2009 EARNINGS GUIDANCE UPDATED ST. LOUIS, Mo., May 1
/PRNewswire-FirstCall/ -- Ameren Corporation (NYSE: AEE) today
announced first quarter 2009 net income in accordance with
generally accepted accounting principles (GAAP) of $141 million, or
66 cents per share, compared to first quarter 2008 GAAP net income
of $138 million, or 66 cents per share. Excluding the effects of
mark-to-market activity and the 2007 Illinois electric rate relief
settlement in each year, Ameren recorded first quarter 2009 core
(non-GAAP) net income of $114 million, or 54 cents per share,
compared to first quarter 2008 core (non-GAAP) net income of $134
million, or 64 cents per share. A reconciliation of GAAP to core
(non-GAAP) earnings per share is as follows: First Quarter 2009
2008 GAAP earnings per share $0.66 $0.66 Illinois electric rate
relief settlement, net 0.02 0.03 Mark-to-market activity, net
(0.14) (0.05) Core (non-GAAP) earnings per share $0.54 $0.64 The
decline in core (non-GAAP) earnings per share in the first quarter
of 2009, versus the same period in 2008, was principally due to
lower electric and gas sales volumes, higher fuel and related
transportation prices, the impact of a severe winter ice storm and
the effect of gas rate redesign in the Illinois regulated utility
segment. The items noted above more than offset the benefit to
earnings of new utility service rates in Illinois, effective
October 1, 2008, and in Missouri, effective March 1, 2009, among
other factors. "Despite the challenges of the current economic
downturn, we remain focused on executing our strategy," said Thomas
R. Voss, president and chief executive officer of Ameren
Corporation. "That strategy calls for prudently investing in our
regulated businesses to meet our customers' needs and expectations,
achieving constructive regulatory frameworks and returns and
optimizing our non-rate-regulated generating assets. I expect
execution of this strategy will position us to deliver solid,
long-term shareholder value." In the first quarter of 2009, milder
weather and the absence of a leap day contributed to a 6% decline
in kilowatthour sales to residential customers and a 2% sales
decline to commercial customers, compared to the year-ago quarter.
Absent these factors, Ameren estimates that first quarter 2009
residential and commercial kilowatthour sales each declined a more
modest 1%, versus the year-ago period. The weak economy
significantly impacted industrial electric sales. They declined 13%
from the year-ago quarter, excluding the impact of reduced demand
from AmerenUE's largest customer, the Noranda Aluminum, Inc.,
smelter plant in New Madrid, Missouri. Noranda's plant sustained
damage because of a power interruption on non-Ameren-owned power
lines during a severe January ice storm. This loss of operating
capacity at Noranda is expected to last through much of 2009. At
the non-rate-regulated generation segment, first quarter 2009
earnings were relatively flat, with those of the year-ago quarter.
These 2009 results reflected proactive forward sales of 2009
generation in prior years at higher-than-current market prices.
2009 Earnings Guidance Ameren also announced today that it updated
its expectations for full-year 2009 earnings. GAAP earnings for
2009 are now expected to be in the range of $2.63 to $2.98 per
share, down from the prior $2.68 to $3.08, and core (non-GAAP)
earnings are now expected to be in the range of $2.70 to $3.05 per
share, down from the prior $2.75 to $3.15 per share. An estimated 7
cents per share negative impact in 2009 from the 2007 settlement
agreement among parties in Illinois to provide comprehensive
electric rate relief and customer assistance is excluded from core
(non-GAAP) earnings guidance. Any net unrealized mark-to-market
gains or losses will impact GAAP earnings, but are excluded from
GAAP and core (non-GAAP) earnings guidance because the company is
unable to reasonably estimate the impact of any such gains or
losses. The updated GAAP and core (non-GAAP) guidance include the
effects of a severe January 2009 winter storm, including an
estimate of the related full-year impact of reduced electric
margins due to the loss of operating capacity at the Noranda
Aluminum smelter plant. The prior earnings guidance, which was
issued in mid-February, had excluded these storm-related impacts.
