UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM 8-K |
CURRENT REPORT |
Pursuant to Section 13 or 15(d) of |
the Securities Exchange Act of 1934 |
Date of Report (Date of earliest event reported): July 31, 2013 |
CLECO CORPORATION |
(Exact name of registrant as specified in its charter) |
Louisiana | 1-15759 | 72-1445282 |
(State or other jurisdiction | (Commission File Number) | (IRS Employer |
of incorporation) | Identification No.) |
2030 Donahue Ferry Road | |
Pineville, Louisiana | 71360-5226 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (318) 484-7400 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 9.01 Financial Statements and Exhibits. |
(d) Exhibits. |
The following exhibit is furnished herewith: |
99.1 Press Release issued July 31, 2013, regarding Cleco Corporation’s earnings for the quarter and six months ended June 30, 2013. |
CLECO CORPORATION | |
Date: July 31, 2013 | By: /s/ Terry L. Taylor |
Terry L. Taylor | |
Controller and Chief Accounting Officer |
Exhibit Number | Exhibit Description |
99.1 | Press Release issued July 31, 2013, regarding Cleco Corporation’s earnings for the quarter and six months ended June 30, 2013. |
![]() | EXHIBIT 99.1 |
• | Receives state regulatory approval to join MISO |
• | Affirms 2013 earnings guidance of $2.45 to $2.55 per diluted share |
Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||
Diluted Earnings Per Share | |||||||||||||||
For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||
Subsidiary | 2013 | 2012 | 2013 | 2012 | |||||||||||
Cleco Power LLC | $ | 0.57 | $ | 0.60 | $ | 1.03 | $ | 1.06 | |||||||
Cleco Midstream Resources LLC | 0.03 | (0.01 | ) | 0.01 | (0.06 | ) | |||||||||
Corporate and Other | 0.02 | 0.05 | 0.02 | 0.07 | |||||||||||
Operational diluted earnings per share (Non-GAAP) | 0.62 | 0.64 | 1.06 | 1.07 | |||||||||||
Adjustments1 | 0.07 | 0.13 | 0.08 | 0.20 | |||||||||||
Diluted earnings per share applicable to common stock | $ | 0.69 | $ | 0.77 | $ | 1.14 | $ | 1.27 |
$ | 0.64 | 2012 second-quarter operational diluted earnings per share | ||
0.05 | Non-fuel revenue | |||
(0.10 | ) | Other expenses, net | ||
(0.01 | ) | AFUDC (allowance for funds used during construction) | ||
0.03 | Income taxes | |||
$ | (0.03 | ) | Cleco Power results | |
0.04 | Cleco Midstream results | |||
(0.03 | ) | Corporate and Other results | ||
$ | 0.62 | 2013 second-quarter operational diluted earnings per share | ||
0.07 | Adjustments1 | |||
$ | 0.69 | 2013 second-quarter reported GAAP diluted earnings per share |
• | Higher non-fuel revenue increased earnings by $0.05 per share compared to the second quarter of 2012 primarily due to $0.04 per share from adjustments to Cleco Power's formula rate plan. Also contributing to this increase was $0.01 per share of higher transmission and other revenue. |
• | Higher other expenses, net, decreased earnings by $0.10 per share compared to the second quarter of 2012 primarily due to $0.04 per share from higher generation expenses relating to outages, $0.04 per share from higher consulting expenses, higher property taxes, and higher other miscellaneous expenses, and $0.02 per share of higher depreciation expense. |
• | Lower AFUDC decreased earnings by $0.01 per share compared to the second quarter of 2012 primarily due to the timing of capital expenditures relating to transmission projects. |
• | Lower income taxes increased earnings by $0.03 per share compared to the second quarter of 2012 primarily due to the adjustment to record tax expense at the projected annual effective tax rate. |
• | Midstream's results increased earnings by $0.04 per share compared to the second quarter of 2012 primarily due to $0.03 per share of higher tolling revenue and $0.02 per share of lower maintenance expenses at Evangeline. These amounts were partially offset by $0.01 per share of higher interest charges primarily related to uncertain tax positions. |
