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): October 28, 2014 |
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 October 28, 2014, regarding Cleco Corporation’s earnings for the quarter and nine months ended September 30, 2014, earnings guidance for 2015, and its five-year capital expenditure forecast for 2015 through 2019. |
CLECO CORPORATION | |
Date: October 28, 2014 | By: /s/ Terry L. Taylor |
Terry L. Taylor | |
Controller and Chief Accounting Officer |
Exhibit Number | Exhibit Description |
99.1 | Press Release issued October 28, 2014, regarding Cleco Corporation’s earnings for the quarter and nine months ended September 30, 2014, earnings guidance for 2015, and its five-year capital expenditure forecast for 2015 through 2019. |
EXHIBIT 99.1 |
• | Third quarter earnings up $0.08 per diluted share over prior year |
◦ | Reached favorable multi-year settlement with taxing authorities |
◦ | Benefited from wholesale customer summer demand |
• | Agreed to be acquired by North American-based investor group |
• | Issues initial 2015 operational earnings guidance of $2.28 to $2.38 per diluted share |
Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||
Diluted Earnings Per Share | |||||||||||||||
For the three months ended Sept. 30 | For the nine months ended Sept. 30 | ||||||||||||||
Subsidiary | 2014 | 2013 | 2014 | 2013 | |||||||||||
Cleco Power LLC | $ | 1.08 | $ | 1.04 | $ | 2.04 | $ | 2.03 | |||||||
Corporate and Other | 0.09 | 0.05 | 0.12 | 0.10 | |||||||||||
Operational diluted earnings per share (Non-GAAP) | 1.17 | 1.09 | 2.16 | 2.13 | |||||||||||
Adjustments1 | — | — | 0.04 | 0.10 | |||||||||||
Diluted earnings per share applicable to common stock | $ | 1.17 | $ | 1.09 | $ | 2.20 | $ | 2.23 |
$ | 1.09 | 2013 third-quarter operational diluted earnings per share | ||
(0.04 | ) | Non-fuel revenue | ||
(0.02 | ) | Other expenses, net | ||
0.05 | Interest charges | |||
(0.01 | ) | AFUDC (allowance for funds used during construction) | ||
0.06 | Income taxes | |||
$ | 0.04 | Cleco Power results | ||
0.04 | Corporate and Other results | |||
$ | 1.17 | 2014 third-quarter operational diluted earnings per share | ||
— | Adjustments1 | |||
$ | 1.17 | 2014 third-quarter reported GAAP diluted earnings per share |
• | Non-fuel revenue decreased earnings by $0.04 per share compared to the third quarter of 2013 primarily due to $0.12 per share related to lower retail customer sales from lower usage and milder summer weather and $0.09 per share related to adjustments to Cleco Power’s formula rate plan. These amounts were partially offset by $0.10 per share of higher wholesale customer sales, $0.05 per share of higher unbilled revenue, and $0.02 per share related to the absence of customer refunds for construction financing costs related to Madison Unit 3. |
• | Other expenses, net, decreased earnings by $0.02 per share compared to the third quarter of 2013 largely due to $0.05 per share of higher operations and maintenance expense largely related to the transfer of Coughlin to Cleco Power and $0.03 per share of higher non-recoverable fuel and other miscellaneous expenses. These amounts were partially offset by $0.04 per share of lower taxes other than income taxes and $0.02 per share of lower depreciation and amortization expense. |
• | Interest charges increased earnings by $0.05 per share compared to the third quarter of 2013 primarily due to favorable settlements with taxing authorities. |
• | AFUDC decreased earnings by $0.01 per share compared to the third quarter of 2013 primarily due to lower costs related to the Mercury and Air Toxics Standards (MATS) project and other miscellaneous projects. |
• | Income taxes increased earnings by $0.06 per share compared to the third quarter of 2013 primarily due to $0.04 per share for favorable settlements with taxing authorities and $0.02 per share for the adjustment to record tax expense at the projected annual effective tax rate. |
