ST. LOUIS, Feb. 1, 2018 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported operating results for its fiscal 2018
first quarter ended December 31,
2017. Highlights include:
- GAAP earnings were $2.39 per
diluted share, or $1.19 per share on
a net economic earnings* basis, excluding the largely non-cash
impacts of recently enacted federal income tax reform
- Prior year earnings were $0.99
per share (GAAP) and $1.04 per share
(net economic earnings)
- Spire's growth strategy advances with a natural gas storage
acquisition and continued progress with the Spire STL Pipeline
![Spire color logo Spire color logo](https://mma.prnewswire.com/media/347388/Spire_Orange_Logo.jpg)
"We are off to another solid start in fiscal 2018, building on
our momentum from last year. We invested further in infrastructure
and technology to deliver even better service, reliability and cost
effectiveness for the 1.7 million homes and businesses we serve,"
said Suzanne Sitherwood, president
and chief executive officer of Spire. "We continue to progress on
our growth strategy with our Spire STL Pipeline and our acquisition
of a natural gas storage facility. Our run-rate earnings of
$1.19 per share are solid, and with
the passage of tax reform, we are working with our state regulators
to determine how to pass the benefits of lower tax rates to our
customers. Overall, we are on track with our strategies to deliver
long-term growth and keep our promises to our shareholders,
customers, communities and employees."
First Quarter
Results
|
Three months ended
December 31,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
59.5
|
|
|
$
|
51.8
|
|
|
$
|
1.22
|
|
|
$
|
1.13
|
|
|
Gas
Marketing
|
3.6
|
|
|
1.4
|
|
|
0.08
|
|
|
0.03
|
|
|
Other
|
(5.2)
|
|
|
(5.7)
|
|
|
(0.11)
|
|
|
(0.12)
|
|
|
|
Total
|
$
|
57.9
|
|
|
$
|
47.5
|
|
|
$
|
1.19
|
|
|
$
|
1.04
|
|
|
Acquisition-related
costs, pre-tax
|
(1.7)
|
|
|
(0.1)
|
|
|
(0.04)
|
|
|
—
|
|
|
Fair value
adjustments, pre-tax
|
(0.7)
|
|
|
(3.6)
|
|
|
(0.02)
|
|
|
(0.08)
|
|
|
Income tax effect of
pre-tax adjustments
|
0.6
|
|
|
1.4
|
|
|
0.02
|
|
|
0.03
|
|
|
Effects of Tax Cuts
and Jobs Act
|
59.9
|
|
|
—
|
|
|
1.24
|
|
|
—
|
|
Net
Income
|
$
|
116.0
|
|
|
$
|
45.2
|
|
|
$
|
2.39
|
|
|
$
|
0.99
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
48.4
|
|
|
45.7
|
|
|
|
|
|
|
* Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP."
|
Results for the three months ended December 31, 2017, the first quarter of our
fiscal year, include significant, largely non-cash adjustments,
required to reflect the estimated impact of the federal Tax Cuts
and Jobs Act which was enacted in late December. Those adjustments
include revaluing existing deferred tax assets and liabilities that
were established under higher tax rates that will reverse under a
new, lower rate embodied in the legislation. For additional details
on the tax law changes and the impacts on Spire, please see "Tax
Reform" later in this release.
As a result, consolidated net income for the quarter was
$116.0 million ($2.39 per diluted share), including $59.9 million ($1.24 per share) of tax reform-driven
adjustments, compared to $45.2
million ($0.99 per share) in
the prior year period.
Net economic earnings (NEE) for the first quarter of fiscal 2018
were $57.9 million ($1.19 per share), up from $47.5 million ($1.04 per share) last year, due to higher
earnings in both our Gas Utility and Gas Marketing segments,
reflecting the return to more normal weather compared to
warmer-than-normal temperatures a year ago. The year-over-year
change in per share results was impacted by a 6 percent increase in
average shares outstanding reflecting the issuance of shares in
April 2017 upon the maturity of
equity units originally issued in 2014.
NEE excludes from net income the after-tax impacts of fair value
accounting and timing adjustments associated with energy-related
transactions as well as acquisition, divestiture and restructuring
activities. Beginning this quarter, we are also excluding the
largely non-cash impact of the recently enacted Tax Cuts and Jobs
Act including related amounts that may be subject to regulatory
treatment. We believe that this presentation provides clarity into
the true run-rate earnings of our business. See "Balance
Sheets and Cash Flows" later in this release for details.
