Commission File Number | Registrant; State of Incorporation Address; and Telephone Number | IRS Employer Identification No. |
1-11337 | INTEGRYS ENERGY GROUP, INC. (A Wisconsin Corporation) 200 East Randolph Street (Formerly 130 East Randolph Street) Chicago, IL 60601-6207 (312) 228-5400 | 39-1775292 |
Item 2.02 | Results of Operations and Financial Condition | ||
On May 1, 2014, Integrys Energy Group, Inc. issued a news release reporting its financial results for the quarter ended March 31, 2014. A copy of the news release is filed with this Form 8‑K as Exhibit 99.1 and is incorporated herein by reference. | |||
Integrys Energy Group will hold an earnings conference call on May 2, 2014, to discuss the first quarter 2014 financial performance of Integrys Energy Group and its subsidiaries. For information on how to participate in the conference call, see the news release attached as Exhibit 99.1. | |||
Item 9.01 | Financial Statements and Exhibits. | ||
(a) | Not applicable. | ||
(b) | Not applicable. | ||
(c) | Not applicable. | ||
(d) | Exhibits. The following exhibit is being filed herewith: | ||
99.1 | News Release dated May 1, 2014, reporting Integrys Energy Group, Inc. financial results for the quarter ended March 31, 2014. | ||
SIGNATURES | |
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | |
INTEGRYS ENERGY GROUP, INC. By: /s/ James F. Schott James F. Schott Vice President and Chief Financial Officer | |
Date: May 1, 2014 |
Exhibit Number | |
99.1 | News Release dated May 1, 2014, reporting Integrys Energy Group, Inc. financial results for the quarter ended March 31, 2014. |
Pages | |
News Release | 1-4 |
Condensed Consolidated Statements of Income | 5 |
Condensed Consolidated Statements of Comprehensive Income | 6 |
Condensed Consolidated Balance Sheets | 7 |
Condensed Consolidated Statements of Cash Flows | 8 |
Diluted Earnings Per Share – Adjusted and Weather Impacts | 9 |
Non-GAAP Financial Information Reported by Segment | 10-11 |
Key Variances in Non-GAAP Adjusted Earnings – By Segment | 12 |
Diluted Earnings Per Share Guidance Information | 13 |
Supplemental Quarterly Financial Highlights | 14-17 |
For Immediate Release | ||
May 1, 2014 | ||
Contact: | Steven P. Eschbach, CFA | |
Vice President – Investor Relations | ||
Integrys Energy Group, Inc. | ||
(312) 228-5408 |
Three Months Ended March 31 | ||
2014 | 2013 | |
GAAP earnings (millions) | $152.4 | $187.5 |
GAAP diluted earnings per share | $1.89 | $2.37 |
Adjusted earnings (millions) * | $139.7 | $139.9 |
Diluted earnings per share – adjusted * | $1.73 | $1.76 |
Media Hotline: 800-977-2250 - NYSE: TEG | ||
200 East Randolph Drive | ||
Chicago, IL 60601 | ||
www.integrysenergygroup.com |
• | The timing and resolution of rate cases and related negotiations, including recovery of deferred and current costs and the ability to earn a reasonable return on investment, and other regulatory decisions impacting the regulated businesses; |
• | Federal and state legislative and regulatory changes, including deregulation and restructuring of the electric and natural gas utility industries, financial reform, health care reform, energy efficiency mandates, reliability standards, pipeline integrity and safety standards, and changes in tax and other laws and regulations to which Integrys Energy Group and its subsidiaries are subject; |
• | The risk of terrorism or cyber security attacks, including the associated costs to protect assets and respond to such events; |
• | The risk of failure to maintain the security of personally identifiable information, including the associated costs to notify affected persons and to mitigate their information security concerns; |
• | Federal and state legislative and regulatory changes relating to the environment, including climate change and other environmental regulations impacting generation facilities and renewable energy standards; |
• | Costs and effects of litigation and administrative proceedings, settlements, investigations, and claims; |
• | The ability to retain market-based rate authority; |
• | The effects, extent, and timing of competition or additional regulation in the markets in which Integrys Energy Group’s subsidiaries operate; |
• | Changes in credit ratings and interest rates caused by volatility in the financial markets and actions of rating agencies and their impact on Integrys Energy Group's and its subsidiaries' liquidity and financing efforts; |
