ST.
LOUIS, Nov. 16, 2022 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal 2022 fourth
quarter and full year ended September
30. Highlights include:
- A narrower fourth quarter loss of $7.1
million ($0.20 per diluted
share) compared to a loss of $9.9
million ($0.26 per share) in
fiscal 2021. On a net economic earnings (NEE) per share basis, the
fourth quarter losses were $0.66 this
year and $0.32 a year ago.
- Parties filed settlement in Spire Missouri's rate review
- Launching 10-year capital expenditure target of $7.0 billion
- Board of Directors raises quarterly common stock dividend 5.1%
to $0.72 per share
"Fiscal 2022 was another year of challenges and opportunities,
and in the end we delivered for our customers and achieved strong
operating performance including further gains in the safety,
integrity and environmental sustainability of our natural gas
distribution system," said Suzanne
Sitherwood, president and chief executive officer of
Spire. "We successfully met important challenges head on,
including settling issues in our Missouri rate review that's now on a path to a
timely resolution, and managing the impact of higher gas costs and
inflationary pressures on our customers. We continued our robust
investment in infrastructure upgrades and technology to achieve
higher service levels and an even better experience for the 1.7
million homes and businesses we serve. Moving forward, we are
increasing our capital investments, including the expansion of
Spire Storage, to continue on our path of long-term growth and
adding value for our customers, communities, and
shareholders," she added.
Fourth Quarter Results
|
|
Three Months Ended
September 30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted
Common
Share)
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net Economic (Loss)
Earnings* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
(37.9)
|
|
|
$
|
(17.8)
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
11.7
|
|
|
|
9.1
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(5.2)
|
|
|
|
(4.4)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(31.4)
|
|
|
$
|
(13.1)
|
|
|
$
|
(0.66)
|
|
|
$
|
(0.32)
|
|
All adjustments,
including tax effects
|
|
|
24.3
|
|
|
|
3.2
|
|
|
|
0.46
|
|
|
|
0.06
|
|
Net
Loss
|
|
$
|
(7.1)
|
|
|
$
|
(9.9)
|
|
|
$
|
(0.20)
|
|
|
$
|
(0.26)
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
52.6
|
|
|
|
51.7
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
Due to the seasonal nature of natural gas demand and the timing
of regulatory recovery in our gas utility business, we typically
incur a loss in our fiscal fourth quarter ended September 30. For the fourth quarter of fiscal
2022, we reported a consolidated net loss of $7.1 million ($0.20
per diluted share), compared with a net loss of $9.9 million ($0.26 per share) last year.
On an NEE basis, the quarterly loss was $31.4 million ($0.66 per share) compared to a loss of
$13.1 million ($0.32 per share) last year. Prior year results
include several unusual transactions surrounding Winter Storm Uri and the 2021 Missouri rate
order. Net of these items, prior year NEE was a loss of
$27.1 million (or $0.59 per share), and the difference between the
two years reflects a wider seasonal loss in Gas Utility partially
offset by improved results from Gas Marketing.
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 an NEE basis of $37.9
million compared to a loss of $17.8
million in the prior year. The $20.1
million higher loss reflects changes in rate design in
Missouri and the spread of cost
savings benefits over multiple years in Alabama.
Contribution margin decreased $38.9 million over the prior-year period,
reflecting a shift in Spire Missouri Utility rate design from the
2021 rate order that pushed more of the recovery into the winter
heating season and out of our fiscal third and fourth quarters.
Spire Alabama margins were lower
due to the extension of recovery of shared costs savings under the
Cost Control Measure to future periods in order to lower the
impact to customer bills during this period of higher commodity
costs.
Operation and maintenance (O&M) expenses of $106.8 million were down $5.2 million from last year. However, they were
slightly higher by $1.4 million after
removing the impacts from the 2021 Spire Missouri rate order,
Winter Storm Uri impacts and
non-service cost transfer to other income (no earnings impact).
Depreciation and amortization expense increased by $3.3 million from last year, reflecting continued
capital investment. Taxes, other than income taxes, decreased by
$7.1 million mostly due to the timing
of recovery of property taxes from Missouri customers.
