ST. LOUIS, May 10, 2016 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced first quarter 2016 net income attributable to common shareholders of $105 million, or $0.43 per share, compared to first quarter 2015 net income attributable to common shareholders of $108 million, or $0.45 per share.
The year-over-year decrease in first quarter 2016 earnings reflected lower electric sales volumes primarily driven by milder winter temperatures and lower sales to Noranda Aluminum, Inc., historically Ameren Missouri's largest customer. These negative factors were partially offset by increased earnings on electric transmission and electric and natural gas delivery infrastructure investments made by Ameren Transmission Company of Illinois (ATXI) and Ameren Illinois under modern, constructive regulatory frameworks, as well as a decrease in the effective income tax rate.
"Our first quarter results were solid, and we remain on track to deliver within our 2016 earnings guidance range of $2.40 to $2.60 per share," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "We continue to successfully execute all elements of our strategy, including strategically allocating capital to jurisdictions with modern, constructive regulatory frameworks and managing costs in a disciplined fashion. We expect this execution to deliver superior value to both our customers and shareholders."
Earnings Guidance
Ameren continues to expect 2016 diluted earnings to be in a range of $2.40 to $2.60 per share including an estimated 15 cents per share reduction related to the expected temporary net effect of significantly lower electric sales volumes to Noranda.
Earnings guidance for 2016 assumes normal temperatures for the last nine 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; Noranda sales levels; 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 first quarter 2016 earnings were $14 million, compared to first quarter 2015 earnings of $41 million. The earnings decline primarily reflected lower electric sales volumes driven by milder winter temperatures, which reduced earnings by an estimated $17 million, and lower sales to Noranda. The earnings comparison was also unfavorably impacted by the carryover effect of the 2013 through 2015 energy efficiency plan.
Ameren Illinois Segment Results
Ameren Illinois segment first quarter 2016 earnings were $59 million, compared to first quarter 2015 earnings of $53 million. The earnings comparison benefited from increased Illinois natural gas delivery service rates as a result of a December 2015 Illinois Commerce Commission order, and earnings on increased investments in transmission and electric delivery infrastructure. These positive factors were partially offset by the absence of a 2015 benefit from prior year recovery of cumulative power usage costs as well as lower electric and natural gas sales volumes primarily driven by milder winter temperatures. These milder temperatures reduced earnings by an estimated $6 million, compared to the prior-year period.
Other Results, including ATXI and Parent
Other earnings, including those of ATXI and the parent company, for the first quarter of 2016 were $32 million, compared to $14 million for the first quarter of 2015. The higher earnings largely reflected a decrease in the effective income tax rate, which was primarily due to recognition of 2016 tax benefits of $21 million associated with share-based compensation. Those benefits were recognized in earnings pursuant to accounting guidance issued in March 2016. In addition, ATXI earnings increased to $15 million from $10 million as a result of increased investments in electric transmission infrastructure. These positive factors were 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 Wednesday, May 11, to discuss first 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 "Q1 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 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 May 11 through May 18 by dialing U.S. and Canada 877.660.6853 or international 201.612.7415, and entering ID number 13636756.
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.
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, 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 | |||||||
2016 |
2015 | ||||||
Operating Revenues: |
|||||||
Electric |
$ |
1,102 |
$ |
1,143 |
|||
Gas |
332 |
413 |
|||||
Total operating revenues |
1,434 |
1,556 |
|||||
Operating Expenses: |
|||||||
Fuel |
203 |
206 |
|||||
Purchased power |
138 |
139 |
|||||
