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 27, 2015 |
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 27, 2015, regarding Cleco Corporation’s earnings for the quarter and six months ended June 30, 2015. |
CLECO CORPORATION | |
Date: July 27, 2015 | By: /s/ Terry L. Taylor |
Terry L. Taylor | |
Controller and Chief Accounting Officer |
Exhibit Number | Exhibit Description |
99.1 | Press Release issued July 27, 2015, regarding Cleco Corporation’s earnings for the quarter and six months ended June 30, 2015. |
![]() | EXHIBIT 99.1 |
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 | 2015 | 2014 | 2015 | 2014 | |||||||||||
Cleco Power LLC | $ | 0.53 | $ | 0.53 | $ | 0.99 | $ | 0.97 | |||||||
Corporate and Other | — | 0.04 | (0.01 | ) | 0.03 | ||||||||||
Operational diluted earnings per share (Non-GAAP) | 0.53 | 0.57 | 0.98 | 1.00 | |||||||||||
Adjustments1 | (0.03 | ) | 0.03 | (0.04 | ) | 0.03 | |||||||||
Diluted earnings per share applicable to common stock | $ | 0.50 | $ | 0.60 | $ | 0.94 | $ | 1.03 |
$ | 0.57 | 2014 second-quarter operational diluted earnings per share | ||
(0.18 | ) | Non-fuel revenue | ||
0.19 | Rate refund accrual | |||
0.02 | Other expenses, net | |||
0.02 | Interest charges | |||
(0.03 | ) | AFUDC (allowance for funds used during construction) | ||
(0.02 | ) | Income taxes | ||
$ | — | Cleco Power results quarter-over-quarter | ||
(0.04 | ) | Corporate and Other results quarter-over-quarter | ||
$ | 0.53 | 2015 second-quarter operational diluted earnings per share | ||
(0.03 | ) | Adjustments1 | ||
$ | 0.50 | 2015 second-quarter reported GAAP diluted earnings per share |
• | Non-fuel revenue decreased earnings by $0.18 per share compared to the second quarter of 2014 primarily due to $0.16 per share related to lower sales to wholesale customers and $0.07 per share related to adjustments to Cleco Power’s formula rate plan in July 2014. These amounts were partially offset by $0.04 per share related to weather and $0.01 per share of higher transmission and distribution revenue. |
• | Rate refund increased earnings by $0.19 per share compared to the second quarter of 2014 primarily due to $0.22 per share related to the absence of provisions for refunds as a result of the formula rate plan extension approved in June 2014. This amount was partially offset by $0.02 per share related to provisions for a transmission refund and $0.01 per share for an energy efficiency refund. |
• | Other expenses, net, increased earnings by $0.02 per share compared to the second quarter of 2014 primarily related to $0.05 per share of lower maintenance expense largely from lower generating station outages. Also contributing to the increase was $0.01 per share of lower depreciation and amortization expense and $0.01 per share of lower miscellaneous expenses. These amounts were partially offset by $0.02 per share of higher non-recoverable fuel expenses primarily related to higher MISO transmission expenses and administrative fees and $0.03 per share of higher pension expense. |
• | Interest charges increased earnings by $0.02 per share compared to the second quarter of 2014 primarily related to the absence of a customer surcredit. |
• | AFUDC decreased earnings by $0.03 per share compared to the second quarter of 2014 primarily due to lower costs related to the completion of the Mercury and Air Toxics Standards (MATS) project. |
• | Income taxes decreased earnings by $0.02 per share compared to the second quarter of 2014 primarily due to the adjustment to record tax expense at the projected annual effective tax rate. |
• | Interest charges decreased earnings by $0.01 per share compared to the second quarter of 2014 primarily due to higher miscellaneous interest charges. |
• | Income taxes decreased earnings by $0.03 per share compared to the second quarter of 2014 primarily due to $0.04 per share for a settlement with taxing authorities and $0.01 per share for tax credits. These decreases were partially offset by $0.01 per share for the adjustment to record tax expense at the consolidated projected annual effective tax rate and $0.01 per share for miscellaneous tax items. |
