Alliant Energy Announces Second Quarter 2013 Results Reaffirms 2013 earnings guidance

MADISON, Wis., Aug. 2, 2013 /PRNewswire/ -- Alliant Energy Corporation (NYSE: LNT) today announced second quarter U.S. generally accepted accounting principles (GAAP) and non-GAAP consolidated unaudited earnings per share (EPS) from continuing operations as follows:


Adjusted (non-GAAP) EPS
from Continuing Operations


GAAP EPS from
Continuing Operations


Q2 2013


Q2 2012


Q2 2013


Q2 2012

Utility and Corporate Services

$0.52


$0.47


$0.52


$0.49

Non-regulated and Parent

0.07


0.11


0.07


0.11

Alliant Energy Consolidated

$0.59


$0.58


$0.59


$0.60

(Logo: http://photos.prnewswire.com/prnh/20020405/LNTLOGO)

"I am pleased with the consistent financial performance of our company," said Patricia Kampling, Alliant Energy Chairman, President and CEO.  "With the solid earnings to date, we are reaffirming 2013 earnings per share guidance."

Utility and Corporate Services - Alliant Energy's Utility and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.52 per share of non-GAAP EPS from continuing operations in the second quarter of 2013, which was $0.05 per share higher than the second quarter of 2012.  The quarter-over-quarter increase in earnings was primarily due to lower purchased power capacity costs related to the Riverside Energy Center, which Wisconsin Power and Light Company (WPL) purchased on December 31, 2012.  The higher earnings were partially offset by higher depreciation expense primarily resulting from the purchase of the Riverside Energy Center, as well as lower quarter-over-quarter earnings attributed to weather.

Non-regulated and Parent - Alliant Energy's non-regulated and parent operations generated $0.07 per share of non-GAAP EPS from continuing operations in the second quarter of 2013, which was $0.04 per share lower than the second quarter of 2012.  Lower income at the parent business from the impacts of Interstate Power and Light Company's (IPL's) tax benefit riders contributed to the lower non-regulated and parent earnings for the second quarter of 2013, but is not expected to have an impact on 2013 total year earnings.  Anticipated losses related to the Franklin County wind project also contributed to lower quarter-over-quarter earnings.

Earnings Adjustments - Second quarter 2012 non-GAAP EPS excludes regulatory-related credits of $0.02 per share from a WPL rate case decision in June 2012.  Non-GAAP adjustments, which relate to material charges or income that are not normally associated with ongoing operations, are provided as a supplement to results reported in accordance with GAAP.

Details regarding GAAP EPS from continuing operations variances between the second quarters of 2013 and 2012 for Alliant Energy's operations are as follows:


GAAP EPS


Q2 2013


Q2 2012

Utility and Corporate Services

$0.52


$0.49

Non-regulated and Parent

0.07


0.11

Alliant Energy Consolidated

$0.59


$0.60

 


Q2 2013


Q2 2012


Variance

Utility and Corporate Services operations:






Capacity charges related to Riverside PPA in 2012

$—


($0.11)


$0.11

Weather impact on electric and gas sales

0.02


0.06


(0.04)

Higher depreciation expense (primarily related to the purchase of Riverside)





(0.04)

Revenue requirement adjustment related to tax benefits at IPL

0.03



0.03

Lower energy conservation cost recovery amortizations at WPL





0.03

Regulatory-related credits from WPL rate case decision in June 2012


0.02


(0.02)

Retail gas base rate changes at WPL and IPL effective in January 2013





(0.01)

Electric and gas tax benefit riders impact at IPL (timing between quarters)

(0.06)


(0.05)


(0.01)

Other





(0.02)

    Total Utility and Corporate Services operations





$0.03

Non-regulated and Parent operations:






Electric and gas tax benefit riders impact at Parent (timing between quarters)

0.03


0.04


($0.01)

Franklin County wind project

(0.01)



(0.01)

Other





(0.02)

    Total Non-regulated and Parent operations





($0.04)

Weather impact on electric and gas sales - The impact of the weather on Alliant Energy's electric and gas sales in the second quarter of 2013 was estimated to be a $0.02 per share increase in electric and gas margins.  By comparison, the net impact of the unseasonably warm weather on Alliant Energy's electric and gas sales in the second quarter of 2012 was estimated to be a $0.06 per share net increase in electric and gas margins.

Revenue requirement adjustment related to tax benefits at IPL - In February 2013, the Iowa Utilities Board (IUB) issued an order allowing IPL to recognize a revenue requirement adjustment related to certain tax benefits from tax accounting method changes.

