News Releases

<< [Back to News]

Ameren (NYSE: AEE) Announces Third Quarter 2016 Results and Raises 2016 Earnings Guidance Range
- Third Quarter Diluted Earnings Per Share were $1.52 in 2016, Compared to $1.41 in 2015
- Guidance Range for 2016 Diluted EPS Raised to $2.65 to $2.75 from $2.45 to $2.65

ST. LOUIS, Nov. 4, 2016 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced third quarter 2016 net income attributable to common shareholders of $369 million, or $1.52 per diluted share, compared to third quarter 2015 net income attributable to common shareholders of $343 million, or $1.41 per diluted share.

The year-over-year third quarter earnings increase reflected higher 2016 electric sales to residential and commercial customers, driven by warmer summer temperatures. Earnings in 2016 also benefited from increased electric transmission and electric and natural gas distribution infrastructure investments made by Ameren Transmission Company of Illinois (ATXI) and Ameren Illinois under modern, constructive regulatory frameworks. These positive factors were partially offset by lower electric sales to the New Madrid, Missouri aluminum smelter. The smelter, which was historically Ameren Missouri's largest customer and was formerly owned by Noranda Aluminum, Inc., suspended operations in early 2016. Third quarter 2016 results also reflected increased Ameren Missouri depreciation expense.

"We are on track to deliver strong earnings results for 2016," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "Our team continued to successfully execute all elements of our strategy, including allocating capital to jurisdictions with modern, constructive regulatory frameworks and managing costs in a disciplined manner. That performance drove strong third quarter earnings, which also benefited from warmer-than-normal summer temperatures. As a result, I am pleased to report that we have raised our 2016 guidance to a range of $2.65 to $2.75 per share, up from our prior range of $2.45 to $2.65 per share."

Ameren recorded net income attributable to common shareholders in accordance with Generally Accepted Accounting Principles (GAAP) for the nine months ended Sept. 30, 2016, of $621 million, or $2.56 per diluted share, compared to GAAP net income attributable to common shareholders of $601 million, or $2.47 per diluted share, for the same period in 2015. Excluding certain items discussed below, Ameren recorded core earnings of $592 million, or $2.44 per diluted share, for the nine months ended Sept. 30, 2015.

GAAP earnings for the first nine months of 2015 included results from discontinued operations and a loss provision for discontinuing the pursuit of a construction and operating license (COL) for a second nuclear unit at Ameren  Missouri's Callaway Energy Center, but these two items were excluded from core earnings. The year-over-year nine-month earnings comparisons reflected increased 2016 electric transmission and electric and natural gas distribution infrastructure investments made by ATXI and Ameren Illinois. The earnings comparisons also benefited from increased Illinois natural gas distribution service rates, higher summer 2016 electric sales to residential and commercial customers driven by warmer temperatures, as well as first quarter 2016 tax benefits associated with share-based compensation. These factors were partially offset by lower electric sales to the New Madrid smelter, the 2016 nuclear refueling and maintenance outage expenses at the Callaway Energy Center, and unfavorable net impacts of the 2015 Missouri energy efficiency plan.

As reflected in the table below, the following items were excluded from core earnings for the nine months ended Sept. 30, 2015:

  • Results from discontinued operations, which increased 2015 GAAP net income for the nine-month period by $52 million, primarily due to recognition of a tax benefit related to the resolution of an uncertain tax position.
  • A provision for discontinuing pursuit of a COL for a second nuclear unit at Ameren Missouri's Callaway Energy Center, which decreased 2015 net income from continuing operations for the nine-month period by $43 million.

