ALLENTOWN, Pa., May 2, 2019 /PRNewswire/ -- PPL Corporation
(NYSE: PPL) on Thursday (5/2) announced first-quarter 2019 reported
earnings (GAAP) of $466 million, or
$0.64 per share, compared with
first-quarter 2018 reported earnings of $452
million, or $0.65 per
share.
Adjusting for special items, first-quarter 2019 earnings from
ongoing operations (non-GAAP) were $508
million, or $0.70 per share,
compared to $517 million, or
$0.74 per share, a year ago. The
decrease in ongoing earnings per share was driven by lower earnings
at PPL's U.S. segments, partially offset by higher earnings in the
U.K.
"We remain on track to deliver on our 2019 earnings forecast, as
well as our 2019 plan to invest $3.3
billion in infrastructure that benefits both customers and
shareowners," said William H.
Spence, PPL's chairman, president and chief executive
officer.
Reflecting special items recorded through the first quarter, PPL
estimates 2019 reported earnings per share would be $2.24 to $2.44 per
share.
PPL's forecast range for earnings from ongoing operations,
reaffirmed today, is $2.30 to
$2.50 per share, with a midpoint of
$2.40 per share.
PPL continues to expect 5 to 6 percent compound annual earnings
growth per share through 2020 based on the company's original 2018
earnings forecast midpoint of $2.30
per share. The company also reaffirmed its 2021 earnings forecast
range of $2.50 to $2.80 per
share.
First-Quarter 2019 Earnings Details
As discussed in this news release, reported earnings are
calculated in accordance with U.S. Generally Accepted Accounting
Principles (GAAP). "Earnings from ongoing operations" is a non-GAAP
financial measure that is adjusted for special items. See the
tables at the end of this news release for a reconciliation of
reported earnings to earnings from ongoing operations, including an
itemization of special items.
(Dollars in
millions, except for per-share amounts)
|
1st
Quarter
|
|
2019
|
|
2018
|
|
Change
|
Reported
earnings
|
$
|
466
|
|
$
|
452
|
|
|
3%
|
Reported earnings per
share
|
$
|
0.64
|
|
$
|
0.65
|
|
|
(2)%
|
|
|
|
|
|
|
|
1st
Quarter
|
|
2019
|
|
2018
|
|
Change
|
Earnings from ongoing
operations
|
$
|
508
|
|
$
|
517
|
|
|
(2)%
|
Earnings from ongoing
operations per share
|
$
|
0.70
|
|
$
|
0.74
|
|
|
(5)%
|
First-Quarter 2019 Earnings by Segment
|
1st
Quarter
|
Per
share
|
2019
|
|
2018
|
Reported
earnings
|
|
|
|
U.K.
Regulated
|
$
|
0.36
|
|
$
|
0.28
|
Kentucky
Regulated
|
0.16
|
|
0.19
|
Pennsylvania
Regulated
|
0.17
|
|
0.21
|
Corporate and
Other
|
|
(0.05)
|
|
(0.03)
|
Total
|
$
|
0.64
|
|
$
|
0.65
|
|
|
|
|
|
1st
Quarter
|
|
2019
|
|
2018
|
Special items
(expense) benefit
|
|
|
|
U.K.
Regulated
|
$
|
(0.06)
|
|
$
|
(0.09)
|
Kentucky
Regulated
|
—
|
|
—
|
Pennsylvania
Regulated
|
—
|
|
—
|
Corporate and
Other
|
—
|
|
—
|
Total
|
$
|
(0.06)
|
|
$
|
(0.09)
|
|
|
|
|
|
1st
Quarter
|
|
2019
|
|
2018
|
Earnings from
ongoing operations
|
|
|
|
U.K.
Regulated
|
$
|
0.42
|
|
$
|
0.37
|
Kentucky
Regulated
|
0.16
|
|
0.19
|
Pennsylvania
Regulated
|
0.17
|
|
0.21
|
Corporate and
Other
|
(0.05)
|
|
(0.03)
|
Total
|
$
|
0.70
|
|
$
|
0.74
|
Key Factors Impacting Earnings
In addition to the segment drivers outlined below, PPL's
reported earnings for the first quarter of 2019 included net
special-item after-tax charges of $42
million, or $0.06 per share,
primarily from foreign currency economic hedges. Reported earnings
for the first quarter of 2018 included net special-item after-tax
charges of $65 million, or
$0.09 per share, from foreign
currency economic hedges.
