ST. LOUIS, Feb. 5, 2020 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal first quarter
ended December 31, 2019. Highlights
include:
- First quarter fiscal 2020 net income of $67.0 million ($1.24 per diluted share), compared to
$67.3 million ($1.32 per share) in the prior year
- Net economic earnings* of $71.8
million ($1.33 per share), up
from $65.9 million ($1.30 per share) a year ago
- Capital expenditures forecast for FY20 increased to
$610 million, reflecting higher gas
utility spend
"As we continue to advance our growth strategy, our first
quarter results show a strong start to the year with
increasing earnings from our gas utilities, solid performance by
Spire Marketing, and higher earnings from Spire STL Pipeline which
went into service during the quarter," said Suzanne Sitherwood, president and chief
executive officer of Spire. "Our focus on investing in organic
growth, infrastructure upgrades and innovation will continue to
drive even stronger operating and financial performance while
positioning us to further deliver on our promises to our employees,
customers, communities and shareholders."
First Quarter
Results
|
|
Three Months Ended
December 31,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
69.1
|
|
|
$
|
66.4
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
6.1
|
|
|
|
8.3
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(3.4)
|
|
|
|
(8.8)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
71.8
|
|
|
$
|
65.9
|
|
|
$
|
1.33
|
|
|
$
|
1.30
|
|
Net economic earnings
adjustments, pre-tax
|
|
|
(6.3)
|
|
|
|
1.8
|
|
|
|
(0.12)
|
|
|
|
0.03
|
|
Income tax effect of
pre-tax adjustments
|
|
|
1.5
|
|
|
|
(0.4)
|
|
|
|
0.03
|
|
|
|
(0.01)
|
|
Net
Income
|
|
$
|
67.0
|
|
|
$
|
67.3
|
|
|
$
|
1.24
|
|
|
$
|
1.32
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
51.1
|
|
|
|
50.8
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
Consolidated net income for the three months ended December 31, 2019, the first quarter of our
fiscal year, was $67.0 million
($1.24 per diluted share), down from
$67.3 million ($1.32 per share) a year ago.
Net economic earnings (NEE) for the first quarter of fiscal 2020
was $71.8 million ($1.33 per share) up from $65.9 million ($1.30 per share) last year, reflecting higher Gas
Utility earnings as well as lower corporate costs and improved
performance from Spire STL Pipeline and Spire Storage. These
positive impacts were partially offset by lower earnings from Spire
Marketing due to lower contribution margin. Current year per share
amounts reflect the impact from dividends on our preferred
stock.
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. Beginning in the
fourth quarter of fiscal 2019, NEE excludes the provisions
established for the appeals court rulings regarding Missouri
Infrastructure System Replacement Surcharge (ISRS) revenues.
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 $69.1 million, up from $66.4 million in the prior year, reflecting a
higher contribution margin, partially offset by higher
expenses.
Contribution margin increased $7.1
million, reflecting a prior-year Rate Stabilization and
Equalization give-back provision at Spire Alabama for $3.9 million that did not recur, higher ISRS
revenues of $2.2 million and
modest customer growth. These positive impacts were partially
offset by lower usage due to warmer weather.
Operation and maintenance expenses of $106.o million for the quarter were up
$3.5 million from last year, driven
by higher field distribution, maintenance and bad debt expenses.
Depreciation and amortization expenses increased $2.7 million from last year, reflecting higher
capital investment. Taxes other than income taxes decreased
$1.3 million mainly due to lower
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 $6.1
million, down from $8.3
million in the prior year, reflecting higher volumes from
our continued business expansion, more than offset by higher costs
and narrower basis differentials in the market.
Other
Other gas-related operations and corporate costs on a NEE basis
for the first quarter were $3.4
million in fiscal 2020, compared to $8.8 million a year ago. The year-over-year
improvement reflects higher income from Spire STL Pipeline, which
began commercial operation in mid-November 2019, lower corporate interest
costs, and a reduction in the loss from Spire Storage. NEE for
Spire STL Pipeline was $3.7 million, up from $1.4 million a year earlier. On an EBITDA
basis, Spire Storage incurred a loss of $0.5 million in the current period compared
to a loss of $2.7 million in the
prior year.