A reconciliation of GAAP to core earnings, including per share amounts, is as follows:


Nine Months Ended


Sept. 30,


2016

2015

GAAP Earnings / Diluted EPS

$

621


$

2.56


$

601


$

2.47


Results from discontinued operations





  Operating income before income tax



(3)


(0.01)


  Income tax benefit



(49)


(0.20)


Income from discontinued operations,  net of taxes



(52)


(0.21)







Provision for Callaway COL





  Provision before income tax



69


0.29


  Income tax expense



(26)


(0.11)


 Provision, net of taxes



43


0.18


Core Earnings / Diluted EPS

$

621


$

2.56


$

592


$

2.44


 

Earnings Guidance

Ameren now expects its 2016 earnings to be in a range of $2.65 to $2.75 per diluted share, an increase from its prior range of $2.45 to $2.65 per diluted share. This updated guidance reflects strong year-to-date results and continues to include an estimated 15 cents per share reduction related to the expected temporary net effect of significantly lower electric sales to the New Madrid smelter.

Earnings guidance for 2016 assumes normal temperatures for the last three months of this year and is subject to the effects of, among other things: 30-year U.S. Treasury bond yields; regulatory, judicial and legislative actions; energy center and energy distribution operations; energy, economic, capital and credit market conditions; severe storms; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward-looking Statements section of this press release.

Ameren Missouri Segment Results

Ameren Missouri segment third quarter 2016 earnings were $241 million, compared to third quarter 2015 earnings of $239 million. The year-over-year earnings improvement reflected higher 2016 electric sales to residential and commercial customers, driven by warmer summer temperatures. This positive factor was partially offset by lower electric sales to the New Madrid smelter and higher depreciation expense.

Ameren Illinois Segment Results

Ameren Illinois segment third quarter 2016 earnings were $119 million, compared to third quarter 2015 earnings of $98 million. The year-over-year earnings improvement reflected increased investments in electric transmission and distribution infrastructure, as well as increased electric sales, driven by warmer summer temperatures.

Other Results from Continuing Operations, including ATXI and Parent

Other earnings, including those of ATXI and the parent company, for the third quarter of 2016 were $9 million, compared to third quarter 2015 earnings of $6 million. The higher earnings reflected an increase in ATXI earnings to $17 million from $9 million, primarily as a result of increased investments in electric transmission infrastructure, partially offset by increased parent company interest charges resulting from the November 2015 issuance of $700 million of senior notes that replaced lower-cost, short-term debt.

Analyst Conference Call

Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, Nov. 4, to discuss third quarter 2016 earnings, earnings guidance, and regulatory and other matters. Investors, the news media and the public may listen to a live Internet broadcast of the call at Ameren.com by clicking on "Q3 2016 Ameren Corporation Earnings Conference Call," followed by the appropriate audio link. An accompanying slide presentation will be available on Ameren's website. The conference call and this presentation will be accessible in the "Investors" section of the website under "Webcasts & Presentations." The conference call will be available for replay on Ameren's website for one year. In addition, a telephone replay will be available beginning at approximately noon Central Time from Nov. 4 through Nov. 11 by dialing U.S. and Canada 877.660.6853 or international 201.612.7415, and entering ID number 13648680.

About Ameren

St. Louis-based Ameren Corporation powers the quality of life for 2.4 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric distribution and transmission service, as well as natural gas distribution service, while Ameren Missouri provides vertically integrated electric service, with generating capacity of over 10,200 megawatts, and natural gas distribution service. Ameren Transmission Company of Illinois develops regional electric transmission projects. Follow the company on Twitter @AmerenCorp. For more information, visit Ameren.com.

Use of Non-GAAP Financial Measures

In this release, Ameren has presented core earnings, which is a non-GAAP measure and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP results has been included in this release. Generally, core earnings or losses include earnings or losses attributable to Ameren common shareholders and exclude income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as the Callaway COL provision. Ameren uses core earnings internally for financial planning and for analysis of performance. Ameren also uses core earnings as the primary performance measurement when communicating with analysts and investors regarding our earnings results and outlook, as the company believes that core earnings allow the company to more accurately compare its ongoing performance across periods. In providing core earnings guidance, there could be differences between core earnings and earnings prepared in accordance with GAAP as a result of our treatment of certain items, such as those described above. Ameren is unable to estimate the impact, if any, on future GAAP earnings of such items.