Gas Utility
The Gas Utility segment includes the regulated gas distribution
operations of our five gas utilities across Alabama, Mississippi and Missouri. First quarter NEE was $59.5 million, up from $51.8 million in the prior year, with the
increase due to a higher contribution margin and lower operation
and maintenance (O&M) expenses.
Contribution margin increased by $12.3
million, with the majority of the increase ($7.9 million) reflecting higher usage due to the
return of more normal weather compared to a year ago. Contribution
margin also benefited from higher Infrastructure System Replacement
Surcharge (ISRS) revenues for the Missouri Utilities ($3.4 million) and modest customer growth.
O&M expenses of $97.9 million
for the quarter were down $1.5
million, reflecting lower maintenance expenses partially
offset by higher employee-related costs and bad debt expense.
Depreciation and amortization expenses increased by $2.6 million from last year, reflecting higher
capital investment in infrastructure and technology upgrades, and
new business. Taxes other than income increased $3.3 million due to higher gross receipts
taxes.
Gas Marketing
The Gas Marketing segment includes the results of Spire
Marketing, which provides natural gas marketing and related
services on a non-regulated basis across the country, with a core
operating footprint in the central U.S. For the first quarter of
fiscal 2018, Gas Marketing reported NEE of $3.6 million, up
from $1.4 million in the prior year,
reflecting greater regional basis differentials (spreads) and
increased storage optimization in the current-year quarter, both
driven by the colder weather this year versus last.
Other
Other non-utility operations and corporate costs on an NEE basis
for the first quarter were $5.2
million in fiscal 2018, down from $5.7 million a year ago, with costs in both
periods reflecting principally interest expense associated with
acquisition-related debt.
Balance Sheets and Cash Flows
We maintain a strong capital structure with ample liquidity. At
December 31, 2017, we had a long-term
capitalization of 49.4 percent equity, compared to 48.7 percent
equity capitalization at September 30,
2017, the end of our prior fiscal year. Short-term
borrowings outstanding at December 31,
2017 were $583.6 million
compared to $506.4 million a year
ago. These levels reflect the highly seasonal nature of our working
capital needs, which typically peak in this time period, and we
retain significant capacity in our $975
million revolving credit facility and related commercial
paper program to meet liquidity needs.
In December and January, Spire Alabama issued and sold, through
private placement, an aggregate amount of $75 million of senior notes. The new debt
consisted of $30 million in 40-year
notes at an annual interest rate of 4.02 percent issued on
December 1, 2017, and $45 million in 30-year notes at 3.92
percent issued on January 12, 2018.
Spire Alabama used the proceeds to
repay short-term debt and for general corporate purposes.
Net cash provided by operating activities was $17.9 million for the three months ended
December 31, 2017, compared to
$10.3 million for the first quarter a
year ago. The increase is primarily due to higher net income, net
of the non-cash impact of tax reform, as discussed further below.
Capital expenditures for the first three months of fiscal 2018 were
$110.8 million, up from $89.3 million in the prior year, reflecting
increased infrastructure upgrades to our gas utilities, investment
to support customer growth and new business development, and for
our Spire STL Pipeline.
For additional details on Spire's results for the first quarter
of fiscal 2018, please see the accompanying unaudited Consolidated
Statements of Income, unaudited Condensed Consolidated Balance
Sheets, and unaudited Condensed Consolidated Statements of Cash
Flows.
Tax Reform
The Tax Cuts and Jobs Act, signed into law on December 22, 2017, includes significant reform of
the tax code including a reduction in the corporate income tax rate
from 35 percent to 21 percent. The specific provisions related to
regulated public utilities generally allow for continued
deductibility of interest expense, elimination of full expensing of
property for tax purposes and the continuation of favorable
individual tax treatment of dividends.
U.S. GAAP requires that the impact of the tax law changes be
recognized in the period when the law is enacted, including the
re-measurement of deferred tax assets and liabilities. We have
recorded the impact this quarter based on available information and
guidance. It is important to note that changes in deferred taxes
within our regulated operations are recorded as adjustments to
regulatory or liability accounts. The changes in deferred taxes
outside of these operations are recorded as adjustments to income
tax expense.
