ST. LOUIS, Aug. 3, 2016 /PRNewswire/ -- Spire Inc.
(NYSE: SR) ("Company" or "Spire") today reported operating results
for its fiscal 2016 third quarter and nine months ended
June 30, 2016. Highlights
include:
- Third quarter diluted earnings per share of $0.24 down from $0.32 in the prior year, which included a
one-time gain on the sale of property
- Net economic earnings (NEE)* per share of $0.33 up from $0.25
a year ago
- Acquisition of Mobile Gas and Willmut Gas remains on
schedule
- Open season launched for Spire STL Pipeline on August 1
"Spire posted another solid operating and financial performance
in our third quarter as we continued to execute on our growth
strategies while delivering on our promises to our customers,
communities and shareholders," said Suzanne
Sitherwood, president and chief executive officer of Spire.
"We have been growing our gas utility business and modernizing our
gas assets. I am pleased to note that our initiatives are
proceeding according to plans. Our pending acquisition of Mobile
Gas and Willmut Gas is on schedule, and we have launched the open
season for Spire STL Pipeline, which will bring economical
Marcellus/Utica shale gas to our
eastern Missouri service
area."
Third Quarter
Results
|
Three months ended
June 30,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
18.0
|
|
|
$
|
16.5
|
|
|
$
|
0.41
|
|
|
$
|
0.38
|
|
|
Gas
Marketing
|
1.8
|
|
|
0.5
|
|
|
0.04
|
|
|
0.01
|
|
|
Other
|
(5.2)
|
|
|
(5.9)
|
|
|
(0.12)
|
|
|
(0.14)
|
|
|
|
Total
|
$
|
14.6
|
|
|
$
|
11.1
|
|
|
$
|
0.33
|
|
|
$
|
0.25
|
|
|
Acquisition-related
impacts, pre-tax:
|
|
|
|
|
|
|
|
|
|
Costs
|
(1.8)
|
|
|
(3.5)
|
|
|
(0.04)
|
|
|
(0.08)
|
|
|
|
Increase in
shares
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
Gain on sale of
property, pre-tax
|
—
|
|
|
7.6
|
|
|
—
|
|
|
0.17
|
|
|
Fair value
adjustments, pre-tax
|
(4.5)
|
|
|
0.8
|
|
|
(0.10)
|
|
|
0.02
|
|
|
Income tax effect of
adjustments
|
2.4
|
|
|
(1.9)
|
|
|
0.06
|
|
|
(0.04)
|
|
Net Income
(GAAP)
|
$
|
10.7
|
|
|
$
|
14.1
|
|
|
$
|
0.24
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding (Millions)
|
|
|
|
|
44.6
|
|
|
43.3
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For the three months ended June 30,
2016, the third quarter of our fiscal year, we reported
consolidated net income of $10.7
million (or $0.24 per diluted
share) compared to $14.1 million (or
$0.32 per diluted share) for the
prior year. The prior year period includes a pre-tax gain on sale
of property totaling $7.6 million, or
$4.7 million ($0.11 per share) after tax. Net economic earnings
(NEE) for the third quarter were $14.6
million (or $0.33 per share),
up from $11.1 million (or
$0.25 per share) a year ago. NEE
excludes from net income the effect of unrealized gains and losses
on energy-related derivatives, as well as the impacts of
acquisition, divestiture and restructuring activities which consist
largely of expenses associated with the pending acquisition of
Mobile Gas and Willmut Gas and the integrations of Alabama Gas
Corporation (Alagasco) and Missouri Gas Energy (MGE). NEE also
excludes the gain on sale of property in 2015.
Gas Utility
The Gas Utility segment includes the regulated gas distribution
operations of our three utilities - Laclede Gas and MGE
(collectively the Missouri Utilities) and Alagasco. For the third
quarter ended June 30, 2016, Gas
Utility net income was $17.9 million
compared to $20.7 million in the
prior year, which included the gain on sale of property noted
earlier. Segment NEE for the third quarter was $18.0 million, up from $16.5 million a year earlier, reflecting lower
operating costs including bad debt expense. These lower expenses
more than offset higher depreciation expense and higher income
taxes.
Segment operating margin (non-GAAP; see "Operating Margin and
Reconciliation to GAAP") increased by $4.0
million, reflecting $3.3
million higher Infrastructure System Replacement Surcharge
(ISRS) revenues at the Missouri Utilities and a $2.8 million lower year-over-year Rate
Stabilization and Equalization (RSE) giveback at Alagasco. These
margin benefits were partially offset by other variations including
the timing of gas cost recoveries. Excluding the $7.6 million pre-tax gain in fiscal 2015, other
operation and maintenance expenses were lower in fiscal 2016 due to
lower bad debt expense (reflecting the impact of warmer weather
experienced during the heating season) and employee related costs.