Forward-looking Statements

Statements in this release not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, strategies, objectives, events, conditions, and financial performance. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed under Risk Factors in Ameren's Annual Report on Form 10-K for the year ended December 31, 2015, and elsewhere in this release and in our other filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:

  • regulatory, judicial, or legislative actions, including changes in regulatory policies and ratemaking determinations, such as those that may result from the complaint case filed in February 2015 with the Federal Energy Regulatory Commission seeking a reduction in the allowed base return on common equity under the Midcontinent Independent System Operator tariff, Ameren Missouri's July 2016 electric rate case filing, Ameren Missouri's appeal of a Missouri Public Service Commission (MoPSC) order that clarified the method applied to determine an input used to calculate its performance incentive under the Missouri Energy Efficiency Investment Act (MEEIA) 2013 plan, Ameren Illinois' April 2016 annual electric distribution service formula rate update filing, and future regulatory, judicial, or legislative actions that change regulatory recovery mechanisms;
  • the effect of Ameren Illinois participating in a performance-based formula ratemaking process under the Illinois Energy Infrastructure Modernization Act (IEIMA), including the direct relationship between Ameren Illinois' return on common equity and 30-year United States Treasury bond yields, the related financial commitments required by the IEIMA;
  • our ability to align our overall spending, both operating and capital, with regulatory frameworks established by our regulators in an attempt to earn our allowed return on equity;
  • the effects of changes in federal, state, or local laws and other governmental actions, including monetary, fiscal, tax, and energy policies;
  • the effects of changes in federal, state, or local tax laws, regulations, interpretations, or rates and any challenges to the tax positions we have taken;
  • the effects on demand for our services resulting from technological advances, including advances in customer energy efficiency and private generation sources, which generate electricity at the site of consumption and are becoming more cost-competitive;
  • the effectiveness of Ameren Missouri's customer energy efficiency programs and the related revenues and performance incentives earned under its MEEIA plans;
  • the timing of increasing capital expenditure and operating expense requirements and our ability to recover these costs in a timely manner;
  • the cost and availability of fuel, such as coal, natural gas, and enriched uranium used to produce electricity, the cost and availability of purchased power and natural gas for distribution, and the level and volatility of future market prices for such commodities, including our ability to recover the costs for such commodities and our customers' tolerance for the related rate increases;
  • disruptions in the delivery of fuel, failure of our fuel suppliers to provide adequate quantities or quality of fuel, or lack of adequate inventories of fuel, including ultra-low-sulfur coal used for Ameren Missouri's compliance with environmental regulations;
  • the effectiveness of our risk management strategies and our use of financial and derivative instruments;
  • the ability to obtain sufficient insurance, including insurance relating to Ameren Missouri's Callaway Energy Center, or, in the absence of insurance, the ability to recover uninsured losses from our customers;
  • business and economic conditions, including their impact on key customers, interest rates, collection of our receivable balances, and demand for our products;
  • suspended operations at the New Madrid smelter, and the resulting impacts to Ameren Missouri's ability to recover its revenue requirement in its July 2016 electric rate case and future rate cases to accurately reflect the New Madrid smelter's actual sales volumes;
  • disruptions of the capital markets, deterioration in our credit metrics, or other events that may have an adverse effect on the cost or availability of capital, including short-term credit and liquidity;
  • the actions of credit rating agencies and the effects of such actions;
  • the impact of adopting new accounting guidance and the application of appropriate accounting rules and guidance;
  • the impact of weather conditions and other natural phenomena on us and our customers, including the impact of system outages;
  • the construction, installation, performance, and cost recovery of generation, transmission, and distribution assets;
  • the effects of breakdowns or failures of equipment in the operation of natural gas distribution and transmission systems and storage facilities, such as leaks, explosions and mechanical problems, and compliance with natural gas safety regulations;
  • the effects of our increasing investment in electric transmission projects, our ability to obtain all of the necessary approvals to complete the projects, and the uncertainty as to whether we will achieve our expected returns in a timely manner;
  • operation of Ameren Missouri's Callaway Energy Center, including planned and unplanned outages, and decommissioning costs;
  • the effects of strategic initiatives, including mergers, acquisitions and divestitures, and any related tax implications;
  • the impact of current environmental regulations and new, more stringent, or changing requirements, including those related to carbon dioxide, other emissions and discharges, cooling water intake structures, coal combustion residuals, and energy efficiency, that are enacted over time and that could limit or terminate the operation of certain of Ameren Missouri's energy centers, increase our costs or investment requirements, result in an impairment of our assets, cause us to sell our assets, reduce our customers' demand for electricity or natural gas, or otherwise have a negative financial effect;
  • the impact of complying with renewable energy portfolio requirements in Missouri;
  • labor disputes, work force reductions, future wage and employee benefits costs, including changes in discount rates, mortality tables, and returns on benefit plan assets;
  • the inability of our counterparties to meet their obligations with respect to contracts, credit agreements, and financial instruments;
  • the cost and availability of transmission capacity for the energy generated by Ameren Missouri's energy centers or required to satisfy Ameren Missouri's energy sales;
  • legal and administrative proceedings;
  • the impact of cyber attacks, which could result in the loss of operational control of energy centers and electric and natural gas transmission and distribution systems and/or the loss of data, such as customer data and account information; and
  • acts of sabotage, war, terrorism, or other intentionally disruptive acts.