$ | 1.00 | Six months ended June 30, 2014, operational diluted earnings per share | ||
(0.19 | ) | Non-fuel revenue | ||
0.20 | Rate refund | |||
0.09 | Other expenses, net | |||
0.02 | Interest charges | |||
(0.04 | ) | AFUDC | ||
(0.06 | ) | Income taxes | ||
$ | 0.02 | Cleco Power results year-over-year | ||
(0.04 | ) | Corporate and Other results year-over-year | ||
$ | 0.98 | Six months ended June 30, 2015, operational diluted earnings per share | ||
(0.04 | ) | Adjustments1 | ||
$ | 0.94 | Six months ended June 30, 2015, reported GAAP diluted earnings per share |
• | Non-fuel revenue decreased earnings by $0.19 per share compared to the first six months of 2014 primarily due to $0.14 per share related to lower sales to wholesale customers and $0.10 per share related to adjustments to Cleco Power’s formula rate plan in July 2014. These amounts were partially offset by $0.04 per share of higher transmission and distribution revenue and $0.01 per share related to weather. |
• | Rate refund increased earnings by $0.20 per share compared to the first six months of 2014 primarily due to $0.22 per share related to the absence of provisions for refunds as a result of the formula rate plan extension approved in June 2014 and $0.01 per share related to lower site specific generated refunds. These amounts were partially offset by $0.02 per share related to provisions for a transmission refund and $0.01 per share for an energy efficiency refund. |
• | Other expenses, net, increased earnings by $0.09 per share compared to the first six months of 2014 primarily due to $0.16 per share of lower maintenance expense largely from lower planned generating station outages and $0.04 per share of lower depreciation and amortization expense. These amounts were partially offset by $0.06 per share of higher pension expense and $0.05 per share of higher non-recoverable fuel expenses primarily related to higher MISO transmission expenses and administrative fees. |
• | Interest charges increased earnings by $0.02 per share compared to the first six months of 2014 primarily due to $0.03 per share related to the absence of a customer surcredit. This amount was partially offset by $0.01 per share related to a settlement with taxing authorities. |
• | AFUDC decreased earnings by $0.04 per share compared to the first six months of 2014 primarily due to lower costs related to the completion of the MATS project. |
• | Income taxes decreased earnings by $0.06 per share compared to the first six months of 2014 primarily due to $0.04 per share for an adjustment to record tax expense at the projected annual effective tax rate, $0.02 per share for a settlement with taxing authorities, and $0.01 per share for miscellaneous tax items. These decreases were partially offset by $0.01 per share for the flowthrough of state tax benefits. |
• | Revenue decreased earnings by $0.06 per share compared to the first six months of 2014 primarily due to the transfer of Coughlin to Cleco Power. |
• | Other expenses increased earnings by $0.06 per share compared to the first six months of 2014 due to $0.04 per share of lower operations and maintenance expense, $0.01 per share of lower depreciation expense, and $0.01 per share of lower miscellaneous expenses, all related to the transfer of Coughlin to Cleco Power. |
• | Interest charges decreased earnings by $0.01 per share compared to the first six months of 2014 primarily due to higher miscellaneous interest charges. |
• | Income taxes decreased earnings by $0.03 per share compared to the first six months of 2014 primarily due to $0.04 per share related to a settlement with taxing authorities, partially offset by $0.01 per share for the adjustment to record tax expense at the consolidated projected annual effective tax rate. |
Diluted Earnings Per Share | |||||||||||||||