Depreciation and amortization increased by $1.7 million reflecting increased capital
investment including infrastructure upgrades.
Gas Marketing
The Gas Marketing segment includes the results of Laclede Energy
Resources, which provides natural gas marketing services to the
Midwest region. Primarily as a result of fair value adjustments,
quarterly net loss for the segment was $1.0
million compared to net income of $1.0 million a year ago. Quarterly net economic
earnings were $1.8 million, up from
$0.5 million in the prior year,
reflecting higher overall volumes and earnings from storage
activities, partially offset by narrowing spread reflective of the
current market.
Other
The non-utility operations and corporate costs were $6.2 million for the third quarter of fiscal 2016
compared to $7.6 million in the prior
year period. On a net economic earnings basis, these costs were
$5.2 million in the third quarter of
fiscal 2016, compared to $5.9 million
a year ago. Most of the costs in both periods relate to interest
expense on debt issued to finance the Alagasco acquisition.
Nine Months
Results
|
Nine months ended
June 30,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
170.5
|
|
|
$
|
162.8
|
|
|
$
|
3.91
|
|
|
$
|
3.75
|
|
|
Gas
Marketing
|
4.5
|
|
|
3.0
|
|
|
0.10
|
|
|
0.07
|
|
|
Other
|
(11.8)
|
|
|
(11.4)
|
|
|
(0.27)
|
|
|
(0.26)
|
|
|
|
|
Total
|
$
|
163.2
|
|
|
$
|
154.4
|
|
|
$
|
3.74
|
|
|
$
|
3.56
|
|
|
Acquisition-related
impacts, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
Costs
|
(5.1)
|
|
|
(6.5)
|
|
|
(0.12)
|
|
|
(0.15)
|
|
|
|
Increase in
shares
|
—
|
|
|
—
|
|
|
(0.03)
|
|
|
—
|
|
|
|
Gain on sale of
property, pre-tax
|
—
|
|
|
7.6
|
|
|
—
|
|
|
0.17
|
|
|
Fair value
adjustments, pre-tax
|
(2.6)
|
|
|
0.9
|
|
|
(0.06)
|
|
|
0.03
|
|
|
Income tax effect of
adjustments
|
2.9
|
|
|
(0.8)
|
|
|
0.07
|
|
|
(0.02)
|
|
Net Income
(GAAP)
|
$
|
158.4
|
|
|
$
|
155.6
|
|
|
$
|
3.60
|
|
|
$
|
3.59
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding (Millions)
|
|
|
|
|
43.8
|
|
|
43.2
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP, see
"Net Economic Earnings and Reconciliation to GAAP."
|
For the first nine months of fiscal 2016, we reported
consolidated net income of $158.4
million ($3.60 per diluted
share), up from $155.6 million
($3.59 per share) a year ago. The
prior year period includes the gain on sale of property of
$4.7 million after tax, or
$0.11 per share. NEE was $163.2 million ($3.74 per share), up from $154.4 million ($3.56 per share) in 2015.
Gas Utility
For the first nine months of fiscal 2016, the Gas Utility
segment reported net income of $169.6
million, up from $166.5
million for the same period in 2015, which included the gain
on sale of property. Segment NEE increased to $170.5 million from $162.8
million a year ago. The warm winter adversely impacted
operating margins and benefited certain other operating costs.
Year-to-date operating margins were essentially flat - up
$0.1 million - reflecting a
$28.9 million impact from lower
overall system demand, offset by $9.8
million higher ISRS revenue in Missouri, $9.7
million lower RSE givebacks in Alabama and $9.5
million in other variations including timing of gas cost
recoveries. Excluding the gain on sale of property in fiscal 2015,
other operation and maintenance expenses in fiscal 2016 were lower
by $21.4 million reflecting the
beneficial impact of warmer weather including lower bad debt
expense in the current year. Depreciation and amortization expenses
increased by $4.8 million reflecting
incremental capital investments.
Gas Marketing
For the nine months ended June 30,
2016, Gas Marketing net income decreased to $2.8 million from $3.5
million a year ago. The decrease in net income reflects less
favorable mark-to-market activity in the current period. Segment
NEE was $4.5 million, up from
$3.0 million in the prior period,
driven by increased volumes and earnings from storage activities,
partially offset by a decrease in net spread.
Other
The non-utility operations and corporate costs were $14.0 million in the first nine months of fiscal
2016, compared to $14.4 million in
the year-ago period. On a net economic earnings basis, the costs
were $11.8 million compared to
$11.4 million a year ago. A
significant portion of these costs are related to interest expense
on debt issued to finance the Alagasco acquisition.
Acquisition of Mobile Gas and Willmut Gas
On April 26, Spire announced its
intent to acquire EnergySouth, Inc., from Sempra U.S. Gas &
Power, a unit of Sempra Energy. EnergySouth is the parent company
of Mobile Gas, with 85,000 gas utility customers in Alabama, and Willmut Gas, with 19,000
customers in Mississippi.
