ST. LOUIS, Feb. 6, 2019 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported operating results for its fiscal 2019
first quarter ended December 31,
2018. Highlights include:
- First quarter fiscal 2019 earnings per diluted share
of $1.32, compared to $2.39 a
year ago including $1.24 in
adjustments for the impact of tax reform from the Tax Cuts and Jobs
Act
- Net economic earnings* per share of $1.30, up from $1.19 a year ago, reflecting growth in both our
Gas Utility and Gas Marketing segments
- Construction commences on Spire STL Pipeline
"We are off to another strong start this fiscal year. With
increasing contributions from our gas utilities and Spire
Marketing, we continue to grow and strengthen Spire for long-term
success through our utilities and gas-related businesses," said
Suzanne Sitherwood, president and
chief executive officer of Spire. "Thanks to our investments in
organic growth, infrastructure upgrades and technology, we're well
positioned to deliver both improved operating performance and
increased earnings per share, while continuing to keep our promise
to bring people and energy together in ways that enrich lives and
support the communities we serve."
First Quarter
Results
|
|
Three Months Ended
December 31,
|
|
|
|
(Millions)
|
|
|
(Per Diluted
Share)
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
66.4
|
|
|
$
|
59.5
|
|
|
$
|
1.31
|
|
|
$
|
1.22
|
|
Gas
Marketing
|
|
|
8.3
|
|
|
|
3.6
|
|
|
|
0.16
|
|
|
|
0.08
|
|
Other
|
|
|
(8.8)
|
|
|
|
(5.2)
|
|
|
|
(0.17)
|
|
|
|
(0.11)
|
|
Total
|
|
$
|
65.9
|
|
|
$
|
57.9
|
|
|
$
|
1.30
|
|
|
$
|
1.19
|
|
Fair value
adjustments, pre-tax
|
|
|
2.2
|
|
|
|
(0.7)
|
|
|
|
0.04
|
|
|
|
(0.02)
|
|
Acquisition-related
costs, pre-tax
|
|
|
(0.4)
|
|
|
|
(1.7)
|
|
|
|
(0.01)
|
|
|
|
(0.04)
|
|
Income tax effect of
pre-tax adjustments
|
|
|
(0.4)
|
|
|
|
0.6
|
|
|
|
(0.01)
|
|
|
|
0.02
|
|
Effect of the Tax Cuts
and Jobs Act
|
|
|
—
|
|
|
|
59.9
|
|
|
|
—
|
|
|
|
1.24
|
|
Net
Income
|
|
$
|
67.3
|
|
|
$
|
116.0
|
|
|
$
|
1.32
|
|
|
$
|
2.39
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
50.8
|
|
|
|
48.4
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
Consolidated net income for the three months ended December 31, the first quarter of our fiscal
year, was $67.3 million ($1.32 per diluted share), down from $116.o million ($2.39 per share) a year ago. The prior year
period included $59.9 million (or
$1.24 per share) in non-cash
adjustments to reflect the estimated impact of federal tax reform
from the Tax Cuts and Jobs Act.
Net economic earnings (NEE) for the first quarter of fiscal 2019
was $65.9 million ($1.30 per share), up from $57.9 million ($1.19 per share) last year, reflecting improved
Gas Utility and Gas Marketing results, partially offset by higher
corporate costs and the operating loss from Spire Storage. Current
year per share amounts reflect our successful equity offering
completed on May 10, 2018 of 2.3
million shares (or 4.8 percent of our then outstanding shares).
NEE excludes from net income the impacts of fair value
accounting and timing adjustments associated with energy-related
transactions, the impacts of acquisition, divestiture and
restructuring activities, and the largely non-cash impacts of other
non-recurring or unusual items such as certain regulatory,
legislative, or GAAP standard-setting actions. In fiscal 2018,
these impacts included the revaluation of deferred tax assets and
liabilities due to the Tax Cuts and Jobs Act and the write-off of
assets that were disallowed in our 2018 Missouri rate
proceedings.
Gas Utility
The Gas Utility segment includes the regulated distribution
operations of our five gas utilities across Alabama, Mississippi and Missouri. First quarter NEE was $66.4 million, up from $59.5 million in the prior year, reflecting a
slightly higher contribution margin and lower effective tax rates
due to tax reform, partially offset by higher expenses.
Contribution margin increased $2.0
million, which includes reductions totaling $14.0 million related to lower customer rates due
to tax reform that is largely offset by lower income tax expense.
