ST. LOUIS, Nov. 15, 2016 /PRNewswire/ -- Spire Inc. (NYSE:
SR) today reported operating results for its fiscal 2016 full year
and fourth quarter ended September
30. Highlights include:
- Annualized dividend increased by 7.1 percent to $2.10 per share
- Fiscal 2016 diluted earnings per share of $3.24, up from $3.16 in fiscal 2015
- Fiscal 2016 net economic earnings* (NEE) per share of
$3.42, up 7.2 percent from prior
year
- Fiscal 2017 NEE per share expected to be $3.50 - $3.60
"2016 was another banner year for the growth of our company. We
became Spire in April to better deliver on our promises to our
customers, communities and shareholders," said Suzanne Sitherwood, president and chief
executive officer of Spire. "We now stand for both the energy we
deliver and what that energy makes possible. We're investing in and
growing our gas companies, achieving new levels of infrastructure
upgrades and safety performance. We're modernizing our gas assets
through our work on our Spire STL Pipeline project. We're expanding
the reach of our energy in Alabama
and Mississippi with the
acquisition of Mobile Gas and Willmut Gas, and we welcome these
103,000 customers and the dedicated employees who serve them to the
Spire family. Based on the strength of our 2016 performance and
expected growth in 2017, Spire's board of directors raised the
quarterly dividend by 7.1 percent to $0.525 per share."
Fiscal 2016
Results
|
Years ended
September 30,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
160.3
|
|
|
$
|
150.4
|
|
|
$
|
3.67
|
|
|
$
|
3.47
|
|
Gas
Marketing
|
6.4
|
|
|
4.2
|
|
|
0.15
|
|
|
0.10
|
|
Other
|
(17.6)
|
|
|
(16.3)
|
|
|
(0.40)
|
|
|
(0.38)
|
|
|
Total
|
$
|
149.1
|
|
|
$
|
138.3
|
|
|
$
|
3.42
|
|
|
$
|
3.19
|
|
Acquisition-related
pre-tax costs and increase in shares
|
(9.2)
|
|
|
(9.8)
|
|
|
(0.27)
|
|
|
(0.23)
|
|
Gain on sale of
property, pre-tax
|
—
|
|
|
7.6
|
|
|
—
|
|
|
0.18
|
|
Fair value
adjustments, pre-tax
|
1.5
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
Income tax effect of
adjustments
|
2.8
|
|
|
0.8
|
|
|
0.06
|
|
|
0.02
|
Net
Income
|
$
|
144.2
|
|
|
$
|
136.9
|
|
|
$
|
3.24
|
|
|
$
|
3.16
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding in Millions
|
|
|
|
|
44.3
|
|
|
43.3
|
|
* Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For fiscal 2016, we reported consolidated net income of
$144.2 million (or $3.24 per diluted share) compared to $136.9 million (or $3.16 per diluted share) for the prior year. NEE
for fiscal 2016 was $149.1
million (or $3.42 per share)
up from $138.3 million (or
$3.19 per share) a year ago,
representing a 7.2 percent increase in earnings per share. 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 including
expenses, financing impacts and operating results associated with
the acquisition of Mobile Gas and Willmut Gas, and the integrations
of Alabama Gas Corporation (Alagasco) and Missouri Gas Energy
(MGE).
Fiscal 2015 net income included the benefit of a gain on sale of
property totaling $7.6 million
pre-tax ($4.7 million or $0.11 per share after tax). NEE for 2015 excluded
this gain on sale of property.
Gas Utility
The Gas Utility segment includes the regulated gas distribution
operations of our five utilities - Laclede Gas and MGE
(collectively the Missouri Utilities), Alagasco, and recently
acquired Mobile Gas and Willmut Gas (collectively EnergySouth). For
fiscal 2016, Gas Utility net income was $159.0 million compared to $153.3 million in the prior year, which included
the gain on sale of property noted earlier. Segment NEE for the
year was $160.3 million, up from
$150.4 million in 2015, reflecting
lower operating costs which more than offset higher depreciation
expense and higher income taxes.
