ST. LOUIS, Nov. 15, 2017 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal 2017 full year and
fourth quarter ended September 30.
Highlights include:
- Fiscal 2017 diluted earnings per share of $3.43, up from $3.24 in fiscal 2016
- Net economic earnings* per share grew to $3.56, up $0.14
over prior year
- Dividend increased by 7.1 percent to an annualized $2.25 per share
"Fiscal 2017 was a year of significant achievements as we
delivered on our plans across the entire company. We achieved
earnings per share in line with our growth expectations, grew the
number of homes and businesses we serve, increased our investment
in infrastructure, and further improved our operating performance.
At the same time we rolled out technology enhancements to provide
an even better service experience for our customers," said
Suzanne Sitherwood, president and
chief executive officer of Spire. "We also successfully completed
the transition of our five gas companies to Spire, aligning them
under one name, representing a shared promise to bring people and
energy together in ways that enrich lives, support the communities
we serve and add value for shareholders."
Fiscal 2017
Results
|
Year ended
September 30,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
181.5
|
|
|
$
|
160.3
|
|
|
$
|
3.86
|
|
|
$
|
3.67
|
|
|
Gas
Marketing
|
6.8
|
|
|
6.4
|
|
|
0.14
|
|
|
0.15
|
|
|
Other
|
(20.7)
|
|
|
(17.6)
|
|
|
(0.44)
|
|
|
(0.40)
|
|
|
|
|
Total
|
$
|
167.6
|
|
|
$
|
149.1
|
|
|
$
|
3.56
|
|
|
$
|
3.42
|
|
|
|
Acquisition-related
pre-tax costs
|
(4.0)
|
|
|
(9.2)
|
|
|
(0.09)
|
|
|
(0.21)
|
|
|
Fair value
adjustments, pre-tax
|
(5.7)
|
|
|
1.5
|
|
|
(0.12)
|
|
|
0.03
|
|
|
Income tax effect of
adjustments
|
3.7
|
|
|
2.8
|
|
|
0.08
|
|
|
0.06
|
|
|
Acquisition-related
shares adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
161.6
|
|
|
$
|
144.2
|
|
|
$
|
3.43
|
|
|
$
|
3.24
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding in Millions
|
|
|
|
|
47.0
|
|
|
44.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For fiscal 2017, we reported consolidated net income of
$161.6 million (or $3.43 per diluted share) compared to $144.2 million (or $3.24 per diluted share) for the prior year. Net
economic earnings (NEE) for the year were $167.6 million (or $3.56 per share) up from $149.1 million (or $3.42 per share) a year ago. This 4.1 percent
increase in earnings per share reflects higher Gas Utility results
driven by growth in Missouri and
Alabama, and higher Gas Marketing
results, partially offset by modestly higher corporate costs.
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.
Per share results were impacted by a 6.1 percent increase in
average shares outstanding reflecting equity issuance in
May 2016 in connection with the
financing of the EnergySouth acquisition and in April 2017 upon the conversion of equity
units.
Gas Utility
The Gas Utility segment includes the regulated gas distribution
operations of our five utilities across Alabama, Mississippi and Missouri. Effective September 25, 2017, all of our utilities
transitioned to the Spire name. As a result, Laclede Gas and MGE
are now Spire Missouri East and Spire Missouri West, respectively
(collectively Spire Missouri), Alagasco is now Spire Alabama, and
the EnergySouth entities are now Spire Gulf and Spire Mississippi
(formerly Mobile Gas and Willmut Gas, respectively).
For fiscal 2017, Gas Utility net income was $180.5 million compared to $159.0 million in the prior year. Segment NEE for
the year was $181.5 million, up from
$160.3 million in 2016, reflecting
the addition of EnergySouth and improved results from Spire
Missouri and Spire Alabama despite lower demand from warmer weather
than a year ago.
Contribution margin (non-GAAP; see "Contribution Margin and
Reconciliation to GAAP") was $939.0
million, an increase of $94.6
million over prior year, including $66.6 million from the addition of EnergySouth.