As a result, there is minimal impact to net income in the quarter.
Margins excluding the customer rate reduction were up $16.0 million, or 6.3 percent. The increase
reflects higher usage from colder weather, and the rate increase
and change in rate design at the Missouri utilities resulting from the 2018
rate cases, as well as modest customer growth.
Operation and maintenance (O&M) expenses of $102.5 million for the quarter were up
$3.5 million, driven by $4.1 million in higher benefit and energy
efficiency costs reset in our Missouri rate cases. Costs net of these
adjustments were down slightly from last year. Depreciation and
amortization expenses increased by $3.4
million from last year, reflecting higher capital
investment. Taxes other than income taxes increased $2.5 million reflecting higher volume-driven
gross receipts taxes.
Gas Marketing
The Gas Marketing segment includes the results of Spire
Marketing, which provides natural gas marketing services across the
central and southern United
States. First quarter NEE was $8.3
million, up from $3.6 million in the prior year, reflecting
higher sales volumes driven by the geographic expansion of our
business and favorable market conditions. Colder weather and
ongoing basis differentials increased the value of our services
delivered through optimizing our supply, transportation and storage
portfolio.
Other
Other gas-related operations and corporate costs on a NEE
basis for the first quarter were $8.8
million in fiscal 2019, up from $5.2
million a year ago. The increase is largely due to the
inclusion of an operating loss for Spire Storage, which was
excluded from NEE in the prior year, partially offset by non-cash
Allowance for Funds Used During Construction (AFUDC) earnings for
Spire STL Pipeline.
Pipelines and Storage
We continue to develop our gas-related businesses as part of our
long-term growth strategy, including Spire STL Pipeline and Spire
Storage.
Spire STL Pipeline
Following the securing of land access for Spire STL Pipeline in
December, our contractor (Michels) has started construction,
including preparing sites along the route for the installation of
pipe and ancillary facilities. The 65-mile natural gas supply
pipeline will provide Spire Missouri East with access to lower-cost
shale gas from the Marcellus and Utica producing regions. The pipeline will
also enhance reliability and the diversity of our physical
transportation portfolio.
Based on the current project schedule, we are targeting an
in-service date by the end of our fiscal year. The estimated
project cost remains $210 million -
$225 million.
Spire Storage
On January 25, 2019, the Federal
Energy Regulatory Commission (FERC) approved our application to
combine the operations of our two adjacent storage facilities in
Wyoming into one FERC certificate
with a market-based tariff. This will reduce processing costs and
promote greater efficiency and reliability. With this approval, we
are now integrating the two facilities and finalizing our
development plan. That plan, designed to take advantage of expanded
opportunities in the region, will likely include additional
investments in infrastructure and resources to increase injection
and withdrawal capabilities, expand working gas capacity, and
improve overall operating performance. We expect Spire Storage to
contribute to earnings in fiscal 2020 and beyond. The operating
results of Spire Storage are included in Other.
Spire Storage, with a maximum certificated working gas capacity
of 39 Bcf, is strategically located near the Opal hub and
interconnects with five interstate pipes including the Kern River
Pipeline. It serves a wide range of natural gas markets throughout
the Rockies and western United
States.
Balance Sheets and Cash Flows
We maintain a strong capital structure with ample liquidity. At
December 31, 2018, our long-term
capitalization was 51.3 percent equity, compared to 49.4 percent
equity a year ago.
On December 3, 2018, Spire
Missouri completed and fully funded a $100
million, 3-year term loan, with borrowings bearing interest
at a variable rate. Proceeds were used to refinance a majority of
maturing Spire Missouri debt. On January 15,
2019, Spire Alabama closed a $90
million private placement of 30-year Senior Notes with a
4.64 percent coupon. Spire Alabama
used the proceeds to repay short-term debt and for general
corporate purposes.
Short-term borrowings outstanding at December 31, 2018 were $626.1 million, compared to $583.6 million a year ago. These levels reflect
the highly seasonal nature of our working capital needs, which
typically peak in this time period. We retain significant capacity
in our $975 million revolving credit
facility and related commercial paper program to meet our liquidity
needs.