Segment operating margin (non-GAAP; see "Operating Margin and
Reconciliation to GAAP") increased by $2.3
million, including $2.2
million from the addition of EnergySouth. In addition,
operating margin reflects $13.8
million higher Infrastructure System Replacement Surcharge
(ISRS) revenues at the Missouri Utilities, and $4.5 million in lower regulatory adjustments in
Alabama. These positive factors
were largely offset by an $18.0
million impact from lower sales volumes due to warmer winter
temperatures. Excluding the $7.6
million pre-tax gain in fiscal 2015, other operation and
maintenance expenses were lower in fiscal 2016 by $20.7 million, reflecting the warmer weather
during the heating season which resulted in lower bad debt expense
and lower employee-related costs. Depreciation and amortization
rose by $7.0 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 across the
country with its core footprint being in the central U.S. Net
income for the segment was $7.1
million for fiscal 2016 compared to $4.1 million a year ago. NEE was $6.4 million, up from $4.2
million in the prior year, driven by increased volumes and
earnings from storage activities.
Other
Other non-utility operations and corporate costs were
$21.9 million for fiscal 2016 and
$20.5 million for 2015. The costs
consist mainly of interest expense on debt issued to finance the
acquisitions of Alagasco and EnergySouth. Interest expense
increased due to higher rates on floating-rate debt. On a net
economic earnings basis, which excludes the interest on debt issued
for the EnergySouth acquisition in 2016, these costs were
$17.6 million in fiscal 2016 and
$16.3 million in the prior year.
Quarterly
Results
|
Three months ended
September 30,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
(10.2)
|
|
|
$
|
(12.4)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.29)
|
|
Gas
Marketing
|
1.9
|
|
|
1.2
|
|
|
0.04
|
|
|
0.03
|
|
Other
|
(5.8)
|
|
|
(4.9)
|
|
|
(0.13)
|
|
|
(0.11)
|
|
|
Total
|
$
|
(14.1)
|
|
|
$
|
(16.1)
|
|
|
$
|
(0.32)
|
|
|
$
|
(0.37)
|
|
Acquisition-related
pre-tax costs and increase in shares
|
(4.1)
|
|
|
(3.3)
|
|
|
(0.08)
|
|
|
(0.08)
|
|
Fair value
adjustments, pre-tax
|
4.1
|
|
|
(0.9)
|
|
|
0.09
|
|
|
(0.02)
|
|
Income tax effect of
adjustments
|
(0.1)
|
|
|
1.6
|
|
|
—
|
|
|
0.04
|
Net Income
(Loss)
|
$
|
(14.2)
|
|
|
$
|
(18.7)
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.43)
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding in Millions
|
|
|
|
|
45.7
|
|
|
43.3
|
|
* Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
Our Gas Utility business is seasonal in nature, with earnings
concentrated during the winter heating season. As a result, Spire
typically reports a loss in the fiscal fourth quarter ended
September 30. For the fourth quarter
of fiscal 2016, we reported a consolidated net loss of $14.2 million ($0.31 per share) compared to a loss of
$18.7 million ($0.43 per share) in the prior year period. On an
NEE basis, we reported a loss of $14.1
million ($0.32 per share)
compared to a loss of $16.1 million
($0.37 per share) a year ago. The
smaller loss reflects improved results in both Gas Utility and Gas
Marketing, partially offset by higher costs in Other.
Gas Utility
The Gas Utility segment reported a net loss of $10.6 million for the fourth quarter of fiscal
2016, compared to a loss of $13.2
million for the same period a year ago. The NEE loss for the
segment was $10.2 million compared to
$12.4 million in the prior year. The
decrease in the seasonal loss reflects an increase in
operating margin, partially offset by higher expenses. Operating
margin increased by $2.2 million on
the inclusion of margin from EnergySouth, as higher ISRS revenues
for the Missouri Utilities were somewhat offset by higher net
regulatory adjustments for Alagasco. Other operation and
maintenance expenses of $99.8 million
for the quarter were up $0.7 million,
reflecting higher outside services costs and higher
employee-related expenses, partially offset by lower bad debt
expense. Depreciation and amortization expenses increased by
$2.2 million from last year
reflecting higher capital investment including infrastructure
upgrades.
Gas Marketing
Fourth quarter fiscal 2016 net income for the Gas Marketing
segment was $4.3 million, up from
$0.6 million in the prior-year
period, reflecting increased volumes and earnings from storage
activities as well as more favorable fair value adjustments. NEE,
which excludes the fair value adjustments, increased to
$1.9 million from $1.2 million a year ago.