For the quarter, the largely non-cash impacts in our results
from operations were a decrease to income tax expense (increase to
earnings) of $59.9 million
($1.24 per share).
We are currently working with our state regulators to determine
how to pass the benefits of lower tax rates to our customers.
Regulatory Update
Missouri Rate Cases
In April 2017, Spire Missouri East
and Spire Missouri West each filed with the Missouri Public Service
Commission (MoPSC) a general rate case, requesting proposed rate
changes. These requests were the first to be made by our
Missouri utilities in
approximately four years.
Spire Missouri's initial
request represents an incremental revenue increase of $59 million, which is net of $49 million that is currently being recovered
through ISRS. Even with the requested increases, our Missouri customers will be paying less than
they did ten years ago for their natural gas service.
Our requests are premised on a combined Missouri rate base of $2.0 billion, an equity capitalization for the
Missouri utilities of 54.2
percent, and a return on equity of 10.35 percent. They reflect the
significant infrastructure and technology investments we have made
over that time, which have resulted in enhanced safety, reliability
and customer service levels of our Missouri customers. The requests also reflect
significant cost savings and synergies, totaling nearly
$70 million, achieved from our growth
and transformation driven by acquisition and integration of other
gas utilities over the last several years.
The MoPSC has been discussing the issues in our rate case at its
weekly agenda meetings, including one held on January 31. While the case has not been decided,
we are very disappointed and concerned over the tenor and direction
of the discussions, including the adoption of several positions
that run contrary to good business practice or serve to weaken
customer protections. We strongly believe that an appropriate level
of equity capitalization and fair and reasonable recovery of our
costs are necessary to properly reward and incent Spire Missouri to
continue to make the right investments and take other steps that
benefit our customers.
The regulatory process in Missouri provides the MoPSC up to 11 months to
adjudicate the case, meaning new rates would go into effect in
March 2018. A decision by the MoPSC
is expected in mid-February.
On January 18, 2018, the MoPSC
issued an order directing Spire and the MoPSC Staff to file
information regarding adjustments to Spire's rates needed to
reflect the impact of tax reform under the Tax Cuts and Jobs Act.
Spire made its filing on January 22
and the Staff made a reply filing on January
25. A hearing has been set for February 5.
Pipelines and Storage
Our growth strategy includes the development of our Spire STL
Pipeline project and investing in natural gas storage.
We anticipate that in early calendar 2018, the Federal Energy
Regulatory Commission (FERC) will issue a Certificate of Public
Convenience and Necessity for our Spire STL Pipeline, approving the
project. This FERC approval is an important milestone that will
allow us to complete the necessary land acquisitions and shift into
the construction phase of the project.
Spire STL Pipeline is a planned 65-mile natural gas supply
pipeline that will provide Spire Missouri East with access to
lower-cost shale gas from the Marcellus/Utica producing regions. It will also enhance
reliability and the diversity of our physical transport portfolio.
Based on our expected in-service date of mid-fiscal 2019, the
estimated project cost remains $190
million-$210 million.
In late December 2017, we acquired
a majority interest in Ryckman Creek Resources, LLC, a natural gas
storage facility in Wyoming
certificated for 35 Bcf of working gas. The purchase price was
$26 million, and we intend to invest
at least $15 million in the facility
over the next two years to enhance its operating and financial
performance. The facility's results of operations will be included
in our financial statements beginning in the second quarter of
fiscal 2018, but these results, including integration costs, will
be excluded from NEE in fiscal 2018.
Dividends
The Spire board of directors declared a quarterly common stock
dividend of $0.5625 per share,
payable April 3, 2018, to
shareholders of record on March 12,
2018. We have continuously paid a cash dividend since 1946,
with 2018 marking the 15th consecutive year of increasing dividends
on an annualized basis.
Outlook
Our capital expenditures forecast for fiscal 2018 is
approximately $490 million, with
investment in our gas utilities of approximately $415 million and expenditures for our Spire STL
Pipeline and natural gas storage estimated to be $75 million. Our five-year capital spend outlook
for the fiscal years 2017-2021 remains approximately $2.3 billion. We expect more than 80 percent of
our five-year capital spend will be recovered in rates with minimal
lag under regulatory mechanisms or reflected in earnings.
