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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: February 15, 2013
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Exact Name of Registrant |
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Commission |
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I.R.S. Employer |
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as Specified in Its Charter |
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File Number |
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Identification No. |
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Hawaiian Electric Industries, Inc. |
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1-8503 |
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99-0208097 |
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Hawaiian Electric Company, Inc. |
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1-4955 |
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99-0040500 |
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State of Hawaii |
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(State or other jurisdiction of incorporation) |
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1001 Bishop Street, Suite 2900, Honolulu, Hawaii 96813 – Hawaiian Electric Industries, Inc. (HEI) |
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900 Richards Street, Honolulu, Hawaii 96813 – Hawaiian Electric Company, Inc. (HECO) |
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code:
(808) 543-5662 - HEI
(808) 543-7771 - HECO
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None |
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(Former name or former address, if changed since last report.) |
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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:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On February 15, 2013, HEI issued a news release, “Hawaiian Electric Industries Reports 2012 Year-end & Fourth Quarter Earnings; Webcast to Include Guidance.” This news release is furnished as HEI Exhibit 99.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
HEI Exhibit 99 News release, dated February 15, 2013, “Hawaiian Electric Industries Reports 2012 Year-end & Fourth Quarter Earnings; Webcast to Include Guidance”
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. The signature of the undersigned companies shall be deemed to relate only to matters having reference to such companies and any subsidiaries thereof.
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HAWAIIAN ELECTRIC INDUSTRIES, INC. |
HAWAIIAN ELECTRIC COMPANY, INC. | |
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(Registrant) |
(Registrant) | |
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/s/ James A. Ajello |
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/s/ Tayne S. Y. Sekimura |
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James A. Ajello |
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Tayne S. Y. Sekimura |
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Executive Vice President, |
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Senior Vice President and |
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Chief Financial Officer and Treasurer |
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Chief Financial Officer |
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(Principal Financial Officer of HEI) |
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(Principal Financial Officer of HECO) |
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Date: February 15, 2013 |
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Date: February 15, 2013 |
HEI Exhibit 99
February 15, 2013
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Contact: |
Shelee M.T. Kimura |
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Manager, Investor Relations & |
Telephone: (808) 543-7384 |
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Strategic Planning |
E-mail: skimura@hei.com |
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HAWAIIAN ELECTRIC INDUSTRIES REPORTS 2012 YEAR-END & FOURTH QUARTER EARNINGS; WEBCAST TO INCLUDE EPS GUIDANCE
2012 Net Income of $139 Million Flat Compared to 2011
Hawaiian Electric Company Invests Over $300 Million in Local Infrastructure
American Savings Bank Extends Over $1.7 Billion in Loans and Refinancings
HONOLULU – Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported year-end GAAP earnings of $138.7 million, flat with $138.2 million in 2011. Diluted earnings per share (EPS) were $1.42 for 2012, slightly down compared to $1.44 for 2011. For the fourth quarter of 2012, reported earnings were $13.8 million or $0.14 EPS, compared to $34.2 million or $0.36 EPS for the same quarter last year. 2012 and fourth quarter earnings include a $24 million after-tax write-down related to the settlement agreement between Hawaiian Electric Company1 and the Hawaii Consumer Advocate, which is subject to approval by the Hawaii Public Utilities Commission.
“HEI’s 2012 earnings reflect Hawaiian Electric Company’s agreement with the Consumer Advocate which included a significant write-off of invested capital. If approved, the agreement will resolve many pending issues, allowing our utilities to continue their focus on reducing Hawaii’s dependence on expensive oil,” said Constance H. Lau, HEI president and chief executive officer.
“American Savings Bank (American) continued to deliver stable and predictable results, contributing roughly 40% to consolidated HEI earnings in 2012. Steady loan growth was supported by more than $1.7 billion in new credit and refinancings provided to customers. Strong capital ratios enabled American to pay 2012 dividends to HEI totaling $45 million, an important source of funding as HEI continues to invest in its Hawaii based businesses,” added Lau.
“In 2012, Hawaiian Electric Company invested in local infrastructure totaling over $300 million, more than three times its earnings. These investments are critical to modernize the electric grid to operate more reliably while integrating more clean energy for our customers and our state.
1 “Hawaiian Electric Company” or “utility”, unless otherwise defined, refers to the three utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc.
Hawaiian Electric Industries, Inc. News Release
February 15, 2013
In 2012, we achieved 13% of sales from renewable energy and are on track to exceed the 15% renewable portfolio standard by 2015,” said Lau.
Excluding the write-down of regulatory assets, core earnings2 for 2012 were $163.1 million or $1.68 EPS, compared to $143.9 million or $1.50 EPS in 2011. For the fourth quarter, core earnings were $38.3 million or $0.39 EPS compared to $39.9 million or $0.42 EPS for the same quarter last year.
UTILITY EARNINGS REFLECT CLEAN ENERGY AND RELIABILITY INVESTMENTS
Full Year Results:
Reported earnings from the utility of $99.3 million in 2012 were essentially flat with $100.0 million in 2011. Core earnings were $123.7 million in 2012 compared to $105.7 million in 2011. The main driver of the $18 million core earnings improvement from the prior year was a full year recovery of costs in 2012 for reliability and clean energy investments on Oahu compared to a partial year recovery of costs in 2011.
Operations and maintenance (O&M) expenses3 (pretax) were $15 million or approximately 4% higher compared to the prior year. The increases were primarily due to higher customer service expenses, reserves for environmental costs and higher power plant overhaul costs.
Fourth Quarter Results:
Reported earnings from the utility for the fourth quarter of 2012 were $4.2 million compared to $25.8 million in 2011. Core earnings were $28.7 million in the fourth quarter of 2012 compared to $31.5 million in the fourth quarter of 2011. The $3 million core earnings decline from the prior year quarter was primarily due to higher O&M expenses, largely offset by the recovery of costs for clean energy and reliability investments, primarily related to our Oahu and Maui utilities.
O&M expenses3 (pretax) were $14 million or 15% higher as expected in the fourth quarter of 2012 compared to the fourth quarter of 2011 largely due to higher customer service expenses and the timing of 2011 expenses weighted more to the first three quarters of the year.
2 Non-GAAP measure which excludes the fourth quarter after-tax partial write-off of certain utility regulatory assets of $24.4 million in 2012 and $5.7 million in 2011. See “Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures” and attached tables for GAAP to Non-GAAP reconciliations.
3 Excludes demand side management (DSM) program costs. DSM program costs were $6 million and $4 million for the full year in 2012 and 2011, respectively, and $2 million and $1 million in the fourth quarter of 2012 and 2011, respectively. DSM program costs are recovered through a surcharge.
