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PRNewswire 2-May-2019 7:00 PM
MADISON, Wis., May 2, 2019 /PRNewswire/ -- Alliant Energy Corporation (NASDAQ:LNT) today announced U.S. generally accepted accounting principles (GAAP) consolidated unaudited earnings per share (EPS) for the three months ended March 31 as follows:
2019 |
2018 |
||||
Utilities and Corporate Services |
$0.52 |
$0.45 |
|||
American Transmission Company (ATC) Holdings |
0.03 |
0.03 |
|||
Non-utility and Parent |
(0.02) |
0.04 |
|||
Alliant Energy Consolidated |
$0.53 |
$0.52 |
"Our first quarter results were in line with our expectations, with an additional benefit of $0.05 per share from the cold temperatures we experienced. Therefore, I am reaffirming our 2019 earnings guidance range, with a midpoint of $2.24 per share," said Patricia Kampling, Alliant Energy Chairman and CEO. "In March, we achieved a milestone accelerating our progress toward a cleaner energy future by placing in service 470 megawatts of new wind energy."
Utilities and Corporate Services - Alliant Energy's Utilities and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.52 per share of GAAP EPS in the first quarter of 2019, which was $0.07 per share higher than the first quarter of 2018. The primary drivers of higher EPS were higher margins due to Interstate Power and Light Company's (IPL's) and Wisconsin Power and Light Company's (WPL's) increasing rate base and higher retail electric and gas sales due to colder temperatures in the first quarter of 2019 compared to the same period last year. These items were partially offset by higher depreciation expense.
Non-utility and Parent - Alliant Energy's Non-utility and Parent operations generated ($0.02) per share of GAAP EPS in the first quarter of 2019, which was a $0.06 per share earnings decrease compared to the first quarter of 2018. The primary drivers of lower EPS are higher interest expense and lower equity income from the wind farm in Oklahoma due to accelerated earnings in the first quarter of 2018 as a result of Tax Reform, which is expected to reverse over time.
Details regarding GAAP EPS variances between the first quarters of 2019 and 2018 for Alliant Energy are as follows:
Q1 2019 |
Q1 2018 |
Variance |
|||||||||
Utilities and Corporate Services: |
|||||||||||
Higher margins primarily from earning on increasing rate base |
$0.09 |
||||||||||
Estimated temperature impact on retail electric and gas sales |
$0.05 |
$0.01 |
0.04 |
||||||||
Higher depreciation expense |
(0.05) |
||||||||||
Equity dilution |
(0.01) |
||||||||||
Total Utilities and Corporate Services |
$0.07 |
||||||||||
Non-utility and Parent: |
|||||||||||
Higher interest expense |
($0.02) |
||||||||||
Other (primarily due to the timing of the impacts of Tax Reform in 2018) |
(0.04) |
||||||||||
Total Non-utility and Parent |
($0.06) |
||||||||||
Higher margins primarily from earning on increasing rate base - In April 2017, IPL filed a request with the Iowa Utilities Board (IUB) to increase annual rates for its Iowa retail electric customers. An interim retail electric rate increase of $102 million, on an annual basis, was implemented effective April 13, 2017. In February 2018, the IUB issued an order approving IPL's settlement reached in September 2017, for an annual electric base rate increase of $130 million. Final rates were effective May 1, 2018. IPL recognized $0.02 per share of higher electric revenues in the first quarter of 2019 due to the retail electric rate increase from interim rates in first quarter 2018 to final rates in first quarter 2019.
In May 2018, IPL filed a request with the IUB to increase annual gas base rates for its Iowa retail gas customers. An interim retail gas rate increase of $11 million, on an annual basis, was implemented effective May 14, 2018. In December 2018, the IUB issued an order approving IPL's settlement reached in September 2018, for an annual gas base rate increase of $14 million. Final rates were effective January 17, 2019. IPL recognized $0.02 per share of higher gas margins in the first quarter of 2019 due to the retail gas rate increase.
In December 2018, WPL received an order from the Public Service Commission of Wisconsin approving WPL's proposed settlement for its retail electric and gas rate review covering the 2019/2020 Test Period, effective January 1, 2019. Under the settlement, WPL's retail electric and gas base rates will not change from current levels through the end of 2020. The $61 million retail electric revenue requirements for 2019, resulting from increasing investments in rate base, are offset by lower fuel-related costs and federal tax reform refunds. WPL recognized $0.05 per share of higher electric and gas margins in the first quarter of 2019.