U.K. Regulated Segment
PPL's U.K. Regulated segment consists of the regulated
electricity delivery operations of Western Power Distribution
(WPD), which serves Southwest and Central
England and South
Wales.
Reported earnings in the first quarter of 2019 increased by
$0.08 per share compared with a year
ago. Earnings from ongoing operations in the first quarter of 2019
increased by $0.05 per share compared
with a year ago. Factors impacting U.K. Regulated segment earnings
results included $0.02 per share from
the effect of dilution. Excluding dilution, factors driving
earnings results included higher prices, higher pension income and
higher foreign currency exchange rates, partially offset by lower
sales
volumes.
Kentucky Regulated Segment
PPL's Kentucky Regulated segment primarily consists of the
regulated electricity and natural gas operations of Louisville Gas
and Electric Company and the regulated electricity operations of
Kentucky Utilities Company.
Reported earnings and earnings from ongoing operations in the
first quarter of 2019 decreased by $0.03 per share compared with a year ago, driven
primarily by higher operation and maintenance expense, lower sales
volumes due to weather and higher depreciation
expense.
Pennsylvania Regulated Segment
PPL's Pennsylvania Regulated segment consists of the regulated
electricity delivery operations of PPL Electric Utilities.
Reported earnings and earnings from ongoing operations in the
first quarter of 2019 decreased by $0.04 per share compared with a year ago. Factors
impacting Pennsylvania Regulated segment earnings results included
$0.01 per share from the effect of
dilution. Excluding dilution, factors driving earnings results
included the impact of reduced income taxes in rates due to U.S.
tax reform, higher operation and maintenance expense and higher
depreciation expense, partially offset by returns on additional
capital investments in
transmission.
Corporate and Other
PPL's Corporate and Other category primarily includes
unallocated corporate-level financing and other costs.
Reported earnings and earnings from ongoing operations in the
first quarter of 2019 decreased by $0.02 per share compared with a year ago. Factors
impacting Corporate and Other included higher income taxes and
higher operation and maintenance
expense.
2019 Earnings Forecast
PPL reaffirmed its 2019 earnings from ongoing operations
forecast of $2.30 to $2.50 per share with a midpoint of $2.40 per share. A breakdown by segment is
provided in the table
below.
|
|
2019 forecast
midpoint
|
|
2018
actual
|
Per
share
|
|
|
|
|
U.K.
Regulated
|
|
$
|
1.40
|
|
$
|
1.36
|
Kentucky
Regulated
|
|
0.55
|
|
0.59
|
Pennsylvania
Regulated
|
|
0.59
|
|
0.62
|
Corporate and
Other
|
|
|
(0.14)
|
|
(0.17)
|
Total
|
|
$
|
2.40
|
|
$
|
2.40
|
Earnings from ongoing operations is a non-GAAP measure that
could differ from reported earnings due to special items that are,
in management's view, non-recurring or otherwise not reflective of
the company's ongoing operations. PPL management is not able to
forecast if any of these factors will occur or whether any amounts
will be reported for future periods. Therefore, PPL is not able to
provide an equivalent GAAP measure for earnings guidance.
Reflecting special items recorded through the first quarter,
estimated 2019 reported earnings per share would be $2.24 to $2.44 per
share. See the tables at the end of this news release for a
complete reconciliation of reported earnings to earnings from
ongoing operations, including an itemization of all special
items.
PPL projects comparable earnings per share in 2019 compared to
last year due primarily to $0.13 of
share dilution and an assumed return to normal weather. Absent
these factors, PPL projects earnings per share would be higher in
2019. The expected dilution in 2019 is primarily due to the
projected settlement of the remaining 43.25 million shares of
common stock under two forward sale agreements completed in
May 2018 to address the impacts of
U.S. tax reform.