Net cash provided by operating activities was $70.4 million for the three months ended
December 31, 2018, compared to
$17.9 million for the fiscal first
quarter a year ago. The increase was largely driven by fluctuations
in working capital items. Capital expenditures for the first
quarter of fiscal 2019 were $206.8
million, up from $110.8
million in the prior year. This increase reflects increased
investment in infrastructure upgrades and for support of customer
growth and new business development initiatives, as well as
development of Spire STL Pipeline and Spire Storage.
For additional details on Spire's results for the first quarter
of fiscal 2019, please see the accompanying unaudited Condensed
Consolidated Statements of Income, unaudited Condensed Consolidated
Balance Sheets, and unaudited Condensed Consolidated Statements of
Cash Flows.
Missouri Regulatory Update
On January 14, 2019, Spire
Missouri filed with the Missouri Public Service Commission (MoPSC)
a request to increase Infrastructure System Replacement Surcharge
(ISRS) revenues by $19.0 million. The
ISRS mechanism allows for more timely recovery of investments in
infrastructure upgrades that improve the integrity and safety of
our distribution system.
The filing includes $3.2 million
of recovery related to replacement of certain pipeline materials
that were not approved as part of Spire Missouri's June 2018 ISRS filing. During that filing, the
MoPSC instituted new information requirements which Spire Missouri
included in its January filing. New rates are to be effective
within 120 days of our filing, or by mid-May
2019.
Dividends
The Spire board of directors has declared a quarterly common
stock dividend of $0.5925 per
share, payable April 2, 2019, to
shareholders of record on March 11,
2019. We have continuously paid a cash dividend since 1946,
with 2019 marking the 16th consecutive year of
increasing dividends on an annualized basis.
Earnings Guidance and Outlook
We affirm our fiscal 2019 NEE guidance range of $3.70 - $3.80 per
diluted share. Our longer-term NEE per share growth target remains
4 - 7 percent. The base for this growth rate is fiscal 2018
earnings, less earnings of $0.17 per
share from Spire Marketing due to favorable weather-driven market
conditions that are not expected to recur in fiscal 2019.
Our capital expenditures forecast for fiscal 2019 remains
$650 million and our five-year
capital spend outlook for the fiscal years 2018-2022 remains
$2.6 billion.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2019 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
6
|
|
|
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, and can be accessed at
Investors.SpireEnergy.com under the Events & presentations
tab. A replay of the call will be available at 10 a.m. CT (11 a.m.
ET) on February 6 until
March 6 by dialing 877-344-7529
(U.S.), 855-669-9658 (Canada), or
412-317-0088 (international). The replay access code is
10127559.
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 natural gas-related businesses
include Spire Marketing, Spire STL Pipeline and Spire Storage. We
are committed to 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 acquisitions. More
complete descriptions and listings of these uncertainties and risk
factors can be found in the Company's annual (Form 10-K) and
quarterly (Form 10-Q) filings with the Securities and Exchange
Commission.
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
impacts of fair value accounting and timing adjustments associated
with energy-related transactions, the impacts of acquisition,
