ST. LOUIS, May 7, 2021 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal second quarter
ended March 31, 2021. Highlights
include:
- Second quarter fiscal 2021 net income of $187.4 million ($3.55 per diluted share), compared to
$133.6 million ($2.54 per share) in the prior year
- Net economic earnings* (NEE) of $195.6
million ($3.71 per share), up
from $144.0 million ($2.75 per share) a year ago, reflecting strong
Spire Marketing performance
- Results for Spire Marketing include value created during the
February cold weather event, and our fiscal 2021 NEE guidance range
has been increased to $4.30 -
$4.50 per share
"During February's severe winter weather, teams across Spire
ensured our communities maintained access to the energy they needed
to stay safe and warm, while doing everything we could to minimize
impact to cost. At the same time, our Spire Marketing business was
well positioned to meet customer needs, while also capturing
additional value," said Suzanne
Sitherwood, president and chief executive officer. "Our
exceptional operating performance reflects thoughtful preparation
and the benefits of our investments in natural gas supply, storage
resources and the Spire STL Pipeline. We are also delivering on our
commitment to be a carbon neutral company by midcentury, and will
be issuing an update on our ESG progress next week in our third
annual Corporate Social Responsibility report."
Second Quarter
Results
|
|
Three Months Ended
March 31,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net Economic
Earnings* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
159.7
|
|
|
$
|
144.3
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
39.8
|
|
|
|
5.1
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(3.9)
|
|
|
|
(5.4)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
195.6
|
|
|
$
|
144.0
|
|
|
$
|
3.71
|
|
|
$
|
2.75
|
|
Missouri regulatory
adjustment (Court Ruling), pre-
tax
|
|
|
9.0
|
|
|
|
—
|
|
|
|
0.17
|
|
|
|
—
|
|
Other net economic
earnings adjustments, pre-tax
|
|
|
(20.1)
|
|
|
|
(13.8)
|
|
|
|
(0.39)
|
|
|
|
(0.27)
|
|
Income tax effect of
pre-tax adjustments
|
|
|
2.9
|
|
|
|
3.4
|
|
|
|
0.06
|
|
|
|
0.06
|
|
Net
Income
|
|
$
|
187.4
|
|
|
$
|
133.6
|
|
|
$
|
3.55
|
|
|
$
|
2.54
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
51.7
|
|
|
|
51.1
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
Consolidated net income for the three months ended March 31, 2021, the second quarter of our fiscal
year, was $187.4 million
($3.55 per diluted share), up from
$133.6 million ($2.54 per share) a year ago.
Net economic earnings (NEE) for the second quarter of fiscal
2021 was $195.6 million ($3.71 per share) up from $144.0 million ($2.75 per share) last year, reflecting especially
strong Gas Marketing performance, improved performance at our gas
utilities and lower interest expense.
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
impairments and other non-recurring or unusual items such as
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. Second quarter NEE was $159.7 million, up from $144.3 million in the prior year, reflecting a
higher contribution margin and lower expenses after removing the
impact of the reclassification of certain pension costs to "Other
Income (Expense)" below the operating income line.
Contribution margin increased $22.0
million, reflecting higher usage of $7.3 million. Degree days in the current year
quarter were about 2% warmer than normal in Missouri and Alabama, but 11% and 32% colder versus the
prior year, respectively, resulting in higher usage compared to the
prior year. Margin also benefited from higher Infrastructure System
Replacement Surcharge (ISRS) revenues of $6.6 million (including an ISRS rulings provision
of $2.2 million last year), and
favorable rate adjustments at Spire Alabama of $4.3 million.
Operation and maintenance (O&M) expenses of $104.0 million for the quarter were $8.2 million higher than the same period a year
ago. However, after removing a $19.1
million year-over-year impact from the reclassification of
certain pension costs to below the operating income line (no bottom
line impact), and a court ruling that reversed $9.0 million of pension charge due to disallowed
costs in Spire Missouri's last rate case, O&M expenses were
down $1.9 million. This decrease
reflects lower costs for operational, administrative and
employee-related expenses. Depreciation and amortization expenses
increased $2.5 million from last
year, reflecting incremental capital investment. Taxes other than
income taxes increased $4.7 million
due to higher gross receipts taxes.
