HONOLULU, Feb. 14, 2017 /PRNewswire/ --
Selected 2016 Highlights:
- Consolidated Reported net income of $248.3 million in 2016 vs $159.9 million in 2015, up 55% largely due to the
merger and spin-off related items;
Core net income1 of $190.1
million in 2016 vs $175.7
million in 2015, up 8%
- Consolidated Reported EPS of $2.29 in 2016 vs $1.50 in 2015, up 53%;
Consolidated Core EPS1 of $1.75 in 2016 vs $1.65 in 2015, up 6%
- Consolidated Reported ROE of 12.4%; Consolidated
Core ROE1 of 9.5%
- Utility ROE of 8.1%
- Bank ROE of 10.1%2
- Continued legacy of delivering value for customers and
Hawaii:
- Record 25% of electricity on Hawaiian Electric's grid was from
renewable sources3
- Moving closer to achieving Hawaii's 2020 renewable portfolio standard
target of 30%
- Avoided-oil equivalent of 2.2 million barrels which would have
cost our state more than $119 million4 in imported
oil in 2016
- Led the nation in the integration of customer-sited
solar: by the end of 2016, an estimated 26% of single-family
homes on the islands we serve (up from 23% at the end of 2015) and
approximately 15% of our total customers have solar systems
- 29% of single family homes have installed or have been approved
to install PV systems
_____________________________________________
1
Non-GAAP measure that excludes merger and spin-off-related income
and costs after-tax including costs related to the terminated LNG
contract which required PUC approval of the merger with NextEra
Energy, Inc. See the "Explanation of HEI's Use of Certain
Unaudited Non-GAAP measures" and the related reconciliation.
2 Calculated using net income divided by average GAAP
common equity, simple average method.
3 Based upon preliminary Renewable Portfolio Standard
information as of 12/31/16.
4 Estimate based on the 2016 average price per barrel of
$53.49 and as compared to 2008 oil
usage levels.
-
- Utility other operations and maintenance (O&M)
expense5 decreased 2% from the 2015 level
- Bank provided approximately $1.8
billion of credit to consumers and businesses and originated
over 3,500 mortgages
- Bank named one of Hawaii Business "Best Places to Work" for the
7th consecutive year; American Banker "Best Banks to Work For" list
for the 4th consecutive year and only Hawaii bank to make the national list
- Bank implemented a new e-Banking platform making banking
easier for customers
- Consolidated company contributed more than 22,000 volunteer
hours and more than $2 million of
charitable contributions to community organizations
- History of uninterrupted dividends since 1901
- HEI remains an independent public company following our
terminated merger with NextEra Energy and cancelled spin-off of
American Savings Bank
Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today
reported 2016 year-end consolidated net income for common stock of
$248.3 million and diluted earnings
per share (EPS) of $2.29 compared to
$159.9 million and EPS of
$1.50 for 2015. For the fourth
quarter of 2016, consolidated net income for common stock was
$44.6 million and EPS of $0.41 compared to $42.3 million and EPS of $0.39 for the fourth quarter of 2015. The
financial results for 2016 include the one-time increase to net
income of $58.2 million due to the
terminated merger with NextEra Energy, Inc., the related terminated
liquefied natural gas (LNG) contract and the associated cancelled
spin-off of ASB Hawaii, Inc., as compared to $15.8 million net expense in 2015.
Excluding these items, core earnings1 for 2016
were $190.1 million and core
EPS1 of $1.75 compared to
$175.7 million and $1.65 respectively for 2015. The financial
results for the fourth quarter of 2015 included $2.2 million net expense for the terminated
merger with NextEra Energy, Inc. and the related cancelled spin-off
of ASB Hawaii, Inc. Excluding these items, core
earnings1 for the fourth quarter of 2016 were
$44.6 million and core EPS of
$0.41 compared to $44.5 million and EPS of $0.41 for the fourth quarter of 2015.
"Following the termination of our proposed merger with NextEra
Energy, HEI and its operating subsidiaries, Hawaiian Electric, Maui
Electric, Hawaii Electric Light and American Savings Bank, have
moved forward strongly as an independent public company, delivering
a consolidated core return on equity1 of 9.5% for
2016. HEI's unique combination of companies continues to
provide essential electricity and banking services for Hawaii and invest in the growth of
Hawaii's economy," said
Constance Lau, HEI president and
chief executive officer.
______________________________
5 Excludes net income neutral expenses covered by
surcharges or by third parties and merger-related costs including
the terminated LNG contract costs which required PUC approval of
the merger with NextEra Energy, Inc. See "Explanation of
HEI's Use of Certain Unaudited Non-GAAP measures" and the related
reconciliation.
"In 2016, Hawaiian Electric and its subsidiaries invested
$318 million, over twice the
utility's earnings, in the modernization and improvement of
Hawaii's electric grids, and we
achieved an energy portfolio powered by 25% renewable
resources3 in 2016. While advancing towards our 100%
goal for 2045, we remained focused on increasing customer value. In
2016, Hawaiian Electric management worked hard to reduce overall
operation and maintenance expenses from 2015 levels. Our activities
at the utility are focused on creating, at reasonable cost and
working with third party energy developers and producers, the
renewable energy platform of the future for the benefit of all of
Hawaii, while also maintaining the
service and reliability that our customers have come to expect,"
added Lau.
"American Savings Bank closed 2016 with a strong fourth quarter
and achieved important strategic objectives including the
successful implementation of their new e-banking platform. We plan
to build upon the bank's success in the coming years with the
building of its new headquarters. The bank is well positioned to
continue to grow in 2017, as it works continually to improve
efficiency and customer experience," said Lau.
HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH
EXPECTATIONS
Full Year Results:
Hawaiian Electric Company's6 full-year 2016 net
income was $142.3 million compared to
$135.7 million in 2015.
Excluding after-tax costs related to the terminated merger with
NextEra Energy, Inc. and the related terminated LNG contract
totaling $2.2 million and
$0.5 million in 2016 and 2015,
respectively, Hawaiian Electric Company's core net income was
$144.5 million in 2016 and
$136.2 million in 2015.