Regulatory-related credits from WPL rate case decision in June 2012 - On June 15, 2012, the Public Service Commission of Wisconsin (PSCW) issued its oral decision on the 2013/2014 test year electric and gas retail rate case request filed by WPL in May 2012.  The regulatory-related credits from this decision resulted in an increase in earnings of $0.02 per share in the second quarter of 2012.

Electric and gas tax benefit riders - In 2011 and 2012, IPL received rate orders from the IUB authorizing IPL to implement its proposed electric and gas tax benefit riders, respectively, which utilize income tax benefits from certain tax initiatives to provide retail electric and gas customers in Iowa credits on their bills.  These credits on customers' electric bills reduced IPL's electric revenues by $83 million during 2012.  Credits on customers' electric and gas bills are expected to reduce IPL's electric and gas revenues by approximately $56 million and $12 million, respectively, during calendar year 2013.  Due to timing of the tax credits, the tax benefit riders result in quarter-over-quarter variation in EPS at IPL as well as the Parent.  The credit on customer bills is based on kilowatt-hour usage (electric) and a monthly distribution charge (gas), which are fairly consistent throughout the year.  However, the offsetting tax benefits are recorded as a percentage of expected earnings for IPL and for Alliant Energy each quarter, which fluctuate significantly causing the quarter-over-quarter variation.  The following table shows the estimated quarterly impacts of the tax benefit riders on EPS at IPL and the Parent for 2013 and 2012:


Q1-2013


Q2-2013


Q3-2013


Q4-2013


2013

IPL - electric and gas

($0.02)


($0.06)


$0.15


($0.07)


$—

Parent

0.02


0.03


(0.07)


0.02



$—


($0.03)


$0.08


($0.05)


$—












Q1-2012


Q2-2012


Q3-2012


Q4-2012


2012

IPL - electric

($0.09)


($0.05)


$0.18


($0.04)


$—

Parent

0.06


0.04


(0.12)


0.02



($0.03)


($0.01)


$0.06


($0.02)


$—

2013 Earnings Guidance

Alliant Energy is reaffirming its 2013 earnings per share guidance as follows:

Utility and Corporate Services

$2.90 - $3.10

Non-regulated and Parent

0.05 - 0.15

Alliant Energy Consolidated

$2.95 - $3.25

The 2013 earnings guidance does not include the impacts of any non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, discontinued operations, future changes in laws or regulations, charges related to preferred stock redemptions, adjustments made to deferred tax assets and liabilities from valuation allowances, pending lawsuits and disputes, federal and state income tax audits and other Internal Revenue Service proceedings or changes in generally accepted accounting principles and tax methods of accounting that may impact the reported results of Alliant Energy.

Drivers for Alliant Energy's 2013 earnings guidance include, but are not limited to:

  • Stable economy and resulting implications on utility sales
  • Normal weather and operating conditions in its utility service territories for the remainder of the year
  • Ability of IPL and WPL to earn their authorized rates of return
  • Ability of WPL to recover future purchased power, fuel and fuel-related costs through rates in a timely manner
  • Continuing cost controls and operational efficiencies
  • Execution of IPL's and WPL's capital expenditure plans
  • Consolidated effective tax rate of 13%

Earnings Conference Call

A conference call to review the second quarter of 2013 results is scheduled for Friday, August 2nd at 9:00 a.m. central time.  Alliant Energy Chairman, President and Chief Executive Officer Patricia Kampling and Senior Vice President and Chief Financial Officer Tom Hanson will host the call.  The conference call is open to the public and can be accessed in two ways.  Interested parties may listen to the call by dialing 888-221-9591 (United States or Canada) or 913-312-1434 (International), passcode 8244179.  Interested parties may also listen to a webcast at www.alliantenergy.com/investors.  In conjunction with the information in this earnings announcement and the conference call, Alliant Energy posted supplemental materials on its website.  A replay of the call will be available through August 9, 2013, at 888-203-1112 (United States or Canada) or 719-457-0820 (International), passcode 8244179.  An archive of the webcast will be available on the Company's Web site at www.alliantenergy.com/investors for 12 months.

Alliant Energy is the parent company of two public utility companies - Interstate Power and Light Company and Wisconsin Power and Light Company - and of Alliant Energy Resources, LLC, the parent company of Alliant Energy's non-regulated operations.  Alliant Energy is an energy-services provider with utility subsidiaries serving approximately 1 million electric and 415,000 natural gas customers.  Providing its customers in the Midwest with regulated electricity and natural gas service is the Company's primary focus.  Alliant Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT.  For more information, visit the Company's Web site at www.alliantenergy.com.