Hawaiian Electric Industries, Inc. News Release
February 15, 2013
AMERICAN SAVINGS BANK: SOLID PERFORMANCE AND LOAN GROWTH
Full Year Results:
American’s net income for 2012 was $58.6 million compared to $59.8 million in 2011 reflecting the challenging low interest rate environment. The primary drivers impacting net income for the year were (on an after-tax basis): $4 million lower net interest income and $5 million higher noninterest expense largely offset by $6 million higher gains on sales of new residential mortgages and $1 million lower provision for loan losses.
Overall, American’s return on average equity for the full year remained solid at 11.7% in 2012 compared to 12.0% in 2011 and the return on average assets was 1.18% in 2012 compared to 1.23% in 2011.
Fourth Quarter Results:
Fourth quarter 2012 net income of $14.4 million was essentially flat with the linked quarter of $14.2 million as higher noninterest income, driven mainly by higher gains on sales of newly originated residential mortgages, was offset by higher noninterest expense and lower net interest income.
Compared to the same quarter of 2011, net income declined by $1.0 million primarily driven by (on an after-tax basis): $2 million lower net interest income and $3 million higher noninterest expense which were largely offset by $4 million higher noninterest income primarily due to higher gains on sale of new residential mortgages and higher fee income.
American’s fourth quarter 2012 return on average equity was 11.3%, up slightly from 11.2% in the linked quarter but down from 12.2% in the same quarter last year. Return on average assets was 1.15% for the fourth quarter of 2012, unchanged from the linked quarter and down from 1.26% in the same quarter last year.
Also refer to the American news release issued on January 30, 2013.
Hawaiian Electric Industries, Inc. News Release
February 15, 2013
HOLDING AND OTHER COMPANIES
The holding and other companies’ net losses were $19.3 million in 2012 compared to $21.6 million in 2011. The lower net loss in 2012 was primarily driven by lower interest expense. Fourth quarter net losses were $4.8 million in 2012 compared to $6.9 million in the fourth quarter 2011 primarily due to HEI funding the HEI Charitable Foundation in the fourth quarter of 2011.
WEBCAST AND CONFERENCE CALL
HEI TO ANNOUNCE 2013 EPS GUIDANCE IN EARNINGS CONFERENCE CALL
Hawaiian Electric Industries, Inc. will conduct a webcast and conference call to review its 2012 earnings on Friday, February 15, 2013, at 12:00 noon Hawaii time (5:00 p.m. Eastern time). HEI will announce 2013 EPS guidance during the scheduled webcast and conference call.
The event can be accessed through HEI’s website at www.hei.com or by dialing (866) 202-3048 and entering passcode: 97355196 for the teleconference call. The presentation for the webcast will be on HEI’s website under the headings “Investor Relations,” “News & Events” and “Presentations & Webcasts.” HEI and Hawaiian Electric Company, Inc. (HECO) intend to continue to use HEI’s website, www.hei.com, as a means of disclosing additional information. Such disclosures will be included on HEI’s website in the Investor Relations section. Accordingly, investors should routinely monitor such portions of HEI’s website, in addition to following HEI’s, HECO’s and American’s press releases, HEI’s and HECO’s Securities and Exchange Commission (SEC) filings and HEI’s public conference calls and webcasts. The information on HEI’s website is not incorporated by reference in this document or in HEI’s and HECO’s SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms in order to review documents filed with and issued by the PUC. No information on the PUC website is incorporated by reference in this document or in HEI’s and HECO’s SEC filings.
An online replay of the webcast will be available at the same website beginning about two hours after the event and will remain on HEI’s website for 12 months. Replays of the conference call will also be available approximately two hours after the event through March 1, 2013, by dialing (888) 286-8010, passcode: 47992097.
HEI supplies power to approximately 450,000 customers or 95% of Hawaii’s population through its electric utilities, HECO, Hawaii Electric Light Company, Inc. and Maui Electric
Hawaiian Electric Industries, Inc. News Release
February 15, 2013
Company, Limited and provides a wide array of banking and other financial services to consumers and businesses through American, one of Hawaii’s largest financial institutions.
EXPLANATION OF HEI’S USE OF CERTAIN UNAUDITED NON-GAAP MEASURES
HEI and HECO management use certain non-GAAP measures such as core earnings and adjusted return on average common equity (ROE) to evaluate the performance of the utility. Management believes these non-GAAP measures provide useful information and are a better indicator of the utility’s core operating activities. Core earnings as presented here may not be comparable to similarly titled measures used by other companies. The tables at the end of this news release provide a reconciliation of reported GAAP earnings to non-GAAP core earnings for both the utility and HEI consolidated and the corresponding adjustments to common equity for purposes of calculating adjusted ROE.
The reconciling adjustments from GAAP earnings to core earnings are the recorded after-tax charges of $24.4 million and $5.7 million in the fourth quarter of 2012 and 2011, respectively, related to settlement charges for the partial write-off of utility regulatory assets in 2012 and 2011. The 2012 charges are not yet approved by the PUC. For more information on the settlement charge recorded in 2012, see the Form 8-K filed on January 29, 2013. Management does not consider these items to be representative of the company’s fundamental core earnings.