Completing the acquisition is subject to customary closing
conditions including regulatory approval by the Mississippi Public
Service Commission (MSPSC). We expect to close shortly after all
conditions have been met, including MSPSC approval. The addition of
Mobile Gas and Willmut Gas is expected to be neutral to net
economic earnings per share in fiscal 2017 and accretive in fiscal
2018.
Spire STL Pipeline
As part of our efforts to modernize our gas transport, storage
and supply assets, in February we announced the Spire STL Pipeline
- an approximately 70-mile pipeline with a capacity of 400 MMcf/d -
to enhance reliability, diversify our physical transport portfolio
and provide access to lower-cost shale gas from the
Marcellus/Utica producing regions.
Laclede Gas is expected to be a foundation shipper with a
contractual commitment of 350 MMcf/d.
On July 22, our project was
accepted into the pre-filing process at the Federal Energy
Regulatory Commission (FERC), and on August
1 we launched an open season to broadly solicit commercial
interest in capacity on our proposed pipeline. The estimated total
project cost remains $170 - $200
million with an expected fiscal 2019 in-service date.
Outlook
Based on year-to-date performance, we are affirming our fiscal
2016 NEE per share range of $3.34 to
$3.44, but narrowing our expectation to the upper end of the
range. Capital expenditures for the year are anticipated to be
$310 million, reflecting the timing
of projects underway during our fiscal 2016 fourth quarter. Our
5-year view of capital spend remains unchanged at approximately
$1.8 billion.
Balance Sheets and Cash Flows
During the quarter, we successfully completed the raising of
permanent financing to support the Mobile Gas and Willmut Gas
acquisition. On May 17, we issued 2.2
million shares generating gross proceeds of $138 million. On June
20, we finalized commitments for long-term debt in a private
placement offering totaling $165
million, with the funding of that debt tied to the closing
of the underlying acquisition.
We maintain a strong capital structure with ample liquidity. At
June 30, 2016, we had a balanced
long-term capitalization of nearly 52 percent equity before
including the benefit of the equity raised to support the Mobile
Gas and Willmut Gas acquisition. Short-term borrowings outstanding
at June 30, 2016 were $97.6 million, down from $338.0 million at September 30, 2015.
Net cash provided by operating activities was $356.9 million for the nine months ended
June 30, 2016, compared to
$366.3 million for the same period in
fiscal 2015. The change reflects variations in collections under
the purchased gas cost riders in Missouri and Alabama, as well as other working capital
fluctuations which are largely driven by relative weather
conditions in each period.
Capital expenditures for the first nine months of fiscal 2016
were $195.3 million compared to
$202.9 million in the prior-year
period. We continue to focus on infrastructure upgrade investments
at the Missouri Utilities and Alagasco.
For additional details on Spire's results for the third quarter
and first nine months of fiscal 2016, please see the accompanying
unaudited Consolidated Statements of Income, unaudited Condensed
Consolidated Balance Sheets, and unaudited Condensed Consolidated
Statements of Cash Flows.
Regulatory Matters
On July 12, the Missouri Public
Service Commission (MoPSC) ordered that a complaint case filed in
late April by the Office of Public Counsel (OPC) be allowed to
proceed, but denied OPC's request that the Staff of the MoPSC
conduct the investigation. OPC had filed the complaint to address
whether the gas rates of the Missouri Utilities are just and
reasonable. The OPC alleged that the Missouri Utilities were
overearning based on an unadjusted return on equity for fiscal
2015. Earlier, we filed a motion, and the Staff of the MoPSC filed
a recommendation, for the complaint to be dismissed. On
July 22, we filed a motion for
reconsideration, or in the alternative, a motion for stay of the
complaint proceeding and proposed that our Missouri Utilities would
file their required rate cases on or before March 17, 2017.
Effective May 31, the MoPSC
approved a $9.0 million annualized
increase in ISRS revenues for the Missouri Utilities, bringing the
annual ISRS run rate to $35.3
million. ISRS allows for more timely regulatory recovery of
prudent investments made by gas utilities to improve the integrity,
safety and reliability of their distribution systems while reducing
maintenance costs.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its third quarter financial results. To access the call, please
dial the number below approximately 5-10 minutes prior to the start
time.
Date and
Time:
|
Wednesday, August
3
|
|
8 a.m. CDT (9 a.m.