Winter weather was warmer than in the prior year, which reduced
margin by $8.6 million. This was more
than offset by $19.2 million in lower
regulatory adjustments to revenues and higher benefit sharing under
the Cost Containment Measure for Spire Alabama, and $14.2 million higher Infrastructure System
Replacement Surcharge (ISRS) revenues at Spire Missouri.
Operation and maintenance (O&M) expenses of $405.0 million were up $27.5 million. Excluding $33.5 million in operating costs associated with
EnergySouth, O&M expenses were $6.0
million lower in fiscal 2017. The lower costs were largely
due to weather during the heating season being warmer compared to
last year, which resulted in lower employee-related costs across
our other utilities. Depreciation and amortization rose by
$16.6 million, with $10.0 million attributable to the addition of
EnergySouth, and the remainder reflecting increased capital
investment including infrastructure upgrades at Spire Missouri and
Spire Alabama.
Gas Marketing
The Gas Marketing segment includes the results of Spire
Marketing, 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 $3.4
million for fiscal 2017, down from $7.1 million a year ago, principally due to
year-over-year changes in fair value adjustments. Removing fair
value adjustments in both periods, NEE was $6.8 million, up 6 percent from $6.4 million in the prior year, reflecting
favorable wholesale trading volumes and storage optimization.
Other
Other non-utility operations and corporate costs mainly consist
of interest expense associated with acquisition-related debt and
corporate borrowings. These costs were $22.3
million for fiscal 2017 compared to $21.9 million for the prior year.
Quarterly
Results
|
Three months ended
September 30,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
(5.8)
|
|
|
$
|
(10.2)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.23)
|
|
|
Gas
Marketing
|
3.1
|
|
|
1.9
|
|
|
0.06
|
|
|
0.04
|
|
|
Other
|
(7.8)
|
|
|
(5.8)
|
|
|
(0.16)
|
|
|
(0.13)
|
|
|
|
|
Total
|
$
|
(10.5)
|
|
|
$
|
(14.1)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.32)
|
|
|
|
Acquisition-related
pre-tax costs
|
(1.9)
|
|
|
(4.1)
|
|
|
(0.04)
|
|
|
(0.09)
|
|
|
Fair value
adjustments, pre-tax
|
(2.7)
|
|
|
4.1
|
|
|
(0.06)
|
|
|
0.09
|
|
|
Income tax effect of
adjustments
|
1.8
|
|
|
(0.1)
|
|
|
0.04
|
|
|
—
|
|
|
Acquisition-related
shares adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Net
Loss
|
$
|
(13.3)
|
|
|
$
|
(14.2)
|
|
|
$
|
(0.28)
|
|
|
$
|
(0.31)
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding in Millions
|
|
|
|
|
48.3
|
|
|
45.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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, we
typically report a loss in our fiscal fourth quarter ended
September 30. For fiscal 2017, we
reported a consolidated net loss for the quarter of $13.3 million ($0.28 per share) compared to a loss of
$14.2 million ($0.31 per share) in the prior-year period. On an
NEE basis, we reported a loss of $10.5
million ($0.22 per share)
compared to a loss of $14.1 million
($0.32 per share) a year ago. The
smaller loss reflects improved results in both Gas Utility and Gas
Marketing, partially offset by higher corporate costs.
Gas Utility
The Gas Utility segment reported a net loss of $6.5 million for the fourth quarter of fiscal
2017, compared to a loss of $10.6
million for the same period a year ago. The NEE loss for the
segment was $5.8 million compared to
$10.2 million in the prior year. The
improved results reflect an increase in contribution margin,
partially offset by higher expenses. Contribution margin increased
by $21.3 million with $7.1 million from the inclusion of EnergySouth
for the full fourth quarter in fiscal 2017. The remaining margin
increase was driven by favorable net regulatory adjustments for
Spire Alabama ($8.4 million) and
higher ISRS revenues for Spire Missouri ($3.4 million).