FORWARD-LOOKING STATEMENTS
This release may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this release should be read in conjunction with the “Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31,
Hawaiian Electric Industries, Inc. News Release
February 15, 2013
2011, Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 and HEI’s future periodic reports that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, HECO, American and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
###
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
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Three months ended |
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Years ended |
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December 31, |
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December 31, |
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(in thousands, except per share amounts) |
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2012 |
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2011 |
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2012 |
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2011 |
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Revenues |
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Electric utility |
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$ |
769,182 |
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$ |
784,363 |
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$ |
3,109,439 |
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$ |
2,978,690 |
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Bank |
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68,970 |
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66,676 |
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265,539 |
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264,407 |
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Other |
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(5 |
) |
(11 |
) |
17 |
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(762 |
) | ||||
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Total revenues |
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838,147 |
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851,028 |
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3,374,995 |
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3,242,335 |
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Expenses |
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Electric utility |
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749,739 |
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731,911 |
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2,896,427 |
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2,763,556 |
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Bank |
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46,945 |
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43,818 |
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177,106 |
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172,806 |
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Other |
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4,191 |
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7,129 |
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17,266 |
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16,277 |
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Total expenses |
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800,875 |
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782,858 |
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3,090,799 |
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2,952,639 |
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Operating income (loss) |
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|
|
|
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Electric utility |
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19,443 |
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52,452 |
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213,012 |
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215,134 |
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Bank |
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22,025 |
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22,858 |
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88,433 |
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91,601 |
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Other |
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(4,196 |
) |
(7,140 |
) |
(17,249 |
) |
(17,039 |
) | ||||
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Total operating income |
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37,272 |
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68,170 |
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284,196 |
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289,696 |
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Interest expense–other than on deposit liabilities and other bank borrowings |
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(19,393 |
) |
(17,840 |
) |
(78,151 |
) |
(82,106 |
) | ||||
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Allowance for borrowed funds used during construction |
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1,904 |
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767 |
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4,355 |
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2,498 |
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Allowance for equity funds used during construction |
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1,459 |
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1,833 |
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7,007 |
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5,964 |
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Income before income taxes |
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21,242 |
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52,930 |
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217,407 |
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216,052 |
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Income taxes |
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6,933 |
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18,232 |
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76,859 |
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75,932 |
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Net income |
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14,309 |
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34,698 |
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140,548 |
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140,120 |
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Preferred stock dividends of subsidiaries |
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473 |
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473 |
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1,890 |
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1,890 |
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Net income for common stock |
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$ |
13,836 |
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$ |
34,225 |
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$ |
138,658 |
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$ |
138,230 |
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Basic earnings per common share |
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$ |
0.14 |
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$ |
0.36 |
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$ |
1.43 |
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$ |
1.45 |
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Diluted earnings per common share |
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$ |
0.14 |
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$ |
0.36 |
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$ |
1.42 |
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$ |
1.44 |
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Dividends per common share |
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$ |
0.31 |
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$ |
0.31 |
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$ |
1.24 |
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$ |
1.24 |
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Weighted-average number of common shares outstanding |
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97,602 |
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95,939 |
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96,908 |
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95,510 |
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Adjusted weighted-average shares |
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97,970 |
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96,199 |
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97,338 |
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95,820 |
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Net income (loss) for common stock by segment |
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Electric utility |
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$ |
4,225 |
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$ |
25,814 |
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$ |
99,276 |
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$ |
99,986 |
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Bank |
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14,363 |
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15,340 |
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58,637 |
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59,843 |
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Other |
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(4,752 |
) |
(6,929 |
) |
(19,255 |
) |
(21,599 |
) | ||||
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Net income for common stock |
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$ |
13,836 |
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$ |
34,225 |
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$ |
138,658 |
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$ |
138,230 |
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Comprehensive income attributable to common shareholders |
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$ |
3,103 |
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$ |
21,750 |
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$ |
131,372 |
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$ |
131,565 |
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Return on average common equity |
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8.9% |
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9.2% |
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This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2012 (when filed) and HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, as updated by SEC Forms 8-K.
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
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December 31 |
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2012 |
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2011 |
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(dollars in thousands) |
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Assets |
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Cash and cash equivalents |
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$ |
219,662 |
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$ |
270,265 |
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Accounts receivable and unbilled revenues, net |
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362,823 |
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344,322 |
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Available-for-sale investment and mortgage-related securities |
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671,358 |
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624,331 |
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Investment in stock of Federal Home Loan Bank of Seattle |
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96,022 |
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97,764 |
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Loans receivable held for investment, net |
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3,737,233 |
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3,642,818 |
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Loans held for sale, at lower of cost or fair value |
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26,005 |
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9,601 |
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Property, plant and equipment, net of accumulated depreciation of $2,125,286 in 2012 and $2,049,821 in 2011 |
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3,594,829 |
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3,334,501 |
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Regulatory assets |
|
864,596 |
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669,389 |
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Other |
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494,414 |
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519,296 |
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Goodwill |
|
82,190 |
|
82,190 |
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Total assets |
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$ |
10,149,132 |
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$ |
9,594,477 |
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Liabilities and shareholders’ equity |
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|
|
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Liabilities |
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|
|
|
| ||
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Accounts payable |
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$ |
212,379 |
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$ |
216,176 |
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|
Interest and dividends payable |
|
26,258 |
|
25,041 |
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Deposit liabilities |
|
4,229,916 |
|
4,070,032 |
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Short-term borrowings—other than bank |
|
83,693 |
|
68,821 |
| ||
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Other bank borrowings |
|
195,926 |
|
233,229 |
| ||
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Long-term debt, net—other than bank |
|
1,422,872 |
|
1,340,070 |
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Deferred income taxes |
|
439,329 |
|
354,051 |
| ||
|
Regulatory liabilities |
|
322,074 |
|
315,466 |
| ||
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Contributions in aid of construction |
|
405,520 |
|
356,203 |
| ||
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Retirement benefits liability |
|
656,394 |
|
530,407 |
| ||
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Other |
|
526,613 |
|
521,982 |
| ||
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Total liabilities |
|
8,520,974 |
|
8,031,478 |
| ||
|
|
|
|
|
|
| ||
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Preferred stock of subsidiaries - not subject to mandatory redemption |
|
34,293 |
|
34,293 |
| ||
|
|
|
|
|
|
| ||
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Shareholders’ equity |
|
|
|
|
| ||
|
Preferred stock, no par value, authorized 10,000,000 shares; issued: none |
|
- |
|
- |
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|
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 97,928,403 shares in 2012 and 96,038,328 shares in 2011 |
|
1,403,484 |
|
1,349,446 |
| ||
|
Retained earnings |
|
216,804 |
|
198,397 |
| ||
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Accumulated other comprehensive loss, net of tax benefits |
|
(26,423 |
) |
(19,137 |
) | ||
|
Total shareholders’ equity |
|
1,593,865 |
|
1,528,706 |
| ||
|
Total liabilities and shareholders’ equity |
|
$ |
10,149,132 |
|
$ |
9,594,477 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2012 (when filed) and HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, as updated by SEC Forms 8-K.