This press release includes forward-looking statements.  These forward-looking statements can be identified as such because the statements include words such as "expect," "anticipate," "plan," or other words of similar import.  Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements.  Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Actual results could be materially affected by the following factors, among others:

  • federal and state regulatory or governmental actions, including the impact of energy, tax, financial and health care legislation, and of regulatory agency orders;
  • IPL's and WPL's ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of operating costs, fuel costs, transmission costs, deferred expenditures, capital expenditures, and remaining costs related to generating units that may be permanently closed, earning their authorized rates of return, and the payments to their parent of expected levels of dividends;
  • the ability to continue cost controls and operational efficiencies;
  • the impact of WPL's retail electric and gas base rate freeze in Wisconsin through 2014;
  • weather effects on results of utility operations including impacts of temperature changes in IPL's and WPL's service territories on customers' demand for electricity and gas;
  • the impact of the economy in IPL's and WPL's service territories and the resulting impacts on sales volumes, margins and the ability to collect unpaid bills;
  • the impact of energy efficiency, franchise retention and customer owned generation on sales volumes and margins;
  • developments that adversely impact Alliant Energy's, IPL's and WPL's ability to implement their strategic plan, including unanticipated issues with new emission controls equipment for various coal-fired generating facilities of IPL and WPL, IPL's construction of its proposed natural gas-fired electric generating facility in Iowa, Alliant Energy Resources, LLC's selling price of the electricity output from its 100 megawatt Franklin County wind project, and the potential decommissioning of certain generating facilities of IPL and WPL;
  • issues related to the availability of generating facilities and the supply and delivery of fuel and purchased electricity and the price thereof, including the ability to recover and to retain the recovery of purchased power, fuel and fuel-related costs through rates in a timely manner;
  • the impact that fuel and fuel-related prices may have on IPL's and WPL's customers' demand for utility services;
  • issues associated with environmental remediation and environmental compliance, including compliance with the Consent Decree between WPL, the Sierra Club and the U.S. Environmental Protection Agency (EPA), future changes in environmental laws and regulations and litigation associated with environmental requirements;
  • the ability to defend against environmental claims brought by state and federal agencies, such as the EPA, or third parties, such as the Sierra Club;
  • the ability to recover through rates all environmental compliance and remediation costs, including costs for projects put on hold due to uncertainty of future environmental laws and regulations;
  • the direct or indirect effects resulting from terrorist incidents, including cyber terrorism, or responses to such incidents;
  • the impact of a failure to maintain the security of personally identifiable information, including associated costs to notify affected persons and to mitigate their information security concerns, for penalties or for third-party claims;
  • impacts of future tax benefits from deductions for repairs expenditures and mixed service costs and temporary differences from historical tax benefits from such deductions that are included in rates when the differences reverse in future periods;
  • any material post-closing adjustments related to any past asset divestitures, including the sale of RMT, Inc.;
  • continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies;
  • inflation and interest rates;
  • changes to the creditworthiness of counterparties with which Alliant Energy, IPL and WPL have contractual arrangements, including participants in the energy markets and fuel suppliers and transporters;
  • issues related to electric transmission, including operating in Regional Transmission Organization (RTO) energy and ancillary services markets, the impacts of potential future billing adjustments and cost allocation changes from RTOs and recovery of costs incurred;
  • unplanned outages, transmission constraints or operational issues impacting fossil or renewable generating facilities and risks related to recovery of resulting incremental costs through rates;
  • Alliant Energy's ability to successfully pursue appropriate appeals with respect to, and any liabilities arising out of, the alleged violation of the Employee Retirement Income Security Act of 1974 by the Alliant Energy Cash Balance Pension Plan;
  • current or future litigation, regulatory investigations, proceedings or inquiries;
  • Alliant Energy's ability to sustain its dividend payout ratio goal;
  • employee workforce factors, including changes in key executives, collective bargaining agreements and negotiations, work stoppages or additional restructurings;
  • impacts that storms or natural disasters, including floods, droughts and forest or prairie fires, in IPL's and WPL's service territories may have on their operations and recovery of, and rate relief for, costs associated with restoration activities;
  • the impact of distributed generation, including alternative electric suppliers, in IPL's and WPL's service territories on system reliability, operating expenses and customers' demand for electricity;
  • access to technological developments;
  • material changes in retirement and benefit plan costs;
  • the impact of performance-based compensation plans accruals;
  • the effect of accounting pronouncements issued periodically by standard-setting bodies;
  • the impact of changes to production tax credits for wind projects;
  • the impact of adjustments made to deferred tax assets and liabilities from state apportionment assumptions;
  • the ability to utilize tax credits and net operating losses generated to date, and those that may be generated in the future, before they expire;
  • the ability to successfully complete tax audits, changes in tax accounting methods and appeals with no material impact on earnings and cash flows; and
  • factors listed in the "2013 Earnings Guidance" sections of this press release.