Gas Marketing
The Gas Marketing segment includes the results of Spire
Marketing, which provides natural gas marketing services across
most of the United States. Second
quarter NEE was $39.8 million, up
from $5.1 million in the prior
year. During the quarter, Spire Marketing saw significantly higher
volumes and margins as a result of extreme market conditions due to
the February cold weather event, including monetizing incremental
storage capacity.
Other
Other gas-related operations and corporate costs on an NEE basis
for the second quarter were $3.9
million in fiscal 2021, compared to $5.4 million a year ago reflecting improved
performance at Spire Storage and lower interest expense.
Year-to-Date
Results
|
|
Six Months Ended
March 31,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net Economic
Earnings* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
236.1
|
|
|
$
|
213.4
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
43.1
|
|
|
|
11.2
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(6.7)
|
|
|
|
(8.8)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
272.5
|
|
|
$
|
215.8
|
|
|
$
|
5.12
|
|
|
$
|
4.06
|
|
Missouri regulatory
adjustment (Court Ruling), pre-tax
|
|
|
9.0
|
|
|
|
—
|
|
|
|
0.18
|
|
|
|
—
|
|
Other net economic
earnings adjustments, pre-tax
|
|
|
(4.1)
|
|
|
|
(20.1)
|
|
|
|
(0.08)
|
|
|
|
(0.39)
|
|
Income tax effect of
pre-tax adjustments
|
|
|
(1.1)
|
|
|
|
4.9
|
|
|
|
(0.02)
|
|
|
|
0.10
|
|
Net
Income
|
|
$
|
276.3
|
|
|
$
|
200.6
|
|
|
$
|
5.20
|
|
|
$
|
3.77
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
51.7
|
|
|
|
51.1
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For the first six months of fiscal 2021, we reported
consolidated net income of $276.3
million ($5.20 per diluted
share) compared to $200.6 million
($3.77 per share) for the prior
year.
NEE for the six months ended March 31,
2021 was $272.5 million
($5.12 per share), up from
$215.8 million ($4.06 per share) a year ago. The increase in NEE
reflects higher Gas Marketing and Gas Utility earnings, and lower
other costs.
Gas Utility
For the first six months of fiscal 2021, the Gas Utility segment
reported NEE of $236.1 million, up
$22.7 million from a year ago,
reflecting a higher contribution margin offset by slightly higher
operating expenses (excluding the pension reclassification noted
earlier).
Year-to-date segment contribution margin increased by
$29.6 million. The higher margin
reflects a $13.1 million
increase in ISRS revenues (including the ISRS ruling provision last
year) for our Missouri utilities,
and a net year-to-date rate adjustment of $3.0 million for Spire Alabama. Margin also
benefitted by $8.4 million from
higher usage due to colder weather compared to the prior-year
period.
O&M expenses increased by $2.6
million compared to the prior-year period. However, after
removing the $18.1 million pension
reclassification and adjusting for the $9.0
million reversal of a 2018 pension charge noted earlier,
O&M was down $6.5 million,
reflecting lower operations and employee-related expenses.
Depreciation and amortization rose by $4.7
million reflecting increased capital investment across our
utilities.
Gas Marketing
NEE was $43.1 million in the first
half of fiscal 2021, up from $11.2
million in the prior-year period, driven by the strong
second quarter results this year as a result of extreme market
conditions due to the February 2021
cold weather event including optimization of incremental storage
positions.
Other
On an NEE basis, year-to-date other gas-related operations and
corporate costs were $6.7 million,
down from $8.8 million in the
prior-year period. The improvement was driven by better results
from Spire Storage, offset by slightly higher corporate costs.
Balance Sheets and Cash Flow
In the second quarter of fiscal 2021, we maintained a solid
capital structure and ample liquidity. Short-term borrowings
outstanding at March 31, 2021, were
$653.5 million, up from $560.6 million at March
31, 2020, reflecting lower cash flow from operations and
seasonal working capital needs that typically peak during the
winter. We retain significant capacity in our revolving credit
facility, cash position and related commercial paper program to
meet our liquidity needs. To maintain financial flexibility in the
wake of the February cold weather event, Spire Missouri entered
into a 364-day term loan for $250
million on March 23, 2021.