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
Years ended December 31 |
|
2012 |
|
2011 |
| ||
|
(in thousands) |
|
|
|
|
| ||
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Cash flows from operating activities |
|
|
|
|
| ||
|
Net income |
|
$ |
140,548 |
|
$ |
140,120 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
| ||
|
Depreciation of property, plant and equipment |
|
150,389 |
|
148,152 |
| ||
|
Other amortization |
|
7,958 |
|
19,318 |
| ||
|
Provision for loan losses |
|
12,883 |
|
15,009 |
| ||
|
Impairment of utility assets |
|
40,000 |
|
9,215 |
| ||
|
Loans receivable originated and purchased, held for sale |
|
(519,622) |
|
(267,656) |
| ||
|
Proceeds from sale of loans receivable, held for sale |
|
513,000 |
|
273,932 |
| ||
|
Change in deferred income taxes |
|
90,848 |
|
79,444 |
| ||
|
Change in excess tax benefits from share-based payment arrangements |
|
(61) |
|
35 |
| ||
|
Allowance for equity funds used during construction |
|
(7,007) |
|
(5,964) |
| ||
|
Change in cash overdraft |
|
- |
|
(2,688) |
| ||
|
Changes in assets and liabilities |
|
|
|
|
| ||
|
Increase in accounts receivable and unbilled revenues, net |
|
(18,501) |
|
(77,326) |
| ||
|
Decrease (increase) in fuel oil stock |
|
10,129 |
|
(18,843) |
| ||
|
Increase in regulatory assets |
|
(72,401) |
|
(40,132) |
| ||
|
Decrease in accounts, interest and dividends payable |
|
(39,738) |
|
(34,480) |
| ||
|
Change in prepaid and accrued income taxes and utility revenue taxes |
|
21,079 |
|
73,153 |
| ||
|
Contributions to defined benefit pension and other postretirement benefit plans |
|
(77,703) |
|
(74,961) |
| ||
|
Change in other assets and liabilities |
|
(17,259) |
|
14,038 |
| ||
|
Net cash provided by operating activities |
|
234,542 |
|
250,366 |
| ||
|
Cash flows from investing activities |
|
|
|
|
| ||
|
Available-for-sale investment and mortgage-related securities purchased |
|
(243,633) |
|
(361,876) |
| ||
|
Principal repayments on available-for-sale investment and mortgage-related securities |
|
191,253 |
|
389,906 |
| ||
|
Proceeds from sale of available-for-sale investment and mortgage-related securities |
|
3,548 |
|
32,799 |
| ||
|
Net increase in loans held for investment |
|
(112,730) |
|
(181,080) |
| ||
|
Proceeds from sale of real estate acquired in settlement of loans |
|
11,336 |
|
8,020 |
| ||
|
Capital expenditures |
|
(325,480) |
|
(235,116) |
| ||
|
Contributions in aid of construction |
|
45,982 |
|
23,534 |
| ||
|
Other |
|
2,677 |
|
(2,974) |
| ||
|
Net cash used in investing activities |
|
(427,047) |
|
(326,787) |
| ||
|
Cash flows from financing activities |
|
|
|
|
| ||
|
Net increase in deposit liabilities |
|
159,884 |
|
94,660 |
| ||
|
Net increase in short-term borrowings with original maturities of three months or less |
|
14,872 |
|
43,898 |
| ||
|
Net increase (decrease) in retail repurchase agreements |
|
(37,291) |
|
10,910 |
| ||
|
Proceeds from other bank borrowings |
|
5,000 |
|
- |
| ||
|
Repayments of other bank borrowings |
|
(5,000) |
|
(15,000) |
| ||
|
Proceeds from issuance of long-term debt |
|
457,000 |
|
125,000 |
| ||
|
Repayment of long-term debt |
|
(375,500) |
|
(150,000) |
| ||
|
Change in excess tax benefits from share-based payment arrangements |
|
61 |
|
(35) |
| ||
|
Net proceeds from issuance of common stock |
|
23,613 |
|
15,979 |
| ||
|
Common stock dividends |
|
(96,202) |
|
(106,812) |
| ||
|
Preferred stock dividends of subsidiaries |
|
(1,890) |
|
(1,890) |
| ||
|
Other |
|
(2,645) |
|
(675) |
| ||
|
Net cash provided by financing activities |
|
141,902 |
|
16,035 |
| ||
|
Net decrease in cash and cash equivalents |
|
(50,603) |
|
(60,386) |
| ||
|
Cash and cash equivalents, January 1 |
|
270,265 |
|
330,651 |
| ||
|
Cash and cash equivalents, December 31 |
|
$ |
219,662 |
|
$ |
270,265 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2012 (when filed) and HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, as updated by SEC Forms 8-K.
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited) |
|
Three months ended |
|
Years ended |
| |||||||||
|
|
|
December 31, |
|
December 31, |
| |||||||||
|
(dollars in thousands, except per barrel amounts) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
| |||||
|
Operating revenues |
|
$ |
767,172 |
|
$ |
782,904 |
|
$ |
3,101,998 |
|
$ |
2,973,764 |
| |
|
Operating expenses |
|
|
|
|
|
|
|
|
| |||||
|
Fuel oil |
|
311,343 |
|
339,650 |
|
1,297,419 |
|
1,265,126 |
| |||||
|
Purchased power |
|
184,400 |
|
181,473 |
|
724,240 |
|
689,652 |
| |||||
|
Other operation |
|
75,311 |
|
62,731 |
|
272,117 |
|
257,065 |
| |||||
|
Maintenance |
|
30,671 |
|
28,411 |
|
122,312 |
|
121,219 |
| |||||
|
Depreciation |
|
35,942 |
|
35,302 |
|
144,498 |
|
142,975 |
| |||||
|
Taxes, other than income taxes |
|
70,692 |
|
74,002 |
|
292,841 |
|
276,504 |
| |||||
|
Income taxes |
|
18,303 |
|
19,358 |
|
76,594 |
|
65,988 |
| |||||
|
Total operating expenses |
|
726,662 |
|
740,927 |
|
2,930,021 |
|
2,818,529 |
| |||||
|
Operating income |
|
40,510 |
|
41,977 |
|
171,977 |
|
155,235 |
| |||||
|
Other income (deductions) |
|
|
|
|
|
|
|
|
| |||||
|
Allowance for equity funds used during construction |
|
1,459 |
|
1,833 |
|
7,007 |
|
5,964 |
| |||||
|
Impairment of assets |
|
(40,000 |
) |
(9,215) |
|
(40,000 |
) |
(9,215 |
) | |||||
|
Other, net |
|
630 |
|
332 |
|
4,441 |
|
3,126 |
| |||||
|
Income tax benefits |
|
15,684 |
|
4,220 |
|
15,546 |
|
4,404 |
| |||||
|