• | The risk of financial loss, including increases in bad debt expense, associated with the inability of Integrys Energy Group’s and its subsidiaries’ counterparties, affiliates, and customers to meet their obligations; |
• | The effects of political developments, as well as changes in economic conditions and the related impact on customer energy use, customer growth, and the ability to adequately forecast energy use for Integrys Energy Group’s customers; |
• | The ability to use tax credit and loss carryforwards; |
• | The investment performance of employee benefit plan assets and related actuarial assumptions, which impact future funding requirements; |
• | The risk associated with the value of goodwill or other intangible assets and their possible impairment; |
• | The timely completion of capital projects within estimates, as well as the recovery of those costs through established mechanisms; |
• | Potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed timely or within budgets; |
• | The risks associated with changing commodity prices, particularly natural gas and electricity, and the available sources of fuel, natural gas, and purchased power, including their impact on margins, working capital, and liquidity requirements; |
• | Changes in technology, particularly with respect to new, developing, or alternative sources of generation; |
• | Unusual weather and other natural phenomena, including related economic, operational, and/or other ancillary effects of any such events; |
• | The impact of unplanned facility outages; |
• | The financial performance of American Transmission Company and its corresponding contribution to Integrys Energy Group’s earnings; |
• | The timing and outcome of any audits, disputes, and other proceedings related to taxes; |
• | The effectiveness of risk management strategies, the use of financial and derivative instruments, and the related recovery of these costs from customers in rates; |
• | The effect of accounting pronouncements issued periodically by standard-setting bodies; and |
• | Other factors discussed in reports Integrys Energy Group files with the United States Securities and Exchange Commission. |
INTEGRYS ENERGY GROUP, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | Three Months Ended | |||||||
March 31 | ||||||||
(Millions, except per share data) | 2014 | 2013 | ||||||
Utility revenues | $ | 1,616.7 | $ | 1,123.8 | ||||
Nonregulated revenues | 1,308.2 | 554.4 | ||||||
Total revenues | 2,924.9 | 1,678.2 | ||||||
Utility cost of fuel, natural gas, and purchased power | 960.2 | 565.1 | ||||||
Nonregulated cost of sales | 1,247.5 | 436.8 | ||||||
Operating and maintenance expense | 364.6 | 295.1 | ||||||
Depreciation and amortization expense | 71.3 | 60.9 | ||||||
Taxes other than income taxes | 28.1 | 27.2 | ||||||
Operating income | 253.2 | 293.1 | ||||||
Earnings from equity method investments | 22.9 | 22.3 | ||||||
Miscellaneous income | 6.0 | 5.7 | ||||||
Interest expense | 39.1 | 29.3 | ||||||
Other expense | (10.2 | ) | (1.3 | ) | ||||
Income before taxes | 243.0 | 291.8 | ||||||
Provision for income taxes | 89.8 | 109.6 | ||||||
Net income from continuing operations | 153.2 | 182.2 | ||||||
Discontinued operations, net of tax | (0.1 | ) | 6.1 | |||||
Net income | 153.1 | 188.3 | ||||||
Preferred stock dividends of subsidiary | (0.8 | ) | (0.8 | ) | ||||
Noncontrolling interest in subsidiaries | 0.1 | — | ||||||
Net income attributed to common shareholders | $ | 152.4 | $ | 187.5 | ||||
Average shares of common stock | ||||||||
Basic | 80.2 | 78.7 | ||||||
Diluted | 80.5 | 79.3 | ||||||
Earnings per common share (basic) | ||||||||
Net income from continuing operations | $ | 1.90 | $ | 2.30 | ||||
Discontinued operations, net of tax | — | 0.08 | ||||||
Earnings per common share (basic) | $ | 1.90 | $ | 2.38 | ||||
Earnings per common share (diluted) | ||||||||
Net income from continuing operations | $ | 1.89 | $ | 2.29 | ||||
Discontinued operations, net of tax | — | 0.08 | ||||||
Earnings per common share (diluted) | $ | 1.89 | $ | 2.37 | ||||
Dividends per common share declared | $ | 0.68 | $ | 0.68 |
INTEGRYS ENERGY GROUP, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | Three Months Ended | |||||||
March 31 | ||||||||
(Millions) | 2014 | 2013 | ||||||
Net income | $ | 153.1 | $ | 188.3 | ||||
Other comprehensive income (loss), net of tax: | ||||||||
Cash flow hedges | ||||||||
Unrealized net gains arising during period, net of tax of $ – million and $ – million, respectively | — | 0.1 | ||||||
Reclassification of net (gains) losses to net income, net of tax of $0.9 million and $0.6 million, respectively | (0.6 | ) | 0.9 | |||||
