ST. LOUIS, Feb. 18 /PRNewswire-FirstCall/ -- Ameren Corporation (NYSE: AEE) today announced 2009 net income in accordance with generally accepted accounting principles (GAAP) of $612 million, or $2.78 per share, compared to 2008 GAAP net income of $605 million, or $2.88 per share. Excluding certain items in each year, Ameren recorded 2009 core (non-GAAP) net income of $615 million, or $2.79 per share, compared to 2008 core (non-GAAP) net income of $622 million, or $2.95 per share.
"I am pleased to report 2009 earnings per share in line with our expectations," said Thomas R. Voss, president and chief executive officer of Ameren Corporation. "During 2009, we reduced planned spending, headcount and investment across the company to mitigate the negative impact on sales of a weak economy, the Noranda aluminum smelter outage and milder-than-normal weather.
"We also enhanced our financial strength and liquidity position by issuing new long-term debt and equity, extending our credit facilities and taking the difficult step of reducing our common dividend. Our regulated utilities are seeking rate increases to recover our costs and earn fair returns on investments. These actions have established a solid foundation for executing our future strategies and creating long-term shareholder value.
"Today we are also announcing 2010 GAAP and core earnings guidance of $2.20 to $2.60 per share," Voss added. "The expected decline in 2010 earnings, compared to 2009, primarily reflects lower projected merchant generation segment margins."
2009 Earnings Discussion
Core (non-GAAP) 2009 earnings per share declined, compared to 2008. Factors contributing to that decline included lower electricity and natural gas sales in the regulated utility businesses and lower margins in the merchant generation business -- results of weak economic conditions, milder 2009 weather and, in our regulated Missouri utility, the Noranda aluminum smelter outage. Higher depreciation and interest expense and an increased average number of common shares outstanding also affected comparative results. Offsetting factors included new utility rates in Illinois and Missouri and lower operations and maintenance expenses due, in part, to the absence of a refueling outage at the Callaway nuclear plant.
At Ameren's regulated utilities, milder weather and the economic slowdown led to a 3% decrease in kilowatthour sales to residential and commercial customers in 2009, compared to 2008. However, this sales decline was smaller, an estimated 1%, on a weather-normalized basis. The weak economy also led to a decline in kilowatthour sales by Ameren's regulated utilities to their industrial customers. These sales declined 11% in 2009, compared to 2008, excluding the impact of reduced sales to AmerenUE's largest customer, the Noranda Aluminum, Inc., smelter plant in New Madrid, Mo. Noranda's plant sustained damage because of a power interruption on non-Ameren-owned power lines during a severe ice storm in January 2009. Electric sales to industrial customers, including Noranda, declined 17% in 2009, compared to 2008.
The following items were excluded from 2009 and 2008 core (non-GAAP) earnings, as applicable:
In the fourth quarter of 2009, Ameren recorded GAAP net income of $79 million, or 34 cents per share, compared to $57 million, or 27 cents per share, recorded in the fourth quarter of 2008. Excluding certain items in each period, Ameren recorded fourth quarter 2009 core (non-GAAP) net income of $85 million, or 37 cents per share, compared to fourth quarter 2008 core (non-GAAP) net income of $97 million, or 45 cents per share.
A reconciliation of GAAP to core (non-GAAP) earnings per share is as follows:
Fourth Quarter Year
-------------- ----
2009 2008 2009 2008
---- ---- ---- ----
GAAP earnings per share $0.34 $0.27 $2.78 $2.88
Illinois electric rate relief
settlement, net 0.02 0.03 0.08 0.13
Net unrealized mark-to-market
activity - 0.16 (0.14) 0.07
Employee separation & impairment
charges 0.01 0.06 0.07 0.06
Coal contract settlement – 2009
portion - - - (0.08)
MO order related to 2007 severe
storms & FERC order - (0.07) - (0.11)
Core (non-GAAP) earnings per share $0.37 $0.45 $2.79 $2.95
2010 Earnings Guidance
Ameren expects 2010 GAAP and core earnings to be in the range of $2.20 to $2.60 per share. Any net unrealized mark-to-market gains or losses will impact GAAP earnings but are excluded from GAAP and core (non-GAAP) earnings guidance because the company is unable to reasonably estimate the impact of any such gains or losses at this time.