On February 18, 2021, Spire
completed an offering of Equity Units for gross proceeds of
$175 million, initially recorded as
long-term debt. Net proceeds were used, in part, to repay
short-term debt under our commercial paper program. This offering
satisfies our planned equity needs for fiscal 2021.
Net cash provided by operating activities was $159.2 million for the six months ended
March 31, 2021, down from
$321.7 million for the first six
months of fiscal 2020, largely due to fluctuations in working
capital balances.
Capital expenditures for the first half of fiscal 2021 were
$303.5 million, down from
$346.1 million in the prior year
mainly due to decreased investment in the Spire STL Pipeline that
was placed into service early in fiscal 2020. Capital expenditures
for our gas utilities were up slightly from last year.
For additional details on Spire's results for the second quarter
of fiscal 2021, please see the accompanying unaudited Condensed
Consolidated Statements of Income, Balance Sheets, and Statements
of Cash Flows.
Guidance and Outlook
As a result of the performance of Spire Marketing in our second
quarter, we are increasing our fiscal 2021 NEE expectation range to
$4.30 - $4.50 per share. First half results and our
strong financial position at March 31
also allowed us to reduce our planned equity needs through
2023.
Our annual long-term NEE per share growth target remains 5-7
percent, driven by continued, consistent growth of our gas
utilities. Our long-term targets are based on expected annual rate
base growth of 7-8 percent driven by investment in pipeline
upgrades as well as technology upgrades and new business. The
pipeline upgrades enhance system reliability and safety while
supporting further reductions in methane emissions.
We affirm our 5-year capital expenditures outlook through fiscal
2025 of $3.0 billion and our expected
fiscal 2021 investment of $590
million.
Regulatory Matters
Missouri rate review
progressing
Our Missouri rate review
continues to progress according to schedule. The next milestones in
the procedural schedule call for other interested parties to the
case to submit their testimony on May
12 in regard to revenue requirements. This will include
recommendations on return on equity and capital structure. Then on
May 26, they will submit testimony on
rate design.
Spire Missouri will update
information in its initial filing through the test year update
period ending May 31, 2021. Local
public hearings are scheduled for late June, with hearings before
the Missouri Public Service Commission (MoPSC) slated for July and
August.
Spire Missouri filed its rate
review with the MoPSC in December
2020, seeking recovery of costs and more than $850 million in capital investments since 2018 to
make our system safer, more reliable and cleaner for our customers
and communities.
Dividends
The Spire board of directors has declared a quarterly common
stock dividend of $0.65 per share,
payable July 2, 2021, to shareholders
of record on June 11, 2021. We have
continuously paid a cash common stock dividend since 1946, with
2021 marking the 18th 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 August 16, 2021, to
holders of record on July 26,
2021.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
our fiscal 2021 second quarter financial results. To access the
call, please dial the applicable number approximately 5-10 minutes
prior to the start time.
Date and
Time:
|
|
Friday, May
7
|
|
|
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 May 7 until
June 6, 2021, by dialing 877-344-7529
(U.S.), 855-669-9658 (Canada), or
412-317-0088 (international). The replay access code is
10153426.