Total other income (deductions) |
|
(22,227 |
) |
(2,830) |
|
(13,006 |
) |
4,279 |
| |||||
|
Interest and other charges |
|
|
|
|
|
|
|
|
| |||||
|
Interest on long-term debt |
|
14,614 |
|
14,383 |
|
59,014 |
|
57,532 |
| |||||
|
Amortization of net bond premium and expense |
|
629 |
|
765 |
|
2,905 |
|
3,081 |
| |||||
|
Other interest charges (credits) |
|
220 |
|
(1,547) |
|
136 |
|
(582 |
) | |||||
|
Allowance for borrowed funds used during construction |
|
(1,904 |
) |
(767) |
|
(4,355 |
) |
(2,498 |
) | |||||
|
Total interest and other charges |
|
13,559 |
|
12,834 |
|
57,700 |
|
57,533 |
| |||||
|
Net income |
|
4,724 |
|
26,313 |
|
101,271 |
|
101,981 |
| |||||
|
Preferred stock dividends of subsidiaries |
|
229 |
|
229 |
|
915 |
|
915 |
| |||||
|
Net income attributable to HECO |
|
4,495 |
|
26,084 |
|
100,356 |
|
101,066 |
| |||||
|
Preferred stock dividends of HECO |
|
270 |
|
270 |
|
1,080 |
|
1,080 |
| |||||
|
Net income for common stock |
|
$ |
4,225 |
|
$ |
25,814 |
|
$ |
99,276 |
|
$ |
99,986 |
| |
|
Comprehensive income attributable to common shareholder |
|
$ |
3,058 |
|
$ |
24,877 |
|
$ |
98,338 |
|
$ |
99,245 |
| |
|
OTHER ELECTRIC UTILITY INFORMATION |
|
|
|
|
|
|
|
|
| |||||
|
Kilowatthour sales (millions) |
|
|
|
|
|
|
|
|
| |||||
|
HECO |
|
1,771 |
|
1,799 |
|
6,976 |
|
7,242 |
| |||||
|
HELCO |
|
275 |
|
276 |
|
1,085 |
|
1,104 |
| |||||
|
MECO |
|
290 |
|
293 |
|
1,145 |
|
1,181 |
| |||||
|
|
|
2,336 |
|
2,368 |
|
9,206 |
|
9,527 |
| |||||
|
Wet-bulb temperature (Oahu average; degrees Fahrenheit) |
|
69.4 |
|
70.0 |
|
68.9 |
|
70.0 |
| |||||
|
Cooling degree days (Oahu) |
|
1,102 |
|
1,273 |
|
4,532 |
|
4,954 |
| |||||
|
Average fuel oil cost per barrel |
|
$133.37 |
|
$134.28 |
|
$138.09 |
|
$123.63 |
| |||||
|
Return on average common equity (%) (simple average) |
|
|
|
|
|
|
|
|
| |||||
|
HECO |
|
|
|
|
|
7.57 |
|
6.43 |
| |||||
|
HELCO |
|
|
|
|
|
5.90 |
|
9.68 |
| |||||
|
MECO |
|
|
|
|
|
5.44 |
|
7.73 |
| |||||
|
HECO Consolidated |
|
|
|
|
|
6.91 |
|
7.31 |
| |||||
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2012 (when filed) and the consolidated financial statements and the notes thereto in HECO’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, as updated by SEC Forms 8-K.
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
December 31 |
|
2012 |
|
2011 |
| ||
|
(dollars in thousands, except par value) |
|
|
|
|
| ||
|
Assets |
|
|
|
|
| ||
|
Utility plant, at cost |
|
|
|
|
| ||
|
Land |
|
$ |
51,568 |
|
$ |
51,514 |
|
|
Plant and equipment |
|
5,364,400 |
|
5,052,027 |
| ||
|
Less accumulated depreciation |
|
(2,040,789 |
) |
(1,966,894 |
) | ||
|
Construction in progress |
|
151,378 |
|
138,838 |
| ||
|
Net utility plant |
|
3,526,557 |
|
3,275,485 |
| ||
|
Current assets |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
17,159 |
|
48,806 |
| ||
|
Customer accounts receivable, net |
|
210,779 |
|
183,328 |
| ||
|
Accrued unbilled revenues, net |
|
134,298 |
|
137,826 |
| ||
|
Other accounts receivable, net |
|
28,176 |
|
8,623 |
| ||
|
Fuel oil stock, at average cost |
|
161,419 |
|
171,548 |
| ||
|
Materials and supplies, at average cost |
|
51,085 |
|
43,188 |
| ||
|
Prepayments and other |
|
32,865 |
|
36,667 |
| ||
|
Regulatory assets |
|
51,267 |
|
20,283 |
| ||
|
Total current assets |
|
687,048 |
|
650,269 |
| ||
|
Other long-term assets |
|
|
|
|
| ||
|
Regulatory assets |
|
813,329 |
|
649,106 |
| ||
|
Unamortized debt expense |
|
10,554 |
|
12,786 |
| ||
|
Other |
|
71,305 |
|
86,361 |
| ||
|
Total other long-term assets |
|
895,188 |
|
748,253 |
| ||
|
Total assets |
|
$ |
5,108,793 |
|
$ |
4,674,007 |
|
|
Capitalization and liabilities |
|
|
|
|
| ||
|
Capitalization |
|
|
|
|
| ||
|
Common stock, $6 2/3 par value, authorized 50,000,000 shares; outstanding 14,665,264 in 2012 and 14,233,723 shares in 2011 |
|
$ |
97,788 |
|
$ |
94,911 |
|
|
Premium on capital stock |
|
468,045 |
|
426,921 |
| ||
|
Retained earnings |
|
907,273 |
|
881,041 |
| ||
|
Accumulated other comprehensive loss, net of tax benefits |
|
(970 |
) |
(32 |
) | ||
|
Common stock equity |
|
1,472,136 |
|
1,402,841 |
| ||
|
Cumulative preferred stock – not subject to mandatory redemption |
|
34,293 |
|
34,293 |
| ||
|
Long-term debt, net |
|
1,147,872 |
|
1,000,570 |
| ||
|
Total capitalization |
|
2,654,301 |
|
2,437,704 |
| ||
|
Current liabilities |
|
|
|
|
| ||
|
Current portion of long-term debt |
|
- |
|
57,500 |
| ||
|
Accounts payable |
|
186,824 |
|
188,580 |
| ||
|
Interest and preferred dividends payable |
|
21,092 |
|
19,483 |
| ||
|
Taxes accrued |
|
251,066 |
|
230,076 |
| ||
|
Other |
|
62,879 |
|
69,353 |
| ||
|
Total current liabilities |
|
521,861 |
|
564,992 |
| ||
|
Deferred credits and other liabilities |
|
|
|
|
| ||
|
Deferred income taxes |
|
417,611 |
|
337,863 |
| ||
|
Regulatory liabilities |
|
322,074 |
|
315,466 |
| ||
|
Unamortized tax credits |
|
66,584 |
|
60,614 |
| ||
|
Retirement benefits liability |
|
620,205 |
|
494,753 |
| ||
|
Other |
|
100,637 |
|
106,412 |
| ||
|
Total deferred credits and other liabilities |
|
1,527,111 |
|
1,315,108 |
| ||
|
Contributions in aid of construction |
|
405,520 |
|
356,203 |
| ||
|
Total capitalization and liabilities |
|
$ |
5,108,793 |
|
$ |
4,674,007 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2012 (when filed) and the consolidated financial statements and the notes thereto in HECO’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, as updated by SEC Forms 8-K.