Cash flow hedges, net | (0.6 | ) | 1.0 | |||||
Defined benefit plans | ||||||||
Pension and other postretirement benefit costs arising during period, net of tax of $(0.1) million and $ – million, respectively | (0.1 | ) | — | |||||
Amortization of pension and other postretirement benefit costs included in net periodic benefit cost, net of tax of $0.3 million and $0.4 million, respectively | 0.3 | 0.6 | ||||||
Defined benefit plans, net | 0.2 | 0.6 | ||||||
Other comprehensive income (loss), net of tax | (0.4 | ) | 1.6 | |||||
Comprehensive income | 152.7 | 189.9 | ||||||
Preferred stock dividends of subsidiary | (0.8 | ) | (0.8 | ) | ||||
Noncontrolling interest in subsidiaries | 0.1 | — | ||||||
Comprehensive income attributed to common shareholders | $ | 152.0 | $ | 189.1 |
INTEGRYS ENERGY GROUP, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | March 31 | December 31 | ||||||
(Millions, except share and per share data) | 2014 | 2013 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 56.6 | $ | 22.3 | ||||
Collateral on deposit | 74.4 | 37.4 | ||||||
Accounts receivable and accrued unbilled revenues, net of reserves of $61.9 and $49.4, respectively | 1,543.8 | 1,037.0 | ||||||
Inventories | 134.9 | 253.1 | ||||||
Assets from risk management activities | 269.9 | 239.5 | ||||||
Regulatory assets | 238.8 | 127.4 | ||||||
Assets held for sale | 286.7 | 272.6 | ||||||
Deferred income taxes | — | 31.4 | ||||||
Prepaid taxes | 74.5 | 146.9 | ||||||
Other current assets | 37.5 | 50.0 | ||||||
Current assets | 2,717.1 | 2,217.6 | ||||||
Property, plant, and equipment, net of accumulated depreciation of $3,283.5 and $3,236.9, respectively | 6,301.2 | 6,216.7 | ||||||
Regulatory assets | 1,346.7 | 1,361.4 | ||||||
Assets from risk management activities | 60.3 | 75.4 | ||||||
Equity method investments | 548.1 | 540.9 | ||||||
Goodwill | 662.1 | 662.1 | ||||||
Other long-term assets | 166.7 | 169.4 | ||||||
Total assets | $ | 11,802.2 | $ | 11,243.5 | ||||
Liabilities and Equity | ||||||||
Short-term debt | $ | 321.9 | $ | 326.0 | ||||
Current portion of long-term debt | 100.0 | 100.0 | ||||||
Accounts payable | 864.9 | 604.8 | ||||||
Liabilities from risk management activities | 175.8 | 163.8 | ||||||
Accrued taxes | 111.4 | 80.9 | ||||||
Regulatory liabilities | 149.9 | 101.1 | ||||||
Temporary LIFO liquidation credit | 150.9 | — | ||||||
Liabilities held for sale | 36.7 | 49.1 | ||||||
Deferred income taxes | 12.8 | — | ||||||
Other current liabilities | 218.6 | 228.8 | ||||||
Current liabilities | 2,142.9 | 1,654.5 | ||||||
Long-term debt | 2,956.2 | 2,956.2 | ||||||
Deferred income taxes | 1,439.9 | 1,390.3 | ||||||
Deferred investment tax credits | 57.6 | 57.6 | ||||||
Regulatory liabilities | 438.8 | 383.7 | ||||||
Environmental remediation liabilities | 588.4 | 600.0 | ||||||
Pension and other postretirement benefit obligations | 95.6 | 200.8 | ||||||
Liabilities from risk management activities | 46.2 | 62.8 | ||||||
Asset retirement obligations | 497.0 | 491.0 | ||||||
Other long-term liabilities | 133.6 | 133.2 | ||||||
Long-term liabilities | 6,253.3 | 6,275.6 | ||||||
Commitments and contingencies | ||||||||
Common stock – $1 par value; 200,000,000 shares authorized; 79,963,091 shares issued; 79,534,371 shares outstanding | 80.0 | 79.9 | ||||||
Additional paid-in capital | 2,653.4 | 2,660.5 | ||||||
Retained earnings | 665.0 | 567.1 | ||||||
Accumulated other comprehensive loss | (23.6 | ) | (23.2 | ) | ||||
Shares in deferred compensation trust | (20.8 | ) | (23.0 | ) | ||||
Total common shareholders’ equity | 3,354.0 | 3,261.3 | ||||||
Preferred stock of subsidiary – $100 par value; 1,000,000 shares authorized; 511,882 shares issued; 510,495 shares outstanding | 51.1 | 51.1 | ||||||
Noncontrolling interest in subsidiaries | 0.9 | 1.0 | ||||||
Total liabilities and equity | $ | 11,802.2 | $ | 11,243.5 |
INTEGRYS ENERGY GROUP, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | Three Months Ended | |||||||
March 31 | ||||||||
(Millions) | 2014 | 2013 | ||||||
Operating Activities | ||||||||
Net income | $ | 153.1 | $ | 188.3 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Discontinued operations, net of tax | 0.1 | (6.1 | ) | |||||
Depreciation and amortization expense | 71.3 | 60.9 | ||||||
Recoveries and refunds of regulatory assets and liabilities | 54.1 | 16.5 | ||||||
Net unrealized gains on energy contracts | (19.7 | ) | (65.2 | ) | ||||
Bad debt expense | 19.3 | 9.3 | ||||||
Pension and other postretirement expense | 7.2 | 15.9 | ||||||