EDT)
|
|
|
|
|
Phone
Numbers:
|
U.S. and
Canada:
|
1-844-824-3832
1-412-317-5142
|
|
International:
|
|
|
|
|
The call will also be webcast in a listen-only format for the
media and general public. The webcast can be accessed at
www.SpireEnergy.com under the Investor Relations tab. A replay of
the call will be available beginning at 10
a.m. CDT (11 a.m. EDT) on
August 3 and continuing until
September 2 by dialing 1-877-344-7529
(U.S.), 1-855-669-9658 (Canada),
or 1-412-317-0088 (International). The Replay Access Code is
10089431. A replay of the webcast will be available at
www.SpireEnergy.com.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make
people's lives better. It's a simple idea, but one that's at the
heart of our company. Every day we serve 1.56 million customers
making us the fifth largest publicly traded natural gas company in
the country. We help families and business owners fuel their daily
lives through our regulated utilities - Laclede Gas, Missouri Gas
Energy and Alagasco. Our non-regulated businesses Laclede Energy
Resources and Spire Natural Gas Fueling Solutions provide energy
solutions to other natural gas users. We are committed to
transforming our business and pursuing growth by 1) growing our gas
utility business through prudent infrastructure upgrades and
organic growth initiatives, 2) acquiring and integrating gas
utilities, 3) modernizing our gas supply assets, and
4) investing in innovation. Learn more at
www.SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and
Non-GAAP Measures
This news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Spire's future operating results may be affected by
various uncertainties and risk factors, many of which are beyond
the Company's control, including weather conditions, economic
factors, the competitive environment, governmental and regulatory
policy and action, and risks associated with recent and pending
acquisitions. For a more complete description of these
uncertainties and risk factors, see the Company's Form 10-K for the
fiscal year ended September 30, 2015,
filed with the Securities and Exchange Commission (SEC), and
Spire's Form 10-Q for the quarter and nine months ended
June 30, 2016, to be filed with the
SEC later today.
This news release includes the non-GAAP financial measures of
"net economic earnings," "net economic earnings per share," and
"operating margin." Management also uses these non-GAAP measures
internally when evaluating the Company's performance and results of
operations. Net economic earnings exclude from net income the
after-tax impacts of fair value accounting and timing adjustments
associated with energy-related transactions. These adjustments,
which primarily impact the Gas Marketing segment, include net
unrealized gains and losses on energy-related derivatives resulting
from the current changes in the fair value of financial and
physical transactions prior to their completion and settlement,
lower of cost or market inventory adjustments, and realized gains
and losses on economic hedges prior to the sale of the physical
commodity. In calculating net economic earnings, management also
excludes from net income the after-tax impacts related to
acquisition, divestiture, and restructuring activities, including
one-time costs related to the pending acquisition of Mobile Gas and
Willmut Gas and the integration of MGE and Alagasco. Management
believes that excluding these items provides a useful
representation of the economic impact of actual settled
transactions and overall results of ongoing operations. Operating
margin adjusts operating income to include only those costs that
are directly passed on to customers and collected through revenues,
which are the wholesale cost of natural gas and propane and gross
receipts taxes. These internal non-GAAP operating metrics should
not be considered as an alternative to, or more meaningful than,
GAAP measures such as operating income or net income.
Consolidated
Statements of Income -
Unaudited
Spire
Inc.
(In Millions, except
per share amounts)
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Nine months
ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Operating
Revenues:
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
253.2
|
|
|
$
|
260.2
|
|
|
$
|
1,263.5
|
|
|
$
|
1,688.6
|
|
|
Gas Marketing and
other
|
(3.9)
|
|
|
15.0
|
|
|
(5.5)
|
|
|
83.6
|
|
|
Total
