ST. LOUIS, Nov. 6, 2015 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced net income attributable to common stockholders of $343 million, or $1.41 per diluted share, for the third quarter of 2015, compared with $293 million, or $1.20 per diluted share, for the third quarter of 2014.
The year-over-year increase in third quarter 2015 earnings reflected higher retail electric sales volumes driven by warmer summer temperatures that were near normal. The comparison also was favorably affected by earnings on increased investments in electric transmission and delivery infrastructure made under formula ratemaking. In addition, earnings benefited from a seasonal rate redesign and the timing of revenues under formula ratemaking for Ameren Illinois' electric delivery service as well as a lower effective income tax rate.
"We are on track to deliver strong earnings growth in 2015," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "This growth is driven by the execution of our strategy, which includes allocating capital to jurisdictions with modern, constructive regulatory frameworks and managing our costs in a disciplined manner for the benefit of all our stakeholders."
Ameren recorded net income attributable to common stockholders in accordance with generally accepted accounting principles (GAAP) of $601 million, or $2.47 per diluted share, for the nine months ended Sept. 30, 2015, compared to $538 million, or $2.20 per diluted share, for the comparable 2014 period. Excluding certain items discussed below, Ameren recorded core earnings of $592 million, or $2.44 per diluted share, for the first nine months of 2015, compared to core earnings of $541 million, or $2.21 per diluted share, for the comparable 2014 period.
This year-over-year increase in nine-months 2015 core results was favorably affected by earnings on increased investments in electric transmission and delivery infrastructure made under formula ratemaking, a lower effective income tax rate, lower other operations and maintenance expenses, and reduced parent company interest costs. These positive factors were partially offset by higher depreciation and amortization expenses and lower capitalized Ameren Missouri financing costs.
The following items were excluded from core earnings for the first nine months of 2015 and 2014, as applicable:
A reconciliation of GAAP to core earnings per diluted share is as follows:
Three Months |
Nine Months |
|||||||||
2015 |
2014 |
2015 |
2014 |
|||||||
GAAP EPS |
$1.41 |
$1.20 |
$2.47 |
$2.20 |
||||||
Results from discontinued operations |
— |
— |
(0.21) |
0.01 |
||||||
Provision for Callaway COL |
— |
— |
0.18 |
— |
||||||
Core EPS |
$1.41 |
$1.20 |
$2.44 |
$2.21 |
Earnings Guidance
Ameren has narrowed its guidance for 2015 core diluted earnings per share to a range of $2.55 to $2.65, compared with the prior range of $2.45 to $2.65, based on year-to-date results. This core earnings guidance excludes results from discontinued operations and the provision for a Callaway COL. GAAP 2015 diluted earnings per share are now expected to be in a range of $2.58 to $2.68, compared to the prior range of $2.48 to $2.68.
Earnings guidance for 2015 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 decisions and legislative actions; energy center and energy delivery 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 2015 earnings were $239 million, compared with third quarter 2014 earnings of $222 million. This comparison benefited from higher retail electric sales volumes driven by warmer summer temperatures in 2015 that were near normal.
Ameren Illinois Segment Results
Ameren Illinois segment third quarter 2015 earnings were $98 million, compared with third quarter 2014 earnings of $75 million. This comparison benefited from earnings on increased investments in electric transmission and delivery infrastructure made under formula ratemaking. In addition, electric delivery service earnings benefited from a seasonal rate redesign and the timing of revenues under formula ratemaking. The earnings comparison also was favorably affected by higher retail electric sales volumes partially driven by warmer summer temperatures in 2015 that were near normal. These positive factors were partially offset by lower recognized allowed returns on equity for the electric transmission and delivery businesses.
