ST. LOUIS, Nov. 18, 2020 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal 2020 full year
ended September 30. Highlights
include:
- Net income of $89 million
($1.44 per diluted share) compared to
$185 million ($3.52 per share) in fiscal 2019
- Net economic earnings (NEE)* of $208
million ($3.76 per share), up
from $195 million ($3.73 per share) a year ago
- Long-term NEE per share growth raised to 5-7%; expect fiscal
2021 NEE per share of $4.00 -
$4.20
- Capital spend plan through 2025 supports commitment to
infrastructure upgrades and sustainability
"Thanks to the commitment and resilience of our employees, Spire
delivered a strong year for our shareholders, customers and
communities. Even during the coronavirus, we focused on our
strategic priorities and achieved further gains in the safety and
integrity of our natural gas delivery system, customer service, and
reductions in methane emissions, in keeping with our sustainability
commitment to achieve carbon neutrality by midcentury. Even with
the immense challenges—health, social and economic—we pulled
together as a company to ensure the safety and well-being of our
workforce, customers and communities. And, I'm proud to say,
through it all, we applied our innovative thinking to establish new
ways to help our customers stay connected to the energy they need,"
said Suzanne Sitherwood, president
and chief executive officer of Spire. "Looking ahead, we'll
continue to invest in and innovate around enhancing our operating
performance including customer service, and delivering on our ESG
commitments, while achieving targeted earnings growth of 5-7%."
Fiscal Year
Results
|
|
Year Ended
September 30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Net Economic
Earnings* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
213.4
|
|
|
$
|
199.8
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
9.1
|
|
|
|
19.4
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(14.7)
|
|
|
|
(24.1)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
207.8
|
|
|
$
|
195.1
|
|
|
$
|
3.76
|
|
|
$
|
3.73
|
|
Impairments,
pre-tax
|
|
|
(148.6)
|
|
|
|
—
|
|
|
|
(2.89)
|
|
|
|
—
|
|
Provision for ISRS
rulings, pre-tax
|
|
|
—
|
|
|
|
(12.2)
|
|
|
|
—
|
|
|
|
(0.23)
|
|
All other adjustments,
including tax effects
|
|
|
29.4
|
|
|
|
1.7
|
|
|
|
0.57
|
|
|
|
0.02
|
|
Net
Income
|
|
$
|
88.6
|
|
|
$
|
184.6
|
|
|
$
|
1.44
|
|
|
$
|
3.52
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
51.3
|
|
|
|
50.8
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For fiscal 2020, we reported consolidated net income of
$88.6 million ($1.44 per diluted share) compared to $184.6 million ($3.52 per share) in the prior-year period. The
decrease reflects after-tax impairment charges of $117.3 million ($2.28 per share) recorded in the third quarter of
fiscal 2020.
On a net economic earnings (NEE) basis, Spire reported
$207.8 million ($3.76 per share), up from $195.1 million ($3.73 per share) a year ago. This increase
reflects improved performance at our Gas Utility segment, along
with a higher contribution from Spire STL Pipeline and improved
operating results from Spire Storage. These benefits were partially
offset by lower Gas Marketing earnings. Net income and NEE per
share were both impacted by the preferred dividends and the common
stock issued over the last twelve months.
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 impairments and certain
regulatory, legislative, or GAAP standard-setting actions.
Gas Utility
The Gas Utility segment includes the regulated distribution
operations of our five gas utilities across Alabama, Mississippi and Missouri. For fiscal 2020, this segment
reported NEE of $213.4 million, up
from $199.8 million a year ago. This
increase reflects a higher contribution margin and lower operating
expenses, partially offset by higher depreciation expense.
Fiscal 2020 contribution margin increased by $33.6 million, reflecting an increase of
$20.2 million in Infrastructure
System Replacement Surcharge (ISRS) run-rate revenues (and a
$10.0 million net year-over-year
favorable impact from the provisions for ISRS rulings booked in
fiscal 2019), and rate adjustments under the Rate Stabilization and
Equalization (RSE) mechanism at Spire Alabama. These positive
factors were partially offset by $5.4
million lower volumetric margins (net of weather
mitigation).