Operating Revenues
|
249.3
|
|
|
275.2
|
|
|
1,258.0
|
|
|
1,772.2
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Gas
Utility
|
|
|
|
|
|
|
|
|
Natural and
propane gas
|
54.1
|
|
|
57.7
|
|
|
463.7
|
|
|
844.8
|
|
|
Other
operation and maintenance expenses
|
91.8
|
|
|
90.6
|
|
|
277.7
|
|
|
291.5
|
|
|
Depreciation
and amortization
|
34.2
|
|
|
32.5
|
|
|
101.5
|
|
|
96.7
|
|
|
Taxes, other
than income taxes
|
27.4
|
|
|
26.2
|
|
|
99.5
|
|
|
119.9
|
|
|
Total
Gas Utility Operating Expenses
|
207.5
|
|
|
207.0
|
|
|
942.4
|
|
|
1,352.9
|
|
|
Gas Marketing and
other
|
6.5
|
|
|
32.2
|
|
|
25.6
|
|
|
138.3
|
|
|
Total
Operating Expenses
|
214.0
|
|
|
239.2
|
|
|
968.0
|
|
|
1,491.2
|
|
Operating
Income
|
35.3
|
|
|
36.0
|
|
|
290.0
|
|
|
281.0
|
|
Other
Income
|
1.6
|
|
|
0.5
|
|
|
3.8
|
|
|
2.6
|
|
Interest
Charges:
|
|
|
|
|
|
|
|
|
Interest on long-term
debt
|
16.6
|
|
|
16.3
|
|
|
50.2
|
|
|
50.0
|
|
|
Other interest
charges
|
2.8
|
|
|
1.5
|
|
|
7.5
|
|
|
6.1
|
|
|
Total Interest
Charges
|
19.4
|
|
|
17.8
|
|
|
57.7
|
|
|
56.1
|
|
Income Before Income
Taxes
|
17.5
|
|
|
18.7
|
|
|
236.1
|
|
|
227.5
|
|
Income Tax
Expense
|
6.8
|
|
|
4.6
|
|
|
77.7
|
|
|
71.9
|
|
Net Income
|
$
|
10.7
|
|
|
$
|
14.1
|
|
|
$
|
158.4
|
|
|
$
|
155.6
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
44.4
|
|
|
43.2
|
|
|
43.6
|
|
|
43.1
|
|
|
Diluted
|
44.6
|
|
|
43.3
|
|
|
43.8
|
|
|
43.2
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share of Common Stock
|
$
|
0.24
|
|
|
$
|
0.32
|
|
|
$
|
3.62
|
|
|
$
|
3.59
|
|
Diluted Earnings Per
Share of Common Stock
|
$
|
0.24
|
|
|
$
|
0.32
|
|
|
$
|
3.60
|
|
|
$
|
3.59
|
|
Dividends Declared
Per Share of Common Stock
|
$
|
0.49
|
|
|
$
|
0.46
|
|
|
$
|
1.47
|
|
|
$
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets - Unaudited
Spire
Inc.
(In
Millions)
|
|
|
|
|
|
|
|
June 30,
|
|
September
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2015
|
ASSETS
|
|
|
|
|
|
Utility
Plant
|
$
|
4,339.5
|
|
|
$
|
4,234.5
|
|
|
$
|
4,108.4
|
|
Less:
Accumulated depreciation and amortization
|
1,311.5
|
|
|
1,307.0
|
|
|
1,239.1
|
|
Net Utility
Plant
|
3,028.0
|
|
|
2,927.5
|
|
|
2,869.3
|
|
Non-utility
Property
|
13.8
|
|
|
13.7
|
|
|
12.2
|
|
Goodwill
|
946.0
|
|
|
946.0
|
|
|
946.0
|
|
Other
Investments
|
62.4
|
|
|
59.9
|
|
|
63.1
|
|
Total Other
Property and Investments
|
1,022.2
|
|
|
1,019.6
|
|
|
1,021.3
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
4.9
|
|
|
13.8
|
|
|
5.7
|
|
Accounts receivable
(net of allowance for doubtful accounts)
|
195.6
|
|
|
210.6
|
|
|
210.7
|
|
Delayed customer
billings
|
3.5
|
|
|
2.6
|
|
|
21.9
|
|
Inventories
|
143.9
|
|
|
215.4
|
|
|
163.3
|
|
Other
|
105.5
|
|
|
87.7
|
|
|
81.4
|
|
Total Current
Assets
|
453.4
|
|
|
530.1
|
|
|
483.0
|
|
|
|
|
|
|
|
Regulatory Assets and
Other Deferred Charges
|
807.3
|
|
|
813.0
|
|
|
709.3
|
|
Total
Assets
|
$
|
5,310.9
|
|
|
$
|
5,290.2
|
|
|
$
|
5,082.9
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
Common stock and
paid-in capital
|
$
|
1,219.1
|
|
|
$
|
1,081.4
|
|
|
$
|
1,078.9
|
|
Retained
earnings
|
588.6
|
|
|
494.2
|
|
|
532.9
|
|
Accumulated other
comprehensive loss
|
(5.3)
|
|
|
(2.0)
|
|
|
(3.2)
|
|
Total Common
Stock Equity
|
1,802.4
|
|
|
1,573.6
|
|
|
1,608.6
|
|
Long-term
debt
|
1,851.7
|
|
|
1,771.5
|
|
|
1,736.4
|
|
Total
Capitalization
|
3,654.1
|
|
|
3,345.1
|
|
|
3,345.0
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Current portion of
long-term debt
|
—
|
|
|
80.0
|
|
|
80.0
|
|
Notes
payable
|
97.6
|
|
|
338.0
|
|
|
211.4
|
|
Accounts
payable
|
135.8
|
|
|
146.5
|
|
|
148.1
|
|
Advance customer
billings
|
53.0
|
|
|
44.3
|
|
|
12.9
|
|
Accrued liabilities
and other
|
205.4
|
|
|
245.0
|
|
|
268.0
|
|
Total Current
Liabilities
|
491.8
|
|
|
853.8
|
|
|
720.4
|
|
|
|
|
|
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
Deferred income
taxes
|
574.1
|
|
|
482.1
|
|
|
487.7
|
|
Pension and
postretirement benefit costs
|
246.9
|
|
|
253.4
|
|
|
233.3
|
|
Asset retirement
obligations
|
164.6
|
|
|
159.2
|
|
|
102.7
|
|
Regulatory
liabilities
|
105.7
|
|
|
119.3
|
|
|
114.9
|
|
Other
|
73.7
|
|
|
77.3
|
|
|
78.9
|
|
Total Deferred
Credits and Other Liabilities
|
1,165.0
|
|
|
1,091.3
|
|
|
1,017.5
|
|
Total Capitalization
and Liabilities
|
$
|
5,310.9
|
|
|
$
|
5,290.2
|
|
|
$
|
5,082.9
|
|
Condensed
Consolidated Statements of Cash Flow - Unaudited
Spire
Inc.
