Hawaiian Electric Industries Reports Third Quarter 2012 Earnings & Declares Dividend
Earnings Per Share of $0.49
Hawaiian Electric Company Continues to Invest in Local Infrastructure
American Savings Bank Continues to Deliver Solid Results
Board Declares Dividend of $0.31 Per Share
HONOLULU, Nov. 7, 2012 /PRNewswire/ -- Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported consolidated net income for common stock for the third quarter of 2012 of $47.7 million, or $0.49 diluted earnings per share (EPS), compared to $48.4 million, or $0.50 diluted EPS for the third quarter of 2011.
"HEI had another solid quarter as we continued to invest in our Hawaii-based businesses. Through the first nine months of this year, Hawaiian Electric Company1 invested $188 million, close to twice its earnings, in local infrastructure projects to modernize the electric grid and reliably integrate increasing amounts of renewable energy. At American Savings Bank (American), loans to customers, excluding residential lending, increased over $100 million in the first nine months of the year, with a $15 million increase in clean energy loans. Over $600 million of new residential mortgages were originated by American during this period, more than double the amount for the same period last year," said Constance H. Lau, HEI president and chief executive officer.
"Reducing Hawaii's dependence on oil is critical to an economically and environmentally vibrant future for our state and our utility's customers. Since the end of 2010, a typical monthly Oahu residential electric bill increased by about $52, of which $42 is due to higher fuel oil costs. This is why we are committed to continuing to seek ways to help stabilize customer bills and accelerate Hawaii's move to clean energy," said Lau.
HAWAIIAN ELECTRIC COMPANY CONTINUES TO INVEST IN CLEAN ENERGY AND RELIABILITY
Hawaiian Electric Company's net income for the third quarter of 2012 was $38.4 million, nearly flat with $38.0 million in the third quarter of 2011 as recovery of costs for reliability and clean energy investments were largely offset by higher expenses.
The primary variances impacting net income for the quarter were (on an after-tax basis):
- $4 million recovery of costs, net of lower heat rate earnings;
- A favorable tax settlement of $1 million recorded in the third quarter 2012 related to prior years;
- $4 million higher operations and maintenance (O&M) expenses2; and
- $1 million higher depreciation expense.
O&M expenses2 were approximately 7% higher in the third quarter of 2012 compared to the third quarter of 2011 largely due to higher customer service expenses, offset by lower plant overhaul expenses due to timing of work within the year. While year-to-date O&M expenses are essentially flat with the same period last year, management expects an increase in the fourth quarter of 2012 due to the timing of projects and expects full year O&M expense to be 4% higher than 2011. This is down from the previously expected 6% increase largely due to the revised timing of various studies.
1 "Hawaiian Electric Company" or "utility", unless otherwise defined, refers to the three utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc.
2 Excludes demand side management (DSM) program costs. DSM program costs were $2 million in third quarter of 2012 compared to $1 million in third quarter of 2011. DSM program costs are recovered through a surcharge.
AMERICAN SAVINGS BANK'S STABLE RESULTS REFLECT DISCIPLINED APPROACH
American's net income for the third quarter of 2012 was $14.2 million compared with $14.2 million in the second, or linked, quarter of 2012 and $15.5 million in the third quarter of 2011. Third quarter 2012 net income was consistent with the linked quarter as higher revenue, primarily driven by gains on sales of loans, were offset by slightly higher provision for loan losses and noninterest expense.
Compared to the same quarter of 2011, net income declined by $1.2 million. Higher noninterest expense, primarily driven by spending for new products and projects aimed at longer-term growth, and lower net interest income from declining yields on assets, were partially offset by higher gains on sale of new residential mortgages. Residential mortgage production totaled $272 million in the quarter compared to $123 million in the same quarter last year, outperforming the overall Hawaii market growth.
Overall, American continued to deliver solid results in third quarter 2012 with a return on average equity of 11.2% and a return on average assets of 1.15%.
Also refer to the American news release issued on October 30, 2012.
HOLDING AND OTHER COMPANIES
The holding and other companies' net losses were $4.9 million in the third quarter of 2012 compared to $5.0 million in the third quarter of 2011.