Other Results, including Parent and ATXI
Other earnings, including those of the parent company and Ameren Transmission Company of Illinois (ATXI), for the third quarter of 2015 were $6 million, compared with a loss of $3 million for the third quarter of 2014. These improvements reflected an increase in earnings at ATXI to $9 million from $5 million as a result of increased investments in electric transmission infrastructure made under formula ratemaking, reduced by a lower recognized allowed return on equity. The comparison also benefited from a lower effective income tax rate.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, Nov. 6, to discuss third quarter 2015 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 2015 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 analyst call will be available for replay on Ameren's website for one year. In addition, a telephone replay of the conference call will be available beginning at approximately noon Central Time from Nov. 6 through Nov. 13 by dialing U.S. and Canada 877.660.6853 or international 201.612.7415, and entering ID number 13622386.
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 delivery and transmission service as well as natural gas delivery service while Ameren Missouri provides vertically integrated electric service, with generating capacity of over 10,200 megawatts, and natural gas delivery 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 and core earnings per share guidance, which are non-GAAP measures and may not be comparable to those of other companies. A reconciliation of non-GAAP information to GAAP information has been included in this release. Generally, core earnings (or losses) include earnings or losses attributable to common stockholders 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 consolidated 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 Form 10-K for the year ended Dec. 31, 2014, 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:
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 |
Nine Months Ended | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
Operating Revenues: |
|||||||||||||||
Electric |
$ |
1,700 |
$ |
1,523 |
$ |
4,093 |
$ |
3,864 |
|||||||
Gas |
133 |
147 |
697 |
819 |
|||||||||||
Total operating revenues |
1,833 |
1,670 |
4,790 |
4,683 |
|||||||||||
Operating Expenses: |
|||||||||||||||
Fuel |
259 |
236 |
670 |
638 |
|||||||||||
Purchased power |
153 |
114 |
393 |
340 |
|||||||||||
Gas purchased for resale |
38 |
49 |
320 |
432 |
|||||||||||
Other operations and maintenance |
428 |
402 |
1,256 |
1,231 |
|||||||||||
Provision for Callaway construction and operating license |
— |
— |
69 |
— |
|||||||||||
Depreciation and amortization |
201 |
187 |
594 |
551 |
|||||||||||
Taxes other than income taxes |
128 |
121 |
369 |
362 |
|||||||||||
Total operating expenses |
1,207 |
1,109 |
3,671 |
3,554 |
|||||||||||
Operating Income |
626 |
561 |
1,119 |
1,129 |
|||||||||||
Other Income and Expense: |
|||||||||||||||
Miscellaneous income |
19 |
21 |
54 |
60 |
|||||||||||
Miscellaneous expense |
5 |
7 |
22 |
20 |
|||||||||||
Total other income |
14 |
14 |
32 |
40 |
|||||||||||
Interest Charges |
87 |
85 |
264 |
266 |
|||||||||||
Income Before Income Taxes |
553 |
490 |
887 |
903 |
|||||||||||
Income Taxes |
208 |
194 |
333 |
357 |
|||||||||||
Income from Continuing Operations |
345 |
296 |
554 |
546 |
|||||||||||
Income (Loss) from Discontinued Operations, Net of Taxes |