Headquartered in Allentown,
Pa., PPL Corporation (NYSE: PPL) is one of the largest
companies in the U.S. utility sector. PPL's seven high-performing,
award-winning utilities serve more than 10 million customers in the
U.S. and United Kingdom. With more
than 12,000 employees, the company is dedicated to providing
exceptional customer service and reliability and delivering
superior value for shareowners. To learn more, visit
www.pplweb.com.
(Note: All references to earnings per share in the text and
tables of this news release are stated in terms of diluted earnings
per share unless otherwise noted.)
Conference Call and Webcast
PPL invites interested parties to listen to a live Internet
webcast of management's teleconference with financial analysts
about first-quarter 2019 financial results at 10 a.m. Eastern time on Thursday, May 2. The call
will be webcast live, in audio format, together with slides of the
presentation. For those who are unable to listen to the live
webcast, a replay with slides will be accessible at
www.pplweb.com/investors for 90 days after the call. Interested
individuals can access the live conference call via telephone at
1-888-346-8683. International participants should call
1-412-902-4270. Participants will need to enter the following
"Elite Entry" number to join the conference: 7314670. Callers can
access the webcast link at www.pplweb.com/investors under
"Events."
Management utilizes "Earnings from Ongoing Operations" as a
non-GAAP financial measure that should not be considered as an
alternative to reported earnings, or net income, an indicator of
operating performance determined in accordance with GAAP. PPL
believes that Earnings from Ongoing Operations is useful and
meaningful to investors because it provides management's view of
PPL's earnings performance as another criterion in making
investment decisions. In addition, PPL's management uses Earnings
from Ongoing Operations in measuring achievement of certain
corporate performance goals, including targets for certain
executive incentive compensation. Other companies may use
different measures to present financial performance.
Earnings from Ongoing Operations is adjusted for the impact
of special items. Special items are presented in the financial
tables on an after-tax basis with the related income taxes on
special items separately disclosed. Income taxes on special items,
when applicable, are calculated based on the effective tax rate of
the entity where the activity is recorded. Special items may
include items such as:
- Unrealized gains or losses on foreign currency economic
hedges (as discussed below).
- Gains and losses on sales of assets not in the ordinary
course of business.
- Impairment charges.
- Significant workforce reduction and other restructuring
effects.
- Acquisition and divestiture-related adjustments.
- Other charges or credits that are, in management's view,
non-recurring or otherwise not reflective of the company's ongoing
operations.
Unrealized gains or losses on foreign currency economic
hedges include the changes in fair value of foreign currency
contracts used to hedge British-pound-sterling-denominated
anticipated earnings. The changes in fair value of these
contracts are recognized immediately within GAAP
earnings. Management believes that excluding these amounts
from Earnings from Ongoing Operations until settlement of the
contracts provides a better matching of the financial impacts of
those contracts with the economic value of PPL's underlying hedged
earnings.
Statements contained in this news release, including
statements with respect to future earnings, cash flows, dividends,
financing, regulation and corporate strategy, are "forward-looking
statements" within the meaning of the federal securities laws.
Although PPL Corporation believes that the expectations and
assumptions reflected in these forward-looking statements are
reasonable, these statements are subject to a number of risks and
uncertainties, and actual results may differ materially from the
results discussed in the statements. The following are among the
important factors that could cause actual results to differ
materially from the forward-looking statements: market demand for
energy in our U.S. service territories; weather conditions
affecting customer energy usage and operating costs; the effect of
any business or industry restructuring; the profitability and
liquidity of PPL Corporation and its subsidiaries; new accounting
requirements or new interpretations or applications of existing
requirements; operating performance of our facilities; the length
of scheduled and unscheduled outages at our generating plants;
environmental conditions and requirements and the related costs of
compliance; system conditions and operating costs; development of
new projects, markets and technologies; performance of new
ventures; asset or business acquisitions and dispositions; any
impact of severe weather on our business; receipt of necessary
government permits, approvals, rate relief and regulatory cost
recovery; capital market conditions and decisions regarding capital
structure; the impact of state, federal or foreign investigations
applicable to PPL Corporation and its subsidiaries; the outcome of
litigation against PPL Corporation and its subsidiaries; stock
price performance; the market prices of equity securities and the
impact on pension income and resultant cash funding requirements
for defined benefit pension plans; the securities and credit
ratings of PPL Corporation and its subsidiaries; political,
regulatory or economic conditions in states, regions or countries
where PPL Corporation or its subsidiaries conduct business,
including any potential effects of threatened or actual
cyberattack, terrorism, or war or other hostilities; British pound
sterling to U.S. dollar exchange rates; new state, federal or
foreign legislation, including new tax legislation; and the
commitments and liabilities of PPL Corporation and its
subsidiaries. Any such forward-looking statements should be
considered in light of such important factors and in conjunction
with factors and other matters discussed in PPL Corporation's Form
10-K and other reports on file with the Securities and Exchange
Commission.