We anticipate providing an update to our 2018 plan as well as
our longer-term targets with our earnings release for the quarter
ended March 31, 2018.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2018 first quarter financial results. To access the
call, please dial the applicable number approximately 5-10 minutes
prior to the start time.
Date and
Time:
|
Thursday, February
1
|
|
|
8 a.m. CT (9 a.m.
ET)
|
|
|
|
|
|
Phone
Numbers:
|
U.S. and
Canada:
|
844-824-3832
|
|
|
International:
|
412-317-5142
|
|
The call will also be webcast in a listen-only format for the
media and general public. The webcast can be accessed at
Investors.SpireEnergy.com under the Events & presentations tab.
A replay of the call will be available from 10 a.m. CT (11 a.m.
ET) on February 1 until March
2 by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The
replay access code is 10115276. A replay of the webcast will be
available on our website at Investors.SpireEnergy.com under the
Events & presentations tab.
About Spire
At Spire Inc. (NYSE: SR) we believe energy exists to help make
people's lives better. It's a simple idea, but one that's at the
heart of our company. Every day we serve 1.7 million customers
making us the fifth largest publicly traded natural gas company in
the country. We help families and business owners fuel their daily
lives through our gas utilities serving Alabama, Mississippi and Missouri. Our non-utility operations include
Spire Marketing which provides natural gas marketing and related
services. We are committed to transforming our business and
pursuing growth through 1) growing organically,
2) investing in infrastructure, 3) acquiring and
integrating, and 4) innovation and technology. Learn more at
SpireEnergy.com.
Cautionary Statements on Forward-Looking Information and
Non-GAAP Measures
This news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Spire's future operating results may be affected by
various uncertainties and risk factors, many of which are beyond
the Company's control, including weather conditions, economic
factors, the competitive environment, governmental and regulatory
policy and action, and risks associated with recent and pending
acquisitions. For a more complete description of these
uncertainties and risk factors, see the Company's Form 10-Q for the
quarter ended December 31, 2017, to
be filed with the Securities and Exchange Commission later
today.
This news release includes the non-GAAP financial measures of
"net economic earnings," "net economic earnings per share," and
"contribution margin." Management also uses these non-GAAP measures
internally when evaluating the Company's performance and results of
operations. Net economic earnings exclude from net income the
after-tax impacts of fair value accounting and timing adjustments
associated with energy-related transactions as well as acquisition,
divestiture and restructuring activities. The fair value and timing
adjustments, which primarily impact the Gas Marketing segment,
include net unrealized gains and losses on energy-related
derivatives resulting from the current changes in the fair value of
financial and physical transactions prior to their completion and
settlement, lower of cost or market inventory adjustments, and
realized gains and losses on economic hedges prior to the sale of
the physical commodity. Management believes that excluding these
items provides a useful representation of the economic impact of
actual settled transactions and overall results of ongoing
operations. In calculating net economic earnings, management also
excludes from net income the largely non-cash impacts of the
recently enacted federal Tax Cuts and Jobs Act including related
amounts that may be subject to regulatory treatment. Management
believes that excluding the impacts of tax reform provides
visibility into the true run-rate earnings of the Company.
