|
$
|
(13)
|
|
$
|
|
|
$
|
519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
|
|
U.K.
|
|
Kentucky
|
|
Pennsylvania
|
|
Corporate
|
|
|
|
|
|
|
|
Regulated
|
|
Regulated
|
|
Regulated
|
|
and Other
|
|
Supply
|
|
Total
|
Reported Earnings
(Loss)
|
|
$
|
0.56
|
|
$
|
0.16
|
|
$
|
0.13
|
|
$
|
(0.03)
|
|
$
|
0.14
|
|
$
|
0.96
|
Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.06
|
Spinoff of PPL Energy
Supply:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply segment
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.14
|
|
|
0.14
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
(0.01)
|
Total Special
Items
|
|
|
0.06
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
0.14
|
|
|
0.19
|
Regulated Utility
Earnings from Ongoing Operations
|
|
$
|
0.50
|
|
$
|
0.16
|
|
$
|
0.13
|
|
$
|
(0.02)
|
|
$
|
|
|
$
|
0.77
|
Reconciliation of
Segment Reported Earnings (Loss) to Regulated Utility Earnings from
Ongoing Operations (Adjusted)
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Quarter
2014
|
|
(millions of
dollars)
|
|
|
|
U.K.
|
|
Kentucky
|
|
Pennsylvania
|
|
Corporate
|
|
|
|
|
|
|
|
Regulated
|
|
Regulated
|
|
Regulated
|
|
and Other
|
|
Supply
|
|
Total
|
Reported Earnings
(Loss)
|
|
$
|
206
|
|
$
|
107
|
|
$
|
85
|
|
$
|
(7)
|
|
$
|
(75)
|
|
$
|
316
|
Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Spinoff of PPL Energy
Supply:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply segment
earnings (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(75)
|
|
|
(75)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in WPD line
loss accrual
|
|
|
(52)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(52)
|
Total Special
Items
|
|
|
(58)
|
|
|
|
|
|
|
|
|
|
|
|
(75)
|
|
|
(133)
|
Dissynergies related
to the spinoff of PPL Energy Supply (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect operation
and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
(14)
|
|
|
|
|
|
(14)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
|
|
|
|
|
(7)
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
(2)
|
Total dissynergies
related to the spinoff of PPL Energy Supply
|
|
|
|
|
|
|
|
|
|
|
|
(23)
|
|
|
|
|
|
(23)
|
Regulated Utility
Earnings from Ongoing Operations (Adj.)
|
|
$
|
264
|
|
$
|
107
|
|
$
|
85
|
|
$
|
(30)
|
|
$
|
|
|
$
|
426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share - diluted)
(a)
|
|
|
|
U.K.
|
|
Kentucky
|
|
Pennsylvania
|
|
Corporate
|
|
|
|
|
|
|
|
Regulated
|
|
Regulated
|
|
Regulated
|
|
and Other
|
|
Supply
|
|
Total
|
Reported Earnings
(Loss)
|
|
$
|
0.32
|
|
$
|
0.16
|
|
$
|
0.13
|
|
$
|
(0.01)
|
|
$
|
(0.11)
|
|
$
|
0.49
|
Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
Spinoff of PPL Energy
Supply:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply segment
earnings (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.11)
|
|
|
(0.11)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in WPD line
loss accrual
|
|
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.08)
|
Total Special
Items
|
|
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
(0.11)
|
|
|
(0.20)
|
Dissynergies related
to the spinoff of PPL Energy Supply (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect operation
and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
(0.02)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
(0.01)
|
Total dissynergies
related to the spinoff of PPL Energy Supply
|
|
|
|
|
|
|
|
|
|
|
|
(0.03)
|
|
|
|
|
|
(0.03)
|
Regulated Utility
Earnings from Ongoing Operations (Adj.)
|
|
$
|
0.41
|
|
$
|
0.16
|
|
$
|
0.13
|
|
$
|
(0.04)
|
|
$
|
|
|
$
|
0.66
|
|
(a) The "If-Converted
Method" has been applied to PPL's 2011 Equity Units, resulting in
$9 million of interest charges (after-tax) being added back to
earnings and approximately 32 million shares of PPL Common Stock
being treated as outstanding. Both adjustments are only for
purposes of calculating diluted earnings per share.
|
(b) To remove Supply
segment earnings as the segment is expected to be disposed of as a
result of the announced spinoff of PPL Energy Supply.