The projected decline in core earnings per share in 2010, compared to 2009, is primarily due to expected lower margins at Ameren's merchant generation segment as a result of lower realized power prices, reflecting the economic slowdown, and higher fuel and related transportation costs, reflecting the expiration of lower-cost coal and rail contracts. The merchant generation segment has proactively sold forward or hedged approximately 90% of its expected 2010 generation output at an average price per megawatthour that is greater than the current market price; however, the 2010 average realized price is expected to be less than that of 2009. An increase in the average number of common shares outstanding, higher depreciation expense and a scheduled spring refueling and maintenance outage at the Callaway nuclear plant are among the other factors contributing to the expectation of lower earnings per share. The above factors are projected to be partially offset by, among other things, expected new electric and natural gas delivery rates in Illinois and new electric service rates in Missouri, effective in the second quarter of 2010; the expected return to service of the Taum Sauk pumped-storage hydroelectric facility; and the anticipated return to full operation of the Noranda aluminum smelter plant.
Ameren expects its business segments to provide the following contributions to 2010 GAAP and core (non-GAAP) earnings per share:
Missouri and Illinois Regulated $1.90 - $2.15
Merchant Generation 0.30 - 0.45
-------------
2010 Core (Non-GAAP) Earnings Guidance Range $2.20 - $2.60
Ameren's earnings guidance for 2010 assumes normal weather for the year and is subject to, among other things, regulatory decisions and legislative actions, plant operations, energy and capital and credit market conditions, economic 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.
Missouri Regulated Segment Earnings
Core (non-GAAP) earnings in 2009 were $241 million versus $236 million in 2008. This earnings improvement was primarily a result of new electric rates, which took effect March 1, 2009, and lower operations and maintenance expenses due in part to the absence of a refueling outage at the Callaway nuclear plant in 2009. Callaway is refueled on an 18-month cycle. These positives were largely offset by reduced electric sales to native load customers due to milder summer weather, the weak economy and lower sales to the Noranda Aluminum smelter plant, as well as higher depreciation expense and financing costs, among other factors. Missouri regulated operations recorded GAAP earnings in 2009 of $259 million versus $234 million in 2008. In addition to those mentioned above, factors affecting the GAAP earnings comparison included a gain in 2009 as opposed to a loss in 2008 from net unrealized mark-to-market activity, expenses in 2009 for employee separations, and benefits in 2008 of a Missouri rate order directing the recording of regulatory assets for previously incurred costs related to the January 2007 severe ice storm and a 2007 FERC order.
Illinois Regulated Segment Earnings
Core (non-GAAP) earnings in 2009 were $127 million compared to $51 million in 2008. This earnings improvement was primarily due to new electric and natural gas delivery service rates that took effect Oct. 1, 2008 and lower operations and maintenance expenses. These positives were partially offset by lower electric and natural gas deliveries due to milder weather and the weak economy, as well as higher financing costs, among other factors. Illinois regulated operations recorded GAAP earnings in 2009 of $124 million versus $32 million in 2008. In addition to those mentioned above, factors impacting the GAAP earnings comparison were lower charges in 2009 related to the Illinois electric settlement agreement reached in 2007, a swing to a gain in 2009 from a loss in 2008 from net unrealized mark-to-market activity, expenses in 2009 for employee separations and the absence of 2008 asset impairment charges.
Merchant Generation Segment Earnings
Core (non-GAAP) earnings in 2009 were $273 million, a decline from $336 million earned in 2008. This decline was largely due to lower sales volumes and higher fuel and related transportation costs, as well as higher financing and depreciation expense. These negative factors were offset, in part, by higher realized power prices and lower plant operations and maintenance expense. Proactive forward sales and hedges of 2009 generation, executed in prior years at higher-than-2009 market prices, largely shielded merchant generation segment earnings from the impact of falling market prices for power. GAAP earnings from merchant generation operations in 2009 were $247 million, down from $352 million in 2008. In addition to the items noted above, the GAAP earnings comparison reflected lower charges in 2009 related to the Illinois electric settlement agreement reached in 2007, a loss in 2009 as opposed to a gain in 2008 from net unrealized mark-to-market activity, charges for employee separations in 2009 and asset impairments in 2008 and 2009 and the 2009 portion of the lump-sum settlement payment received and recorded in 2008 related to a terminated coal contract.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9:00 a.m. Central Time on Thursday, Feb. 18, to discuss 2009 earnings and other matters. Investors, the news media and the public may listen to a live Internet broadcast of the call at www.ameren.com by clicking on "Q4 2009 Ameren Corporation Earnings Conference Call," followed by the appropriate audio link. An accompanying slide presentation will be available on Ameren's Web site. This presentation will be posted in the "Investors" section of the Web site under "Webcasts and presentations." The analyst call will also be available for replay on the Internet for one year. In addition, a telephone playback of the conference call will be available beginning at approximately noon Central Time, from Feb. 18 through Feb. 24, by dialing, U.S. (877) 660-6853 or international (201) 612-7415, and entering account number 352 and ID number 343213.