• | Corporate and other results increased earnings by $0.04 per share compared to the third quarter of 2013 primarily due to $0.12 per share related to favorable settlements with taxing authorities, partially offset by $0.04 per share for the adjustment to record tax expense at the consolidated projected annual effective tax rate and $0.04 per share of lower net tolling revenue and expenses, which was the result of the transfer of Coughlin to Cleco Power. |
$ | 2.13 | Nine months ended Sept. 30, 2013, operational diluted earnings per share | ||
0.43 | Non-fuel revenue | |||
(0.23 | ) | Rate refund | ||
(0.32 | ) | Other expenses, net | ||
0.06 | Interest charges | |||
0.02 | AFUDC | |||
0.05 | Income taxes | |||
$ | 0.01 | Cleco Power results | ||
0.02 | Corporate and Other results | |||
$ | 2.16 | Nine months ended Sept. 30, 2014, operational diluted earnings per share | ||
0.04 | Adjustments1 | |||
$ | 2.20 | Nine months ended Sept. 30, 2014, reported GAAP diluted earnings per share |
• | Non-fuel revenue increased earnings by $0.43 per share compared to the first nine months of 2013 primarily due to $0.39 per share from higher sales to a new wholesale customer, colder winter weather in the first quarter of 2014, an increase in unbilled revenue, and the absence of customer refunds for construction financing costs related to Madison Unit 3. Also contributing to this increase was $0.04 per share of higher transmission revenue, net favorable adjustments related to Cleco Power’s formula rate plan, and higher other miscellaneous revenue. |
• | Rate refund decreased earnings by $0.23 per share compared to the first nine months of 2013 primarily due to provisions for refunds as a result of the formula rate plan extension approved in June 2014. |
• | Other expenses, net, decreased earnings by $0.32 per share compared to the first nine months of 2013 primarily due to $0.23 per share of higher operations and maintenance expense largely related to planned generating station outage expenses and the transfer of Coughlin to Cleco Power and $0.10 per share of higher depreciation and amortization expense. These amounts were partially offset by $0.01 per share of lower net miscellaneous expenses. |
• | Interest charges increased earnings by $0.06 per share compared to the first nine months of 2013 primarily due to $0.04 per share for favorable settlements with taxing authorities, $0.01 per share related to the retirement of senior notes, and $0.01 per share related to lower miscellaneous interest charges. |
• | AFUDC increased earnings by $0.02 per share compared to the first nine months of 2013 primarily due to higher capital spend related to the MATS project and other miscellaneous projects. |
• | Income taxes increased earnings by $0.05 per share compared to the first nine months of 2013 primarily due to $0.04 per share for favorable settlements with taxing authorities and $0.02 per share for the adjustment to record tax expense at the projected annual effective tax rate, partially offset by $0.01 per share for permanent tax deductions. |
• | Corporate and other results increased earnings by $0.02 per share compared to the first nine months of 2013 primarily due to $0.16 per share related to favorable settlements with taxing authorities. This amount was partially offset by $0.06 per share of lower net tolling revenue and expenses, which was the result of the transfer of Coughlin to Cleco Power, $0.06 per share related to lower tax credits, $0.01 per share for the adjustment to record tax expense at the consolidated projected annual effective tax rate, and $0.01 per share of higher miscellaneous expenses. |
Diluted Earnings Per Share | |||||||||||||||
For the three months ended Sept. 30 | For the nine months ended Sept. 30 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Operational diluted earnings per share | $ | 1.17 | $ | 1.09 | $ | 2.16 | $ | 2.13 | |||||||
Life insurance policies | — | 0.01 | 0.03 | 0.03 | |||||||||||