Pension and other postretirement contributions | (68.6 | ) | (63.2 | ) | ||||
Deferred income taxes and investment tax credits | 90.2 | 68.3 | ||||||
Equity income, net of dividends | (3.9 | ) | (4.4 | ) | ||||
Termination of tolling agreement with Fox Energy Company LLC | — | (50.0 | ) | |||||
Other | 1.1 | 6.3 | ||||||
Changes in working capital | ||||||||
Collateral on deposit | (37.0 | ) | 15.4 | |||||
Accounts receivable and accrued unbilled revenues | (531.5 | ) | (182.8 | ) | ||||
Inventories | 121.6 | 137.9 | ||||||
Other current assets | (71.7 | ) | 45.4 | |||||
Accounts payable | 272.1 | 24.7 | ||||||
Temporary LIFO liquidation credit | 150.9 | 83.2 | ||||||
Other current liabilities | 54.7 | 19.2 | ||||||
Net cash provided by operating activities | 263.3 | 319.6 | ||||||
Investing Activities | ||||||||
Capital expenditures | (159.6 | ) | (147.0 | ) | ||||
Capital contributions to equity method investments | (5.1 | ) | (1.7 | ) | ||||
Acquisition of Fox Energy Company LLC | — | (391.6 | ) | |||||
Grant received related to Crane Creek wind project | — | 69.0 | ||||||
Other | 1.4 | (1.9 | ) | |||||
Net cash used for investing activities | (163.3 | ) | (473.2 | ) | ||||
Financing Activities | ||||||||
Short-term debt, net | (4.1 | ) | 74.0 | |||||
Borrowing on term credit facility | — | 200.0 | ||||||
Repayment of long-term debt | — | (22.0 | ) | |||||
Proceeds from stock option exercises | 0.4 | 6.4 | ||||||
Shares purchased for stock-based compensation | (9.8 | ) | (2.0 | ) | ||||
Payment of dividends | ||||||||
Preferred stock of subsidiary | (0.8 | ) | (0.8 | ) | ||||
Common stock | (54.1 | ) | (50.1 | ) | ||||
Other | (3.7 | ) | (8.3 | ) | ||||
Net cash (used for) provided by financing activities | (72.1 | ) | 197.2 | |||||
Change in cash and cash equivalents - continuing operations | 27.9 | 43.6 | ||||||
Change in cash and cash equivalents - discontinued operations | ||||||||
Net cash provided by (used for) operating activities | 6.4 | (0.6 | ) | |||||
Net cash provided by investing activities | — | 1.6 | ||||||
Net change in cash and cash equivalents | 34.3 | 44.6 | ||||||
Cash and cash equivalents at beginning of period | 22.3 | 27.4 | ||||||
Cash and cash equivalents at end of period | $ | 56.6 | $ | 72.0 |
Three Months Ended March 31 | ||||||||
2014 | 2013 | |||||||
Diluted EPS | $ | 1.89 | $ | 2.37 | ||||
Special Items (net of taxes): | ||||||||
Net noncash gains related to derivative and inventory accounting activities | (0.16 | ) | (0.53 | ) | ||||
Discontinued operations | — | (0.08 | ) | |||||
Diluted EPS – adjusted | $ | 1.73 | $ | 1.76 | ||||
Average Shares of Common Stock – Diluted (in millions) | 80.5 | 79.3 |
Three Months Ended March 31 | ||||||||
Dollar Impacts, net of taxes (Millions) | 2014 | 2013 | ||||||
Natural Gas Utility Segment | $ | 7.4 | $ | 0.6 | ||||
Electric Utility Segment | 5.7 | — | ||||||
Integrys Energy Services – Core | (2.8 | ) | 0.2 | |||||
Reversal of the full calendar year 2012 reserves related to decoupling mechanisms at Peoples Gas and North Shore Gas | — | 9.9 | ||||||
Total | $ | 10.3 | $ | 10.7 |
Three Months Ended March 31 | ||||||||
Diluted EPS Impacts, net of taxes | 2014 | 2013 | ||||||
Natural Gas Utility Segment | $ | 0.09 | $ | 0.01 | ||||
Electric Utility Segment | 0.07 | — | ||||||
Integrys Energy Services – Core | (0.03 | ) | — | |||||
Reversal of the full calendar year 2012 reserves related to decoupling mechanisms at Peoples Gas and North Shore Gas | — | 0.12 | ||||||
Total | $ | 0.13 | $ | 0.13 |
March 31, 2014 (Millions) | Natural Gas Utility | Electric Utility | Electric Transmission Investment | Integrys Energy Services | Holding Company and Other | Integrys Energy Group Consolidated | ||||||||||||||||||||||
Core | Other | |||||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | $ | 99.1 | $ | 31.1 | $ | 13.7 | $ | (1.9 | ) | $ | 12.7 | $ | (2.3 | ) | $ | 152.4 | ||||||||||||
Special Items (net of taxes) | ||||||||||||||||||||||||||||
Net noncash gains related to derivative and inventory accounting activities | — | — | — | — | (12.8 | ) | — | (12.8 | ) | |||||||||||||||||||
Discontinued operations | — | — | — | — | 0.1 | — | 0.1 | |||||||||||||||||||||
Adjusted earnings (loss) | $ | 99.1 | $ | 31.1 | $ | 13.7 | $ | (1.9 | ) | $ | — | $ | (2.3 | ) | $ | 139.7 |
March 31, 2013 (Millions) | Natural Gas Utility | Electric Utility | Electric Transmission Investment | Integrys Energy Services | Holding Company and Other | Integrys Energy Group Consolidated | ||||||||||||||||||||||