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 was $11.7 million, up from
$9.1 million in the prior year.
Results this year reflect a higher margin as improved basis
differentials more than offset the prior-year impact of
Winter Storm Uri.
Other
Other gas-related operations and corporate costs on an NEE basis
for the fourth quarter were $5.2 million in fiscal 2022, compared to
$4.4 million in the prior-year
quarter. The decrease is due to lower results from Spire Storage as
certain market opportunities did not recur this year.
Regulatory Update
Missouri Rate Review
On November 4, 2022, Spire
Missouri and other parties to the case, notably the Staff of the
Missouri Public Service Commission (MoPSC) and the Office of Public
Counsel, reached a settlement in the rate review Spire Missouri
filed April 1, 2022. The parties to
the case filed a Stipulation and Agreement with the MoPSC for their
review and approval.
The MoPSC approved a $10.5 million
annualized increase in Infrastructure System Replacement Surcharge
(ISRS) revenues for Spire Missouri, effective October 21, 2022, reflecting infrastructure
upgrade improvements for January 1
– June 30, 2022. This brings annualized ISRS revenues to
$19.0 million.
Alabama Rate Filings
In October 2022, 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 September 30,
2023, 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 in early December 2022.
Spire STL Pipeline
Spire STL Pipeline continues to operate under a temporary
certificate while the Federal Energy Regulatory Commission (FERC)
considers approval of a new permanent certificate under a
court-ordered remand. As part of the remand, the FERC indicated
that it would prepare an Environmental Impact Statement (EIS)
on Spire STL Pipeline. Following the issuance of a positive
EIS by the staff of the FERC in June, the FERC approved the EIS
effective in October.
Dividend Increased 5.1%
Reflecting our solid performance and expectations for growth,
the board of directors of Spire increased the quarterly common
stock dividend to $0.72 per share, an
increase of 5.1%. This raises the annualized rate by $0.14 per share to $2.88 per share. The dividend is payable on
January 4, 2023, to shareholders of
record on December 12, 2022. Spire
has continuously paid a cash dividend since 1946, and 2023, will
mark the 20th consecutive year that the dividend has increased.
The Spire board of directors also declared the regular quarterly
dividend of $0.36875 per depositary
share on Spire's 5.90% Series A Cumulative Redeemable Perpetual
Preferred Stock, payable February 15,
2023, to holders of record on January
25, 2023.
Fiscal Year
Results
|
|
Year Ended September
30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted
Common
Share)
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
202.7
|
|
|
$
|
230.6
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
27.0
|
|
|
|
47.0
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(13.4)
|
|
|
|
(11.3)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
216.3
|
|
|
$
|
266.3
|
|
|
$
|
3.86
|
|
|
$
|
4.86
|
|
Missouri regulatory
adjustments, pre-tax
|
|
|
—
|
|
|
|
9.0
|
|
|
|
—
|
|
|
|
0.17
|
|
All other adjustments,
including tax effects
|
|
|
4.5
|
|
|
|
(3.6)
|
|
|
|
0.09
|
|
|
|
(0.07)
|
|
Net
Income
|
|
$
|
220.8
|
|
|
$
|
271.7
|
|
|
$
|
3.95
|
|
|
$
|
4.96
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
52.1
|
|
|
|
51.7
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
For fiscal 2022, we reported consolidated net income of
$220.8 million ($3.95 per diluted share) compared to $271.7 million ($4.96 per share) in the prior-year period. On an
NEE basis, Spire reported $216.3
million ($3.86 per share),
down from $266.3 million
($4.86 per share) a year ago. As a
reminder, prior-year results included the benefit of Winter Storm Uri, largely at Spire Marketing,
which we estimated to be between $0.65 and $0.70 per
share. Excluding these nonrecurring impacts (at the midpoint of
$0.68 per share), NEE was lower by
$0.32 per share reflecting warmer
weather and net adjustments related to the 2021 Missouri rate
order.
Gas Utility
For fiscal 2022, Gas Utility reported NEE of $202.7 million compared $230.6 million in the prior year. The
$27.9 million decrease reflects
the lower rate of return from the 2021 Missouri rate order as well
as warmer weather that was not fully mitigated by rate design in
Alabama.
