ST. LOUIS, Nov. 22, 2021 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal 2021 fourth
quarter and full year ended September
30. Highlights include:
- A narrower fourth quarter loss of $10
million ($0.26 per diluted
share) compared to a loss of $20
million ($0.45 per share) in
fiscal 2020. On a net economic earnings (NEE) per share basis, the
fourth quarter losses were $0.32 this
year compared to $0.37 a year
ago.
- Spire STL Pipeline working to ensure continued operation
throughout the upcoming winter
- Spire Missouri seeks
clarification on unprecedented rate review order
- Launching fiscal 2022 NEE per share guidance of $3.70 - $4.00 and
increasing our 5-year capital expenditure target to $3.1 billion
"This past year has offered numerous challenges, including
severe winter weather, challenges to the continued operation of the
Spire STL Pipeline, and most recently, an unprecedented order
regarding our Missouri rate
review. The order was inconsistent with the precedent established
in previous rate cases and our practices based on that precedent.
As a result, we've filed for reconsideration with the Missouri commission in an effort to achieve an
outcome that's fair and reasonable," said Suzanne Sitherwood, president and chief
executive officer of Spire. "Through it all, Spire employees have
remained focused and dedicated to answering challenges and
delivering for our customers, our communities and our shareholders,
with strong performance by our utilities, including strengthening
the safety and integrity of our natural gas distribution system,
and enhancing our sustainability."
Fourth Quarter
Results
|
|
Three Months Ended
September 30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net Economic
(Loss) Earnings* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
(17.8)
|
|
|
$
|
(8.4)
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
9.1
|
|
|
|
(2.2)
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(4.4)
|
|
|
|
(4.7)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(13.1)
|
|
|
$
|
(15.3)
|
|
|
$
|
(0.32)
|
|
|
$
|
(0.37)
|
|
All adjustments,
including tax effects
|
|
|
3.2
|
|
|
|
(4.4)
|
|
|
|
0.06
|
|
|
|
(0.08)
|
|
Net
Loss
|
|
$
|
(9.9)
|
|
|
$
|
(19.7)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.45)
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
51.7
|
|
|
|
51.6
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
Due to the seasonality of our gas utility business, our earnings
are concentrated during the winter heating season, and we typically
report a loss in our fiscal fourth quarter ended September 30. For the fourth quarter of fiscal
2021, we reported a consolidated net loss of $9.9 million ($0.26
per diluted share), compared to a prior year net loss of
$19.7 million ($0.45 per share).
On a NEE basis, the quarterly loss was $13.1 million ($0.32 per share) compared to a loss of
$15.3 million ($0.37 per share) in the prior-year period. The
narrower loss is due to improved results from Gas Marketing,
partially offset by a larger seasonal loss in Gas
Utility.
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 the fourth quarter, Gas Utility
reported a loss on a NEE basis of $17.8
million, compared to a loss of $8.4
million in the prior year. A higher contribution margin was
more than offset by higher operation and maintenance (O&M)
expenses, higher depreciation and higher taxes, other than income
taxes, that contributed to the higher loss.
Contribution margin increased $27.7
million over the prior-year period, reflecting higher
off-system sales, Infrastructure System Replacement Surcharge
(ISRS) revenues for Spire Missouri, and rate adjustments under the
Rate Stabilization and Equalization (RSE) mechanism for Spire
Alabama.
O&M expenses of $112.0 million
were up $10.6 million from last year,
reflecting true-ups arising from the Missouri rate order, higher employee-related
costs, and a non-recurring prior year benefit of $3.8 million related to establishing a COVID
deferral.
Depreciation and amortization expense increased by $6.9 million from last year, reflecting continued
capital investment. Taxes, other than income taxes, increased by
$7.8 million mostly due to true-up of
unrecoverable deferred property taxes from Missouri customers and other expense increased
primarily due to higher charitable contributions.
Gas Marketing
The Gas Marketing segment includes the results of Spire
Marketing, which provides natural gas marketing services throughout
the United States. Fourth quarter
NEE, which excludes mark-to-market and fair value
adjustments, was $9.1 million, compared to a net economic
loss of $2.2 million in the prior
year. Performance in the current-year period reflects benefits from
wider basis differentials due to gas price volatility and the
resolution of certain commercial disputes related to the
February 2021 cold weather event,
offset by investments in storage capacity and higher
employee-related costs.