Operation and maintenance (O&M) expenses in fiscal 2020
decreased by $20.4 million compared
to the prior-year period, including the impact of a $9.1 million year-over-year reclassification
of certain postretirement benefit costs to other income and expense
(no impact on net income). Excluding this adjustment, O&M
expenses decreased by $11.3 million,
primarily due to lower bad debt expense in Spire Alabama and lower
operations and employee-related costs. These amounts reflect the
deferral of certain expenses for Spire Missouri pursuant to the
Accounting Authority Order (AAO) from the Missouri Public Service
Commission (MoPSC) discussed in Regulatory Matters later in this
release. Depreciation and amortization expense rose by $10.3 million due to ongoing capital
investment across our utilities.
Gas Marketing
The Gas Marketing segment includes the results of Spire
Marketing, which provides natural gas marketing services primarily
across the central and southern United
States. Fiscal 2020 Gas Marketing NEE, which excludes
mark-to-market and fair value adjustments, was $9.1 million, a decrease of $10.3 million from the prior year. Current year
results reflect the benefit of higher volumes that was more than
offset by higher costs incurred in fiscal 2020 for incremental
storage capacity (whose value will not be realized until fiscal
2021), as well as less favorable market conditions.
Other
Other gas-related operations and corporate costs were
$14.7 million, a $9.4 million improvement from a year ago. The
improvement was driven by an increase in earnings from Spire STL
Pipeline and improved operating results from Spire Storage.
Fourth Quarter
Results
|
|
Three Months Ended
September 30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Net Economic Loss*
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
(8.4)
|
|
|
$
|
(20.9)
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
(2.2)
|
|
|
|
1.6
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(4.7)
|
|
|
|
(4.4)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(15.3)
|
|
|
$
|
(23.7)
|
|
|
$
|
(0.37)
|
|
|
$
|
(0.54)
|
|
Provision for ISRS
rulings, pre-tax
|
|
|
—
|
|
|
|
(12.2)
|
|
|
|
—
|
|
|
|
(0.23)
|
|
All other adjustments,
including tax effects
|
|
|
(4.4)
|
|
|
|
1.6
|
|
|
|
(0.08)
|
|
|
|
0.03
|
|
Net
Loss
|
|
$
|
(19.7)
|
|
|
$
|
(34.3)
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.74)
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
51.6
|
|
|
|
50.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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 the fourth quarter
of fiscal 2020, we reported a consolidated net loss of $19.7 million ($0.45 per diluted share), compared to a prior
year net loss of $34.3 million
($0.74 per share) that included a
$9.3 million after-tax provision
for the Missouri ISRS rulings that was settled earlier in fiscal
2020.
On a NEE basis, the quarterly loss was $15.3 million ($0.37 per share) compared to a loss of
$23.7 million ($0.54 per share) in the prior-year period. The
lower loss is due to improved results from Gas Utility, partially
offset by a loss at Spire Marketing.
Gas Utility
Gas Utility reported a loss on a NEE basis of $8.4 million, compared to a loss of $20.9 million in the prior year. Excluding the
prior year impact of ISRS rulings, a higher contribution margin and
lower O&M expenses were partially offset by higher
depreciation.
Contribution margin increased $20.5
million over the prior-year period, or $8.3 million after removing the impact of the
prior year ISRS ruling provision, reflecting an increase of
$5.0 million in ISRS run-rate
revenues, along with higher usage and modest customer growth
totaling $3.1 million.
O&M expenses of $101.4 million
were down $10.0 million compared to
the prior year as a result of lower bad debt in Spire Alabama and
lower operations, outside services, and employee-related costs.
Spire Missouri deferred bad debt
cost increases related to COVID-19, under the AAO (see discussion
in Regulatory Matters). Depreciation and amortization expense
increased by $2.3 million from last
year, reflecting continued capital investment.
Gas Marketing
Fourth quarter net economic loss was $2.2
million, compared to NEE of $1.6
million in the prior year. Performance in the current-year
period reflects the costs incurred in 2020 for incremental storage
capacity, whose value will not be realized until the upcoming
winter season in fiscal 2021, as well as less favorable market
conditions.
Other
Other gas-related operations and corporate costs on a NEE basis
for the fourth quarter were $4.7 million in fiscal 2020, essentially
flat with a year ago, as higher corporate costs were offset by
improved results from Spire Storage.