For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Operational diluted earnings per share | $ | 0.53 | $ | 0.57 | $ | 0.98 | $ | 1.00 | |||||||
Life insurance policies | — | 0.01 | — | 0.02 | |||||||||||
Tax levelization | (0.02 | ) | 0.01 | — | — | ||||||||||
Acadia Unit 2 indemnifications | — | 0.01 | — | 0.01 | |||||||||||
Merger transaction costs | (0.01 | ) | — | (0.04 | ) | — | |||||||||
Reported GAAP diluted earnings per share applicable to common stock | $ | 0.50 | $ | 0.60 | $ | 0.94 | $ | 1.03 |
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 June 30 | |||||||||||||||||||
(Unaudited) | (million kWh) | (thousands) | |||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | Change | ||||||||||||||
Electric Sales | |||||||||||||||||||
Residential | 819 | 788 | 3.9 | % | $ | 65,878 | $ | 65,965 | (0.1 | )% | |||||||||
Commercial | 667 | 636 | 4.9 | % | 45,434 | 46,399 | (2.1 | )% | |||||||||||
Industrial | 479 | 543 | (11.8 | )% | 20,159 | 21,105 | (4.5 | )% | |||||||||||
Other retail | 33 | 32 | 3.1 | % | 2,557 | 2,568 | (0.4 | )% | |||||||||||
Surcharge | — | — | — | % | 5,112 | 2,845 | 79.7 | % | |||||||||||
Total retail | 1,998 | 1,999 | (0.1 | )% | 139,140 | 138,882 | 0.2 | % | |||||||||||
Sales for resale | 748 | 770 | (2.9 | )% | 15,134 | 22,683 | (33.3 | )% | |||||||||||
Unbilled | 199 | 359 | (44.6 | )% | 11,301 | 22,663 | (50.1 | )% | |||||||||||
Total retail and wholesale customer sales | 2,945 | 3,128 | (5.9 | )% | $ | 165,575 | $ | 184,228 | (10.1 | )% |
For the six months ended June 30 | |||||||||||||||||||
(Unaudited) | (million kWh) | (thousands) | |||||||||||||||||
2015 | 2014 | Change | 2015 | 2014 | Change | ||||||||||||||
Electric Sales | |||||||||||||||||||
Residential | 1,787 | 1,814 | (1.5 | )% | $ | 133,417 | $ | 140,898 | (5.3 | )% | |||||||||
Commercial | 1,298 | 1,259 | 3.1 | % | 91,857 | 94,862 | (3.2 | )% | |||||||||||
Industrial | 921 | 1,092 | (15.7 | )% | 40,166 | 42,931 | (6.4 | )% | |||||||||||
Other retail | 67 | 64 | 4.7 | % | 5,149 | 5,224 | (1.4 | )% | |||||||||||
Surcharge | — | — | — | 10,561 | 5,280 | 100.0 | % | ||||||||||||
Total retail | 4,073 | 4,229 | (3.7 | )% | 281,150 | 289,195 | (2.8 | )% | |||||||||||
Sales for resale | 1,589 | 1,244 | 27.7 | % | 32,859 | 35,268 | (6.8 | )% | |||||||||||
Unbilled | 71 | 253 | (71.9 | )% | 4,867 | 16,949 | (71.3 | )% | |||||||||||
Total retail and wholesale customer sales | 5,733 | 5,726 | 0.1 | % | $ | 318,876 | $ | 341,412 | (6.6 | )% |
CLECO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Thousands, except share and per share amounts) (Unaudited) | |||||||
For the three months ended June 30 | 2015 | 2014 | |||||
Operating revenue | |||||||
Electric operations | $ | 276,661 | $ | 316,997 | |||
Other operations | 15,803 | 14,568 | |||||
Gross operating revenue | 292,464 | 331,565 | |||||
Electric customer credits | (3,390 | ) | (22,495 | ) | |||
Operating revenue, net | 289,074 | 309,070 | |||||
Operating expenses | |||||||
Fuel used for electric generation | 84,011 | 56,696 | |||||
Power purchased for utility customers | 34,132 | 81,393 | |||||
Other operations | 31,436 | 28,727 | |||||
Maintenance | 21,436 | 26,245 | |||||
Depreciation | 36,468 | 37,570 | |||||
Taxes other than income taxes | 12,117 | 11,567 | |||||
Merger transaction costs | (410 | ) | 365 | ||||
Gain on sale of assets | — | (214 | ) | ||||
Total operating expenses | 219,190 | 242,349 | |||||
Operating income | 69,884 | 66,721 | |||||
Interest income | 90 | 350 | |||||
Allowance for equity funds used during construction | 460 | 2,029 | |||||
Other income | 764 | 2,495 | |||||
Other expense | (695 | ) | (369 | ) | |||
Interest charges | |||||||
Interest charges, including amortization of debt expense, premium, and discount, net | 20,040 | 20,635 | |||||
Allowance for borrowed funds used during construction | (130 | ) | (570 | ) | |||
Total interest charges | 19,910 | 20,065 | |||||
Income before income taxes | 50,593 | 51,161 | |||||
Federal and state income tax expense | 20,359 | 14,528 | |||||