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
Years ended December 31 |
|
2012 |
|
2011 |
| ||
|
(in thousands) |
|
|
|
|
| ||
|
Cash flows from operating activities |
|
|
|
|
| ||
|
Net income |
|
$ |
101,271 |
|
$ |
101,981 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
| ||
|
Depreciation of property, plant and equipment |
|
144,498 |
|
142,975 |
| ||
|
Other amortization |
|
6,998 |
|
17,378 |
| ||
|
Impairment of assets |
|
40,000 |
|
9,215 |
| ||
|
Change in deferred income taxes |
|
86,878 |
|
69,091 |
| ||
|
Change in tax credits, net |
|
6,075 |
|
2,087 |
| ||
|
Allowance for equity funds used during construction |
|
(7,007 |
) |
(5,964 |
) | ||
|
Change in cash overdraft |
|
- |
|
(2,688 |
) | ||
|
Changes in assets and liabilities |
|
|
|
|
| ||
|
Increase in accounts receivable |
|
(47,004 |
) |
(44,404 |
) | ||
|
Decrease (increase) in accrued unbilled revenues |
|
3,528 |
|
(33,442 |
) | ||
|
Decrease (increase) in fuel oil stock |
|
10,129 |
|
(18,843 |
) | ||
|
Increase in materials and supplies |
|
(7,897 |
) |
(6,471 |
) | ||
|
Increase in regulatory assets |
|
(72,401 |
) |
(40,132 |
) | ||
|
Decrease in accounts payable |
|
(38,913 |
) |
(35,815 |
) | ||
|
Change in prepaid and accrued income taxes and utility revenue taxes |
|
25,239 |
|
69,736 |
| ||
|
Contributions to defined benefit pension and other postretirement benefit plans |
|
(63,075 |
) |
(73,176 |
) | ||
|
Change in other assets and liabilities |
|
(11,088 |
) |
9,866 |
| ||
|
Net cash provided by operating activities |
|
177,231 |
|
161,394 |
| ||
|
Cash flows from investing activities |
|
|
|
|
| ||
|
Capital expenditures |
|
(310,091 |
) |
(226,022 |
) | ||
|
Contributions in aid of construction |
|
45,982 |
|
23,534 |
| ||
|
Other |
|
- |
|
77 |
| ||
|
Net cash used in investing activities |
|
(264,109 |
) |
(202,411 |
) | ||
|
Cash flows from financing activities |
|
|
|
|
| ||
|
Common stock dividends |
|
(73,044 |
) |
(70,558 |
) | ||
|
Preferred stock dividends of HECO and subsidiaries |
|
(1,995 |
) |
(1,995 |
) | ||
|
Proceeds from issuance of common stock |
|
44,000 |
|
40,000 |
| ||
|
Proceeds from issuance of long-term debt |
|
457,000 |
|
- |
| ||
|
Repayment of long-term debt |
|
(368,500 |
) |
- |
| ||
|
Other |
|
(2,230 |
) |
(560 |
) | ||
|
Net cash provided by (used in) financing activities |
|
55,231 |
|
(33,113 |
) | ||
|
Net decrease in cash and cash equivalents |
|
(31,647 |
) |
(74,130 |
) | ||
|
Cash and cash equivalents, January 1 |
|
48,806 |
|
122,936 |
| ||
|
Cash and cash equivalents, December 31 |
|
$ |
17,159 |
|
$ |
48,806 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HECO’s Annual Report on SEC Form 10-K for the year ended December 31, 2012 (when filed) and the consolidated financial statements and the notes thereto in HECO’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, as updated by SEC Forms 8-K.
American Savings Bank, F.S.B.
STATEMENTS OF INCOME DATA
|
(Unaudited) |
|
Three months ended |
|
Years ended | |||||||||||||
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
December 31, | ||||||||
|
(in thousands) |
|
2012 |
|
2012 |
|
2011 |
|
|
2012 |
|
2011 |
| |||||
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Interest and fees on loans |
|
$ |
42,816 |
|
$ |
43,880 |
|
$ |
46,500 |
|
|
$ |
176,057 |
|
$ |
184,485 |
|
|
Interest on investment and mortgage-related securities |
3,288 |
|
3,432 |
|
3,352 |
|
|
13,822 |
|
14,568 |
| ||||||
|
Total interest income |
|
46,104 |
|
47,312 |
|
49,852 |
|
|
189,879 |
|
199,053 |
| |||||
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Interest on deposit liabilities |
|
1,408 |
|
1,540 |
|
1,837 |
|
|
6,423 |
|
8,983 |
| |||||
|
Interest on other borrowings |
|
1,193 |
|
1,201 |
|
1,362 |
|
|
4,869 |
|
5,486 |
| |||||
|
Total interest expense |
|
2,601 |
|
2,741 |
|
3,199 |
|
|
11,292 |
|
14,469 |
| |||||
|
Net interest income |
|
43,503 |
|
44,571 |
|
46,653 |
|
|
178,587 |
|
184,584 |
| |||||
|
Provision for loan losses |
|
3,379 |
|
3,580 |
|
4,082 |
|
|
12,883 |
|
15,009 |
| |||||
|
Net interest income after provision for loan losses |
40,124 |
|
40,991 |
|
42,571 |
|
|
165,704 |
|
169,575 |
| ||||||
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Fees from other financial services |
|
8,887 |
|
7,674 |
|
7,476 |
|
|
31,361 |
|
28,881 |
| |||||
|
Fee income on deposit liabilities |
|
4,648 |
|
4,527 |
|
4,486 |
|
|
17,775 |
|
18,026 |
| |||||
|
Fee income on other financial products |
|
1,836 |
|
1,660 |
|
1,364 |
|
|
6,577 |
|
6,704 |
| |||||
|
Gain on sale of loans |
|
6,331 |
|
4,077 |
|
2,760 |
|
|