BOARD DECLARES QUARTERLY DIVIDEND
On November 7, 2012, the board of directors maintained HEI's quarterly cash dividend of 31 cents per share, payable on December 12, 2012, to shareholders of record at the close of business on November 19, 2012 (ex-dividend date is November 15, 2012). The dividend is equivalent to an annual rate of $1.24 per share.
Dividends have been paid continuously since 1901. At the indicated annual dividend rate and the closing share price on November 6, 2012 of $25.68, HEI's yield is 4.8%.
WEBCAST AND TELECONFERENCE
Hawaiian Electric Industries, Inc. will conduct a webcast and teleconference call to review its third quarter 2012 earnings on Thursday, November 8, 2012, at 8:00 a.m. Hawaii time (1:00 p.m. Eastern time). The event can be accessed through HEI's website at www.hei.com or by dialing (866) 383-8008, passcode: 56693947 for the teleconference call. The presentation for the webcast will be on HEI's website under the headings "Investor Relations," "News & Events" and "Presentations & Webcasts." HEI and Hawaiian Electric Company, Inc. (HECO) intend to continue to use HEI's website, www.hei.com, as a means of disclosing additional information. Such disclosures will be included on HEI's website in the Investor Relations section. Accordingly, investors should routinely monitor such portions of HEI's website, in addition to following HEI's, HECO's and American's press releases, HEI's and HECO's Securities and Exchange Commission (SEC) filings and HEI's public conference calls and webcasts. The information on HEI's website is not incorporated by reference in this document or in HEI's and HECO's SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms in order to review documents filed with and issued by the PUC. No information on the PUC website is incorporated by reference in this document or in HEI's and HECO's SEC filings.
An online replay of the webcast will be available at the same website beginning about two hours after the event. Replays of the teleconference call will also be available approximately two hours after the event through November 22, 2012, by dialing (888) 286-8010, passcode: 43247040.
HEI supplies power to approximately 450,000 customers or 95% of Hawaii's population through its electric utilities, HECO, Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited and provides a wide array of banking and other financial services to consumers and businesses through American, one of Hawaii's largest financial institutions.
FORWARD-LOOKING STATEMENTS
This release may contain "forward-looking statements," which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as "expects," "anticipates," "intends," "plans," "believes," "predicts," "estimates" or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this release should be read in conjunction with the "Forward-Looking Statements" and "Risk Factors" discussions (which are incorporated by reference herein) set forth in HEI's Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 and HEI's future periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, HECO, American and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
| Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries |
||||||||||
| CONSOLIDATED STATEMENTS OF INCOME |
||||||||||
| (Unaudited) |
Three months |
Nine months |
||||||||
| ended September 30, |
ended September 30, |
|||||||||
| (in thousands, except per share amounts) |
2012 |
2011 |
2012 |
2011 |
||||||
| Revenues |
||||||||||
| Electric utility |
$801,095 |
$820,254 |
$2,340,257 |
$2,194,327 |
||||||
| Bank |
66,596 |
66,100 |
196,569 |
197,731 |