Fiscal 2022 contribution margin decreased by $16.0 million, reflecting a $26.3 million decrease in off-system sales a year
ago and $9.2 million in lower
volumetric usage, the result of last year's extreme cold weather
conditions during Winter Storm Uri
and ineffective weather mitigation in Alabama. Temperatures were 9% warmer than
normal in the territories served by our gas utilities. Current year
margins benefitted from higher rates in Missouri (+$18.1 million) and net regulatory
adjustments and off-system sales in Alabama (+$5.3 million).
O&M expenses in fiscal 2022 decreased by $8.9 million compared to the prior-year period.
The lower costs reflect a $4.4
million year-over-year reclassification of certain
postretirement benefit costs to other income (no impact on net
income) and $9.0 million related to
the reversal of a portion of pension costs disallowed in the Spire
Missouri 2018 rate order that occurred in fiscal 2021. Excluding
these items, O&M expenses decreased by $13.5 million primarily due to Winter Storm Uri and 2021 Missouri rate order
items that did not repeat. Depreciation and amortization expense
rose $23.5 million due to ongoing
capital investment across our utilities. Taxes, other than income
taxes, were also $19.2 million
higher.
Gas Marketing
Fiscal 2022 Gas Marketing NEE was $27.0
million, down from $47.0
million a year ago. Prior-year results reflect value created
from optimization of transportation and storage positions during
Winter Storm Uri. Current year
results include the $6.2 million
benefit from the current year settlement of commercial disputes
that originated in Uri in 2021.
Other
Other gas-related operations and corporate costs on an NEE basis
were $13.4 million, compared to
$11.3 million, reflecting higher
interest and other corporate expenses in the current year.
Balance Sheets and Cash Flow
In fiscal 2022, we maintained a solid capital structure and
ample liquidity. Short-term borrowings outstanding at
September 30, 2022, were $1,037.5
million, up from $672.0
million at fiscal 2021 year-end, reflecting higher seasonal
borrowing levels, most notably the financing of higher natural gas
cost. We retain significant capacity in our revolving credit
facility and related commercial paper program to meet our liquidity
needs.
On October 13, 2022, Spire Alabama
issued $90 million of 7-year notes
(5.32% interest) and $85 million of
10-year notes bearing interest at 5.41%. Spire Gulf issued
$30 million 15-year first mortgage
bonds with a coupon of 5.61%. These issuances were made via private
placements.
Net cash provided by operating activities was $55.0 million for the year ended
September 30, 2022, down from $249.8
million for fiscal 2021. The decrease was largely driven by
fluctuations in working capital balances from higher gas
costs, as well as lower net income and higher depreciation and
amortization.
Capital expenditures for fiscal 2022 were $552.2 million, down from $624.8 million in the prior year due mainly to
planned lower investment in our gas utilities, as well as a
reduction in capital expenditures for Spire Storage and Spire STL
Pipeline. Gas utility investment of $528 million was focused on pipeline upgrades
that enable us to further reduce methane emissions, as well as new
business and technology upgrades.
For additional details on Spire's results for the fourth quarter
and full year of fiscal 2022, please see the accompanying unaudited
Condensed Consolidated Statements of Income, Balance Sheets, and
Statements of Cash Flows.
Guidance and Outlook
We remain confident in our long-term ability to grow NEE per
share 5-7% given our growth strategy across our businesses.
We are updating and expanding our targeted capital investment to
include a 10-year period through fiscal 2032, with total
expenditures expected to be $7.0
billion. The plan is driven by our commitment to invest
in upgrades to our gas utility pipelines and infrastructure,
comprising nearly all of the spend during that period. We
expect our capital plan to drive 7-8% annual rate base growth for
our utilities. This plan also includes the investment over the
next two fiscal years to expand Spire Storage as outlined earlier
in the year.
Capital expenditures for fiscal 2023 are expected to be
approximately $700 million, including
$150 million for our midstream
businesses, primarily for the Spire Storage expansion.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2022 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,
November 16
|
|
|
9 a.m. CT (10 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 11 a.m. CT
(Noon ET) on November 16 until December 16, 2022, by
dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The
replay access code is 8323545.