The $8.3 million core net income
increase from the prior year was primarily driven by the following
after-tax items:
______________________________
Note: Amounts indicated as "after-tax" in this earnings
release are based upon adjusting items for the composite statutory
tax rates of 39% for the utilities and 40% for the bank.
6 Hawaiian Electric Company, unless otherwise defined,
refers to the three utilities, Hawaiian Electric Company, Inc. on
Oahu, Maui Electric Company,
Limited, and Hawaii Electric Light Company, Inc.
- $8 million higher net
revenues7 primarily due to recovery of costs for clean
energy, reliability and system efficiency investments; and
- $6 million lower O&M
expenses5 compared to 2015 which included a regulatory
decision denying recovery of enterprise resource planning software
costs and additional reserves for environmental costs.
These items were partially offset by $6
million higher depreciation expense as a result of
increasing investments for the integration of more renewable
energy, improved customer reliability and greater system
efficiency.
Fourth Quarter Results:
Fourth quarter 2016 net income of $34.1
million was $1.1 million
higher than the fourth quarter of 2015 primarily driven by
$2 million (after-tax) higher net
revenues in 2016 attributable to the recovery of costs for clean
energy, reliability and system efficiency investments partially
offset by $1 million (after-tax)
higher depreciation expense in the fourth quarter of 2016 as a
result of increasing investments for the integration of more
renewable energy, improved customer reliability and greater system
efficiency.
AMERICAN SAVINGS BANK: SOLID FINANCIAL
PERFORMANCE
Full Year Results:
American Savings Bank's (American) full-year 2016 net income was
$57.3 million compared to
$54.7 million in 2015. The
$2.5 million increase from the prior
year was primarily driven by the following after-tax items:
- $11 million higher net interest
income driven mainly by commercial real estate and consumer loan
and investment portfolio growth; partially offset by
- $6 million higher provision for
loan losses largely related to commercial real estate and consumer
lending activities; and
- $2 million higher noninterest
expense primarily due to costs related to the conversion and
upgrade of American's e-banking platform.
_____________________________
7 Net revenues represent the after-tax impact of
"Revenues" less the following expenses which are largely pass
through items in revenues: "fuel oil," "purchased power" and
"taxes, other than income taxes" as shown on the Hawaiian Electric
Company, Inc. and Subsidiaries' Consolidated Statements of
Income.
American achieved loan growth of 2.6% in 2016 primarily driven
by commercial real estate and consumer loans that also helped to
improve net interest margin. At the same time, American
strategically reduced exposure to shared national credits by
$93 million or 2.0% of total
loans.
Total deposits were $5.5 billion
at December 31, 2016, an increase of
$524 million or 10.4% from
December 31, 2015. Core deposits
increased $342 million or 7.5% from
December 31, 2015. The average cost
of funds was 0.23% for the full year 2016, up 1 basis point
from the prior year.
Overall, American's return on average equity for the full year
remained solid at 9.90% in 2016 compared to 9.93% in 2015, and the
return on average assets for the full year was 0.92% in 2016
compared to 0.95% in 2015.
Fourth Quarter Results:
Fourth quarter 2016 net income of $16.2
million was $1.1 million
higher than the third, or linked quarter and $1.3 million higher than the fourth quarter
of 2015.
Compared to the linked quarter of 2016, the $1.1 million increase in the fourth quarter of
2016 was primarily driven by the following on an after-tax
basis:
- $3 million lower provision for
loan losses primarily due to reserves for specific commercial
credits in the third quarter of 2016; and
- $1 million higher net interest
income driven mainly by higher yields in the commercial real estate
and commercial markets loan portfolios and investment portfolio
growth.
These increases were partially offset by the following on an
after-tax basis:
- $1 million lower noninterest
income primarily due to the gain on sale of real estate and higher
mortgage banking income in the third quarter of 2016; and
- $1 million higher noninterest
expense.
Compared to the fourth quarter of 2015, the $1.3 million higher net income in the fourth
quarter of 2016 was primarily driven by $3
million (after-tax) higher net interest income mainly due to
higher yields and growth in the commercial real estate and consumer
loan portfolios, partially offset by $1 million (after-tax)
higher noninterest expense.
American's fourth quarter of 2016 return on average equity was
11.1%, up from 10.4% in the linked quarter and 10.7% in the fourth
quarter of 2015. Return on average assets was 1.02% for the fourth
quarter of 2016, compared to 0.97% from the linked quarter and
1.01% in the same quarter last year.
Please refer to American's news release issued on January 30, 2017, for additional information on
American.
HOLDING AND OTHER COMPANIES
The holding and other companies' net income was $48.7 million in 2016 compared to a net loss
of $30.6 million in 2015. Excluding
one-time merger-related items of $60.3
million net income in 2016 and $15.2
million net expenses in 2015, the holding and other
companies' adjusted net losses in 2016 and 2015 were $11.7 million and $15.4
million, respectively. The holding company's adjusted 2016
results included favorable tax adjustments as HEI moved out of a
federal net operating loss position, enabling the recognition of
tax benefits of approximately $4
million.
Fourth quarter net losses were $5.7
million in 2016 compared to $5.6 million in the fourth quarter of 2015.
Excluding after-tax costs related to the terminated merger with
NextEra Energy, Inc. and the cancelled spin-off of ASB Hawaii, Inc.
of $1.9 million in the fourth quarter
of 2015, the holding and other companies' net losses in 2016 and
2015 were $5.7 million and
$3.8 million, respectively. The
higher net loss was primarily driven by an adjustment to tax
benefits of approximately $2 million
in the fourth quarter of 2016.
BOARD DECLARES QUARTERLY DIVIDEND
On February 13, 2017, the board of
directors maintained HEI's quarterly cash dividend of $0.31 cents per share, payable on March 10, 2017, to shareholders of record at the
close of business on February 24,
2017 (ex-dividend date is February
22, 2017). The cumulative 2016 dividend is
$1.24 per share.
Dividends have been paid uninterrupted since 1901. At the
indicated annual dividend rate and the closing price per share on
February 13, 2017 of $33.68, HEI's dividend yield is 3.7%.
WEBCAST AND CONFERENCE CALL
HEI TO ANNOUNCE 2017 EPS GUIDANCE IN EARNINGS CONFERENCE
CALL
Hawaiian Electric Industries, Inc. will conduct a webcast and
conference call to review its 2016 earnings on Tuesday, February
14, 2017, at 10:00 a.m.