Other
Other non-utility operations and corporate costs were
$7.9 million in the fourth quarter of
2016 and $6.1 million in the year-ago
period. A significant portion of these costs are related to
interest expense on debt issued to finance the acquisitions of
Alagasco and EnergySouth, which increased due to higher rates on
floating-rate debt. On an NEE basis, which excludes interest on
debt for the EnergySouth acquisition, fourth quarter costs were
$5.8 million in 2016 and $4.9 million a year ago.
Balance Sheets and Cash Flows
We continue to maintain a strong capital structure with ample
liquidity. At September 30, 2016, we
had a long-term capitalization of 49.6 percent equity, which fully
includes the debt and equity financing for the EnergySouth
acquisition discussed below. We had a comparable equity
capitalization a year ago. Short-term borrowings outstanding at
September 30, 2016 were $398.7 million compared to $338.0 million a year ago. These levels of
short-term debt are in line with our typical seasonal borrowing
needs. We have significant capacity to meet our anticipated capital
needs heading into the winter heating season.
Our balance sheet at September 30,
2016 reflects the acquisition of EnergySouth effective
September 12, 2016, including the
allocation of the $344 million
purchase price to tangible and intangible assets and the assumption
of certain liabilities including $67
million of long-term debt. During the fourth quarter, we
completed a private placement of $165
million in unsecured senior notes as part of the funding for
the EnergySouth acquisition. In May, we completed an equity
offering of 2.2 million shares generating gross proceeds of
$138 million.
Net cash provided by operating activities was $328.3 million for the year ended September 30, 2016, compared to $322.4 million for fiscal 2015. The increase was
primarily driven by smaller increases in working capital, partially
offset by a decrease in collections under the purchased gas cost
riders in Missouri and
Alabama.
Capital expenditures for fiscal 2016 were $293.3 million compared to $289.8 million in the prior year. Our capital
program continues to focus on investment in infrastructure upgrades
for the Missouri Utilities and Alagasco.
For additional details on Spire's results for the fourth quarter
and full year of fiscal 2016, please see the accompanying unaudited
Consolidated Statements of Income, unaudited Condensed Consolidated
Balance Sheets, and unaudited Condensed Consolidated Statements of
Cash Flow.
Spire STL Pipeline
As described when we first announced the project in February, we
are moving forward with the Spire STL Pipeline, an approximately
70-mile supply pipeline that will enhance reliability and the
diversity of our physical transport portfolio while providing
access to lower-cost shale gas from the Marcellus/Utica producing regions. In July, we secured
acceptance of our project into the pre-filing process at the
Federal Energy Regulatory Commission (FERC). In August, we
completed an open season to solicit commercial interest in capacity
on the pipeline, and held open houses with members of affected
communities and landowners. Work is underway on environmental
assessments, route refinements and other requirements for the
filing of our certificate application with FERC in January 2017 seeking approval for the project.
Our schedule continues to reflect an expected fiscal 2019
in-service date. The cost of the project is now anticipated to be
in the range of $190 - $210 million
based upon updated cost estimates.
Laclede Gas expects to be a foundation shipper with a
contractual commitment of 350 MMcf/d out of the total capacity of
400 MMcf/d.
Earnings Guidance and Outlook
We expect fiscal 2017 NEE to be in the range of $3.50 - $3.60 per fully diluted share. We
re-affirm our annual long-term NEE per share growth target of 4 - 6
percent. Our 2017 earnings guidance assumes:
- Reasonably normal weather across our utility service
territories
- The EnergySouth acquisition will be neutral to NEE per share in
2017
- Spire STL Pipeline will contribute modestly to earnings per
share while under construction
Our guidance also anticipates the issuance of 2.5 million shares
in April 2017 (the beginning of our
fiscal third quarter) in conjunction with the conversion of the
equity units issued in 2014 as part of the Alagasco acquisition
financing. The number of shares issued is based on the 20-day
average volume-weighted price of our common stock leading up to the
targeted settlement date in April
2017. The number of shares issued will range from 2.5
million to 3.1 million.
Spire capital expenditures for fiscal 2017 are expected to
increase from $293 million in 2016 to
approximately $410 million, with
investment in our gas utilities increasing year-over-year to
approximately $370 million. The
significant increase in gas utility investment reflects the
continued ramp-up of prudent infrastructure upgrades in both
Missouri and Alabama, and the addition of capital
expenditures for EnergySouth. The remainder of the increase
reflects non-utility spend primarily for Spire STL Pipeline. We
expect that over 70 percent of our fiscal 2017 utility capital
spend will be recovered in rates with minimal lag under regulatory
mechanisms in Missouri,
Alabama and Mississippi. We anticipate that our capital
spending for 2016 to 2020 will increase from $1.8 billion to at least $2.0 billion, driven by higher utility investment
and construction of Spire STL Pipeline.
