ST. LOUIS, May 4, 2017 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced first quarter 2017 net income attributable to common shareholders of $102 million, or $0.42 per share, compared to first quarter 2016 net income attributable to common shareholders of $105 million, or $0.43 per share.
The year-over-year first quarter earnings decrease reflected lower 2017 electric retail sales at Ameren Missouri primarily driven by very mild winter temperatures, as well as lower tax benefits associated with share-based compensation. These factors were partially offset by the favorable impact of a 2017 change in the timing of interim period revenue recognition at the Ameren Illinois Electric Distribution segment. This reflected the recently enacted Illinois Future Energy Jobs Act, which decoupled electric distribution revenues from sales volumes. Earnings in 2017 also benefited from higher electric transmission and electric distribution infrastructure investments made by Ameren Transmission Company of Illinois (ATXI) and Ameren Illinois under modern, constructive regulatory frameworks, as well as an increased allowed return on equity at the Ameren Illinois Electric Distribution segment.
"We remain on track to deliver within our 2017 earnings guidance range of $2.65 to $2.85 per share despite very mild first quarter weather," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "Our team continued to successfully execute our strategy, including allocating capital to jurisdictions with modern, constructive regulatory frameworks, managing costs in a disciplined manner and reaching a constructive agreement with all parties in Ameren Missouri's recently concluded electric rate review. We expect this execution to deliver superior value to our customers and shareholders."
Earnings Guidance
Ameren continues to expect 2017 earnings to be in a range of $2.65 to $2.85 per diluted share despite warmer-than-normal first quarter temperatures.
Earnings guidance for 2017 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, judicial and legislative actions; energy center and energy distribution operations; energy, economic, capital and credit market conditions; severe weather; 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 first quarter 2017 earnings were $5 million, compared to first quarter 2016 earnings of $14 million. The year-over-year earnings decrease reflected lower 2017 electric retail sales primarily driven by very mild winter temperatures, which reduced earnings by an estimated $9 million (and $18 million compared to normal temperatures), as well as higher depreciation expenses. These unfavorable factors were partially offset by lower other operations and maintenance expenses not subject to riders or regulatory tracking mechanisms.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution first quarter 2017 earnings were $30 million, compared to first quarter 2016 earnings of $11 million. The year-over-year earnings improvement included a $20 million increase due to a change in the timing of interim period revenue recognition reflecting the recently enacted Illinois Future Energy Jobs Act, which decoupled electric distribution revenues from sales volumes. This change in timing of revenue recognition increases first, second and fourth quarter revenue while decreasing third quarter revenue, with no effect on full-year earnings. Earnings in 2017 also benefited from higher infrastructure investments, as well as an increased allowed return on equity due to a higher projected average 30-year U.S. Treasury bond yield in 2017, compared to 2016.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas first quarter 2017 earnings were $33 million, comparable to first quarter 2016 earnings of $35 million.
Ameren Transmission Segment Results
Ameren Transmission first quarter 2017 earnings were $34 million, compared to first quarter 2016 earnings of $27 million. The year-over-year earnings improvement reflected increased infrastructure investments.
Other Results
There were no first quarter 2017 earnings for items not reported in a segment, compared to first quarter 2016 earnings of $18 million. The year-over-year earnings decrease reflected lower tax benefits associated with share-based compensation.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Thursday, May 4, to discuss 2017 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 Amereninvestors.com by clicking on "Webcast" under "Q1 2017 Earnings Conference Call," where an accompanying slide presentation will also be available. The conference call and presentation will be archived for one year in the "Investor News and Events" section of the website under "Events and Presentations."
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 and natural gas transmission and 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. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn/company/Ameren.