Gas purchased for resale |
152 |
236 |
|||||
Other operations and maintenance |
400 |
401 |
|||||
Depreciation and amortization |
207 |
193 |
|||||
Taxes other than income taxes |
114 |
125 |
|||||
Total operating expenses |
1,214 |
1,300 |
|||||
Operating Income |
220 |
256 |
|||||
Other Income and Expense: |
|||||||
Miscellaneous income |
20 |
19 |
|||||
Miscellaneous expense |
7 |
11 |
|||||
Total other income |
13 |
8 |
|||||
Interest Charges |
95 |
88 |
|||||
Income Before Income Taxes |
138 |
176 |
|||||
Income Taxes |
31 |
66 |
|||||
Income from Continuing Operations |
107 |
110 |
|||||
Income from Discontinued Operations, Net of Taxes |
— |
— |
|||||
Net Income |
107 |
110 |
|||||
Less: Net Income from Continuing Operations Attributable to Noncontrolling Interests |
2 |
2 |
|||||
Net Income Attributable to Ameren Common Shareholders: |
|||||||
Continuing Operations |
105 |
108 |
|||||
Discontinued Operations |
— |
— |
|||||
Net Income Attributable to Ameren Common Shareholders |
$ |
105 |
$ |
108 |
|||
Earnings per Common Share – Basic and Diluted: |
|||||||
Continuing Operations |
$ |
0.43 |
$ |
0.45 |
|||
Discontinued Operations |
— |
— |
|||||
Earnings per Common Share – Basic and Diluted |
$ |
0.43 |
$ |
0.45 |
|||
Average Common Shares Outstanding – Basic |
242.6 |
242.6 |
AMEREN CORPORATION (AEE) | |||||||
CONSOLIDATED BALANCE SHEET | |||||||
(Unaudited, in millions) | |||||||
March 31, |
December 31, | ||||||
ASSETS |
|||||||
Current Assets: |
|||||||
Cash and cash equivalents |
$ |
13 |
$ |
292 |
|||
Accounts receivable - trade (less allowance for doubtful accounts) |
428 |
388 |
|||||
Unbilled revenue |
186 |
239 |
|||||
Miscellaneous accounts and notes receivable |
56 |
98 |
|||||
Materials and supplies |
483 |
538 |
|||||
Current regulatory assets |
215 |
260 |
|||||
Other current assets |
63 |
88 |
|||||
Assets of discontinued operations |
14 |
14 |
|||||
Total current assets |
1,458 |
1,917 |
|||||
Property and Plant, Net |
19,000 |
18,799 |
|||||
Investments and Other Assets: |
|||||||
Nuclear decommissioning trust fund |
567 |
556 |
|||||
Goodwill |
411 |
411 |
|||||
Regulatory assets |
1,376 |
1,382 |
|||||
Other assets |
573 |
575 |
|||||
Total investments and other assets |
2,927 |
2,924 |
|||||
TOTAL ASSETS |
$ |
23,385 |
$ |
23,640 |
|||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities: |
|||||||
Current maturities of long-term debt |
$ |
135 |
$ |
395 |
|||
Short-term debt |
581 |
301 |
|||||
Accounts and wages payable |
429 |
777 |
|||||
Taxes accrued |
77 |
43 |
|||||
Interest accrued |
99 |
89 |
|||||
Customer deposits |
98 |
100 |
|||||
Current regulatory liabilities |
87 |
80 |
|||||
Other current liabilities |
305 |
279 |
|||||
Liabilities of discontinued operations |
28 |
29 |
|||||
Total current liabilities |
1,839 |
2,093 |
|||||
Long-term Debt, Net |
6,881 |
6,880 |
|||||
Deferred Credits and Other Liabilities: |
|||||||
Accumulated deferred income taxes, net |
3,928 |
3,885 |
|||||
Accumulated deferred investment tax credits |
59 |
60 |
|||||
Regulatory liabilities |
1,931 |
1,905 |
|||||
Asset retirement obligations |
625 |
618 |
|||||
Pension and other postretirement benefits |
581 |
580 |
|||||
Other deferred credits and liabilities |
530 |
531 |
|||||
Total deferred credits and other liabilities |
7,654 |
7,579 |
|||||
Ameren Corporation Shareholders' Equity: |
|||||||
Common stock |
2 |
2 |
|||||
Other paid-in capital, principally premium on common stock |
5,539 |
5,616 |
|||||
Retained earnings |
1,333 |
1,331 |
|||||
Accumulated other comprehensive loss |
(5) |
(3) |
|||||
Total Ameren Corporation shareholders' equity |
6,869 |
6,946 |
|||||
Noncontrolling Interests |
142 |
142 |
|||||
Total equity |
7,011 |
7,088 |
|||||
TOTAL LIABILITIES AND EQUITY |
$ |
23,385 |
$ |
23,640 |
AMEREN CORPORATION (AEE) | |||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
(Unaudited, in millions) | |||||||
Three Months Ended March 31, | |||||||
2016 |
2015 | ||||||
Cash Flows From Operating Activities: |
|||||||
Net income |
$ |
107 |
$ |
110 |
|||
(Income) from discontinued operations, net of taxes |
— |
— |
|||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
210 |
195 |
|||||
Amortization of nuclear fuel |
24 |
23 |
|||||
Amortization of debt issuance costs and premium/discounts |
6 |
5 |
|||||
Deferred income taxes and investment tax credits, net |
42 |
59 |
|||||
Allowance for equity funds used during construction |
(8) |
(5) |
|||||
Share-based compensation costs |
6 |
8 |