O&M expenses of $106.4 million
were up $6.6 million, with the
increase attributable to the full-quarter inclusion of EnergySouth.
Depreciation and amortization expenses increased by $4.1 million from last year reflecting
EnergySouth and higher capital investment across our other
utilities.
Gas Marketing
Fourth quarter fiscal 2017 net income for Gas Marketing was
$1.5 million, down from $4.3 million in the prior-year period, reflecting
less favorable fair value adjustments. Excluding the fair value
adjustments, NEE increased to $3.1
million from $1.9 million a
year ago, due to higher volumes and improved storage
optimization.
Other
Other non-utility operations and corporate costs were
$8.3 million in the fourth quarter of
2017, and $7.9 million in the
year-ago period, reflecting mainly interest expense on debt for the
EnergySouth acquisition and costs on short-term borrowings.
Dividend Increase
As a result of the strong performance in fiscal 2017 and
expectations for continued growth, the board of directors of Spire
increased the quarterly common stock dividend to $0.5625 per share, an increase of 7.1 percent.
This raises the annualized rate to $2.25 per share. Spire has continuously paid a
cash dividend since 1946, and 2018 will mark the 15th consecutive
year that the annualized dividend has increased. The dividend is
payable January 3, 2018, to
shareholders of record on December 11,
2017.
Balance Sheets and Cash Flows
In fiscal 2017, we continued to maintain a strong capital
structure with ample liquidity. At September
30, 2017, we had a long-term capitalization of 48.7 percent
equity, compared to a 49.8 percent equity capitalization a year
ago.
Our balance sheet at September 30,
2017, reflects a number of planned debt and equity
transactions during our fiscal third quarter largely related to the
Spire Alabama acquisition financing completed in 2014. These
transactions included the redemption of $250
million in Spire floating rate notes and the retirement of
$144 million in Spire junior
subordinated notes (part of the equity units), both of which were
issued to help fund the Spire Alabama acquisition. Upon the
conversion of the equity units, we issued approximately 2.5 million
shares of common stock, generating net equity proceeds of
$142 million. Spire also issued
$100 million in senior notes.
As discussed earlier in the year, Spire Missouri completed a
private placement of $170 million in
first mortgage bonds on September 15,
2017.
Short-term borrowings outstanding at fiscal year end were
$477.3 million, up from $398.7 million a year ago. These levels of
short-term debt are in line with our typical seasonal borrowing
needs, and the increase in 2017 reflects the increased scale of our
utility operations. We have significant capacity to meet our
anticipated capital needs heading into the winter heating
season.
Net cash provided by operating activities was $288.3 million for fiscal 2017, compared to
$328.3 million for fiscal 2016. The
decrease was primarily driven by an increase in working capital
including collections under the purchased gas cost riders in
Missouri and Alabama.
Capital expenditures for fiscal 2017 were $438.1 million, up from $293.3 million in the prior year, reflecting
increased investment in infrastructure for upgrades to the
distribution systems of our gas utilities and for the Spire STL
Pipeline.
For additional details on Spire's results for the fourth quarter
and full year 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
We are progressing with our Spire STL Pipeline, a planned
65-mile natural gas supply pipeline that will provide Spire
Missouri East with access to lower-cost shale gas from the
Marcellus/Utica producing regions.
The pipeline will also enhance reliability and the diversity of our
physical transport portfolio.
In January 2017, we filed a
certificate application with the Federal Energy Regulatory
Commission (FERC) seeking approval for the pipeline. This
immediately followed the execution of a precedent agreement with
Spire Missouri under which they will be a foundation shipper with a
commitment of 350 MMcf/d out of the total capacity of 400
MMcf/d.
On September 29, 2017, we received
the required Environmental Assessment from the FERC, which
concluded that our project, with appropriate mitigating measures,
will not significantly impact the environment.