Hawaii time (3:00 p.m. Eastern time). HEI will announce 2017
EPS guidance during the scheduled webcast and conference call.
Interested parties within the United
States may listen to the conference by calling (888)
317-6016 and international parties may listen to the conference by
calling (412) 317-6016 or by accessing the webcast on HEI's website
under the heading "Investor Relations." HEI and Hawaiian
Electric Company 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,
Hawaiian Electric Company's and American's press releases, HEI's
and Hawaiian Electric Company'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 Hawaiian Electric Company'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 Hawaiian Electric Company's SEC filings.
An online replay of the webcast will be available at the same
website beginning about two hours after the event. Replays of the
conference call will also be available approximately two hours
after the event through February 28,
2017, by dialing (877) 344-7529 or (412) 317-0088 and
entering passcode: 10097589.
HEI supplies power to approximately 95% of Hawaii's population through its electric
utilities, Hawaiian Electric Company, Inc., Hawaii Electric Light
Company, Inc. and Maui Electric Company, Limited and provides a
wide array of banking and other financial services to consumers and
businesses through American Savings Bank, one of Hawaii's largest financial institutions.
NON-GAAP MEASURES
See "Explanation of HEI's Use of Certain Unaudited Non-GAAP
Measures" and related reconciliations on pages 15 to 16 of this
release.
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 "will," "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 "Cautionary Note Regarding Forward-Looking
Statements" and "Risk Factors" discussions (which are incorporated
by reference herein) set forth in HEI's Quarterly Report on Form
10-Q for the quarter ended September 30, 2016 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,
Hawaiian Electric Company, 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)
|
|
|
|
Three months ended
December 31
|
|
Years ended
December 31
|
(in thousands, except per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
544,668
|
|
|
$
|
555,434
|
|
|
$
|
2,094,368
|
|
|
$
|
2,335,166
|
|
Bank
|
|
72,627
|
|
|
68,511
|
|
|
285,924
|
|
|
267,733
|
|
Other
|
|
100
|
|
|
87
|
|
|
362
|
|
|
83
|
|
Total
revenues
|
|
617,395
|
|
|
624,032
|
|
|
2,380,654
|
|
|
2,602,982
|
|
Expenses
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
476,024
|
|
|
487,772
|
|
|
1,809,900
|
|
|
2,061,050
|
|
Bank
|
|
47,820
|
|
|
45,858
|
|
|
198,572
|
|
|
183,921
|
|
Other
|
|
5,124
|
|
|
7,180
|
|
|
24,007
|
|
|
35,458
|
|
Total
expenses
|
|
528,968
|
|
|
540,810
|
|
|
2,032,479
|
|
|
2,280,429
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
68,644
|
|
|
67,662
|
|
|
284,468
|
|
|
274,116
|
|
Bank
|
|
24,807
|
|
|
22,653
|
|
|
87,352
|
|
|
83,812
|
|
Other
|
|
(5,024)
|
|
|
(7,093)
|
|
|
(23,645)
|
|
|
(35,375)
|
|
Total operating
income
|
|
88,427
|
|
|
83,222
|
|
|
348,175
|
|
|
322,553
|
|
Merger termination
fee
|
|
—
|
|
|
—
|
|
|
90,000
|
|
|
—
|
|
Interest expense,
net—other than on deposit liabilities and other bank
borrowings
|
|
(19,011)
|
|
|
(19,915)
|
|
|
(75,803)
|
|
|
(77,150)
|
|
Allowance for
borrowed funds used during construction
|
|
868
|
|
|
539
|
|
|
3,144
|
|
|
2,457
|
|
Allowance for equity
funds used during construction
|
|
2,315
|
|
|
1,562
|
|
|
8,325
|
|
|
6,928
|
|
Income before
income taxes
|
|
72,599
|
|
|
65,408
|
|
|
373,841
|
|
|
254,788
|
|
Income
taxes
|
|
27,492
|
|
|
22,615
|
|
|
123,695
|
|
|
93,021
|
|
Net
income
|
|
45,107
|
|
|
42,793
|
|
|
250,146
|
|
|
161,767
|
|
Preferred stock
dividends of subsidiaries
|
|
473
|
|
|
473
|
|
|
1,890
|
|
|
1,890
|
|
Net income for
common stock
|
|
$
|
44,634
|
|
|
$
|
42,320
|
|
|
$
|
248,256
|
|
|
$
|
159,877
|
|
Basic earnings per
common share
|
|
$
|
0.41
|
|
|
$
|
0.39
|
|
|
$
|
2.30
|
|
|
$
|
1.50
|
|
Diluted earnings
per common share
|
|
$
|
0.41
|
|
|
$
|
0.39
|
|
|
$
|
2.29
|
|
|
$
|
1.50
|
|
Dividends per
common share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
1.24
|
|
|
$
|
1.24
|
|
Weighted-average
number of common shares outstanding
|
|
108,553
|
|
|
107,460
|
|
|
108,102
|
|
|
106,418
|
|
Adjusted
weighted-average shares
|
|
108,769
|
|
|
107,797
|
|
|
108,309
|
|
|
106,721
|
|
Net income (loss)
for common stock by segment
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
34,119
|
|
|
$
|
32,993
|
|
|
$
|
142,317
|
|
|
$
|
135,714
|
|
Bank
|
|
16,217
|
|
|
14,953
|
|
|
57,279
|
|
|
54,730
|
|
Other
|
|
(5,702)
|
|
|
(5,626)
|
|
|
48,660
|
|
|
(30,567)
|
|
Net income for
common stock
|
|
$
|
44,634
|
|
|
$
|
42,320
|
|
|
$
|
248,256
|
|
|
$
|
159,877
|
|
Comprehensive income
attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
118,471
|
|
|
$
|
38,075
|
|
|
$
|
241,389
|
|
|
$
|
160,993
|
|
Return on average
common equity (twelve months ended)1
|
|
|
|
|
|
12.4
|
%
|
|
8.6
|
%
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI filings with the
SEC.
|
|
1 On
a core basis, 2016 and 2015 returns on average common equity were
9.5% and 9.4%. See reconciliation of GAAP to non-GAAP
measures.