— |
(1) |
52 |
(3) |
|||||||||||
Net Income |
345 |
295 |
606 |
543 |
|||||||||||
Less: Net Income from Continuing Operations Attributable to Noncontrolling Interests |
2 |
2 |
5 |
5 |
|||||||||||
Net Income (Loss) Attributable to Ameren Common Stockholders: |
|||||||||||||||
Continuing Operations |
343 |
294 |
549 |
541 |
|||||||||||
Discontinued Operations |
— |
(1) |
52 |
(3) |
|||||||||||
Net Income Attributable to Ameren Common Stockholders |
$ |
343 |
$ |
293 |
$ |
601 |
$ |
538 |
|||||||
Earnings (Loss) per Common Share – Basic: |
|||||||||||||||
Continuing Operations |
$ |
1.42 |
$ |
1.21 |
$ |
2.27 |
$ |
2.23 |
|||||||
Discontinued Operations |
— |
— |
0.21 |
(0.01) |
|||||||||||
Earnings per Common Share – Basic |
$ |
1.42 |
$ |
1.21 |
$ |
2.48 |
$ |
2.22 |
|||||||
Earnings (Loss) per Common Share – Diluted: |
|||||||||||||||
Continuing Operations |
$ |
1.41 |
$ |
1.20 |
$ |
2.26 |
$ |
2.21 |
|||||||
Discontinued Operations |
— |
— |
0.21 |
(0.01) |
|||||||||||
Earnings per Common Share – Diluted |
$ |
1.41 |
$ |
1.20 |
$ |
2.47 |
$ |
2.20 |
|||||||
Average Common Shares Outstanding – Basic |
242.6 |
242.6 |
242.6 |
242.6 |
|||||||||||
Average Common Shares Outstanding – Diluted |
243.9 |
244.3 |
243.8 |
244.3 |
AMEREN CORPORATION (AEE) CONSOLIDATED BALANCE SHEET (Unaudited, in millions) | |||||||
September 30, 2015 |
December 31, 2014 | ||||||
ASSETS |
|||||||
Current Assets: |
|||||||
Cash and cash equivalents |
$ |
72 |
$ |
5 |
|||
Accounts receivable - trade (less allowance for doubtful accounts) |
508 |
423 |
|||||
Unbilled revenue |
234 |
265 |
|||||
Miscellaneous accounts and notes receivable |
113 |
81 |
|||||
Materials and supplies |
548 |
524 |
|||||
Current regulatory assets |
163 |
295 |
|||||
Current accumulated deferred income taxes, net |
225 |
352 |
|||||
Other current assets |
103 |
86 |
|||||
Assets of discontinued operations |
17 |
15 |
|||||
Total current assets |
1,983 |
2,046 |
|||||
Property and Plant, Net |
18,307 |
17,424 |
|||||
Investments and Other Assets: |
|||||||
Nuclear decommissioning trust fund |
534 |
549 |
|||||
Goodwill |
411 |
411 |
|||||
Regulatory assets |
1,578 |
1,582 |
|||||
Other assets |
646 |
664 |
|||||
Total investments and other assets |
3,169 |
3,206 |
|||||
TOTAL ASSETS |
$ |
23,459 |
$ |
22,676 |
|||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities: |
|||||||
Current maturities of long-term debt |
$ |
395 |
$ |
120 |
|||
Short-term debt |
783 |
714 |
|||||
Accounts and wages payable |
525 |
711 |
|||||
Taxes accrued |
160 |
46 |
|||||
Interest accrued |
103 |
85 |
|||||
Current regulatory liabilities |
89 |
106 |
|||||
Other current liabilities |
404 |
434 |
|||||
Liabilities of discontinued operations |
30 |
33 |
|||||
Total current liabilities |
2,489 |
2,249 |
|||||
Long-term Debt, Net |
5,981 |
6,120 |
|||||
Deferred Credits and Other Liabilities: |
|||||||
Accumulated deferred income taxes, net |
4,084 |
3,923 |
|||||
Accumulated deferred investment tax credits |
62 |
64 |
|||||
Regulatory liabilities |
1,894 |
1,850 |
|||||
Asset retirement obligations |
597 |
396 |
|||||
Pension and other postretirement benefits |
666 |
705 |
|||||
Other deferred credits and liabilities |
530 |
514 |
|||||
Total deferred credits and other liabilities |
7,833 |
7,452 |
|||||
Ameren Corporation Stockholders' Equity: |
|||||||
Common stock |
2 |
2 |
|||||
Other paid-in capital, principally premium on common stock |