14,628 |
|
5,028 |
| |||||
|
Other income |
|
1,164 |
|
1,346 |
|
738 |
|
|
5,319 |
|
6,715 |
| |||||
|
Total noninterest income |
|
22,866 |
|
19,284 |
|
16,824 |
|
|
75,660 |
|
65,354 |
| |||||
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Compensation and employee benefits |
|
19,953 |
|
18,684 |
|
17,820 |
|
|
75,979 |
|
71,137 |
| |||||
|
Occupancy |
|
4,313 |
|
4,400 |
|
4,313 |
|
|
17,179 |
|
17,154 |
| |||||
|
Data processing |
|
2,854 |
|
2,644 |
|
1,676 |
|
|
10,098 |
|
8,155 |
| |||||
|
Services |
|
2,800 |
|
3,062 |
|
1,990 |
|
|
9,866 |
|
7,396 |
| |||||
|
Equipment |
|
1,806 |
|
1,762 |
|
1,762 |
|
|
7,105 |
|
6,903 |
| |||||
|
Other expense |
|
9,207 |
|
8,096 |
|
8,997 |
|
|
32,116 |
|
32,648 |
| |||||
|
Total noninterest expense |
|
40,933 |
|
38,648 |
|
36,558 |
|
|
152,343 |
|
143,393 |
| |||||
|
Income before income taxes |
|
22,057 |
|
21,627 |
|
22,837 |
|
|
89,021 |
|
91,536 |
| |||||
|
Income taxes |
|
7,694 |
|
7,419 |
|
7,497 |
|
|
30,384 |
|
31,693 |
| |||||
|
Net income |
|
$ |
14,363 |
|
$ |
14,208 |
|
$ |
15,340 |
|
|
$ |
58,637 |
|
$ |
59,843 |
|
|
Comprehensive income |
|
$ |
5,740 |
|
$ |
15,517 |
|
$ |
7,400 |
|
|
$ |
52,612 |
|
$ |
56,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
OTHER BANK INFORMATION (annualized %, except as of period end) |
|
|
|
|
|
|
|
| |||||||||
|
Return on average assets |
|
1.15 |
|
1.15 |
|
1.26 |
|
|
1.18 |
|
1.23 |
| |||||
|
Return on average equity |
|
11.29 |
|
11.24 |
|
12.24 |
|
|
11.68 |
|
11.99 |
| |||||
|
Return on average tangible common equity |
|
13.47 |
|
13.41 |
|
14.65 |
|
|
13.97 |
|
14.35 |
| |||||
|
Net interest margin |
|
3.81 |
|
3.92 |
|
4.16 |
|
|
3.93 |
|
4.12 |
| |||||
|
Net charge-offs to average loans outstanding |
|
0.13 |
|
0.35 |
|
0.48 |
|
|
0.24 |
|
0.49 |
| |||||
|
Efficiency ratio |
|
61 |
|
60 |
|
57 |
|
|
59 |
|
57 |
| |||||
|
As of period end |
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Nonperforming assets to loans outstanding and real estate owned ** |
|
1.87 |
|
1.73 |
|
2.01 |
|
|
|
|
|
| |||||
|
Allowance for loan losses to loans outstanding |
|
1.11 |
|
1.06 |
|
1.03 |
|
|
|
|
|
| |||||
|
Leverage ratio * |
|
9.1 |
|
9.3 |
|
9.0 |
|
|
|
|
|
| |||||
|
Total risk-based capital ratio * |
|
12.8 |
|
12.9 |
|
12.9 |
|
|
|
|
|
| |||||
|
Tangible common equity to total assets |
|
8.39 |
|
8.72 |
|
8.42 |
|
|
|
|
|
| |||||
|
Dividend paid to HEI (via ASHI) ($ in millions) ** |
|
15 |
|
10 |
|
20 |
|
|
45 |
|
63 |
| |||||
|
* Regulatory basis |
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
** Fourth quarter 2011 includes noncash dividends of $5 million. |
|
|
|
|
|
|
|
| |||||||||
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2012 (when filed) and HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, as updated by SEC Forms 8-K.
American Savings Bank, F.S.B.
BALANCE SHEETS DATA
(Unaudited)
|
December 31 |
|
2012 |
|
2011 |
| ||
|
(in thousands) |
|
|
|
|
| ||
|
Assets |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
184,430 |
|
$ |
219,678 |
|
|
Available-for-sale investment and mortgage-related securities |
|
671,358 |
|
624,331 |
| ||
|
Investment in stock of Federal Home Loan Bank of Seattle |
|
96,022 |
|
97,764 |
| ||
|
Loans receivable held for investment |
|
3,779,218 |
|
3,680,724 |
| ||
|
Allowance for loan losses |
|
(41,985 |
) |
(37,906 |
) | ||
|
Loans receivable held for investment, net |
|
3,737,233 |
|
3,642,818 |
| ||
|
Loans held for sale, at lower of cost or fair value |
|
26,005 |
|
9,601 |
| ||
|
Other |
|
244,435 |
|
233,592 |
| ||
|
Goodwill |
|
82,190 |
|
82,190 |
| ||
|
Total assets |
|
$ |
5,041,673 |
|
$ |
4,909,974 |
|
|
|
|
|
|
|
| ||
|
Liabilities and shareholder’s equity |
|
|
|
|
| ||
|
Deposit liabilities–noninterest-bearing |
|
$ |
1,164,308 |
|
$ |
993,828 |
|
|
Deposit liabilities–interest-bearing |
|
3,065,608 |
|
3,076,204 |
| ||
|
Other borrowings |
|
195,926 |
|
233,229 |
| ||
|
Other |
|
117,752 |
|
118,078 |
| ||
|
Total liabilities |
|
4,543,594 |
|
4,421,339 |
| ||
|
|
|
|
|
|
| ||
|
Common stock |
|
333,712 |
|
331,880 |
| ||
|
Retained earnings |
|
179,763 |
|
166,126 |
| ||
|
Accumulated other comprehensive loss, net of tax benefits |
|
(15,396 |
) |
(9,371 |
) | ||
|
Total shareholder’s equity |
|
498,079 |
|
488,635 |
| ||
|
Total liabilities and shareholder’s equity |
|
$ |
5,041,673 |
|
$ |
4,909,974 |
|
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI’s Annual Report on SEC Form 10-K for the year ended December 31, 2012 (when filed) and HEI’s Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, as updated by SEC Forms 8-K.