New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.

AMEREN CORPORATION (AEE)

CONSOLIDATED STATEMENT OF INCOME

(Unaudited, in millions, except per share amounts)






Three Months Ended
September 30,


Nine Months Ended
September 30,


2016


2015


2016


2015

Operating Revenues:








Electric

$

1,725



$

1,700



$

4,101



$

4,093


Gas

134



133



619



697


Total operating revenues

1,859



1,833



4,720



4,790


Operating Expenses:








Fuel

205



259



574



670


Purchased power

178



153



451



393


Gas purchased for resale

34



38



227



320


Other operations and maintenance

411



428



1,246



1,256


Provision for Callaway construction and operating license







69


Depreciation and amortization

211



201



628



594


Taxes other than income taxes

129



128



358



369


Total operating expenses

1,168



1,207



3,484



3,671


Operating Income

691



626



1,236



1,119


Other Income and Expense:








Miscellaneous income

18



19



54



54


Miscellaneous expense

8



5



21



22


Total other income

10



14



33



32


Interest Charges

97



87



287



264


Income Before Income Taxes

604



553



982



887


Income Taxes

233



208



356



333


Income from Continuing Operations

371



345



626



554


Income from Discontinued Operations, Net of Taxes







52


Net Income

371



345



626



606


Less: Net Income from Continuing Operations Attributable to Noncontrolling Interests

2



2



5



5


Net Income Attributable to Ameren Common Shareholders:








Continuing Operations

369



343



621



549


Discontinued Operations







52


Net Income Attributable to Ameren Common Shareholders

$

369



$

343



$

621



$

601


Earnings per Common Share – Basic:








Continuing Operations

$

1.52



$

1.42



$

2.56



$

2.27


Discontinued Operations







0.21


Earnings per Common Share – Basic

$

1.52



$

1.42



$

2.56



$

2.48










Earnings per Common Share – Diluted:








Continuing Operations

$

1.52



$

1.41



$

2.56



$

2.26


Discontinued Operations







0.21


Earnings per Common Share – Diluted

$

1.52



$

1.41



$

2.56



$

2.47










Average Common Shares Outstanding – Basic

242.6



242.6



242.6



242.6


Average Common Shares Outstanding – Diluted

242.9



243.9



243.0



243.8


 

AMEREN CORPORATION (AEE)

CONSOLIDATED BALANCE SHEET

(Unaudited, in millions)






September 30,
2016


December 31,
2015

ASSETS




Current Assets:




