ST. LOUIS, Feb. 1, 2017 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported operating results for its fiscal 2017
first quarter ended December 31,
2016. Highlights include:
- First quarter fiscal 2017 diluted earnings per share of
$0.99, compared to $1.08 in fiscal 2016
- Quarterly net economic earnings* (NEE) per share of
$1.04 equal to prior year results as
growth in earnings across both of our businesses was offset by an
increase in shares
- On target for net economic earnings per share of $3.50 - $3.60 for the full fiscal year
"We are off to a good start in fiscal 2017, building on our
strong performance last year. We delivered solid operating and
financial performance in the first quarter in warmer than normal
weather across our footprint. We remain on track to hit our
earnings per share target for the year," said Suzanne Sitherwood, president and chief
executive officer of Spire. "We continued to deliver on our
strategy and do what we said we would do. This includes investing
in infrastructure upgrades and other organic growth initiatives,
and progressing with our Spire STL Pipeline project. At the same
time, we are working to complete the integration of our newest gas
utilities and the transition of all of our utilities to Spire late
this summer."
First Quarter
Results
|
Three months ended
December 31,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
51.8
|
|
|
$
|
50.0
|
|
|
$
|
1.13
|
|
|
$
|
1.15
|
|
|
Gas
Marketing
|
1.4
|
|
|
(0.3)
|
|
|
0.03
|
|
|
—
|
|
|
Other
|
(5.7)
|
|
|
(4.6)
|
|
|
(0.12)
|
|
|
(0.11)
|
|
|
|
Total
|
$
|
47.5
|
|
|
$
|
45.1
|
|
|
$
|
1.04
|
|
|
$
|
1.04
|
|
|
Acquisition-related
pre-tax costs
|
(0.1)
|
|
|
(1.3)
|
|
|
—
|
|
|
(0.03)
|
|
|
Fair value
adjustments, pre-tax
|
(3.6)
|
|
|
4.4
|
|
|
(0.08)
|
|
|
0.10
|
|
|
Income tax effect of
adjustments
|
1.4
|
|
|
(1.3)
|
|
|
0.03
|
|
|
(0.03)
|
|
Net
Income
|
$
|
45.2
|
|
|
$
|
46.9
|
|
|
$
|
0.99
|
|
|
$
|
1.08
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding in Millions
|
|
|
|
|
45.7
|
|
|
43.4
|
|
* Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For the three months ended December 31,
2016, the first quarter of our fiscal year, we reported
consolidated net income of $45.2
million (or $0.99 per diluted
share) compared to $46.9 million (or
$1.08 per diluted share) in the prior
year period. Net economic earnings (NEE) for the first quarter of
fiscal 2017 were $47.5 million, up
from $45.1 million in 2016,
reflecting higher earnings in Gas Utility and Gas Marketing,
slightly offset by higher costs in Other. NEE excludes from net
income the effect of unrealized gains and losses on energy-related
derivatives. It also excludes the impacts of acquisition,
divestiture and restructuring activities in the fiscal year in
which they occur, including expenses, financing impacts and
operating results in fiscal 2016 associated with the acquisition of
EnergySouth (Mobile Gas and Willmut Gas) as well as overall
integration activities. While NEE increased, NEE per share was
$1.04 in both periods reflecting a 5
percent increase in average shares outstanding.
First quarter fiscal 2017 results were impacted by milder winter
weather compared to normal and by timing and variability of degree
days in the areas where our businesses operate. In general, these
conditions reduce demand and operating margin (non-GAAP; see
"Operating Margin and Reconciliation to GAAP"), and benefit certain
weather-sensitive expenses, for our gas utilities. For Laclede Gas
and Missouri Gas Energy (MGE, collectively our Missouri Utilities),
first quarter weather was approximately 16 percent warmer than
normal this year, compared to 27 percent warmer than normal a year
ago. For Alagasco, first quarter temperatures were 29 percent
warmer than normal this year and 37 percent warmer than normal last
year.
Generally, volatility in commodity prices and demand creates
opportunities for our non-regulated businesses, as discussed under
Gas Marketing below.
Gas Utility
The Gas Utility segment includes the regulated gas distribution
operations of our five gas utilities - Alagasco, Laclede Gas, MGE,
Mobile Gas and Willmut Gas. First quarter net income was
$51.7 million for fiscal 2017,
compared to $49.3 million for the
same period a year ago. NEE for the segment was $51.8 million, up from $50.0 million in the prior year. The increase in
earnings was driven by an increase in operating margin partially
offset by higher other operation and maintenance expenses, both of
which reflect the addition of EnergySouth.
