ST. LOUIS, Nov. 15, 2018 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal 2018 full year and
fourth quarter ended September 30.
Highlights include:
- Fiscal 2018 diluted earnings per share of $4.33, compared to $3.43 in fiscal 2017
- Net economic earnings* per share of $3.72, up 4.5 percent from a year ago
- Dividend increased to an annualized $2.37 per share
- Long-term earnings growth target of 4-7 percent affirmed
- Fiscal 2019 net economic earnings per share expected to be
$3.70-$3.80
"I'm so proud of our Spire employees who delivered another year
of solid performance. Together, we achieved higher earnings per
share reflecting organic growth, investments in infrastructure
upgrades, technology and new business, as well as strong
performance by Spire Marketing. Of particular importance, we have
achieved certainty in Missouri and
Alabama regulatory outcomes," said
Suzanne Sitherwood, president and
chief executive officer of Spire. "With regulatory resets behind
us, we are focused on organic growth across our businesses, having
recently named business unit presidents to lead these efforts. I'm
excited about the coming year as we continue to grow and strengthen
Spire for long-term success through our utilities and other
businesses including Spire STL Pipeline. We're well positioned to
deliver both improved operating performance and increased earnings
per share, while continuing to elevate the customer
experience."
Fiscal 2018
Results
|
Year ended
September 30,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
183.1
|
|
|
$
|
181.5
|
|
|
$
|
3.71
|
|
|
$
|
3.86
|
|
|
Gas
Marketing
|
22.9
|
|
|
6.8
|
|
|
0.46
|
|
|
0.14
|
|
|
Other
|
(22.3)
|
|
|
(20.7)
|
|
|
(0.45)
|
|
|
(0.44)
|
|
|
Total
|
$
|
183.7
|
|
|
$
|
167.6
|
|
|
$
|
3.72
|
|
|
$
|
3.56
|
|
|
Missouri regulatory
adjustments, pre-tax
|
(30.6)
|
|
|
—
|
|
|
(0.62)
|
|
|
—
|
|
|
Fair value
adjustments, pre-tax
|
4.3
|
|
|
(5.7)
|
|
|
0.09
|
|
|
(0.12)
|
|
|
Acquisition-related
adjustments, pre-tax
|
(13.6)
|
|
|
(4.0)
|
|
|
(0.28)
|
|
|
(0.09)
|
|
|
Income tax effect of
adjustments
|
10.3
|
|
|
3.7
|
|
|
0.21
|
|
|
0.08
|
|
|
Effect of the Tax
Cuts and Jobs Act
|
60.1
|
|
|
—
|
|
|
1.21
|
|
|
—
|
|
Net
Income
|
$
|
214.2
|
|
|
$
|
161.6
|
|
|
$
|
4.33
|
|
|
$
|
3.43
|
|
|
|
|
|
|
|
|
|
Average Diluted
Shares Outstanding
|
49.3
|
|
|
47.0
|
|
|
|
|
|
|
* Non-GAAP, see "Net
Economic Earnings [Non-GAAP] and Reconciliation to
GAAP."
|
For fiscal 2018, we reported consolidated net income of
$214.2 million (or $4.33 per diluted share) up from $161.6 million (or $3.43 per share) for the prior year. Net economic
earnings (NEE) for the year were $183.7
million (or $3.72 per share)
up from $167.6 million (or
$3.56 per share) a year ago. This 4.5
percent increase in NEE per share includes slightly higher Gas
Utility NEE, reflecting certain impacts of our Missouri rate cases and tax reform, and much
stronger results from Gas Marketing, both of which were impacted by
a 4.9 percent increase in diluted shares outstanding.
NEE excludes from net income the impacts of fair value
accounting and timing adjustments associated with energy-related
transactions, the impacts of acquisition, divestiture and
restructuring activities, and the largely non-cash impacts of other
non-recurring or unusual items such as certain regulatory,
legislative or GAAP standard-setting actions. In fiscal 2018, these
impacts included the revaluation of deferred tax assets and
liabilities due to the Tax Cuts and Jobs Act and the write-off of
certain assets that were disallowed in our Missouri rate proceedings.