Cash and cash equivalents

$

18



$

292


Accounts receivable - trade (less allowance for doubtful accounts)

543



388


Unbilled revenue

240



239


Miscellaneous accounts receivable

49



98


Materials and supplies

551



538


Current regulatory assets

107



260


Other current assets

76



88


Assets of discontinued operations

15



14


Total current assets

1,599



1,917


Property and Plant, Net

19,647



18,799


Investments and Other Assets:




Nuclear decommissioning trust fund

599



556


Goodwill

411



411


Regulatory assets

1,312



1,382


Other assets

566



575


Total investments and other assets

2,888



2,924


TOTAL ASSETS

$

24,134



$

23,640


LIABILITIES AND EQUITY




Current Liabilities:




Current maturities of long-term debt

$

431



$

395


Short-term debt

608



301


Accounts and wages payable

513



777


Taxes accrued

159



43


Interest accrued

110



89


Customer deposits

104



100


Current regulatory liabilities

87



80


Other current liabilities

252



279


Liabilities of discontinued operations

27



29


Total current liabilities

2,291



2,093


Long-term Debt, Net

6,607



6,880


Deferred Credits and Other Liabilities:




Accumulated deferred income taxes, net

4,255



3,885


Accumulated deferred investment tax credits

56



60


Regulatory liabilities

1,974



1,905


Asset retirement obligations

636



618


Pension and other postretirement benefits

499



580


Other deferred credits and liabilities

481



531


Total deferred credits and other liabilities

7,901



7,579


Ameren Corporation Shareholders' Equity:




Common stock

2



2


Other paid-in capital, principally premium on common stock

5,550



5,616


Retained earnings

1,643



1,331


Accumulated other comprehensive loss

(2)



(3)


Total Ameren Corporation shareholders' equity

7,193



6,946


Noncontrolling Interests

142



142


Total equity

7,335



7,088


TOTAL LIABILITIES AND EQUITY

$

24,134



$

23,640


 

AMEREN CORPORATION (AEE)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited, in millions)




Nine Months Ended September 30,


2016


2015

Cash Flows From Operating Activities:




Net income

$

626



$

606


Income from discontinued operations, net of taxes



(52)


Adjustments to reconcile net income to net cash provided by operating activities:




Provision for Callaway construction and operating license



69


Depreciation and amortization

625



582


Amortization of nuclear fuel

63



71


Amortization of debt issuance costs and premium/discounts

17



16


Deferred income taxes and investment tax credits, net

364



318


Allowance for equity funds used during construction

(20)



(19)


Share-based compensation costs

17



20


Other

(9)



(8)


Changes in assets and liabilities

(124)



(56)


Net cash provided by operating activities – continuing operations

1,559



1,547


Net cash used in operating activities – discontinued operations



(5)


Net cash provided by operating activities

1,559



1,542


Cash Flows From Investing Activities:




Capital expenditures

(1,496)



(1,332)


Nuclear fuel expenditures

(41)



(30)


Purchases of securities – nuclear decommissioning trust fund

(310)



(301)


Sales and maturities of securities – nuclear decommissioning trust fund

297



290


Proceeds from note receivable – Illinois Power Marketing Company



12


Contributions to note receivable – Illinois Power Marketing Company



(8)


Other

(1)



7


Net cash used in investing activities – continuing operations

(1,551)



(1,362)


Net cash used in investing activities – discontinued operations




Net cash used in investing activities

(1,551)



(1,362)


Cash Flows From Financing Activities:




Dividends on common stock

(309)



(298)


Dividends paid to noncontrolling interest holders

(5)



(5)


Short-term debt, net

307



69


Maturities of long-term debt

(389)



(114)


Issuances of long-term debt

149



249


Employee withholding taxes related to share-based payments

(32)



(12)


Capital issuance costs

(1)



(2)


Other

(2)




Net cash used in financing activities – continuing operations

(282)



(113)


Net change in cash and cash equivalents

(274)