||||||
| Other |
29 |
1 |
22 |
(751) |
||||||
| Total revenues |
867,720 |
886,355 |
2,536,848 |
2,391,307 |
||||||
| Expenses |
||||||||||
| Electric utility |
726,276 |
745,298 |
2,146,688 |
2,031,645 |
||||||
| Bank |
44,974 |
42,931 |
130,161 |
128,988 |
||||||
| Other |
4,768 |
3,636 |
13,075 |
9,148 |
||||||
| Total expenses |
776,018 |
791,865 |
2,289,924 |
2,169,781 |
||||||
| Operating income (loss) |
||||||||||
| Electric utility |
74,819 |
74,956 |
193,569 |
162,682 |
||||||
| Bank |
21,622 |
23,169 |
66,408 |
68,743 |
||||||
| Other |
(4,739) |
(3,635) |
(13,053) |
(9,899) |
||||||
| Total operating income |
91,702 |
94,490 |
246,924 |
221,526 |
||||||
| Interest expense–other than on deposit liabilities |
||||||||||
| and other bank borrowings |
(20,020) |
(19,949) |
(58,758) |
(64,266) |
||||||
| Allowance for borrowed funds used during construction |
688 |
658 |
2,451 |
1,731 |
||||||
| Allowance for equity funds used during construction |
1,611 |
1,570 |
5,548 |
4,131 |
||||||
| Income before income taxes |
73,981 |
76,769 |
196,165 |
163,122 |
||||||
| Income taxes |
25,804 |
27,894 |
69,926 |
57,700 |
||||||
| Net income |
48,177 |
48,875 |
126,239 |
105,422 |
||||||
| Preferred stock dividends of subsidiaries |
471 |
471 |
1,417 |
1,417 |
||||||
| Net income for common stock |
$ 47,706 |
$ 48,404 |
$ 124,822 |
$ 104,005 |
||||||
| Basic earnings per common share |
$ 0.49 |
$ 0.50 |
$ 1.29 |
$ 1.09 |
||||||
| Diluted earnings per common share |
$ 0.49 |
$ 0.50 |
$ 1.29 |
$ 1.09 |
||||||
| Dividends per common share |
$ 0.31 |
$ 0.31 |
$ 0.93 |
$ 0.93 |
||||||
| Weighted-average number of common shares outstanding |
97,157 |
95,873 |
96,674 |
95,365 |
||||||
| Adjusted weighted-average shares |
97,518 |
96,100 |
97,097 |
95,671 |
||||||
| Net income (loss) for common stock by segment |
||||||||||
| Electric utility |
$ 38,375 |
$ 37,959 |
$ 95,051 |
$ 74,172 |
||||||
| Bank |
14,208 |
15,457 |
44,274 |
44,503 |
||||||
| Other |
(4,877) |
(5,012) |
(14,503) |
(14,670) |
||||||
| Net income for common stock |
$ 47,706 |
$ 48,404 |
$ 124,822 |
$ 104,005 |
||||||
| Comprehensive income attributable to common shareholders |
$ 49,292 |
$ 51,585 |
$ 128,269 |
$ 109,815 |
||||||
| Twelve months ended |
||||||||||
| September 30, |
||||||||||
| 2012 |
2011 |
|||||||||
| Return on average common equity |
10.1% |
8.5% |
||||||||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
||||||||||
| Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries |
||
| CONSOLIDATED BALANCE SHEETS |
||
| (Unaudited) |
||
| September 30, |
December 31, |
|
| (dollars in thousands) |
2012 |
2011 |
| Assets |
||
| Cash and cash equivalents |
$ 168,512 |
$ 270,265 |
| Accounts receivable and unbilled revenues, net |
374,932 |
344,322 |
| Available-for-sale investment and mortgage-related securities |
664,051 |
624,331 |
| Investment in stock of Federal Home Loan Bank of Seattle |
96,893 |
97,764 |
| Loans receivable held for investment, net |
3,705,748 |
3,642,818 |
| Loans held for sale, at lower of cost or fair value |
16,495 |
9,601 |
| Property, plant and equipment, net of accumulated depreciation of |
||
| $2,109,478 in 2012 and $2,049,821 in 2011 |
3,506,489 |
3,334,501 |
| Regulatory assets |
715,994 |
669,389 |
| Other |
573,523 |
519,296 |
| Goodwill |
82,190 |
82,190 |
| Total assets |
$ 9,904,827 |
$ 9,594,477 |
| Liabilities and shareholders' equity |
||
| Liabilities |
||
| Accounts payable |
$ 234,304 |
$ 216,176 |
| Interest and dividends payable |
27,907 |
25,041 |
| Deposit liabilities |
4,126,788 |
4,070,032 |
| Short-term borrowings—other than bank |