Operating margin increased by $23.1
million due to the inclusion of EnergySouth ($19.4 million), higher Infrastructure System
Replacement Surcharge (ISRS) revenues for the Missouri Utilities
($3.3 million) and lower net
regulatory adjustments for Alagasco ($1.2
million). Gas utility margin was constrained by mild weather
in both periods as noted above. The negative impact on margin of
all other variances, including weather, was $0.8 million.
Other operation and maintenance expenses of $99.4 million for the quarter were up
$7.8 million, reflecting the
inclusion of EnergySouth. Excluding EnergySouth expenses, other
operation and maintenance expenses were lower by approximately
$1.0 million driven by a decrease in
employee-related costs and integration costs, partially offset by
higher professional fees. Depreciation and amortization expenses
increased by $4.2 million from last
year, with $2.7 million from the
inclusion of EnergySouth and the remainder reflecting higher
capital investment including infrastructure upgrades for the other
utilities. Tax other than income taxes increased by $5.2 million reflecting the addition of
EnergySouth and an increase in property taxes.
Gas Marketing
First quarter fiscal 2017, the Gas Marketing segment reported a
loss of $0.8 million compared to net
income of $2.3 million in the
prior-year period. Removing fair value adjustments in both periods,
NEE increased to $1.4 million
from a loss of $0.3 million in the
prior year, driven mainly by higher volumes and an increase in
trading and storage optimization.
Other
Other non-utility operations and corporate costs were
$5.7 million in the first quarter of
2017, up from $4.7 million in the
year-ago period. On an NEE basis, first quarter costs were
$5.7 million in 2017 and $4.6 million a year ago. A significant portion of
these costs are related to interest expense on corporate debt.
Interest expense increased period-over-period reflecting the
additional debt from the acquisition of EnergySouth as well as
higher interest costs on floating-rate debt.
Balance Sheets and Cash Flow
We continue to maintain a strong capital structure with ample
liquidity. At December 31, 2016, we
had a long-term capitalization of 50.2 percent equity, compared to
49.8 percent equity at September 30,
2016. Short-term borrowings outstanding at December 31, 2016 were $506.4 million compared to $377.1 million a year ago. These levels of
short-term debt are in line with our typical seasonal borrowing
needs, with the increase reflecting higher commodity costs and the
addition of EnergySouth. We have significant capacity to meet our
anticipated capital needs during the winter heating season.
On December 14, 2016, Spire,
Laclede Gas and Alagasco entered into a new syndicated revolving
credit facility under a loan agreement with a group of 11 banks,
with an aggregate credit commitment of $975
million. The loan agreement replaces Spire's, Laclede Gas'
and Alagasco's existing loan agreements which totaled $750 million. On December
21, 2016, Spire established a commercial paper program
backed by the new line of credit for the issuance of up to
$975 million of short-term, unsecured
commercial paper notes.
Net cash provided by operating activities was $10.3 million for the quarter ended December 31, 2016, compared to $33.5 million for the first quarter a year ago.
The decrease reflects a net decrease in working capital, partially
offset by the timing of collections of gas costs under purchased
gas cost riders in Missouri and
Alabama.
Capital expenditures for fiscal 2016 were $89.3 million, up from $62.4 million in the prior year. The increase was
driven by increased investment in infrastructure upgrades for our
utilities and the addition of EnergySouth.
For additional details on Spire's results for the first quarter
of fiscal 2017, 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
On January 26, 2017, we filed a
certificate application with the Federal Energy Regulatory
Commission (FERC) seeking approval for our Spire STL Pipeline, an
approximately 70-mile natural gas 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.
Under the terms of a precedent agreement with Laclede Gas, executed
on January 25, Laclede Gas will be a
foundation shipper with a contractual commitment of 350 MMcf/d out
of the total capacity of 400 MMcf/d. Our plans continue to reflect
an expected fiscal 2019 in-service date. The estimated cost of the
project remains $190 - $210 million.
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) in late October 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 were reviewed by APSC and new rates were effective
December 1, 2016.
Missouri
Effective January 28, the Missouri
Public Service Commission (MoPSC) approved increases in annual ISRS
revenues of $4.5 million for Laclede
Gas and $3.2 million for MGE. The
additional amounts bring the annual ISRS run rate for our Missouri
Utilities to $43.0 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 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, any resulting change in
rates would be anticipated in fiscal 2018.
Earnings Guidance and Outlook
We re-affirm our fiscal 2017 NEE guidance of $3.50 - $3.60 per fully diluted share and our
annual long-term NEE per share growth target of 4 - 6 percent.