2019 Earnings Guidance
Alliant Energy is reaffirming its EPS guidance for 2019 as follows:
Utilities and Corporate Services |
$2.14 - $2.24 |
ATC Holdings |
0.11 - 0.13 |
Non-utility and Parent |
(0.08) - (0.06) |
Alliant Energy Consolidated |
$2.17 - $2.31 |
Drivers for Alliant Energy's 2019 earnings guidance include, but are not limited to:
The 2019 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, future changes in laws, regulations or regulatory policies, adjustments made to deferred tax assets and liabilities from valuation allowances, pending lawsuits and disputes, federal and state income tax audits and other Internal Revenue Service proceedings, or changes in GAAP and tax methods of accounting that may impact the reported results of Alliant Energy.
Earnings Conference Call
A conference call to review the first quarter 2019 results is scheduled for Friday, May 3rd at 9:00 a.m. central time. Alliant Energy Chairman and Chief Executive Officer Patricia Kampling, President and Chief Operating Officer John Larsen, and Senior Vice President and Chief Financial Officer Robert Durian will host the call. The conference call is open to the public and can be accessed in two ways. Interested parties may listen to the call by dialing 888-394-8218 (United States or Canada) or 323-794-2149 (International), passcode 4175543. Interested parties may also listen to a webcast at www.alliantenergy.com/investors. In conjunction with the information in this earnings announcement and the conference call, Alliant Energy posted supplemental materials on its website. A replay of the call will be available through May 10, 2019, at 888-203-1112 (United States or Canada) or 719-457-0820 (International), passcode 4175543. An archive of the webcast will be available on the Company's Web site at www.alliantenergy.com/investors for 12 months.
About Alliant Energy Corporation
Alliant Energy is the parent company of two public utility companies - Interstate Power and Light Company and Wisconsin Power and Light Company - and of Alliant Energy Finance, LLC, the parent company of Alliant Energy's non-utility operations. Alliant Energy is an energy-services provider with utility subsidiaries serving approximately 965,000 electric and 415,000 natural gas customers. Providing its customers in the Midwest with regulated electricity and natural gas service is the Company's primary focus. Alliant Energy, headquartered in Madison, Wisconsin, is a component of the S&P 500 and is traded on the Nasdaq Global Select Market under the symbol LNT. For more information, visit the Company's Web site at www.alliantenergy.com.
Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements can be identified by words such as "forecast," "expect," "guidance," or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Actual results could be materially affected by the following factors, among others:
For more information about potential factors that could affect Alliant Energy's business and financial results, refer to Alliant Energy's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), including the section therein titled "Risk Factors," and its other filings with the SEC.
Without limitation, the expectations with respect to 2019 earnings guidance in this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements. Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy's ability to achieve the estimates or other targets included in the forward-looking statements. The forward-looking statements included herein are made as of the date hereof and, except as required by law, Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
Use of Non-GAAP Financial Measures
Alliant Energy included in this press release IPL; WPL; Corporate Services; Utilities and Corporate Services; ATC Holdings; and Non-utility and Parent EPS from continuing operations for the three months ended March 31, 2019 and 2018. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of segment performance and trends, and provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance.
This press release references year-over-year variances in utility electric margins and utility gas margins. Utility electric margins and utility gas margins are non-GAAP financial measures that are reported and reconciled to the most directly comparable GAAP measure, operating income, in our first quarter 2019 Form 10-Q.
Note: Unless otherwise noted, all "per share" references in this release refer to earnings per diluted share.