Gas Utility
The Gas Utility segment includes the regulated distribution
operations of our five gas utilities across Alabama, Mississippi and Missouri. For fiscal 2018, NEE was
$183.1 million, up from $181.5 million in 2017, reflecting a higher
contribution margin and the benefit of the lower income tax rate,
offset by higher operating expenses.
Contribution margin was $947.5
million, an increase of $8.5
million over the prior year, with $29.2 million due to higher volumetric usage at
Spire Alabama and Spire Missouri, both of which experienced colder
temperatures than a year ago. Contribution margin also benefited
from an increase in Infrastructure System Replacement Surcharge
(ISRS) revenues of $5.2 million and
customer growth of $2.6 million.
These increases were largely offset by a $20.6 million reduction due to a change in the
rate design at our Missouri
utilities, and by $11.2 million due
to the timing of lower rates for Spire Alabama customers as a
result of the decrease in the income tax rate. The Missouri rate design change, which was
effective in April, shifts more of our margin and earnings from the
warm summer months, including our fiscal fourth quarter, to the
winter months (our fiscal first and second quarters).
Operation and maintenance (O&M) expenses of $455.6 million were up $50.6 million. Excluding $36.6 million in gross write-offs of disallowed
O&M recoveries in our Missouri
rate cases, O&M expenses increased $14.0
million. This increase includes $7.0
million in new amortization of pension, other postretirement
costs and other regulatory assets as set in our Missouri rate cases. The increase also
reflects higher employee-related costs and bad debt expense
attributable to colder weather. Depreciation and amortization rose
by $13.5 million, reflecting higher
capital investment.
Gas Marketing
The Gas Marketing segment includes the operations of Spire
Marketing, which provides natural gas marketing services across the
country with its core footprint being in the central United States. NEE was $22.9 million, up from $6.8 million in the prior year. The higher
earnings reflect improved market conditions driven by colder
weather and temperature volatility that resulted in increased value
from basis differentials (spreads) as well as transportation and
storage optimization.
Other
Other non-utility operations and corporate costs on an NEE basis
were $22.3 million up from
$20.7 million a year ago. The
increase is largely due to higher after-tax interest and other
corporate costs partially offset by non-cash earnings associated
with Spire STL Pipeline.
Quarterly
Results
|
Three months ended
September 30,
|
|
(Millions)
|
|
(Per Diluted
Share)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net Economic
(Loss) Earnings* by Segment
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
(25.0)
|
|
|
$
|
(5.8)
|
|
|
$
|
(0.49)
|
|
|
$
|
(0.12)
|
|
|
Gas
Marketing
|
4.7
|
|
|
3.1
|
|
|
0.09
|
|
|
0.06
|
|
|
Other
|
(6.3)
|
|
|
(7.8)
|
|
|
(0.12)
|
|
|
(0.16)
|
|
|
Total
|
$
|
(26.6)
|
|
|
$
|
(10.5)
|
|
|
$
|
(0.52)
|
|
|
$
|
(0.22)
|
|
|
Fair value
adjustments, pre-tax
|
0.6
|
|
|
(2.7)
|
|
|
0.01
|
|
|
(0.06)
|
|
|
Acquisition-related
adjustments, pre-tax
|
(6.6)
|
|
|
(1.9)
|
|
|
(0.13)
|
|
|
(0.04)
|
|
|
Income tax effect of
adjustments
|
0.6
|
|
|
1.8
|
|
|
0.01
|
|
|
0.04
|
|
|
Effect of the Tax
Cuts and Jobs Act
|
6.1
|
|
|
—
|
|
|
0.12
|
|
|
—
|
|
Net
Loss
|
$
|
(25.9)
|
|
|
$
|
(13.3)
|
|
|
$
|
(0.51)
|
|
|
$
|
(0.28)
|
|
|
|
|
|
|
|
|
|
Average Diluted
Shares Outstanding
|
50.7
|
|
|
48.3
|
|
|
|
|
|
|
* Non-GAAP, see "Net
Economic Earnings [Non-GAAP] and Reconciliation to
GAAP."
|
Our Gas Utility business is seasonal in nature, with earnings
concentrated during the winter heating season. As a result, we
typically report a loss in our fiscal fourth quarter ended
September 30. For fiscal 2018, we
reported a consolidated net loss for the fourth quarter of
$25.9 million ($0.51 per share) compared to a loss of
$13.3 million ($0.28 per share) in the prior-year period. On an
NEE basis, the loss was $26.6 million
($0.52 per share) in fiscal 2018
compared to a loss of $10.5 million
($0.22 per share) a year ago. The
larger seasonal loss in Gas Utility was driven by the rate design
change in Missouri that shifts
earnings out of warmer summer months and into the winter heating
season, partially offset by higher Gas Marketing earnings.