Note to Editors: Visit our media website at
www.pplnewsroom.com for additional news and background about PPL
Corporation.
PPL CORPORATION
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED FINANCIAL INFORMATION (1)
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(Millions of
Dollars)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
Assets
|
|
|
|
Cash and cash
equivalents
|
|
$
|
518
|
|
$
|
621
|
Accounts
receivable
|
853
|
|
770
|
Unbilled
revenues
|
456
|
|
496
|
Fuel, materials and
supplies
|
274
|
|
303
|
Current price risk
management assets
|
109
|
|
109
|
Other current
assets
|
219
|
|
133
|
Property, Plant and
Equipment
|
|
|
|
Regulated utility
plant
|
40,752
|
|
39,734
|
Less: Accumulated
depreciation - regulated utility plant
|
|
7,532
|
|
7,310
|
Regulated utility
plant, net
|
33,220
|
|
32,424
|
Non-regulated
property, plant and equipment
|
357
|
|
355
|
Less: Accumulated
depreciation - non-regulated property, plant and
equipment
|
104
|
|
101
|
Non-regulated
property, plant and equipment, net
|
253
|
|
254
|
Construction work in
progress
|
1,834
|
|
1,780
|
Property, Plant and
Equipment, net
|
35,307
|
|
34,458
|
Noncurrent regulatory
assets
|
1,666
|
|
1,673
|
Goodwill and other
intangibles
|
3,988
|
|
3,878
|
Pension benefit
asset
|
715
|
|
535
|
Noncurrent price risk
management assets
|
172
|
|
228
|
Other noncurrent
assets
|
290
|
|
192
|
Total
Assets
|
$
|
44,567
|
|
$
|
43,396
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term
debt
|
$
|
1,428
|
|
$
|
1,430
|
Long-term debt due
within one year
|
202
|
|
530
|
Accounts
payable
|
823
|
|
989
|
Other current
liabilities
|
1,608
|
|
1,614
|
Long-term
debt
|
21,114
|
|
20,069
|
Deferred income taxes
and investment tax credits
|
3,066
|
|
2,922
|
Accrued pension
obligations
|
718
|
|
771
|
Asset retirement
obligations
|
267
|
|
264
|
Noncurrent regulatory
liabilities
|
2,700
|
|
2,714
|
Other noncurrent
liabilities
|
469
|
|
436
|
Common stock and
additional paid-in capital
|
11,058
|
|
11,028
|
Earnings
reinvested
|
4,761
|
|
4,593
|
Accumulated other
comprehensive loss
|
(3,647)
|
|
(3,964)
|
Total Liabilities
and Equity
|
$
|
44,567
|
|
$
|
43,396
|
|
|
(1)
|
The Financial
Statements in this news release have been condensed and summarized
for purposes of this presentation. Please refer to PPL
Corporation's periodic filings with the Securities and Exchange
Commission for full financial statements, including note
disclosure.