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
December 31
|
|
2016
|
|
2015
|
(dollars in thousands)
|
|
|
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
278,452
|
|
|
$
|
300,478
|
|
Accounts receivable
and unbilled revenues, net
|
|
237,950
|
|
|
242,766
|
|
Available-for-sale
investment securities, at fair value
|
|
1,105,182
|
|
|
820,648
|
|
Stock in Federal Home
Loan Bank, at cost
|
|
11,218
|
|
|
10,678
|
|
Loans receivable held
for investment, net
|
|
4,683,160
|
|
|
4,565,781
|
|
Loans held for sale,
at lower of cost or fair value
|
|
18,817
|
|
|
4,631
|
|
Property, plant and
equipment, net of accumulated depreciation of $2,444,348 and
$2,339,319 at the respective dates
|
|
4,603,465
|
|
|
4,377,658
|
|
Regulatory
assets
|
|
957,451
|
|
|
896,731
|
|
Other
|
|
447,621
|
|
|
480,457
|
|
Goodwill
|
|
82,190
|
|
|
82,190
|
|
Total
assets
|
|
$
|
12,425,506
|
|
|
$
|
11,782,018
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
143,279
|
|
|
$
|
138,523
|
|
Interest and
dividends payable
|
|
25,225
|
|
|
26,042
|
|
Deposit
liabilities
|
|
5,548,929
|
|
|
5,025,254
|
|
Short-term
borrowings—other than bank
|
|
—
|
|
|
103,063
|
|
Other bank
borrowings
|
|
192,618
|
|
|
328,582
|
|
Long-term debt,
net—other than bank
|
|
1,619,019
|
|
|
1,578,368
|
|
Deferred income
taxes
|
|
728,806
|
|
|
680,877
|
|
Regulatory
liabilities
|
|
410,693
|
|
|
371,543
|
|
Contributions in aid
of construction
|
|
543,525
|
|
|
506,087
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
638,854
|
|
|
589,918
|
|
Other
|
|
473,512
|
|
|
471,828
|
|
Total
liabilities
|
|
10,324,460
|
|
|
9,820,085
|
|
Preferred stock of
subsidiaries - not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
Shareholders'
equity
|
|
|
|
|
Preferred stock, no
par value, authorized 10,000,000 shares; issued: none
|
|
—
|
|
|
—
|
|
Common stock, no par
value, authorized 200,000,000 shares; issued and outstanding:
108,583,413 shares and 107,460,406 shares at the respective
dates
|
|
1,660,910
|
|
|
1,629,136
|
|
Retained
earnings
|
|
438,972
|
|
|
324,766
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
(33,129)
|
|
|
(26,262)
|
|
Total
shareholders' equity
|
|
2,066,753
|
|
|
1,927,640
|
|
Total liabilities
and shareholders' equity
|
|
$
|
12,425,506
|
|
|
$
|
11,782,018
|
|
|
The Consolidated
Balance Sheet as of December 31, 2015 reflects the retrospective
application of ASU No. 2015-03, "Interest - Imputation of Interest
(Subtopic 835-30): Simplifying the Presentation of Debt Issuance
Costs," which was adopted in first quarter 2016.
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI filings with the
SEC.
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|
|
|
Three months ended
December 31
|
|
Years ended
December 31
|
(dollars
in thousands, except per barrel amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
$
|
544,668
|
|
|
$
|
555,434
|
|
|
$
|
2,094,368
|
|
|
$
|
2,335,166
|
|
Expenses
|
|
|
|
|
|
|
|
|
Fuel oil
|
|
120,441
|
|
|
135,930
|
|
|
454,704
|
|
|
654,600
|
|
Purchased
power
|
|
150,073
|
|
|
148,287
|
|
|
562,740
|
|
|
594,096
|
|
Other operation and
maintenance
|
|
107,273
|
|
|
106,570
|
|
|
405,533
|
|
|
413,089
|
|
Depreciation
|
|
46,761
|
|
|
44,540
|
|
|
187,061
|
|
|
177,380
|
|
Taxes, other than
income taxes
|
|
51,476
|
|
|
52,445
|
|
|
199,862
|
|
|
221,885
|
|
Total
expenses
|
|
476,024
|
|
|
487,772
|
|
|
1,809,900
|
|
|
2,061,050
|
|
Operating
income
|
|
68,644
|
|
|
67,662
|
|
|
284,468
|
|
|
274,116
|
|
Allowance for equity
funds used during construction
|
|
2,315
|
|
|
1,562
|
|
|
8,325
|
|
|
6,928
|
|
Interest expense and
other charges, net
|
|
(17,090)
|
|
|
(17,200)
|
|
|
(66,824)
|
|
|
(66,370)
|
|
Allowance for
borrowed funds used during construction
|
|
868
|
|
|
539
|
|
|
3,144
|
|
|
2,457
|
|
Income before income
taxes
|
|
54,737
|
|
|
52,563
|
|
|
229,113
|
|
|
217,131
|
|
Income
taxes
|
|
20,119
|
|
|
19,071
|
|
|
84,801
|
|
|
79,422
|
|
Net
income
|
|
34,618
|
|
|
33,492
|
|
|
144,312
|
|
|
137,709
|
|
Preferred stock
dividends of subsidiaries
|
|
229
|
|
|
229
|
|
|
915
|
|
|
915
|
|
Net income
attributable to Hawaiian Electric
|
|
34,389
|
|
|
33,263
|
|
|
143,397
|
|
|
136,794
|
|
Preferred stock
dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
|
1,080
|
|
|
1,080
|
|
Net income for
common stock
|
|
$
|
34,119
|
|
|
$
|
32,993
|
|
|
$
|
142,317
|
|
|
$
|
135,714
|
|
Comprehensive
income attributable to Hawaiian Electric
|
|
$
|
32,460
|
|
|
$
|
33,862
|
|
|
$
|
141,070
|
|
|
$
|
136,594
|
|
OTHER ELECTRIC
UTILITY INFORMATION
|
|
|
|
|
|
|
|
|
Kilowatthour sales
(millions)
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
1,678
|
|
|
1,738
|
|
|
6,660
|
|
|
6,754
|
|
Hawaii
Electric Light
|
|
272
|
|
|
273
|
|
|
1,067
|
|
|
1,065
|
|
Maui
Electric
|
|
282
|
|
|
290
|
|
|
1,118
|
|
|
1,138
|
|
|
|
2,232
|
|
|
2,301
|
|
|
8,845
|
|
|
8,957
|
|
Wet-bulb temperature
(Oahu average; degrees Fahrenheit)
|
|
68.9
|
|
|
71.9
|
|
|
69.6
|
|
|
70.6
|
|
Cooling degree days
(Oahu)
|
|
1,151
|
|
|
1,395
|
|
|
4,788
|
|
|
5,082
|
|
Average fuel oil cost
per barrel
|
|
$
|
57.90
|
|
|
$
|
61.59
|
|
|
$
|
53.49
|
|
|
$
|
74.71
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31
|
|
|
|
|
|
2016
|
|
2015
|
Return on average
common equity (%) (simple average)
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
|
|
|
|
8.26
|
|
|
8.02
|
|
Hawaii
Electric Light
|
|
|
|
|
|
7.28
|
|
|
7.22
|
|
Maui
Electric
|
|
|
|
|
|
8.08
|
|
|
8.52
|
|
Hawaiian
Electric Consolidated1
|
|
|
|
|
|
8.07
|
|
|
7.96
|
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric filings with
the SEC.