Gas Utility
Gas Utility reported a loss on an NEE basis of $25.0 million for the fourth quarter of fiscal
2018, compared to a loss of $5.8
million for the same period a year ago. The lower results
reflect a decrease in contribution margin and higher expenses.
Contribution margin decreased by $9.8
million, largely due to the rate design changes at our
Missouri utilities.
O&M expenses of $108.5 million
were up $2.1 million, with the
increase attributable to higher amortization of pension and other
postretirement costs as well as higher employee-related
expenses.
Gas Marketing
Fourth quarter fiscal 2018 NEE for Gas Marketing was
$4.7 million, up $1.6 million from the prior-year period,
reflecting favorable basis differentials and higher volumes that
drove greater transportation optimization.
Other
Other non-utility operations and corporate costs on an NEE basis
were $6.3 million in the fourth
quarter of 2018, down from $7.8
million a year ago. The decrease is largely due to higher
non-cash earnings associated with Spire STL Pipeline.
Dividend Increased by 5.3 Percent
Reflecting our solid performance in fiscal 2018 and expectations
for continued growth, the board of directors of Spire increased the
quarterly common stock dividend to $0.5925 per share, an increase of 5.3 percent.
This raises the annualized rate by $0.12 per share to $2.37 per share. Spire has continuously paid a
cash dividend since 1946, and 2019 will mark the 16th consecutive
year that the dividend has increased. The dividend is payable
January 3, 2019, to shareholders of
record on December 11, 2018.
Balance Sheets and Cash Flow
In fiscal 2018, we continued to strengthen our capital structure
while maintaining ample liquidity. At September 30, 2018, the end of our fiscal year,
we had long-term capitalization of 52.2 percent equity, up 350
basis points compared to a year ago. The increase in equity
capitalization includes our successful issuance of 2.3 million
shares in May 2018, which resulted in
net proceeds of $153 million.
Short-term borrowings outstanding at fiscal year-end were
$553.6 million, up from $477.3 million a year ago, reflecting higher
capital investment and the timing of long-term borrowing, including
issuances planned for both Spire Missouri and Spire Alabama over
the next few months.
Through our $975 million credit
facility, we have ample capacity to meet our anticipated seasonal
borrowing needs heading into the winter heating season. On
October 31, 2018, Spire and the
facility's syndicate banks agreed to renew the facility at its
current $975 million capacity and
extend the term by two years to October 31,
2023.
Net cash provided by operating activities was $456.6 million for fiscal 2018, compared to
$288.3 million for fiscal 2017. The
increase was primarily driven by higher net income and a decrease
in working capital.
Capital expenditures for fiscal 2018 were $499.4 million, up $61.3
million, or 14 percent, from the prior year, as we increased
our investment in infrastructure upgrades and new business across
all our utilities. The increase also reflects higher capital spend
for Spire STL Pipeline and Spire Storage.
For additional details on Spire's results for the fourth quarter
and full year of fiscal 2018, please see the accompanying unaudited
Consolidated Statements of Income, unaudited Condensed Consolidated
Balance Sheets, and unaudited Condensed Consolidated Statements of
Cash Flow.
Spire STL Pipeline and Spire Storage
Spire STL Pipeline
We are progressing with Spire STL Pipeline, 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. The pipeline will
also enhance reliability and the diversity of our physical
transport portfolio.
As reported earlier, on August 3,
we received a Certificate of Public Convenience and Necessity from
the Federal Energy Regulatory Commission (FERC), approving the
project. On November 5, the FERC
issued a Notice to Proceed, giving us the authority to begin
construction. The notice confirms that we have satisfied all FERC
requirements including their review of our implementation plan and
that we have received all required permits.