82,219 |
68,821 |
| Other bank borrowings |
211,219 |
233,229 |
| Long-term debt, net—other than bank |
1,429,869 |
1,340,070 |
| Deferred income taxes |
438,886 |
354,051 |
| Regulatory liabilities |
319,330 |
315,466 |
| Contributions in aid of construction |
387,863 |
356,203 |
| Retirement benefits liability |
497,388 |
530,410 |
| Other |
507,626 |
521,979 |
| Total liabilities |
8,263,399 |
8,031,478 |
| Preferred stock of subsidiaries - not subject to mandatory redemption |
34,293 |
34,293 |
| Shareholders' equity |
||
| Preferred stock, no par value, authorized 10,000,000 shares; issued: none |
- |
- |
| Common stock, no par value, authorized 200,000,000 shares; issued |
||
| and outstanding: 97,425,467 shares in 2012 and 96,038,328 shares in 2011 |
1,389,607 |
1,349,446 |
| Retained earnings |
233,218 |
198,397 |
| Accumulated other comprehensive loss, net of tax benefits |
(15,690) |
(19,137) |
| Total shareholders' equity |
1,607,135 |
1,528,706 |
| Total liabilities and shareholders' equity |
$ 9,904,827 |
$ 9,594,477 |
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
||
| Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries |
||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
||
| (Unaudited) |
||
| Nine months ended September 30 |
2012 |
2011 |
| (in thousands) |
||
| Cash flows from operating activities |
||
| Net income |
$ 126,239 |
$ 105,422 |
| Adjustments to reconcile net income to net cash provided by operating activities |
||
| Depreciation of property, plant and equipment |
112,946 |
111,516 |
| Other amortization |
4,811 |
14,552 |
| Provision for loan losses |
9,504 |
10,927 |
| Loans receivable originated and purchased, held for sale |
(304,289) |
(137,507) |
| Proceeds from sale of loans receivable, held for sale |
302,844 |
127,163 |
| Change in deferred income taxes |
82,582 |
60,957 |
| Change in excess tax benefits from share-based payment arrangements |
(65) |
(39) |
| Allowance for equity funds used during construction |
(5,548) |
(4,131) |
| Change in cash overdraft |
- |
(2,688) |
| Changes in assets and liabilities |
||
| Increase in accounts receivable and unbilled revenues, net |
(30,610) |
(75,905) |
| Increase in fuel oil stock |
(31,372) |
(4,592) |
| Decrease in accounts, interest and dividends payable |
(5,905) |
(57,746) |
| Change in prepaid and accrued income taxes and utility revenue taxes |
(5,121) |
40,418 |
| Contributions to defined benefit pension and other postretirement benefit plans |
(64,006) |
(56,395) |
| Change in other assets and liabilities |
(70,406) |
(30,863) |
| Net cash provided by operating activities |
121,604 |
101,089 |
| Cash flows from investing activities |
||
| Available-for-sale investment and mortgage-related securities purchased |
(146,794) |
(202,061) |
| Principal repayments on available-for-sale investment and mortgage-related securities |
104,310 |
283,931 |
| Proceeds from sale of available-for-sale investment and mortgage-related securities |
3,548 |
32,799 |
| Net increase in loans held for investment |
(75,982) |
(153,745) |
| Proceeds from sale of real estate acquired in settlement of loans |
9,659 |
5,298 |
| Capital expenditures |
(225,961) |
(148,107) |
| Contributions in aid of construction |
33,106 |
15,106 |
| Other |
865 |
(2,923) |
| Net cash used in investing activities |
(297,249) |
(169,702) |
| Cash flows from financing activities |
||
| Net increase in deposit liabilities |
56,756 |
87,429 |
| Net increase in short-term borrowings with original maturities of three months or less |
13,398 |
26,272 |
| Net increase (decrease) in retail repurchase agreements |