About Ameren
With assets of $24 billion, Ameren serves approximately 2.4 million electric customers and almost one million natural gas customers in a 64,000-square-mile area of Missouri and Illinois. Ameren owns a diverse mix of electric generating plants strategically located in its Midwest market with a generating capacity of more than 16,300 megawatts.
Regulation G Statement
Ameren has presented certain information in this release on a diluted cents per share basis. These diluted per share amounts reflect certain factors that directly impact Ameren's total earnings per share. The core (non-GAAP) earnings per share and core (non-GAAP) earnings per share guidance excludes one or more of the following: the earnings impact of the 2007 settlement agreement among parties in Illinois for comprehensive electric rate relief and customer assistance, net unrealized mark-to-market gains or losses, the costs of employee separations in 2009 and asset impairment charges in 2008 and 2009, a lump-sum payment in 2008 from a coal supplier for expected higher fuel costs in 2009 as a result of the termination of a contract, the benefit in 2008 of a rate order from the Missouri Public Service Commission directing the recording of regulatory assets for previously incurred costs for the January 2007 severe ice storm and a 2007 Federal Energy Regulatory Commission order. Ameren uses core (non-GAAP) earnings internally for financial planning and for analysis of performance. Ameren also uses core (non-GAAP) earnings as primary performance measurements when communicating with analysts and investors regarding our earnings results and outlook, as the company believes it allows it to more accurately compare the company's ongoing performance across periods.
In providing consolidated and segment core (non-GAAP) earnings guidance, there could be differences between core (non-GAAP) earnings and earnings prepared in accordance with GAAP for certain items, such as those listed 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 elsewhere in this release and in our filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
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 Year Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Operating Revenues:
Electric $1,320 $1,423 $5,909 $6,367
Gas 355 485 1,181 1,472
--- --- ----- -----
Total operating revenues 1,675 1,908 7,090 7,839
----- ----- ----- -----
Operating Expenses:
Fuel 274 372 1,141 1,275
Purchased power 201 246 909 1,210
Gas purchased for resale 226 360 749 1,057
Other operations and maintenance 444 496 1,738 1,857
Depreciation and amortization 184 172 725 685
Taxes other than income taxes 101 93 412 393
--- -- --- ---
Total operating expenses 1,430 1,739 5,674 6,477
----- ----- ----- -----
Operating Income 245 169 1,416 1,362
Other Income and Expenses:
Miscellaneous income 22 19 71 80
Miscellaneous expense (9) (8) (23) (31)
--- --- --- ---
Total other income 13 11 48 49
--- --- --- ---
Interest Charges 132 109 508 440
--- --- --- ---
Income Before Income Taxes 126 71 956 971
Income Taxes 44 8 332 327
--- --- --- ---
Net Income 82 63 624 644
Less: Net Income Attributable to
Noncontrolling Interests 3 6 12 39
--- --- --- ---
Net Income Attributable to Ameren
Corporation $79 $57 $612 $605
--------------------------------- --- --- ---- ----
Earnings per Common Share - Basic and
Diluted $0.34 $0.27 $2.78 $2.88
Average Common Shares Outstanding 237.0 211.5 220.4 210.1
--------------------------------- ----- ----- ----- -----
AMEREN CORPORATION (AEE)
CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
December 31, December 31,
2009 2008
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $622 $92
Accounts receivable - trade, net 434 516
Unbilled revenue 367 427
Miscellaneous accounts and
notes receivable 308 315
Materials and supplies 782 842
Mark-to-market derivative assets 121 207
Other current assets 208 209
--- ---
Total current assets 2,842 2,608