In addition to incorporating the severe storm costs and the
estimated impact on electric margins of the related Noranda outage,
the revised earnings guidance is also based on higher expected
financing costs for new credit facilities and lower expected sales
to industrial customers than had been included in the prior
guidance. These negatives are offset, in part, by higher expected
long-term sales for resale. Ameren expects its business segments to
provide the following contributions to full year 2009 core
(non-GAAP) earnings per share: Missouri Regulated $1.15 - $1.25
Illinois Regulated 0.40 - 0.50 Non-rate-regulated Generation 1.15 -
1.30 2009 Core (Non-GAAP) Earnings Guidance Range $2.70 - $3.05
Ameren's earnings guidance for 2009 assumes normal weather and is
subject to, among other things, regulatory decisions and
legislative actions, plant operations, energy and capital and
credit market conditions, economic conditions, severe storms,
unusual or otherwise unexpected gains or losses, and other risks
and uncertainties outlined, or referred to, in the Forward-looking
Statements section of this press release. Missouri Regulated
Operations Earnings Core (non-GAAP) earnings in the first quarter
of 2009 were $6 million, down from $45 million in the first quarter
of 2008. This decline was primarily due to lower native load
electric sales reflecting the weak economy, milder weather, the
outage at the Noranda Aluminum smelter, as well as lower margins on
electric off-system sales. In addition, there were higher
distribution system reliability expenses, including storm costs,
higher fuel and related transportation costs and a 12-day
unscheduled outage at the Callaway Nuclear Plant. The above
negatives were offset, in part, by new, higher electric rates,
effective March 1, 2009. Missouri regulated operations recorded
GAAP earnings in the first quarter of 2009 of $23 million, $29
million less than in the first quarter of 2008. In addition to the
items noted above, this GAAP earnings decrease was reduced by net
unrealized mark-to-market activity. Illinois Regulated Operations
Earnings Core (non-GAAP) earnings in the first quarter of 2009 were
$25 million, up from $18 million in the first quarter of 2008. This
increase was primarily due to new, higher electric and natural gas
delivery service rates, effective October 1, 2008. The increase was
offset, in part, by lower electric and natural gas sales,
reflecting the weak economy and milder weather and the previously
discussed seasonal gas rate redesign. Effective October 1, 2008,
the Illinois Commerce Commission authorized a change in the way
natural gas distribution costs are recovered from residential and
commercial customers. This rate redesign shifts some revenues from
the first quarter to other quarters with no expected impact on
full-year earnings. Illinois regulated operations recorded GAAP
earnings in the first quarter of 2009 of $25 million, up $9 million
from the first quarter of 2008. In addition to the items noted
above, this GAAP earnings increase was primarily due to lower costs
in 2009 related to the 2007 Illinois electric settlement agreement.
Non-rate-regulated Generation Operations Earnings Core (non-GAAP)
earnings in the first quarter of 2009 were $85 million, versus $80
million in the first quarter of 2008. This increase in earnings was
mainly driven by higher realized margins reflecting proactive
forward sales of 2009 generation in prior years and lower plant
operations and maintenance expenses. These positives were partly
offset by higher fuel and related transportation prices, among
other things. GAAP earnings from non-rate-regulated generation
operations in the first quarter of 2009 were $93 million, compared
to $78 million in the first quarter of 2008. In addition to the
items noted above, this increase in GAAP earnings was driven by
higher net unrealized mark-to-market gains and lower costs related
to the 2007 Illinois electric settlement agreement. Analyst
Conference Call Ameren will conduct a conference call for financial
analysts at 9:00 a.m. Central Time on Friday, May 1, to discuss
first quarter 2009 earnings and other matters. Investors, the news
media and the public may listen to a live Internet broadcast of the
call at http://www.ameren.com/ by clicking on "Q1 2009 Ameren
Corporation Earnings Conference Call," followed by the appropriate
audio link. An accompanying slide presentation will be available on
Ameren's Web site. This presentation will be posted in the
"Investors" section of the Web site under "Presentations." The
analyst call will also be available for replay on the Internet for
one year. In addition, a telephone playback of the conference call
will be available beginning at approximately noon Central Time,
from May 1 through May 7, by dialing, U.S. (800) 406-7325;
international (303) 590-3030 and entering the number: 4053513#.