As reported earlier, we have purchased pipe and are finalizing
the selection of a construction contractor. We are also well
underway with the process to acquire land rights. Our schedule
continues to reflect an expected fiscal 2019 in-service date, based
on obtaining FERC approval late in calendar 2017. The estimated
project cost remains $190 million-$210
million.
Regulatory Matters
Missouri
In April, Spire Missouri East and Spire Missouri West each filed
with the Missouri Public Service Commission (MoPSC) a general rate
case, requesting proposed rate changes. Spire Missouri East's
request represents an incremental rate increase of $25.5 million, which is net of $32.6 million that is currently being recovered
through ISRS, and Spire Missouri West's request represents a
$34.0 million incremental increase,
net of $16.4 million in ISRS
recovery.
In September, the staff of the MoPSC and other parties filed
their direct testimony on rates and rate design for Spire Missouri,
and in October all parties filed related rebuttal testimony. As
part of the rate proceeding, Spire Missouri conducted local public
hearings to discuss the rate cases with customers and communities
across the state. In late October, Spire Missouri filed true-up
testimony, as required, to reflect updated information through
September 30, 2017, the end of
Spire's fiscal year. Spire Missouri's original testimony was based on
financial information for calendar year 2016.
Parties to the case have commenced discussions to clarify
information and positions taken on a variety of issues. The
objective of the discussions is to identify areas in which the
parties are in substantial agreement, prior to public hearings in
December 2017. The regulatory process
in Missouri provides the MoPSC up
to 11 months to consider these filings, meaning new rates for our
Spire Missouri Utilities will go into effect no later than
March 8, 2018.
Alabama
Under the rate-setting process in Alabama, Spire Alabama and Spire Gulf each
made their annual Rate Stabilization and Equalization (RSE) filings
with the Alabama Public Service Commission (APSC) on October 28, 2017. The RSE filings present each
utility's budget for the fiscal year ending September 30, 2018. The filings include net
income and a calculation of return on average common equity for the
year at 10.8 percent (plus a 5 basis-point adder for achieving
certain customer satisfaction rankings) for Spire Alabama and 10.7
percent for Spire Gulf. 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, 2017.
Earnings Guidance and Outlook
We re-affirm our annual long-term NEE per share growth target of
4 - 6 percent. We will launch fiscal 2018 NEE per share guidance
after our Missouri rate
proceedings conclude.
Spire capital expenditures for fiscal 2018 are expected to be
$485 million, with investment in our
gas utilities totaling $415 million
and expenditures for Spire STL Pipeline estimated to be
$70 million. Our total capital
investment for the 5-year period 2017 to 2021 remains $2.3 billion, with $2.1
billion for our gas utilities. We expect more than 80
percent of our 5-year capital spend will be recovered in rates with
minimal lag under regulatory mechanisms or reflected in
earnings.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2017 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:
|
Wednesday, November
15
|
|
10:30 a.m. CT (11:30
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
Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 12:30 p.m. CT (1:30 p.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 10113194. 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 serving Alabama, Mississippi and Missouri. Our non-utility operations include
Spire Marketing, which provides natural gas marketing and related
services. We are transforming our business and pursuing growth
through 1) growing organically, 2) investing in infrastructure, 3)
acquiring and integrating, and 4) innovation and technology.
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 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, 2017, 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
"contribution 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. Contribution margin adjusts revenues to
remove the 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.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
Consolidated
Statements of Income - Unaudited
|
Spire
Inc.