Core | Other | |||||||||||||||||||||||||||
Net income attributed to common shareholders | $ | 89.7 | $ | 28.6 | $ | 13.4 | $ | 9.9 | $ | 41.5 | $ | 4.4 | $ | 187.5 | ||||||||||||||
Special Items (net of taxes) | ||||||||||||||||||||||||||||
Net noncash gains related to derivative and inventory accounting activities | (0.1 | ) | — | — | — | (41.4 | ) | — | (41.5 | ) | ||||||||||||||||||
Discontinued operations | — | — | — | — | (0.1 | ) | (6.0 | ) | (6.1 | ) | ||||||||||||||||||
Adjusted earnings (loss) | $ | 89.6 | $ | 28.6 | $ | 13.4 | $ | 9.9 | $ | — | $ | (1.6 | ) | $ | 139.9 |
March 31, 2014 | Natural Gas Utility | Electric Utility | Electric Transmission Investment | Integrys Energy Services | Holding Company and Other | Integrys Energy Group Consolidated | ||||||||||||||||||||||
Core | Other | |||||||||||||||||||||||||||
Diluted EPS | $ | 1.23 | $ | 0.39 | $ | 0.17 | $ | (0.03 | ) | $ | 0.16 | $ | (0.03 | ) | $ | 1.89 | ||||||||||||
Special Items (net of taxes) | ||||||||||||||||||||||||||||
Net noncash gains related to derivative and inventory accounting activities | — | — | — | — | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||
Discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||
Diluted EPS – adjusted | $ | 1.23 | $ | 0.39 | $ | 0.17 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 1.73 |
March 31, 2013 | Natural Gas Utility | Electric Utility | Electric Transmission Investment | Integrys Energy Services | Holding Company and Other | Integrys Energy Group Consolidated | ||||||||||||||||||||||
Core | Other | |||||||||||||||||||||||||||
Diluted EPS | $ | 1.13 | $ | 0.36 | $ | 0.17 | $ | 0.12 | $ | 0.53 | $ | 0.06 | $ | 2.37 | ||||||||||||||
Special Items (net of taxes) | ||||||||||||||||||||||||||||
Net noncash gains related to derivative and inventory accounting activities | — | — | — | — | (0.53 | ) | — | (0.53 | ) | |||||||||||||||||||
Discontinued operations | — | — | — | — | — | (0.08 | ) | (0.08 | ) | |||||||||||||||||||
Diluted EPS – adjusted | $ | 1.13 | $ | 0.36 | $ | 0.17 | $ | 0.12 | $ | — | $ | (0.02 | ) | $ | 1.76 |
Integrys Energy Group, Inc. | ||||||||||||||||||||||||||||
Key Variances in Non-GAAP Adjusted Earnings - By Segment (in Millions) | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Reporting Segment | First Quarter 2013 Adjusted Earnings / Loss | Weather, Net of Decoupling | Decoupling Reserve Reversal (2) | Utility Rate Impacts / Other Nonregulated Margins | Operating Expense Impacts | Tax Impacts / Other (1) | First Quarter 2014 Adjusted Earnings / Loss | |||||||||||||||||||||
Natural Gas Utility | $ | 89.6 | $ | 6.8 | $ | (9.9 | ) | $ | 17.5 | $ | (12.5 | ) | (3) | $ | 7.6 | $ | 99.1 | |||||||||||
Electric Utility | 28.6 | 5.7 | — | 8.9 | (4) | (10.8 | ) | (5) | (1.3 | ) | 31.1 | |||||||||||||||||
Electric Transmission Investment | 13.4 | — | — | — | — | 0.3 | 13.7 | |||||||||||||||||||||
Integrys Energy Services | 9.9 | (3.0 | ) | — | (3.0 | ) | (2.4 | ) | (3.4 | ) | (1.9 | ) | ||||||||||||||||
Holding Company and Other | (1.6 | ) | — | — | 1.7 | 0.2 | (2.6 | ) | (2.3 | ) | ||||||||||||||||||
Total | $ | 139.9 | $ | 9.5 | $ | (9.9 | ) | $ | 25.1 | $ | (25.5 | ) | $ | 0.6 | $ | 139.7 | ||||||||||||
Potential 2014 | ||||||||
Diluted EPS Guidance | Low Scenario | High Scenario | ||||||
Regulated natural gas utility segment | $ | 1.42 | $ | 1.53 | ||||
Regulated electric utility segment | 1.45 | 1.60 | ||||||
Electric transmission investment segment | 0.70 | 0.71 | ||||||
Integrys Energy Services | ||||||||
Core | 0.17 | 0.21 | ||||||
Holding company and other segment | 0.31 | 0.35 | ||||||
Integrys Energy Group Consolidated Diluted EPS * | $ | 4.10 | $ | 4.35 | ||||
Average Shares of Common Stock – Diluted (in millions) | 80.7 | 80.7 |
Integrys Energy Group Consolidated Diluted EPS | $ | 4.10 | $ | 4.35 | ||||
Special Items (net of taxes) | ||||||||
Holding company and other segment - Gain on sale of Upper Peninsula Power Company | (0.60 | ) | (0.60 | ) | ||||
Integrys Energy Group Consolidated Diluted EPS – Adjusted | $ | 3.50 | $ | 3.75 | ||||
Average Shares of Common Stock – Diluted (in millions) | 80.7 | 80.7 |
▪ | Availability of generation units |
▪ | Normal weather conditions for the rest of the year |
▪ | Not estimating the impact of derivative and inventory fair value accounting activities |
Integrys Energy Group, Inc. | ||||||||||||||||||||
Supplemental Quarterly Financial Highlights | ||||||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year Ended | 1st Qtr | |||||||||||||||