|
|
1 On
a core basis, 2016 and 2015 returns on average common equity were
8.2% and 8.0%. See reconciliation of GAAP to non-GAAP
measures.
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
December
31
|
|
2016
|
|
2015
|
(dollars in
thousands, except par value)
|
|
|
|
|
Assets
|
|
|
|
|
Property, plant
and equipment
|
|
|
|
|
Utility property,
plant and equipment
|
|
|
|
|
Land
|
|
$
|
53,153
|
|
|
$
|
52,792
|
|
Plant and
equipment
|
|
6,605,732
|
|
|
6,315,698
|
|
Less
accumulated depreciation
|
|
(2,369,282)
|
|
|
(2,266,004)
|
|
Construction
in progress
|
|
211,742
|
|
|
175,309
|
|
Utility
property, plant and equipment, net
|
|
4,501,345
|
|
|
4,277,795
|
|
Nonutility property,
plant and equipment, less accumulated depreciation of $1,232 and
$1,229 at respective dates
|
|
7,407
|
|
|
7,272
|
|
Total
property, plant and equipment, net
|
|
4,508,752
|
|
|
4,285,067
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
74,286
|
|
|
24,449
|
|
Customer accounts
receivable, net
|
|
123,688
|
|
|
132,778
|
|
Accrued unbilled
revenues, net
|
|
91,693
|
|
|
84,509
|
|
Other accounts
receivable, net
|
|
5,233
|
|
|
10,408
|
|
Fuel oil stock, at
average cost
|
|
66,430
|
|
|
71,216
|
|
Materials and
supplies, at average cost
|
|
53,679
|
|
|
54,429
|
|
Prepayments and
other
|
|
23,100
|
|
|
36,640
|
|
Regulatory
assets
|
|
66,032
|
|
|
72,231
|
|
Total
current assets
|
|
504,141
|
|
|
486,660
|
|
Other long-term
assets
|
|
|
|
|
Regulatory
assets
|
|
891,419
|
|
|
824,500
|
|
Unamortized debt
expense
|
|
208
|
|
|
497
|
|
Other
|
|
70,908
|
|
|
75,486
|
|
Total other
long-term assets
|
|
962,535
|
|
|
900,483
|
|
Total
assets
|
|
$
|
5,975,428
|
|
|
$
|
5,672,210
|
|
Capitalization and
liabilities
|
|
|
|
|
Capitalization
|
|
|
|
|
Common stock ($6 2/3
par value, authorized 50,000,000 shares; outstanding 16,019,785 and
15,805,327 shares)
|
|
$
|
106,818
|
|
|
$
|
105,388
|
|
Premium on capital
stock
|
|
601,491
|
|
|
578,930
|
|
Retained
earnings
|
|
1,091,800
|
|
|
1,043,082
|
|
Accumulated other
comprehensive income (loss), net of income taxes
|
|
(322)
|
|
|
925
|
|
Common
stock equity
|
|
1,799,787
|
|
|
1,728,325
|
|
Cumulative preferred
stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
Long-term debt,
net
|
|
1,319,260
|
|
|
1,278,702
|
|
Total
capitalization
|
|
3,153,340
|
|
|
3,041,320
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
117,814
|
|
|
114,846
|
|
Interest and
preferred dividends payable
|
|
22,838
|
|
|
23,111
|
|
Taxes
accrued
|
|
172,730
|
|
|
191,084
|
|
Regulatory
liabilities
|
|
3,762
|
|
|
2,204
|
|
Other
|
|
55,221
|
|
|
54,079
|
|
Total
current liabilities
|
|
372,365
|
|
|
385,324
|
|
Deferred credits
and other liabilities
|
|
|
|
|
Deferred income
taxes
|
|
733,659
|
|
|
654,806
|
|
Regulatory
liabilities
|
|
406,931
|
|
|
369,339
|
|
Unamortized tax
credits
|
|
88,961
|
|
|
84,214
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
599,726
|
|
|
552,974
|
|
Other
|
|
76,921
|
|
|
78,146
|
|
Total
deferred credits and other liabilities
|
|
1,906,198
|
|
|
1,739,479
|
|
Contributions in aid
of construction
|
|
543,525
|
|
|
506,087
|
|
Total
capitalization and liabilities
|
|
$
|
5,975,428
|
|
|
$
|
5,672,210
|
|
|
The Consolidated
Balance Sheet as of December 31, 2015 reflects the retrospective
application of ASU No. 2015-03, "Interest - Imputation of Interest
(Subtopic 835-30): Simplifying the Presentation of Debt Issuance
Costs," which was adopted in first quarter 2016.
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric filings with
the SEC.
|
American Savings
Bank, F.S.B.