|
(In Millions,
except per share amounts)
|
|
|
|
Three months
ended
September 30,
|
|
Years ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Operating
Revenues:
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
240.9
|
|
|
$
|
193.7
|
|
|
$
|
1,660.0
|
|
|
$
|
1,457.2
|
|
|
Gas Marketing and
other
|
17.8
|
|
|
85.6
|
|
|
80.7
|
|
|
80.1
|
|
|
Total Operating
Revenues
|
258.7
|
|
|
279.3
|
|
|
1,740.7
|
|
|
1,537.3
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Gas
Utility
|
|
|
|
|
|
|
|
|
Natural and
propane gas
|
45.7
|
|
|
28.5
|
|
|
570.5
|
|
|
492.2
|
|
|
Other
operation and maintenance expenses
|
106.4
|
|
|
99.8
|
|
|
405.0
|
|
|
377.5
|
|
|
Depreciation
and amortization
|
39.5
|
|
|
35.4
|
|
|
153.5
|
|
|
136.9
|
|
|
Taxes, other
than income taxes
|
25.6
|
|
|
25.7
|
|
|
137.8
|
|
|
125.2
|
|
|
Total
Gas Utility Operating Expenses
|
217.2
|
|
|
189.4
|
|
|
1,266.8
|
|
|
1,131.8
|
|
|
Gas Marketing and
other
|
39.6
|
|
|
97.6
|
|
|
152.2
|
|
|
123.2
|
|
|
Total Operating Expenses
|
256.8
|
|
|
287.0
|
|
|
1,419.0
|
|
|
1,255.0
|
|
Operating (Loss)
Income
|
1.9
|
|
|
(7.7)
|
|
|
321.7
|
|
|
282.3
|
|
Other Income -
Net
|
1.0
|
|
|
4.8
|
|
|
6.6
|
|
|
8.6
|
|
Interest
Charges:
|
|
|
|
|
|
|
|
|
Interest on long-term
debt
|
19.5
|
|
|
17.4
|
|
|
76.8
|
|
|
67.6
|
|
|
Other interest
charges
|
3.4
|
|
|
2.1
|
|
|
12.3
|
|
|
9.6
|
|
|
Total Interest
Charges
|
22.9
|
|
|
19.5
|
|
|
89.1
|
|
|
77.2
|
|
Income (Loss) Before
Income Taxes
|
(20.0)
|
|
|
(22.4)
|
|
|
239.2
|
|
|
213.7
|
|
Income Tax (Benefit)
Expense
|
(6.7)
|
|
|
(8.2)
|
|
|
77.6
|
|
|
69.5
|
|
Net (Loss)
Income
|
$
|
(13.3)
|
|
|
$
|
(14.2)
|
|
|
$
|
161.6
|
|
|
$
|
144.2
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
48.1
|
|
|
45.5
|
|
|
46.9
|
|
|
44.1
|
|
|
Diluted
|
48.3
|
|
|
45.7
|
|
|
47.0
|
|
|
44.3
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings (Loss)
Per Share of Common Stock
|
$
|
(0.28)
|
|
|
$
|
(0.31)
|
|
|
$
|
3.44
|
|
|
$
|
3.26
|
|
Diluted Earnings
(Loss) Per Share of Common Stock
|
$
|
(0.28)
|
|
|
$
|
(0.31)
|
|
|
$
|
3.43
|
|
|
$
|
3.24
|
|
Dividends Declared
Per Share of Common Stock
|
$
|
0.53
|
|
|
$
|
0.49
|
|
|
$
|
2.10
|
|
|
$
|
1.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets - Unaudited
|
Spire
Inc.