Balance Sheets and Cash Flow
We maintain a strong capital structure with ample liquidity. At
December 31, 2019, our adjusted
long-term capitalization was 48.2 percent equity, compared to 51.9
percent equity at September 30, 2019,
our fiscal year-end. The decrease in our equity ratio is due to the
completion of several financings during the first quarter of fiscal
2020 (described below) to take advantage of low long-term interest
rates to pay down existing debt including short-term
borrowings.
- On November 12, 2019, Spire
Missouri funded a $275 million
private placement of 10-year first mortgage bonds at a 2.84 percent
coupon. The use of proceeds included repaying a $100 million term loan.
- On December 2, 2019, Spire
Alabama funded a $100 million private
placement of 10-year senior notes with a 2.88 percent coupon.
Proceeds were used to repay short-term debt.
- On December 23, 2019, Spire STL
Pipeline funded a $135 million
private placement of 15-year senior notes with a 2.95 percent
coupon. Proceeds were used to repay short-term debt.
Short-term borrowings outstanding at December 31, 2019 were $518.9 million, down from $626.1 million a year ago and $743.2 million at September 30, 2019, reflecting the impact of
long-term debt financing described above. Our working capital needs
are seasonal in nature and typically peak during the winter. 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 $64.5 million for the three months ended
December 31, 2019, compared to
$70.4 million for the fiscal first
quarter a year ago. The decrease was largely driven by fluctuations
in working capital balances.
Capital expenditures for the first quarter of fiscal 2020 were
$192.3 million, down from
$206.8 million in the prior year.
Investment in our gas utilities was $151.8
million, up $15.4 million
over last year, reflecting increased spend on infrastructure
upgrades and new business development. Expenditures for Spire STL
Pipeline were $29.5 million, up
$4.6 million, reflecting investment
to complete construction and bring the project into service. For
Spire Storage, capital spend this quarter was $10.3 million.
For additional details on Spire's results for the first quarter
of fiscal 2020, please see the accompanying unaudited Condensed
Consolidated Statements of Income, unaudited Condensed Consolidated
Balance Sheets, and unaudited Condensed Consolidated Statements of
Cash Flows.
Regulatory Matters
Missouri
As reported last quarter, the Missouri Western District Court of
Appeals issued rulings determining that certain Spire Missouri
expenditures for infrastructure upgrades approved by the Missouri
Public Service Commission (MoPSC) were not eligible for recovery
under ISRS. The rulings upheld several prior-year appeals by the
Office of Public Counsel and ordered refunds for:
- Expenditures in 2016 and 2017 for intermittent plastic
materials used for repairs, with impacted revenues of $4.2 million
- Previously MoPSC-authorized ISRS revenues related to our
June 2018 filing of $8.0 million
Based on the rulings, we accrued a $12.2
million regulatory liability at year-end fiscal 2019, and an
additional $2.1 million in the first
quarter of fiscal 2020. We also accrued a $0.5 million provision for interest due on the
entirety of the ISRS revenue in dispute. The impact of these
provisions is included in net income and earnings per share but is
excluded from net economic earnings measures.
We strongly disagree with the rulings and will vigorously defend
our position. The ISRS mechanism, like similar programs across the
country, provides for more timely recovery of certain investments
in infrastructure upgrades that improve the integrity, reliability
and safety of our distribution pipeline system. These upgrades also
enhance our environmental performance by reducing methane
emissions. The ISRS mechanism has been in place for over 15 years,
and during that time, Spire has spent over $1 billion to
replace more than 2,500 miles of aging pipelines in Missouri, using the most cost-effective
process possible, while keeping customer bills lower than they were
15 years ago.
Following the denial of our request to the District Court for
rehearing the ISRS rulings, Spire Missouri applied for transfer to
the Missouri Supreme Court on January 2,
2020. This application stays the effectiveness of the ISRS
rulings and two other authorizations in earlier stages of review,
pending the Missouri Supreme Court's decision on whether to review
the cases.
Our current approved annual run rate for ISRS revenues is
approximately $29.2 million,
including the latest approved increase effective November 16, 2019 for $8.8
million annualized. Spire Missouri will continue to collect and record
these authorized revenues, pending a final determination on these
filings. On February 3, 2020, Spire
Missouri filed a request with the MoPSC for recovery of
$13.4 million in additional ISRS
revenues. The company also filed to recover $5.3 million in previously disallowed costs.
In January 2020, legislation was
introduced in both the Missouri House and Senate to clarify
language in the statute governing the ISRS mechanism. Specifically,
the bills seek to ensure we can continue to upgrade our
infrastructure, enhance its safety and reliability, and secure
timely recovery of costs incurred.