5,612 |
5,617 |
|||||
Retained earnings |
1,405 |
1,103 |
|||||
Accumulated other comprehensive loss |
(5) |
(9) |
|||||
Total Ameren Corporation stockholders' equity |
7,014 |
6,713 |
|||||
Noncontrolling Interests |
142 |
142 |
|||||
Total equity |
7,156 |
6,855 |
|||||
TOTAL LIABILITIES AND EQUITY |
$ |
23,459 |
$ |
22,676 |
AMEREN CORPORATION (AEE) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in millions) | |||||||
Nine Months Ended September 30, | |||||||
2015 |
2014 | ||||||
Cash Flows From Operating Activities: |
|||||||
Net income |
$ |
606 |
$ |
543 |
|||
(Income) loss from discontinued operations, net of taxes |
(52) |
3 |
|||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Provision for Callaway construction and operating license |
69 |
— |
|||||
Depreciation and amortization |
582 |
526 |
|||||
Amortization of nuclear fuel |
71 |
70 |
|||||
Amortization of debt issuance costs and premium/discounts |
16 |
16 |
|||||
Deferred income taxes and investment tax credits, net |
318 |
370 |
|||||
Allowance for equity funds used during construction |
(19) |
(26) |
|||||
Stock-based compensation costs |
20 |
20 |
|||||
Other |
(8) |
(9) |
|||||
Changes in assets and liabilities: |
(70) |
(305) |
|||||
Net cash provided by operating activities – continuing operations |
1,533 |
1,208 |
|||||
Net cash used in operating activities – discontinued operations |
(5) |
(5) |
|||||
Net cash provided by operating activities |
1,528 |
1,203 |
|||||
Cash Flows From Investing Activities: |
|||||||
Capital expenditures |
(1,332) |
(1,310) |
|||||
Nuclear fuel expenditures |
(30) |
(28) |
|||||
Purchases of securities – nuclear decommissioning trust fund |
(301) |
(365) |
|||||
Sales and maturities of securities – nuclear decommissioning trust fund |
290 |
354 |
|||||
Proceeds from note receivable - Illinois Power Marketing Company |
12 |
79 |
|||||
Contributions to note receivable - Illinois Power Marketing Company |
(8) |
(84) |
|||||
Other |
7 |
3 |
|||||
Net cash used in investing activities – continuing operations |
(1,362) |
(1,351) |
|||||
Net cash provided by investing activities – discontinued operations |
— |
139 |
|||||
Net cash used in investing activities |
(1,362) |
(1,212) |
|||||
Cash Flows From Financing Activities: |
|||||||
Dividends on common stock |
(298) |
(291) |
|||||
Dividends paid to noncontrolling interest holders |
(5) |
(5) |
|||||
Short-term debt, net |
69 |
385 |
|||||
Redemptions and maturities of long-term debt |
(114) |
(692) |
|||||
Issuances of long-term debt |
249 |
598 |
|||||
Capital issuance costs |
(2) |
(4) |
|||||
Other |
2 |
1 |
|||||
Net cash used in financing activities – continuing operations |
(99) |
(8) |
|||||
Net cash used in financing activities – discontinued operations |
— |
— |
|||||
Net cash used in financing activities |
(99) |
(8) |
|||||
Net change in cash and cash equivalents |
67 |
(17) |
|||||
Cash and cash equivalents at beginning of year |
5 |
30 |
|||||
Cash and cash equivalents at end of period |
$ |
72 |
$ |
13 |
AMEREN CORPORATION (AEE) OPERATING STATISTICS FROM CONTINUING OPERATIONS | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
Electric Sales - kilowatthours (in millions): |
|||||||||||||||
Ameren Missouri |
|||||||||||||||
Residential |
3,587 |
3,400 |
10,186 |
10,479 |
|||||||||||
Commercial |
4,109 |
3,984 |
11,254 |
11,206 |
|||||||||||
Industrial |
2,152 |
2,233 |
6,252 |
6,511 |
|||||||||||