|
PPL CORPORATION
AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Income (Unaudited)
|
(Millions of
Dollars, except share data)
|
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Operating
Revenues
|
$
|
2,079
|
|
$
|
2,126
|
|
|
|
|
Operating
Expenses
|
|
|
|
Operation
|
|
|
|
Fuel
|
194
|
|
214
|
Energy
purchases
|
250
|
|
241
|
Other operation and
maintenance
|
490
|
|
468
|
Depreciation
|
284
|
|
269
|
Taxes, other than
income
|
80
|
|
83
|
Total Operating
Expenses
|
1,298
|
|
1,275
|
|
|
|
|
Operating
Income
|
781
|
|
851
|
|
|
|
|
Other Income
(Expense) - net
|
52
|
|
(43)
|
|
|
|
|
Interest
Expense
|
241
|
|
239
|
|
|
|
|
Income Before
Income Taxes
|
592
|
|
569
|
|
|
|
|
Income
Taxes
|
126
|
|
117
|
|
|
|
|
Net
Income
|
$
|
466
|
|
$
|
452
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
Net Income Available
to PPL Common Shareowners:
|
|
Basic
|
$
|
0.65
|
|
$
|
0.65
|
Diluted
|
$
|
0.64
|
|
$
|
0.65
|
|
|
|
|
Weighted-Average
Shares of Common Stock Outstanding (in thousands)
|
|
|
|
Basic
|
|
721,023
|
|
694,514
|
Diluted
|
|
729,953
|
|
695,322
|
PPL
CORPORATION AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(Millions of
Dollars)
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Cash Flows from
Operating Activities
|
|
|
|
Net income
|
$
|
466
|
|
$
|
452
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
Depreciation
|
284
|
|
269
|
Amortization
|
22
|
|
21
|
Defined benefit plans
- (income)
|
(66)
|
|
(50)
|
Deferred income taxes
and investment tax credits
|
89
|
|
59
|
Unrealized losses on
derivatives, and other hedging activities
|
53
|
|
85
|
Other
|
11
|
|
12
|
Change in current
assets and current liabilities
|
|
|
|
Accounts
receivable
|
(57)
|
|
(71)
|
Accounts
payable
|
(94)
|
|
(36)
|
Prepayments
|
(86)
|
|
(73)
|
Accrued
interest
|
48
|
|
39
|
Unbilled
revenues
|
48
|
|
58
|
Other
|
(87)
|
|
(7)
|
Other operating
activities
|
|
|
|
Defined benefit plans
- funding
|
(127)
|
|
(150)
|
Other
|
(30)
|
|
|
(42)
|
Net cash provided by
operating activities
|
474
|
|
566
|
Cash Flows from
Investing Activities
|
|
|
|
Expenditures for
property, plant and equipment
|
(729)
|
|
(750)
|
Purchase of
investments
|
(55)
|
|
—
|
Proceeds from the
sale of investments
|
57
|
|
—
|
Other investing
activities
|
5
|
|
(3)
|
Net cash used in
investing activities
|
(722)
|
|
(753)
|
Cash Flows from
Financing Activities
|
|
|
|
Issuance of long-term
debt
|
—
|
|
144
|
Issuance of common
stock
|
22
|
|
100
|
Payment of common
stock dividends
|
(296)
|
|
(273)
|
Net increase in
short-term debt
|
424
|
|
369
|
Other financing
activities
|
(8)
|
|
|
(9)
|
Net cash provided by
financing activities
|
142
|
|
331
|
Effect of Exchange
Rates on Cash, Cash Equivalents and Restricted Cash
|
3
|
|
(2)
|
Net Increase
(Decrease) in Cash, Cash Equivalents and Restricted
Cash
|
(103)
|
|
142
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of Period
|
643
|
|
511
|
Cash, Cash
Equivalents and Restricted Cash at End of Period
|
$
|
540
|
|
$
|
653
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information
|
|
|
|
Significant non-cash
transactions:
|
|
|
|
Accrued expenditures
for property, plant and equipment at March 31,
|
$
|
322
|
|
$
|
313
|
Accrued expenditures
for intangible assets at March 31,
|
$
|
64
|
|
$
|
65
|
Key Indicators
(Unaudited)
|
|
|
|
|
|
|
12 Months
Ended
|
|
March
31
|
Financial
|
2019
|
|
|
2018
|
|
|
|
|
|
Dividends declared
per share of common stock
|
$
|
1.6425
|
|
|
$
|
1.595
|
Book value per share
(1)(2)
|
$
|
16.87
|
|
|
$
|
16.03
|
Market price per
share (1)
|
$
|
31.74
|
|
|
$
|
28.29
|
Dividend
yield
|
5.2%
|
|
|
5.6%
|
Dividend payout ratio
(3)
|
64.2%
|
|
|
93.8%
|
Dividend payout ratio
- earnings from ongoing operations (3)(4)
|
69.6%
|
|
|
67.0%
|
Return on common
equity
|
15.9%
|
|
|
11.0%
|
Return on common
equity - earnings from ongoing operations (4)
|
14.6%
|
|
|
15.4%
|
Spot rate of U.S.