We have completed the project schedule with our contractor,
targeting an in-service date in the second half of calendar 2019,
pending timely completion of land acquisitions. The estimated
project cost remains $210 million -
$225 million.
Spire Storage
We acquired a majority interest in a large natural gas storage
facility in Wyoming in
December 2017 and acquired the
remaining interest in October 2018.
In May 2018, we expanded our
operations by acquiring a smaller adjacent storage facility. Our
total investment in Spire Storage is $56
million. Spire Storage interconnects with five interstate
pipelines, has access to the Rockies Express Pipeline, and is
strategically located near the Opal hub. It is positioned to serve
multiple regions and customers including utilities, power
generators, marketers and pipelines.
We continue to integrate our Spire Storage facilities while
investing in operational and physical improvements to expand
capacity and capability to serve more customers. The operating
results of Spire Storage, including integration costs, are included
in Other, but are excluded from NEE in fiscal 2018.
Regulatory Matters
Alabama
The parameters of the annual rate setting mechanism in Spire
Alabama – Rate Stabilization and Equalization (RSE) – was subject
to review by the Alabama Public Service Commission (APSC) during
the 2018 rate year. On October 25,
2018, the APSC approved a number of modified RSE parameters,
including:
- A return on equity (ROE) range of 10.15 - 10.65 percent with an
adjusting point of 10.4 percent,
- Capital structure of 55.5 percent equity, and
- Modifications to the Cost Control Measurement used to track
operating expenses and incent cost efficiencies through a sharing
process.
In addition, the APSC established an Accelerated Infrastructure
Modernization rider to encourage and incent Spire Alabama to
accelerate the replacement of all its cast iron and bare steel
distribution pipelines over a 15-year period. During the term of
the program, Spire Alabama's ROE will be adjusted by 10 basis
points depending on its ability to meet the annual baseline for
pipeline replacement miles.
On October 26, 2018, Spire Alabama
and Spire Gulf made their annual RSE rate filings with the APSC,
presenting each utility's budget for the fiscal year ending
September 30, 2019, including net
income and a calculation of return on average common equity at the
allowed levels described earlier. The filings are currently being
reviewed and we anticipate that new rates will be effective
December 1, 2018.
Missouri
Effective October 8, 2018, the
Missouri Public Service Commission (MoPSC) approved ISRS revenues
of $8.0 million for our Spire
Missouri utilities, compared to a requested amount of $11.9 million. The amount not approved relates to
costs for replacement of certain materials determined by the MoPSC
to be non-ISRS eligible. Spire Missouri and the Office of Public Counsel have
requested rehearing of this finding. The ISRS mechanism allows for
more timely recovery of certain investments in infrastructure
upgrades that improve the integrity and safety of our distribution
pipeline system.
Earnings Guidance and Outlook
We affirm our longer-term NEE per share earnings growth target
of 4-7 percent from a base of fiscal 2018 run-rate earnings after
removing $0.17 per share of Spire
Marketing's performance (that is not expected to recur). Our
long-term target reflects the certainty gained from the completion
of regulatory resets in Missouri
and Alabama that resulted in lower
rates for our customers. It also reflects our expectation of
continued growth of our gas utilities driven by organic growth
initiatives as well as increasing capital investment focused on
infrastructure upgrades, technology and new business. Our business
mix is expected to remain predominately regulated and is expected
to include growing contributions from our gas-related
businesses.
Consistent with our long-term growth target, we expect fiscal
2019 NEE to be in the range of $3.70-$3.80 per
share, reflecting growth across all of our businesses.
Capital expenditures for fiscal 2019 are expected to be
$650 million, with investment in our
gas utilities totaling $475 million
and the remainder supporting our pipeline and storage businesses.
We anticipate our capital investment for the 5-year period
2018-2022 to be $2.6 billion, and we
expect most of that spend to be in our gas utilities, where more
than 85 percent will be recovered in rates with minimal lag under
regulatory mechanisms or reflected in earnings.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2018 fourth quarter and full year financial results. To
access the call, please dial the applicable number approximately
5-10 minutes prior to the start time.
Date and
Time:
|
Thursday, November
15
|
|
|
8:00 a.m. CT (9:00
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 12:30 p.m. CT (1:30 p.m.