|
(In
Millions)
|
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Utility
Plant
|
$
|
5,278.4
|
|
|
$
|
4,793.6
|
|
Less:
Accumulated depreciation and amortization
|
1,613.2
|
|
|
1,506.4
|
|
Net Utility
Plant
|
3,665.2
|
|
|
3,287.2
|
|
Non-utility
Property
|
52.0
|
|
|
13.7
|
|
Goodwill
|
1,171.6
|
|
|
1,164.9
|
|
Other
Investments
|
64.2
|
|
|
62.1
|
|
Other Property and
Investments
|
1,287.8
|
|
|
1,240.7
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
7.4
|
|
|
5.2
|
|
Accounts receivable
(net of allowance for doubtful accounts)
|
271.4
|
|
|
220.7
|
|
Delayed customer
billings
|
3.4
|
|
|
1.6
|
|
Inventories
|
225.8
|
|
|
202.3
|
|
Other
|
217.5
|
|
|
139.8
|
|
Total Current
Assets
|
725.5
|
|
|
569.6
|
|
Regulatory Assets and
Other Deferred Charges
|
868.2
|
|
|
966.9
|
|
Total
Assets
|
$
|
6,546.7
|
|
|
$
|
6,064.4
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
Capitalization:
|
|
|
|
Common stock and
paid-in capital
|
$
|
1,373.0
|
|
|
$
|
1,221.5
|
|
Retained
earnings
|
615.1
|
|
|
550.9
|
|
Accumulated other
comprehensive income (loss)
|
3.2
|
|
|
(4.2)
|
|
Total Common
Stock Equity
|
1,991.3
|
|
|
1,768.2
|
|
Long-term
debt
|
1,995.0
|
|
|
1,820.7
|
|
Total
Capitalization
|
3,986.3
|
|
|
3,588.9
|
|
Current
Liabilities:
|
|
|
|
Current portion of
long-term debt
|
100.0
|
|
|
250.0
|
|
Notes
payable
|
477.3
|
|
|
398.7
|
|
Accounts
payable
|
257.1
|
|
|
210.9
|
|
Advance customer
billings
|
32.0
|
|
|
70.2
|
|
Accrued liabilities
and other
|
231.5
|
|
|
231.5
|
|
Total Current
Liabilities
|
1,097.9
|
|
|
1,161.3
|
|
|
|
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
Deferred income
taxes
|
707.5
|
|
|
607.3
|
|
Pension and
postretirement benefit costs
|
237.4
|
|
|
303.7
|
|
Asset retirement
obligations
|
296.6
|
|
|
206.4
|
|
Regulatory
liabilities
|
157.2
|
|
|
130.7
|
|
Other
|
63.8
|
|
|
66.1
|
|
Total Deferred
Credits and Other Liabilities
|
1,462.5
|
|
|
1,314.2
|
|
Total Capitalization
and Liabilities
|
$
|
6,546.7
|
|
|
$
|
6,064.4
|
|
Condensed
Consolidated Statements of Cash Flow - Unaudited
|
Spire
Inc.
|
(In
Millions)
|
|
|
Years ended
September 30,
|
|
2017
|
|
2016
|
Operating
Activities:
|
|
|
|
Net Income
|
$
|
161.6
|
|
|
$
|
144.2
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
amortization, and accretion
|
154.1
|
|
|
137.5
|
|
Deferred income taxes
and investment tax credits
|
77.0
|
|
|
68.8
|
|
Changes in assets and
liabilities
|
(108.6)
|
|
|
(27.1)
|
|
Other
|
4.2
|
|
|
4.9
|
|
Net cash provided by
operating activities
|
288.3
|
|
|
328.3
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(438.1)
|
|
|
(293.3)
|
|
Acquisition of
EnergySouth (net of $2.0 cash acquired) and final
settlement
|
3.8
|
|
|
(317.7)
|
|
Other
|
0.8
|
|
|
(1.7)
|
|
Net cash used in
investing activities
|
(433.5)
|
|
|
(612.7)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
Repayment of long-term
debt
|
(393.8)
|
|
|
(80.0)
|
|
Issuance of long-term
debt
|
420.0
|
|
|
245.0
|
|
Issuance of short-term
debt - net
|
78.6
|
|
|
60.7
|
|
Issuance of common
stock
|
146.9
