ST. LOUIS, May 9, 2018 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced first quarter 2018 net income attributable to common shareholders of $151 million, or $0.62 per share, compared to first quarter 2017 net income attributable to common shareholders of $102 million, or $0.42 per share.
The increase in year-over-year first quarter earnings reflected higher Ameren Missouri electric service rates, effective April 1, 2017, and higher Ameren Missouri electric retail sales, primarily due to colder winter temperatures compared to very mild temperatures in the year-ago period. The comparison also benefited from earnings on increased infrastructure investments made at Ameren Transmission, Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas. While Ameren's effective income tax rate was lower in 2018 compared to 2017 reflecting federal tax reform, this benefit was almost entirely offset by a reduction in revenue reflecting the expected pass through of those savings to customers.
"We are on track to deliver within our 2018 earnings guidance range of $2.95 to $3.15 per share," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "Our team continues to successfully execute our strategy, including allocating capital to jurisdictions with modern, constructive regulatory frameworks and managing costs in a disciplined manner.
"Further, we continue to advocate for forward-thinking Missouri electric utility legislation currently under consideration by the Missouri General Assembly," Baxter said. "This legislation would support Ameren Missouri's ability to invest approximately $1 billion of incremental capital over the next five years to modernize Missouri's electric grid. In addition, the legislation would create jobs and provide significant customer benefits, including passing the benefits of the lower federal income tax rate on to customers in a very timely fashion."
Earnings Guidance
Today, Ameren also affirmed its 2018 earnings guidance range of $2.95 to $3.15 per diluted share.
Earnings guidance for 2018 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 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 first quarter 2018 earnings were $38 million, compared to first quarter 2017 earnings of $5 million. The increase in year-over-year earnings reflected higher electric service rates, as well as higher electric retail sales primarily due to colder winter temperatures compared to very mild temperatures in the year-ago period. These favorable factors were partially offset by increased other operations and maintenance expenses, primarily reflecting higher-than-normal scheduled non-nuclear plant outage costs.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution first quarter 2018 earnings were $33 million, compared to first quarter 2017 earnings of $30 million. The year-over-year improvement reflected increased earnings on infrastructure investments. The allowed return on equity, which is based on the average 30-year U.S. Treasury bond yield, was comparable for 2018 and 2017.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas first quarter 2018 earnings were $42 million, compared to first quarter 2017 earnings of $33 million. The year-over-year improvement reflected increased earnings on infrastructure investments and benefits of federal tax reform.
Ameren Transmission Segment Results
Ameren Transmission first quarter 2018 earnings were $37 million, compared to first quarter 2017 earnings of $34 million. The year-over-year improvement reflected increased earnings on infrastructure investments.
Other Results
Other results, which includes items not reported in a business segment, were $1 million of earnings for the first quarter of 2018, compared to no earnings for the first quarter of 2017.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Wednesday, May 9, to discuss 2018 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 "Q1 2018 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 & 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 10,300 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, 2017, 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, | |||||||