STATEMENTS OF INCOME DATA
(Unaudited)
|
|
|
|
Three months
ended
|
|
Years
ended December 31,
|
(in thousands)
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
2016
|
|
2015
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
51,203
|
|
|
$
|
50,444
|
|
|
$
|
47,136
|
|
|
$
|
199,774
|
|
|
$
|
184,782
|
|
Interest and
dividends on investment securities
|
|
4,965
|
|
|
4,759
|
|
|
4,550
|
|
|
19,184
|
|
|
15,120
|
|
Total interest and
dividend income
|
|
56,168
|
|
|
55,203
|
|
|
51,686
|
|
|
218,958
|
|
|
199,902
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Interest on deposit
liabilities
|
|
2,013
|
|
|
1,871
|
|
|
1,467
|
|
|
7,167
|
|
|
5,348
|
|
Interest on other
borrowings
|
|
1,172
|
|
|
1,464
|
|
|
1,510
|
|
|
5,588
|
|
|
5,978
|
|
Total interest
expense
|
|
3,185
|
|
|
3,335
|
|
|
2,977
|
|
|
12,755
|
|
|
11,326
|
|
Net interest
income
|
|
52,983
|
|
|
51,868
|
|
|
48,709
|
|
|
206,203
|
|
|
188,576
|
|
Provision for loan
losses
|
|
1,497
|
|
|
5,747
|
|
|
839
|
|
|
16,763
|
|
|
6,275
|
|
Net interest
income after provision for loan losses
|
|
51,486
|
|
|
46,121
|
|
|
47,870
|
|
|
189,440
|
|
|
182,301
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Fees from other
financial services
|
|
5,585
|
|
|
5,599
|
|
|
5,667
|
|
|
22,384
|
|
|
22,211
|
|
Fee income on deposit
liabilities
|
|
5,714
|
|
|
5,627
|
|
|
5,746
|
|
|
21,759
|
|
|
22,368
|
|
Fee income on other
financial products
|
|
2,144
|
|
|
2,151
|
|
|
2,006
|
|
|
8,707
|
|
|
8,094
|
|
Bank-owned life
insurance
|
|
1,017
|
|
|
1,616
|
|
|
1,016
|
|
|
4,637
|
|
|
4,078
|
|
Mortgage banking
income
|
|
1,529
|
|
|
2,347
|
|
|
1,003
|
|
|
6,625
|
|
|
6,330
|
|
Gains on sale of
investment securities, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
598
|
|
|
—
|
|
Other income,
net
|
|
470
|
|
|
1,165
|
|
|
1,387
|
|
|
2,256
|
|
|
4,750
|
|
Total noninterest
income
|
|
16,459
|
|
|
18,505
|
|
|
16,825
|
|
|
66,966
|
|
|
67,831
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
22,920
|
|
|
22,844
|
|
|
23,705
|
|
|
90,117
|
|
|
90,518
|
|
Occupancy
|
|
4,077
|
|
|
3,991
|
|
|
4,115
|
|
|
16,321
|
|
|
16,365
|
|
Data
processing
|
|
3,431
|
|
|
3,150
|
|
|
3,002
|
|
|
13,030
|
|
|
12,103
|
|
Services
|
|
2,961
|
|
|
2,427
|
|
|
2,474
|
|
|
11,054
|
|
|
10,204
|
|
Equipment
|
|
1,745
|
|
|
1,759
|
|
|
1,578
|
|
|
6,938
|
|
|
6,577
|
|
Office supplies,
printing and postage
|
|
1,644
|
|
|
1,483
|
|
|
1,452
|
|
|
6,075
|
|
|
5,749
|
|
Marketing
|
|
982
|
|
|
747
|
|
|
844
|
|
|
3,489
|
|
|
3,463
|
|
FDIC
insurance
|
|
839
|
|
|
907
|
|
|
881
|
|
|
3,543
|
|
|
3,274
|
|
Other
expense
|
|
4,539
|
|
|
4,591
|
|
|
3,991
|
|
|
18,487
|
|
|
18,067
|
|
Total noninterest
expense
|
|
43,138
|
|
|
41,899
|
|
|
42,042
|
|
|
169,054
|
|
|
166,320
|
|
Income before
income taxes
|
|
24,807
|
|
|
22,727
|
|
|
22,653
|
|
|
87,352
|
|
|
83,812
|
|
Income
taxes
|
|
8,590
|
|
|
7,623
|
|
|
7,700
|
|
|
30,073
|
|
|
29,082
|
|
Net
income
|
|
$
|
16,217
|
|
|
$
|
15,104
|
|
|
$
|
14,953
|
|
|
$
|
57,279
|
|
|
$
|
54,730
|
|
Comprehensive
income
|
|
$
|
2,540
|
|
|
$
|
13,176
|
|
|
$
|
9,477
|
|
|
$
|
52,077
|
|
|
$
|
54,017
|
|
OTHER BANK
INFORMATION (annualized %, except as of period end)
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.02
|
|
|
0.97
|
|
|
1.01
|
|
|
0.92
|
|
|
0.95
|
|
Return on average
equity
|
|
11.09
|
|
|
10.36
|
|
|
10.66
|
|
|
9.90
|
|
|
9.93
|
|
Return on average
tangible common equity
|
|
12.90
|
|
|
12.06
|
|
|
12.48
|
|
|
11.53
|
|
|
11.68
|
|
Net interest
margin
|
|
3.59
|
|
|
3.57
|
|
|
3.55
|
|
|
3.59
|
|
|
3.53
|
|
Efficiency
ratio
|
|
62.12
|
|
|
59.54
|
|
|
64.15
|
|
|
61.89
|
|
|
64.87
|
|
Net charge-offs
(recoveries) to average loans outstanding
|
|
0.40
|
|
|
0.20
|
|
|
(0.08)
|
|
|
0.24
|
|
|
0.04
|
|
As of period
end
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans to
loans receivable held for investment
|
|
0.49
|
|
|
1.11
|
|
|
1.00
|
|
|
|
|
|
Allowance for loan
losses to loans outstanding
|
|
1.17
|
|
|
1.24
|
|
|
1.08
|
|
|
|
|
|
Tangible common
equity to tangible assets
|
|
7.82
|
|
|
8.03
|
|
|
8.05
|
|
|
|
|
|
Tier-1 leverage
ratio
|
|
8.6
|
|
|
8.6
|
|
|
8.8
|
|
|
|
|
|
Total capital
ratio
|
|
13.4
|
|
|
13.3
|
|
|
13.3
|
|
|
|
|
|
Dividend paid to HEI
(via ASB Hawaii, Inc.) ($ in millions)
|
|
$
|
9.0
|
|
|
$
|
9.0
|
|
|
$
|
7.5
|
|
|
$
|
36.0
|
|
|
$
|
30.0
|
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI filings with the
SEC.
|
American Savings
Bank, F.S.B.