• | Higher income taxes decreased earnings by $0.03 per share compared to the second quarter of 2012 primarily due to $0.03 per share for the adjustment to record tax expense at the consolidated projected annual effective tax rate and $0.01 per share for tax credits. These amounts were partially offset by $0.01 per share for permanent tax deductions. |
$ | 1.07 | Six months ended June 30, 2012, operational diluted earnings per share | ||
0.14 | Non-fuel revenue | |||
(0.02 | ) | Rate refund accrual | ||
(0.13 | ) | Other expenses, net | ||
(0.03 | ) | Interest charges | ||
(0.01 | ) | AFUDC | ||
0.02 | Income taxes | |||
$ | (0.03 | ) | Cleco Power results | |
0.07 | Cleco Midstream results | |||
(0.05 | ) | Corporate and Other results | ||
$ | 1.06 | Six months ended June 30, 2013, operational diluted earnings per share | ||
0.08 | Adjustments1 | |||
$ | 1.14 | Six months ended June 30, 2013, reported GAAP diluted earnings per share |
• | Higher non-fuel revenue increased earnings by $0.14 per share compared to the first six months of 2012 primarily due to $0.08 per share from adjustments to Cleco Power's formula rate plan, $0.05 per share from increased sales due primarily to weather, and $0.03 per share from higher transmission revenue. Partially offsetting these increases were $0.01 per share from lower mineral lease payments and $0.01 per share from other revenue. |
• | Higher rate refund accrual decreased earnings by $0.02 per share compared to the first six months of 2012 primarily due to the absence of the reversals of the 2012 cycle accrual and fuel audit reserves. |
• | Higher other expenses, net, decreased earnings by $0.13 per share compared to the first six months of 2012 primarily due to $0.05 per share of higher depreciation expense, $0.03 per share of higher generation maintenance expenses primarily related to outages, $0.03 per share of higher property taxes, $0.01 per share of higher consulting expenses, and $0.01 per share of higher other miscellaneous expenses. |
• | Higher interest charges decreased earnings by $0.03 per share compared to the first six months of 2012 primarily due to $0.05 per share from the absence of a favorable adjustment related to a tax settlement in 2012, partially offset by $0.01 per share related to reacquired debt and $0.01 per share related to the retirement of pollution control bonds. |
• | Lower AFUDC decreased earnings by $0.01 per share compared to the first six months of 2012 primarily due to the timing of capital expenditures relating to transmission projects. |
• | Lower income taxes increased earnings by $0.02 per share compared to the first six months of 2012 primarily due to $0.03 per share for the adjustment to record tax expense at the projected annual effective tax rate and $0.02 per share for settlements with taxing authorities, partially offset by $0.02 per share for permanent tax deductions and $0.01 per share for the flowthrough of tax benefits. |
• | Midstream’s results increased earnings by $0.07 per share compared to the first six months of 2012 primarily due to higher tolling revenue due to the power purchase agreement with Cleco Power beginning May 2012 and the absence of availability penalties from 2012. |
• | Higher income taxes decreased earnings by $0.05 per share compared to the first six months of 2012 primarily due to $0.03 per share for the adjustment to record tax expense at the consolidated projected annual effective tax rate and $0.02 per share for tax credits. |
Diluted Earnings Per Share | |||||||||||||||
For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Operational diluted earnings per share | $ | 0.62 | $ | 0.64 | $ | 1.06 | $ | 1.07 | |||||||
Life insurance policies | — | — | 0.01 | 0.01 | |||||||||||
Tax levelization | — | 0.01 | — | — | |||||||||||
Acadia Unit 1 indemnifications | — | — | — | 0.07 | |||||||||||
Acadia Unit 2 indemnifications | 0.07 | 0.12 | 0.07 | 0.12 | |||||||||||
Reported GAAP diluted earnings per share applicable to common stock | $ | 0.69 | $ | 0.77 | $ | 1.14 | $ | 1.27 |