Off-system |
1,673 |
1,895 |
5,510 |
4,786 |
|||||||||||
Other |
29 |
29 |
90 |
89 |
|||||||||||
Ameren Missouri total |
11,550 |
11,541 |
33,292 |
33,071 |
|||||||||||
Ameren Illinois |
|||||||||||||||
Residential |
|||||||||||||||
Power supply and delivery service |
1,320 |
1,199 |
3,763 |
3,440 |
|||||||||||
Delivery service only |
1,970 |
1,798 |
5,270 |
5,631 |
|||||||||||
Commercial |
|||||||||||||||
Power supply and delivery service |
778 |
649 |
2,174 |
1,933 |
|||||||||||
Delivery service only |
2,632 |
2,589 |
7,153 |
7,230 |
|||||||||||
Industrial |
|||||||||||||||
Power supply and delivery service |
427 |
403 |
1,330 |
1,288 |
|||||||||||
Delivery service only |
2,630 |
2,732 |
7,750 |
7,920 |
|||||||||||
Other |
127 |
119 |
394 |
386 |
|||||||||||
Ameren Illinois total |
9,884 |
9,489 |
27,834 |
27,828 |
|||||||||||
Eliminate affiliate sales |
(110) |
(17) |
(206) |
(67) |
|||||||||||
Ameren Total from Continuing Operations |
21,324 |
21,013 |
60,920 |
60,832 |
|||||||||||
Electric Revenues (in millions): |
|||||||||||||||
Ameren Missouri |
|||||||||||||||
Residential |
$ |
494 |
$ |
436 |
$ |
1,179 |
$ |
1,130 |
|||||||
Commercial |
428 |
393 |
1,004 |
956 |
|||||||||||
Industrial |
151 |
152 |
370 |
373 |
|||||||||||
Off-system |
53 |
54 |
142 |
137 |
|||||||||||
Other |
25 |
41 |
57 |
100 |
|||||||||||
Ameren Missouri total |
$ |
1,151 |
$ |
1,076 |
$ |
2,752 |
$ |
2,696 |
|||||||
Ameren Illinois |
|||||||||||||||
Residential |
|||||||||||||||
Power supply and delivery service |
$ |
164 |
$ |
130 |
$ |
382 |
$ |
353 |
|||||||
Delivery service only |
125 |
91 |
288 |
245 |
|||||||||||
Commercial |
|||||||||||||||
Power supply and delivery service |
81 |
65 |
188 |
180 |
|||||||||||
Delivery service only |
75 |
55 |
177 |
143 |
|||||||||||
Industrial |
|||||||||||||||
Power supply and delivery service |
20 |
18 |
59 |
68 |
|||||||||||
Delivery service only |
12 |
11 |
40 |
31 |
|||||||||||
Other |
63 |
75 |
182 |
142 |
|||||||||||
Ameren Illinois total |
$ |
540 |
$ |
445 |
$ |
1,316 |
$ |
1,162 |
|||||||
ATXI |
|||||||||||||||
Transmission services |
$ |
19 |
$ |
10 |
$ |
56 |
$ |
29 |
|||||||
Eliminate affiliate revenues |
(10) |
(8) |
(31) |
(23) |
|||||||||||
Ameren Total from Continuing Operations |
$ |
1,700 |
$ |
1,523 |
$ |
4,093 |
$ |
3,864 |
AMEREN CORPORATION (AEE) OPERATING STATISTICS FROM CONTINUING OPERATIONS | |||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||
September 30, |
September 30, | ||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||
Electric Generation - kilowatthours (in millions): |
|||||||||||||
Ameren Missouri |
11,424 |
11,688 |
32,776 |
33,720 |
|||||||||
Fuel Cost per kilowatthour (in cents): |
|||||||||||||
Ameren Missouri |
1.970 |
1.951 |
1.884 |
1.919 |
|||||||||
Gas Sales - dekatherms (in thousands): |
|||||||||||||
Ameren Missouri |
2,445 |
2,257 |
13,265 |
13,550 |
|||||||||
Ameren Illinois |
24,560 |
23,823 |
123,618 |
130,134 |
|||||||||
Ameren Total |
27,005 |
26,080 |
136,883 |
143,684 |
|||||||||
September 30, 2015 |
December 31, 2014 | ||||||||||||
Common Stock: |
|||||||||||||
Shares outstanding (in millions) |
242.6 |
242.6 |
|||||||||||
Book value per share |
$ |
28.91 |
$ |
27.67 |
|||||||||
Capitalization Ratios: |
|||||||||||||
Common equity |
49.2 |
% |
48.7 |
% | |||||||||
Preferred stock |
1.0 |
% |
1.0 |
% | |||||||||
Debt, net of cash |
49.8 |
% |
50.3 |
% | |||||||||
SOURCE Ameren Corporation