MGE Energy Reports Fourth-Quarter Earnings
February 23 2018 - 1:07PM
Business Wire
MGE Energy, Inc. (Nasdaq: MGEE) today reported financial results
for the fourth quarter and full year 2017.
MGE Energy's GAAP (Generally Accepted Accounting Principles)
earnings for the full year of 2017 were $97.6 million, or
$2.82 per share, compared to $75.6 million, or $2.18 per
share, for the same period in the prior year. Earnings for 2017
included a 62 cent per share one-time, non-cash tax benefit from
nonregulated operations as a result of the Tax Cuts and Jobs Act
(Tax Act) and a 3 cent per share expense from a voluntary
contribution to the Madison Gas and Electric Foundation. Excluding
these amounts, adjusted non-GAAP earnings were $2.23 per share for
the full year of 2017 compared to $2.18 per share in 2016.
MGE Energy's GAAP earnings for the fourth quarter of 2017 were
$36.1 million, or $1.04 per share, compared to $14.5 million, or 42
cents per share, in the fourth quarter of 2016. Earnings for the
fourth quarter of 2017 included a 62 cent per share one-time,
non-cash tax benefit from nonregulated operations as a result of
the Tax Act and a 3 cent per share expense from a voluntary
contribution to the Madison Gas and Electric Foundation.
Adjusted non-GAAP earnings were 45 cents per share in the fourth
quarter of 2017 compared to 42 cents per share in the fourth
quarter of 2016. The increase in adjusted earnings was driven by
customer growth and colder weather during the quarter. There were
approximately 2,000 more electric and approximately 4,000 more gas
customers in 2017, primarily driven by residential customer
growth.
The tables below include a reconciliation of GAAP to adjusted
earnings per share (EPS).
Three Months Ended
December 31,
For the Years Ended
December 31,
2017 2016 2017 2016 MGE
Energy GAAP $1.04 $0.42 $2.82 $2.18 Tax benefit from the Tax Act
(0.62 ) - (0.62 ) - Voluntary contribution (net of tax) 0.03
- 0.03 - MGE Energy adjusted EPS $0.45 $0.42 $2.23
$2.18
Non-GAAP earnings measures
We have provided adjusted earnings (non-GAAP earnings) in this
press release as a complement to, and not as an alternative to,
reported earnings presented in accordance with GAAP. Adjusted
earnings exclude a one-time reduction in income tax expense related
to a remeasurement of our deferred taxes as a result of the Tax
Cuts and Jobs Act of 2017 and an expense associated with a
voluntary contribution. We believe the adjusted earnings provide a
measure to understand and compare the company's base operating
performance across periods. Therefore, we believe that the
presentation of adjusted earnings is relevant and useful to
investors to understand MGE Energy's operating performance.
Management uses such measures internally to evaluate the company's
performance and manage its operations. MGE Energy's management also
uses income from continuing operations, as adjusted, to determine
performance-based compensation.
About MGE Energy
MGE Energy is a public utility holding company. Its principal
subsidiary, Madison Gas and Electric, generates and distributes
electricity to 151,000 customers in Dane County, Wis., and
purchases and distributes natural gas to 158,000 customers in seven
south-central and western Wisconsin counties. MGE's roots in the
Madison area date back more than 150 years.
MGE Energy, Inc.
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended December 31, 2017
2016 Operating revenue $140,274 $138,925
Operating income $26,274 $23,958 Net income $36,134 $14,502
Earnings per share (basic and diluted) $1.04 $0.42 Weighted average
shares outstanding (basic and diluted) 34,668 34,668
For
the Years Ended December 31, 2017 2016 Operating
revenue $563,099 $544,745 Operating income $128,736 $128,228 Net
income $97,606 $75,560 Earnings per share (basic and diluted) $2.82
$2.18 Weighted average shares outstanding (basic and diluted)
34,668 34,668
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version on businesswire.com: http://www.businesswire.com/news/home/20180223005643/en/
MGE Energy, Inc.Dana BrueckManager - Corporate
Communications608-252-7282dbrueck@mge.com
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