Earnings Guidance and Outlook
We have increased our long-term NEE per share earnings growth
target to 5-7%, reflecting the expectation of continued consistent
growth of our regulated businesses and improved contributions from
Spire Marketing.
We have also increased our targeted capital investment to
$3.0 billion for the 5-year period
now extending to 2025. This plan, focused on infrastructure
upgrades, technology and new business investments in our gas
utilities, supports our commitments to provide safe, reliable and
sustainable energy to our customers. These investments are
anticipated to drive annual rate base growth of 7-8%, supported by
pipeline replacement programs of up to 15 years in length. We
expect more than 80% of our utility spend to be recovered in rates
with minimal lag under regulatory mechanisms or reflected in
earnings.
Consistent with our new long-term growth target, we expect
fiscal 2021 NEE per share to be in the range of $4.00-$4.20
reflecting growth in our gas utilities and a higher contribution
from Spire Marketing due to expansion of the business and the
benefit of storage positions entered into during fiscal 2020.
Capital expenditures for fiscal 2021 are expected to be
$590 million.
Regulatory Matters
Resolution of Missouri ISRS matters
As previously reported, legislation clarifying the eligibility
of pipeline replacement investments for ISRS recovery was passed in
Missouri, effective August 28, 2020. Going forward, qualification for
ISRS recovery will be based on safety criteria that calls for
older, more leak-prone infrastructure (cast iron, bare steel) to be
replaced.
Spire Missouri has successfully
resolved the ISRS cases that had been appealed by the Office of
Public Counsel, with no change to the amounts authorized to be
collected. We have also been authorized additional annualized ISRS
revenues for two requests filed with the MoPSC in 2020, including
$11.1 million effective
May 25, 2020 (February filing) and
$7.0 million approved on November 12, 2020 (August filing). Spire
Missouri's annualized ISRS
run-rate is now $47.3
million.
Missouri authorization to defer
COVID-19 costs
On October 21, 2020, the MoPSC
approved our request for an Accounting Authority Order (AAO) that
allows Spire Missouri to track and defer extraordinary costs
associated with COVID-19. As a result, Spire Missouri recorded net
cost deferrals and established an associated regulatory asset of
$3.8 million as of September 30, 2020, offsetting costs incurred
earlier in the fiscal year for bad debts, enhanced cleaning and
protective equipment required to ensure the safety of our employees
and customers. These costs were offset, in part, by lower costs for
travel, meals and training. Additionally, the AAO asks Spire
Missouri to track lost fee revenues with these deferred costs and
tracked revenues to be considered for rate recovery in our next
general rate case.
Missouri rate case filing
Spire Missouri anticipates it
will file its next rate case before the end of calendar year 2020,
based on a required 60-day advance notice it filed with the MoPSC
on October 8, 2020.
Since our last rate case, we have remained focused on providing
even better service to customers while keeping our rates lower than
they were 15 years ago. Although not required to file a rate case
until October of next year, we determined now was the right time to
file, given the impact of our rate base growth and other
developments.
- To make our system greener, safer and more reliable for our
customers and communities, we have invested more than $850 million to modernize our gas infrastructure
with the support of the MoPSC.
- We plan to offer new programs and options that our customers
want and expect, including renewable natural gas (RNG) to help us
achieve carbon neutrality by midcentury.
- Our customers are benefitting from a number of service
enhancements, including an online portal, technology platform
upgrades, and deployment of advanced metering.
The decision to file a rate case now also includes other
considerations, including:
- Spire Missouri West has hit its ISRS cap. We are seeking to
reset the cap in order to continue to get timely recovery of the
investment in our critically important infrastructure upgrade
work.
- It is time to join both sides of the state under one Spire
Missouri tariff, to reflect the integrated utility we are today.
Alabama
On October 26, 2020, Spire Alabama
made its annual RSE rate filing with the Alabama Public Service
Commission (APSC), presenting the utility's budget for the fiscal
year ending September 30, 2021,
including net income and a calculation of allowed return on average
common equity (ROE). In fiscal 2020, Spire Alabama operated under
an infrastructure replacement incentive called the Accelerated
Infrastructure Modernization (AIM) mechanism. This incentive
provides for a 10 basis-point increase in the allowed ROE of 10.4
percent in fiscal 2021 if a prescribed number of pipeline miles
were replaced in fiscal 2020. Spire Alabama exceeded the threshold miles to be
eligible for the AIM incentive, and accordingly, filed for a 10.5
percent ROE for fiscal 2021.