Regulated Natural Gas Utility Segment | ||||||||||||||||||||
Revenues | $ | 793.9 | $ | 369.9 | $ | 257.2 | $ | 684.0 | $ | 2,105.0 | $ | 1,272.0 | ||||||||
year-over-year change | 19.3 | % | 45.8 | % | 16.9 | % | 28.4 | % | 25.9 | % | 60.2 | % | ||||||||
Purchased natural gas costs | 424.1 | 167.5 | 93.8 | 360.8 | 1,046.2 | 830.4 | ||||||||||||||
Margins | $ | 369.8 | $ | 202.4 | $ | 163.4 | $ | 323.2 | $ | 1,058.8 | $ | 441.6 | ||||||||
year-over-year change | 15.9 | % | 25.7 | % | 10.3 | % | 20.3 | % | 18.0 | % | 19.4 | % | ||||||||
margins/revenues | 46.6 | % | 54.7 | % | 63.5 | % | 47.3 | % | 50.3 | % | 34.7 | % | ||||||||
Operating and maintenance expense | 162.1 | 147.9 | 144.9 | 177.8 | 632.7 | 215.4 | ||||||||||||||
Depreciation and amortization expense | 32.2 | 32.3 | 35.6 | 35.9 | 136.0 | 36.4 | ||||||||||||||
Taxes other than income taxes | 9.9 | 9.5 | 9.6 | 9.2 | 38.2 | 10.8 | ||||||||||||||
Operating income (loss) | 165.6 | 12.7 | (26.7 | ) | 100.3 | 251.9 | 179.0 | |||||||||||||
year-over-year change | 16.6 | % | N/M* | 93.5 | % | 23.5 | % | 24.6 | % | 8.1 | % | |||||||||
Net income (loss) attributed to common shareholders | $ | 89.7 | $ | 1.5 | $ | (19.6 | ) | $ | 51.8 | $ | 123.4 | $ | 99.1 | |||||||
Total throughput in therms | 1,695.6 | 711.9 | 454.4 | 1,313.8 | 4,175.7 | 2,006.8 | ||||||||||||||
year-over-year change | 23.6 | % | 18.3 | % | (1.7 | )% | 16.1 | % | 17.0 | % | 18.4 | % | ||||||||
Retail throughput in therms | ||||||||||||||||||||
Residential | 775.9 | 243.0 | 89.2 | 555.5 | 1,663.6 | 927.2 | ||||||||||||||
Commercial and industrial | 236.8 | 78.9 | 43.2 | 175.9 | 534.8 | 301.4 | ||||||||||||||
Other | 20.0 | 10.8 | 14.6 | 28.6 | 74.0 | 23.9 | ||||||||||||||
Total retail throughput in therms | 1,032.7 | 332.7 | 147.0 | 760.0 | 2,272.4 | 1,252.5 | ||||||||||||||
Transport throughput in therms | ||||||||||||||||||||
Residential | 111.3 | 39.1 | 16.4 | 85.9 | 252.7 | 135.4 | ||||||||||||||
Commercial and industrial | 551.6 | 340.1 | 291.0 | 467.9 | 1,650.6 | 618.9 | ||||||||||||||
Total transport throughput in therms | 662.9 | 379.2 | 307.4 | 553.8 | 1,903.3 | 754.3 | ||||||||||||||
Regulated Electric Utility Segment | ||||||||||||||||||||
Revenues | $ | 331.8 | $ | 327.0 | $ | 354.0 | $ | 319.3 | $ | 1,332.1 | $ | 349.2 | ||||||||
year-over-year change | 8.1 | % | 4.9 | % | (3.5 | )% | 2.4 | % | 2.7 | % | 5.2 | % | ||||||||
Fuel and purchased power costs | 143.2 | 131.3 | 133.6 | 128.8 | 536.9 | 136.7 | ||||||||||||||
Margins | $ | 188.6 | $ | 195.7 | $ | 220.4 | $ | 190.5 | $ | 795.2 | $ | 212.5 | ||||||||
year-over-year change | 5.1 | % | 11.0 | % | 7.0 | % | 9.7 | % | 8.1 | % | 12.7 | % | ||||||||
margins/revenues | 56.8 | % | 59.8 | % | 62.3 | % | 59.7 | % | 59.7 | % | 60.9 | % | ||||||||
Operating and maintenance expense | 101.4 | 111.5 | 110.6 | 116.7 | 440.2 | 116.0 | ||||||||||||||
Depreciation and amortization expense | 21.5 | 25.8 | 25.7 | 25.6 | 98.6 | 25.6 | ||||||||||||||
Taxes other than income taxes | 12.8 | 12.1 | 12.1 | 12.1 | 49.1 | 12.8 | ||||||||||||||
Operating income | 52.9 | 46.3 | 72.0 | 36.1 | 207.3 | 58.1 | ||||||||||||||
year-over-year change | 19.4 | % | 8.4 | % | (4.4 | )% | 17.2 | % | 7.4 | % | 9.8 | % | ||||||||
Net income attributed to common shareholders | $ | 28.6 | $ | 23.7 | $ | 40.3 | $ | 18.3 | $ | 110.9 | $ | 31.1 | ||||||||
Sales in kilowatt-hours | 3,953.1 | 3,942.1 | 4,181.0 | 3,924.9 | 16,001.1 | 3,671.6 | ||||||||||||||
year-over-year change | 4.1 | % | (0.2 | )% | (9.9 | )% | (0.5 | )% | (2.0 | )% | (7.1 | )% | ||||||||
Residential | 823.8 | 692.6 | 837.8 | 778.1 | 3,132.3 | 898.3 | ||||||||||||||
Commercial and industrial | 2,072.0 | 2,103.7 | 2,242.8 | 2,085.5 | 8,504.0 | 2,077.9 | ||||||||||||||
Wholesale | 1,046.6 | 1,138.1 | 1,092.4 | 1,050.1 | 4,327.2 | 684.8 | ||||||||||||||
Other | 10.7 | 7.7 | 8.0 | 11.2 | 37.6 | 10.6 | ||||||||||||||
Electric Transmission Investment Segment | ||||||||||||||||||||
American Transmission Company (ATC) | ||||||||||||||||||||
Equity contributions to ATC | $ | 1.7 | $ | 5.1 | $ | 3.4 | $ | 3.5 | $ | 13.7 | $ | 5.1 | ||||||||
After-tax equity earnings recognized from ATC investment | 13.4 | 13.6 | 13.7 | 13.2 | 53.9 | 13.7 | ||||||||||||||
Notes: | ||||||||||||||||||||
* Not meaningful |
Integrys Energy Group, Inc. | ||||||||||||||||||||||||
Supplemental Quarterly Financial Highlights | ||||||||||||||||||||||||
(millions, except Integrys Energy Services' sales volumes) | ||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year Ended | 1st Qtr | |||||||||||||||||||