Alabama
On November 5, 2019, the Alabama
Public Service Commission approved Spire Alabama's request to
establish an off-system sales and capacity release program that
seeks to create value from the sale of excess natural gas supply
and pipeline capacity not needed to serve our customers' needs.
Similar to the successful program we have operated for many years
in Missouri, 75 percent of value
created from this program will be used to lower customer rates in
Alabama, with the remainder
retained by the company. The mechanism went into effect with new
rates on December 1, 2019.
Dividends
The Spire board of directors has declared a quarterly common
stock dividend of $0.6225 per share,
payable April 2, 2020, to
shareholders of record on March 11,
2020. We have continuously paid a cash common stock dividend
since 1946, with 2020 marking the 17th consecutive year
of increasing dividends on an annualized basis.
The board also declared the regular quarterly dividend of
$0.36875 per depositary share on
Spire's 5.90 percent Series A Cumulative Redeemable Preferred
Stock payable May 15, 2020, to
holders of record on April 24,
2020.
Guidance and Outlook
We affirm our 5-year capital expenditures outlook through fiscal
2023 of $3.0 billion. Our expected
fiscal 2020 investment has increased to $610
million, reflecting a $20
million increase in targeted spend for our gas
utilities.
We also affirm our annual long-term NEE per share growth target
of 4-7 percent. Our long-term target reflects the expectation of
continued consistent growth of our gas utilities driven by organic
growth initiatives as well as capital investment focused on
infrastructure upgrades, technology and new business. We also
expect growing contributions from expansion of Spire Marketing
and commercial operation of Spire STL Pipeline.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2020 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 5
|
|
|
10 a.m. CT (11 a.m.
ET)
|
|
|
|
|
Phone
Numbers:
|
|
U.S. and
Canada:
|
844-824-3832
|
|
|
International:
|
412-317-5142
|
The call will also be webcast and can be accessed at
Investors.SpireEnergy.com under the Events & presentations
tab. A replay of the call will be available at 12 p.m. CT (1 p.m.
ET) on February 5 until
March 6, 2020 by dialing 877-344-7529
(U.S.), 855-669-9658 (Canada), or
412-317-0088 (international). The replay access code is
10138031.
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 homes and
businesses 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 through growing
organically, investing in infrastructure, and advancing through
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 acquisitions. More
complete descriptions and listings of these uncertainties and risk
factors can be found in the Company's annual (Form 10-K) filing
with the Securities and Exchange Commission.
This news release also includes the non-GAAP financial measures
of "net economic earnings," "net economic earnings per share,"
"adjusted long-term capitalization," "contribution margin," and
"EBITDA." Management 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, 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.
Beginning in the fourth quarter of fiscal 2019 and continuing into
fiscal 2020, these items include provisions related to the ISRS
rulings. 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 is defined as operating revenues less natural
and propane gas costs and gross receipts taxes expense, which are
directly passed on to customers and collected through revenues.
Adjusted long-term capitalization treats preferred stock as 50%
debt and 50% equity, as rating agencies would treat preferred
stock. EBITDA is earnings before interest, income taxes,
depreciation and amortization. Management believes EBITDA provides
a helpful additional measure of core results of Spire Storage.