67


Cash and cash equivalents at beginning of year

292



5


Cash and cash equivalents at end of period

$

18



$

72


 

AMEREN CORPORATION (AEE)

OPERATING STATISTICS FROM CONTINUING OPERATIONS






Three Months Ended
September 30,


Nine Months Ended
September 30,


2016


2015


2016


2015

Electric Sales - kilowatthours (in millions):








Ameren Missouri








Residential

3,867



3,587



10,243



10,186


Commercial

4,190



4,109



11,269



11,254


Industrial

1,239



2,152



3,683



6,252


Off-system and other

1,823



1,702



5,149



5,600


Ameren Missouri total

11,119



11,550



30,344



33,292


Ameren Illinois








Residential








Power supply and delivery service

1,351



1,320



3,547



3,763


Delivery service only

2,106



1,970



5,354



5,270


Commercial








Power supply and delivery service

794



778



2,168



2,174


Delivery service only

2,830



2,632



7,292



7,153


Industrial








Power supply and delivery service

199



427



494



1,330


Delivery service only

2,989



2,630



8,401



7,750


Other

127



127



390



394


Ameren Illinois total

10,396



9,884



27,646



27,834


Eliminate affiliate sales

(117)



(110)



(394)



(206)


Ameren Total from Continuing Operations

21,398



21,324



57,596



60,920


Electric Revenues (in millions):








Ameren Missouri








Residential

$

499



$

494



$

1,153



$

1,179


Commercial

416



428



982



1,004


Industrial

101



151



251



370


Off-system and other

128



78



296



199


Ameren Missouri total

$

1,144



$

1,151



$

2,682



$

2,752


Ameren Illinois








Residential








Power supply and delivery service

$

151



$

164



$

376



$

382


Delivery service only

145



125



333



288


Commercial








Power supply and delivery service

76



81



193



188


Delivery service only

94



75



210



177


Industrial








Power supply and delivery service

10



20



23



59


Delivery service only

16



12



47



40


Other

70



63



183



182


Ameren Illinois total

$

562



$

540



$

1,365



$

1,316


ATXI








Transmission services

$

35



$

19



$

96



$

56


Eliminate affiliate revenues

(16)



(10)



(42)



(31)


Ameren Total from Continuing Operations

$

1,725



$

1,700



$

4,101



$

4,093


 

AMEREN CORPORATION (AEE)

OPERATING STATISTICS FROM CONTINUING OPERATIONS






Three Months Ended


Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015

Gas Sales - dekatherms (in millions):








Ameren Missouri

3



2



13



13


Ameren Illinois

26



25



118



124


Ameren Total

29



27



131



137


Gas Revenues (in millions):







Ameren Missouri

$

20



$

19



$

90



$

101


Ameren Illinois

114



115



530



597


Eliminate affiliate revenues



(1)



(1)



(1)


Ameren Total

$

134



$

133



$

619



$

697


Net Income Attributable to Ameren Common Shareholders by Segment from Continuing Operations (in millions):








Ameren Missouri

$

241



$

239



$

347



$

341


Ameren Illinois

119



98



223



182


Other:








ATXI

17



9



46



26


Parent and other

(8)



(3)



5




Other total

9



6



51



26


Ameren Total

$

369



$

343



$

621



$

549





September 30,
2016




December 31,
2015

Common Stock:








Shares outstanding (in millions)



242.6





242.6


Book value per share



$

29.65





$

28.63


 

SOURCE Ameren Corporation

For further information: Media, Joe Muehlenkamp, 314.554.4135, jmuehlenkamp@ameren.com OR Analysts Investors, Doug Fischer, 314.554.4859, dfischer@ameren.com OR Andrew Kirk, 314.554.3942, akirk@ameren.com OR Investor Services, 800.255.2237, invest@ameren.com

News
Media Resources
Media Kit
Video Library
Ameren Illinois Media
Ameren Missouri Media
Sign Up for Alerts
 
 
Follow Us