We continue to anticipate 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.
Expected Spire capital expenditures for fiscal 2017 remain
approximately $410 million, with
investment in our gas utilities being approximately $370 million. More than 70 percent of our fiscal
2017 utility capital spend is expected to be recovered in rates
with minimal lag under regulatory mechanisms in Missouri, Alabama and Mississippi. Our 5-year (2016-2020) capital
spending plan of at least $2.0
billion is also re-affirmed.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2017 first quarter financial results. To access the
call, please dial the applicable number approximately 5-10 minutes
prior to the start time.
Date and
Time:
|
Wednesday, February
1
|
|
|
8 a.m. CT (9 a.m.
ET)
|
|
|
|
|
|
Phone
Numbers:
|
U.S. and
Canada:
|
844-824-3832
|
|
|
International:
|
412-317-5142
|
|
|
|
|
|
|
|
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 February 1 to March 1 by dialing 877-344-7529
(U.S.), 855-669-9658 (Canada), or
412-317-0088 (international). The replay access code is 10098937. 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 - Alagasco, Laclede Gas, Missouri
Gas Energy, Mobile Gas and Willmut Gas. Our non-utility businesses,
Spire Marketing Inc. 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-Q for the
quarter ended December 31, 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 acquisitions and integration. 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.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
Consolidated
Statements of Income - Unaudited
|
Spire
Inc.
|
(In Millions,
except per share amounts)
|
|
|
|
|
|
Three months
ended
December 31,
|
|
2016
|
|
2015
|
|
|
|
|
Operating
Revenues:
|
|
|
|
|
Gas
Utility
|
$
|
472.3
|
|
|
$
|
398.8
|
|
|
Gas Marketing and
other
|
22.8
|
|
|
0.6
|
|
|
Total
Operating Revenues
|
495.1
|
|
|
399.4
|
|
Operating
Expenses:
|
|
|
|
|
Gas
Utility
|
|
|
|
|
Natural and
propane gas
|
193.8
|
|
|
148.5
|
|
|
Other
operation and maintenance expenses
|
99.4
|
|
|
91.6
|
|
|
Depreciation
and amortization
|
37.7
|
|
|
33.5
|
|
|
Taxes, other
than income taxes
|
33.4
|
|
|
28.2
|
|
|
Total
Gas Utility Operating Expenses
|
364.3
|
|
|
301.8
|
|
|
Gas Marketing and
other
|
41.7
|
|
|
10.6
|
|
|
Total
Operating Expenses
|
406.0
|
|
|
312.4
|
|
Operating
Income
|
89.1
|
|
|
87.0
|
|
Other Income -
Net
|
0.5
|
|
|
1.4
|
|
Interest
Charges:
|
|
|
|
|
Interest on long-term
debt
|
19.1
|
|
|
16.9
|
|
|
Other interest
charges
|
3.0
|
|
|
2.1
|
|
|
Total
Interest Charges
|
22.1
|
|
|
19.0
|
|
Income Before Income
Taxes
|
67.5
|
|
|
69.4
|
|
Income Tax
Expense
|
22.3
|
|
|
22.5
|
|
Net Income
|
$
|
45.2
|
|
|
$
|
46.9
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding:
|
|
|
|
Basic
|
45.5
|
|
|
43.2
|
|
|
Diluted
|
45.7
|
|
|
43.4
|
|
|
|
|
|
|
Basic Earnings Per
Share of Common Stock
|
$
|
0.99
|
|
|
$
|
1.08
|
|
Diluted Earnings Per
Share of Common Stock
|
$
|
0.99
|
|
|
$
|
1.08
|
|
Dividends Declared
Per Share of Common Stock
|
$
|
0.53
|
|
|
$
|
0.49
|
|
Condensed
Consolidated Balance Sheets - Unaudited
|
Spire
Inc.