Other
Other gas-related operations and corporate costs on an NEE basis
for the fourth quarter were $4.4 million in fiscal 2021, compared to
$4.7 million in the prior-year
quarter.
Missouri rate
review
The Missouri Public Service Commission (MoPSC) issued an amended
order on Nov. 12, 2021, in Spire
Missouri's rate review. The amended order includes clarifications
on several issues including capital structure and the
capitalization of overhead costs, as discussed below.
The MoPSC amended order addresses a number of key items used to
set rates:
- Revenues: $72 million increase
(including $47 million of current
ISRS)
- Rate base: $2.9 billion
- ROE: 9.37%
The capital structure used to set rates is 49.86% equity, 41.99%
long-term debt and 8.15% short-term debt.
The order also requires Spire Missouri to cease capitalizing
non-operational overhead costs until an audit can be performed by
the MoPSC staff. The amended order lacks clarity needed to quantify
the impact of the issue with adequate precision. We are working
with the MoPSC staff to facilitate the ordered audit of capitalized
overheads on an expedited basis, including quantification of the
overheads subject to the order, and interpretation of what portion
of these costs may be deferred into a regulatory asset until
capitalization resumes. However, unless the MoPSC's order is
amended further or we gain more assurance on recovery through a
regulatory asset, we anticipate that the change in overhead
capitalization methods ordered will have a material adverse impact
on our net income in fiscal year 2022 and future periods until the
completion of a future rate case. The estimated pre-tax impact is
$14-22 million for fiscal 2022,
shifting prudently incurred overhead costs from capital to
operation and maintenance expense.
On Nov. 19, 2021, Spire Missouri
filed a request for reconsideration with the MoPSC on a number of
elements of this case.
Spire STL Pipeline
The Federal Energy Regulatory Commission (FERC) issued a
temporary certificate for the operation of Spire STL Pipeline
through Dec. 13, 2021, while it
considers our application for an emergency certificate to keep the
pipeline operating through the entire winter. On Nov. 18, 2021, the FERC held its monthly public
meeting, and the pipeline was on the agenda. We are encouraged by
Commissioners' statements committing to act before Dec. 13, 2021, when the temporary approval
expires. However, we have yet to receive a certificate extending
operation beyond this date.
On June 22, the Court of Appeals
for the D.C. Circuit ruled in a case brought by the Environmental
Defense Fund (EDF) that challenged Spire STL Pipeline's FERC
operating certificate. The ruling vacated the certificate and
remanded the certificate process back to FERC.
Our pipeline is critical infrastructure for serving the needs of
650,000 homes and businesses in the St.
Louis region and was especially important in ensuring
reliable natural gas supply during February's cold weather event.
Without the pipeline in operation during the entire winter,
thousands of customers could experience disruptions to their
natural gas service. Spire Missouri has filed operational contingency
plans with the MoPSC and is keeping customers and communities
informed of the risks of possible service curtailments if the
pipeline is not in operation during the coldest winter months.
Alabama annual rate
filings
In October 2021, Spire Alabama and
Spire Gulf made their annual RSE rate filings with the Alabama
Public Service Commission (APSC), presenting the utilities' budgets
for the fiscal year ending Sept. 30,
2022, including net income and a calculation of allowed
return on average common equity. The filings are currently being
reviewed by the APSC, and we anticipate that new rates will be
effective on or about Dec. 1, 2021.
Guidance and Outlook
We remain confident in our long-term ability to grow NEE per
share 5-7% given our strategy that focuses on growing organically,
investing in infrastructure and advancing through innovation.
Given the uncertainty surrounding the Missouri rate order, as outlined earlier,
fiscal year 2022 will be a reset year. Based on what we know at
this juncture, we launch fiscal 2022 NEE per share guidance in the
range of $3.70 - $4.00, reflecting our initial assessment of the
net outcomes of the recently concluded Missouri rate case, as described above.
We also increased our targeted capital investment to
$3.1 billion for the 5-year period
through fiscal 2026, with more than 97% of this amount committed to
our gas utilities, focused on infrastructure upgrades, technology
and new business. Capital expenditures for fiscal 2022 are expected
to be approximately $570 million. We
expect our capital plan to drive 7-8% annual rate base growth for
our utilities.