ALLIANT ENERGY CORPORATION |
||||||||||
EARNINGS SUMMARY (Unaudited) |
||||||||||
The following tables provide a summary of Alliant Energy's results for the three months ended March 31: |
||||||||||
EPS: |
Three Months |
|||||||||
2019 |
2018 |
|||||||||
IPL |
$0.23 |
$0.20 |
||||||||
WPL |
0.28 |
0.23 |
||||||||
Corporate Services |
0.01 |
0.02 |
||||||||
Subtotal for Utilities and Corporate Services |
0.52 |
0.45 |
||||||||
ATC Holdings |
0.03 |
0.03 |
||||||||
Non-utility and Parent |
(0.02) |
0.04 |
||||||||
Alliant Energy Consolidated |
$0.53 |
$0.52 |
||||||||
Earnings (in millions): |
Three Months |
|||||||||
2019 |
2018 |
|||||||||
IPL |
$53.3 |
$46.7 |
||||||||
WPL |
65.7 |
54.0 |
||||||||
Corporate Services |
3.0 |
3.7 |
||||||||
Subtotal for Utilities and Corporate Services |
122.0 |
104.4 |
||||||||
ATC Holdings |
7.1 |
6.3 |
||||||||
Non-utility and Parent |
(4.0) |
10.2 |
||||||||
Alliant Energy Consolidated |
$125.1 |
$120.9 |
||||||||
ALLIANT ENERGY CORPORATION |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||||||||||
Three Months Ended March 31, |
|||||||||||||||
2019 |
2018 |
||||||||||||||
(in millions, except per share amounts) |
|||||||||||||||
Revenues: |
|||||||||||||||
Electric utility |
$743.4 |
$708.7 |
|||||||||||||
Gas utility |
215.8 |
185.6 |
|||||||||||||
Other utility |
11.1 |
13.2 |
|||||||||||||
Non-utility |
16.9 |
8.8 |
|||||||||||||
987.2 |
916.3 |
||||||||||||||
Operating expenses: |
|||||||||||||||
Electric production fuel and purchased power |
218.4 |
203.2 |
|||||||||||||
Electric transmission service |
123.0 |
126.4 |
|||||||||||||
Cost of gas sold |
121.6 |
111.2 |
|||||||||||||
Other operation and maintenance: |
|||||||||||||||
Energy efficiency costs |
29.7 |
23.1 |
|||||||||||||
Non-utility |
9.6 |
0.7 |
|||||||||||||
Other |
141.9 |
138.6 |
|||||||||||||
Depreciation and amortization |
136.9 |
120.4 |
|||||||||||||
Taxes other than income taxes |
29.3 |
27.0 |
|||||||||||||
810.4 |
750.6 |
||||||||||||||
Operating income |
176.8 |
165.7 |
|||||||||||||
Other (income) and deductions: |
|||||||||||||||
Interest expense |
66.3 |
59.2 |
|||||||||||||
Equity income from unconsolidated investments, net |
(10.9) |
(21.3) |
|||||||||||||
Allowance for funds used during construction |
(25.4) |
(14.9) |
|||||||||||||
Other |
4.0 |
2.4 |
|||||||||||||
34.0 |
25.4 |
||||||||||||||
Income before income taxes |
142.8 |
140.3 |
|||||||||||||
Income taxes |
15.1 |
16.8 |
|||||||||||||
Net income |
127.7 |
123.5 |
|||||||||||||
Preferred dividend requirements of IPL |
2.6 |
2.6 |
|||||||||||||
Net income attributable to Alliant Energy common shareowners |
$125.1 |
$120.9 |
|||||||||||||
Weighted average number of common shares outstanding (basic) |
236.5 |
231.4 |
|||||||||||||
Weighted average number of common shares outstanding (diluted) |
236.6 |
231.4 |
|||||||||||||
Earnings per weighted average common share attributable to Alliant Energy common shareowners (basic and diluted) |
$0.53 |
$0.52 |
|||||||||||||
ALLIANT ENERGY CORPORATION |
|||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||||||||||
March 31, 2019 |
December 31, 2018 |
||||||||||||||
(in millions) |
|||||||||||||||
ASSETS: |
|||||||||||||||
Current assets: |
|||||||||||||||
Cash and cash equivalents |
$10.1 |
$20.9 |
|||||||||||||
Other current assets |
805.1 |
764.2 |
|||||||||||||
Property, plant and equipment, net |
12,665.2 |
12,462.4 |
|||||||||||||
Investments |
433.6 |
431.3 |
|||||||||||||
Other assets |
1,799.4 |
1,747.2 |
|||||||||||||
Total assets |
$15,713.4 |
$15,426.0 |
|||||||||||||
LIABILITIES AND EQUITY: |
|||||||||||||||
Current liabilities: |
|||||||||||||||
Current maturities of long-term debt |
$256.5 |
$256.5 |
|||||||||||||
Commercial paper |
514.7 |
441.2 |
|||||||||||||
Other current liabilities |
816.5 |
946.4 |
|||||||||||||
Long-term debt, net (excluding current portion) |
5,362.2 |
5,246.3 |
|||||||||||||
Other liabilities |
3,881.1 |
3,749.9 |
|||||||||||||
Equity: |
|||||||||||||||
Alliant Energy Corporation common equity |
4,682.4 |
4,585.7 |
|||||||||||||
Cumulative preferred stock of Interstate Power and Light Company |