|
(c) Represents 2014
costs allocated to the Supply segment that will remain with PPL
after the expected spinoff of PPL Energy Supply, if left
unmitigated.
|
Reconciliation of
Supply Segment Reported Earnings (Loss) to Supply Earnings from
Ongoing Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Quarter
2015
|
|
|
|
1st Quarter
2014
|
|
|
|
|
|
|
|
|
(Millions of
Dollars)
|
|
(Per Share-
Diluted)
|
|
|
|
(Millions of
Dollars)
|
|
(Per Share-
Diluted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply Reported
Earnings (Loss)
|
|
|
$
|
95
|
$
|
0.14
|
|
|
$
|
(75)
|
$
|
(0.11)
|
|
|
|
|
Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
energy-related economic activity, net
|
|
|
|
27
|
|
0.03
|
|
|
|
(139)
|
|
(0.20)
|
|
|
|
|
Kerr Dam Project
impairment
|
|
|
|
|
|
|
|
|
|
(10)
|
|
(0.02)
|
|
|
|
|
Corette closure
costs
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Spinoff of PPL Energy
Supply:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transition
costs
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee transitional
services
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Special
Items
|
|
|
|
22
|
|
0.03
|
|
|
|
(149)
|
|
(0.22)
|
|
|
|
|
Supply Earnings
from Ongoing Operations
|
|
|
$
|
73
|
$
|
0.11
|
|
|
$
|
74
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Reported Earnings (Loss) to Regulated Utility Earnings
from
|
Ongoing Operations
(Adjusted)
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date December
31, 2014
|
|
(per share - diluted)
(a)
|
|
|
|
U.K.
|
|
Kentucky
|
|
Pennsylvania
|
|
Corporate
|
|
|
|
|
|
|
|
Regulated
|
|
Regulated
|
|
Regulated
|
|
and Other
|
|
Supply
|
|
Total
|
Reported Earnings
(Loss)
|
|
$
|
1.48
|
|
$
|
0.47
|
|
$
|
0.39
|
|
$
|
(0.19)
|
|
$
|
0.46
|
|
$
|
2.61
|
Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.19
|
Spinoff of PPL Energy
Supply:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply segment
earnings (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.46
|
|
|
0.46
|
|
Change in tax
valuation allowances
|
|
|
|
|
|
|
|
|
|
|
|
(0.07)
|
|
|
|
|
|
(0.07)
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
(0.02)
|
|
Separation
benefits
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
(0.02)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in WPD line
loss accrual
|
|
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.08)
|
|
Separation benefits -
bargaining unit voluntary program
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
(0.01)
|
Total Special
Items
|
|
|
0.11
|
|
|
|
|
|
(0.01)
|
|
|
(0.11)
|
|
|
0.46
|
|
|
0.45
|
Dissynergies related
to the spinoff of PPL Energy Supply: (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect operation
and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
(0.07)
|
|
|
|
|
|
(0.07)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
(0.05)
|
|
|
|
|
|
(0.05)
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
(0.01)
|
Total dissynergies
related to the spinoff of PPL Energy Supply
|
|
|
|
|
|
|
|
|
|
|
|
(0.13)
|
|
|
|
|
|
(0.13)
|
Regulated Utility
Earnings from Ongoing Operations (Adj.)
|
|
$
|
1.37
|
|
$
|
0.47
|
|
$
|
0.40
|
|
$
|
(0.21)
|
|
$
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The
"If-Converted Method" has been applied to PPL's 2011 Equity Units
prior to settlement, resulting in $9 million of interest
|
charges (after-tax)
being added back to earnings and approximately 11 million shares of
PPL Common
|
Stock being treated as
outstanding. Both adjustments are only for purposes of
calculating diluted earnings per share.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) To remove
Supply segment earnings as the segment is expected to be disposed
of as a result of the announced spinoff
|
of PPL Energy
Supply.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Represents
2014 costs allocated to the Supply segment that will remain with
PPL after the expected spinoff of PPL Energy
|
Supply, if left
unmitigated.
|
Contacts:
|
For news media – Ryan
Hill, 610-774-5997
|
|
For financial
analysts – Joseph P. Bergstein, 610-774-5609
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ppl-corporation-reports-first-quarter-earnings-300079452.html
SOURCE PPL Corporation