Fiscal Year
Results
|
|
Year Ended
September 30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
230.6
|
|
|
$
|
213.4
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
47.0
|
|
|
|
9.1
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(11.3)
|
|
|
|
(14.7)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
266.3
|
|
|
$
|
207.8
|
|
|
$
|
4.86
|
|
|
$
|
3.76
|
|
Impairments,
pre-tax
|
|
|
—
|
|
|
|
(148.6)
|
|
|
|
—
|
|
|
|
(2.89)
|
|
Missouri regulatory adjustments,
pre-tax
|
|
|
9.0
|
|
|
|
—
|
|
|
|
0.17
|
|
|
|
—
|
|
All other adjustments,
including tax effects
|
|
|
(3.6)
|
|
|
|
29.4
|
|
|
|
(0.07)
|
|
|
|
0.57
|
|
Net
Income
|
|
$
|
271.7
|
|
|
$
|
88.6
|
|
|
$
|
4.96
|
|
|
$
|
1.44
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
51.7
|
|
|
|
51.3
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For fiscal 2021, we reported consolidated net income of
$271.1 million ($4.96 per diluted share) compared to $88.6 million ($1.44 per share) in the prior-year period. The
increase reflects after-tax impairment charges recorded in fiscal
2020 of $117.3 million ($2.28 per share) and improved results in both the
Gas Utility and Gas Marketing segments.
On an NEE basis, Spire reported $266.3
million ($4.86 per share), up
from $207.8 million
($3.76 per share) a year ago. This
increase reflects significantly higher results from Spire Marketing
related to Winter Storm Uri and
increased earnings from Gas Utility.
Gas Utility
For fiscal 2021, this segment reported NEE of $230.6 million, up from $213.4 million a year ago. This increase reflects
a higher contribution margin, partially offset by higher
depreciation expense and slightly higher operating expenses.
Fiscal 2021 contribution margin increased by $63.0 million, reflecting a $24.1 million increase in off-system sales and
$6.3 million in higher volumetric
usage, both primarily the result of extreme cold weather conditions
during Winter Storm Uri in February.
Margin also benefited from a $15.9
million increase in ISRS revenues in Missouri and $9.8
million in rate adjustments under the RSE mechanism at Spire
Alabama.
O&M expenses in fiscal 2021 increased by $0.9 million compared to the prior-year period.
The slight increase reflects a $2.1
million year-over-year reclassification of certain
postretirement benefit costs to other income and expense (no impact
on net income), and $9.0 million
related to the reversal of a portion of pension costs disallowed in
Spire Missouri's 2018 rate case. Excluding these items, O&M
expenses were higher by $7.8 million
primarily due to higher employee-related costs and expenses and
adjustments related to the Spire Missouri rate case. Depreciation
and amortization expense rose $14.7 million due to ongoing capital
investment across our utilities. Taxes, other than income taxes,
were also $10.5 million higher.
Gas Marketing
Fiscal 2021 Gas Marketing NEE was $47.0
million, an increase of $37.9
million from a year ago. Prior-year results were impacted by
incremental storage costs and less favorable market conditions.
Current fiscal year earnings reflect strong second quarter
performance, driven by the February cold weather conditions, that
resulted in higher volumes and pricing as well as strong
monetization of incremental storage capacity.
Other
Other gas-related operations and corporate costs were
$11.3 million, an improvement of
$3.4 million from a year ago. The
improvement was driven by better operating results from Spire
Storage, partly offset by lower earnings from Spire STL
Pipeline.
Balance Sheets and Cash Flow
In fiscal 2021, we maintained a solid capital structure and
ample liquidity. Short-term borrowings outstanding at Sept. 30, 2021, were $672.0 million, up slightly from $648.0 million at fiscal 2020 yearend, reflecting
higher seasonal borrowing levels and deferred gas cost balances
offset by the timing of long-term debt financing. We retain
significant capacity in our revolving credit facility and related
commercial paper program to meet our liquidity needs. Spire had
approximately $553 million of
available liquidity at year end.
Net cash provided by operating activities was $249.8 million for the twelve months ended
Sept. 30, 2021, down from
$469.9 million for fiscal 2020. The
decrease was largely driven by higher net income more than offset
by fluctuations in working capital balances.
Capital expenditures for fiscal 2021 were $624.8 million, down from $638.4 million in the prior year due to
decreases in investment for the Spire STL Pipeline, which was
completed and placed into service early in fiscal 2020, and lower
expenditures at Spire Storage. Capital expenditures for our gas
utilities of $590.4 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 2021, 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 2021 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:
|
|
Monday, Nov.