Net income applicable to common stock | $ | 30,234 | $ | 36,633 | |||
Average number of basic common shares outstanding | 60,480,684 | 60,359,949 | |||||
Average number of diluted common shares outstanding | 60,800,806 | 60,626,135 | |||||
Basic earnings per share | |||||||
Net income applicable to common stock | $ | 0.50 | $ | 0.61 | |||
Diluted earnings per share | |||||||
Net income applicable to common stock | $ | 0.50 | $ | 0.60 | |||
Dividends declared per share of common stock | $ | 0.40 | $ | 0.40 | |||
CLECO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Thousands, except share and per share amounts) (Unaudited) | |||||||
For the six months ended June 30 | 2015 | 2014 | |||||
Operating revenue | |||||||
Electric operations | $ | 554,175 | $ | 586,756 | |||
Other operations | 33,535 | 29,381 | |||||
Gross operating revenue | 587,710 | 616,137 | |||||
Electric customer credits | (3,179 | ) | (22,681 | ) | |||
Operating revenue, net | 584,531 | 593,456 | |||||
Operating expenses | |||||||
Fuel used for electric generation | 172,136 | 115,743 | |||||
Power purchased for utility customers | 78,213 | 134,117 | |||||
Other operations | 59,995 | 55,716 | |||||
Maintenance | 40,518 | 58,615 | |||||
Depreciation | 73,746 | 79,311 | |||||
Taxes other than income taxes | 25,589 | 25,674 | |||||
Merger transaction costs | 1,730 | 365 | |||||
Gain on sale of assets | — | (145 | ) | ||||
Total operating expenses | 451,927 | 469,396 | |||||
Operating income | 132,604 | 124,060 | |||||
Interest income | 388 | 952 | |||||
Allowance for equity funds used during construction | 1,537 | 3,660 | |||||
Other income | 1,409 | 3,466 | |||||
Other expense | (1,063 | ) | (1,041 | ) | |||
Interest charges | |||||||
Interest charges, including amortization of debt expense, premium, and discount, net | 40,483 | 41,393 | |||||
Allowance for borrowed funds used during construction | (451 | ) | (1,059 | ) | |||
Total interest charges | 40,032 | 40,334 | |||||
Income before income taxes | 94,843 | 90,763 | |||||
Federal and state income tax expense | 37,687 | 28,206 | |||||
Net income applicable to common stock | $ | 57,156 | $ | 62,557 | |||
Average number of basic common shares outstanding | 60,470,989 | 60,424,591 | |||||
Average number of diluted common shares outstanding | 60,776,735 | 60,678,026 | |||||
Basic earnings per share | |||||||
Net income applicable to common stock | $ | 0.95 | $ | 1.04 | |||
Diluted earnings per share | |||||||
Net income applicable to common stock | $ | 0.94 | $ | 1.03 | |||
Dividends declared per share of common stock | $ | 0.80 | $ | 0.7625 | |||
CLECO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Thousands) (Unaudited) | |||||||
At June 30, 2015 | At Dec. 31, 2014 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 22,429 | $ | 44,423 | |||
Accounts receivable, net | 69,761 | 69,598 | |||||
Other current assets | 378,621 | 386,583 | |||||
Total current assets | 470,811 | 500,604 | |||||
Property, plant and equipment, net | 3,176,951 | 3,165,458 | |||||
Equity investment in investees | 15,380 | 14,540 | |||||
Prepayments, deferred charges and other | 678,872 | 698,471 | |||||
Total assets | $ | 4,342,014 | $ | 4,379,073 | |||
Liabilities | |||||||
Current liabilities | |||||||
Long-term debt due within one year | $ | 43,847 | $ | 18,272 | |||
Accounts payable | 96,316 | 127,268 | |||||
Other current liabilities | 116,031 | 92,230 | |||||
Total current liabilities | 256,194 | 237,770 | |||||
Long-term liabilities and deferred credits | 1,191,438 | 1,164,380 | |||||
Long-term debt, net | 1,255,042 | 1,349,653 | |||||
Total liabilities | 2,702,674 | 2,751,803 | |||||
Shareholders’ equity | |||||||
Common shareholders’ equity | 1,670,634 | 1,659,935 | |||||
Accumulated other comprehensive loss | (31,294 | ) | (32,665 | ) | |||
Total shareholders’ equity | 1,639,340 | 1,627,270 | |||||
Total liabilities and shareholders’ equity | $ | 4,342,014 | $ | 4,379,073 |
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