|
|
|
137.1
|
|
Dividends
paid
|
(96.2)
|
|
|
(85.2)
|
|
Other
|
(8.1)
|
|
|
(1.8)
|
|
Net cash provided by
financing activities
|
147.4
|
|
|
275.8
|
|
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
2.2
|
|
|
(8.6)
|
|
Cash and Cash
Equivalents at Beginning of Period
|
5.2
|
|
|
13.8
|
|
Cash and Cash
Equivalents at End of Period
|
$
|
7.4
|
|
|
$
|
5.2
|
|
|
|
|
|
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, 2017
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
(6.5)
|
|
|
$
|
1.5
|
|
|
$
|
(8.3)
|
|
|
$
|
(13.3)
|
|
|
$
|
(0.28)
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
—
|
|
|
2.8
|
|
|
—
|
|
|
2.8
|
|
|
0.06
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
1.2
|
|
|
—
|
|
|
0.7
|
|
|
1.9
|
|
|
0.04
|
|
|
|
Income tax effect of
adjustments (1)
|
(0.5)
|
|
|
(1.1)
|
|
|
(0.2)
|
|
|
(1.8)
|
|
|
(0.04)
|
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
(5.8)
|
|
|
$
|
3.1
|
|
|
$
|
(7.8)
|
|
|
$
|
(10.5)
|
|
|
$
|
(0.22)
|
|
|
|
|
Diluted EPS
(GAAP)
|
(0.14)
|
|
|
0.03
|
|
|
(0.17)
|
|
|
(0.28)
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
(0.12)
|
|
|
0.06
|
|
|
(0.16)
|
|
|
(0.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2017
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
180.5
|
|
|
$
|
3.4
|
|
|
$
|
(22.3)
|
|
|
$
|
161.6
|
|
|
$
|
3.43
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
0.1
|
|
|
5.9
|
|
|
—
|
|
|
6.0
|
|
|
0.13
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
|
(0.01)
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
1.5
|
|
|
—
|
|
|
2.5
|
|
|
4.0
|
|
|
0.09
|
|
|
|
Income tax effect of
adjustments (1)
|
(0.6)
|
|
|
(2.2)
|
|
|
(0.9)
|
|
|
(3.7)
|
|
|
(0.08)
|
|
|
Net Economic Earnings
(Loss) (Non-GAAP)
|
$
|
181.5
|
|
|
$
|
6.8
|
|
|
$
|
(20.7)
|
|
|
$
|
167.6
|
|
|
$
|
3.56
|
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
3.83
|
|
|
$
|
0.07
|
|
|
$
|
(0.47)
|
|
|
$
|
3.43
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
3.86
|
|
|
$
|
0.14
|
|
|
$
|
(0.44)
|
|
|
$
|
3.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (1)
|
—
|
|
|
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 (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
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
|
|
|
|
(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.
|
Contribution
Margin and Reconciliation to GAAP
|
|
(In
Millions)
|
Gas
Utility
|
|
Gas
Marketing
|
|
Other
|
|
Eliminations
|
|
Consolidated
|
Three Months Ended
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Operating income
(Loss) (GAAP)
|
$
|
1.3
|
|
|
$
|
2.3
|
|
|
$
|
(1.7)
|
|
|
$
|
—
|
|
|
$
|
1.9
|
|
|
Operation and
maintenance expenses
|
107.4
|
|
|
1.5
|
|
|
3.4
|
|
|
(1.6)
|
|
|
110.7
|
|
|
Depreciation and
amortization
|
39.5
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
39.7
|
|
|
Taxes, other than
income taxes
|
25.6
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
25.8
|
|
|
Less: Gross receipts
taxes
|
(12.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.6)
|
|
|
Contribution
Margin (Non-GAAP)
|
161.2