On October 23, 2020, Spire Gulf also made its annual RSE
rate filing with the APSC based on its budget for fiscal 2021 and
an allowed ROE of 10.7 percent.
The filings are currently being reviewed by the APSC, and we
anticipate that new rates will be effective on or about
December 1, 2020.
Balance Sheets and Cash Flow
In fiscal 2020, we maintained a solid capital structure and
ample liquidity. Short-term borrowings outstanding at September 30, 2020, were $648.0 million, down from $743.2 million at September 30, 2019, reflecting stronger cash flow
and the use of proceeds from long-term debt financing. Our working
capital needs are seasonal in nature and typically peak during the
winter. We retain significant capacity in our revolving credit
facility and related commercial paper program to meet our liquidity
needs. Spire had approximately $475
million of available liquidity at year end.
Net cash provided by operating activities was $469.9 million for the twelve months ended
September 30, 2020, up from
$450.9 million for fiscal 2019. The
increase was largely driven by fluctuations in working capital
balances.
Capital expenditures for fiscal 2020 were $638.4 million, down from $823.3 million in the prior year due to
decreases in investment in Spire STL Pipeline, which was completed
and placed into service in late 2019, and lower expenditures at
Spire Storage. Capital expenditures for our gas utilities of
$548 million were focused on pipeline
upgrades that enabled us to further reduce methane emissions, as
well as technology upgrades and new business.
For additional details on Spire's results for the fourth quarter
and full year of fiscal 2020, please see the accompanying unaudited
Condensed Consolidated Statements of Income, Balance Sheets, and
Statements of Cash Flows.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2020 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, Nov.
18
|
|
|
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 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 Nov. 18 until
Dec. 18, 2020, by dialing
877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The
replay access code is 10148490.
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 includes the non-GAAP financial measures of
"net economic earnings," "net economic earnings per share,"
"adjusted long-term capitalization," 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
impairments and other non-recurring or unusual items such as
certain regulatory, legislative, or GAAP standard-setting actions.
In fiscal 2019, other items included a provision for refunds to
customers of amounts previously collected under MoPSC approved
orders as a result of the November
2019 ISRS rulings against Spire Missouri. In fiscal 2020,
adjustments for ISRS revenues reflect the regulatory settlement
reached in the third quarter, such that the related GAAP provision
for customer credit in fiscal 2020 is reflected in net economic
earnings. 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 gross receipts
taxes. Adjusted long-term capitalization treats preferred stock as
50% debt and 50% equity, as rating agencies would treat preferred
stock. 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.
Condensed Consolidated Statements of Income – Unaudited
(In