(22,011) |
614 |
| Proceeds from issuance of long-term debt |
457,000 |
125,000 |
| Repayment of long-term debt |
(368,500) |
(150,000) |
| Change in excess tax benefits from share-based payment arrangements |
65 |
39 |
| Net proceeds from issuance of common stock |
16,881 |
14,861 |
| Common stock dividends |
(71,966) |
(77,070) |
| Preferred stock dividends of subsidiaries |
(1,417) |
(1,417) |
| Other |
(6,314) |
(4,283) |
| Net cash provided by financing activities |
73,892 |
21,445 |
| Net decrease in cash and cash equivalents |
(101,753) |
(47,168) |
| Cash and cash equivalents, beginning of period |
270,265 |
330,651 |
| Cash and cash equivalents, end of period |
$ 168,512 |
$ 283,483 |
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
||
| Hawaiian Electric Company, Inc. (HECO) and Subsidiaries |
|||||||||
| CONSOLIDATED STATEMENTS OF INCOME |
|||||||||
| (Unaudited) |
Three months ended |
Nine months ended |
|||||||
| Sepember 30, |
Sepember 30, |
||||||||
| (dollars in thousands, except per barrel amounts) |
2012 |
2011 |
2012 |
2011 |
|||||
| Operating revenues |
$ 799,203 |
$ 818,907 |
$ 2,334,826 |
$2,190,860 |
|||||
| Operating expenses |
|||||||||
| Fuel oil |
327,173 |
352,475 |
986,076 |
925,476 |
|||||
| Purchased power |
186,699 |
188,484 |
539,840 |
508,179 |
|||||
| Other operation |
70,441 |
61,415 |
196,806 |
194,334 |
|||||
| Maintenance |
30,368 |
32,336 |
91,641 |
92,808 |
|||||
| Depreciation |
35,941 |
34,983 |
108,556 |
107,673 |
|||||
| Taxes, other than income taxes |
74,850 |
75,355 |
222,149 |
202,502 |
|||||
| Income taxes |
22,352 |
23,860 |
58,291 |
46,630 |
|||||
| Total operating expenses |
747,824 |
768,908 |
2,203,359 |
2,077,602 |
|||||
| Operating income |
51,379 |
49,999 |
131,467 |
113,258 |
|||||
| Other income |
|||||||||
| Allowance for equity funds used during construction |
1,611 |
1,570 |
5,548 |
4,131 |
|||||
| Other, net |
1,045 |
1,170 |
3,673 |
2,978 |
|||||
| Total other income |
2,656 |
2,740 |
9,221 |
7,109 |
|||||
| Interest and other charges |
|||||||||
| Interest on long-term debt |
14,694 |
14,383 |
44,400 |
43,149 |
|||||
| Amortization of net bond premium and expense |
870 |
767 |
2,276 |
2,316 |
|||||
| Other interest charges (credits) |
286 |
(210) |
(84) |
965 |
|||||
| Allowance for borrowed funds used during construction |
(688) |
(658) |
(2,451) |
(1,731) |
|||||
| Total interest and other charges |
15,162 |
14,282 |
44,141 |
44,699 |
|||||
| Net income |
38,873 |
38,457 |
96,547 |
75,668 |
|||||
| Preferred stock dividends of subsidiaries |
228 |
228 |
686 |
686 |
|||||
| Net income attributable to HECO |
38,645 |
38,229 |
95,861 |
74,982 |
|||||
| Preferred stock dividends of HECO |
270 |
270 |
810 |
810 |
|||||
| Net income for common stock |
$ 38,375 |
$ 37,959 |
$ 95,051 |
$ 74,172 |
|||||
| Comprehensive income attributable to common shareholder |
$ 38,452 |
$ 38,081 |
$ 95,280 |
$ 74,368 |
|||||
| OTHER ELECTRIC UTILITY INFORMATION |
|||||||||
| Kilowatthour sales (millions) |
|||||||||
| HECO |
1,796 |
1,866 |
5,205 |
5,444 |
|||||
| HELCO |
274 |
282 |
810 |
827 |
|||||
| MECO |
292 |
300 |
855 |
888 |
|||||
| 2,362 |
2,448 |
6,870 |
7,159 |
||||||
| Wet-bulb temperature (Oahu average; degrees Fahrenheit) |
70.8 |
71.5 |
68.7 |
70.0 |
|||||
| Cooling degree days (Oahu) |
1,419 |
1,504 |
3,430 |
3,681 |
|||||
| Average fuel oil cost per barrel |
$ 139.68 |
$ 135.66 |
$ 139.65 |
$ 120.13 |
|||||
| Twelve months ended |
|||||||||
| September 30 |
|||||||||
| Return on average common equity (%) (simple average) |
2012 |
2011 |
|||||||
| HECO |
9.40 |
6.04 |
|||||||
| HELCO |