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," 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. 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. 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
March
31,
|
|
|
Six Months
Ended
March
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Operating
Revenues
|
|
$
|
1,104.9
|
|
|
$
|
715.5
|
|
|
$
|
1,617.5
|
|
|
$
|
1,282.4
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
619.1
|
|
|
|
297.1
|
|
|
|
800.3
|
|
|
|
559.0
|
|
Operation and
maintenance
|
|
|
119.0
|
|
|
|
105.7
|
|
|
|
230.6
|
|
|
|
222.3
|
|
Depreciation and
amortization
|
|
|
51.5
|
|
|
|
49.2
|
|
|
|
102.3
|
|
|
|
96.7
|
|
Taxes, other than
income taxes
|
|
|
57.9
|
|
|
|
53.0
|
|
|
|
94.0
|
|
|
|
91.6
|
|
Total Operating
Expenses
|
|
|
847.5
|
|
|
|
505.0
|
|
|
|
1,227.2
|
|
|
|
969.6
|
|
Operating
Income
|
|
|
257.4
|
|
|
|
210.5
|
|
|
|
390.3
|
|
|
|
312.8
|
|
Interest Expense,
Net
|
|
|
25.8
|
|
|
|
27.2
|
|
|
|
51.5
|
|
|
|
53.9
|
|
Other Income
(Expense), Net
|
|
|
1.8
|
|
|
|
(19.5)
|
|
|
|
6.1
|
|
|
|
(13.8)
|
|
Income Before Income
Taxes
|
|
|
233.4
|
|
|
|
163.8
|
|
|
|
344.9
|
|
|
|
245.1
|
|
Income Tax
Expense
|
|
|
46.0
|
|
|
|
30.2
|
|
|
|
68.6
|
|
|
|
44.5
|
|
Net Income
|
|
|
187.4
|
|
|
|
133.6
|
|
|
|
276.3
|
|
|
|
200.6
|
|
Provision for
preferred dividends
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
7.4
|
|
|
|
7.4
|
|
Income allocated to
participating securities
|
|
|
0.3
|
|
|
|
0.2
|
|
|
|
0.4
|
|
|
|
0.3
|
|
Net Income Available
to Common Shareholders
|
|
$
|
183.4
|
|
|
$
|
129.7
|
|
|
$
|
268.5
|
|
|
$
|
192.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
51.6
|
|
|
|
51.0
|
|
|
|
51.6
|
|
|
|
51.0
|
|
Diluted
|
|
|
51.7
|
|
|
|
51.1
|
|
|
|
51.7
|
|
|
|
51.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Common Share
|
|
$
|
3.56
|
|
|
$
|
2.55
|
|
|
$
|
5.21
|
|
|
$
|
3.78
|
|
Diluted Earnings Per
Common Share
|
|
$
|
3.55
|
|
|
$
|
2.54
|
|
|
$
|
5.20
|
|
|
$
|
3.77
|
|
Dividends Declared
Per Common Share
|
|
$
|
0.65
|
|
|
$
|
0.6225
|
|
|
$
|
1.30
|
|
|
$
|
1.245
|
|
Condensed
Consolidated Balance Sheets – Unaudited
|
|
(In
Millions)
|
|
March
31,
|
|
|
September
30,
|
|
|
March
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
6,974.3
|
|
|
$
|
6,766.3
|
|
|
$
|
6,369.4
|
|
Less:
Accumulated depreciation and amortization
|
|
|
2,145.1
|
|
|
|
2,086.2
|
|
|
|
1,848.4
|
|
Net Utility
Plant
|
|
|
4,829.2
|
|
|
|
4,680.1
|
|
|
|
4,521.0
|
|
Non-utility
Property
|
|
|
457.0
|
|
|
|
432.3
|
|
|
|
547.4
|
|
Other
Investments
|
|
|
76.4
|
|
|
|
71.7
|
|
|
|
68.1
|
|
Total Other Property
and Investments
|
|
|
533.4
|
|
|
|
504.0
|
|
|
|
615.5
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
104.0
|
|
|
|
4.1
|
|
|
|
108.4
|
|
Accounts receivable,
net
|
|
|
595.6
|
|
|
|
253.3
|
|
|
|
353.0
|
|
Inventories
|
|
|
180.0
|
|
|
|
191.5
|
|
|
|
127.1
|
|
Other
|
|
|
160.4
|
|
|
|
141.7
|
|
|
|
130.3
|
|
Total Current
Assets
|
|
|
1,040.0
|
|
|
|
590.6
|
|
|
|
718.8
|
|
Deferred Charges and
Other Assets
|
|
|
2,534.2
|
|
|
|
2,466.5
|
|
|
|
2,162.7
|
|
Total
Assets
|
|
$
|
8,936.8
|
|
|