Tax levelization | — | (0.01 | ) | — | — | ||||||||||
Acadia Unit 2 indemnifications | — | — | 0.01 | 0.07 | |||||||||||
Reported GAAP diluted earnings per share applicable to common stock | $ | 1.17 | $ | 1.09 | $ | 2.20 | $ | 2.23 |
Analyst Contact: |
Tom Miller |
tom.miller@cleco.com |
(318) 484-7642 |
Media Contact: |
Robbyn Cooper |
robbyn.cooper@cleco.com |
(318) 484-7136 |
For the three months ended Sept. 30 | |||||||||||||||||||
(Unaudited) | (million kWh) | (thousands) | |||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||||
Electric Sales | |||||||||||||||||||
Residential | 1,156 | 1,198 | (3.5 | )% | $ | 90,636 | $ | 100,636 | (9.9 | )% | |||||||||
Commercial | 782 | 793 | (1.4 | )% | 47,768 | 52,678 | (9.3 | )% | |||||||||||
Industrial | 600 | 592 | 1.4 | % | 21,912 | 23,875 | (8.2 | )% | |||||||||||
Other retail | 34 | 35 | (2.9 | )% | 2,553 | 2,799 | (8.8 | )% | |||||||||||
Surcharge | — | — | — | 5,349 | 8,205 | (34.8 | )% | ||||||||||||
Other | — | — | — | — | (1,563 | ) | 100.0 | % | |||||||||||
Total retail | 2,572 | 2,618 | (1.8 | )% | 168,218 | 186,630 | (9.9 | )% | |||||||||||
Sales for resale | 1,179 | 643 | 83.4 | % | 23,929 | 13,657 | 75.2 | % | |||||||||||
Unbilled | 116 | (45 | ) | 357.8 | % | 2,049 | (2,382 | ) | 186.0 | % | |||||||||
Total retail and wholesale customer sales | 3,867 | 3,216 | 20.2 | % | $ | 194,196 | $ | 197,905 | (1.9 | )% |
For the nine months ended Sept. 30 | |||||||||||||||||||
(Unaudited) | (million kWh) | (thousands) | |||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||||
Electric Sales | |||||||||||||||||||
Residential | 2,970 | 2,839 | 4.6 | % | $ | 231,534 | $ | 227,151 | 1.9 | % | |||||||||
Commercial | 2,041 | 2,007 | 1.7 | % | 142,630 | 141,406 | 0.9 | % | |||||||||||
Industrial | 1,692 | 1,723 | (1.8 | )% | 64,842 | 67,061 | (3.3 | )% | |||||||||||
Other retail | 99 | 100 | (1.0 | )% | 7,777 | 7,860 | (1.1 | )% | |||||||||||
Surcharge | — | — | — | 10,629 | 12,496 | (14.9 | )% | ||||||||||||
Other | — | — | — | — | (4,694 | ) | 100.0 | % | |||||||||||
Total retail | 6,802 | 6,669 | 2.0 | % | 457,412 | 451,280 | 1.4 | % | |||||||||||
Sales for resale | 2,422 | 1,583 | 53.0 | % | 59,197 | 39,234 | 50.9 | % | |||||||||||
Unbilled | 369 | 107 | 244.9 | % | 18,999 | 5,624 | 237.8 | % | |||||||||||
Total retail and wholesale customer sales | 9,593 | 8,359 | 14.8 | % | $ | 535,608 | $ | 496,138 | 8.0 | % |
CLECO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Thousands, except share and per share amounts) (Unaudited) | |||||||
For the three months ended Sept. 30 | 2014 | 2013 | |||||
Operating revenue | |||||||
Electric operations | $ | 352,763 | $ | 314,766 | |||
Other operations | 19,497 | 14,843 | |||||
Gross operating revenue | 372,260 | 329,609 | |||||
Electric customer credits | (874 | ) | (846 | ) | |||
Operating revenue, net | 371,386 | 328,763 | |||||
Operating expenses | |||||||
Fuel used for electric generation | 104,463 | 101,752 | |||||
Power purchased for utility customers | 63,024 | 5,999 | |||||
Other operations | 30,992 | 30,057 | |||||
Maintenance | 20,558 | 20,427 | |||||
Depreciation | 37,834 | 41,756 | |||||
Taxes other than income taxes | 7,273 | 12,007 | |||||
Gain on sale of assets | — | (29 | ) | ||||
Total operating expenses | 264,144 | 211,969 | |||||
Operating income | 107,242 | 116,794 | |||||
Interest income | 416 | 332 | |||||
Allowance for equity funds used during construction | 631 | 1,303 | |||||
Other income | 848 | 2,837 | |||||
Other expense | (685 | ) | (1,456 | ) | |||
Interest charges | |||||||
Interest charges, including amortization of debt expense, premium, and discount, net | 13,375 | 19,436 | |||||
Allowance for borrowed funds used during construction | (200 | ) | (422 | ) | |||
Total interest charges | 13,175 | 19,014 | |||||
Income before income taxes | 95,277 | 100,796 | |||||
Federal and state income tax expense | 24,442 | 34,389 | |||||