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,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Operating
Revenues
|
|
$
|
314.2
|
|
|
$
|
290.2
|
|
|
$
|
2,198.5
|
|
|
$
|
2,235.5
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
79.4
|
|
|
|
49.1
|
|
|
|
923.9
|
|
|
|
946.3
|
|
Operation and
maintenance
|
|
|
117.7
|
|
|
|
123.2
|
|
|
|
449.6
|
|
|
|
465.8
|
|
Depreciation and
amortization
|
|
|
61.1
|
|
|
|
57.7
|
|
|
|
237.3
|
|
|
|
213.1
|
|
Taxes, other than
income taxes
|
|
|
26.2
|
|
|
|
33.5
|
|
|
|
179.5
|
|
|
|
160.1
|
|
Total Operating
Expenses
|
|
|
284.4
|
|
|
|
263.5
|
|
|
|
1,790.3
|
|
|
|
1,785.3
|
|
Operating
Income
|
|
|
29.8
|
|
|
|
26.7
|
|
|
|
408.2
|
|
|
|
450.2
|
|
Interest Expense,
Net
|
|
|
34.4
|
|
|
|
28.2
|
|
|
|
119.8
|
|
|
|
106.6
|
|
Other Expense,
Net
|
|
|
(0.6)
|
|
|
|
(8.5)
|
|
|
|
(8.7)
|
|
|
|
(3.4)
|
|
(Loss) Income Before
Income Taxes
|
|
|
(5.2)
|
|
|
|
(10.0)
|
|
|
|
279.7
|
|
|
|
340.2
|
|
Income Tax Expense
(Benefit)
|
|
|
1.9
|
|
|
|
(0.1)
|
|
|
|
58.9
|
|
|
|
68.5
|
|
Net (Loss)
Income
|
|
|
(7.1)
|
|
|
|
(9.9)
|
|
|
|
220.8
|
|
|
|
271.7
|
|
Provision for
preferred dividends
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
14.8
|
|
|
|
14.8
|
|
(Loss) income
allocated to participating securities
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
0.3
|
|
|
|
0.4
|
|
Net (Loss) Income
Available to Common Shareholders
|
|
$
|
(10.8)
|
|
|
$
|
(13.5)
|
|
|
$
|
205.7
|
|
|
$
|
256.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
52.4
|
|
|
|
51.6
|
|
|
|
52.0
|
|
|
|
51.6
|
|
Diluted
|
|
|
52.6
|
|
|
|
51.7
|
|
|
|
52.1
|
|
|
|
51.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (Loss) Earnings
Per Share
|
|
$
|
(0.20)
|
|
|
$
|
(0.26)
|
|
|
$
|
3.96
|
|
|
$
|
4.97
|
|
Diluted (Loss) Earnings
Per Share
|
|
|
(0.20)
|
|
|
|
(0.26)
|
|
|
|
3.95
|
|
|
|
4.96
|
|
Dividends Declared Per
Common Share
|
|
|
0.685
|
|
|
|
0.65
|
|
|
|
2.74
|
|
|
|
2.60
|
|
Condensed
Consolidated Balance Sheets – Unaudited
|
|
(In
Millions)
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2022
|
|
|
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
7,664.9
|
|
|
$
|
7,225.0
|
|
Less: Accumulated
depreciation and amortization
|
|
|
2,294.5
|
|
|
|
2,169.3
|
|
Net Utility
Plant
|
|
|
5,370.4
|
|
|
|
5,055.7
|
|
Other Property and
Investments
|
|
|
579.2
|
|
|
|
554.2
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
6.5
|
|
|
|
4.3
|
|
Accounts receivable,
net
|
|
|
622.7
|
|
|
|
596.3
|
|
Inventories
|
|
|
422.3
|
|
|
|
305.0
|
|
Other
|
|
|
540.5
|
|
|
|
410.9
|
|
Total Current
Assets
|
|
|
1,592.0
|
|
|
|
1,316.5
|
|
Deferred Charges and
Other Assets:
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
1,171.6
|
|
|
|
1,171.6
|
|
Other deferred charges
and other assets
|
|
|
1,370.5
|
|
|
|
1,258.4
|
|
Total Deferred Charges
and Other Assets
|
|
|
2,542.1
|
|
|
|
2,430.0
|
|
Total Assets
|
|
$
|
10,083.7
|
|
|
$
|
9,356.4
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