7.53 |
9.93 |
|||||||
| MECO |
7.14 |
6.92 |
|||||||
| HECO Consolidated |
8.64 |
6.95 |
|||||||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year |
|||||||||
| Hawaiian Electric Company, Inc. (HECO) and Subsidiaries |
||
| CONSOLIDATED BALANCE SHEETS |
||
| (Unaudited) |
||
| September 30, |
December 31, |
|
| (dollars in thousands, except par value) |
2012 |
2011 |
| Assets |
||
| Utility plant, at cost |
||
| Land |
$ 51,544 |
$ 51,514 |
| Plant and equipment |
5,245,769 |
5,052,027 |
| Less accumulated depreciation |
(2,026,450) |
(1,966,894) |
| Construction in progress |
176,216 |
138,838 |
| Net utility plant |
3,447,079 |
3,275,485 |
| Current assets |
||
| Cash and cash equivalents |
15,722 |
48,806 |
| Customer accounts receivable, net |
226,933 |
183,328 |
| Accrued unbilled revenues, net |
132,090 |
137,826 |
| Other accounts receivable, net |
1,925 |
8,623 |
| Fuel oil stock, at average cost |
202,920 |
171,548 |
| Materials and supplies, at average cost |
50,493 |
43,188 |
| Prepayments and other |
64,006 |
36,667 |
| Regulatory assets |
25,103 |
20,283 |
| Total current assets |
719,192 |
650,269 |
| Other long-term assets |
||
| Regulatory assets |
690,891 |
649,106 |
| Unamortized debt expense |
10,786 |
12,786 |
| Other |
93,767 |
86,361 |
| Total other long-term assets |
795,444 |
748,253 |
| Total assets |
$ 4,961,715 |
$ 4,674,007 |
| Capitalization and liabilities |
||
| Capitalization |
||
| Common stock, $6 2/3 par value, authorized 50,000,000 shares; outstanding |
||
| 14,233,723 shares in 2012 and 2011 |
$ 94,911 |
$ 94,911 |
| Premium on capital stock |
426,921 |
426,921 |
| Retained earnings |
921,309 |
881,041 |
| Accumulated other comprehensive income (loss), net of income taxes |
197 |
(32) |
| Common stock equity |
1,443,338 |
1,402,841 |
| Cumulative preferred stock – not subject to mandatory redemption |
34,293 |
34,293 |
| Long-term debt, net |
1,147,869 |
1,000,570 |
| Total capitalization |
2,625,500 |
2,437,704 |
| Current liabilities |
||
| Short-term borrowings – nonaffiliates |
44,719 |
- |
| Current portion of long-term debt |
- |
57,500 |
| Accounts payable |
211,999 |
188,580 |
| Interest and preferred dividends payable |
22,458 |
19,483 |
| Taxes accrued |
235,302 |
230,076 |
| Other |
62,584 |
69,353 |
| Total current liabilities |
577,062 |
564,992 |
| Deferred credits and other liabilities |
||
| Deferred income taxes |
420,724 |
337,863 |
| Regulatory liabilities |
319,330 |
315,466 |
| Unamortized tax credits |
64,178 |
60,614 |
| Retirement benefits liability |
463,599 |
495,121 |
| Other |
103,459 |
106,044 |
| Total deferred credits and other liabilities |
1,371,290 |
1,315,108 |
| Contributions in aid of construction |
387,863 |
356,203 |
| Total capitalization and liabilities |
$ 4,961,715 |
$ 4,674,007 |
| This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
||
| Hawaiian Electric Company, Inc. (HECO) and Subsidiaries |
||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
||
| (Unaudited) |
||
| Nine months ended September 30 |
2012 |
2011 |
| (in thousands) |
||
| Cash flows from operating activities |
||
| Net income |
$ 96,547 |
$ 75,668 |
| Adjustments to reconcile net income to net cash provided by operating activities |
||
| Depreciation of property, plant and equipment |
108,556 |
107,673 |
| Other amortization |
4,074 |
12,694 |
| Change in deferred income taxes |
82,717 |
51,120 |
| Change in tax credits, net |
3,642 |
1,416 |
| Allowance for equity funds used during construction |
(5,548) |
(4,131) |
| Change in cash overdraft |
- |
(2,688) |
| Changes in assets and liabilities |