22
|
|
|
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 Nov. 22 until
Dec. 22, 2021, by dialing
877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The
replay access code is 100721.
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
September
30,
|
|
|
Year
Ended
September
30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
290.2
|
|
|
$
|
251.9
|
|
|
$
|
2,235.5
|
|
|
$
|
1,855.4
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
49.1
|
|
|
|
64.2
|
|
|
|
946.3
|
|
|
|
696.1
|
|
Operation and
maintenance
|
|
|
123.2
|
|
|
|
111.4
|
|
|
|
465.8
|
|
|
|
458.6
|
|
Depreciation and
amortization
|
|
|
57.7
|
|
|
|
50.5
|
|
|
|
213.1
|
|
|
|
197.3
|
|
Taxes, other than
income taxes
|
|
|
33.5
|
|
|
|
25.7
|
|
|
|
160.1
|
|
|
|
148.4
|
|
Impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
148.6
|
|
Total Operating
Expenses
|
|
|
263.5
|
|
|
|
251.8
|
|
|
|
1,785.3
|
|
|
|
1,649.0
|
|
Operating
Income
|
|
|
26.7
|
|
|
|
0.1
|
|
|
|
450.2
|
|
|
|
206.4
|
|
Interest Expense,
Net
|
|
|
28.2
|
|
|
|
25.2
|
|
|
|
106.6
|
|
|
|
105.5
|
|
Other (Expense)
Income, Net
|
|
|
(8.5)
|
|
|
|
0.9
|
|
|
|
(3.4)
|
|
|
|
0.1
|
|
(Loss) Income Before
Income Taxes
|
|
|
(10.0)
|
|
|
|
(24.2)
|
|
|
|
340.2
|
|
|
|
101.0
|
|
Income Tax (Benefit)
Expense
|
|
|
(0.1)
|
|
|
|
(4.5)
|
|
|
|
68.5
|
|
|
|
12.4
|
|
Net (Loss)
Income
|
|
|
(9.9)
|
|
|
|
(19.7)
|
|
|
|
271.7
|
|
|
|
88.6
|
|
Provision for
preferred dividends
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
14.8
|
|
|
|
14.8
|
|
(Loss) income
allocated to participating securities
|
|
|
(0.1)
|
|
|
|
(0.1)
|
|
|
|
0.4
|
|
|
|
0.1
|
|
Net (Loss) Income
Available to Common Shareholders
|
|
$
|
(13.5)
|
|
|
$
|
(23.3)
|
|
|
$
|
256.5
|
|
|
$
|
73.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
51.6
|
|
|
|
51.5
|
|
|
|
51.6
|
|
|
|
51.2
|
|
Diluted
|
|
|
51.7
|
|
|
|
51.6
|
|
|
|
51.7
|
|
|
|
51.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (Loss) Earnings
Per Share
|
|
$
|
(0.26)
|
|
|
$
|
(0.45)
|
|
|
$
|
4.97
|
|
|
$
|
1.44
|
|
Diluted (Loss)
Earnings Per Share
|
|
|
(0.26)
|
|
|
|
(0.45)
|
|
|
|
4.96
|
|
|
|
1.44
|
|
Dividends Declared
Per Common Share
|
|
|
0.65
|
|
|
|
0.6225
|
|
|
|
2.60
|
|
|
|
2.49
|
|
Condensed
Consolidated Balance Sheets – Unaudited
|
|
(In
Millions)
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2021
|
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
7,225.0
|
|
|
$
|
6,766.3
|
|
Less:
Accumulated depreciation and amortization
|
|
|
2,169.3
|
|
|
|
2,086.2
|
|
Net Utility
Plant
|
|
|
5,055.7
|
|
|
|
4,680.1
|
|
Other Property and
Investments
|
|
|
554.2
|
|
|
|
504.0
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
4.3
|
|
|
|
4.1
|
|
Accounts receivable,
net
|
|
|
596.3
|
|
|
|
253.3
|
|
Inventories
|
|
|
305.0
|
|
|
|
191.5
|
|
Other
|
|
|
410.9
|
|
|
|
141.7
|
|
Total Current
Assets
|
|
|
1,316.5
|
|
|
|
590.6
|
|
Deferred Charges and
Other Assets:
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
1,171.6
|
|
|
|
1,171.6
|
|
Other deferred charges
and other assets
|
|
|
1,258.4
|
|
|
|
1,294.9
|
|
Total Deferred Charges
and Other Assets
|
|
|
2,430.0
|
|
|
|
2,466.5
|
|
Total
Assets
|
|
$
|
9,356.4
|
|
|
$
|
8,241.2