2018 |
2017 | ||||||
Operating Revenues: |
|||||||
Electric |
$ |
1,223 |
$ |
1,207 |
|||
Natural gas |
362 |
308 |
|||||
Total operating revenues |
1,585 |
1,515 |
|||||
Operating Expenses: |
|||||||
Fuel |
188 |
206 |
|||||
Purchased power |
163 |
180 |
|||||
Natural gas purchased for resale |
171 |
130 |
|||||
Other operations and maintenance |
431 |
418 |
|||||
Depreciation and amortization |
234 |
221 |
|||||
Taxes other than income taxes |
125 |
118 |
|||||
Total operating expenses |
1,312 |
1,273 |
|||||
Operating Income |
273 |
242 |
|||||
Other Income, Net |
23 |
18 |
|||||
Interest Charges |
101 |
99 |
|||||
Income Before Income Taxes |
195 |
161 |
|||||
Income Taxes |
42 |
57 |
|||||
Net Income |
153 |
104 |
|||||
Less: Net Income Attributable to Noncontrolling Interests |
2 |
2 |
|||||
Net Income Attributable to Ameren Common Shareholders |
$ |
151 |
$ |
102 |
|||
Earnings per Common Share – Basic and Diluted |
$ |
0.62 |
$ |
0.42 |
|||
Weighted-average Common Shares Outstanding – Basic |
242.9 |
242.6 |
AMEREN CORPORATION (AEE) | |||||||
CONSOLIDATED BALANCE SHEET | |||||||
(Unaudited, in millions) | |||||||
March 31, |
December 31, | ||||||
ASSETS |
|||||||
Current Assets: |
|||||||
Cash and cash equivalents |
$ |
30 |
$ |
10 |
|||
Accounts receivable - trade (less allowance for doubtful accounts) |
514 |
445 |
|||||
Unbilled revenue |
258 |
323 |
|||||
Miscellaneous accounts receivable |
98 |
70 |
|||||
Inventories |
453 |
522 |
|||||
Current regulatory assets |
130 |
144 |
|||||
Other current assets |
84 |
98 |
|||||
Total current assets |
1,567 |
1,612 |
|||||
Property, Plant, and Equipment, Net |
21,666 |
21,466 |
|||||
Investments and Other Assets: |
|||||||
Nuclear decommissioning trust fund |
698 |
704 |
|||||
Goodwill |
411 |
411 |
|||||
Regulatory assets |
1,205 |
1,230 |
|||||
Other assets |
532 |
522 |
|||||
Total investments and other assets |
2,846 |
2,867 |
|||||
TOTAL ASSETS |
$ |
26,079 |
$ |
25,945 |
|||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities: |
|||||||
Current maturities of long-term debt |
$ |
1,170 |
$ |
841 |
|||
Short-term debt |
960 |
484 |
|||||
Accounts and wages payable |
497 |
902 |
|||||
Taxes accrued |
91 |
52 |
|||||
Interest accrued |
97 |
99 |
|||||
Customer deposits |
115 |
108 |
|||||
Current regulatory liabilities |
130 |
128 |
|||||
Other current liabilities |
285 |
326 |
|||||
Total current liabilities |
3,345 |
2,940 |
|||||
Long-term Debt, Net |
6,766 |
7,094 |
|||||
Deferred Credits and Other Liabilities: |
|||||||
Accumulated deferred income taxes, net |
2,564 |
2,506 |
|||||
Accumulated deferred investment tax credits |
47 |
49 |
|||||
Regulatory liabilities |
4,363 |
4,387 |
|||||
Asset retirement obligations |
636 |
638 |
|||||
Pension and other postretirement benefits |
541 |
545 |
|||||
Other deferred credits and liabilities |
445 |
460 |
|||||
Total deferred credits and other liabilities |
8,596 |
8,585 |
|||||
Ameren Corporation Shareholders' Equity: |
|||||||
Common stock |
2 |
2 |
|||||
Other paid-in capital, principally premium on common stock |
5,546 |
5,540 |
|||||
Retained earnings |
1,699 |
1,660 |
|||||
Accumulated other comprehensive loss |
(17) |
(18) |
|||||
Total Ameren Corporation shareholders' equity |
7,230 |
7,184 |
|||||
Noncontrolling Interests |
142 |
142 |
|||||
Total equity |
7,372 |
7,326 |
|||||
TOTAL LIABILITIES AND EQUITY |
$ |
26,079 |
$ |
25,945 |
AMEREN CORPORATION (AEE) | |||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
(Unaudited, in millions) | |||||||
Three Months Ended March 31, | |||||||
2018 |
2017 | ||||||
Cash Flows From Operating Activities: |
|||||||
Net income |
$ |
153 |
$ |
104 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
230 |
217 |
|||||
Amortization of nuclear fuel |
24 |
24 |
|||||