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,
|
|
|
|
2019
|
|
|
2018
|
|
Operating
Revenues:
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
530.6
|
|
|
$
|
573.8
|
|
Gas Marketing and
other
|
|
|
36.3
|
|
|
|
28.2
|
|
Total Operating
Revenues
|
|
|
566.9
|
|
|
|
602.0
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
|
|
|
|
|
|
|
Natural and propane
gas
|
|
|
214.6
|
|
|
|
251.7
|
|
Operation and
maintenance
|
|
|
106.0
|
|
|
|
102.5
|
|
Depreciation and
amortization
|
|
|
46.4
|
|
|
|
43.7
|
|
Taxes, other than
income taxes
|
|
|
37.9
|
|
|
|
39.2
|
|
Total Gas Utility
Operating Expenses
|
|
|
404.9
|
|
|
|
437.1
|
|
Gas Marketing and
other
|
|
|
59.7
|
|
|
|
59.8
|
|
Total Operating
Expenses
|
|
|
464.6
|
|
|
|
496.9
|
|
Operating
Income
|
|
|
102.3
|
|
|
|
105.1
|
|
Interest Expense,
Net
|
|
|
26.7
|
|
|
|
25.9
|
|
Other Income,
Net
|
|
|
5.7
|
|
|
|
2.8
|
|
Income Before Income
Taxes
|
|
|
81.3
|
|
|
|
82.0
|
|
Income Tax
Expense
|
|
|
14.3
|
|
|
|
14.7
|
|
Net Income
|
|
|
67.0
|
|
|
|
67.3
|
|
Provision for
preferred dividends
|
|
|
3.7
|
|
|
|
—
|
|
Income allocated to
participating securities
|
|
|
0.1
|
|
|
|
0.1
|
|
Net Income Available
to Common Shareholders
|
|
$
|
63.2
|
|
|
$
|
67.2
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
50.9
|
|
|
|
50.6
|
|
Diluted
|
|
|
51.1
|
|
|
|
50.8
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Common Share
|
|
$
|
1.24
|
|
|
$
|
1.33
|
|
Diluted Earnings Per
Common Share
|
|
$
|
1.24
|
|
|
$
|
1.32
|
|
Dividends Declared
Per Common Share
|
|
$
|
0.6225
|
|
|
$
|
0.5925
|
|
Condensed
Consolidated Balance Sheets – Unaudited
|
|
(In
Millions)
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2019
|
|
|
2019
|
|
|
2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
6,256.1
|
|
|
$
|
6,146.5
|
|
|
$
|
5,754.8
|
|
Less:
Accumulated depreciation and amortization
|
|
|
1,823.8
|
|
|
|
1,794.5
|
|
|
|
1,709.5
|
|
Net Utility
Plant
|
|
|
4,432.3
|
|
|
|
4,352.0
|
|
|
|
4,045.3
|
|
Non-utility
Property
|
|
|
518.7
|
|
|
|
477.8
|
|
|
|
254.5
|
|
Other
Investments
|
|
|
74.7
|
|
|
|
72.3
|
|
|
|
69.5
|
|
Total Other Property
and Investments
|
|
|
593.4
|
|
|
|
550.1
|
|
|
|
324.0
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
21.5
|
|
|
|
5.8
|
|
|
|
8.4
|
|
Accounts receivable,
net
|
|
|
451.3
|
|
|
|
289.6
|
|
|
|
556.7
|
|
Inventories
|
|
|
185.6
|
|
|
|
196.6
|
|
|
|
212.7
|
|
Other
|
|
|
118.0
|
|
|
|
122.5
|
|
|
|
127.5
|
|
Total Current
Assets
|
|
|
776.4
|
|
|
|
614.5
|
|
|
|
905.3
|
|
Deferred Charges and
Other Assets
|
|
|
2,158.9
|
|
|
|
2,102.6
|
|
|
|
1,957.6
|
|
Total
Assets
|
|
$
|
7,961.0
|
|
|
$
|
7,619.2
|
|
|
$
|
7,232.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
|
$
|
—
|
|
Common stock and
paid-in capital
|
|
|
1,557.8
|
|
|
|
1,556.8
|
|
|
|
1,533.5
|
|
Retained
earnings
|
|
|
803.1
|
|
|
|
775.5
|
|
|
|
752.9
|
|
Accumulated other
comprehensive loss
|
|
|
(16.9)
|
|
|
|
(31.3)
|
|
|
|
(1.8)
|
|
Total Shareholders'
Equity
|
|
|
2,586.0
|
|
|
|
2,543.0
|
|
|
|
2,284.6
|
|
Temporary
equity
|
|
|
4.1
|
|
|
|
3.4
|
|
|
|
—
|
|
Long-term debt (less
current portion)
|
|
|
2,484.4
|
|
|
|
2,082.6
|
|
|
|
1,992.0
|
|
Total
Capitalization
|
|
|
5,074.5
|
|
|
|
4,629.0
|
|
|
|
4,276.6
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
45.3
|
|
|
|
40.0
|
|
|
|
175.0
|
|
Notes
payable