About Ameren With assets of $23 billion, Ameren serves
approximately 2.4 million electric customers and almost one million
natural gas customers in a 64,000-square-mile area of Missouri and
Illinois. Ameren owns a diverse mix of electric generating plants
strategically located in its Midwest market with a generating
capacity of more than 16,400 megawatts. Regulation G Statement
Ameren has presented certain information in this release on a
diluted cents per share basis. These diluted per share amounts
reflect certain factors that directly impact Ameren's total
earnings per share. The core (non-GAAP) earnings per share and core
(non-GAAP) earnings per share guidance excludes one or more of the
following: the earnings impact of the settlement agreement among
parties in Illinois for comprehensive electric rate relief and
customer assistance and net mark-to-market gains or losses. Ameren
uses core (non-GAAP) earnings internally for financial planning and
for analysis of performance. Ameren also uses core (non-GAAP)
earnings as primary performance measurements when communicating
with analysts and investors regarding our earnings results and
outlook, as the company believes it allows it to more accurately
compare the company's ongoing performance across periods. In
providing consolidated and segment core (non-GAAP) earnings
guidance, there could be differences between core (non-GAAP)
earnings and earnings prepared in accordance with GAAP for certain
items, such as those listed above. Ameren is unable to estimate the
impact, if any, on future GAAP earnings of such items.
Forward-looking Statements Statements in this release not based on
historical facts are considered "forward-looking" and, accordingly,
involve risks and uncertainties that could cause actual results to
differ materially from those discussed. Although such
forward-looking statements have been made in good faith and are
based on reasonable assumptions, there is no assurance that the
expected results will be achieved. These statements include
(without limitation) statements as to future expectations, beliefs,
plans, strategies, objectives, events, conditions, and financial
performance. In connection with the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, we are providing
this cautionary statement to identify important factors that could
cause actual results to differ materially from those anticipated.
The following factors, in addition to those discussed elsewhere in
this release and in our filings with the Securities and Exchange
Commission, could cause actual results to differ materially from
management expectations suggested in such forward-looking
statements: -- regulatory or legislative actions, including changes
in regulatory policies and ratemaking determinations and future
rate proceedings or future legislative actions that seek to limit
or reverse rate increases; -- uncertainty as to the continued
effectiveness of the Illinois power procurement process; -- changes
in laws and other governmental actions, including monetary and
fiscal policies; -- changes in laws or regulations that adversely
affect the ability of electric distribution companies and other
purchasers of wholesale electricity to pay their suppliers,
including AmerenUE and Ameren Energy Marketing Company; --
enactment of legislation taxing electric generators, in Illinois or
elsewhere; -- the effects of increased competition in the future
due to, among other things, deregulation of certain aspects of our
business at both the state and federal levels, and the
implementation of deregulation, such as occurred when the electric
rate freeze and power supply contracts expired in Illinois at the
end of 2006; -- increasing capital expenditure and operating
expense requirements and our ability to recover these costs in a
timely fashion in light of regulatory lag; -- the effects of
participation in the Midwest Independent Transmission System
Operator, Inc.; -- the cost and availability of fuel such as coal,
natural gas, and enriched uranium used to produce electricity; the
cost and availability of purchased power and natural gas for
distribution; and the level and volatility of future market prices
for such commodities, including the ability to recover the costs
for such commodities; -- the effectiveness of our risk management
strategies and the use of financial and derivative instruments; --
prices for power in the Midwest, including forward prices; --
business and economic conditions, including their impact on
interest rates, bad debt expense, and demand for our products; --
disruptions of the capital markets or other events that make the
Ameren companies' access to necessary capital, including short-term
credit and liquidity, impossible, more difficult or more costly; --
our assessment of our liquidity; -- the impact of the adoption of
new accounting standards and the application of appropriate
technical accounting rules and guidance; -- actions of credit
rating agencies and the effects of such actions; -- weather
conditions and other natural phenomena, including impacts on our
customers; -- the impact of system outages caused by severe weather
conditions or other events; -- generation plant construction,
installation and performance, including costs associated with
AmerenUE's Taum Sauk pumped-storage hydroelectric plant incident
and the plant's future operation; -- impairments of long-lived
assets or goodwill; -- recoverability through insurance of costs
associated with AmerenUE's Taum Sauk pumped-storage hydroelectric
plant incident; -- operation of AmerenUE's nuclear power facility,
including planned and unplanned outages, and decommissioning costs;
-- the effects of strategic initiatives, including acquisitions and
divestitures; -- the impact of current environmental regulations on
utilities and power generating companies and the expectation that
more stringent requirements, including those related to greenhouse
gases, will be enacted over time, which could have a negative
financial effect; -- labor disputes, future wage and employee
benefits costs, including changes in discount rates and returns on
benefit plan assets; -- the inability of our counterparties and
affiliates to meet their obligations with respect to contracts,
credit facilities and financial instruments; -- the cost and
availability of transmission capacity for the energy generated by
the Ameren companies' facilities or required to satisfy energy
sales made by the Ameren companies; -- legal and administrative
proceedings; and -- acts of sabotage, war, terrorism or
intentionally disruptive acts. Given these uncertainties, undue
reliance should not be placed on these forward-looking statements.