dollar per British pound sterling for Balance Sheet translation
(5)
|
$
|
1.33
|
|
|
$
|
1.28
|
Average rate of U.S.
dollar per British pound sterling for Statement of Income
translation (6)
|
$
|
1.34
|
|
|
$
|
1.26
|
|
|
(1)
|
End of
period.
|
(2)
|
Based on 721,371 and
697,383 shares of common stock outstanding (in thousands) at
March 31, 2019 and March 31, 2018.
|
(3)
|
Based on diluted
earnings per share.
|
(4)
|
Calculated using
earnings from ongoing operations, which is a non-GAAP financial
measure that includes adjustments described in the text and tables
of this news release.
|
(5)
|
As of February 28,
2019 and November 30, 2018 as WPD is consolidated on a one-month
lag.
|
(6)
|
Represents a
year-to-date average and includes the impact of foreign exchange
hedges.
|
Operating -
Domestic & International Electricity Sales
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
|
|
|
|
Percent
|
(GWh)
|
2019
|
|
2018
|
|
Change
|
|
|
|
|
|
|
PA Regulated
Segment
|
|
|
|
|
|
Retail
Delivered
|
10,118
|
|
10,040
|
|
0.8%
|
|
|
|
|
|
|
KY Regulated
Segment
|
|
|
|
|
|
Retail
Delivered
|
7,611
|
|
7,808
|
|
(2.5)%
|
Wholesale
(1)
|
542
|
|
706
|
|
(23.2)%
|
Total
|
8,153
|
|
8,514
|
|
(4.2)%
|
|
|
|
|
|
|
Total
U.S.
|
18,271
|
|
18,554
|
|
(1.5)%
|
|
|
|
|
|
|
U.K. Regulated
Segment
|
|
|
|
|
|
Delivered
|
19,982
|
|
20,310
|
|
(1.6)%
|
|
|
(1)
|
Represents
FERC-regulated municipal and unregulated off-system
sales.
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date March
31, 2019
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
264
|
|
$
|
117
|
|
$
|
121
|
|
$
|
(36)
|
|
$
|
466
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign currency
economic hedges, net of tax of $11
|
(40)
|
|
—
|
|
—
|
|
—
|
|
(40)
|
Talen litigation
costs, net of tax of $0
|
|
—
|
|
|
—
|
|
—
|
|
|
(2)
|
|
(2)
|
Total Special
Items
|
(40)
|
|
—
|
|
—
|
|
(2)
|
|
(42)
|
Earnings from
Ongoing Operations
|
$
|
304
|
|
$
|
117
|
|
$
|
121
|
|
$
|
(34)
|
|
$
|
508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
0.36
|
|
$
|
0.16
|
|
$
|
0.17
|
|
$
|
(0.05)
|
|
$
|
0.64
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign currency
economic hedges
|
(0.06)
|
|
—
|
|
|
—
|
|
—
|
|
(0.06)
|
Total Special
Items
|
(0.06)
|
|
—
|
|
—
|
|
—
|
|
(0.06)
|
Earnings from
Ongoing Operations
|
$
|
0.42
|
|
$
|
0.16
|
|
$
|
0.17
|
|
$
|
(0.05)
|
|
$
|
0.70
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date March
31, 2018
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
197
|
|
$
|
133
|
|
$
|
148
|
|
$
|
(26)
|
|
$
|
452
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign currency
economic hedges, net of tax of $17
|
|
(65)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(65)
|
Total Special
Items
|
(65)
|
|
—
|
|
—
|
|
—
|
|
(65)
|
Earnings from
Ongoing Operations
|
$
|
262
|
|
$
|
133
|
|
$
|
148
|
|
$
|
(26)
|
|
$
|
517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
0.28
|
|
$
|
0.19
|
|
$
|
0.21
|
|
$
|
(0.03)
|
|
$
|
0.65
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