Net income applicable to common stock | $ | 70,835 | $ | 66,407 | |||
Average number of basic common shares outstanding | 60,372,569 | 60,450,384 | |||||
Average number of diluted common shares outstanding | 60,689,596 | 60,748,647 | |||||
Basic earnings per share | |||||||
Net income applicable to common stock | $ | 1.17 | $ | 1.10 | |||
Diluted earnings per share | |||||||
Net income applicable to common stock | $ | 1.17 | $ | 1.09 | |||
Dividends declared per share of common stock | $ | 0.4000 | $ | 0.3625 | |||
CLECO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Thousands, except share and per share amounts) (Unaudited) | |||||||
For the nine months ended Sept. 30 | 2014 | 2013 | |||||
Operating revenue | |||||||
Electric operations | $ | 939,519 | $ | 796,957 | |||
Other operations | 48,878 | 37,917 | |||||
Gross operating revenue | 988,397 | 834,874 | |||||
Electric customer credits | (23,555 | ) | (1,270 | ) | |||
Operating revenue, net | 964,842 | 833,604 | |||||
Operating expenses | |||||||
Fuel used for electric generation | 220,206 | 259,728 | |||||
Power purchased for utility customers | 197,141 | 24,795 | |||||
Other operations | 87,074 | 88,420 | |||||
Maintenance | 79,173 | 64,372 | |||||
Depreciation | 117,145 | 110,529 | |||||
Taxes other than income taxes | 32,946 | 34,926 | |||||
(Gain) loss on sale of assets | (145 | ) | 817 | ||||
Total operating expenses | 733,540 | 583,587 | |||||
Operating income | 231,302 | 250,017 | |||||
Interest income | 1,369 | 789 | |||||
Allowance for equity funds used during construction | 4,291 | 2,880 | |||||
Other income | 4,314 | 12,282 | |||||
Other expense | (1,727 | ) | (2,146 | ) | |||
Interest charges | |||||||
Interest charges, including amortization of debt expense, premium, and discount, net | 54,767 | 62,284 | |||||
Allowance for borrowed funds used during construction | (1,259 | ) | (926 | ) | |||
Total interest charges | 53,508 | 61,358 | |||||
Income before income taxes | 186,041 | 202,464 | |||||
Federal and state income tax expense | 52,649 | 66,892 | |||||
Net income applicable to common stock | $ | 133,392 | $ | 135,572 | |||
Average number of basic common shares outstanding | 60,410,122 | 60,428,944 | |||||
Average number of diluted common shares outstanding | 60,711,543 | 60,694,632 | |||||
Basic earnings per share | |||||||
Net income applicable to common stock | $ | 2.21 | $ | 2.25 | |||
Diluted earnings per share | |||||||
Net income applicable to common stock | $ | 2.20 | $ | 2.23 | |||
Dividends declared per share of common stock | $ | 1.1625 | $ | 1.0625 | |||
CLECO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Thousands) (Unaudited) | |||||||
At Sept. 30, 2014 | At Dec. 31, 2013 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 11,210 | $ | 28,656 | |||
Accounts receivable, net | 104,624 | 97,548 | |||||
Other current assets | 364,252 | 347,378 | |||||
Total current assets | 480,086 | 473,582 | |||||
Property, plant and equipment, net | 3,144,243 | 3,083,140 | |||||
Equity investment in investees | 14,540 | 14,540 | |||||
Prepayments, deferred charges and other | 617,445 | 644,000 | |||||
Total assets | $ | 4,256,314 | $ | 4,215,262 | |||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt due within one year | $ | 18,236 | $ | 17,182 | |||
Accounts payable | 120,675 | 110,544 | |||||
Other current liabilities | 128,477 | 115,747 | |||||
Total current liabilities | 267,388 | 243,473 | |||||
Long-term liabilities and deferred credits | 1,029,877 | 1,070,092 | |||||
Long-term debt, net | 1,320,178 | 1,315,500 | |||||
Total liabilities | 2,617,443 | 2,629,065 | |||||
Shareholders’ equity | |||||||
Common shareholders’ equity | 1,662,988 | 1,612,073 | |||||
Accumulated other comprehensive loss | (24,117 | ) | (25,876 | ) | |||
Total shareholders’ equity | 1,638,871 | 1,586,197 | |||||
Total liabilities and shareholders’ equity | $ | 4,256,314 | $ | 4,215,262 |
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