divestiture and restructuring activities and the largely non-cash
impacts of other non-recurring or unusual items such as certain
regulatory, legislative, or GAAP standard-setting actions. In
fiscal 2018, these items included the revaluation of deferred tax
assets and liabilities due to the Tax Cuts and Jobs Act and the
write-off of certain long-standing assets as a result of
disallowances in our 2018 Missouri rate proceedings. The fair value
and timing 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. 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.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
Condensed
Consolidated Statements of Income – Unaudited
|
|
(In
Millions, except per share amounts)
|
|
Three Months
Ended
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
Operating
Revenues:
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
573.8
|
|
|
$
|
541.9
|
|
Gas Marketing and
other
|
|
|
28.2
|
|
|
|
19.9
|
|
Total Operating
Revenues
|
|
|
602.0
|
|
|
|
561.8
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
|
|
|
|
|
|
|
Natural and propane
gas
|
|
|
251.7
|
|
|
|
240.8
|
|
Operation and
maintenance
|
|
|
102.5
|
|
|
|
99.0
|
|
Depreciation and
amortization
|
|
|
43.7
|
|
|
|
40.3
|
|
Taxes, other than
income taxes
|
|
|
39.2
|
|
|
|
36.7
|
|
Total Gas Utility
Operating Expenses
|
|
|
437.1
|
|
|
|
416.8
|
|
Gas Marketing and
other
|
|
|
59.8
|
|
|
|
41.0
|
|
Total Operating
Expenses
|
|
|
496.9
|
|
|
|
457.8
|
|
Operating
Income
|
|
|
105.1
|
|
|
|
104.0
|
|
Other Income,
Net
|
|
|
2.8
|
|
|
|
3.3
|
|
Interest
Charges:
|
|
|
|
|
|
|
|
|
Interest on long-term
debt
|
|
|
20.4
|
|
|
|
20.7
|
|
Other interest
charges
|
|
|
5.5
|
|
|
|
3.7
|
|
Total Interest
Charges
|
|
|
25.9
|
|
|
|
24.4
|
|
Income Before Income
Taxes
|
|
|
82.0
|
|
|
|
82.9
|
|
Income Tax Expense
(Benefit)
|
|
|
14.7
|
|
|
|
(33.1)
|
|
Net Income
|
|
$
|
67.3
|
|
|
$
|
116.0
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
50.6
|
|
|
|
48.2
|
|
Diluted
|
|
|
50.8
|
|
|
|
48.4
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
1.33
|
|
|
$
|
2.40
|
|
Diluted Earnings Per
Share
|
|
$
|
1.32
|
|
|
$
|
2.39
|
|
Dividends Declared
Per Share
|
|
$
|
0.5925
|
|
|
$
|
0.5625
|
|
Condensed
Consolidated Balance Sheets – Unaudited
|
|
(In
Millions)
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
5,754.8
|
|
|
$
|
5,653.3
|
|
|
$
|
5,351.7
|
|
Less:
Accumulated depreciation and amortization
|
|
|
1,709.5
|
|
|
|
1,682.8
|
|
|
|
1,641.0
|
|
Net Utility
Plant
|
|
|
4,045.3
|
|
|
|
3,970.5
|
|
|
|
3,710.7
|
|
Non-utility
Property
|
|
|
254.5
|
|
|
|
174.5
|
|
|
|
105.3
|
|
Goodwill
|
|
|
1,171.6
|
|
|
|
1,171.6
|
|
|
|
1,171.6
|
|
Other
Investments
|
|
|
69.5
|
|
|
|
68.7
|
|
|
|
66.3
|
|
Other Property and
Investments
|
|
|
1,495.6
|
|
|
|
1,414.8
|
|
|
|
1,343.2
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
8.4
|
|
|
|
4.4
|
|
|
|
6.7
|
|
Accounts receivable,
net
|
|
|
556.7
|
|
|
|
296.8
|
|
|
|
447.6
|
|
Delayed customer
billings
|
|
|
10.9
|
|
|
|
6.9
|
|
|
|
7.5
|
|
Inventories
|
|
|
212.7
|
|
|
|
210.3
|
|
|
|
204.9
|
|
Other
|
|
|
116.6
|
|
|
|
141.2
|
|
|
|
185.8
|
|
Total Current
Assets
|
|
|
905.3
|
|
|
|
659.6
|
|
|
|
852.5
|
|
Regulatory Assets and
Other Deferred Charges
|
|
|
786.0
|
|
|
|
798.7
|
|
|
|
794.7
|
|
Total
Assets
|
|
$
|
7,232.2
|
|
|
$
|
6,843.6
|
|
|
$
|
6,701.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock and
paid-in capital
|
|
$
|
1,533.5
|
|
|
$
|
1,533.4
|
|
|
$
|
1,373.2
|
|
Retained
earnings
|
|
|
752.9
|
|
|
|
715.6
|
|
|
|
703.0
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(1.8)