|
|
|
518.9
|
|
|
|
743.2
|
|
|
|
626.1
|
|
Accounts
payable
|
|
|
307.9
|
|
|
|
301.5
|
|
|
|
430.9
|
|
Accrued liabilities
and other
|
|
|
380.4
|
|
|
|
384.1
|
|
|
|
331.4
|
|
Total Current
Liabilities
|
|
|
1,252.5
|
|
|
|
1,468.8
|
|
|
|
1,563.4
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
475.3
|
|
|
|
451.4
|
|
|
|
453.2
|
|
Pension and
postretirement benefit costs
|
|
|
260.7
|
|
|
|
264.8
|
|
|
|
182.1
|
|
Asset retirement
obligations
|
|
|
340.9
|
|
|
|
337.6
|
|
|
|
324.5
|
|
Regulatory
liabilities
|
|
|
417.8
|
|
|
|
399.0
|
|
|
|
363.4
|
|
Other
|
|
|
139.3
|
|
|
|
68.6
|
|
|
|
69.0
|
|
Total Deferred Credits
and Other Liabilities
|
|
|
1,634.0
|
|
|
|
1,521.4
|
|
|
|
1,392.2
|
|
Total Capitalization
and Liabilities
|
|
$
|
7,961.0
|
|
|
$
|
7,619.2
|
|
|
$
|
7,232.2
|
|
Condensed
Consolidated Statements of Cash Flows – Unaudited
|
|
(In
Millions)
|
|
Three Months
Ended
December
31,
|
|
|
|
2019
|
|
|
2018
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
67.0
|
|
|
$
|
67.3
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
47.5
|
|
|
|
44.2
|
|
Deferred income taxes
and investment tax credits
|
|
|
14.3
|
|
|
|
12.7
|
|
Changes in assets and
liabilities
|
|
|
(61.3)
|
|
|
|
(53.4)
|
|
Other
|
|
|
(3.0)
|
|
|
|
(0.4)
|
|
Net cash provided by
operating activities
|
|
|
64.5
|
|
|
|
70.4
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(192.3)
|
|
|
|
(206.8)
|
|
Business
acquisitions
|
|
|
—
|
|
|
|
(7.9)
|
|
Other
|
|
|
(0.3)
|
|
|
|
(1.5)
|
|
Net cash used in
investing activities
|
|
|
(192.6)
|
|
|
|
(216.2)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
510.0
|
|
|
|
100.0
|
|
Repayment of long-term
debt
|
|
|
(100.0)
|
|
|
|
(9.1)
|
|
(Repayment) issuance
of short-term debt, net
|
|
|
(224.2)
|
|
|
|
72.5
|
|
Issuance of common
stock
|
|
|
2.3
|
|
|
|
0.4
|
|
Dividends paid on
common stock
|
|
|
(34.7)
|
|
|
|
(28.8)
|
|
Dividends paid on
preferred stock
|
|
|
(3.7)
|
|
|
|
—
|
|
Other
|
|
|
(5.9)
|
|
|
|
(2.2)
|
|
Net cash provided by
financing activities
|
|
|
143.8
|
|
|
|
132.8
|
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents, and Restricted
Cash
|
|
|
15.7
|
|
|
|
(13.0)
|
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning of Period
|
|
|
5.8
|
|
|
|
21.4
|
|
Cash, Cash
Equivalents, and Restricted Cash at End of Period
|
|
$
|
21.5
|
|
|
$
|
8.4
|
|
Net Economic
Earnings and Reconciliation to GAAP
|
|
(In
Millions, except per share amounts)
|
|
Gas
Utility
|
|
|
Gas
Marketing
|
|
|
Other
|
|
|
Total
|
|
|
Per
Diluted
Common
Share (2)
|
|
Three Months Ended
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
67.1
|
|
|
$
|
3.3
|
|
|
$
|
(3.4)
|
|
|
$
|
67.0
|
|
|
$
|
1.24
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for ISRS
rulings
|
|
|
2.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.6
|
|
|
|
0.05
|
|
Unrealized loss on
energy-related derivatives
|
|
|
—
|
|
|
|
3.7
|
|
|
|
—
|
|
|
|
3.7
|
|
|
|
0.07
|
|
Income tax effect of
adjustments (1)
|
|
|
(0.6)
|
|
|
|
(0.9)
|
|
|
|
—
|
|
|
|
(1.5)
|
|
|
|
(0.03)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
69.1
|
|
|
$
|
6.1
|
|
|
$
|
(3.4)
|
|
|
$
|
71.8
|
|
|
$
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
(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, which includes reductions for cumulative preferred
dividends and participating shares.