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
RECONCILIATION OF GAAP1 TO NON-GAAP MEASURES
(Unaudited)
|
|
|
Net Income |
|
Diluted Earnings Per Share (EPS) |
|
Shareholders’ Equity |
| ||||||||||||||||||||||||
|
|
|
Three months ended |
|
Years ended |
|
Three months ended |
|
Years ended |
|
Years ended |
| ||||||||||||||||||||
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
| ||||||||||||||||||||
|
(in millions, except EPS amounts) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
GAAP (As Reported) |
|
$ |
13.8 |
|
$ |
34.2 |
|
$ |
138.7 |
|
$ |
138.2 |
|
$ |
0.14 |
|
$ |
0.36 |
|
$ |
1.42 |
|
$ |
1.44 |
|
$ |
1,593.9 |
|
$ |
1,528.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Excluding Special Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Settlement agreement, subject to PUC approval, for the partial writedown of certain utility regulated assets |
|
24.4 |
|
- |
|
24.4 |
|
- |
|
0.25 |
|
- |
|
0.25 |
|
- |
|
24.4 |
|
- |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Settlement agreement for the partial writedown of the East Oahu Transmission Project (EOTP) Phase I costs |
|
- |
|
5.7 |
|
- |
|
5.7 |
|
- |
|
0.06 |
|
- |
|
0.06 |
|
- |
|
5.7 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Non-GAAP (Core) |
|
$ |
38.3 |
|
$ |
39.9 |
|
$ |
163.1 |
|
$ |
143.9 |
|
$ |
0.39 |
|
$ |
0.42 |
|
$ |
1.68 |
|
$ |
1.50 |
|
$ |
1,618.3 |
|
$ |
1,534.4 |
|
Note: Columns may not foot due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
| ||
|
Other Measures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Average Shareholders’ Equity (Simple Average): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Based on GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,561.3 |
|
$ |
1,504.6 |
|
|
Non-GAAP (Core) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,576.4 |
|
$ |
1,507.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Return on Average Common Equity (ROE) (Simple Average): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
Based on GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.9% |
|
9.2% |
| ||
|
Non-GAAP (Core) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3% |
|
9.5% |
| ||
1 Generally Accepted Accounting Principles
Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)
|
|
|
Net Income |
|
Common Stock Equity |
| ||||||||||||||
|
|
|
Three months ended |
|
Years ended |
|
Years ended |
| ||||||||||||
|
|
|
December 31, |
|
December 31, |
|
December 31, |
| ||||||||||||
|
(in millions) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
GAAP (As Reported) |
|
$ |
4.2 |
|
$ |
25.8 |
|
$ |
99.3 |
|
$ |
100.0 |
|
$ |
1,472.1 |
|
$ |
1,402.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Excluding Special Items: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Settlement agreement, subject to PUC approval, for the partial writedown of certain utility regulated assets |
|
24.4 |
|
- |
|
24.4 |
|
- |
|
24.4 |
|
- |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Settlement agreement for the partial writedown of the EOTP Phase I costs |
|
- |
|
5.7 |
|
- |
|
5.7 |
|
- |
|
5.7 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Non-GAAP (Core) |
|
$ |
28.7 |
|
$ |
31.5 |
|
$ |
123.7 |
|
$ |
105.7 |
|
$ |
1,496.6 |
|
$ |
1,408.5 |
|
Note: Columns may not foot due to rounding
|
|
|
|
|
|
|
|
|
|
|
Years ended | |||||
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 | |||
|
Other Measures: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Average Common Equity (Simple Average) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Based on GAAP |
|
|
|
|
|
|
|
|
|
$ |
1,437.5 |
|
$ |
1,368.5 |
|
|
Non-GAAP (Core) |
|
|
|
|
|
|
|
|
|
$ |
1,452.6 |
|
$ |
1,371.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Return on Average Common Equity (ROE) (Simple Average): |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Based on GAAP |
|
|
|
|
|
|
|
|
|
6.9% |
|
7.3% |
| ||
|
Non-GAAP (Core) |
|
|
|
|
|
|
|
|
|
8.5% |
|
7.7% |
| ||
|
|
|
Hawaiian Electric Company, Inc. (HECO, Oahu) |
|
Hawaii Electric Light Company, Inc. (HELCO) |
|
Maui Electric Company, Limited (MECO) |
| ||||||||||||||||||||||||||||||
|
|
|
Net Income |
|
Common Stock Equity |
|
Net Income |
|
Common Stock Equity |
|
Net Income |
|
Common Stock Equity |
| ||||||||||||||||||||||||
|
|
|
Years ended |
|
Years ended |
|
Years ended |
|
Years ended |
|
Years ended |
|
Years ended |
| ||||||||||||||||||||||||
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
| ||||||||||||||||||||||||
|
(in millions) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
GAAP (As Reported) |
|
$ |
70.4 |
|
$ |
55.4 |
|
$ |
974.2 |
|
$ |
886.7 |
|
$ |
16.2 |
|
$ |
26.7 |
|
$ |
268.9 |
|
$ |
280.5 |
|
$ |
12.6 |
|
$ |
18.0 |
|
$ |
228.9 |
|
$ |
235.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
Excluding Special Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
Settlement agreement, subject to PUC approval, for the partial writedown of certain utility regulated assets |
|
17.7 |
|
- |
|
17.7 |
|
- |
|
3.4 |
|
- |
|
3.4 |
|
- |
|
3.4 |
|
- |
|
3.4 |
|
- |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
Settlement agreement for the partial writedown of the EOTP Phase I costs |
|
- |
|
5.7 |
|
- |
|
5.7 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
Non-GAAP (Core) |
|
$ |
88.2 |
|
$ |
61.1 |
|
$ |
991.9 |
|
$ |
892.4 |
|
$ |
19.6 |
|
$ |
26.7 |
|
$ |
272.3 |
|
$ |
280.5 |
|
$ |
16.0 |
|
$ |
18.0 |
|
$ |
232.3 |
|
$ |
235.6 |
|
Note: Columns may not foot due to rounding
|
|
|
|
|
|
|
Years ended |
|
|
|
|
|
Years ended |
|
|
|
|
|
Years ended |
| ||||||||||||
|
|
|
|
|
|
|
2012 |
|
2011 |
|
|
|
|
|
2012 |
|
2011 |
|
|
|
|
|
2012 |
|
2011 |
| ||||||
|
Other Measures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Average Common Equity (Simple Average) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Based on GAAP |
|
|
|
|
|
$ |
930.4 |
|
$ |
860.6 |
|
|
|
|
|
$ |
274.7 |
|
$ |
275.2 |
|
|
|
|
|
$ |
232.2 |
|
$ |
232.6 |
|
|
Non-GAAP (Core) |
|
|
|
|
|
$ |
942.2 |
|
$ |
863.4 |
|
|
|
|
|
$ |
276.4 |
|
$ |
275.2 |
|
|
|
|
|
$ |
233.9 |
|
$ |
232.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Return on Average Common Equity (ROE) (Simple Average): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Based on GAAP |
|
|
|
|
|
7.6% |
|
6.4% |
|
|
|
|
|
5.9% |
|
9.7% |
|
|
|
|
|
5.4% |
|
7.7% |
| ||||||
|
Non-GAAP (Core) |
|
|
|
|
|
9.4% |
|
7.1% |
|
|
|
|
|
7.1% |
|
9.7% |
|
|
|
|
|
6.8% |
|
7.7% |
| ||||||