Contribution margin adjusts revenues to remove the costs that are
directly passed on to customers and collected through revenues,
which are the wholesale cost of natural gas and propane and gross
receipts taxes. These internal non-GAAP operating metrics should
not be considered as an alternative to, or more meaningful than,
GAAP measures such as operating income, net income, or earnings per
share.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
Condensed
Consolidated Statements of Income - Unaudited
|
|
(In Millions,
except per share amounts)
|
Three months
ended
December 31,
|
|
2017
|
|
2016
|
|
|
|
|
Operating
Revenues:
|
|
|
|
|
Gas
Utility
|
$
|
541.9
|
|
|
$
|
472.3
|
|
|
Gas Marketing and
other
|
19.9
|
|
|
22.8
|
|
|
Total Operating
Revenues
|
561.8
|
|
|
495.1
|
|
Operating
Expenses:
|
|
|
|
|
Gas
Utility
|
|
|
|
|
Natural and
propane gas
|
240.8
|
|
|
193.8
|
|
|
Operation and
maintenance
|
97.9
|
|
|
99.4
|
|
|
Depreciation
and amortization
|
40.3
|
|
|
37.7
|
|
|
Taxes, other
than income taxes
|
36.7
|
|
|
33.4
|
|
|
Total Gas Utility Operating Expenses
|
415.7
|
|
|
364.3
|
|
|
Gas Marketing and
other
|
41.0
|
|
|
41.7
|
|
|
Total Operating Expenses
|
456.7
|
|
|
406.0
|
|
Operating
Income
|
105.1
|
|
|
89.1
|
|
Other
Income
|
2.2
|
|
|
0.5
|
|
Interest
Charges:
|
|
|
|
|
Interest on long-term
debt
|
20.7
|
|
|
19.1
|
|
|
Other interest
charges
|
3.7
|
|
|
3.0
|
|
|
Total Interest
Charges
|
24.4
|
|
|
22.1
|
|
Income Before Income
Taxes
|
82.9
|
|
|
67.5
|
|
Income Tax (Benefit)
Expense
|
(33.1)
|
|
|
22.3
|
|
Net Income
|
$
|
116.0
|
|
|
$
|
45.2
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding:
|
|
|
|
Basic
|
48.2
|
|
|
45.5
|
|
|
Diluted
|
48.4
|
|
|
45.7
|
|
|
|
|
|
|
Basic Earnings Per
Share of Common Stock
|
$
|
2.40
|
|
|
$
|
0.99
|
|
Diluted Earnings Per
Share of Common Stock
|
$
|
2.39
|
|
|
$
|
0.99
|
|
Dividends Declared
Per Share of Common Stock
|
$
|
0.5625
|
|
|
$
|
0.525
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets - Unaudited
|
|
(In
Millions)
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
|
|
Utility
Plant
|
$
|
5,351.7
|
|
|
$
|
5,278.4
|
|
|
$
|
4,893.2
|
|
Less:
Accumulated depreciation and amortization
|
1,641.0
|
|
|
1,613.2
|
|
|
1,561.4
|
|
Net Utility
Plant
|
3,710.7
|
|
|
3,665.2
|
|
|
3,331.8
|
|
Non-utility
Property
|
105.3
|
|
|
52.0
|
|
|
19.7
|
|
Goodwill
|
1,171.6
|
|
|
1,171.6
|
|
|
1,161.4
|
|
Other
Investments
|
66.3
|
|
|
64.2
|
|
|
61.9
|
|
Other Property and
Investments
|
1,343.2
|
|
|
1,287.8
|
|
|
1,243.0
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
6.7
|
|
|
7.4
|
|
|
10.6
|
|
Accounts receivable,
net
|
447.6
|
|
|
271.4
|
|
|
422.7
|
|
Delayed customer
billings
|
7.5
|
|
|
3.4
|
|
|
5.3
|
|
Inventories
|
204.9
|
|
|
225.8
|
|
|
190.5
|
|
Other
|
185.8
|
|
|
217.5
|
|
|
186.5
|
|
Total Current
Assets
|
852.5
|
|
|
725.5
|
|
|
815.6
|
|
Regulatory Assets and
Other Deferred Charges
|
794.7
|
|
|
868.2
|
|
|
919.7
|
|
Total
Assets
|
$
|
6,701.1
|
|
|
$
|
6,546.7
|
|
|
$
|
6,310.1
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
Common stock and
paid-in capital
|
$
|
1,373.2
|
|
|
$
|
1,373.9
|
|
|
$
|
1,221.4
|
|
Retained
earnings
|
703.0
|
|
|
614.2
|
|
|
572.1
|
|
Accumulated other
comprehensive income
|
3.0
|
|
|
3.2
|
|
|
3.2
|
|
Noncontrolling
interest
|
6.5
|
|
|
—
|
|
|
—
|
|