Analyst Contact: |
Tom Miller |
(318) 484-7642 |
Media Contact: |
Robbyn Cooper |
(318) 484-7136 |
For the three months ended June 30 | |||||||||||||||||||
(Unaudited) | (million kWh) | (thousands) | |||||||||||||||||
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||
Electric Sales | |||||||||||||||||||
Residential | 801 | 848 | (5.5 | )% | $ | 64,815 | $ | 66,150 | (2.0 | )% | |||||||||
Commercial | 632 | 667 | (5.2 | )% | 44,679 | 44,317 | 0.8 | % | |||||||||||
Industrial | 575 | 578 | (0.5 | )% | 22,061 | 21,132 | 4.4 | % | |||||||||||
Other retail | 33 | 33 | — | % | 2,494 | 2,407 | 3.6 | % | |||||||||||
Surcharge | — | — | — | % | 2,054 | 2,036 | 0.9 | % | |||||||||||
Other | — | — | — | % | (1,566 | ) | (1,566 | ) | — | % | |||||||||
Total retail | 2,041 | 2,126 | (4.0 | )% | 134,537 | 134,476 | — | % | |||||||||||
Sales for resale | 498 | 466 | 6.9 | % | 13,299 | 11,710 | 13.6 | % | |||||||||||
Unbilled | 215 | 168 | 28.0 | % | 12,195 | 10,006 | 21.9 | % | |||||||||||
Total retail and wholesale customer sales | 2,754 | 2,760 | (0.2 | )% | $ | 160,031 | $ | 156,192 | 2.5 | % |
For the six months ended June 30 | |||||||||||||||||||
(Unaudited) | (million kWh) | (thousands) | |||||||||||||||||
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||
Electric Sales | |||||||||||||||||||
Residential | 1,642 | 1,632 | 0.6 | % | $ | 126,515 | $ | 122,540 | 3.2 | % | |||||||||
Commercial | 1,214 | 1,237 | (1.9 | )% | 88,728 | 86,064 | 3.1 | % | |||||||||||
Industrial | 1,130 | 1,128 | 0.2 | % | 43,186 | 41,224 | 4.8 | % | |||||||||||
Other retail | 65 | 65 | — | % | 5,061 | 4,767 | 6.2 | % | |||||||||||
Surcharge | — | — | — | % | 4,291 | 4,851 | (11.5 | )% | |||||||||||
Other | — | — | — | % | (3,131 | ) | (3,120 | ) | (0.4 | )% | |||||||||
Total retail | 4,051 | 4,062 | (0.3 | )% | 264,650 | 256,326 | 3.2 | % | |||||||||||
Sales for resale | 939 | 856 | 9.7 | % | 25,577 | 23,495 | 8.9 | % | |||||||||||
Unbilled | 152 | 80 | 90.0 | % | 8,007 | 5,703 | 40.4 | % | |||||||||||
Total retail and wholesale customer sales | 5,142 | 4,998 | 2.9 | % | $ | 298,234 | $ | 285,524 | 4.5 | % |
CLECO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Thousands, except share and per share amounts) (Unaudited) | |||||||
For the three months ended June 30 | 2013 | 2012 | |||||
Operating revenue | |||||||
Electric operations | $ | 252,765 | $ | 228,293 | |||
Other operations | 11,531 | 12,111 | |||||
Gross operating revenue | 264,296 | 240,404 | |||||
Electric customer credits | (402 | ) | (281 | ) | |||
Operating revenue, net | 263,894 | 240,123 | |||||
Operating expenses | |||||||
Fuel used for electric generation | 72,611 | 54,999 | |||||
Power purchased for utility customers | 13,940 | 16,068 | |||||
Other operations | 31,442 | 28,688 | |||||
Maintenance | 26,310 | 24,184 | |||||
Depreciation | 34,740 | 32,250 | |||||
Taxes other than income taxes | 10,285 | 9,713 | |||||
Gain on sale of assets | (188 | ) | (22 | ) | |||
Total operating expenses | 189,140 | 165,880 | |||||
Operating income | 74,754 | 74,243 | |||||
Interest income | 257 | (3 | ) | ||||
Allowance for other funds used during construction | 413 | 1,399 | |||||
Other income | 8,165 | 13,014 | |||||
Other expense | (1,247 | ) | (831 | ) | |||
Interest charges | |||||||
Interest charges, including amortization of debt expense and premium, net | 21,017 | 21,094 | |||||
Allowance for borrowed funds used during construction | (129 | ) | (478 | ) | |||
Total interest charges | 20,888 | 20,616 | |||||
Income before income taxes | 61,454 | 67,206 | |||||
Federal and state income tax expense | 19,422 | 20,520 | |||||
Net income applicable to common stock | $ | 42,032 | $ | 46,686 | |||
Average number of basic common shares outstanding | 60,445,617 | 60,421,028 | |||||
Average number of diluted common shares outstanding | 60,713,374 | 60,660,702 | |||||
Basic earnings per share | |||||||
Net income applicable to common stock | $ | 0.70 | $ | 0.77 | |||