ET) on November 15 until
December 15 by dialing 877-344-7529
(U.S.), 855-669-9658 (Canada), or
412-317-0088 (international). The replay access code is 10125650. A
replay of the webcast will be available at SpireEnergy.com.
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 natural gas-related businesses
include Spire Marketing, Spire STL Pipeline and Spire Storage. We
are 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 acquisitions.
For a more complete description of these uncertainties and risk
factors, see the Company's Form 10-K for the fiscal year ended
September 30, 2018, 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
impacts of fair value accounting and timing adjustments associated
with energy-related transactions, the impacts of acquisition,
divestiture and restructuring activities and the largely non-cash
impacts of other non-recurring or unusual items such as certain
regulatory, legislative, or GAAP standard-setting actions. In
fiscal 2018, these items included the revaluation of deferred tax
assets and liabilities due to the Tax Cuts and Jobs Act and the
write-off of certain long-standing assets as a result of
disallowances in our Missouri rate
proceedings. 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.
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.
Scott.Dudley@SpireEnergy.com
314-342-0878
Media Contact:
Jessica B. Willingham
Jessica.Willingham@SpireEnergy.com
314-342-3300
Consolidated
Statements of Income - Unaudited
|
Spire
Inc.
|
(In Millions,
except per share amounts)
|
|
|
|
Three months
ended
September 30,
|
|
Year ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Operating
Revenues:
|
|
|
|
|
|
|
|
|
Gas
Utility
|
$
|
220.7
|
|
|
$
|
240.9
|
|
|
$
|
1,888.0
|
|
|
$
|
1,660.0
|
|
|
Gas Marketing and
other
|
18.5
|
|
|
17.8
|
|
|
77.0
|
|
|
80.7
|
|
|
Total Operating
Revenues
|
239.2
|
|
|
258.7
|
|
|
1,965.0
|
|
|
1,740.7
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Gas
Utility
|
|
|
|
|
|
|
|
|
Natural and propane
gas
|
38.4
|
|
|
45.7
|
|
|
770.1
|
|
|
570.5
|
|
|
Other operation and
maintenance expenses
|
108.5
|
|
|
106.4
|
|
|
455.6
|
|
|
405.0
|
|
|
Depreciation and
amortization
|
45.1
|
|
|
39.5
|
|
|
167.0
|
|
|
153.5
|
|
|
Taxes, other than
income taxes
|
24.3
|
|
|
25.6
|
|
|
152.5
|
|
|
137.8
|
|
|
Total Gas Utility
Operating Expenses
|
216.3
|
|
|
217.2
|
|
|
1,545.2
|
|
|
1,266.8
|
|
|
Gas Marketing and
other
|
42.5
|
|
|
39.6
|
|
|
140.1
|
|
|
152.2
|
|
|
Total Operating
Expenses
|
258.8
|
|
|
256.8
|
|
|
1,685.3
|
|
|
1,419.0
|
|
Operating (Loss)
Income
|
(19.6)
|
|
|
1.9
|
|
|
279.7
|
|
|
321.7
|
|
Other Income -
Net
|
0.1
|
|
|
1.0
|
|
|
6.4
|
|
|
6.6
|
|
Interest
Charges:
|
|
|
|
|
|
|
|
|
Interest on long-term
debt
|
20.5
|
|
|
19.5
|
|
|
83.0
|
|
|
76.8
|
|
|
Other interest
charges
|
3.9
|
|
|
3.4
|
|
|
15.4
|
|
|
12.3
|
|
|
Total Interest
Charges
|
24.4
|
|
|
22.9
|
|
|
98.4
|
|
|
89.1
|
|
(Loss) Income Before
Income Taxes
|
(43.9)
|
|
|
(20.0)
|
|
|
187.7
|
|
|
239.2
|
|
Income Tax (Benefit)
Expense
|
(18.0)
|
|
|
(6.7)
|
|
|
(26.5)
|
|
|
77.6
|
|
Net (Loss)
Income
|
$
|
(25.9)
|
|
|
$
|
(13.3)
|
|
|
$
|
214.2
|
|
|
$
|
161.6
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
50.6
|
|
|
48.1
|
|
|
49.1
|
|
|
46.9
|
|
|
Diluted
|
50.7
|
|
|
48.3
|
|
|
49.3
|
|
|
47.0
|
|
|
|
|
|
|
|
|
|
|
Basic (Loss) Earnings
Per Share of Common Stock
|
$
|
(0.51)
|
|
|
$
|
(0.28)
|
|
|
$
|
4.35
|
|
|
$
|
3.44
|
|
Diluted (Loss)
Earnings Per Share of Common Stock
|
$
|
(0.51)
|
|
|
$
|
(0.28)
|
|
|
$
|
4.33
|
|
|
$
|
3.43
|
|
Dividends Declared
Per Share of Common Stock
|
$
|
0.5625
|
|
|
$
|
0.525
|
|
|
$
|
2.25
|
|
|
$
|
2.10
|
|
Condensed
Consolidated Balance Sheets - Unaudited
|
Spire
Inc.