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
Common stock and
paid-in capital
|
|
|
1,569.6
|
|
|
|
1,600.8
|
|
Retained
earnings
|
|
|
843.0
|
|
|
|
720.7
|
|
Accumulated other
comprehensive loss
|
|
|
3.6
|
|
|
|
(41.2)
|
|
Total Shareholders'
Equity
|
|
|
2,658.2
|
|
|
|
2,522.3
|
|
Temporary
equity
|
|
|
9.8
|
|
|
|
3.4
|
|
Long-term debt (less
current portion)
|
|
|
2,939.1
|
|
|
|
2,423.7
|
|
Total
Capitalization
|
|
|
5,607.1
|
|
|
|
4,949.4
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
55.8
|
|
|
|
60.4
|
|
Notes
payable
|
|
|
672.0
|
|
|
|
648.0
|
|
Accounts
payable
|
|
|
409.9
|
|
|
|
243.3
|
|
Accrued liabilities
and other
|
|
|
470.6
|
|
|
|
497.5
|
|
Total Current
Liabilities
|
|
|
1,608.3
|
|
|
|
1,449.2
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
612.3
|
|
|
|
511.4
|
|
Other deferred credits
and other liabilities
|
|
|
1,528.7
|
|
|
|
1,331.2
|
|
Total Deferred Credits
and Other Liabilities
|
|
|
2,141.0
|
|
|
|
1,842.6
|
|
Total Capitalization
and Liabilities
|
|
$
|
9,356.4
|
|
|
$
|
8,241.2
|
|
Condensed
Consolidated Statements of Cash Flows – Unaudited
|
|
(In
Millions)
|
|
Year
Ended
September
30,
|
|
|
|
2021
|
|
|
2020
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
271.7
|
|
|
$
|
88.6
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
213.1
|
|
|
|
197.3
|
|
Deferred income taxes
and investment tax credits
|
|
|
67.0
|
|
|
|
9.0
|
|
Changes in assets and
liabilities
|
|
|
(319.3)
|
|
|
|
166.8
|
|
Other
|
|
|
17.3
|
|
|
|
8.2
|
|
Net cash provided by
operating activities
|
|
|
249.8
|
|
|
|
469.9
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(624.8)
|
|
|
|
(638.4)
|
|
Other
|
|
|
2.8
|
|
|
|
6.8
|
|
Net cash used in
investing activities
|
|
|
(622.0)
|
|
|
|
(631.6)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
629.1
|
|
|
|
510.0
|
|
Repayment of long-term
debt
|
|
|
(115.4)
|
|
|
|
(147.0)
|
|
Issuance (repayment)
of short-term debt, net
|
|
|
24.0
|
|
|
|
(95.2)
|
|
Issuance of common
stock
|
|
|
1.0
|
|
|
|
41.1
|
|
Dividends paid on
common stock
|
|
|
(133.2)
|
|
|
|
(128.0)
|
|
Dividends paid on
preferred stock
|
|
|
(14.8)
|
|
|
|
(14.8)
|
|
Other
|
|
|
(11.3)
|
|
|
|
(6.1)
|
|
Net cash provided by
financing activities
|
|
|
379.4
|
|
|
|
160.0
|
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents, and Restricted
Cash
|
|
|
7.2
|
|
|
|
(1.7)
|
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning of Year
|
|
|
4.1
|
|
|
|
5.8
|
|
Cash, Cash
Equivalents, and Restricted Cash at End of Year
|
|
$
|
11.3
|
|
|
$
|
4.1
|
|
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, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
[GAAP]
|
|
$
|
(17.8)
|
|
|
$
|
11.3
|
|
|
$
|
(3.4)
|
|
|
$
|
(9.9)
|
|
|
$
|
(0.26)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
value and timing adjustments
|
|
|
—
|
|
|
|
(2.9)
|
|
|
|
—
|
|
|
|
(2.9)
|
|
|
|
(0.06)
|
|
Acquisition, divestiture and restructuring activities
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.3)
|
|
|
|
(1.3)
|
|
|
|
(0.02)
|
|
Income tax effect of
adjustments (1)
|
|
|
—
|
|
|
|
0.7
|
|
|
|
0.3
|
|
|
|
1.0
|
|
|
|
0.02
|
|
Net Economic
(Loss) Earnings [Non-GAAP]
|
|
$
|
(17.8)
|
|
|
$
|
9.1
