ST. LOUIS, Aug. 4, 2017 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced second quarter 2017 net income attributable to common shareholders of $193 million, or $0.79 per share, compared to second quarter 2016 net income attributable to common shareholders of $147 million, or $0.61 per share.
The increase in year-over-year second quarter earnings reflected new Ameren Missouri electric service rates effective April 1, 2017 driven, in part, by increased infrastructure investments and removal of the negative effect of lower sales to the New Madrid smelter. The earnings improvement also resulted from the absence of a nuclear refueling and maintenance outage at the Callaway Energy Center, which reduced operations and maintenance expenses compared to the year-ago period when there was such an outage. In addition, the comparison benefited from a 2017 change in the timing of interim period revenue recognition at the Ameren Illinois Electric Distribution segment, reflecting the Illinois Future Energy Jobs Act, as well as increased infrastructure investments in the Ameren Transmission and Ameren Illinois Electric Distribution segments. These favorable factors were partially offset by lower 2017 Ameren Missouri electric retail sales, primarily driven by milder early summer temperatures.
"As a result of solid execution of our strategy, including continued disciplined cost management, we expect to deliver 2017 core earnings within a range of $2.70 to $2.90 per share, a 5-cent improvement over our prior guidance," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "Our team continues to allocate capital to jurisdictions with modern, constructive regulatory frameworks. This includes advancing key Illinois grid modernization projects that provide significant customer benefits, all while meeting our region's energy needs, especially during the hot summer months. We expect this execution to deliver superior value to our customers and shareholders."
Ameren recorded net income attributable to common shareholders for the six months ended June 30, 2017, of $295 million, or $1.21 per share, compared to net income attributable to common shareholders for the six months ended June 30, 2016, of $252 million, or $1.04 per share.
The increase in year-over-year six-month earnings reflected a 2017 change in the timing of interim period revenue recognition at the Ameren Illinois Electric Distribution segment, new Ameren Missouri electric service rates and the absence of a nuclear refueling and maintenance outage at the Callaway Energy Center compared to the year-ago period when there was such an outage. The earnings comparison also benefited from increased infrastructure investments in the Ameren Transmission and Ameren Illinois Electric Distribution segments. These favorable factors were partially offset by lower 2017 Ameren Missouri electric retail sales primarily driven by milder temperatures, lower tax benefits associated with share-based compensation and higher Ameren Missouri depreciation expense.
Earnings Guidance
Ameren continues to expect 2017 earnings guidance in accordance with generally accepted accounting principles (GAAP) in a range of $2.65 to $2.85 per diluted share, which now includes an expected third quarter non-cash estimated charge of 6 cents per diluted share, primarily at the parent company, for revaluation of deferred taxes resulting from an increase in the Illinois corporate income tax rate effective July 1, 2017. Excluding this expected charge, the company expects 2017 core (non-GAAP) earnings to be in a range of $2.70 to $2.90 per diluted share, a 5-cent-per-share improvement over the prior guidance range, reflecting solid execution of Ameren's strategy.
GAAP and core earnings guidance for 2017 assume normal temperatures for the last six months of this year and are 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 second quarter 2017 earnings were $120 million, compared to second quarter 2016 earnings of $92 million. The increase in year-over-year earnings reflected new electric service rates and the absence of a nuclear refueling and maintenance outage at the Callaway Energy Center. The earnings comparison was unfavorably affected by lower 2017 electric retail sales, primarily driven by milder early summer temperatures.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution second quarter 2017 earnings were $33 million, compared to second quarter 2016 earnings of $18 million. The improvement in year-over-year earnings included a $9 million increase due to a 2017 change in the timing of interim period revenue recognition reflecting the Illinois Future Energy Jobs Act, which decoupled revenues from sales volumes. This change increases first, second and fourth quarter revenue while decreasing third quarter revenue, compared to 2016, with no effect on full-year earnings. Earnings in 2017 also benefited from increased infrastructure investments, as well as a higher 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 second quarter 2017 earnings were $5 million, compared to second quarter 2016 earnings of $7 million.
Ameren Transmission Segment Results
Ameren Transmission second quarter 2017 earnings were $34 million, compared to second quarter 2016 earnings of $32 million. The year-over-year earnings improvement reflected increased infrastructure investments, partially offset by a lower allowed return on equity.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, Aug. 4, to discuss 2017 earnings, earnings guidance and other matters. Investors, the news media and the public may listen to a live broadcast of the call at Amereninvestors.com by clicking on "Webcast" under "Q2 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.