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, 2016, 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 March 31, | |||||||
2017 |
2016 | ||||||
Operating Revenues: |
|||||||
Electric |
$ |
1,206 |
$ |
1,102 |
|||
Gas |
308 |
332 |
|||||
Total operating revenues |
1,514 |
1,434 |
|||||
Operating Expenses: |
|||||||
Fuel |
206 |
203 |
|||||
Purchased power |
180 |
138 |
|||||
Gas purchased for resale |
130 |
152 |
|||||
Other operations and maintenance |
405 |
400 |
|||||
Depreciation and amortization |
221 |
207 |
|||||
Taxes other than income taxes |
118 |
114 |
|||||
Total operating expenses |
1,260 |
1,214 |
|||||
Operating Income |
254 |
220 |
|||||
Other Income and Expenses: |
|||||||
Miscellaneous income |
15 |
20 |
|||||
Miscellaneous expense |
9 |
7 |
|||||
Total other income |
6 |
13 |
|||||
Interest Charges |
99 |
95 |
|||||
Income Before Income Taxes |
161 |
138 |
|||||
Income Taxes |
57 |
31 |
|||||
Net Income |
104 |
107 |
|||||
Less: Net Income Attributable to Noncontrolling Interests |
2 |
2 |
|||||
Net Income Attributable to Ameren Common Shareholders |
$ |
102 |
$ |
105 |
|||
Earnings per Common Share – Basic and Diluted |
$ |
0.42 |
$ |
0.43 |
|||
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 |
$ |
8 |
$ |
9 |
|||
Accounts receivable - trade (less allowance for doubtful accounts) |
457 |
437 |
|||||
Unbilled revenue |
228 |
295 |
|||||
Miscellaneous accounts receivable |
67 |
63 |
|||||
Inventories |
467 |
527 |
|||||
Current regulatory assets |
118 |
149 |
|||||
Other current assets |
105 |
113 |
|||||
Total current assets |
1,450 |
1,593 |
|||||
Property, Plant, and Equipment, Net |
20,298 |
20,113 |
|||||
Investments and Other Assets: |
|||||||
Nuclear decommissioning trust fund |
635 |
607 |
|||||
Goodwill |
411 |
411 |
|||||
Regulatory assets |
1,485 |
1,437 |
|||||
Other assets |
532 |
538 |
|||||
Total investments and other assets |
3,063 |
2,993 |
|||||
TOTAL ASSETS |
$ |
24,811 |
$ |
24,699 |
|||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities: |
|||||||
Current maturities of long-term debt |
$ |
681 |
$ |
681 |
|||
Short-term debt |
914 |
558 |
|||||
Accounts and wages payable |
460 |
805 |
|||||
Taxes accrued |
77 |
46 |
|||||
Interest accrued |
100 |
93 |
|||||
Customer deposits |
106 |
107 |
|||||
Current regulatory liabilities |
144 |
110 |
|||||
Other current liabilities |
280 |
274 |
|||||
Total current liabilities |
2,762 |
2,674 |
|||||
Long-term Debt, Net |
6,597 |
6,595 |
|||||
Deferred Credits and Other Liabilities: |
|||||||
Accumulated deferred income taxes, net |
4,321 |
4,264 |
|||||
Accumulated deferred investment tax credits |
53 |
55 |
|||||
Regulatory liabilities |
1,982 |
1,985 |
|||||
Asset retirement obligations |
641 |
635 |
|||||
Pension and other postretirement benefits |
768 |
769 |
|||||
Other deferred credits and liabilities |
481 |
477 |
|||||
Total deferred credits and other liabilities |
8,246 |
8,185 |
|||||
Ameren Corporation Shareholders' Equity: |
|||||||
Common stock |
2 |
2 |
|||||
Other paid-in capital, principally premium on common stock |
5,522 |
5,556 |
|||||
Retained earnings |
1,563 |
1,568 |
|||||
Accumulated other comprehensive loss |
(23) |
(23) |
|||||
Total Ameren Corporation shareholders' equity |
7,064 |
7,103 |
|||||
Noncontrolling Interests |
142 |
142 |
|||||
Total equity |
7,206 |
7,245 |
|||||
TOTAL LIABILITIES AND EQUITY |
$ |
24,811 |
$ |
24,699 |
AMEREN CORPORATION (AEE) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in millions) | |||||||
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
Cash Flows From Operating Activities: |
|||||||
Net income |
$ |
104 |
$ |
107 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
217 |
210 |
|||||
Amortization of nuclear fuel |
24 |
24 |
|||||
Amortization of debt issuance costs and premium/discounts |
6 |
6 |
|||||
Deferred income taxes and investment tax credits, net |
51 |
42 |
|||||