Millions, except per share amounts)
|
|
Three Months
Ended
September
30,
|
|
|
Year
Ended
September
30,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
251.9
|
|
|
$
|
225.6
|
|
|
$
|
1,855.4
|
|
|
$
|
1,952.4
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
64.2
|
|
|
|
57.3
|
|
|
|
696.1
|
|
|
|
840.3
|
|
Operation and
maintenance
|
|
|
111.4
|
|
|
|
121.2
|
|
|
|
458.6
|
|
|
|
474.1
|
|
Depreciation and
amortization
|
|
|
50.5
|
|
|
|
46.8
|
|
|
|
197.3
|
|
|
|
181.7
|
|
Taxes, other than
income taxes
|
|
|
25.7
|
|
|
|
25.9
|
|
|
|
148.4
|
|
|
|
154.0
|
|
Impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
148.6
|
|
|
|
—
|
|
Total Operating
Expenses
|
|
|
251.8
|
|
|
|
251.2
|
|
|
|
1,649.0
|
|
|
|
1,650.1
|
|
Operating Income
(Loss)
|
|
|
0.1
|
|
|
|
(25.6)
|
|
|
|
206.4
|
|
|
|
302.3
|
|
Interest Expense,
Net
|
|
|
25.2
|
|
|
|
25.3
|
|
|
|
105.5
|
|
|
|
104.4
|
|
Other Income,
Net
|
|
|
0.9
|
|
|
|
5.9
|
|
|
|
0.1
|
|
|
|
21.2
|
|
(Loss) Income Before
Income Taxes
|
|
|
(24.2)
|
|
|
|
(45.0)
|
|
|
|
101.0
|
|
|
|
219.1
|
|
Income Tax (Benefit)
Expense
|
|
|
(4.5)
|
|
|
|
(10.7)
|
|
|
|
12.4
|
|
|
|
34.5
|
|
Net (Loss)
Income
|
|
|
(19.7)
|
|
|
|
(34.3)
|
|
|
|
88.6
|
|
|
|
184.6
|
|
Provision for
preferred dividends
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
14.8
|
|
|
|
5.3
|
|
(Loss) income
allocated to participating securities
|
|
|
(0.1)
|
|
|
|
(0.1)
|
|
|
|
0.1
|
|
|
|
0.4
|
|
Net (Loss) Income
Available to Common Shareholders
|
|
$
|
(23.3)
|
|
|
$
|
(37.9)
|
|
|
$
|
73.7
|
|
|
$
|
178.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
51.5
|
|
|
|
50.8
|
|
|
|
51.2
|
|
|
|
50.7
|
|
Diluted
|
|
|
51.6
|
|
|
|
50.9
|
|
|
|
51.3
|
|
|
|
50.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (Loss) Earnings
Per Share
|
|
$
|
(0.45)
|
|
|
$
|
(0.75)
|
|
|
$
|
1.44
|
|
|
$
|
3.53
|
|
Diluted (Loss)
Earnings Per Share
|
|
|
(0.45)
|
|
|
|
(0.74)
|
|
|
|
1.44
|
|
|
|
3.52
|
|
Dividends Declared
Per Common Share
|
|
|
0.6225
|
|
|
|
0.5925
|
|
|
|
2.49
|
|
|
|
2.37
|
|
Condensed Consolidated Balance Sheets – Unaudited
(In
Millions)
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
6,766.3
|
|
|
$
|
6,146.5
|
|
Less:
Accumulated depreciation and amortization
|
|
|
2,086.2
|
|
|
|
1,794.5
|
|
Net Utility
Plant
|
|
|
4,680.1
|
|
|
|
4,352.0
|
|
Other Property and
Investments
|
|
|
504.0
|
|
|
|
550.1
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
4.1
|
|
|
|
5.8
|
|
Accounts receivable,
net
|
|
|
253.3
|
|
|
|
289.6
|
|
Inventories
|
|
|
191.5
|
|
|
|
196.6
|
|
Other
|
|
|
141.7
|
|
|
|
122.5
|
|
Total Current
Assets
|
|
|
590.6
|
|
|
|
614.5
|
|
Deferred Charges and
Other Assets:
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
1,171.6
|
|
|
|
1,171.6
|
|
Other deferred charges
and other assets
|
|
|
1,294.9
|
|
|
|
931.0
|
|
Total Deferred Charges
and Other Assets
|
|
|
2,466.5
|
|
|
|
2,102.6
|
|
Total
Assets
|
|
$
|
8,241.2
|
|
|
$
|
7,619.2
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
Common stock and
paid-in capital
|
|
|
1,600.8
|
|
|
|
1,556.8
|
|
Retained
earnings
|
|
|
720.7
|
|
|
|
775.5
|
|
Accumulated other
comprehensive loss
|
|
|
(41.2)
|
|
|
|
(31.3)
|
|
Total Shareholders'
Equity
|
|
|
2,522.3
|
|
|
|
2,543.0
|
|
Temporary
equity
|
|
|
3.4
|
|
|
|
3.4
|
|
Long-term debt (less