Use of Non-GAAP Financial Measures
In this release, Ameren has presented core earnings per share guidance, which is a non-GAAP measure 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 significant discrete items that management does not consider representative of ongoing earnings, such as the expected third quarter 2017 non-cash estimated charge for the revaluation of deferred taxes resulting from an increase in the Illinois corporate income tax rate effective July 1, 2017. 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 that described above. Ameren is unable to estimate the impact, if any, on future GAAP earnings of such future 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, 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) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Operating Revenues: |
|||||||||||||||
Electric |
$ |
1,383 |
$ |
1,274 |
$ |
2,589 |
$ |
2,376 |
|||||||
Natural gas |
155 |
153 |
463 |
485 |
|||||||||||
Total operating revenues |
1,538 |
1,427 |
3,052 |
2,861 |
|||||||||||
Operating Expenses: |
|||||||||||||||
Fuel |
189 |
166 |
395 |
369 |
|||||||||||
Purchased power |
149 |
135 |
329 |
273 |
|||||||||||
Natural gas purchased for resale |
41 |
41 |
171 |
193 |
|||||||||||
Other operations and maintenance |
422 |
435 |
827 |
835 |
|||||||||||
Depreciation and amortization |
222 |
210 |
443 |
417 |
|||||||||||
Taxes other than income taxes |
117 |
115 |
235 |
229 |
|||||||||||
Total operating expenses |
1,140 |
1,102 |
2,400 |
2,316 |
|||||||||||
Operating Income |
398 |
325 |
652 |
545 |
|||||||||||
Other Income and Expenses: |
|||||||||||||||
Miscellaneous income |
14 |
16 |
29 |
36 |
|||||||||||
Miscellaneous expense |
5 |
6 |
14 |
13 |
|||||||||||
Total other income |
9 |
10 |
15 |
23 |
|||||||||||
Interest Charges |
99 |
95 |
198 |
190 |
|||||||||||
Income Before Income Taxes |
308 |
240 |
469 |
378 |
|||||||||||
Income Taxes |
114 |
92 |
171 |
123 |
|||||||||||
Net Income |
194 |
148 |
298 |
255 |
|||||||||||
Less: Net Income Attributable to Noncontrolling Interests |
1 |
1 |
3 |
3 |
|||||||||||
Net Income Attributable to Ameren Common Shareholders |
$ |
193 |
$ |
147 |
$ |
295 |
$ |
252 |
|||||||
Earnings per Common Share – Basic and Diluted |
$ |
0.79 |
$ |
0.61 |
$ |
1.21 |
$ |
1.04 |
|||||||
Average Common Shares Outstanding – Basic |
242.6 |
242.6 |
242.6 |
242.6 |
AMEREN CORPORATION (AEE) | |||||||
June 30, |
December 31, | ||||||
ASSETS |
|||||||
Current Assets: |
|||||||
Cash and cash equivalents |
$ |
10 |
$ |
9 |
|||
Accounts receivable - trade (less allowance for doubtful accounts) |
446 |
437 |
|||||
Unbilled revenue |
334 |
295 |
|||||
Miscellaneous accounts receivable |
77 |
63 |
|||||
Inventories |
512 |
527 |
|||||
Current regulatory assets |
95 |
149 |
|||||
Other current assets |
97 |
113 |
|||||
Total current assets |
1,571 |
1,593 |
|||||
Property, Plant, and Equipment, Net |
20,589 |
20,113 |
|||||
Investments and Other Assets: |
|||||||
Nuclear decommissioning trust fund |
651 |
607 |
|||||
Goodwill |
411 |
411 |
|||||
Regulatory assets |
1,506 |
1,437 |
|||||
Other assets |
526 |
538 |
|||||
Total investments and other assets |
3,094 |
2,993 |
|||||
TOTAL ASSETS |
$ |
25,254 |
$ |
24,699 |
|||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities: |
|||||||
Current maturities of long-term debt |