Common stock and
paid-in capital
|
|
|
1,623.8
|
|
|
|
1,569.6
|
|
Retained
earnings
|
|
|
905.5
|
|
|
|
843.0
|
|
Accumulated other
comprehensive income
|
|
|
47.2
|
|
|
|
3.6
|
|
Total Shareholders'
Equity
|
|
|
2,818.5
|
|
|
|
2,658.2
|
|
Temporary
equity
|
|
|
13.1
|
|
|
|
9.8
|
|
Long-term debt (less
current portion)
|
|
|
2,958.5
|
|
|
|
2,939.1
|
|
Total
Capitalization
|
|
|
5,790.1
|
|
|
|
5,607.1
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
281.2
|
|
|
|
55.8
|
|
Notes
payable
|
|
|
1,037.5
|
|
|
|
672.0
|
|
Accounts
payable
|
|
|
617.4
|
|
|
|
409.9
|
|
Accrued liabilities
and other
|
|
|
417.5
|
|
|
|
470.6
|
|
Total Current
Liabilities
|
|
|
2,353.6
|
|
|
|
1,608.3
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
675.1
|
|
|
|
612.3
|
|
Other deferred credits
and other liabilities
|
|
|
1,264.9
|
|
|
|
1,528.7
|
|
Total Deferred Credits
and Other Liabilities
|
|
|
1,940.0
|
|
|
|
2,141.0
|
|
Total Capitalization
and Liabilities
|
|
$
|
10,083.7
|
|
|
$
|
9,356.4
|
|
Condensed
Consolidated Statements of Cash Flows – Unaudited
|
|
(In
Millions)
|
|
Year Ended September
30,
|
|
|
|
2022
|
|
|
2021
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
220.8
|
|
|
$
|
271.7
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
237.3
|
|
|
|
213.1
|
|
Deferred income taxes
and investment tax credits
|
|
|
57.9
|
|
|
|
67.0
|
|
Changes in assets and
liabilities
|
|
|
(469.8)
|
|
|
|
(319.3)
|
|
Other
|
|
|
8.8
|
|
|
|
17.3
|
|
Net cash provided by
operating activities
|
|
|
55.0
|
|
|
|
249.8
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(552.2)
|
|
|
|
(624.8)
|
|
Other
|
|
|
5.5
|
|
|
|
2.8
|
|
Net cash used in
investing activities
|
|
|
(546.7)
|
|
|
|
(622.0)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
300.0
|
|
|
|
629.1
|
|
Repayment of long-term
debt
|
|
|
(55.8)
|
|
|
|
(115.4)
|
|
Issuance (repayment)
of short-term debt, net
|
|
|
365.5
|
|
|
|
24.0
|
|
Issuance of common
stock
|
|
|
51.9
|
|
|
|
1.0
|
|
Dividends paid on
common stock
|
|
|
(141.9)
|
|
|
|
(133.2)
|
|
Dividends paid on
preferred stock
|
|
|
(14.8)
|
|
|
|
(14.8)
|
|
Other
|
|
|
(4.0)
|
|
|
|
(11.3)
|
|
Net cash provided by
financing activities
|
|
|
500.9
|
|
|
|
379.4
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash,
Cash Equivalents, and Restricted Cash
|
|
|
9.2
|
|
|
|
7.2
|
|
Cash, Cash Equivalents,
and Restricted Cash at Beginning of Year
|
|
|
11.3
|
|
|
|
4.1
|
|
Cash, Cash Equivalents,
and Restricted Cash at End of Year
|
|
$
|
20.5
|
|
|
$
|
11.3
|
|
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, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
[GAAP]
|
|
$
|
(37.9)
|
|
|
$
|
36.0
|
|
|
$
|
(5.2)
|
|
|
$
|
(7.1)
|
|
|
$
|
(0.20)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
(32.3)
|
|
|
|
—
|
|
|
|
(32.3)
|
|
|
|
(0.61)
|
|
Income tax effect of
adjustments (1)
|
|
|
—
|
|
|
|
8.0
|
|
|
|
—
|
|
|
|
8.0
|
|
|
|
0.15
|
|
Net Economic (Loss)
Earnings [Non-GAAP]