BALANCE SHEETS DATA
(Unaudited)
|
|
December 31
|
2016
|
2015
|
(in
thousands)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
137,083
|
|
|
|
$
|
127,201
|
|
Interest-bearing
deposits
|
|
52,128
|
|
|
|
93,680
|
|
Restricted
cash
|
|
1,764
|
|
|
|
—
|
|
Available-for-sale
investment securities, at fair value
|
|
1,105,182
|
|
|
|
820,648
|
|
Stock in Federal Home
Loan Bank, at cost
|
|
11,218
|
|
|
|
10,678
|
|
Loans receivable held
for investment
|
|
4,738,693
|
|
|
|
4,615,819
|
|
Allowance for loan
losses
|
|
(55,533)
|
|
|
|
(50,038)
|
|
Net loans
|
|
4,683,160
|
|
|
|
4,565,781
|
|
Loans held for sale,
at lower of cost or fair value
|
|
18,817
|
|
|
|
4,631
|
|
Other
|
|
329,815
|
|
|
|
309,946
|
|
Goodwill
|
|
82,190
|
|
|
|
82,190
|
|
Total
assets
|
|
$
|
6,421,357
|
|
|
|
$
|
6,014,755
|
|
Liabilities and
shareholder's equity
|
|
|
|
|
|
Deposit
liabilities–noninterest-bearing
|
|
$
|
1,639,051
|
|
|
|
$
|
1,520,374
|
|
Deposit
liabilities–interest-bearing
|
|
3,909,878
|
|
|
|
3,504,880
|
|
Other
borrowings
|
|
192,618
|
|
|
|
328,582
|
|
Other
|
|
101,635
|
|
|
|
101,029
|
|
Total
liabilities
|
|
5,843,182
|
|
|
|
5,454,865
|
|
Common
stock
|
|
1
|
|
|
|
1
|
|
Additional paid in
capital
|
|
342,704
|
|
|
|
340,496
|
|
Retained
earnings
|
|
257,943
|
|
|
|
236,664
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
|
|
|
|
Net unrealized losses on
securities
|
$
|
(7,931)
|
|
|
$
|
(1,872)
|
|
|
|
Retirement benefit
plans
|
(14,542)
|
|
(22,473)
|
|
(15,399)
|
|
|
(17,271)
|
|
Total
shareholder's equity
|
|
578,175
|
|
|
|
559,890
|
|
Total
liabilities and shareholder's equity
|
|
$
|
6,421,357
|
|
|
|
$
|
6,014,755
|
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI filings with the
SEC.
|
EXPLANATION OF HEI'S USE OF CERTAIN UNAUDITED NON-GAAP
MEASURES
HEI and Hawaiian Electric Company management use certain
non-GAAP measures to evaluate the performance of HEI and the
utility. Management believes these non-GAAP measures provide
useful information and are a better indicator of the companies'
core operating activities. Core earnings and other financial
measures as presented here may not be comparable to similarly
titled measures used by other companies. The accompanying
tables provide a reconciliation of reported GAAP1
earnings to non-GAAP core earnings and the adjusted return on
average common equity (ROACE) for HEI and the utility.
The reconciling adjustments from GAAP earnings to core earnings
are limited to the fees, reimbursements, costs and associated taxes
related to the terminated merger between HEI and NextEra Energy,
Inc., and the cancelled spin-off of ASB Hawaii, Inc., and the
terminated liquefied natural gas (LNG) contract which required the
Hawaii Public Utilities Commission approval of the merger with
NextEra Energy, Inc. For more information on the
transactions, see HEI's Form 8-K filed on July 18, 2016 and HEI's Form 8-K filed on
July 19, 2016. Management does
not consider these items to be representative of the company's
fundamental core earnings.
The accompanying table also provides the calculation of utility
GAAP O&M adjusted for costs related to the terminated merger
discussed above. "O&M-related net income neutral items" which
are O&M expenses covered by specific surcharges or by third
parties have also been excluded. These "O&M-related net
income neutral items" are grossed-up in revenue and expense and do
not impact net income.