|||||
Other |
(3) |
(11) |
|||||
Changes in assets and liabilities |
(34) |
(73) |
|||||
Net cash provided by operating activities – continuing operations |
350 |
311 |
|||||
Net cash provided by (used in) operating activities – discontinued operations |
(1) |
1 |
|||||
Net cash provided by operating activities |
349 |
312 |
|||||
Cash Flows From Investing Activities: |
|||||||
Capital expenditures |
(496) |
(417) |
|||||
Nuclear fuel expenditures |
(21) |
(17) |
|||||
Purchases of securities – nuclear decommissioning trust fund |
(130) |
(84) |
|||||
Sales and maturities of securities – nuclear decommissioning trust fund |
125 |
79 |
|||||
Proceeds from note receivable – Illinois Power Marketing Company |
— |
5 |
|||||
Contributions to note receivable – Illinois Power Marketing Company |
— |
(5) |
|||||
Other |
(2) |
— |
|||||
Net cash used in investing activities – continuing operations |
(524) |
(439) |
|||||
Net cash provided by investing activities – discontinued operations |
14 |
— |
|||||
Net cash used in investing activities |
(510) |
(439) |
|||||
Cash Flows From Financing Activities: |
|||||||
Dividends on common stock |
(103) |
(99) |
|||||
Dividends paid to noncontrolling interest holders |
(2) |
(2) |
|||||
Short-term debt, net |
280 |
241 |
|||||
Maturity of long-term debt |
(260) |
— |
|||||
Employee payroll taxes related to share-based payments |
(32) |
(12) |
|||||
Other |
(1) |
— |
|||||
Net cash provided by (used in) financing activities – continuing operations |
(118) |
128 |
|||||
Net change in cash and cash equivalents |
(279) |
1 |
|||||
Cash and cash equivalents at beginning of year |
292 |
5 |
|||||
Cash and cash equivalents at end of period |
$ |
13 |
$ |
6 |
AMEREN CORPORATION (AEE) | |||||||
OPERATING STATISTICS FROM CONTINUING OPERATIONS | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2016 |
2015 | ||||||
Electric Sales - kilowatthours (in millions): |
|||||||
Ameren Missouri |
|||||||
Residential |
3,477 |
3,905 |
|||||
Commercial |
3,469 |
3,589 |
|||||
Industrial |
1,302 |
2,004 |
|||||
Off-system |
1,891 |
1,724 |
|||||
Other |
35 |
35 |
|||||
Ameren Missouri total |
10,174 |
11,257 |
|||||
Ameren Illinois |
|||||||
Residential |
|||||||
Power supply and delivery service |
1,224 |
1,419 |
|||||
Delivery service only |
1,680 |
1,837 |
|||||
Commercial |
|||||||
Power supply and delivery service |
717 |
745 |
|||||
Delivery service only |
2,118 |
2,181 |
|||||
Industrial |
|||||||
Power supply and delivery service |
129 |
473 |
|||||
Delivery service only |
2,702 |
2,599 |
|||||
Other |
144 |
146 |
|||||
Ameren Illinois total |
8,714 |
9,400 |
|||||
Eliminate affiliate sales |
(198) |
(8) |
|||||
Ameren Total from Continuing Operations |
18,690 |
20,649 |
|||||
Electric Revenues (in millions): |
|||||||
Ameren Missouri |
|||||||
Residential |
$ |
298 |
$ |
337 |
|||
Commercial |
240 |
248 |
|||||
Industrial |
68 |
96 |
|||||
Off-system |
58 |
44 |
|||||
Other |
30 |
17 |
|||||
Ameren Missouri total |
$ |
694 |
$ |
742 |
|||
Ameren Illinois |
|||||||
Residential |
|||||||
Power supply and delivery service |
$ |
120 |
$ |
111 |
|||
Delivery service only |
86 |
78 |
|||||
Commercial |
|||||||
Power supply and delivery service |
62 |
54 |
|||||
Delivery service only |
52 |
46 |
|||||
Industrial |
|||||||
Power supply and delivery service |
6 |
20 |
|||||
Delivery service only |
15 |
15 |
|||||
Other |
51 |
66 |
|||||
Ameren Illinois total |
$ |
392 |
$ |
390 |
|||
ATXI |
|||||||
Transmission services |
$ |
32 |
$ |
20 |
|||
Eliminate affiliate revenues |
(16) |
(9) |
|||||
Ameren Total from Continuing Operations |
$ |
1,102 |
$ |
1,143 |
AMEREN CORPORATION (AEE) | |||||||
OPERATING STATISTICS FROM CONTINUING OPERATIONS | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2016 |
2015 | ||||||
Electric Generation - kilowatthours (in millions): |
|||||||
Ameren Missouri |
9,861 |
10,943 |
|||||
Fuel Cost per kilowatthour (in cents): |
|||||||
Ameren Missouri |
1.843 |
1.891 |
|||||
Gas Sales - dekatherms (in thousands): |
|||||||
Ameren Missouri |
7,224 |
7,944 |
|||||
Ameren Illinois |
61,706 |
71,789 |
|||||
Ameren Total |
68,930 |
79,733 |
|||||
March 31, |
December 31, | ||||||
Common Stock: |
|||||||
Shares outstanding (in millions) |
242.6 |
242.6 |
|||||
Book value per share |
$ |
28.31 |
$ |
28.63 |
|||
Capitalization Ratios: |
|||||||
Common equity |
47.0 |
% |
48.3 |
% | |||
Preferred stock |
1.0 |
% |
1.0 |
% | |||
Debt, net of cash |
52.0 |
% |
50.7 |
% | |||
SOURCE Ameren Corporation