|
|
$
|
(37.9)
|
|
|
$
|
11.7
|
|
|
$
|
(5.2)
|
|
|
$
|
(31.4)
|
|
|
$
|
(0.66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended September
30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
198.6
|
|
|
$
|
35.6
|
|
|
$
|
(13.4)
|
|
|
$
|
220.8
|
|
|
$
|
3.95
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
(11.4)
|
|
|
|
—
|
|
|
|
(11.4)
|
|
|
|
(0.22)
|
|
Income tax effect of
adjustments (1)
|
|
|
4.1
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
6.9
|
|
|
|
0.13
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
202.7
|
|
|
$
|
27.0
|
|
|
$
|
(13.4)
|
|
|
$
|
216.3
|
|
|
$
|
3.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
(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 and, in the case of the year ended September
30, 2022, includes a Spire Missouri regulatory
adjustment.
|
|
(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, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income [GAAP]
|
|
$
|
(21.7)
|
|
|
$
|
47.3
|
|
|
$
|
4.2
|
|
|
$
|
—
|
|
|
$
|
29.8
|
|
Operation and
maintenance expenses
|
|
|
106.8
|
|
|
|
5.5
|
|
|
|
9.1
|
|
|
|
(3.7)
|
|
|
|
117.7
|
|
Depreciation and
amortization
|
|
|
58.7
|
|
|
|
0.4
|
|
|
|
2.0
|
|
|
|
—
|
|
|
|
61.1
|
|
Taxes, other than
income taxes
|
|
|
25.9
|
|
|
|
(0.2)
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
26.2
|
|
Less: Gross receipts
tax expense
|
|
|
(12.8)
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(12.7)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
156.9
|
|
|
|
53.1
|
|
|
|
15.8
|
|
|
|
(3.7)
|
|
|
|
222.1
|
|
Natural gas
costs
|
|
|
78.1
|
|
|
|
10.5
|
|
|
|
—
|
|
|
|
(9.2)
|
|
|
|
79.4
|
|
Gross receipts tax
expense
|
|
|
12.8
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12.7
|
|
Operating
Revenues
|
|
$
|
247.8
|
|
|
$
|
63.5
|
|
|
$
|
15.8
|
|
|
$
|
(12.9)
|
|
|
$
|
314.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended September
30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
[GAAP]
|
|
$
|
339.9
|
|
|
$
|
46.9
|
|
|
$
|
21.4
|
|
|
$
|
—
|
|
|
$
|
408.2
|
|
Operation and
maintenance expenses
|
|
|
413.3
|
|
|
|
14.6
|
|
|
|
37.1
|
|
|
|
(15.4)
|
|
|
|
449.6
|
|
Depreciation and
amortization
|
|
|
227.9
|
|
|
|
1.4
|
|
|
|
8.0
|
|
|
|
—
|
|
|
|
237.3
|
|
Taxes, other than
income taxes
|
|
|
176.2
|
|
|
|
0.6
|
|
|
|
2.7
|
|
|
|
—
|
|
|
|
179.5
|
|
Less: Gross receipts
tax expense
|
|
|
(109.6)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(109.8)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
1,047.7
|
|
|
|
63.3
|
|
|
|
69.2
|
|
|
|
(15.4)
|
|
|
|
1,164.8
|
|
Natural gas
costs
|
|
|
788.8
|
|
|
|
171.4
|
|
|
|
—
|
|
|
|
(36.3)
|
|
|
|
923.9
|
|
Gross receipts tax
expense
|
|
|
109.6
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
109.8
|
|
Operating
Revenues
|
|
$
|
1,946.1
|
|
|
$
|
234.9
|
|
|
$
|
69.2
|
|
|
$
|
(51.7)
|
|
|
$
|
2,198.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
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.