RECONCILIATION OF
GAAP1 TO NON-GAAP MEASURES
|
|
Hawaiian Electric
Industries, Inc. and Subsidiaries (HEI)
|
|
|
|
|
Unaudited
|
Three months ended
December 31
|
|
Years ended December
31
|
($ in millions,
except per share amounts)
|
2016
|
2015
|
|
2016
|
2015
|
HEI CONSOLIDATED
(INCOME) EXPENSES RELATED TO THE TERMINATED MERGER WITH NEXTERA
ENERGY AND CANCELLED SPIN-OFF OF ASB HAWAII
|
|
|
|
|
|
Pre-tax (income)
expenses
|
$
|
—
|
|
$
|
2.5
|
|
|
$
|
(84.9)
|
|
$
|
18.2
|
|
Current income taxes
(benefits)
|
—
|
|
(0.3)
|
|
|
24.7
|
|
(2.4)
|
|
After-tax (income)
expenses
|
$
|
—
|
|
$
|
2.2
|
|
|
$
|
(60.3)
|
|
$
|
15.8
|
|
HEI CONSOLIDATED
LNG CONTRACT COSTS2
|
|
|
|
|
|
Pre-tax
expenses
|
$
|
—
|
|
$
|
—
|
|
|
$
|
3.4
|
|
$
|
—
|
|
Current income taxes
(benefits)
|
—
|
|
—
|
|
|
(1.3)
|
|
—
|
|
After-tax (income)
expenses
|
$
|
—
|
|
$
|
—
|
|
|
$
|
2.1
|
|
$
|
—
|
|
HEI CONSOLIDATED
NET INCOME
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
44.6
|
|
$
|
42.3
|
|
|
$
|
248.3
|
|
$
|
159.9
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
(Income) expenses
related to the terminated merger with NextEra Energy and cancelled
spin-off of ASB Hawaii
|
—
|
|
2.2
|
|
|
(60.3)
|
|
15.8
|
|
Costs related to the
terminated LNG contract2
|
—
|
|
—
|
|
|
2.1
|
|
—
|
|
Non-GAAP (core)
net income
|
$
|
44.6
|
|
$
|
44.5
|
|
|
$
|
190.1
|
|
$
|
175.7
|
|
HEI CONSOLIDATED
DILUTED EARNINGS PER COMMON SHARE
|
|
|
|
|
GAAP (as
reported)
|
$
|
0.41
|
|
$
|
0.39
|
|
|
$
|
2.29
|
|
$
|
1.50
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
(Income) expenses
related to the terminated merger with NextEra Energy and cancelled
spin-off of ASB Hawaii
|
—
|
|
0.02
|
|
|
(0.56)
|
|
0.15
|
|
Costs related to the
terminated LNG contract2
|
—
|
|
—
|
|
|
0.02
|
|
—
|
|
Non-GAAP (core)
diluted earnings per common share
|
$
|
0.41
|
|
$
|
0.41
|
|
|
$
|
1.75
|
|
$
|
1.65
|
|
|
|
|
|
Years ended December
31
|
|
|
|
|
2016
|
2015
|
HEI CONSOLIDATED
RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
|
|
|
|
Based on
GAAP
|
|
|
|
12.4
|
%
|
8.6
|
%
|
Based on non-GAAP
(core)3
|
|
|
|
9.5
|
%
|
9.4
|
%
|
|
|
|
|
|
|
Note: Columns
may not foot due to rounding
|
1
Accounting principles generally accepted in the United States of
America
|
2
The LNG contract was terminated as it was conditioned on the merger
with NextEra Energy closing
|
3
Calculated as core net income divided by average GAAP common
equity
|
RECONCILIATION OF
GAAP1 TO NON-GAAP MEASURES
|
|
Hawaiian Electric
Company, Inc. and Subsidiaries
|
|
Unaudited
|
Three months ended
December 31
|
|
Years ended December
31
|
($ in
millions)
|
2016
|
2015
|
|
2016
|
2015
|
HAWAIIAN ELECTRIC
CONSOLIDATED COSTS RELATED
TO THE TERMINATED MERGER WITH NEXTERA ENERGY
|
|
Pre-tax
expenses
|
$
|
—
|
|
$
|
0.4
|
|
|
$
|
0.1
|
|
$
|
0.8
|
|
Current income taxes
(benefits)
|
—
|
|
(0.2)
|
|
|
—
|
|
(0.3)
|
|
After-tax
expenses
|
$
|
—
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
$
|
0.5
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED LNG CONTRACT COSTS2
|
|
|
|
|
Pre-tax
expenses
|
$
|
—
|
|
$
|
—
|
|
|
$
|
3.4
|
|
$
|
—
|
|
Current income taxes
(benefits)
|
—
|
|
—
|
|
|
(1.3)
|
|
—
|
|
After-tax
expenses
|
$
|
—
|
|
$
|
—
|
|
|
$
|
2.1
|
|
$
|
—
|
|
HAWAIIAN ELECTRIC
CONSOLIDATED NET INCOME
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
34.1
|
|
$
|
33.0
|
|
|
$
|
142.3
|
|
$
|
135.7
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
Costs related to the
terminated merger with NextEra Energy
|
—
|
|
0.2
|
|
|
0.1
|
|
0.5
|
|
Costs related to the
terminated LNG contract2
|
—
|
|
—
|
|
|
2.1
|
|
—
|
|
Non-GAAP (core)
net income
|
$
|
34.1
|
|
$
|
33.2
|
|
|
$
|
144.5
|
|
$
|
136.2
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December
31
|
|
|
|
|
2016
|
2015
|
HAWAIIAN ELECTRIC
CONSOLIDATED RETURN ON
AVERAGE COMMON EQUITY (ROACE) (simple average)
|
Based on
GAAP
|
|
|
|
8.07
|
%
|
7.96
|
%
|
Based on non-GAAP
(core)3
|
|
|
|
8.19
|
%
|
7.99
|
%
|
|
|
|
|
|
|
|
Three months ended
December 31
|
|
Years ended December
31
|
($ in
millions)
|
2016
|
2015
|
|
2016
|
2015
|
HAWAIIAN ELECTRIC
CONSOLIDATED OTHER OPERATION
AND MAINTENANCE (O&M) EXPENSE
|
GAAP (as
reported)
|
$
|
107.3
|
|
$
|
106.6
|
|
|
$
|
405.5
|
|
$
|
413.1
|
|
Excluding
O&M-related net income neutral items4
|
1.3
|
|
1.6
|
|
|
5.9
|
|
7.0
|
|
Excluding costs
related to the terminated merger with NextEra Energy
|
—
|
|
0.4
|
|
|
0.1
|
|
0.8
|
|
Excluding costs
related to the terminated LNG contract2
|
—
|
|
—
|
|
|
3.4
|
|
—
|
|
Non-GAAP (Adjusted
other O&M expense)
|
$
|
106.0
|
|
$
|
104.6
|
|
|
$
|
396.2
|
|
$
|
405.3
|
|
|
|
|
|
Note: Columns
may not foot due to rounding
|
|
|
|
1
Accounting principles generally accepted in the United States of
America
|
2
The LNG contract was terminated as it was conditioned on the merger
with NextEra Energy closing
|
3
Calculated as core net income divided by average GAAP common
equity
|
4
Expenses covered by surcharges or by third parties recorded in
revenues
|
Contact:
|
Clifford H.
Chen
|
Telephone: (808)
543-7300
|
|
Treasurer, Manager
Investor Relations & Strategic
Planning
|
E-mail:
ir@hei.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hawaiian-electric-industries-reports-2016-year-end--fourth-quarter-earnings-300406838.html
SOURCE Hawaiian Electric Industries, Inc.