(In
Millions)
|
|
|
Nine months
ended
June 30,
|
|
2016
|
|
2015
|
Operating
Activities:
|
|
|
|
Net Income
|
$
|
158.4
|
|
|
$
|
155.6
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization, and accretion
|
102.0
|
|
|
97.4
|
|
Deferred income taxes
and investment tax credits
|
77.7
|
|
|
70.4
|
|
Changes in assets and
liabilities
|
18.9
|
|
|
35.2
|
|
Other
|
(0.1)
|
|
|
7.7
|
|
Net cash provided by
operating activities
|
356.9
|
|
|
366.3
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(195.3)
|
|
|
(202.9)
|
|
Payments for final
reconciliation of acquisitions
|
—
|
|
|
(8.6)
|
|
Other
|
(1.5)
|
|
|
(0.4)
|
|
Net cash used in
investing activities
|
(196.8)
|
|
|
(211.9)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
Repayment of long-term
debt
|
(80.0)
|
|
|
(34.7)
|
|
Issuance of long-term
debt
|
80.0
|
|
|
—
|
|
Repayment of
short-term debt - net
|
(240.4)
|
|
|
(75.8)
|
|
Issuance of common
stock
|
136.1
|
|
|
3.6
|
|
Dividends
paid
|
(62.9)
|
|
|
(59.1)
|
|
Other
|
(1.8)
|
|
|
1.2
|
|
Net cash used in
financing activities
|
(169.0)
|
|
|
(164.8)
|
|
|
|
|
|
Net Decrease in Cash
and Cash Equivalents
|
(8.9)
|
|
|
(10.4)
|
|
Cash and Cash
Equivalents at Beginning of Period
|
13.8
|
|
|
16.1
|
|
Cash and Cash
Equivalents at End of Period
|
$
|
4.9
|
|
|
$
|
5.7
|
|
Net Economic
Earnings and Reconciliation to GAAP
|
|
(In Millions, except
per share amounts)
|
Gas
Utility
|
|
Gas
Marketing
|
|
Other
|
|
Total
|
|
Per Diluted
Share(2)
|
Three Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
17.9
|
|
|
$
|
(1.0)
|
|
|
$
|
(6.2)
|
|
|
$
|
10.7
|
|
|
$
|
0.24
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
—
|
|
|
4.9
|
|
|
—
|
|
|
4.9
|
|
|
0.11
|
|
|
|
|
Lower of cost or
market inventory adjustments
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
|
(0.01)
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
0.2
|
|
|
—
|
|
|
1.6
|
|
|
1.8
|
|
|
0.04
|
|
|
|
Income tax effect of
adjustments (1)
|
(0.1)
|
|
|
(1.7)
|
|
|
(0.6)
|
|
|
(2.4)
|
|
|
(0.06)
|
|
|
|
Weighted average
shares adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
18.0
|
|
|
$
|
1.8
|
|
|
$
|
(5.2)
|
|
|
$
|
14.6
|
|
|
$
|
0.33
|
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
0.40
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.14)
|
|
|
$
|
0.24
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
0.41
|
|
|
$
|
0.04
|
|
|
$
|
(0.12)
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
20.7
|
|
|
$
|
1.0
|
|
|
$
|
(7.6)
|
|
|
$
|
14.1
|
|
|
$
|
0.32
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
energy-related derivatives
|
—
|
|
|
(2.9)
|
|
|
—
|
|
|
(2.9)
|
|
|
(0.07)
|
|
|
|
|
Lower of cost or
market inventory adjustments
|
—
|
|
|
(0.4)
|
|
|
—
|
|
|
(0.4)
|
|
|
(0.01)
|
|
|
|
|
Realized loss on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|
0.06
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
0.8
|
|
|
—
|
|
|
2.7
|
|
|
3.5
|
|
|
0.08
|
|
|
|
|
Gain on sale of
property
|
(7.6)
|
|
|
—
|
|
|
—
|
|
|
(7.6)
|
|
|
(0.17)
|
|
|
|
Income tax effect of
adjustments (1)
|
2.6
|
|
|
0.3
|
|
|
(1.0)
|
|
|
1.9
|
|
|
0.04
|
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
16.5
|
|
|
$
|
0.5
|
|
|
$
|
(5.9)
|
|
|
$
|
11.1
|
|
|
$
|
0.25
|
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
0.48
|
|
|
$
|
0.02
|
|
|
$
|
(0.18)
|
|
|
$
|
0.32
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
0.38
|
|
|
$
|
0.01
|
|
|
$
|
(0.14)
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income taxes are
calculated by applying federal, state, and local income tax rates
applicable to ordinary income to the amounts of the pre-tax
reconciling items.