|
(In
Millions)
|
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2017
|
Assets
|
|
|
|
Utility
Plant
|
$
|
5,653.3
|
|
|
$
|
5,278.4
|
|
Less:
Accumulated depreciation and amortization
|
1,682.8
|
|
|
1,613.2
|
|
Net Utility
Plant
|
3,970.5
|
|
|
3,665.2
|
|
Non-utility
Property
|
174.5
|
|
|
52.0
|
|
Goodwill
|
1,171.6
|
|
|
1,171.6
|
|
Other
Investments
|
68.7
|
|
|
64.2
|
|
Other Property and
Investments
|
1,414.8
|
|
|
1,287.8
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
4.4
|
|
|
7.4
|
|
Accounts receivable
(net of allowance for doubtful accounts)
|
296.8
|
|
|
271.4
|
|
Inventories
|
210.3
|
|
|
225.8
|
|
Other
|
148.1
|
|
|
220.9
|
|
Total Current
Assets
|
659.6
|
|
|
725.5
|
|
Deferred Charges and
Other Assets
|
798.7
|
|
|
868.2
|
|
Total
Assets
|
$
|
6,843.6
|
|
|
$
|
6,546.7
|
|
|
|
|
|
Capitalization and
Liabilities
|
|
|
|
Capitalization:
|
|
|
|
Common stock and
paid-in capital
|
$
|
1,533.4
|
|
|
$
|
1,373.9
|
|
Retained
earnings
|
715.6
|
|
|
614.2
|
|
Accumulated other
comprehensive income
|
6.4
|
|
|
3.2
|
|
Total Shareholders'
Equity
|
2,255.4
|
|
|
1,991.3
|
|
Redeemable
noncontrolling interest
|
7.9
|
|
|
—
|
|
Long-term
debt
|
1,900.1
|
|
|
1,995.0
|
|
Total
Capitalization
|
4,163.4
|
|
|
3,986.3
|
|
Current
Liabilities:
|
|
|
|
Current portion of
long-term debt
|
175.5
|
|
|
100.0
|
|
Notes
payable
|
553.6
|
|
|
477.3
|
|
Accounts
payable
|
290.1
|
|
|
257.1
|
|
Accrued liabilities
and other
|
302.5
|
|
|
263.5
|
|
Total Current
Liabilities
|
1,321.7
|
|
|
1,097.9
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
Deferred income
taxes
|
435.8
|
|
|
707.5
|
|
Pension and
postretirement benefit costs
|
180.2
|
|
|
237.4
|
|
Asset retirement
obligations
|
321.1
|
|
|
296.6
|
|
Regulatory
liabilities
|
354.6
|
|
|
157.2
|
|
Other
|
66.8
|
|
|
63.8
|
|
Total Deferred Credits
and Other Liabilities
|
1,358.5
|
|
|
1,462.5
|
|
Total Capitalization
and Liabilities
|
$
|
6,843.6
|
|
|
$
|
6,546.7
|
|
Condensed
Consolidated Statements of Cash Flow - Unaudited
|
Spire
Inc.