$
|
8,241.2
|
|
|
$
|
8,018.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
Common stock and
paid-in capital
|
|
|
1,563.9
|
|
|
|
1,600.8
|
|
|
|
1,571.9
|
|
Retained
earnings
|
|
|
920.1
|
|
|
|
720.7
|
|
|
|
902.3
|
|
Accumulated other
comprehensive gain (loss)
|
|
|
5.3
|
|
|
|
(41.2)
|
|
|
|
(50.6)
|
|
Total Shareholders'
Equity
|
|
|
2,731.3
|
|
|
|
2,522.3
|
|
|
|
2,665.6
|
|
Temporary
equity
|
|
|
8.2
|
|
|
|
3.4
|
|
|
|
3.9
|
|
Long-term debt (less
current portion)
|
|
|
2,692.5
|
|
|
|
2,423.7
|
|
|
|
2,484.8
|
|
Total
Capitalization
|
|
|
5,432.0
|
|
|
|
4,949.4
|
|
|
|
5,154.3
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
110.8
|
|
|
|
60.4
|
|
|
|
5.4
|
|
Notes
payable
|
|
|
653.5
|
|
|
|
648.0
|
|
|
|
560.6
|
|
Accounts
payable
|
|
|
352.1
|
|
|
|
243.3
|
|
|
|
221.4
|
|
Accrued liabilities
and other
|
|
|
391.1
|
|
|
|
497.5
|
|
|
|
365.1
|
|
Total Current
Liabilities
|
|
|
1,507.5
|
|
|
|
1,449.2
|
|
|
|
1,152.5
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
602.8
|
|
|
|
511.4
|
|
|
|
498.1
|
|
Pension and
postretirement benefit costs
|
|
|
274.4
|
|
|
|
309.0
|
|
|
|
272.1
|
|
Asset retirement
obligations
|
|
|
551.0
|
|
|
|
540.1
|
|
|
|
344.7
|
|
Regulatory
liabilities
|
|
|
423.5
|
|
|
|
343.7
|
|
|
|
472.3
|
|
Other
|
|
|
145.6
|
|
|
|
138.4
|
|
|
|
124.0
|
|
Total Deferred Credits
and Other Liabilities
|
|
|
1,997.3
|
|
|
|
1,842.6
|
|
|
|
1,711.2
|
|
Total Capitalization
and Liabilities
|
|
$
|
8,936.8
|
|
|
$
|
8,241.2
|
|
|
$
|
8,018.0
|
|
Condensed
Consolidated Statements of Cash Flows – Unaudited
|
|
(In
Millions)
|
|
Six Months
Ended
March
31,
|
|
|
|
2021
|
|
|
2020
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
276.3
|
|
|
$
|
200.6
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
102.3
|
|
|
|
96.7
|
|
Deferred income taxes
and investment tax credits
|
|
|
68.5
|
|
|
|
42.8
|
|
Changes in assets and
liabilities
|
|
|
(293.7)
|
|
|
|
(18.3)
|
|
Other
|
|
|
5.8
|
|
|
|
(0.1)
|
|
Net cash provided by
operating activities
|
|
|
159.2
|
|
|
|
321.7
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(303.5)
|
|
|
|
(346.1)
|
|
Other
|
|
|
(0.8)
|
|
|
|
1.5
|
|
Net cash used in
investing activities
|
|
|
(304.3)
|
|
|
|
(344.6)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
325.0
|
|
|
|
510.0
|
|
Repayment of long-term
debt
|
|
|
(5.4)
|
|
|
|
(140.0)
|
|
Issuance (repayment)
of short-term debt, net
|
|
|
5.5
|
|
|
|
(182.6)
|
|
Issuance of common
stock
|
|
|
0.7
|
|
|
|
15.2
|
|
Dividends paid on
common stock
|
|
|
(65.9)
|
|
|
|
(63.8)
|
|
Dividends paid on
preferred stock
|
|
|
(7.4)
|
|
|
|
(7.4)
|
|
Other
|
|
|
(7.5)
|
|
|
|
(5.9)
|
|
Net cash provided by
financing activities
|
|
|
245.0
|
|
|
|
125.5
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash,
Cash Equivalents, and Restricted Cash
|
|
|
99.9
|
|
|
|
102.6
|
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning of Period
|
|
|
4.1
|
|
|
|
5.8
|
|
Cash, Cash
Equivalents, and Restricted Cash at End of Period
|
|
$
|
104.0
|
|
|
$
|
108.4
|
|
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
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