|
|
|
|
6.4
|
|
|
|
3.0
|
|
Total Shareholders'
Equity
|
|
|
2,284.6
|
|
|
|
2,255.4
|
|
|
|
2,079.2
|
|
Redeemable
noncontrolling interest
|
|
|
—
|
|
|
|
7.9
|
|
|
|
6.5
|
|
Long-term debt (less
current portion)
|
|
|
1,992.0
|
|
|
|
1,900.1
|
|
|
|
2,030.0
|
|
Total
Capitalization
|
|
|
4,276.6
|
|
|
|
4,163.4
|
|
|
|
4,115.7
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
175.0
|
|
|
|
175.5
|
|
|
|
105.5
|
|
Notes
payable
|
|
|
626.1
|
|
|
|
553.6
|
|
|
|
583.6
|
|
Accounts
payable
|
|
|
430.9
|
|
|
|
290.1
|
|
|
|
245.6
|
|
Advance customer
billings
|
|
|
19.8
|
|
|
|
22.7
|
|
|
|
27.3
|
|
Accrued liabilities
and other
|
|
|
311.6
|
|
|
|
279.8
|
|
|
|
249.3
|
|
Total Current
Liabilities
|
|
|
1,563.4
|
|
|
|
1,321.7
|
|
|
|
1,211.3
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
453.2
|
|
|
|
435.8
|
|
|
|
441.0
|
|
Pension and
postretirement benefit costs
|
|
|
182.1
|
|
|
|
180.2
|
|
|
|
233.6
|
|
Asset retirement
obligations
|
|
|
324.5
|
|
|
|
321.1
|
|
|
|
299.7
|
|
Regulatory
liabilities
|
|
|
363.4
|
|
|
|
354.6
|
|
|
|
335.1
|
|
Other
|
|
|
69.0
|
|
|
|
66.8
|
|
|
|
64.7
|
|
Total Deferred Credits
and Other Liabilities
|
|
|
1,392.2
|
|
|
|
1,358.5
|
|
|
|
1,374.1
|
|
Total Capitalization
and Liabilities
|
|
$
|
7,232.2
|
|
|
$
|
6,843.6
|
|
|
$
|
6,701.1
|
|
Condensed
Consolidated Statements of Cash Flows – Unaudited
|
|
(In
Millions)
|
|
Three Months
Ended
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
67.3
|
|
|
$
|
116.0
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
44.2
|
|
|
|
40.4
|
|
Deferred income taxes
and investment tax credits
|
|
|
12.7
|
|
|
|
(33.6)
|
|
Changes in assets and
liabilities
|
|
|
(53.4)
|
|
|
|
(106.7)
|
|
Other
|
|
|
(0.4)
|
|
|
|
1.8
|
|
Net cash provided by
operating activities
|
|
|
70.4
|
|
|
|
17.9
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(206.8)
|
|
|
|
(110.8)
|
|
Business
acquisitions
|
|
|
(7.9)
|
|
|
|
(16.0)
|
|
Other
|
|
|
(1.5)
|
|
|
|
0.1
|
|
Net cash used in
investing activities
|
|
|
(216.2)
|
|
|
|
(126.7)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
100.0
|
|
|
|
30.0
|
|
Repayment of long-term
debt
|
|
|
(9.1)
|
|
|
|
-
|
|
Issuance of short-term
debt, net
|
|
|
72.5
|
|
|
|
106.3
|
|
Issuance of common
stock
|
|
|
0.4
|
|
|
|
0.3
|
|
Dividends
paid
|
|
|
(28.8)
|
|
|
|
(25.8)
|
|
Other
|
|
|
(2.2)
|
|
|
|
(2.7)
|
|
Net cash provided by
financing activities
|
|
|
132.8
|
|
|
|
108.1
|
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash,
Cash Equivalents, and Restricted Cash
|
|
|
(13.0)
|
|
|
|
(0.7)
|
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning of Period
|
|
|
21.4
|
|
|
|
7.4
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
8.4
|
|
|
$
|
6.7
|
|
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, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
66.4
|
|
|
$
|
10.0
|
|
|
$
|
(9.1)
|
|
|
$
|
67.3
|
|
|
$
|
1.32
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
energy-related derivatives
|
|
|
—
|
|
|
|
(2.2)
|
|
|
|
—
|
|
|
|
(2.2)
|
|
|
|
(0.04)
|
|
Acquisition,
divestiture and restructuring activities
|
|
|
—
|
|
|
|
—
|
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
0.01
|
|
Income tax effect of
adjustments (1)
|
|
|
—
|
|
|
|
0.5
|
|
|
|
(0.1)
|
|
|
|
0.4
|
|
|
|
0.01
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
66.4
|
|
|
$
|
8.3
|
|
|
$
|
(8.8)
|
|
|
$
|
65.9
|
|
|
$
|
1.30
|
|
Diluted EPS
[GAAP]
|
|
$
|
1.31
|
|
|
$
|
0.19
|
|
|
$
|
(0.18)
|
|
|
$
|
1.32
|
|
|
|
|
|
Net Economic EPS
[Non-GAAP] (2)
|
|
$
|
1.31
|
|
|
$
|
0.16
|
|
|
$
|
(0.17)
|