|
Contribution
Margin and Reconciliation to GAAP
|
|
(In
Millions)
|
|
Gas
Utility
|
|
|
Gas
Marketing
|
|
|
Other
|
|
|
Eliminations
|
|
|
Consolidated
|
|
Three Months Ended
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
[GAAP]
|
|
$
|
96.3
|
|
|
$
|
4.4
|
|
|
$
|
1.6
|
|
|
$
|
—
|
|
|
$
|
102.3
|
|
Operation and
maintenance expenses
|
|
|
108.6
|
|
|
|
3.1
|
|
|
|
7.9
|
|
|
|
(3.0)
|
|
|
|
116.6
|
|
Depreciation and
amortization
|
|
|
46.4
|
|
|
|
—
|
|
|
|
1.1
|
|
|
|
—
|
|
|
|
47.5
|
|
Taxes, other than
income taxes
|
|
|
37.9
|
|
|
|
0.3
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
38.6
|
|
Less: Gross receipts
tax expense
|
|
|
(24.6)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(24.6)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
264.6
|
|
|
|
7.8
|
|
|
|
11.0
|
|
|
|
(3.0)
|
|
|
|
280.4
|
|
Natural and propane
gas costs
|
|
|
241.5
|
|
|
|
24.5
|
|
|
|
0.1
|
|
|
|
(4.2)
|
|
|
|
261.9
|
|
Gross receipts tax
expense
|
|
|
24.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24.6
|
|
Operating
Revenues
|
|
$
|
530.7
|
|
|
$
|
32.3
|
|
|
$
|
11.1
|
|
|
$
|
(7.2)
|
|
|
$
|
566.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spire Storage
EBITDA1 Reconciliation to GAAP
|
|
|
Period ended December
31,
|
|
(Millions)
|
2019
|
|
|
2018
|
|
Net Loss
[GAAP]
|
$
|
(1.9)
|
|
|
$
|
(2.9)
|
|
Add back:
|
|
|
|
|
|
|
|
Interest
charges
|
|
1.3
|
|
|
|
0.6
|
|
Income tax
benefit
|
|
(0.5)
|
|
|
|
(0.8)
|
|
Depreciation and
amortization
|
|
0.6
|
|
|
|
0.4
|
|
EBITDA
[Non-GAAP]
|
$
|
(0.5)
|
|
|
$
|
(2.7)
|
|
|
|
|
|
|
|
|
|
1
EBITDA is earnings before interest, income taxes, depreciation
and amortization.
|
|
Adjusted Long-Term
Capitalization Reconciliation to GAAP
|
|
|
December 31,
2019
|
|
|
September 30,
2019
|
|
(Millions)
|
Equity2
|
|
|
Debt
|
|
|
Total
|
|
|
Equity2
|
|
|
Debt
|
|
|
Total
|
|
Capitalization
|
$
|
2,590.1
|
|
|
$
|
2,484.4
|
|
|
$
|
5,074.5
|
|
|
$
|
2,546.4
|
|
|
$
|
2,082.6
|
|
|
$
|
4,629.0
|
|
Current portion of
long-term debt
|
|
—
|
|
|
|
45.3
|
|
|
|
45.3
|
|
|
|
—
|
|
|
|
40.0
|
|
|
|
40.0
|
|
Long-term
Capitalization [GAAP]
|
|
2,590.1
|
|
|
|
2,529.7
|
|
|
|
5,119.8
|
|
|
|
2,546.4
|
|
|
|
2,122.6
|
|
|
|
4,669.0
|
|
Reclassify 50% of
preferred stock
|
|
(121.0)
|
|
|
|
121.0
|
|
|
|
—
|
|
|
|
(121.0)
|
|
|
|
121.0
|
|
|
|
—
|
|
Adjusted Long-term
Capitalization [Non-GAAP]
|
$
|
2,469.1
|
|
|
$
|
2,650.7
|
|
|
$
|
5,119.8
|
|
|
$
|
2,425.4
|
|
|
$
|
2,243.6
|
|
|
$
|
4,669.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of adjusted
long-term capitalization
|
48.2%
|
|
|
51.8%
|
|
|
100.0%
|
|
|
51.9%
|
|
|
48.1%
|
|
|
100.0%
|
|
|
|
1
Temporary equity of $4.1 and $3.4 is included in equity as of
December 31, 2019 and September 30, 2019,
respectively.
|
|
View original content to download
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SOURCE Spire Inc.