Total
Equity
|
2,085.7
|
|
|
1,991.3
|
|
|
1,796.7
|
|
Long-term
debt
|
2,030.0
|
|
|
1,995.0
|
|
|
1,821.3
|
|
Total
Capitalization
|
4,115.7
|
|
|
3,986.3
|
|
|
3,618.0
|
|
Current
Liabilities:
|
|
|
|
|
|
Current portion of
long-term debt
|
105.5
|
|
|
100.0
|
|
|
250.0
|
|
Notes
payable
|
583.6
|
|
|
477.3
|
|
|
506.4
|
|
Accounts
payable
|
245.6
|
|
|
257.1
|
|
|
273.8
|
|
Advance customer
billings
|
27.3
|
|
|
32.0
|
|
|
60.2
|
|
Accrued liabilities
and other
|
249.3
|
|
|
231.5
|
|
|
251.8
|
|
Total Current
Liabilities
|
1,211.3
|
|
|
1,097.9
|
|
|
1,342.2
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
Deferred income
taxes
|
441.0
|
|
|
707.5
|
|
|
636.5
|
|
Pension and
postretirement benefit costs
|
233.6
|
|
|
237.4
|
|
|
296.3
|
|
Asset retirement
obligations
|
299.7
|
|
|
296.6
|
|
|
208.7
|
|
Regulatory
liabilities
|
335.1
|
|
|
157.2
|
|
|
132.1
|
|
Other
|
64.7
|
|
|
63.8
|
|
|
76.3
|
|
Total Deferred
Credits and Other Liabilities
|
1,374.1
|
|
|
1,462.5
|
|
|
1,349.9
|
|
Total Capitalization
and Liabilities
|
$
|
6,701.1
|
|
|
$
|
6,546.7
|
|
|
$
|
6,310.1
|
|
Condensed
Consolidated Statements of Cash Flows - Unaudited
|
|
(In
Millions)
|
Three months
ended
December
31,
|
|
2017
|
|
2016
|
Operating
Activities:
|
|
|
|
Net Income
|
$
|
116.0
|
|
|
$
|
45.2
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
40.4
|
|
|
37.8
|
|
Deferred income taxes
and investment tax credits
|
(33.6)
|
|
|
22.1
|
|
Changes in assets and
liabilities
|
(106.7)
|
|
|
(96.5)
|
|
Other
|
1.8
|
|
|
1.7
|
|
Net cash provided by
operating activities
|
17.9
|
|
|
10.3
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(110.8)
|
|
|
(89.3)
|
|
Acquisition
activity
|
(16.0)
|
|
|
3.8
|
|
Other
|
0.1
|
|
|
(0.4)
|
|
Net cash used in
investing activities
|
(126.7)
|
|
|
(85.9)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
Issuance of long-term
debt
|
30.0
|
|
|
—
|
|
Issuance of short-term
debt - net
|
106.3
|
|
|
107.7
|
|
Issuance of common
stock
|
0.3
|
|
|
0.1
|
|
Dividends
paid
|
(25.8)
|
|
|
(22.8)
|
|
Other
|
(2.7)
|
|
|
(4.0)
|
|
Net cash provided by
financing activities
|
108.1
|
|
|
81.0
|
|
|
|
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents
|
(0.7)
|
|
|
5.4
|
|
Cash and Cash
Equivalents at Beginning of Period
|
7.4
|
|
|
5.2
|
|
Cash and Cash
Equivalents at End of Period
|
$
|
6.7
|
|
|
$
|
10.6
|
|
|
|
|
|
Net Economic Earnings
and Reconciliation to GAAP
|
|
(In Millions,
except per share amounts)
|
Gas
Utility
|
|
Gas
Marketing
|
|
Other
|
|
Total
|
|
Per Diluted
Share (2)
|
Three Months Ended
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
45.2
|
|
|
$
|
3.5
|
|
|
$
|
67.3
|
|
|
$
|
116.0
|
|
|
$
|
2.39
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
—
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
0.02
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
—
|
|
|
—
|
|
|
1.7
|
|
|
1.7
|
|
|
0.04
|
|
|
|
Income tax effect of
pre-tax adjustments (1)
|
—
|
|
|
(0.2)
|
|
|
(0.4)
|
|
|
(0.6)
|
|
|
(0.02)
|
|
|
|
Effects of Tax Cuts
and Jobs Act
|
14.3
|
|
|
(0.4)
|
|
|
(73.8)
|
|
|
(59.9)
|
|
|
(1.24)
|
|
|
Net Economic
Earnings (Loss) (Non-GAAP)
|
$
|
59.5
|
|
|
$
|
3.6
|
|
|
$
|
(5.2)
|
|
|
$
|
57.9
|
|
|
$
|
1.19
|
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
0.93
|
|
|
$
|
0.07
|
|
|
$
|
1.39
|
|
|
$
|
2.39