||
| Increase in accounts receivable |
(36,907) |
(42,966) |
| Decrease (increase) in accrued unbilled revenues |
5,736 |
(33,503) |
| Increase in fuel oil stock |
(31,372) |
(4,592) |
| Increase in materials and supplies |
(7,305) |
(5,280) |
| Increase in regulatory assets |
(57,793) |
(34,231) |
| Decrease in accounts payable |
(3,481) |
(59,526) |
| Change in prepaid and accrued income taxes and utility revenue taxes |
(20,665) |
44,498 |
| Contributions to defined benefit pension and other postretirement benefit plans |
(62,417) |
(55,235) |
| Change in other assets and liabilities |
4,228 |
9,551 |
| Net cash provided by operating activities |
80,012 |
60,468 |
| Cash flows from investing activities |
||
| Capital expenditures |
(220,970) |
(142,734) |
| Contributions in aid of construction |
33,106 |
15,106 |
| Other |
- |
77 |
| Net cash used in investing activities |
(187,864) |
(127,551) |
| Cash flows from financing activities |
||
| Common stock dividends |
(54,783) |
(52,919) |
| Preferred stock dividends of HECO and subsidiaries |
(1,496) |
(1,496) |
| Proceeds from issuance of long-term debt |
457,000 |
- |
| Repayment of long-term debt |
(368,500) |
- |
| Net increase in short-term borrowings from nonaffiliates and |
||
| affiliate with original maturities of three months or less |
44,719 |
12,498 |
| Other |
(2,172) |
(67) |
| Net cash provided by (used in) financing activities |
74,768 |
(41,984) |
| Net decrease in cash and cash equivalents |
(33,084) |
(109,067) |
| Cash and cash equivalents, beginning of the period |
48,806 |
122,936 |
| Cash and cash equivalents, end of period |
$ 15,722 |
$ 13,869 |
| This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and the consolidated financial statements and the notes thereto in HECO's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
||
| American Savings Bank, F.S.B. |
||||||||||
| STATEMENTS OF INCOME DATA |
||||||||||
| (Unaudited) |
Three months ended |
Nine months ended |
||||||||
| September 30, |
June 30, |
September 30, |
September 30, |
|||||||
| (in thousands) |
2012 |
2012 |
2011 |
2012 |
2011 |
|||||
| Interest income |
||||||||||
| Interest and fees on loans |
$ 43,880 |
$ 44,473 |
$ 46,240 |
$133,241 |
$ 137,985 |
|||||
| Interest on investment and mortgage-related securities |
3,432 |
3,297 |
3,654 |
10,534 |
11,216 |
|||||
| Total interest income |
47,312 |
47,770 |
49,894 |
143,775 |
149,201 |
|||||
| Interest expense |
||||||||||
| Interest on deposit liabilities |
1,540 |
1,696 |
2,166 |
5,015 |
7,146 |
|||||
| Interest on other borrowings |
1,201 |
1,214 |
1,375 |
3,676 |
4,124 |
|||||
| Total interest expense |
2,741 |
2,910 |
3,541 |
8,691 |
11,270 |
|||||
| Net interest income |
44,571 |
44,860 |
46,353 |
135,084 |
137,931 |
|||||
| Provision for loan losses |
3,580 |
2,378 |
3,822 |
9,504 |
10,927 |
|||||
| Net interest income after provision for loan losses |
40,991 |
42,482 |
42,531 |
125,580 |
127,004 |
|||||
| Noninterest income |
||||||||||
| Fees from other financial services |
7,674 |
7,463 |
7,219 |
22,474 |
21,405 |
|||||
| Fee income on deposit liabilities |
4,527 |
4,322 |
4,492 |
13,127 |
13,540 |
|||||
| Fee income on other financial products |
1,660 |
1,532 |
1,806 |
4,741 |
5,340 |
|||||
| Gain on sale of loans |
4,077 |
2,185 |
1,092 |
8,297 |
2,268 |
|||||
| Other income |
1,346 |
1,449 |
1,597 |
4,155 |
5,977 |
|||||
| Total noninterest income |
19,284 |
16,951 |
16,206 |
52,794 |
48,530 |
|||||
| Noninterest expense |
||||||||||
| Compensation and employee benefits |
18,684 |
18,696 |
17,646 |
56,026 |
53,317 |
|||||
| Occupancy |
4,400 |