|
|
—
|
|
4.0
|
|
—
|
|
1.9
|
|
—
|
|
(1.6)
|
|
—
|
|
165.5
|
|
|
Natural and propane
gas expense
|
67.1
|
|
|
13.5
|
|
|
0.1
|
|
|
(0.1)
|
|
|
80.6
|
|
|
Gross receipts tax
expense
|
12.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.6
|
|
|
Operating Revenues
(GAAP)
|
$
|
240.9
|
|
|
$
|
17.5
|
|
|
$
|
2.0
|
|
|
$
|
(1.7)
|
|
|
$
|
258.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Operating income
(Loss) (GAAP)
|
$
|
(11.8)
|
|
|
$
|
7.1
|
|
|
$
|
(3.0)
|
|
|
$
|
—
|
|
|
$
|
(7.7)
|
|
|
Operation and
maintenance expenses
|
100.9
|
|
|
1.5
|
|
|
5.0
|
|
|
(1.5)
|
|
|
105.9
|
|
|
Depreciation and
amortization
|
35.4
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
35.5
|
|
|
Taxes, other than
income taxes
|
25.7
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
25.6
|
|
|
Less: Gross receipts
taxes
|
(10.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.3)
|
|
|
Contribution
Margin (Non-GAAP)
|
139.9
|
|
—
|
|
8.6
|
|
—
|
|
2.0
|
|
—
|
|
(1.5)
|
|
—
|
|
149.0
|
|
|
Natural and propane
gas expense
|
43.7
|
|
|
46.8
|
|
|
0.2
|
|
|
29.3
|
|
|
120.0
|
|
|
Gross receipts tax
expense
|
10.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
|
Operating Revenues
(GAAP)
|
$
|
193.9
|
|
|
$
|
55.4
|
|
|
$
|
2.2
|
|
|
$
|
27.8
|
|
|
$
|
279.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Operating income
(Loss) (GAAP)
|
$
|
321.6
|
|
|
$
|
5.2
|
|
|
$
|
(5.1)
|
|
|
$
|
—
|
|
|
$
|
321.7
|
|
|
Operation and
maintenance expenses
|
409.1
|
|
|
5.9
|
|
|
11.8
|
|
|
(5.5)
|
|
|
421.3
|
|
|
Depreciation and
amortization
|
153.5
|
|
|
0.1
|
|
|
0.5
|
|
|
—
|
|
|
154.1
|
|
|
Taxes, other than
income taxes
|
137.8
|
|
|
0.5
|
|
|
0.2
|
|
|
—
|
|
|
138.5
|
|
|
Less: Gross receipts
taxes
|
(83.0)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(83.1)
|
|
|
Contribution
Margin (Non-GAAP)
|
939.0
|
|
|
11.6
|
|
|
7.4
|
|
|
(5.5)
|
|
|
952.5
|
|
|
Natural and propane
gas expense
|
645.9
|
|
|
67.6
|
|
|
0.3
|
|
|
(8.7)
|
|
|
705.1
|
|
|
Gross receipts tax
expense
|
83.0
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
83.1
|
|
|
Operating Revenues
(GAAP)
|
$
|
1,667.9
|
|
|
$
|
79.3
|
|
|
$
|
7.7
|
|
|
$
|
(14.2)
|
|
|
$
|
1,740.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Operating income
(Loss) (GAAP)
|
$
|
278.3
|
|
|
$
|
11.8
|
|
|
$
|
(7.8)
|
|
|
$
|
—
|
|
|
$
|
282.3
|
|
|
Operation and
maintenance expenses
|
379.3
|
|
|
5.6
|
|
|
12.1
|
|
|
(2.4)
|
|
|
394.6
|
|
|
Depreciation and
amortization
|
136.9
|
|
|
0.1
|
|
|
0.5
|
|
|
|
|
137.5
|
|
|
Taxes, other than
income taxes
|
125.2
|
|
|
0.3
|
|
|
(0.2)
|
|
|
|
|
125.3
|
|
|
Less: Gross receipts
taxes
|
(75.3)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(75.4)
|
|
|
Contribution
Margin (Non-GAAP)
|
844.4
|
|
|
17.7
|
|
|
4.6
|
|
|
(2.4)
|
|
|
864.3
|
|
|
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 Revenues
(GAAP)
|
$
|
1,459.4
|
|
|
$
|
78.5
|
|
|
$
|
4.8
|
|
|
$
|
(5.4)
|
|
|
$
|
1,537.3
|
|
View original
content:http://www.prnewswire.com/news-releases/spire-reports-2017-results-300556125.html
SOURCE Spire Inc.