current portion)
|
|
|
2,423.7
|
|
|
|
2,082.6
|
|
Total
Capitalization
|
|
|
4,949.4
|
|
|
|
4,629.0
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
60.4
|
|
|
|
40.0
|
|
Notes
payable
|
|
|
648.0
|
|
|
|
743.2
|
|
Accounts
payable
|
|
|
243.3
|
|
|
|
301.5
|
|
Accrued liabilities
and other
|
|
|
497.5
|
|
|
|
384.1
|
|
Total Current
Liabilities
|
|
|
1,449.2
|
|
|
|
1,468.8
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
511.4
|
|
|
|
451.4
|
|
Other deferred credits
and other liabilities
|
|
|
1,331.2
|
|
|
|
1,070.0
|
|
Total Deferred Credits
and Other Liabilities
|
|
|
1,842.6
|
|
|
|
1,521.4
|
|
Total Capitalization
and Liabilities
|
|
$
|
8,241.2
|
|
|
$
|
7,619.2
|
|
Condensed Consolidated Statements of Cash Flows – Unaudited
(In
Millions)
|
|
Year
Ended
September
30,
|
|
|
|
2020
|
|
|
2019
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
88.6
|
|
|
$
|
184.6
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
197.3
|
|
|
|
181.7
|
|
Deferred income taxes
and investment tax credits
|
|
|
9.0
|
|
|
|
31.8
|
|
Changes in assets and
liabilities
|
|
|
166.8
|
|
|
|
56.8
|
|
Other
|
|
|
8.2
|
|
|
|
(4.0)
|
|
Net cash provided by
operating activities
|
|
|
469.9
|
|
|
|
450.9
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(638.4)
|
|
|
|
(823.3)
|
|
Business
acquisitions
|
|
|
—
|
|
|
|
(7.9)
|
|
Other
|
|
|
6.8
|
|
|
|
(7.1)
|
|
Net cash used in
investing activities
|
|
|
(631.6)
|
|
|
|
(838.3)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Issuance of preferred
stock
|
|
|
—
|
|
|
|
242.0
|
|
Issuance of long-term
debt
|
|
|
510.0
|
|
|
|
230.0
|
|
Repayment of long-term
debt
|
|
|
(147.0)
|
|
|
|
(184.1)
|
|
(Repayment) issuance
of short-term debt, net
|
|
|
(95.2)
|
|
|
|
189.6
|
|
Issuance of common
stock
|
|
|
41.1
|
|
|
|
19.5
|
|
Dividends paid on
common stock
|
|
|
(128.0)
|
|
|
|
(119.0)
|
|
Dividends paid on
preferred stock
|
|
|
(14.8)
|
|
|
|
(3.4)
|
|
Other
|
|
|
(6.1)
|
|
|
|
(2.8)
|
|
Net cash provided by
financing activities
|
|
|
160.0
|
|
|
|
371.8
|
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash,
Cash Equivalents, and Restricted Cash
|
|
|
(1.7)
|
|
|
|
(15.6)
|
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning of Year
|
|
|
5.8
|
|
|
|
21.4
|
|
Cash, Cash
Equivalents, and Restricted Cash at End of Year
|
|
$
|
4.1
|
|
|
$
|
5.8
|
|
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
September 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
[GAAP]
|
|
$
|
(8.4)
|
|
|
$
|
(6.6)
|
|
|
$
|
(4.7)
|
|
|
$
|
(19.7)
|
|
|
$
|
(0.45)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
(0.1)
|
|
|
|
5.8
|
|
|
|
—
|
|
|
|
5.7
|
|
|
|
0.11
|
|
Income tax effect of
adjustments (1)
|
|
|
0.1
|
|
|
|
(1.4)
|
|
|
|
—
|
|
|
|
(1.3)
|
|
|
|
(0.03)
|
|
Net Economic Loss
[Non-GAAP]
|
|
$
|
(8.4)
|
|
|
$
|
(2.2)
|
|
|
$
|
(4.7)
|
|
|
$
|
(15.3)
|
|
|
$
|
(0.37)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
[GAAP]
|
|
$
|
(30.2)
|
|
|
$
|
0.3
|
|
|
$
|
(4.4)
|
|
|
$
|
(34.3)
|
|
|
$
|
(0.74)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for ISRS
rulings
|
|
|
12.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12.2
|
|
|
|
0.23
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
1.8
|
|
|
|
—
|
|
|
|
1.8
|
|
|
|
0.04
|
|
Income tax effect of
adjustments (1)