166.4
|
|
|
$
|
24.9
|
|
|
$
|
(3.9)
|
|
|
$
|
187.4
|
|
|
$
|
3.55
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missouri regulatory
adjustments
|
|
|
(9.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9.0)
|
|
|
|
(0.17)
|
|
Fair value and timing
adjustments
|
|
|
0.2
|
|
|
|
19.9
|
|
|
|
—
|
|
|
|
20.1
|
|
|
|
0.39
|
|
Income tax effect of
adjustments (1)
|
|
|
2.1
|
|
|
|
(5.0)
|
|
|
|
—
|
|
|
|
(2.9)
|
|
|
|
(0.06)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
159.7
|
|
|
$
|
39.8
|
|
|
$
|
(3.9)
|
|
|
$
|
195.6
|
|
|
$
|
3.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
142.3
|
|
|
$
|
(3.3)
|
|
|
$
|
(5.4)
|
|
|
$
|
133.6
|
|
|
$
|
2.54
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for ISRS
rulings
|
|
|
2.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.2
|
|
|
|
0.04
|
|
Fair value and timing
adjustments
|
|
|
0.4
|
|
|
|
11.2
|
|
|
|
—
|
|
|
|
11.6
|
|
|
|
0.23
|
|
Income tax effect of
adjustments (1)
|
|
|
(0.6)
|
|
|
|
(2.8)
|
|
|
|
—
|
|
|
|
(3.4)
|
|
|
|
(0.06)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
144.3
|
|
|
$
|
5.1
|
|
|
$
|
(5.4)
|
|
|
$
|
144.0
|
|
|
$
|
2.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
242.9
|
|
|
$
|
40.1
|
|
|
$
|
(6.7)
|
|
|
$
|
276.3
|
|
|
$
|
5.20
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missouri regulatory
adjustments
|
|
|
(9.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9.0)
|
|
|
|
(0.18)
|
|
Fair value and timing
adjustments
|
|
|
0.1
|
|
|
|
4.0
|
|
|
|
—
|
|
|
|
4.1
|
|
|
|
0.08
|
|
Income tax effect of
adjustments (1)
|
|
|
2.1
|
|
|
|
(1.0)
|
|
|
|
—
|
|
|
|
1.1
|
|
|
|
0.02
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
236.1
|
|
|
$
|
43.1
|
|
|
$
|
(6.7)
|
|
|
$
|
272.5
|
|
|
$
|
5.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
209.4
|
|
|
$
|
—
|
|
|
$
|
(8.8)
|
|
|
$
|
200.6
|
|
|
$
|
3.77
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for ISRS
rulings
|
|
|
4.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4.8
|
|
|
|
0.09
|
|
Fair value and timing
adjustments
|
|
|
0.4
|
|
|
|
14.9
|
|
|
|
—
|
|
|
|
15.3
|
|
|
|
0.30
|
|
Income tax effect of
adjustments (1)
|
|
|
(1.2)
|
|
|
|
(3.7)
|
|
|
|
—
|
|
|
|
(4.9)
|
|
|
|
(0.10)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
213.4
|
|
|
$
|
11.2
|
|
|
$
|
(8.8)
|
|
|
$
|
215.8
|
|
|
$
|
4.06
|
|
(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
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
[GAAP]
|
|
$
|
224.0
|
|
|
$
|
31.7
|
|
|
$
|
1.7
|
|
|
$
|
—
|
|
|
$
|
257.4
|
|
Operation and
maintenance expenses
|
|
|
104.0
|
|
|
|
7.1
|
|
|
|
11.1
|
|
|
|
(3.2)
|
|
|
|
119.0
|
|
Depreciation and
amortization
|
|
|
49.5
|
|
|
|
0.3
|
|
|
|
1.7
|
|
|
|
—
|
|
|
|
51.5
|
|
Taxes, other than
income taxes
|
|
|
56.4
|
|
|
|
0.5
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
57.9
|
|
Less: Gross receipts
tax expense
|
|
|
(42.1)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(42.2)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
391.8
|
|
|
|
39.5
|
|
|
|
15.5
|
|
|
|
(3.2)
|
|
|
|
443.6
|
|
Natural gas
costs
|
|
|
619.2
|
|
|
|
(6.2)
|
|
|
|