|
(In
Millions)
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
|
Utility
Plant
|
$
|
4,893.2
|
|
|
$
|
4,793.6
|
|
|
$
|
4,220.6
|
|
Less:
Accumulated depreciation and amortization
|
1,561.4
|
|
|
1,506.4
|
|
|
1,267.3
|
|
Net Utility
Plant
|
3,331.8
|
|
|
3,287.2
|
|
|
2,953.3
|
|
Non-utility
Property
|
19.7
|
|
|
13.7
|
|
|
13.9
|
|
Goodwill
|
1,161.4
|
|
|
1,164.9
|
|
|
946.0
|
|
Other
Investments
|
61.9
|
|
|
62.1
|
|
|
60.8
|
|
Other
Property and Investments
|
1,243.0
|
|
|
1,240.7
|
|
|
1,020.7
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
10.6
|
|
|
5.2
|
|
|
4.6
|
|
Accounts receivable
(net of allowance for doubtful accounts)
|
422.7
|
|
|
220.7
|
|
|
297.5
|
|
Delayed customer
billings
|
5.3
|
|
|
1.6
|
|
|
8.7
|
|
Inventories
|
190.5
|
|
|
202.3
|
|
|
203.5
|
|
Other
|
186.5
|
|
|
139.8
|
|
|
121.7
|
|
Total Current
Assets
|
815.6
|
|
|
569.6
|
|
|
636.0
|
|
Regulatory Assets and
Other Deferred Charges
|
919.7
|
|
|
966.9
|
|
|
788.8
|
|
Total
Assets
|
$
|
6,310.1
|
|
|
$
|
6,064.4
|
|
|
$
|
5,398.8
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
Common stock and
paid-in capital
|
$
|
1,221.4
|
|
|
$
|
1,221.5
|
|
|
$
|
1,082.1
|
|
Retained
earnings
|
572.1
|
|
|
550.9
|
|
|
519.9
|
|
Accumulated other
comprehensive income (loss)
|
3.2
|
|
|
(4.2)
|
|
|
(1.7)
|
|
Total
Common Stock Equity
|
1,796.7
|
|
|
1,768.2
|
|
|
1,600.3
|
|
Long-term
debt
|
1,821.3
|
|
|
1,820.7
|
|
|
1,838.9
|
|
Total
Capitalization
|
3,618.0
|
|
|
3,588.9
|
|
|
3,439.2
|
|
Current
Liabilities:
|
|
|
|
|
|
Current portion of
long-term debt
|
250.0
|
|
|
250.0
|
|
|
—
|
|
Notes
payable
|
506.4
|
|
|
398.7
|
|
|
377.1
|
|
Accounts
payable
|
273.8
|
|
|
210.9
|
|
|
159.5
|
|
Advance customer
billings
|
60.2
|
|
|
70.2
|
|
|
59.3
|
|
Accrued liabilities
and other
|
251.8
|
|
|
231.5
|
|
|
251.6
|
|
Total
Current Liabilities
|
1,342.2
|
|
|
1,161.3
|
|
|
847.5
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
Deferred income
taxes
|
636.5
|
|
|
607.3
|
|
|
495.3
|
|
Pension and
postretirement benefit costs
|
296.3
|
|
|
303.7
|
|
|
250.7
|
|
Asset retirement
obligations
|
208.7
|
|
|
206.4
|
|
|
161.0
|
|
Regulatory
liabilities
|
132.1
|
|
|
130.7
|
|
|
129.1
|
|
Other
|
76.3
|
|
|
66.1
|
|
|
76.0
|
|
Total
Deferred Credits and Other Liabilities
|
1,349.9
|
|
|
1,314.2
|
|
|
1,112.1
|
|
Total Capitalization
and Liabilities
|
$
|
6,310.1
|
|
|
$
|
6,064.4
|
|
|
$
|
5,398.8
|
|
Condensed
Consolidated Statements of Cash Flow - Unaudited
|
Spire
Inc.