|
|
(2) Fiscal 2016 net
economic earnings per share exclude the impact of the May 2016
equity issuance to fund a portion of the acquisition of Mobile Gas
and Willmut Gas. The weighted average diluted shares used in the
net economic earnings per share calculation for the fiscal quarter
ended June 30, 2016 was 43.5 compared to 44.6 in the GAAP diluted
EPS calculation. Fiscal 2015 net economic earnings per share is
calculated by replacing consolidated net income with consolidated
net economic earnings in the GAAP diluted EPS
calculation.
|
|
Note: EPS amounts by
segment represent contributions to Spire's consolidated
EPS.
|
Net Economic
Earnings and Reconciliation to GAAP
|
|
(In Millions, except
per share amounts)
|
Gas
Utility
|
|
Gas
Marketing
|
|
Other
|
|
Total
|
|
Per Diluted
Share(2)
|
Nine Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
169.6
|
|
|
$
|
2.8
|
|
|
$
|
(14.0)
|
|
|
$
|
158.4
|
|
|
$
|
3.60
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (gain)
loss on energy-related derivatives
|
(0.1)
|
|
|
3.0
|
|
|
—
|
|
|
2.9
|
|
|
0.07
|
|
|
|
|
Lower of cost or
market inventory adjustments
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
0.01
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.9)
|
|
|
—
|
|
|
(0.9)
|
|
|
(0.02)
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
1.6
|
|
|
—
|
|
|
3.5
|
|
|
5.1
|
|
|
0.12
|
|
|
|
Income tax effect of
adjustments (1)
|
(0.6)
|
|
|
(1.0)
|
|
|
(1.3)
|
|
|
(2.9)
|
|
|
(0.07)
|
|
|
|
Weighted average
shares adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
170.5
|
|
|
$
|
4.5
|
|
|
$
|
(11.8)
|
|
|
$
|
163.2
|
|
|
$
|
3.74
|
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
3.86
|
|
|
$
|
0.06
|
|
|
$
|
(0.32)
|
|
|
$
|
3.60
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
3.91
|
|
|
$
|
0.10
|
|
|
$
|
(0.27)
|
|
|
$
|
3.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
166.5
|
|
|
$
|
3.5
|
|
|
$
|
(14.4)
|
|
|
$
|
155.6
|
|
|
$
|
3.59
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
energy-related derivatives
|
(0.1)
|
|
|
(3.4)
|
|
|
—
|
|
|
(3.5)
|
|
|
(0.09)
|
|
|
|
|
Realized loss on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
2.6
|
|
|
—
|
|
|
2.6
|
|
|
0.06
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
1.7
|
|
|
—
|
|
|
4.8
|
|
|
6.5
|
|
|
0.15
|
|
|
|
|
Gain on sale of
property
|
(7.6)
|
|
|
—
|
|
|
—
|
|
|
(7.6)
|
|
|
(0.17)
|
|
|
|
Income tax effect of
adjustments (1)
|
2.3
|
|
|
0.3
|
|
|
(1.8)
|
|
|
0.8
|
|
|
0.02
|
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
162.8
|
|
|
$
|
3.0
|
|
|
$
|
(11.4)
|
|
|
$
|
154.4
|
|
|
$
|
3.56
|
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
3.84
|
|
|
$
|
0.08
|
|
|
$
|
(0.33)
|
|
|
$
|
3.59
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
3.75
|
|
|
$
|
0.07
|
|
|
$
|
(0.26)
|
|
|
$
|
3.56
|
|
|
|
|
(1) Income taxes are
calculated by applying federal, state, and local income tax rates
applicable to ordinary income to the amounts of the pre-tax
reconciling items.
|
|
(2) Fiscal 2016 net
economic earnings per share exclude the impact of the May 2016
equity issuance to fund a portion of the acquisition of Mobile Gas
and Willmut Gas. The weighted average diluted shares used in the
net economic earnings per share calculation for the nine months
ended June 30, 2016 was 43.5 compared to 43.8 in the GAAP diluted
EPS calculation. Fiscal 2015 net economic earnings per share is
calculated by replacing consolidated net income with consolidated
net economic earnings in the GAAP diluted EPS
calculation.