Dividend Increase
As a result of the strong performance in fiscal 2016 and
expectations for continued growth, the board of directors of Spire
increased the quarterly common stock dividend to $0.525 per share, an increase of 7.1 percent.
This raises the annualized rate to $2.10 per share. This follows an increase of 6.5
percent in 2016. Spire has continuously paid a cash dividend since
1946, and 2017 will mark the 14th consecutive year that the
annualized dividend has increased.
The dividend is payable January 4,
2017, to shareholders of record on December 12, 2016.
Regulatory Matters
Alabama
Under the rate-setting process in Alabama, Alagasco and Mobile Gas each made
their annual RSE filings with the Alabama Public Service Commission
(APSC) on October 26, 2016. The RSE
filings present each utility's budget for the fiscal year ending
September 30, 2017. The filings
include net income and a calculation of return on average common
equity (ROE) for the year at 10.8 percent (plus a 5 basis-point
adder applicable to Alagasco for achieving certain customer
satisfaction rankings). Reflected in the filings are the
anticipated costs of operations of their respective systems as well
as a prudent level of investment to maintain and upgrade their
infrastructure over the next year. The filings are currently being
reviewed by the APSC, and we anticipate that new rates will be
effective December 1, 2016.
Missouri
On September 30, Laclede Gas and
MGE each filed a request with the Missouri Public Service
Commission (MoPSC) to increase ISRS revenues by $5.0 million and $3.4
million, respectively. If approved by the MoPSC as filed,
the additional amounts would bring the annual ISRS run rate for our
Missouri Utilities to $43.7 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.
Laclede Gas and MGE are anticipating filing concurrent general
rate cases with the MoPSC in mid-fiscal 2017 consistent with the
MGE stipulation and agreement with the MoPSC. The general rate case
process in Missouri can extend up
to 11 months, and, under that schedule, a final stipulation and any
resulting change in rates would be anticipated in fiscal 2018.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2016 fourth quarter and full year financial results. To
access the call, please dial the applicable number approximately
5-10 minutes prior to the start time.
Date and
Time:
|
Tuesday, November
15
|
|
|
8 a.m. CT (9 a.m.
ET)
|
|
|
|
|
|
Phone
Numbers:
|
U.S. and
Canada:
|
844-824-3832
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
SpireEnergy.com under the Investors tab. A replay of the call will
be available from 10 a.m. CT
(11 a.m. ET) on November 15 until December
15 by dialing 877-344-7529 (U.S.), 855-669-9658
(Canada), or 412-317-0088
(international). The replay access code is 10095621. A replay of
the webcast will be available at 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 1.7 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 gas utilities - Laclede Gas, Missouri Gas Energy,
Alagasco, Mobile Gas and Willmut Gas. Our non-utility 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 assets, and
4) investing in innovation. Learn more at 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, 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
costs related to the 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, net income, or earnings per share.