4,241 |
4,313 |
12,866 |
12,841 |
|||||
| Data processing |
2,644 |
2,489 |
2,451 |
7,244 |
6,479 |
|||||
| Services |
3,062 |
2,221 |
1,686 |
7,066 |
5,406 |
|||||
| Equipment |
1,762 |
1,807 |
1,712 |
5,299 |
5,141 |
|||||
| Other expense |
8,096 |
8,106 |
7,763 |
22,909 |
23,651 |
|||||
| Total noninterest expense |
38,648 |
37,560 |
35,571 |
111,410 |
106,835 |
|||||
| Income before income taxes |
21,627 |
21,873 |
23,166 |
66,964 |
68,699 |
|||||
| Income taxes |
7,419 |
7,684 |
7,709 |
22,690 |
24,196 |
|||||
| Net income |
$ 14,208 |
$ 14,189 |
$ 15,457 |
$ 44,274 |
$ 44,503 |
|||||
| Comprehensive income |
$ 15,517 |
$ 15,456 |
$ 18,335 |
$ 46,872 |
$ 49,360 |
|||||
| OTHER BANK INFORMATION (annualized %, except as of period end) |
||||||||||
| Return on average assets |
1.15 |
1.15 |
1.26 |
1.19 |
1.22 |
|||||
| Return on average equity |
11.24 |
11.35 |
12.32 |
11.81 |
11.91 |
|||||
| Return on average tangible common equity |
13.41 |
13.58 |
14.73 |
14.14 |
14.26 |
|||||
| Net interest margin |
3.92 |
3.97 |
4.11 |
3.98 |
4.11 |
|||||
| Net charge-offs to average loans outstanding |
0.35 |
0.19 |
0.54 |
0.27 |
0.50 |
|||||
| Efficiency ratio |
60 |
60 |
56 |
59 |
57 |
|||||
| As of period end |
||||||||||
| Nonperforming assets to loans outstanding and real estate owned ** |
1.73 |
1.84 |
1.94 |
|||||||
| Allowance for loan losses to loans outstanding |
1.06 |
1.06 |
1.04 |
|||||||
| Leverage ratio ** |
9.3 |
9.2 |
9.1 |
|||||||
| Total risk-based capital ratio ** |
12.9 |
12.8 |
13.0 |
|||||||
| Tangible common equity to total assets |
8.72 |
8.58 |
8.69 |
|||||||
| ** Regulatory basis |
||||||||||
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
||||||||||
| American Savings Bank, F.S.B. |
|||
| BALANCE SHEETS DATA |
|||
| (Unaudited) |
|||
| September 30, |
December 31, |
||
| (in thousands) |
2012 |
2011 |
|
| Assets |
|||
| Cash and cash equivalents |
$ 152,474 |
$ 219,678 |
|
| Available-for-sale investment and mortgage-related securities |
664,051 |
624,331 |
|
| Investment in stock of Federal Home Loan Bank of Seattle |
96,893 |
97,764 |
|
| Loans receivable held for investment |
3,745,558 |
3,680,724 |
|
| Allowance for loan losses |
(39,810) |
(37,906) |
|
| Loans receivable held for investment, net |
3,705,748 |
3,642,818 |
|
| Loans held for sale, at lower of cost or fair value |
16,495 |
9,601 |
|
| Other |
234,999 |
233,592 |
|
| Goodwill |
82,190 |
82,190 |
|
| Total assets |
$ 4,952,850 |
$ 4,909,974 |
|
| Liabilities and shareholder's equity |
|||
| Deposit liabilities–noninterest-bearing |
$ 1,097,809 |
$ 993,828 |
|
| Deposit liabilities–interest-bearing |
3,028,979 |
3,076,204 |
|
| Other borrowings |
211,219 |
233,229 |
|
| Other |
107,960 |
118,078 |
|
| Total liabilities |
4,445,967 |
4,421,339 |
|
| Common stock |
333,256 |
331,880 |
|
| Retained earnings |
180,400 |
166,126 |
|
| Accumulated other comprehensive loss, net of tax benefits |
(6,773) |
(9,371) |
|
| Total shareholder's equity |
506,883 |
488,635 |
|
| Total liabilities and shareholder's equity |
$ 4,952,850 |
$ 4,909,974 |
|
| This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2011 and HEI's Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 (when filed), as updated by SEC Forms 8-K. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. |
|||
| Contact: |
Shelee M.T. Kimura |
|
| Manager, Investor Relations & |
Telephone: (808) 543-7384 |
|
| Strategic Planning |
E-mail: [email protected] |
(Logo: http://photos.prnewswire.com/prnh/20110411/LA80136LOGO)
SOURCE Hawaiian Electric Industries, Inc.
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