Amortization of debt issuance costs and premium/discounts |
5 |
6 |
|||||
Deferred income taxes and investment tax credits, net |
26 |
51 |
|||||
Allowance for equity funds used during construction |
(5) |
(6) |
|||||
Stock-based compensation costs |
6 |
4 |
|||||
Other |
2 |
(4) |
|||||
Changes in assets and liabilities |
(183) |
(65) |
|||||
Net cash provided by operating activities |
258 |
331 |
|||||
Cash Flows From Investing Activities: |
|||||||
Capital expenditures |
(579) |
(504) |
|||||
Nuclear fuel expenditures |
(12) |
(27) |
|||||
Purchases of securities – nuclear decommissioning trust fund |
(38) |
(40) |
|||||
Sales and maturities of securities – nuclear decommissioning trust fund |
34 |
34 |
|||||
Other |
(2) |
(2) |
|||||
Net cash used in investing activities |
(597) |
(539) |
|||||
Cash Flows From Financing Activities: |
|||||||
Dividends on common stock |
(111) |
(107) |
|||||
Dividends paid to noncontrolling interest holders |
(2) |
(2) |
|||||
Short-term debt, net |
475 |
356 |
|||||
Issuances of common stock |
17 |
— |
|||||
Repurchases of common stock for stock-based compensation |
— |
(24) |
|||||
Employee payroll taxes related to stock-based compensation |
(19) |
(15) |
|||||
Other |
— |
(1) |
|||||
Net cash provided by financing activities |
360 |
207 |
|||||
Net change in cash, cash equivalents, and restricted cash |
21 |
(1) |
|||||
Cash, cash equivalents, and restricted cash at beginning of year |
68 |
52 |
|||||
Cash, cash equivalents, and restricted cash at end of period |
$ |
89 |
$ |
51 |
AMEREN CORPORATION (AEE) | |||||||
OPERATING STATISTICS | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2018 |
2017 | ||||||
Electric Sales - kilowatthours (in millions): |
|||||||
Ameren Missouri |
|||||||
Residential |
3,780 |
3,227 |
|||||
Commercial |
3,528 |
3,357 |
|||||
Industrial |
1,053 |
1,035 |
|||||
Street lighting and public authority |
29 |
33 |
|||||
Ameren Missouri retail load subtotal |
8,390 |
7,652 |
|||||
Off-system |
2,549 |
3,188 |
|||||
Ameren Missouri total |
10,939 |
10,840 |
|||||
Ameren Illinois Electric Distribution |
|||||||
Residential |
3,071 |
2,717 |
|||||
Commercial |
2,977 |
2,917 |
|||||
Industrial |
2,794 |
2,736 |
|||||
Street lighting and public authority |
146 |
132 |
|||||
Ameren Illinois Electric Distribution total |
8,988 |
8,502 |
|||||
Eliminate affiliate sales |
(78) |
(168) |
|||||
Ameren Total |
19,849 |
19,174 |
|||||
Electric Revenues (in millions): |
|||||||
Ameren Missouri |
|||||||
Residential |
$ |
332 |
$ |
290 |
|||
Commercial |
252 |
232 |
|||||
Industrial |
61 |
58 |
|||||
Other, including street lighting and public authority |
27 |
29 |
|||||
Ameren Missouri retail load subtotal |
$ |
672 |
$ |
609 |
|||
Off-system |
69 |
138 |
|||||
Ameren Missouri total |
$ |
741 |
$ |
747 |
|||
Ameren Illinois Electric Distribution |
|||||||
Residential |
$ |
219 |
$ |
219 |
|||
Commercial |
124 |
133 |
|||||
Industrial |
35 |
28 |
|||||
Other, including street lighting and public authority |
22 |
5 |
|||||
Ameren Illinois Electric Distribution total |
$ |
400 |
$ |
385 |
|||
Ameren Transmission |
|||||||
Ameren Illinois Transmission(a) |
$ |
62 |
$ |
60 |
|||
ATXI |
42 |
42 |
|||||
Ameren Transmission total |
$ |
104 |
$ |
102 |
|||
Other and intersegment eliminations |
(22) |
(27) |
|||||
Ameren Total |
$ |
1,223 |
$ |
1,207 |
(a) |
Includes $13 million and $6 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, | |||||||
2018 |
2017 | ||||||
Gas Sales - dekatherms (in millions): |
|||||||
Ameren Missouri |
9 |
6 |
|||||
Ameren Illinois Natural Gas |
68 |
58 |
|||||
Ameren Total |
77 |
64 |
|||||
Gas Revenues (in millions): |
|||||||
Ameren Missouri |
$ |
51 |
$ |
44 |
|||
Ameren Illinois Natural Gas |
311 |
264 |
|||||
Ameren Total |
$ |
362 |
$ |
308 |
|||
March 31, |
December 31, | ||||||
2018 |
2017 | ||||||
Common Stock: |
|||||||
Shares outstanding (in millions) |
243.6 |
242.6 |
|||||
Book value per share |
$ |
29.68 |
$ |
29.61 |
SOURCE Ameren Corporation