Except to the extent required by the federal securities laws, we
undertake no obligation to update or revise publicly any
forward-looking statements to reflect new information or future
events. AMEREN CORPORATION (AEE) CONSOLIDATED BALANCE SHEET
(Unaudited, in millions) March 31, December 31, 2009 2008 ASSETS
Current Assets: Cash and cash equivalents $304 $92 Accounts
receivable - trade, net 554 502 Unbilled revenue 247 427
Miscellaneous accounts and notes receivable 318 292 Materials and
supplies 657 842 Mark-to-market derivative assets 324 207 Current
portion of regulatory assets 159 79 Other current assets 194 153
Total current assets 2,757 2,594 Property and Plant, Net 16,781
16,567 Investments and Other Assets: Nuclear decommissioning trust
fund 223 239 Goodwill 831 831 Intangible assets 160 167 Regulatory
assets 1,682 1,653 Other assets 637 606 Total investments and other
assets 3,533 3,496 TOTAL ASSETS $23,071 $22,657 LIABILITIES AND
EQUITY Current Liabilities: Current maturities of long-term debt
$380 $380 Short-term debt 997 1,174 Accounts and wages payable 519
813 Taxes accrued 83 54 Interest accrued 167 107 Mark-to-market
derivative liabilities 273 155 Other current liabilities 462 380
Total current liabilities 2,881 3,063 Long-term Debt, Net 6,900
6,554 Deferred Credits and Other Liabilities: Accumulated deferred
income taxes, net 2,159 2,131 Accumulated deferred investment tax
credits 97 100 Regulatory liabilities 1,296 1,291 Asset retirement
obligations 412 406 Pension and other postretirement benefits 1,514
1,495 Other deferred credits and liabilities 539 438 Total deferred
credits and other liabilities 6,017 5,861 Ameren Corporation
Stockholders' Equity: Common stock 2 2 Other paid-in capital,
principally premium on common stock 4,812 4,780 Retained earnings
2,241 2,181 Accumulated other comprehensive income 6 - Total Ameren
Corporation stockholders' equity 7,061 6,963 Noncontrolling
Interests 212 216 Total equity 7,273 7,179 TOTAL LIABILITIES AND
EQUITY $23,071 $22,657 AMEREN CORPORATION (AEE) CONSOLIDATED
STATEMENT OF INCOME (Unaudited, in millions, except per share
amounts) Three Months Ended March 31, 2009 2008 Operating Revenues:
Electric $1,395 $1,469 Gas 521 612 Total operating revenues 1,916
2,081 Operating Expenses: Fuel 274 302 Purchased power 233 287 Gas
purchased for resale 383 459 Other operations and maintenance 421
430 Depreciation and amortization 174 169 Taxes other than income
taxes 110 113 Total operating expenses 1,595 1,760 Operating Income
321 321 Other Income and Expenses: Miscellaneous income 16 19
Miscellaneous expense (4) (4) Total other income 12 15 Interest
Charges 118 100 Income Before Income Taxes 215 236 Income Taxes 70
87 Net Income 145 149 Less: Net Income Attributable to
Noncontrolling Interests 4 11 Net Income Attributable to Ameren
Corporation $141 $138 Earnings per Common Share - Basic and Diluted
$0.66 $0.66 Average Common Shares Outstanding 212.7 208.7 AMEREN
CORPORATION (AEE) CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited,
in millions) Three Months Ended March 31, 2009 2008 Cash Flows From
Operating Activities: Net income $145 $149 Adjustments to reconcile
net income to net cash provided by operating activities: Gain on
sales of emission allowances - (2) Net mark-to-market gain on
derivatives (51) (16) Depreciation and amortization 176 180
Amortization of nuclear fuel 12 11 Amortization of debt issuance
costs and premium/ discounts 4 5 Deferred income taxes and
investment tax credits, net 32 23 Other (1) (1) Changes in assets
and liabilities: Receivables 119 (52) Materials and supplies 185
179 Accounts and wages payable (245) (80) Taxes accrued, net 29 4
Assets, other 45 63 Liabilities, other 128 44 Pension and other
postretirement benefits 36 22 Counterparty collateral, net (53)
(88) Taum Sauk costs, net of insurance recoveries (24) (112) Net