|
|
Note: EPS amounts by
segment represent contributions to Spire's consolidated
EPS.
|
Operating Margin
and Reconciliation to GAAP
|
|
(In
Millions)
|
Gas
Utility
|
|
Gas
Marketing
|
|
Other
|
|
Eliminations
|
|
Consolidated
|
Three Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
253.3
|
|
|
$
|
2.3
|
|
|
$
|
0.9
|
|
|
$
|
(7.2)
|
|
|
$
|
249.3
|
|
|
Natural and propane
gas expense
|
61.1
|
|
|
2.5
|
|
|
—
|
|
|
(6.9)
|
|
|
56.7
|
|
|
Gross receipts tax
expense
|
15.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.3
|
|
|
Operating margin
(non-GAAP)
|
176.9
|
|
|
(0.2)
|
|
|
0.9
|
|
|
(0.3)
|
|
|
177.3
|
|
|
Depreciation and
amortization
|
34.2
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
34.4
|
|
|
Other operating
expenses
|
104.0
|
|
|
1.3
|
|
|
2.6
|
|
|
(0.3)
|
|
|
107.6
|
|
|
Operating income
(loss) (GAAP)
|
$
|
38.7
|
|
|
$
|
(1.6)
|
|
|
$
|
(1.8)
|
|
|
$
|
—
|
|
|
$
|
35.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
261.2
|
|
|
$
|
28.9
|
|
|
$
|
1.0
|
|
|
$
|
(15.9)
|
|
|
$
|
275.2
|
|
|
Natural and propane
gas expense
|
73.2
|
|
|
25.7
|
|
|
0.1
|
|
|
(15.6)
|
|
|
83.4
|
|
|
Gross receipts tax
expense
|
15.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
15.2
|
|
|
Operating margin
(non-GAAP)
|
172.9
|
|
|
3.1
|
|
|
0.9
|
|
|
(0.3)
|
|
|
176.6
|
|
|
Depreciation and
amortization
|
32.5
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
32.7
|
|
|
Other operating
expenses
|
102.0
|
|
|
1.5
|
|
|
4.7
|
|
|
(0.3)
|
|
|
107.9
|
|
|
Operating income
(loss) (GAAP)
|
$
|
38.4
|
|
|
$
|
1.5
|
|
|
$
|
(3.9)
|
|
|
$
|
—
|
|
|
$
|
36.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
1,265.5
|
|
|
$
|
23.1
|
|
|
$
|
2.6
|
|
|
$
|
(33.2)
|
|
|
$
|
1,258.0
|
|
|
Natural and propane
gas expense
|
496.0
|
|
|
13.9
|
|
|
—
|
|
|
(32.3)
|
|
|
477.6
|
|
|
Gross receipts tax
expense
|
65.0
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
65.1
|
|
|
Operating margin
(non-GAAP)
|
704.5
|
|
|
9.1
|
|
|
2.6
|
|
|
(0.9)
|
|
|
715.3
|
|
|
Depreciation and
amortization
|
101.5
|
|
|
0.1
|
|
|
0.4
|
|
|
—
|
|
|
102.0
|
|
|
Other operating
expenses
|
312.9
|
|
|
4.3
|
|
|
7.0
|
|
|
(0.9)
|
|
|
323.3
|
|
|
Operating income
(loss) (GAAP)
|
$
|
290.1
|
|
|
$
|
4.7
|
|
|
$
|
(4.8)
|
|
|
$
|
—
|
|
|
$
|
290.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
1,692.6
|
|
|
$
|
135.2
|
|
|
$
|
2.8
|
|
|
$
|
(58.4)
|
|
|
$
|
1,772.2
|
|
|
Natural and propane
gas expense
|
902.1
|
|
|
124.8
|
|
|
0.3
|
|
|
(57.6)
|
|
|
969.6
|
|
|
Gross receipts tax
expense
|
86.1
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
86.3
|
|
|
Operating margin
(non-GAAP)
|
704.4
|
|
|
10.2
|
|
|
2.5
|
|
|
(0.8)
|
|
|
716.3
|
|
|
Depreciation and
amortization
|
96.7
|
|
|
0.3
|
|
|
0.4
|
|
|
—
|
|
|
97.4
|
|
|
Other operating
expenses
|
326.1
|
|
|
4.2
|
|
|
8.4
|
|
|
(0.8)
|
|
|
337.9
|
|
|
Operating income
(loss) (GAAP)
|
$
|
281.6
|
|
|
$
|
5.7
|
|
|
$
|
(6.3)
|
|
|
$
|
—
|
|
|
$
|
281.0
|
|
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SprireEnergy.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spire-reports-third-quarter-results-300308223.html
SOURCE Spire Inc.