Consolidated
Statements of Income - Unaudited
Spire Inc. (In Millions, except per share
amounts)
|
|
|
|
Three months ended
September 30,
|
|
Years ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Operating
Revenues:
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
193.7
|
|
|
$
|
203.2
|
|
|
$
|
1,457.2
|
|
|
$
|
1,891.8
|
|
Gas Marketing and
other
|
85.6
|
|
|
1.0
|
|
|
80.1
|
|
|
84.6
|
|
Total Operating
Revenues
|
279.3
|
|
|
204.2
|
|
|
1,537.3
|
|
|
1,976.4
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Gas
Utility
|
|
|
|
|
|
|
|
|
Natural and
propane gas
|
28.5
|
|
|
37.6
|
|
|
492.2
|
|
|
882.4
|
|
Other
operation and maintenance expenses
|
99.8
|
|
|
99.1
|
|
|
377.5
|
|
|
390.6
|
|
Depreciation
and amortization
|
35.4
|
|
|
33.2
|
|
|
136.9
|
|
|
129.9
|
|
Taxes, other
than income taxes
|
25.7
|
|
|
22.2
|
|
|
125.2
|
|
|
142.1
|
|
Total Gas Utility
Operating Expenses
|
189.4
|
|
|
192.1
|
|
|
1,131.8
|
|
|
1,545.0
|
|
Gas Marketing and
other
|
97.6
|
|
|
20.6
|
|
|
123.2
|
|
|
158.9
|
|
Total Operating
Expenses
|
287.0
|
|
|
212.7
|
|
|
1,255.0
|
|
|
1,703.9
|
Operating (Loss)
Income
|
(7.7)
|
|
|
(8.5)
|
|
|
282.3
|
|
|
272.5
|
Other Income and
(Income Deductions) - Net
|
4.8
|
|
|
(1.4)
|
|
|
8.6
|
|
|
1.2
|
Interest
Charges:
|
|
|
|
|
|
|
|
|
Interest on long-term
debt
|
17.4
|
|
|
16.6
|
|
|
67.6
|
|
|
66.6
|
|
Other interest
charges
|
2.1
|
|
|
1.9
|
|
|
9.6
|
|
|
8.0
|
|
Total Interest
Charges
|
19.5
|
|
|
18.5
|
|
|
77.2
|
|
|
74.6
|
Income (Loss) Before
Income Taxes
|
(22.4)
|
|
|
(28.4)
|
|
|
213.7
|
|
|
199.1
|
Income Tax (Benefit)
Expense
|
(8.2)
|
|
|
(9.7)
|
|
|
69.5
|
|
|
62.2
|
Net (Loss)
Income
|
$
|
(14.2)
|
|
|
$
|
(18.7)
|
|
|
$
|
144.2
|
|
|
$
|
136.9
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
45.5
|
|
|
43.2
|
|
|
44.1
|
|
|
43.2
|
|
Diluted
|
45.7
|
|
|
43.3
|
|
|
44.3
|
|
|
43.3
|
|
|
|
|
|
|
|
|
|
Basic Earnings (Loss)
Per Share of Common Stock
|
$
|
(0.31)
|
|
|
$
|
(0.43)
|
|
|
$
|
3.26
|
|
|
$
|
3.16
|
Diluted Earnings
(Loss) Per Share of Common Stock
|
$
|
(0.31)
|
|
|
$
|
(0.43)
|
|
|
$
|
3.24
|
|
|
$
|
3.16
|
Dividends Declared
Per Share of Common Stock
|
$
|
0.49
|
|
|
$
|
0.46
|
|
|
$
|
1.96
|
|
|
$
|
1.84
|
Condensed
Consolidated Balance Sheets - Unaudited
Spire Inc. (In Millions)
|
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Utility
Plant
|
$
|
4,793.6
|
|
|
$
|
4,234.5
|
Less:
Accumulated depreciation and amortization
|
1,506.4
|
|
|
1,307.0
|
Net Utility
Plant
|
3,287.2
|
|
|
2,927.5
|
Non-utility
Property
|
13.7
|
|
|
13.7
|
Goodwill
|
1,164.9
|
|
|
946.0
|
Other
Investments
|
62.1
|
|
|
59.9
|
Other Property and
Investments
|
1,240.7
|
|
|
1,019.6
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
5.2
|
|
|
13.8
|
Accounts receivable
(net of allowance for doubtful accounts)
|
220.7
|
|
|
210.6
|
Delayed customer
billings
|
1.6
|
|
|
2.6
|
Inventories
|
202.3
|
|
|
215.4
|
Other
|
139.8
|
|
|
87.7
|
Total Current
Assets
|
569.6
|
|
|
530.1
|
Regulatory Assets and
Other Deferred Charges
|
979.9
|
|
|
813.0
|
Total
Assets
|
$
|
6,077.4
|
|
|
$
|
5,290.2
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
Capitalization:
|
|
|
|
Common stock and
paid-in capital
|
$
|
1,221.5
|
|
|
$
|
1,081.4
|
Retained
earnings
|
550.9
|
|
|
494.2
|
Accumulated other
comprehensive loss
|
(4.2)
|
|
|
(2.0)
|
Total Common
Stock Equity
|
1,768.2
|
|
|
1,573.6
|
Long-term
debt
|
1,833.7
|
|