----- -----
Property and Plant, Net 17,610 16,567
Investments and Other Assets:
Nuclear decommissioning trust fund 293 239
Goodwill 831 831
Intangible assets 129 167
Regulatory assets 1,430 1,653
Other assets 655 606
--- ---
Total investments and other
assets 3,338 3,496
--------------------------- ----- -----
TOTAL ASSETS $23,790 $22,671
------------ ------- -------
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term
debt $204 $380
Short-term debt 20 1,174
Accounts and wages payable 694 813
Taxes accrued 54 54
Interest accrued 110 107
Customer deposits 101 126
Mark-to-market derivative
liabilities 109 155
Other current liabilities 419 268
--- ---
Total current liabilities 1,711 3,077
----- -----
Credit Facility Borrowings 830 -
Long-term Debt, Net 7,113 6,554
Deferred Credits and Other Liabilities:
Accumulated deferred income
taxes, net 2,554 2,131
Accumulated deferred
investment tax credits 94 100
Regulatory liabilities 1,338 1,291
Asset retirement obligations 429 406
Accrued pension and other
postretirement benefits 1,165 1,495
Other deferred credits and
liabilities 496 438
--- ---
Total deferred credits and
other liabilities 6,076 5,861
----- -----
Ameren Corporation
Stockholders' Equity:
Common stock 2 2
Other paid-in capital,
principally premium on common
stock 5,412 4,780
Retained earnings 2,455 2,181
Accumulated other comprehensive
loss (16) -
--- ---
Total Ameren Corporation
stockholders' equity 7,853 6,963
Noncontrolling Interests 207 216
--- ---
Total equity 8,060 7,179
------------ ----- -----
TOTAL LIABILITIES AND EQUITY $23,790 $22,671
---------------------------- ------- -------
AMEREN CORPORATION (AEE)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
Year Ended
December 31,
------------
2009 2008
---- ----
Cash Flows From Operating Activities:
Net income $624 $644
Adjustments to reconcile net income to net cash
provided by operating activities:
Gain on sales of emission allowances (6) (8)
Loss on asset impairments 7 14
Net mark-to-market gain on derivatives (23) (3)
Depreciation and amortization 748 705
Amortization of nuclear fuel 53 37
Amortization of debt issuance costs
and premium/discounts 25 20
Deferred income taxes and
investment tax credits, net 402 167
Other (17) (9)
Changes in assets and liabilities:
Receivables 21 12
Materials and supplies 67 (100)
Accounts and wages payable (42) 57
Taxes accrued - (30)
Assets, other (66) 83
Liabilities, other 103 113
Pension and other postretirement benefit
obligations (9) (4)
Counterparty collateral, net (17) (25)
Taum Sauk costs, net of insurance recoveries 107 (149)
--- ----
Net cash provided by operating activities 1,977 1,524
----------------------------------------- ----- -----
Cash Flows From Investing Activities:
Capital expenditures (1,704) (1,896)
Nuclear fuel expenditures (80) (173)
Purchases of securities - nuclear
decommissioning trust fund (383) (520)
Sales of securities - nuclear
decommissioning trust fund 380 497
Purchases of emission allowances (4) (14)
Sales of emission allowances - 6
Other 2 3
--- ---
Net cash used in investing activities (1,789) (2,097)
------------------------------------- ------ ------
Cash Flows From Financing Activities:
Dividends on common stock (338) (534)
Capital issuance costs (65) (12)
Short-term and credit facility borrowings, net (324) (298)
Short-term and credit facility borrowings, net (21) (40)
Redemptions, repurchases, and maturities:
Long-term debt (631) (842)
Preferred stock - (16)
Issuances:
Common stock 634 154
Long-term debt 1,021 1,879
Generator advances received for construction,
net 66 19
--- ---
Net cash provided by financing activities 342 310
----------------------------------------- --- ---
Net change in cash and cash equivalents 530 (263)
Cash and cash equivalents at beginning of year 92 355
---------------------------------------------- -- ---
Cash and cash equivalents at end of year $622 $92
---------------------------------------- ---- ---