Allowance for equity funds used during construction |
(6) |
(8) |
|||||
Share-based compensation costs |
4 |
6 |
|||||
Other |
(4) |
(3) |
|||||
Changes in assets and liabilities |
(65) |
(35) |
|||||
Net cash provided by operating activities |
331 |
349 |
|||||
Cash Flows From Investing Activities: |
|||||||
Capital expenditures |
(504) |
(496) |
|||||
Nuclear fuel expenditures |
(27) |
(21) |
|||||
Purchases of securities – nuclear decommissioning trust fund |
(64) |
(130) |
|||||
Sales and maturities of securities – nuclear decommissioning trust fund |
58 |
125 |
|||||
Other |
(2) |
12 |
|||||
Net cash used in investing activities |
(539) |
(510) |
|||||
Cash Flows From Financing Activities: |
|||||||
Dividends on common stock |
(107) |
(103) |
|||||
Dividends paid to noncontrolling interest holders |
(2) |
(2) |
|||||
Short-term debt, net |
356 |
280 |
|||||
Maturities of long-term debt |
— |
(260) |
|||||
Share-based payments |
(39) |
(32) |
|||||
Other |
(1) |
(1) |
|||||
Net cash provided by (used in) financing activities |
207 |
(118) |
|||||
Net change in cash and cash equivalents |
(1) |
(279) |
|||||
Cash and cash equivalents at beginning of year |
9 |
292 |
|||||
Cash and cash equivalents at end of period |
$ |
8 |
$ |
13 |
AMEREN CORPORATION (AEE) OPERATING STATISTICS | |||||||
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
Electric Sales - kilowatthours (in millions): |
|||||||
Ameren Missouri |
|||||||
Residential |
3,227 |
3,477 |
|||||
Commercial |
3,357 |
3,469 |
|||||
Industrial |
1,035 |
1,302 |
|||||
Off-system and other |
3,221 |
1,926 |
|||||
Ameren Missouri total |
10,840 |
10,174 |
|||||
Ameren Illinois Electric Distribution |
|||||||
Residential |
2,717 |
2,904 |
|||||
Commercial |
2,917 |
2,835 |
|||||
Industrial |
2,736 |
2,831 |
|||||
Street Lighting/Public Authority |
132 |
144 |
|||||
Ameren Illinois Electric Distribution total |
8,502 |
8,714 |
|||||
Eliminate affiliate sales |
(168) |
(198) |
|||||
Ameren Total |
19,174 |
18,690 |
|||||
Electric Revenues (in millions): |
|||||||
Ameren Missouri |
|||||||
Residential |
$ |
290 |
$ |
298 |
|||
Commercial |
231 |
240 |
|||||
Industrial |
58 |
68 |
|||||
Off-system and other |
167 |
88 |
|||||
Ameren Missouri total |
$ |
746 |
$ |
694 |
|||
Ameren Illinois Electric Distribution |
|||||||
Residential |
|||||||
Delivery service |
$ |
137 |
$ |
117 |
|||
Power supply and other cost recovery |
82 |
87 |
|||||
Commercial |
|||||||
Delivery service |
80 |
61 |
|||||
Power supply and other cost recovery |
53 |
51 |
|||||
Industrial |
|||||||
Delivery service |
17 |
13 |
|||||
Power supply and other cost recovery |
11 |
8 |
|||||
Street Lighting/Public Authority |
|||||||
Delivery service |
6 |
8 |
|||||
Power supply and other cost recovery |
3 |
4 |
|||||
Other |
(4) |
3 |
|||||
Ameren Illinois Electric Distribution total |
$ |
385 |
$ |
352 |
|||
Ameren Transmission |
|||||||
Ameren Illinois Transmission(a) |
$ |
60 |
$ |
51 |
|||
ATXI |
42 |
32 |
|||||
Ameren Transmission total |
$ |
102 |
$ |
83 |
|||
Other and intersegment eliminations |
(27) |
(27) |
|||||
Ameren Total |
$ |
1,206 |
$ |
1,102 |
(a) |
Includes $6 million and $11 million, respectively, of electric operating revenues from transmission services provided to the Ameren Illinois Electric Distribution segment. |
AMEREN CORPORATION (AEE) OPERATING STATISTICS | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2017 |
2016 | ||||||
Gas Sales - dekatherms (in millions): |
|||||||
Ameren Missouri |
6 |
7 |
|||||
Ameren Illinois Natural Gas |
58 |
62 |
|||||
Ameren Total |
64 |
69 |
|||||
Gas Revenues (in millions): |
|||||||
Ameren Missouri |
$ |
44 |
$ |
47 |
|||
Ameren Illinois Natural Gas |
264 |
285 |
|||||
Ameren Total |
$ |
308 |
$ |
332 |
|||
March 31, 2017 |
December 31, 2016 | ||||||
Common Stock: |
|||||||
Shares outstanding (in millions) |
242.6 |
242.6 |
|||||
Book value per share |
$ |
29.12 |
$ |
29.28 |
SOURCE Ameren Corporation