|
|
$
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
[GAAP]
|
|
$
|
45.2
|
|
|
$
|
3.5
|
|
|
$
|
67.3
|
|
|
$
|
116.0
|
|
|
$
|
2.39
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
|
|
—
|
|
|
|
0.8
|
|
|
|
—
|
|
|
|
0.8
|
|
|
|
0.02
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
Acquisition,
divestiture and restructuring activities
|
|
|
—
|
|
|
|
—
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
0.04
|
|
Income tax effect of
adjustments (1)
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
(0.4)
|
|
|
|
(0.6)
|
|
|
|
(0.02)
|
|
Effect of the Tax Cuts
and Jobs Act
|
|
|
14.3
|
|
|
|
(0.4)
|
|
|
|
(73.8)
|
|
|
|
(59.9)
|
|
|
|
(1.24)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
59.5
|
|
|
$
|
3.6
|
|
|
$
|
(5.2)
|
|
|
$
|
57.9
|
|
|
$
|
1.19
|
|
Diluted EPS
[GAAP]
|
|
$
|
0.93
|
|
|
$
|
0.07
|
|
|
$
|
1.39
|
|
|
$
|
2.39
|
|
|
|
|
|
Net Economic EPS
[Non-GAAP] (2)
|
|
$
|
1.22
|
|
|
$
|
0.08
|
|
|
$
|
(0.11)
|
|
|
$
|
1.19
|
|
|
|
|
|
|
(1) Income tax effect
is calculated by applying federal, state, and local income tax
rates applicable to ordinary income to the amounts of the pre-tax
reconciling items and then adding any estimated effects of enacted
state or local income tax laws for periods before the related
effective date.
|
|
|
(2) Net economic
earnings per share is 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.
|
Contribution Margin
and Reconciliation to GAAP
|
|
(In
Millions)
|
|
Gas
Utility
|
|
|
Gas
Marketing
|
|
|
Other
|
|
|
Eliminations
|
|
|
Consolidated
|
|
Three Months Ended
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
95.6
|
|
|
$
|
12.5
|
|
|
$
|
(3.0)
|
|
|
$
|
—
|
|
|
$
|
105.1
|
|
Operation and
maintenance expenses
|
|
|
104.9
|
|
|
|
2.6
|
|
|
|
7.4
|
|
|
|
(2.7)
|
|
|
|
112.2
|
|
Depreciation and
amortization
|
|
|
43.7
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
44.2
|
|
Taxes, other than
income taxes
|
|
|
39.2
|
|
|
|
0.2
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
39.8
|
|
Less: Gross receipts
tax expense
|
|
|
(25.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(25.9)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
257.5
|
|
|
|
15.3
|
|
|
|
5.3
|
|
|
|
(2.7)
|
|
|
|
275.4
|
|
Natural and propane
gas costs
|
|
|
291.8
|
|
|
|
10.5
|
|
|
|
0.1
|
|
|
|
(1.7)
|
|
|
|
300.7
|
|
Gross receipts tax
expense
|
|
|
25.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
25.9
|
|
Operating
Revenues
|
|
$
|
575.2
|
|
|
$
|
25.8
|
|
|
$
|
5.4
|
|
|
$
|
(4.4)
|
|
|
$
|
602.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
100.7
|
|
|
$
|
5.0
|
|
|
$
|
(1.7)
|
|
|
$
|
—
|
|
|
$
|
104.0
|
|
Operation and
maintenance expenses
|
|
|
100.9
|
|
|
|
1.6
|
|
|
|
4.3
|
|
|
|
(2.3)
|
|
|
|
104.5
|
|
Depreciation and
amortization
|
|
|
40.3
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
40.4
|
|
Taxes, other than
income taxes
|
|
|
36.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
36.7
|
|
Less: Gross receipts
tax expense
|
|
|
(23.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23.1)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
255.5
|
|
|
|
6.6
|
|
|
|
2.7
|
|
|
|
(2.3)
|
|
|
|
262.5
|
|
Natural and propane
gas costs
|
|
|
263.4
|
|
|
|
13.0
|
|
|
|
0.1
|
|
|
|
(0.3)
|
|
|
|
276.2
|
|
Gross receipts tax
expense
|
|
|
23.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23.1
|
|
Operating
Revenues
|
|
$
|
542.0
|
|
|
$
|
19.6
|
|
|
$
|
2.8
|
|
|
$
|
(2.6)
|
|
|
$
|
561.8
|
|
View original
content:http://www.prnewswire.com/news-releases/spire-reports-first-quarter-results-300790533.html
SOURCE Spire Inc.