|
|
|
(2.9)
|
|
|
|
(0.5)
|
|
|
|
—
|
|
|
|
(3.4)
|
|
|
|
(0.07)
|
|
Net Economic
(Loss) Earnings [Non-GAAP]
|
|
$
|
(20.9)
|
|
|
$
|
1.6
|
|
|
$
|
(4.4)
|
|
|
$
|
(23.7)
|
|
|
$
|
(0.54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
213.6
|
|
|
$
|
7.0
|
|
|
$
|
(132.0)
|
|
|
$
|
88.6
|
|
|
$
|
1.44
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
losses
|
|
|
—
|
|
|
|
—
|
|
|
|
148.6
|
|
|
|
148.6
|
|
|
|
2.89
|
|
Fair value and timing
adjustments
|
|
|
(0.3)
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
2.5
|
|
|
|
0.05
|
|
Income tax effect of
adjustments (1)
|
|
|
0.1
|
|
|
|
(0.7)
|
|
|
|
(31.3)
|
|
|
|
(31.9)
|
|
|
|
(0.62)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
213.4
|
|
|
$
|
9.1
|
|
|
$
|
(14.7)
|
|
|
$
|
207.8
|
|
|
$
|
3.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
190.5
|
|
|
$
|
18.5
|
|
|
$
|
(24.4)
|
|
|
$
|
184.6
|
|
|
$
|
3.52
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for ISRS
rulings
|
|
|
12.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12.2
|
|
|
|
0.23
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
1.2
|
|
|
|
—
|
|
|
|
1.2
|
|
|
|
0.03
|
|
Acquisition,
divestiture and restructuring activities
|
|
|
—
|
|
|
|
—
|
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
0.01
|
|
Income tax effect of
adjustments (1)
|
|
|
(2.9)
|
|
|
|
(0.3)
|
|
|
|
(0.1)
|
|
|
|
(3.3)
|
|
|
|
(0.06)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
199.8
|
|
|
$
|
19.4
|
|
|
$
|
(24.1)
|
|
|
$
|
195.1
|
|
|
$
|
3.73
|
|
|
(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
September 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
4.7
|
|
|
$
|
(8.9)
|
|
|
$
|
4.3
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
Operation and
maintenance expenses
|
|
|
101.4
|
|
|
|
2.9
|
|
|
|
10.2
|
|
|
|
(3.1)
|
|
|
|
111.4
|
|
Depreciation and
amortization
|
|
|
48.5
|
|
|
|
0.3
|
|
|
|
1.7
|
|
|
|
—
|
|
|
|
50.5
|
|
Taxes, other than
income taxes
|
|
|
25.2
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
25.7
|
|
Less: Gross receipts
tax expense
|
|
|
(11.7)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(11.8)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
168.1
|
|
|
|
(5.6)
|
|
|
|
16.5
|
|
|
|
(3.1)
|
|
|
|
175.9
|
|
Natural gas
costs
|
|
|
56.5
|
|
|
|
16.2
|
|
|
|
0.1
|
|
|
|
(8.6)
|
|
|
|
64.2
|
|
Gross receipts tax
expense
|
|
|
11.7
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11.8
|
|
Operating
Revenues
|
|
$
|
236.3
|
|
|
$
|
10.7
|
|
|
$
|
16.6
|
|
|
$
|
(11.7)
|
|
|
$
|
251.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income [GAAP]
|
|
$
|
(23.8)
|
|
|
$
|
0.9
|
|
|
$
|
(2.7)
|
|
|
$
|
—
|
|
|
$
|
(25.6)
|
|
Operation and
maintenance expenses
|
|
|
111.4
|
|
|
|
3.2
|
|
|
|
9.3
|
|
|
|
(2.7)
|
|
|
|
121.2
|
|
Depreciation and
amortization
|
|
|
46.2
|
|
|
|
0.1
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
46.8
|
|
Taxes, other than
income taxes
|
|
|
25.4
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
25.9
|
|
Less: Gross receipts
tax expense
|
|
|
(11.6)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(11.7)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
147.6
|
|
|
|
4.3
|
|
|
|
7.4
|
|
|
|
(2.7)
|
|
|
|
156.6
|
|
Natural gas
costs
|
|
|
48.0
|
|
|
|
9.7
|
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