$ |
578 |
$ |
681 |
|||
Short-term debt |
892 |
558 |
|||||
Accounts and wages payable |
522 |
805 |
|||||
Taxes accrued |
122 |
46 |
|||||
Interest accrued |
104 |
93 |
|||||
Customer deposits |
108 |
107 |
|||||
Current regulatory liabilities |
141 |
110 |
|||||
Other current liabilities |
298 |
274 |
|||||
Total current liabilities |
2,765 |
2,674 |
|||||
Long-term Debt, Net |
6,821 |
6,595 |
|||||
Deferred Credits and Other Liabilities: |
|||||||
Accumulated deferred income taxes, net |
4,444 |
4,264 |
|||||
Accumulated deferred investment tax credits |
52 |
55 |
|||||
Regulatory liabilities |
2,003 |
1,985 |
|||||
Asset retirement obligations |
634 |
635 |
|||||
Pension and other postretirement benefits |
758 |
769 |
|||||
Other deferred credits and liabilities |
477 |
477 |
|||||
Total deferred credits and other liabilities |
8,368 |
8,185 |
|||||
Ameren Corporation Shareholders' Equity: |
|||||||
Common stock |
2 |
2 |
|||||
Other paid-in capital, principally premium on common stock |
5,528 |
5,556 |
|||||
Retained earnings |
1,649 |
1,568 |
|||||
Accumulated other comprehensive loss |
(21) |
(23) |
|||||
Total Ameren Corporation shareholders' equity |
7,158 |
7,103 |
|||||
Noncontrolling Interests |
142 |
142 |
|||||
Total equity |
7,300 |
7,245 |
|||||
TOTAL LIABILITIES AND EQUITY |
$ |
25,254 |
$ |
24,699 |
AMEREN CORPORATION (AEE) | |||||||
Six Months Ended June 30, | |||||||
2017 |
2016 | ||||||
Cash Flows From Operating Activities: |
|||||||
Net income |
$ |
298 |
$ |
255 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
433 |
419 |
|||||
Amortization of nuclear fuel |
48 |
38 |
|||||
Amortization of debt issuance costs and premium/discounts |
11 |
11 |
|||||
Deferred income taxes and investment tax credits, net |
175 |
134 |
|||||
Allowance for equity funds used during construction |
(10) |
(13) |
|||||
Share-based compensation costs |
8 |
12 |
|||||
Other |
(5) |
(7) |
|||||
Changes in assets and liabilities |
(95) |
(86) |
|||||
Net cash provided by operating activities |
863 |
763 |
|||||
Cash Flows From Investing Activities: |
|||||||
Capital expenditures |
(998) |
(1,000) |
|||||
Nuclear fuel expenditures |
(50) |
(24) |
|||||
Purchases of securities – nuclear decommissioning trust fund |
(213) |
(201) |
|||||
Sales and maturities of securities – nuclear decommissioning trust fund |
204 |
192 |
|||||
Other |
(2) |
(2) |
|||||
Net cash used in investing activities |
(1,059) |
(1,035) |
|||||
Cash Flows From Financing Activities: |
|||||||
Dividends on common stock |
(214) |
(206) |
|||||
Dividends paid to noncontrolling interest holders |
(3) |
(3) |
|||||
Short-term debt, net |
334 |
477 |
|||||
Maturities of long-term debt |
(425) |
(389) |
|||||
Issuances of long-term debt |
549 |
149 |
|||||
Share-based payments |
(39) |
(32) |
|||||
Capital issuance costs |
(4) |
(1) |
|||||
Other |
(1) |
(2) |
|||||
Net cash provided by (used in) financing activities |
197 |
(7) |
|||||
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 |
$ |
10 |
$ |
13 |
AMEREN CORPORATION (AEE) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Electric Sales - kilowatthours (in millions): |
|||||||||||||||
Ameren Missouri |
|||||||||||||||
Residential |
2,760 |
2,899 |
5,969 |
6,376 |
|||||||||||
Commercial |
3,556 |
3,610 |
6,888 |
7,079 |