Foreign currency
economic hedges
|
(0.09)
|
|
—
|
|
—
|
|
—
|
|
(0.09)
|
Total Special
Items
|
(0.09)
|
|
—
|
|
—
|
|
—
|
|
(0.09)
|
Earnings from
Ongoing Operations
|
$
|
0.37
|
|
$
|
0.19
|
|
$
|
0.21
|
|
$
|
(0.03)
|
|
$
|
0.74
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date December
31, 2018
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
1,114
|
|
$
|
411
|
|
$
|
431
|
|
$
|
(129)
|
|
$
|
1,827
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign currency
economic hedges, net of tax of ($39)
|
148
|
|
—
|
|
—
|
|
—
|
|
148
|
U.S. tax
reform
|
3
|
|
2
|
|
—
|
|
(5)
|
|
—
|
Kentucky state tax
reform
|
—
|
|
(9)
|
|
—
|
|
—
|
|
(9)
|
IT transformation,
net of tax of $2
|
—
|
|
—
|
|
(5)
|
|
—
|
|
(5)
|
Talen litigation
costs, net of tax of $2
|
—
|
|
—
|
|
—
|
|
(7)
|
|
(7)
|
Death benefit, net of
tax of $1
|
|
(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(5)
|
Total Special
Items
|
146
|
|
(7)
|
|
(5)
|
|
(12)
|
|
122
|
Earnings from
Ongoing Operations
|
$
|
968
|
|
$
|
418
|
|
$
|
436
|
|
$
|
(117)
|
|
$
|
1,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
1.57
|
|
$
|
0.58
|
|
$
|
0.61
|
|
$
|
(0.18)
|
|
$
|
2.58
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign currency
economic hedges
|
0.21
|
|
—
|
|
—
|
|
—
|
|
0.21
|
U.S. tax
reform
|
0.01
|
|
—
|
|
—
|
|
—
|
|
0.01
|
Kentucky state tax
reform
|
—
|
|
(0.01)
|
|
—
|
|
—
|
|
(0.01)
|
IT
transformation
|
—
|
|
—
|
|
(0.01)
|
|
—
|
|
(0.01)
|
Talen litigation
costs
|
—
|
|
—
|
|
—
|
|
(0.01)
|
|
(0.01)
|
Death
benefit
|
(0.01)
|
|
—
|
|
—
|
|
—
|
|
(0.01)
|
Total Special
Items
|
0.21
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
0.18
|
Earnings from
Ongoing Operations
|
$
|
1.36
|
|
$
|
0.59
|
|
$
|
0.62
|
|
$
|
(0.17)
|
|
$
|
2.40
|
Reconciliation of
PPL's Forecast of Reported Earnings to Earnings from Ongoing
Operations
|
|
(After-Tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecast (per-share -
diluted)
|
|
2019
Midpoint
|
|
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
High
|
|
Low
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
|
2019
|
|
2019
|
Reported
Earnings
|
$
|
1.34
|
|
$
|
0.55
|
|
$
|
0.59
|
|
$
|
(0.14)
|
|
$
|
2.34
|
|
$
|
2.44
|
|
$
|
2.24
|
Less: Special Items
(expense) benefit:(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
economic hedges
|
|
(0.06)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.06)
|
|
|
(0.06)
|
|
(0.06)
|
Total Special
Items
|
(0.06)
|
|
—
|
|
—
|
|
—
|
|
(0.06)
|
|
(0.06)
|
|
(0.06)
|
Earnings from
Ongoing Operations
|
$
|
1.40
|
|
$
|
0.55
|
|
$
|
0.59
|
|
$
|
(0.14)
|
|
$
|
2.40
|
|
$
|
2.50
|
|
$
|
2.30
|
(1)
|
Reflects only
special items recorded through March 31, 2019. PPL is not able to
forecast special items for future periods.
|
Contacts:
|
For news media – Ryan
Hill, 610-774-5997
|
|
For financial
analysts – Andy Ludwig, 610-774-3389
|
View original
content:http://www.prnewswire.com/news-releases/ppl-corporation-reports-first-quarter-2019-earnings-300842643.html
SOURCE PPL Corporation