200.0 |
200.0 |
|||||||||||||
Total equity |
4,882.4 |
4,785.7 |
|||||||||||||
Total liabilities and equity |
$15,713.4 |
$15,426.0 |
|||||||||||||
ALLIANT ENERGY CORPORATION |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||||||||||
Three Months Ended March 31, |
|||||||||||||||
2019 |
2018 |
||||||||||||||
(in millions) |
|||||||||||||||
Cash flows from operating activities: |
|||||||||||||||
Cash flows from operating activities excluding accounts receivable sold to a third party |
$293.5 |
$272.4 |
|||||||||||||
Accounts receivable sold to a third party |
(112.4) |
(116.1) |
|||||||||||||
Net cash flows from operating activities |
181.1 |
156.3 |
|||||||||||||
Cash flows used for investing activities: |
|||||||||||||||
Construction and acquisition expenditures: |
|||||||||||||||
Utility business |
(374.0) |
(335.2) |
|||||||||||||
Other |
(32.1) |
(20.3) |
|||||||||||||
Cash receipts on sold receivables |
53.4 |
217.3 |
|||||||||||||
Other |
(12.1) |
(14.0) |
|||||||||||||
Net cash flows used for investing activities |
(364.8) |
(152.2) |
|||||||||||||
Cash flows from (used for) financing activities: |
|||||||||||||||
Common stock dividends |
(83.7) |
(77.5) |
|||||||||||||
Proceeds from issuance of common stock, net |
54.6 |
6.3 |
|||||||||||||
Net change in commercial paper |
188.5 |
62.1 |
|||||||||||||
Other |
16.6 |
(0.7) |
|||||||||||||
Net cash flows from (used for) financing activities |
176.0 |
(9.8) |
|||||||||||||
Net decrease in cash, cash equivalents and restricted cash |
(7.7) |
(5.7) |
|||||||||||||
Cash, cash equivalents and restricted cash at beginning of period |
25.5 |
33.9 |
|||||||||||||
Cash, cash equivalents and restricted cash at end of period |
$17.8 |
$28.2 |
|||||||||||||
KEY FINANCIAL AND OPERATING STATISTICS |
|||||
March 31, 2019 |
March 31, 2018 |
||||
Common shares outstanding (000s) |
237,394 |
231,482 |
|||
Book value per share |
$19.72 |
$18.28 |
|||
Quarterly common dividend rate per share |
$0.355 |
$0.335 |
Three Months Ended March 31, |
|||||||||||||||
2019 |
2018 |
||||||||||||||
Utility electric sales (000s of megawatt-hours) |
|||||||||||||||
Residential |
1,950 |
1,880 |
|||||||||||||
Commercial |
1,612 |
1,611 |
|||||||||||||
Industrial |
2,600 |
2,629 |
|||||||||||||
Industrial - co-generation customers |
190 |
216 |
|||||||||||||
Retail subtotal |
6,352 |
6,336 |
|||||||||||||
Sales for resale: |
|||||||||||||||
Wholesale |
680 |
787 |
|||||||||||||
Bulk power and other |
744 |
334 |
|||||||||||||
Other |
26 |
26 |
|||||||||||||
Total |
7,802 |
7,483 |
|||||||||||||
Utility retail electric customers (at March 31) |
|||||||||||||||
Residential |
819,747 |
816,286 |
|||||||||||||
Commercial |
141,967 |
142,133 |
|||||||||||||
Industrial |
2,558 |
2,615 |
|||||||||||||
Total |
964,272 |
961,034 |
|||||||||||||
Utility gas sold and transported (000s of dekatherms) |
|||||||||||||||
Residential |
15,780 |
13,946 |
|||||||||||||
Commercial |
9,582 |
8,917 |
|||||||||||||
Industrial |
1,017 |
985 |
|||||||||||||
Retail subtotal |
26,379 |
23,848 |
|||||||||||||
Transportation / other |
25,370 |
24,061 |
|||||||||||||
Total |
51,749 |
47,909 |
|||||||||||||
Utility retail gas customers (at March 31) |
|||||||||||||||
Residential |
371,512 |
369,690 |
|||||||||||||
Commercial |
44,614 |
44,701 |
|||||||||||||
Industrial |
352 |
373 |
|||||||||||||
Total |
416,478 |
414,764 |
|||||||||||||
Estimated margin increases from impacts of temperatures (in millions) - |
|||||||||||||||
Three Months Ended March 31, |
|||||||||||||||
2019 |
2018 |
||||||||||||||
Electric margins |
$10 |
$1 |
|||||||||||||
Gas margins |
5 |
1 |
|||||||||||||
Total temperature impact on margins |
$15 |
$2 |
|||||||||||||
Three Months Ended March 31, |
|||||||||||||||||
2019 |
2018 |
Normal |
|||||||||||||||
Heating degree days (HDDs) (a) |
|||||||||||||||||
Cedar Rapids, Iowa (IPL) |
3,856 |
3,424 |
3,379 |
||||||||||||||
Madison, Wisconsin (WPL) |
3,849 |
3,586 |
3,475 |
||||||||||||||
(a) |
HDDs are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDDs. |
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SOURCE Alliant Energy Corporation