|
|
57.3
|
|
Gross receipts tax
expense
|
|
|
11.6
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11.7
|
|
Operating
Revenues
|
|
$
|
207.2
|
|
|
$
|
14.1
|
|
|
$
|
7.2
|
|
|
$
|
(2.9)
|
|
|
$
|
225.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
334.3
|
|
|
$
|
9.3
|
|
|
$
|
(137.2)
|
|
|
$
|
—
|
|
|
$
|
206.4
|
|
Operation and
maintenance expenses
|
|
|
421.3
|
|
|
|
11.8
|
|
|
|
38.2
|
|
|
|
(12.7)
|
|
|
|
458.6
|
|
Depreciation and
amortization
|
|
|
189.7
|
|
|
|
0.6
|
|
|
|
7.0
|
|
|
|
—
|
|
|
|
197.3
|
|
Taxes, other than
income taxes
|
|
|
146.5
|
|
|
|
1.1
|
|
|
|
0.8
|
|
|
|
—
|
|
|
|
148.4
|
|
Impairment
losses
|
|
|
—
|
|
|
|
—
|
|
|
|
148.6
|
|
|
|
—
|
|
|
|
148.6
|
|
Less: Gross receipts
tax expense
|
|
|
(91.1)
|
|
|
|
(0.4)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(91.5)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
1,000.7
|
|
|
|
22.4
|
|
|
|
57.4
|
|
|
|
(12.7)
|
|
|
|
1,067.8
|
|
Natural gas
costs
|
|
|
660.2
|
|
|
|
65.1
|
|
|
|
0.4
|
|
|
|
(29.6)
|
|
|
|
696.1
|
|
Gross receipts tax
expense
|
|
|
91.1
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
91.5
|
|
Operating
Revenues
|
|
$
|
1,752.0
|
|
|
$
|
87.9
|
|
|
$
|
57.8
|
|
|
$
|
(42.3)
|
|
|
$
|
1,855.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
293.4
|
|
|
$
|
23.2
|
|
|
$
|
(14.3)
|
|
|
$
|
—
|
|
|
$
|
302.3
|
|
Operation and
maintenance expenses
|
|
|
441.7
|
|
|
|
11.7
|
|
|
|
31.6
|
|
|
|
(10.9)
|
|
|
|
474.1
|
|
Depreciation and
amortization
|
|
|
179.4
|
|
|
|
0.1
|
|
|
|
2.2
|
|
|
|
—
|
|
|
|
181.7
|
|
Taxes, other than
income taxes
|
|
|
151.7
|
|
|
|
0.8
|
|
|
|
1.5
|
|
|
|
—
|
|
|
|
154.0
|
|
Less: Gross receipts
tax expense
|
|
|
(99.1)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(99.3)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
967.1
|
|
|
|
35.6
|
|
|
|
21.0
|
|
|
|
(10.9)
|
|
|
|
1,012.8
|
|
Natural gas
costs
|
|
|
794.6
|
|
|
|
47.9
|
|
|
|
0.5
|
|
|
|
(2.7)
|
|
|
|
840.3
|
|
Gross receipts tax
expense
|
|
|
99.1
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
99.3
|
|
Operating
Revenues
|
|
$
|
1,860.8
|
|
|
$
|
83.7
|
|
|
$
|
21.5
|
|
|
$
|
(13.6)
|
|
|
$
|
1,952.4
|
|
Adjusted Long-Term Capitalization and Reconciliation to GAAP
|
September 30,
2020
|
|
|
September 30,
2019
|
|
(Millions)
|
Equity1
|
|
|
Debt
|
|
|
Total
|
|
|
Equity1
|
|
|
Debt
|
|
|
Total
|
|
Capitalization
|
$
|
2,525.7
|
|
|
$
|
2,423.7
|
|
|
$
|
4,949.4
|
|
|
$
|
2,546.4
|
|
|
$
|
2,082.6
|
|
|
$
|
4,629.0
|
|
Current portion of
long-term debt
|
|
—
|
|
|
|
60.4
|
|
|
|
60.4
|
|
|
|
—
|
|
|
|
40.0
|
|
|
|
40.0
|
|
Long-term
Capitalization [GAAP]
|
|
2,525.7
|
|
|
|
2,484.1
|
|
|
|
5,009.8
|
|
|
|
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]
|
$
|
2,404.7
|
|
|
$
|
2,605.1
|
|
|
$
|
5,009.8
|
|
|
$
|
2,425.4
|
|
|
$
|
2,243.6
|
|
|
$
|
4,669.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of adjusted
long-term capitalization
|
48.0%
|
|
|
52.0%
|
|
|
100.0%
|
|
|
51.9%
|
|
|
48.1%
|
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Includes temporary equity of $3.4 as of September 30, 2020 and
2019.
|
|
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
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/spire-reports-solid-fy20-results-301175443.html
SOURCE Spire Inc.