|
|
|
$
|
(4.4)
|
|
|
$
|
(13.1)
|
|
|
$
|
(0.32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
237.2
|
|
|
$
|
44.8
|
|
|
$
|
(10.3)
|
|
|
$
|
271.7
|
|
|
$
|
4.96
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missouri
regulatory adjustments
|
|
|
(9.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9.0)
|
|
|
|
(0.17)
|
|
Fair
value and timing adjustments
|
|
|
0.3
|
|
|
|
3.0
|
|
|
|
—
|
|
|
|
3.3
|
|
|
|
0.06
|
|
Acquisition, divestiture and restructuring activities
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.3)
|
|
|
|
(1.3)
|
|
|
|
(0.02)
|
|
Income tax effect of
adjustments (1)
|
|
|
2.1
|
|
|
|
(0.8)
|
|
|
|
0.3
|
|
|
|
1.6
|
|
|
|
0.03
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
230.6
|
|
|
$
|
47.0
|
|
|
$
|
(11.3)
|
|
|
$
|
266.3
|
|
|
$
|
4.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
213.6
|
|
|
$
|
7.0
|
|
|
$
|
(132.0)
|
|
|
$
|
88.6
|
|
|
$
|
1.44
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
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
|
|
|
(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, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
[GAAP]
|
|
$
|
7.6
|
|
|
$
|
15.3
|
|
|
$
|
3.8
|
|
|
$
|
—
|
|
|
$
|
26.7
|
|
Operation and
maintenance expenses
|
|
|
112.0
|
|
|
|
3.5
|
|
|
|
11.3
|
|
|
|
(3.6)
|
|
|
|
123.2
|
|
Depreciation and
amortization
|
|
|
55.4
|
|
|
|
0.3
|
|
|
|
2.0
|
|
|
|
—
|
|
|
|
57.7
|
|
Taxes, other than
income taxes
|
|
|
33.0
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
33.5
|
|
Less: Gross receipts
tax expense
|
|
|
(12.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(12.2)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
195.8
|
|
|
|
19.1
|
|
|
|
17.6
|
|
|
|
(3.6)
|
|
|
|
228.9
|
|
Natural gas
costs
|
|
|
53.3
|
|
|
|
4.1
|
|
|
|
—
|
|
|
|
(8.3)
|
|
|
|
49.1
|
|
Gross receipts tax
expense
|
|
|
12.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12.2
|
|
Operating
Revenues
|
|
$
|
261.3
|
|
|
$
|
23.2
|
|
|
$
|
17.6
|
|
|
$
|
(11.9)
|
|
|
$
|
290.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
[GAAP]
|
|
$
|
374.0
|
|
|
$
|
58.5
|
|
|
$
|
17.7
|
|
|
$
|
—
|
|
|
$
|
450.2
|
|
Operation and
maintenance expenses
|
|
|
422.2
|
|
|
|
17.1
|
|
|
|
40.2
|
|
|
|
(13.7)
|
|
|
|
465.8
|
|
Depreciation and
amortization
|
|
|
204.4
|
|
|
|
1.2
|
|
|
|
7.5
|
|
|
|
—
|
|
|
|
213.1
|
|
Taxes, other than
income taxes
|
|
|
157.0
|
|
|
|
0.9
|
|
|
|
2.2
|
|
|
|
—
|
|
|
|
160.1
|
|
Less: Gross receipts
tax expense
|
|
|
(93.9)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(94.0)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
1,063.7
|
|
|
|
77.6
|
|
|
|
67.6
|
|
|
|
(13.7)
|
|
|
|
1,195.2
|
|
Natural gas
costs
|
|
|
961.7
|
|
|
|
18.8
|
|
|
|
0.1
|
|
|
|
(34.3)
|
|
|
|
946.3
|
|
Gross receipts tax
expense
|
|
|
93.9
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
94.0
|
|
Operating
Revenues
|
|
$
|
2,119.3
|
|
|
$
|
96.5
|
|
|
$
|
67.7
|
|
|
$
|
(48.0)
|
|
|
$
|
2,235.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
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
|
|
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
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SOURCE Spire Inc.