|||||||||||
Industrial |
1,144 |
1,142 |
2,171 |
2,444 |
|||||||||||
Off-system and other |
3,495 |
1,400 |
6,716 |
3,326 |
|||||||||||
Ameren Missouri total |
10,955 |
9,051 |
21,744 |
19,225 |
|||||||||||
Ameren Illinois Electric Distribution |
|||||||||||||||
Residential |
2,416 |
2,540 |
5,133 |
5,444 |
|||||||||||
Commercial |
2,934 |
3,001 |
5,851 |
5,836 |
|||||||||||
Industrial |
2,792 |
2,876 |
5,528 |
5,707 |
|||||||||||
Street Lighting/Public Authority |
125 |
119 |
257 |
263 |
|||||||||||
Ameren Illinois Electric Distribution total |
8,267 |
8,536 |
16,769 |
17,250 |
|||||||||||
Eliminate affiliate sales |
(97) |
(79) |
(265) |
(277) |
|||||||||||
Ameren Total |
19,125 |
17,508 |
38,248 |
36,198 |
|||||||||||
Electric Revenues (in millions): |
|||||||||||||||
Ameren Missouri |
|||||||||||||||
Residential |
$ |
362 |
$ |
356 |
$ |
650 |
$ |
654 |
|||||||
Commercial |
334 |
326 |
563 |
566 |
|||||||||||
Industrial |
84 |
82 |
141 |
150 |
|||||||||||
Off-system and other |
133 |
80 |
305 |
168 |
|||||||||||
Ameren Missouri total |
$ |
913 |
$ |
844 |
$ |
1,659 |
$ |
1,538 |
|||||||
Ameren Illinois Electric Distribution |
|||||||||||||||
Residential |
|||||||||||||||
Delivery service |
$ |
145 |
$ |
134 |
$ |
282 |
$ |
251 |
|||||||
Power supply and other cost recovery |
63 |
72 |
145 |
159 |
|||||||||||
Commercial |
|||||||||||||||
Delivery service |
82 |
70 |
162 |
131 |
|||||||||||
Power supply and other cost recovery |
45 |
49 |
98 |
100 |
|||||||||||
Industrial |
|||||||||||||||
Delivery service |
15 |
13 |
32 |
26 |
|||||||||||
Power supply and other cost recovery |
12 |
10 |
23 |
18 |
|||||||||||
Street Lighting/Public Authority |
|||||||||||||||
Delivery service |
9 |
5 |
15 |
13 |
|||||||||||
Power supply and other cost recovery |
3 |
2 |
6 |
6 |
|||||||||||
Other |
14 |
3 |
10 |
6 |
|||||||||||
Ameren Illinois Electric Distribution total |
$ |
388 |
$ |
358 |
$ |
773 |
$ |
710 |
|||||||
Ameren Transmission |
|||||||||||||||
Ameren Illinois Transmission(a) |
$ |
65 |
$ |
63 |
$ |
125 |
$ |
114 |
|||||||
ATXI |
40 |
29 |
82 |
61 |
|||||||||||
Ameren Transmission total |
$ |
105 |
$ |
92 |
$ |
207 |
$ |
175 |
|||||||
Other and intersegment eliminations |
(23) |
(20) |
(50) |
(47) |
|||||||||||
Ameren Total |
$ |
1,383 |
$ |
1,274 |
$ |
2,589 |
$ |
2,376 |
(a) |
Includes $12 million, $10 million, $18 million and $21 million, respectively, of electric operating revenues from transmission services provided to the Ameren Illinois Electric Distribution segment. |
AMEREN CORPORATION (AEE) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Gas Sales - dekatherms (in millions): |
|||||||||||||||
Ameren Missouri |
3 |
3 |
9 |
10 |
|||||||||||
Ameren Illinois Natural Gas |
29 |
30 |
87 |
92 |
|||||||||||
Ameren Total |
32 |
33 |
96 |
102 |
|||||||||||
Gas Revenues (in millions): |
|||||||||||||||
Ameren Missouri |
$ |
22 |
$ |
23 |
$ |
66 |
$ |
70 |
|||||||
Ameren Illinois Natural Gas |
134 |
131 |
398 |
416 |
|||||||||||
Eliminate affiliate revenues |
(1) |
(1) |
(1) |
(1) |
|||||||||||
Ameren Total |
$ |
155 |
$ |
153 |
$ |
463 |
$ |
485 |
|||||||
June 30, |
December 31, | ||||||||||||||
Common Stock: |
|||||||||||||||
Shares outstanding (in millions) |
242.6 |
242.6 |
|||||||||||||
Book value per share |
$ |
29.51 |
$ |
29.28 |
SOURCE Ameren Corporation