0.1
|
|
|
|
6.0
|
|
|
|
619.1
|
|
Gross receipts tax
expense
|
|
|
42.1
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
42.2
|
|
Operating
Revenues
|
|
$
|
1,053.1
|
|
|
$
|
33.4
|
|
|
$
|
15.6
|
|
|
$
|
2.8
|
|
|
$
|
1,104.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
212.9
|
|
|
$
|
(4.4)
|
|
|
$
|
2.0
|
|
|
$
|
—
|
|
|
$
|
210.5
|
|
Operation and
maintenance expenses
|
|
|
95.8
|
|
|
|
3.6
|
|
|
|
9.6
|
|
|
|
(3.3)
|
|
|
|
105.7
|
|
Depreciation and
amortization
|
|
|
47.0
|
|
|
|
0.1
|
|
|
|
2.1
|
|
|
|
—
|
|
|
|
49.2
|
|
Taxes, other than
income taxes
|
|
|
51.7
|
|
|
|
0.4
|
|
|
|
0.9
|
|
|
|
—
|
|
|
|
53.0
|
|
Less: Gross receipts
tax expense
|
|
|
(37.6)
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
(37.9)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
369.8
|
|
|
|
(0.5)
|
|
|
|
14.5
|
|
|
|
(3.3)
|
|
|
|
380.5
|
|
Natural gas
costs
|
|
|
271.6
|
|
|
|
33.6
|
|
|
|
0.1
|
|
|
|
(8.2)
|
|
|
|
297.1
|
|
Gross receipts tax
expense
|
|
|
37.6
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
37.9
|
|
Operating
Revenues
|
|
$
|
679.0
|
|
|
$
|
33.3
|
|
|
$
|
14.7
|
|
|
$
|
(11.5)
|
|
|
$
|
715.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
[GAAP]
|
|
$
|
330.8
|
|
|
$
|
52.0
|
|
|
$
|
7.5
|
|
|
$
|
—
|
|
|
$
|
390.3
|
|
Operation and
maintenance expenses
|
|
|
207.0
|
|
|
|
10.4
|
|
|
|
19.7
|
|
|
|
(6.5)
|
|
|
|
230.6
|
|
Depreciation and
amortization
|
|
|
98.1
|
|
|
|
0.6
|
|
|
|
3.6
|
|
|
|
—
|
|
|
|
102.3
|
|
Taxes, other than
income taxes
|
|
|
91.9
|
|
|
|
0.7
|
|
|
|
1.4
|
|
|
|
—
|
|
|
|
94.0
|
|
Less: Gross receipts
tax expense
|
|
|
(63.8)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(63.9)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
664.0
|
|
|
|
63.6
|
|
|
|
32.2
|
|
|
|
(6.5)
|
|
|
|
753.3
|
|
Natural gas
costs
|
|
|
823.5
|
|
|
|
(5.5)
|
|
|
|
0.1
|
|
|
|
(17.8)
|
|
|
|
800.3
|
|
Gross receipts tax
expense
|
|
|
63.8
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
63.9
|
|
Operating
Revenues
|
|
$
|
1,551.3
|
|
|
$
|
58.2
|
|
|
$
|
32.3
|
|
|
$
|
(24.3)
|
|
|
$
|
1,617.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
[GAAP]
|
|
$
|
309.2
|
|
|
$
|
—
|
|
|
$
|
3.6
|
|
|
$
|
—
|
|
|
$
|
312.8
|
|
Operation and
maintenance expenses
|
|
|
204.4
|
|
|
|
6.7
|
|
|
|
17.5
|
|
|
|
(6.3)
|
|
|
|
222.3
|
|
Depreciation and
amortization
|
|
|
93.4
|
|
|
|
0.1
|
|
|
|
3.2
|
|
|
|
—
|
|
|
|
96.7
|
|
Taxes, other than
income taxes
|
|
|
89.6
|
|
|
|
0.7
|
|
|
|
1.3
|
|
|
|
—
|
|
|
|
91.6
|
|
Less: Gross receipts
tax expense
|
|
|
(62.2)
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
(62.5)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
634.4
|
|
|
|
7.3
|
|
|
|
25.5
|
|
|
|
(6.3)
|
|
|
|
660.9
|
|
Natural gas
costs
|
|
|
513.1
|
|
|
|
58.1
|
|
|
|
0.2
|
|
|
|
(12.4)
|
|
|
|
559.0
|
|
Gross receipts tax
expense
|
|
|
62.2
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
62.5
|
|
Operating
Revenues
|
|
$
|
1,209.7
|
|
|
$
|
65.6
|
|
|
$
|
25.8
|
|
|
$
|
(18.7)
|
|
|
$
|
1,282.4
|
|
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-second-quarter-results-301286327.html
SOURCE Spire Inc.