Diluted earnings per share | |||||||
Net income applicable to common stock | $ | 0.69 | $ | 0.77 | |||
Cash dividends paid per share of common stock | $ | 0.3625 | $ | 0.3125 | |||
CLECO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Thousands, except share and per share amounts) (Unaudited) | |||||||
For the six months ended June 30 | 2013 | 2012 | |||||
Operating revenue | |||||||
Electric operations | $ | 482,191 | $ | 437,883 | |||
Other operations | 23,074 | 23,056 | |||||
Gross operating revenue | 505,265 | 460,939 | |||||
Electric customer credits | (424 | ) | 1,955 | ||||
Operating revenue, net | 504,841 | 462,894 | |||||
Operating expenses | |||||||
Fuel used for electric generation | 157,976 | 128,063 | |||||
Power purchased for utility customers | 18,796 | 24,705 | |||||
Other operations | 58,363 | 56,385 | |||||
Maintenance | 43,944 | 41,419 | |||||
Depreciation | 68,773 | 64,097 | |||||
Taxes other than income taxes | 22,919 | 19,743 | |||||
Loss (gain) on sale of assets | 846 | (55 | ) | ||||
Total operating expenses | 371,617 | 334,357 | |||||
Operating income | 133,224 | 128,537 | |||||
Interest income | 457 | 31 | |||||
Allowance for other funds used during construction | 1,577 | 2,416 | |||||
Equity income from investees, before tax | — | 1 | |||||
Other income | 10,438 | 22,389 | |||||
Other expense | (1,683 | ) | (1,486 | ) | |||
Interest charges | |||||||
Interest charges, including amortization of debt expense and premium, net | 42,848 | 42,062 | |||||
Allowance for borrowed funds used during construction | (504 | ) | (822 | ) | |||
Total interest charges | 42,344 | 41,240 | |||||
Income before income taxes | 101,669 | 110,648 | |||||
Federal and state income tax expense | 32,503 | 33,930 | |||||
Net income applicable to common stock | $ | 69,166 | $ | 76,718 | |||
Average number of basic common shares outstanding | 60,419,588 | 60,387,388 | |||||
Average number of diluted common shares outstanding | 60,670,112 | 60,625,377 | |||||
Basic earnings per share | |||||||
Net income applicable to common stock | $ | 1.15 | $ | 1.27 | |||
Diluted earnings per share | |||||||
Net income applicable to common stock | $ | 1.14 | $ | 1.27 | |||
Cash dividends paid per share of common stock | $ | 0.70 | $ | 0.625 | |||
CLECO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Thousands) (Unaudited) | |||||||
At June 30, 2013 | At Dec. 31, 2012 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 7,567 | $ | 31,020 | |||
Accounts receivable, net | 89,425 | 77,034 | |||||
Other current assets | 288,943 | 339,284 | |||||
Total current assets | 385,935 | 447,338 | |||||
Property, plant and equipment, net | 3,042,221 | 3,009,461 | |||||
Equity investment in investees | 14,541 | 14,540 | |||||
Prepayments, deferred charges and other | 673,439 | 676,010 | |||||
Total assets | $ | 4,116,136 | $ | 4,147,349 | |||
Liabilities | |||||||
Current liabilities | |||||||
Short-term debt | $ | 3,000 | $ | — | |||
Long-term debt due within one year | 16,658 | 91,140 | |||||
Accounts payable | 93,981 | 102,695 | |||||
Other current liabilities | 120,177 | 100,795 | |||||
Total current liabilities | 233,816 | 294,630 | |||||
Deferred credits | 1,027,221 | 1,096,248 | |||||
Long-term debt, net | 1,323,765 | 1,257,258 | |||||
Total liabilities | 2,584,802 | 2,648,136 | |||||
Shareholders’ equity | |||||||
Common shareholders’ equity | 1,561,209 | 1,531,583 | |||||
Accumulated other comprehensive loss | (29,875 | ) | (32,370 | ) | |||
Total shareholders’ equity | 1,531,334 | 1,499,213 | |||||
Total liabilities and shareholders’ equity | $ | 4,116,136 | $ | 4,147,349 |
(?J,1[JC4V&AOK"FH=2LQFT!N-]FMSO5=^J_JUN3]JR
M,?\`0W,L7SRDDI__V0`X0DE-!"$``````%,````!`0````\`00!D`&\`8@!E
M`"``4`!H`&\`=`!O`',`:`!O`'`````2`$$`9`!O`&(`90`@`%``:`!O`'0`
M;P!S`&@`;P!P`"``0P!3`````0`X0DE-!`8```````<`!@````$!`/_A&3]H
M='1P.B\O;G,N861O8F4N8V]M+WAA<"\Q+C`O`#P_>'!A8VME="!B96=I;CTG
M[[N_)R!I9#TG5S5-,$UP0V5H:4AZ