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
1.22
|
|
|
$
|
0.08
|
|
|
$
|
(0.11)
|
|
|
$
|
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
(GAAP)
|
$
|
51.7
|
|
|
$
|
(0.8)
|
|
|
$
|
(5.7)
|
|
|
$
|
45.2
|
|
|
$
|
0.99
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
—
|
|
|
3.8
|
|
|
—
|
|
|
3.8
|
|
|
0.08
|
|
|
|
|
Lower of cost or
market inventory adjustments
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
|
Income tax effect of
pre-tax adjustments (1)
|
—
|
|
|
(1.4)
|
|
|
—
|
|
|
(1.4)
|
|
|
(0.03)
|
|
|
Net Economic
Earnings (Loss) (Non-GAAP)
|
$
|
51.8
|
|
|
$
|
1.4
|
|
|
$
|
(5.7)
|
|
|
$
|
47.5
|
|
|
$
|
1.04
|
|
|
|
|
Diluted EPS
(GAAP)
|
$
|
1.13
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.12)
|
|
|
$
|
0.99
|
|
|
|
|
|
|
Net Economic EPS
(Non-GAAP) (2)
|
$
|
1.13
|
|
|
$
|
0.03
|
|
|
$
|
(0.12)
|
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income taxes are
calculated by applying federal, state, and local income tax rates
applicable to ordinary income to the amounts of the pre-tax
reconciling items.
|
(2) Net economic
earnings per share is calculated by replacing consolidated net
income with consolidated net economic earnings in the GAAP diluted
EPS calculation.
|
Note: EPS amounts by
segment represent contributions to Spire's consolidated
EPS.
|
Contribution Margin
and Reconciliation to GAAP
|
|
(In
Millions)
|
Gas
Utility
|
|
Gas
Marketing
|
|
Other
|
|
Eliminations
|
|
Consolidated
|
Three Months Ended
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) (GAAP)
|
$
|
101.8
|
|
|
$
|
5.0
|
|
|
$
|
(1.7)
|
|
|
$
|
—
|
|
|
$
|
105.1
|
|
|
Operation and
maintenance expenses
|
99.8
|
|
|
1.6
|
|
|
4.3
|
|
|
(2.3)
|
|
|
103.4
|
|
|
Depreciation and
amortization
|
40.3
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
40.4
|
|
|
Taxes, other than
income taxes
|
36.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36.7
|
|
|
Less: Gross receipts
tax expense
|
(23.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23.1)
|
|
|
Contribution
Margin (Non-GAAP)
|
255.5
|
|
|
6.6
|
|
|
2.7
|
|
|
(2.3)
|
|
|
262.5
|
|
|
Natural and propane
gas costs
|
263.4
|
|
|
13.0
|
|
|
0.1
|
|
|
(0.3)
|
|
|
276.2
|
|
|
Gross receipts tax
expense
|
23.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.1
|
|
|
Operating
Revenues
|
$
|
542.0
|
|
|
$
|
19.6
|
|
|
$
|
2.8
|
|
|
$
|
(2.6)
|
|
|
$
|
561.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) (GAAP)
|
$
|
90.6
|
|
|
$
|
(1.3)
|
|
|
$
|
(0.2)
|
|
|
$
|
—
|
|
|
$
|
89.1
|
|
|
Operation and
maintenance expenses
|
100.5
|
|
|
1.4
|
|
|
1.8
|
|
|
(1.2)
|
|
|
102.5
|
|
|
Depreciation and
amortization
|
37.7
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
37.8
|
|
|
Taxes, other than
income taxes
|
33.4
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
33.6
|
|
|
Less: Gross receipts
tax expense
|
(19.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.0)
|
|
|
Contribution
Margin (Non-GAAP)
|
243.2
|
|
|
0.2
|
|
|
1.8
|
|
|
(1.2)
|
|
|
244.0
|
|
|
Natural and propane
gas costs
|
214.5
|
|
|
21.5
|
|
|
—
|
|
|
(3.9)
|
|
|
232.1
|
|
|
Gross receipts tax
expense
|
19.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.0
|
|
|
Operating
Revenues
|
$
|
476.7
|
|
|
$
|
21.7
|
|
|
$
|
1.8
|
|
|
$
|
(5.1)
|
|
|
$
|
495.1
|
|
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SOURCE Spire Inc.