|
1,771.5
|
Total
Capitalization
|
3,601.9
|
|
|
3,345.1
|
Current
Liabilities:
|
|
|
|
Current portion of
long-term debt
|
250.0
|
|
|
80.0
|
Notes
payable
|
398.7
|
|
|
338.0
|
Accounts
payable
|
210.9
|
|
|
146.5
|
Advance customer
billings
|
70.2
|
|
|
44.3
|
Accrued liabilities
and other
|
231.5
|
|
|
245.0
|
Total Current
Liabilities
|
1,161.3
|
|
|
853.8
|
Deferred Credits and
Other Liabilities:
|
|
|
|
Deferred income
taxes
|
607.3
|
|
|
482.1
|
Pension and
postretirement benefit costs
|
303.7
|
|
|
253.4
|
Asset retirement
obligations
|
206.4
|
|
|
159.2
|
Regulatory
liabilities
|
130.7
|
|
|
119.3
|
Other
|
66.1
|
|
|
77.3
|
Total Deferred
Credits and Other Liabilities
|
1,314.2
|
|
|
1,091.3
|
Total Capitalization
and Liabilities
|
$
|
6,077.4
|
|
|
$
|
5,290.2
|
Condensed
Consolidated Statements of Cash Flow - Unaudited
Spire Inc. (In Millions)
|
|
|
Years ended
September 30,
|
|
2016
|
|
2015
|
Operating
Activities:
|
|
|
|
Net Income
|
$
|
144.2
|
|
|
$
|
136.9
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization, and accretion
|
137.5
|
|
|
130.8
|
Deferred income taxes
and investment tax credits
|
68.8
|
|
|
65.5
|
Changes in assets and
liabilities
|
(27.1)
|
|
|
(17.2)
|
Other
|
4.9
|
|
|
6.4
|
Net cash provided by
operating activities
|
328.3
|
|
|
322.4
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(293.3)
|
|
|
(289.8)
|
Acquisition of
EnergySouth
|
(317.7)
|
|
|
—
|
Final payment for
acquisition of Alagasco
|
—
|
|
|
(8.2)
|
Other
|
(1.7)
|
|
|
(0.7)
|
Net cash used in
investing activities
|
(612.7)
|
|
|
(298.7)
|
|
|
|
|
Financing
Activities:
|
|
|
|
Repayment of long-term
debt
|
(80.0)
|
|
|
(34.8)
|
Issuance of long-term
debt
|
245.0
|
|
|
35.0
|
Issuance of short-term
debt - net
|
60.7
|
|
|
50.8
|
Issuance of common
stock
|
137.1
|
|
|
3.1
|
Dividends
paid
|
(85.2)
|
|
|
(79.0)
|
Other
|
(1.8)
|
|
|
(1.1)
|
Net cash provided by
(used in) financing activities
|
275.8
|
|
|
(26.0)
|
|
|
|
|
Net Decrease in Cash
and Cash Equivalents
|
(8.6)
|
|
|
(2.3)
|
Cash and Cash
Equivalents at Beginning of Period
|
13.8
|
|
|
16.1
|
Cash and Cash
Equivalents at End of Period
|
$
|
5.2
|
|
|
$
|
13.8
|
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
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
(10.6)
|
|
|
$
|
4.3
|
|
|
$
|
(7.9)
|
|
|
$
|
(14.2)
|
|
|
$
|
(0.31)
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
energy-related derivatives
|
(0.2)
|
|
|
(2.8)
|
|
|
—
|
|
|
(3.0)
|
|
|
(0.06)
|
|
|
|
Lower of cost or
market inventory adjustments
|
—
|
|
|
(0.4)
|
|
|
—
|
|
|
(0.4)
|
|
|
(0.01)
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.7)
|
|
|
—
|
|
|
(0.7)
|
|
|
(0.02)
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
0.7
|
|
|
—
|
|
|
3.4
|
|
|
4.1
|
|
|
0.09
|
|
|
Income tax effect of
adjustments (1)
|
(0.1)
|
|
|
1.5
|
|
|
(1.3)
|
|
|
0.1
|
|
|
—
|
|
|
Weighted average
shares adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
(10.2)
|
|
|
$
|
1.9
|
|
|
$
|
(5.8)
|
|
|
$
|
(14.1)
|
|
|
$
|
(0.32)
|
|
|
|
Diluted EPS
(GAAP)
|
(0.23)
|
|
|
0.09
|
|
|
(0.17)
|
|
|
(0.31)
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
(0.23)
|
|
|
0.04
|
|
|
(0.13)
|
|
|
(0.32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
(13.2)
|
|
|
$
|
0.6
|
|
|
$
|
(6.1)
|
|
|
$
|
(18.7)
|
|
|
$
|
(0.43)
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
0.02
|
|
|
|
Lower of cost or
market inventory adjustments