Nonregulated Segment - Integrys Energy Services | ||||||||||||||||||||||||
Revenues | $ | 545.7 | $ | 412.9 | $ | 513.0 | $ | 695.9 | $ | 2,167.5 | $ | 1,292.2 | ||||||||||||
Cost of sales | 430.7 | 443.7 | 469.3 | 567.1 | 1,910.8 | 1,234.8 | ||||||||||||||||||
Margins | $ | 115.0 | $ | (30.8 | ) | $ | 43.7 | $ | 128.8 | $ | 256.7 | $ | 57.4 | |||||||||||
Margin Detail: | ||||||||||||||||||||||||
Electric and renewable energy asset margins | 89.6 | (33.2 | ) | 38.3 | 107.4 | 202.1 | 29.7 | (1) | ||||||||||||||||
Natural gas margins | 25.4 | 2.4 | (2) | 5.4 | (2) | 21.4 | (2) | 54.6 | 27.7 | (2) | ||||||||||||||
Margins | 115.0 | (30.8 | ) | 43.7 | 128.8 | 256.7 | 57.4 | |||||||||||||||||
Retail Electric Realized Unit Margins | $ | 5.53 | $ | 5.50 | $ | 2.53 | $ | 4.43 | $ | 4.34 | $ | 1.54 | ||||||||||||
Retail Natural Gas Realized Unit Margins | $ | 0.37 | $ | 0.16 | $ | 0.17 | $ | 0.26 | $ | 0.25 | $ | 0.31 | ||||||||||||
Operating and maintenance expense | 32.8 | 30.1 | 27.5 | 32.0 | 122.4 | 36.4 | ||||||||||||||||||
Depreciation and amortization expense | 2.7 | 2.8 | 2.9 | 3.0 | 11.4 | 2.9 | ||||||||||||||||||
Taxes other than income taxes | 1.0 | 1.0 | 0.6 | 0.7 | 3.3 | 1.2 | ||||||||||||||||||
Operating income (loss) | 78.5 | (64.7 | ) | 12.7 | 93.1 | 119.6 | 16.9 | |||||||||||||||||
Discontinued operations, net of tax | 0.1 | (0.7 | ) | (0.6 | ) | 0.1 | (1.1 | ) | (0.1 | ) | ||||||||||||||
Net income (loss) attributed to common shareholders | $ | 51.4 | $ | (41.8 | ) | $ | 11.7 | $ | 57.0 | $ | 78.3 | $ | 10.8 | |||||||||||
Physically settled volumes | ||||||||||||||||||||||||
Retail electric sales volumes in million kilowatt-hours | 4,318.2 | 4,838.1 | 6,291.0 | 5,887.1 | 21,334.4 | 6,356.9 | ||||||||||||||||||
Wholesale assets and distributed solar electric sales volumes in million kilowatt-hours (1) | 18.0 | 15.7 | 17.4 | 12.9 | 64.0 | 14.1 | ||||||||||||||||||
Retail natural gas sales volumes in billion cubic feet | 50.7 | 37.1 | 34.8 | 61.0 | 183.6 | 87.6 | ||||||||||||||||||
Nonregulated Segment - Holding Company and Other | ||||||||||||||||||||||||
Net income (loss) attributed to common shareholders | $ | 4.4 | $ | (2.4 | ) | $ | (8.0 | ) | $ | (8.7 | ) | $ | (14.7 | ) | $ | (2.3 | ) | |||||||
Notes: | ||||||||||||||||||||||||
(1) Includes negative margins of $0.4 million related to purchase accounting adjustments resulting from acquisitions. | ||||||||||||||||||||||||
(2) These amounts include negative margins of $1.5 million, $1.3 million, and $2.0 million for the second, third, and fourth quarters of 2013, respectively, and $2.6 million for the first quarter of 2014, related to purchase accounting adjustments resulting from acquisitions. |
Integrys Energy Group, Inc. | ||||||||||||||
Supplemental Quarterly Financial Highlights | ||||||||||||||
2013 | 2014 | |||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year Ended | 1st Qtr | |||||||||
Weather information: | ||||||||||||||
Heating and Cooling Degree Days - WPS | ||||||||||||||
Heating Degree Days - Actual | 3,803 | 1,107 | 216 | 2,925 | 8,051 | 4,515 | ||||||||
period-over-period change | 32.8 | % | 48.0 | % | (14.3 | )% | 17.4 | % | 26.7 | % | 18.7 | % | ||
compared with normal | 4.4 | % | 13.2 | % | — | % | 11.9 | % | 8.0 | % | 23.8 | % | ||
Heating Degree Days - Normal | 3,643 | 978 | 216 | 2,615 | 7,452 | 3,646 | ||||||||
Cooling Degree Days - Actual | — | 131 | 396 | 2 | 529 | — | ||||||||
period-over-period change | (100.0 | )% | (50.4 | )% | (23.0 | )% | N/M * | (33.0 | )% | N/M * | ||||
compared with normal | (100.0 | )% | (3.7 | )% | 9.7 | % | (60.0 | )% | 5.2 | % | (100.0 | )% | ||
Cooling Degree Days - Normal | 1 | 136 | 361 | 5 | 503 | 1 | ||||||||
Heating and Cooling Degree Days - UPPCO | ||||||||||||||
Heating Degree Days - Actual | 4,087 | 1,629 | 473 | 3,307 | 9,496 | 4,884 | ||||||||
period-over-period change | 24.5 | % | 37.8 | % | 9.0 | % | 16.0 | % | 22.5 | % | 19.5 | % | ||
compared with normal | 3.0 | % | 16.4 | % | 17.1 | % | 14.2 | % | 9.6 | % | 23.0 | % | ||
Heating Degree Days - Normal | 3,967 | 1,399 | 404 | 2,895 | 8,665 | 3,972 | ||||||||
Cooling Degree Days - Actual | — | 36 | 194 | — | 230 | — | ||||||||
period-over-period change | N/M * | (63.6 | )% | (17.8 | )% | N/M * | (31.3 | )% | N/M * | |||||
compared with normal | N/M * | (34.5 | )% | 10.2 | % | (100.0 | )% | (0.9 | )% | N/M * | ||||
Cooling Degree Days - Normal | — | 55 | 176 | 1 | 232 | — | ||||||||
Heating Degree Days - MGU | ||||||||||||||
Heating Degree Days - Actual | 3,150 | 788 | 154 | 2,372 | 6,464 | 3,915 | ||||||||