Without limitation, the expectations with respect to 2013 earnings guidance in this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements.  Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct.  Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy's ability to achieve the estimates or other targets included in the forward-looking statements.  The forward-looking statements included herein are made as of the date hereof and Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.

Note: Unless otherwise noted, all "per share" references in this release refer to earnings per diluted share.

ALLIANT ENERGY CORPORATION

SECOND QUARTER 2013 EARNINGS SUMMARY


A summary of Alliant Energy's second quarter 2013 results compared to second quarter 2012 results is as follows:


EPS:

GAAP EPS


Adjustments


Non-GAAP EPS


Q2 2013


Q2 2012


Q2 2013


Q2 2012


Q2 2013


Q2 2012

IPL

$0.20


$0.15


$—


$—


$0.20


$0.15

WPL

0.31


0.32



(0.02)


0.31


0.30

Corporate Services

0.01


0.02




0.01


0.02

Subtotal for Utility and Corporate Services

0.52


0.49



(0.02)


0.52


0.47

Non-regulated and Parent

0.07


0.11




0.07


0.11

EPS from continuing operations

0.59


0.60



(0.02)


0.59


0.58

EPS from discontinued operations






Alliant Energy Consolidated

$0.59


$0.60


$—


($0.02)


$0.59


$0.58







Earnings (in millions):

GAAP Income (Loss)


Adjustments


Non-GAAP Income (Loss)


Q2 2013


Q2 2012


Q2 2013


Q2 2012


Q2 2013


Q2 2012

IPL

$22.2


$16.6


$—


$—


$22.2


$16.6

WPL

34.4


35.2



(1.9)


34.4


33.3

Corporate Services

1.8


2.2




1.8


2.2

Subtotal for Utility and Corporate Services

58.4


54.0



(1.9)


58.4


52.1

Non-regulated and Parent

7.5


11.5




7.5


11.5

Total earnings from continuing operations

65.9


65.5



(1.9)


65.9


63.6

Income (loss) from discontinued operations

(0.6)


0.4




(0.6)


0.4

Alliant Energy Consolidated

$65.3


$65.9


$—


($1.9)


$65.3


$64.0

 

ALLIANT ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)








Three Months Ended June 30,


Six Months Ended June 30,


2013


2012


2013


2012


(in millions)



Operating revenues:








Utility:








    Electric

$612.1


$612.6


$1,245.3


$1,185.0

    Gas

73.4


50.0


270.7


217.1

    Other

17.8


13.8


35.0


27.5

Non-regulated

14.7


13.9


26.6


26.4


718.0


690.3


1,577.6


1,456.0

Operating expenses:








Utility:








    Electric production fuel and energy purchases

158.0


168.9


337.1


328.8

    Purchased electric capacity

52.0


70.7


109.0


132.2

    Electric transmission service

99.6


79.4


203.3


160.8

    Cost of gas sold

38.9


18.6


166.9


123.4

    Other operation and maintenance

147.2


137.9


297.4


287.9

Non-regulated operation and maintenance

3.1


0.7


5.3


4.9

Depreciation and amortization

92.7


80.8


185.3


163.8

Taxes other than income taxes

23.3


24.5


49.4


49.8


614.8


581.5


1,353.7


1,251.6

Operating income

103.2


108.8


223.9


204.4

Interest expense and other:








Interest expense

42.5


38.6


85.1


77.5

Equity income from unconsolidated investments, net

(10.9)


(10.6)


(21.6)


(20.0)

Allowance for funds used during construction

(7.0)


(4.8)


(12.6)


(8.6)

Interest income and other

(0.3)


(0.6)


(1.1)


(1.7)


24.3


22.6


49.8


47.2

Income from continuing operations before income taxes

78.9


86.2


174.1


157.2

Income taxes

10.5


16.8


22.6


44.5

Income from continuing operations, net of tax

68.4


69.4


151.5


112.7

Income (loss) from discontinued operations, net of tax

(0.6)


0.4


(3.6)


(4.0)

Net income

67.8


69.8


147.9


108.7

Preferred dividend requirements of subsidiaries

2.5


3.9


12.7


7.9

Net income attributable to Alliant Energy common shareowners

$65.3


$65.9


$135.2


$100.8

 

ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)






June 30, 2013


Dec. 31, 2012


(in millions)

ASSETS:




Property, plant and equipment:




Utility plant in service, net of accumulated depreciation

$6,941.5


$6,942.3

Utility construction work in progress

610.4


418.8

Other property, plant and equipment, net of accumulated depreciation

475.3


476.9

Current assets:




Cash and cash equivalents

11.5


21.2

Other current assets

881.9


973.1

Investments

321.3


319.0

Other assets

1,645.7


1,634.2

Total assets

$10,887.6


$10,785.5

CAPITALIZATION AND LIABILITIES:




Capitalization:




Alliant Energy Corporation common equity

$3,160.5


$3,134.9

Cumulative preferred stock of subsidiaries, net

200.0


205.1

Noncontrolling interest

1.8


1.8

Long-term debt, net (excluding current portion)

3,141.4


3,136.6

    Total capitalization

6,503.7


6,478.4

Current liabilities:




Current maturities of long-term debt

1.5


1.5

Commercial paper

223.1


217.5

Other current liabilities

847.9


801.0

Other long-term liabilities and deferred credits

3,311.4


3,287.1

        Total capitalization and liabilities

$10,887.6


$10,785.5


ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)






Six Months Ended June 30,


2013


2012


(in millions)

Cash flows from operating activities

$423.3


$339.2

Cash flows used for investing activities:




Construction and acquisition expenditures:




    Utility business

(341.5)


(247.3)

    Alliant Energy Corporate Services, Inc. and non-regulated businesses

(27.5)


(75.1)

Proceeds from Franklin County wind project cash grant

62.4


Other

(15.6)


0.6

        Net cash flows used for investing activities

(322.2)


(321.8)

Cash flows from (used for) financing activities:




Common stock dividends

(104.2)


(99.7)

Proceeds from issuance of preferred stock

200.0


Payments to redeem preferred stock

(211.0)


Net change in commercial paper

10.6


110.0

Other

(6.2)


(8.3)

        Net cash flows from (used for) financing activities

(110.8)


2.0

Net increase (decrease) in cash and cash equivalents

(9.7)


19.4

Cash and cash equivalents at beginning of period

21.2


11.4

Cash and cash equivalents at end of period

$11.5


$30.8

 

KEY FINANCIAL STATISTICS






June 30, 2013


June 30, 2012

Common shares outstanding (000s)

110,944


110,976

Book value per share

$28.49


$27.16

Quarterly common dividend rate per share

$0.47


$0.45

 

KEY OPERATING STATISTICS






Three Months Ended June 30,


Six Months Ended June 30,


2013


2012


2013


2012

Utility electric sales (000s of MWh)








Residential

1,698


1,734


3,747


3,597

Commercial

1,503


1,534


3,048


3,049

Industrial

2,887


2,864


5,584


5,679

    Retail subtotal

6,088


6,132


12,379


12,325

Sales for resale:








    Wholesale

833


778


1,717


1,535

    Bulk power and other

285


362


436


447

Other

43


37


83


74

    Total

7,249


7,309


14,615


14,381

Utility retail electric customers (at June 30)








Residential

846,261


843,538





Commercial

138,262


137,266





Industrial

2,841


2,853





    Total

987,364


983,657





Utility gas sold and transported (000s of Dth)








Residential

4,377


2,761


18,263


13,288

Commercial

3,185


2,283


12,152


9,386

Industrial

640


463


1,636


1,415

    Retail subtotal

8,202


5,507


32,051


24,089

Transportation / other

13,035


13,888


29,494


27,008

    Total

21,237


19,395


61,545


51,097

Utility retail gas customers (at June 30)








Residential

369,410


366,869





Commercial

45,633


45,375





Industrial

441


482





    Total

415,484


412,726






Estimated margin increases (decreases) from impacts of weather (in millions) -


Three Months Ended June 30,


Six Months Ended June 30,


2013


2012


2013


2012

Electric margins

$3


$13


$6


$1

Gas margins

1


(2)


2


(12)

Total weather impact on margins

$4


$11


$8


($11)






Three Months Ended June 30,


Six Months Ended June 30,


2013


2012


Normal (a)


2013


2012


Normal (a)

Heating degree days (HDDs) (a)












Cedar Rapids, Iowa (IPL)

775


510


700


4,296


3,202


4,125

Madison, Wisconsin (WPL)

897


652


836


4,642


3,369


4,347

Cooling degree days (CDDs) (a)












Cedar Rapids, Iowa (IPL)

246


317


221


246


345


222

Madison, Wisconsin (WPL)

190


310


176


190


336


176


(a) HDDs and CDDs are calculated using a simple average of the high and low temperatures each day compared to a 65-degree base.  Normal degree days are calculated using a rolling 20-year average of historical HDDs and CDDs.

SOURCE Alliant Energy Corporation



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