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
0.01
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.2)
|
|
|
(0.01)
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
1.4
|
|
|
—
|
|
|
1.9
|
|
|
3.3
|
|
|
0.08
|
|
|
Income tax effect of
adjustments (1)
|
(0.6)
|
|
|
(0.3)
|
|
|
(0.7)
|
|
|
(1.6)
|
|
|
(0.04)
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
(12.4)
|
|
|
$
|
1.2
|
|
|
$
|
(4.9)
|
|
|
$
|
(16.1)
|
|
|
$
|
(0.37)
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
(0.30)
|
|
|
$
|
0.01
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.43)
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
(0.29)
|
|
|
$
|
0.03
|
|
|
$
|
(0.11)
|
|
|
$
|
(0.37)
|
|
|
|
|
(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) Net economic
earnings per share is generally calculated by replacing
consolidated net income with consolidated net economic earnings in
the GAAP diluted EPS calculation. Fiscal 2016 net economic earnings
per share excludes the impact of the May 2016 equity issuance to
fund a portion of the acquisition of EnergySouth. The weighted
average diluted shares used in the net economic earnings per share
calculation for the quarter ended September 30, 2016 was 43.5
compared to 45.7 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)
|
Year Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
159.0
|
|
|
$
|
7.1
|
|
|
$
|
(21.9)
|
|
|
$
|
144.2
|
|
|
$
|
3.24
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (gain)
loss on energy-related derivatives
|
(0.3)
|
|
|
0.2
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
Lower of cost or
market inventory adjustments
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
0.01
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(1.6)
|
|
|
—
|
|
|
(1.6)
|
|
|
(0.04)
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
2.3
|
|
|
—
|
|
|
6.9
|
|
|
9.2
|
|
|
0.21
|
|
|
Income tax effect of
adjustments (1)
|
(0.7)
|
|
|
0.5
|
|
|
(2.6)
|
|
|
(2.8)
|
|
|
(0.06)
|
|
|
Weighted average
shares adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.06
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
160.3
|
|
|
$
|
6.4
|
|
|
$
|
(17.6)
|
|
|
$
|
149.1
|
|
|
$
|
3.42
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
3.57
|
|
|
$
|
0.16
|
|
|
$
|
(0.49)
|
|
|
$
|
3.24
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
3.67
|
|
|
$
|
0.15
|
|
|
$
|
(0.40)
|
|
|
$
|
3.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
153.3
|
|
|
$
|
4.1
|
|
|
$
|
(20.5)
|
|
|
$
|
136.9
|
|
|
$
|
3.16
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
energy-related derivatives
|
(0.1)
|
|
|
(2.7)
|
|
|
—
|
|
|
(2.8)
|
|
|
(0.07)
|
|
|
|
Lower of cost or
market inventory adjustments (1)
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
0.01
|
|
|
|
Realized loss on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
2.4
|
|
|
—
|
|
|
2.4
|
|
|
0.06
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
3.1
|
|
|
—
|
|
|
6.7
|
|
|
9.8
|
|
|
0.23
|
|
|
|
Gain on sale of
property
|
(7.6)
|
|
|
—
|
|
|
—
|
|
|
(7.6)
|
|
|
(0.18)
|
|
|
Income tax effect of
adjustments (1)
|
1.7
|
|
|
—
|
|
|
(2.5)
|
|
|
(0.8)
|
|
|
(0.02)
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
150.4
|
|
|
$
|
4.2
|
|
|
$
|
(16.3)
|
|
|
$
|
138.3
|
|
|
$
|
3.19
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
3.53
|
|
|
$
|
0.10
|
|
|
$
|
(0.47)
|
|
|
$
|
3.16
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