period-over-period change | 27.4 | % | 19.6 | % | (13.5 | )% | 15.1 | % | 20.4 | % | 24.3 | % | ||
compared with normal | 3.2 | % | 4.6 | % | 18.5 | % | 10.6 | % | 6.4 | % | 26.3 | % | ||
Heating Degree Days - Normal | 3,051 | 753 | 130 | 2,144 | 6,078 | 3,099 | ||||||||
Heating Degree Days - MERC | ||||||||||||||
Heating Degree Days - Actual | 4,081 | 1,220 | 174 | 3,290 | 8,765 | 4,701 | ||||||||
period-over-period change | 32.4 | % | 68.7 | % | (23.0 | )% | 17.4 | % | 28.3 | % | 15.2 | % | ||
compared with normal | 3.8 | % | 27.0 | % | (29.8 | )% | 13.4 | % | 9.0 | % | 19.7 | % | ||
Heating Degree Days - Normal | 3,931 | 961 | 248 | 2,900 | 8,040 | 3,926 | ||||||||
Heating Degree Days - PGL and NSG | ||||||||||||||
Heating Degree Days - Actual | 3,247 | 802 | 78 | 2,446 | 6,573 | 3,870 | ||||||||
period-over-period change | 36.5 | % | 51.3 | % | (29.7 | )% | 21.0 | % | 30.4 | % | 19.2 | % | ||
compared with normal | 4.9 | % | 13.6 | % | (9.3 | )% | 14.1 | % | 9.0 | % | 25.1 | % | ||
Heating Degree Days - Normal | 3,095 | 706 | 86 | 2,144 | 6,031 | 3,093 | ||||||||
Notes: | ||||||||||||||
* Not meaningful |
Integrys Energy Group, Inc. | ||||||||||||||||||||
Supplemental Quarterly Financial Highlights | ||||||||||||||||||||
(millions, except Integrys Energy Services' sales volumes) | ||||||||||||||||||||
Other Information: | ||||||||||||||||||||
Capital Expenditures | 2013 | 2014 | ||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year Ended | 1st Qtr | |||||||||||||||
Regulated utility expenditures | $ | 525.7 | $ | 139.9 | $ | 154.6 | $ | 164.8 | $ | 985.0 | $ | 123.9 | ||||||||
Integrys Energy Services | 3.4 | 0.8 | 4.6 | 7.0 | 15.8 | 7.5 | ||||||||||||||
Other | 9.5 | 12.4 | 15.4 | 22.7 | 60.0 | 28.2 | ||||||||||||||
Total Capital Expenditures | $ | 538.6 | $ | 153.1 | $ | 174.6 | $ | 194.5 | $ | 1,060.8 | $ | 159.6 |
Nonregulated Segment - Integrys Energy Services | Forward Contracted Volumes at 03/31/13 | Forward Contracted Volumes at 03/31/14 | ||||||||||||||||
By Rolling Twelve Months | 04/01/13 - 03/31/14 | 04/01/14 - 03/31/15 | Post 03/31/15 | 04/01/14 - 03/31/15 | 04/01/15 - 03/31/16 | Post 03/31/16 | ||||||||||||
Retail natural gas sales volumes - billion cubic feet | 90.8 | 28.4 | 5.4 | 155.7 | 51.8 | 12.1 | ||||||||||||
Retail electric sales volumes - million kilowatt-hours | 16,219 | 4,558 | 1,580 | 17,004 | 6,017 | 2,267 | ||||||||||||
By Calendar Year | 04/01/13 - 12/31/13 | 01/01/14 - 12/31/14 | Post 12/31/14 | 04/01/14 - 12/31/14 | 01/01/15 - 12/31/15 | Post 12/31/15 | ||||||||||||
Retail natural gas sales volumes - billion cubic feet | 68.2 | 42.9 | 13.5 | 115.4 | 79.7 | 24.5 | ||||||||||||
Retail electric sales volumes - million kilowatt-hours | 13,304 | 7,056 | 1,997 | 14,098 | 7,951 | 3,239 | ||||||||||||
These tables represent estimated physical sales volumes related to contracts for natural gas and electric power for delivery or settlement in future periods. |
Nonregulated Segment - Integrys Energy Services | Wholesale Counterparty Credit Exposure at 03/31/13 | Wholesale Counterparty Credit Exposure at 03/31/14 | ||||||||||||||||||||||||||||||
Counterparty Rating | Total | < 1 Year | 1 to 3 Years | > 3 Years | Total | < 1 Year | 1 to 3 Years | > 3 Years | ||||||||||||||||||||||||
Investment grade - regulated utilities | $ | 5.0 | $ | 4.0 | $ | 1.0 | $ | — | $ | 7.4 | $ | 6.9 | $ | 0.6 | $ | (0.1 | ) | |||||||||||||||
Investment grade - other | 9.5 | 6.3 | 3.3 | (0.1 | ) | 33.6 | 30.7 | 2.9 | — | |||||||||||||||||||||||
Non-investment grade - regulated utilities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Non-investment grade - other | 1.8 | 1.8 | — | — | 2.8 | 2.4 | 0.4 | — | ||||||||||||||||||||||||
Non-rated - regulated utilities | — | — | — | — | 0.1 | 0.1 | — | — | ||||||||||||||||||||||||
Non-rated - other | 7.6 | 5.2 | 2.4 | — | 4.5 | 3.5 | 1.0 | — | ||||||||||||||||||||||||
Total Exposure | $ | 23.9 | $ | 17.3 | $ | 6.7 | $ | (0.1 | ) | $ | 48.4 | $ | 43.6 | $ | 4.9 | $ | (0.1 | ) | ||||||||||||||
The investment and non-investment grade categories are determined by publicly available credit ratings of the counterparty or the rating of any guarantor, whichever is higher. Investment grade counterparties are those with a senior unsecured Moody's rating of Baa3 or above or a Standard & Poor's rating of BBB- or above. Exposure considers netting of accounts receivable and accounts payable where netting agreements are in place, as well as net mark-to-market exposure. |
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