|
(In
Millions)
|
|
|
|
Three months
ended
December 31,
|
|
2016
|
|
2015
|
Operating
Activities:
|
|
|
|
Net Income
|
$
|
45.2
|
|
|
$
|
46.9
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization, and accretion
|
37.8
|
|
|
33.7
|
|
Deferred income taxes
and investment tax credits
|
22.1
|
|
|
22.4
|
|
Changes in assets and
liabilities
|
1.7
|
|
|
0.9
|
|
Other
|
(96.5)
|
|
|
(70.4)
|
|
Net cash provided by
operating activities
|
10.3
|
|
|
33.5
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(89.3)
|
|
|
(62.4)
|
|
Acquisition
activity
|
3.8
|
|
|
—
|
|
Other
|
(0.4)
|
|
|
(0.4)
|
|
Net cash used in
investing activities
|
(85.9)
|
|
|
(62.8)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
Repayment of long-term
debt
|
—
|
|
|
(80.0)
|
|
Issuance of long-term
debt
|
—
|
|
|
80.0
|
|
Issuance of short-term
debt - net
|
107.7
|
|
|
39.1
|
|
Issuance of common
stock
|
0.1
|
|
|
1.1
|
|
Dividends
paid
|
(22.8)
|
|
|
(19.9)
|
|
Other
|
(4.0)
|
|
|
(0.2)
|
|
Net cash provided by
financing activities
|
81.0
|
|
|
20.1
|
|
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
5.4
|
|
|
(9.2)
|
|
Cash and Cash
Equivalents at Beginning of Period
|
5.2
|
|
|
13.8
|
|
Cash and Cash
Equivalents at End of Period
|
$
|
10.6
|
|
|
$
|
4.6
|
|
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
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
51.7
|
|
|
$
|
(0.8)
|
|
|
$
|
(5.7)
|
|
|
$
|
45.2
|
|
|
$
|
0.99
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
—
|
|
|
3.8
|
|
|
—
|
|
|
3.8
|
|
|
0.08
|
|
|
|
|
Lower of cost or
market inventory adjustments
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
|
Income tax effect of
adjustments (1)
|
—
|
|
|
(1.4)
|
|
|
—
|
|
|
(1.4)
|
|
|
(0.03)
|
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
51.8
|
|
|
$
|
1.4
|
|
|
$
|
(5.7)
|
|
|
$
|
47.5
|
|
|
$
|
1.04
|
|
|
|
|
Diluted EPS
(GAAP)
|
1.13
|
|
|
(0.02)
|
|
|
(0.12)
|
|
|
0.99
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
1.13
|
|
|
0.03
|
|
|
(0.12)
|
|
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
49.3
|
|
|
$
|
2.3
|
|
|
$
|
(4.7)
|
|
|
$
|
46.9
|
|
|
$
|
1.08
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
energy-related derivatives
|
(0.1)
|
|
|
(4.8)
|
|
|
—
|
|
|
(4.9)
|
|
|
(0.11)
|
|
|
|
|
Lower of cost or
market inventory adjustments
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
0.01
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
1.2
|
|
|
—
|
|
|
0.1
|
|
|
1.3
|
|
|
0.03
|
|
|
|
Income tax effect of
adjustments (1)
|
(0.4)
|
|
|
1.7
|
|
|
—
|
|
|
1.3
|
|
|
0.03
|
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
50.0
|
|
|
$
|
(0.3)
|
|
|
$
|
(4.6)
|
|
|
$
|
45.1
|
|
|
$
|
1.04
|
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
1.14
|
|
|
$
|
0.05
|
|
|
$
|
(0.11)
|
|
|
$
|
1.08
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
1.15
|
|
|
$
|
—
|
|
|
$
|
(0.11)
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
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
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
476.7
|
|
|
$
|
21.7
|
|
|
$
|
1.8
|
|
|
$
|
(5.1)
|
|
|
$
|
495.1
|
|
|
Natural and propane
gas expense
|
214.5
|
|
|
21.5
|
|
|
—
|
|
|
(3.9)
|
|
|
232.1
|
|
|
Gross receipts tax
expense
|
19.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.0
|
|
|
Operating margin
(non-GAAP)
|
243.2
|
|
|
0.2
|
|
|
1.8
|
|
|
(1.2)
|
|
|
244.0
|
|
|
Depreciation and
amortization
|
37.7
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
37.8
|
|
|
Other operating
expenses
|
114.9
|
|
|
1.5
|
|
|
1.9
|
|
|
(1.2)
|
|
|
117.1
|
|
|
Operating income
(loss) (GAAP)
|
$
|
90.6
|
|
|
$
|
(1.3)
|
|
|
$
|
(0.2)
|
|
|
$
|
—
|
|
|
$
|
89.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
399.5
|
|
|
$
|
12.8
|
|
|
$
|
0.8
|
|
|
$
|
(13.7)
|
|
|
$
|
399.4
|
|
|
Natural and propane
gas expense
|
161.9
|
|
|
7.4
|
|
|
—
|
|
|
(13.4)
|
|
|
155.9
|
|
|
Gross receipts tax
expense
|
17.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.5
|
|
|
Operating margin
(non-GAAP)
|
220.1
|
|
|
5.4
|
|
|
0.8
|
|
|
(0.3)
|
|
|
226.0
|
|
|
Depreciation and
amortization
|
33.5
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
33.7
|
|
|
Other operating
expenses
|
102.6
|
|
|
1.6
|
|
|
1.4
|
|
|
(0.3)
|
|
|
105.3
|
|
|
Operating income
(loss) (GAAP)
|
$
|
84.0
|
|
|
$
|
3.8
|
|
|
$
|
(0.8)
|
|
|
$
|
—
|
|
|
$
|
87.0
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spire-reports-first-quarter-results-300400111.html
SOURCE Spire Inc.