cash provided by operating activities 537 329 Cash Flows From
Investing Activities: Capital expenditures (424) (420) Nuclear fuel
expenditures (3) (102) Purchases of securities - nuclear
decommissioning trust fund (203) (89) Sales of securities - nuclear
decommissioning trust fund 200 86 Purchases of emission allowances
(2) (2) Net cash used in investing activities (432) (527) Cash
Flows From Financing Activities: Dividends on common stock (82)
(133) Capital issuance costs (3) - Dividends paid to noncontrolling
interest holders (8) (10) Short-term debt, net (177) 145
Redemptions, repurchases, and maturities of long- term debt - (19)
Issuances: Common stock 28 46 Long-term debt 349 - Net cash
provided by financing activities 107 29 Net change in cash and cash
equivalents 212 (169) Cash and cash equivalents at beginning of
year 92 355 Cash and cash equivalents at end of period $304 $186
AMEREN CORPORATION (AEE) CONSOLIDATED OPERATING STATISTICS Three
Months Ended March 31, 2009 2008 Electric Sales - kilowatthours (in
millions): Missouri Regulated Residential 3,697 3,978 Commercial
3,473 3,523 Industrial 1,629 2,278 Other 176 184 Native load
subtotal 8,975 9,963 Off-system sales 3,250 3,111 Subtotal 12,225
13,074 Illinois Regulated Residential Generation and delivery
service 2,948 3,082 Commercial Generation and delivery service
1,369 1,442 Delivery service only 1,490 1,515 Industrial Generation
and delivery service 113 335 Delivery service only 2,604 2,867
Other 137 146 Native load subtotal 8,661 9,387 Non-rate-regulated
Generation Non-affiliate energy sales 5,545 6,387 Affiliate native
energy sales 1,275 1,761 Subtotal 6,820 8,148 Eliminate affiliate
sales (1,275) (1,761) Eliminate Illinois
Regulated/Non-rate-regulated Generation common customers (1,305)
(1,250) Ameren Total 25,126 27,598 Electric Revenues (in millions):
Missouri Regulated Residential $209 $218 Commercial 167 165
Industrial 59 76 Other 11 28 Native load subtotal 446 487
Off-system sales 133 154 Subtotal 579 641 Illinois Regulated
Residential Generation and delivery service 279 258 Commercial
Generation and delivery service 134 134 Delivery service only 21 17
Industrial Generation and delivery service 1 27 Delivery service
only 8 7 Other 51 88 Native load subtotal 494 531
Non-rate-regulated Generation Non-affiliate energy sales 304 317
Affiliate native energy sales 116 118 Other 32 15 Subtotal 452 450
Eliminate affiliate revenues (130) (153) Ameren Total $1,395 $1,469
AMEREN CORPORATION (AEE) CONSOLIDATED OPERATING STATISTICS Three
Months Ended March 31, 2009 2008 Electric Generation -
megawatthours (in millions): Missouri Regulated 12.3 12.9
Non-rate-regulated Generation Ameren Energy Generating Company
(Genco) 3.4 4.4 AmerenEnergy Resources Generating Company (AERG)
1.4 1.7 Electric Energy, Inc. (EEI) 1.9 2.0 AmerenEnergy Medina
Valley Cogen, L.L.C. 0.1 0.1 Subtotal 6.8 8.2 Ameren Total 19.1
21.1 Fuel Cost per kilowatthour (cents) Missouri Regulated 1.328
1.231 Non-rate-regulated Generation 1.957 1.900 Gas Sales -
decatherms (in thousands) Missouri Regulated 5,437 6,208 Illinois
Regulated 43,141 50,783 Other 2,093 638 Ameren Total 50,671 57,629
Net Income (Loss) by Segment (in millions): Missouri Regulated $23
$52 Illinois Regulated 25 16 Non-rate-regulated Generation 93 78
Other - (8) Ameren Total $141 $138 March 31, December 31, 2009 2008
Common Stock: Shares outstanding (in millions) 213.4 212.3 Book
value per share $33.08 $32.80 Capitalization Ratios: Common equity
46.3% 45.9% Preferred stock of subsidiaries 1.3% 1.3% Debt, net of
cash 52.4% 52.8% DATASOURCE: Ameren Corporation CONTACT: media,
Susan Gallagher, +1-314-554-2175, , or analysts, Doug Fischer,
+1-314-554-4859, , or investors, Investor Services, 1-800-255-2237,
, all of Ameren Corporation Web Site: http://www.ameren.com/
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