AMEREN CORPORATION (AEE)
CONSOLIDATED OPERATING STATISTICS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Electric Sales -
kilowatthours (in
millions):
Missouri Regulated
Residential 3,279 3,337 13,413 13,904
Commercial 3,484 3,485 14,510 14,690
Industrial 1,815 2,266 7,037 9,256
Other 536 179 1,655 785
--- --- ----- ---
Native load subtotal 9,114 9,267 36,615 38,635
Off-system sales 3,428 1,926 12,447 10,457
----- ----- ------ ------
Subtotal 12,542 11,193 49,062 49,092
------ ------ ------ ------
Illinois Regulated
Residential
Generation and
delivery service 2,764 2,949 11,089 11,667
Commercial
Generation and
delivery service 1,194 1,609 5,235 6,095
Delivery
service only 1,862 1,592 6,797 6,147
Industrial
Generation and
delivery service 154 351 514 1,442
Delivery
service only 2,723 2,733 10,712 11,300
Other 146 149 546 555
--- --- --- ---
Native load
subtotal 8,843 9,383 34,893 37,206
----- ----- ------ ------
Merchant Generation
Non-affiliate
energy sales 6,683 6,835 25,673 26,395
Affiliate
native energy sales 620 1,416 3,529 6,055
--- ----- ----- -----
Subtotal 7,303 8,251 29,202 32,450
----- ----- ------ ------
Eliminate affiliate sales (620) (1,416) (3,529) (6,055)
Eliminate Illinois
Regulated/ Merchant
Generation common
customers (1,511) (1,283) (5,566) (4,939)
------ ------ ------ ------
Ameren Total 26,557 26,128 104,062 107,754
------------- ------ ------ ------- -------
Electric Revenues (in millions):
Missouri Regulated
Residential $201 $192 $982 $948
Commercial 177 165 881 838
Industrial 67 77 314 372
Other 36 20 122 108
--- --- --- ---
Native load
subtotal 481 454 2,299 2,266
Off-system sales 99 72 401 490
--- --- --- ---
Subtotal $580 $526 $2,700 $2,756
---- ---- ------ ------
Illinois Regulated
Residential
Generation and
delivery service $256 $287 $1,094 $1,112
Commercial
Generation and
delivery service 105 154 521 616
Delivery
service only 28 21 103 77
Industrial
Generation and
delivery service 7 25 22 102
Delivery
service only 10 8 36 30
Other 22 55 157 285
--- --- --- ---
Native load
subtotal $428 $550 $1,933 $2,222
---- ---- ------ ------
Merchant Generation
Non-affiliate
energy sales $345 $332 $1,340 $1,389
Affiliate
native energy sales 76 132 385 441
Other (17) 22 (15) 106
--- --- --- ---
Subtotal $404 $486 $1,710 $1,936
---- ---- ------ ------
Eliminate affiliate
revenues (92) (139) (434) (547)
--- ---- ---- ----
Ameren Total $1,320 $1,423 $5,909 $6,367
------------ ------ ------ ------ ------
AMEREN CORPORATION (AEE)
CONSOLIDATED OPERATING STATISTICS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Electric Generation -
megawatthours (in
millions):
Missouri Regulated 12.5 11.2 48.8 49.3
Merchant Generation
Ameren Energy
Generating Company
(Genco) 3.0 4.4 13.4 16.6
AmerenEnergy Resources
Generating Company
(AERG) 1.9 1.6 6.8 6.7
Electric Energy, Inc.
(EEI) 2.1 2.1 7.1 8.0
AmerenEnergy Medina
Valley Cogen, L.L.C. 0.1 0.0 0.2 0.2
--- --- --- ---
Subtotal 7.1 8.1 27.5 31.5
--- --- ---- ----
Ameren Total 19.6 19.3 76.3 80.8
------------ ---- ---- ---- ----
Fuel Cost per
kilowatthour (cents)
Missouri Regulated 1.305 1.365 1.356 1.312
Merchant Generation 2.006 1.924 2.007 1.912
Gas Sales - decatherms
(in thousands)
Missouri Regulated 3,954 4,172 11,666 12,694
Illinois Regulated 32,092 34,546 92,590 103,668
Other 91 2,228 3,391 3,350
-- ----- ----- -----
Ameren Total 36,137 40,946 107,647 119,712
------------ ------ ------ ------- -------
Net Income (Loss) by
Segment (in millions):
Missouri Regulated $15 $(38) $259 $234
Illinois Regulated 27 17 124 32
Merchant Generation 42 68 247 352
Other (5) 10 (18) (13)
--- --- --- ---
Ameren Total $79 $57 $612 $605
------------ --- --- ---- ----
December 31, December 31,
2009 2008
---- ----
Common Stock:
Shares outstanding
(in millions) 237.4 212.3
Book value per share $33.08 $32.80
Capitalization Ratios:
Common equity 50.3% 45.9%
Preferred stock 1.3% 1.3%
Debt, net of cash 48.4% 52.8%
SOURCE Ameren Corporation