3.47
|
|
|
$
|
0.10
|
|
|
$
|
(0.38)
|
|
|
$
|
3.19
|
|
|
|
|
(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) Net economic
earnings per share is generally calculated by replacing
consolidated net income with consolidated net economic earnings in
the GAAP diluted EPS calculation. Fiscal 2016 net economic earnings
per share excludes the impact of the May 2016 equity issuance to
fund a portion of the acquisition of EnergySouth. The weighted
average diluted shares used in the net economic earnings per share
calculation for fiscal 2016 was 43.5 compared to 44.3 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
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
193.9
|
|
|
$
|
55.4
|
|
|
$
|
2.2
|
|
|
$
|
27.8
|
|
|
$
|
279.3
|
|
Natural and propane
gas expense
|
43.7
|
|
|
46.8
|
|
|
0.2
|
|
|
29.3
|
|
|
120.0
|
|
Gross receipts tax
expense
|
10.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
Operating margin
(non-GAAP)
|
139.9
|
|
|
8.6
|
|
|
2.0
|
|
|
(1.5)
|
|
|
149.0
|
|
Depreciation and
amortization
|
35.4
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
35.5
|
|
Other operating
expenses
|
116.3
|
|
|
1.5
|
|
|
4.9
|
|
|
(1.5)
|
|
|
121.2
|
|
Operating (loss)
income (GAAP)
|
$
|
(11.8)
|
|
|
$
|
7.1
|
|
|
$
|
(3.0)
|
|
|
$
|
—
|
|
|
$
|
(7.7)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
203.2
|
|
|
$
|
18.2
|
|
|
$
|
0.9
|
|
|
$
|
(18.1)
|
|
|
$
|
204.2
|
|
Natural and propane
gas expense
|
55.5
|
|
|
15.7
|
|
|
—
|
|
|
(17.9)
|
|
|
53.3
|
|
Gross receipts tax
expense
|
10.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.0
|
|
Operating margin
(non-GAAP)
|
137.7
|
|
|
2.5
|
|
|
0.9
|
|
|
(0.2)
|
|
|
140.9
|
|
Depreciation and
amortization
|
33.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
33.4
|
|
Other operating
expenses
|
111.5
|
|
|
1.4
|
|
|
3.3
|
|
|
(0.2)
|
|
|
116.0
|
|
Operating (loss)
income (GAAP)
|
$
|
(7.0)
|
|
|
$
|
1.1
|
|
|
$
|
(2.6)
|
|
|
$
|
—
|
|
|
$
|
(8.5)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
1,459.4
|
|
|
$
|
78.5
|
|
|
$
|
4.8
|
|
|
$
|
(5.4)
|
|
|
$
|
1,537.3
|
|
Natural and propane
gas expense
|
539.7
|
|
|
60.7
|
|
|
0.2
|
|
|
(3.0)
|
|
|
597.6
|
|
Gross receipts tax
expense
|
75.3
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
75.4
|
|
Operating margin
(non-GAAP)
|
844.4
|
|
|
17.7
|
|
|
4.6
|
|
|
(2.4)
|
|
|
864.3
|
|
Depreciation and
amortization
|
136.9
|
|
|
0.1
|
|
|
0.5
|
|
|
—
|
|
|
137.5
|
|
Other operating
expenses
|
429.2
|
|
|
5.8
|
|
|
11.9
|
|
|
(2.4)
|
|
|
444.5
|
|
Operating income
(loss) (GAAP)
|
$
|
278.3
|
|
|
$
|
11.8
|
|
|
$
|
(7.8)
|
|
|
$
|
—
|
|
|
$
|
282.3
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
1,895.8
|
|
|
$
|
153.4
|
|
|
$
|
3.7
|
|
|
$
|
(76.5)
|
|
|
$
|
1,976.4
|
|
Natural and propane
gas expense
|
957.6
|
|
|
140.5
|
|
|
0.3
|
|
|
(75.5)
|
|
|
1,022.9
|
|
Gross receipts tax
expense
|
96.1
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
96.3
|
|
Operating margin
(non-GAAP)
|
842.1
|
|
|
12.7
|
|
|
3.4
|
|
|
(1.0)
|
|
|
857.2
|
|
Depreciation and
amortization
|
129.9
|
|
|
0.3
|
|
|
0.6
|
|
|
—
|
|
|
130.8
|
|
Other operating
expenses
|
437.6
|
|
|
5.6
|
|
|
11.7
|
|
|
(1.0)
|
|
|
453.9
|
|
Operating income
(loss) (GAAP)
|
$
|
274.6
|
|
|
$
|
6.8
|
|
|
$
|
(8.9)
|
|
|
$
|
—
|
|
|
$
|
272.5
|
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-2016-results-300362785.html
SOURCE Spire Inc.