|
(In
Millions)
|
|
|
Year ended
September 30,
|
|
2018
|
|
2017
|
Operating
Activities:
|
|
|
|
Net Income
|
$
|
214.2
|
|
|
$
|
161.6
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
168.4
|
|
|
154.1
|
|
Deferred income taxes
and investment tax credits
|
(28.7)
|
|
|
77.0
|
|
Changes in assets and
liabilities
|
58.5
|
|
|
(108.6)
|
|
Other
|
44.2
|
|
|
4.2
|
|
Net cash provided by
operating activities
|
456.6
|
|
|
288.3
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(499.4)
|
|
|
(438.1)
|
|
Business acquisitions,
net of cash acquired, and related settlements
|
(28.1)
|
|
|
3.8
|
|
Other
|
(4.2)
|
|
|
0.8
|
|
Net cash used in
investing activities
|
(531.7)
|
|
|
(433.5)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
Repayment of long-term
debt
|
(105.0)
|
|
|
(393.8)
|
|
Issuance of long-term
debt
|
75.0
|
|
|
420.0
|
|
Issuance of short-term
debt, net
|
76.3
|
|
|
78.6
|
|
Issuance of common
stock
|
154.7
|
|
|
146.9
|
|
Dividends
paid
|
(108.7)
|
|
|
(96.2)
|
|
Other
|
(3.2)
|
|
|
(8.1)
|
|
Net cash provided by
financing activities
|
89.1
|
|
|
147.4
|
|
|
|
|
|
Net Increase in Cash,
Cash Equivalents, and Restricted Cash
|
14.0
|
|
|
2.2
|
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning of Year
|
7.4
|
|
|
5.2
|
|
Cash, Cash
Equivalents, and Restricted Cash at End of Year
|
$
|
21.4
|
|
|
$
|
7.4
|
|
Net Economic (Loss)
Earnings [Non-GAAP] and Reconciliation to GAAP
|
|
(In Millions,
except per share amounts)
|
Gas
Utility
|
|
Gas
Marketing
|
|
Other
|
|
Consol-
idated
|
|
Per Diluted
Share(2)
|
Three Months Ended
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
[GAAP]
|
$
|
(21.8)
|
|
|
$
|
4.9
|
|
|
$
|
(9.0)
|
|
|
$
|
(25.9)
|
|
|
$
|
(0.51)
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
energy-related derivatives
|
—
|
|
|
(0.6)
|
|
|
—
|
|
|
(0.6)
|
|
|
(0.01)
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
—
|
|
|
—
|
|
|
6.6
|
|
|
6.6
|
|
|
0.13
|
|
|
|
Income tax effect of
adjustments (1)
|
0.1
|
|
|
0.2
|
|
|
(0.9)
|
|
|
(0.6)
|
|
|
(0.01)
|
|
|
|
Effect of the Tax
Cuts and Jobs Act
|
(3.3)
|
|
|
0.2
|
|
|
(3.0)
|
|
|
(6.1)
|
|
|
(0.12)
|
|
|
Net Economic
(Loss) Earnings [Non-GAAP]
|
$
|
(25.0)
|
|
|
$
|
4.7
|
|
|
$
|
(6.3)
|
|
|
$
|
(26.6)
|
|
|
$
|
(0.52)
|
|
|
|
|
Diluted EPS
[GAAP]
|
$
|
(0.43)
|
|
|
$
|
0.10
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.51)
|
|
|
|
|
|
|
Net Economic EPS
[Non-GAAP] (2)
|
$
|
(0.49)
|
|
|
$
|
0.09
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.52)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
[GAAP]
|
$
|
(6.5)
|
|
|
$
|
1.5
|
|
|
$
|
(8.3)
|
|
|
$
|
(13.3)
|
|
|
$
|
(0.28)
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
—
|
|
|
2.8
|
|
|
—
|
|
|
2.8
|
|
|
0.06
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
1.2
|
|
|
—
|
|
|
0.7
|
|
|
1.9
|
|
|
0.04
|
|
|
|
Income tax effect of
adjustments (1)
|
(0.5)
|
|
|
(1.1)
|
|
|
(0.2)
|
|
|
(1.8)
|
|
|
(0.04)
|
|
|
Net Economic
(Loss) Earnings [Non-GAAP]
|
$
|
(5.8)
|
|
|
$
|
3.1
|
|
|
$
|
(7.8)
|
|
|
$
|
(10.5)
|
|
|
$
|
(0.22)
|
|
|
|
|
Diluted EPS
[GAAP]
|
$
|
(0.14)
|
|
|
$
|
0.03
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.28)
|
|
|
|
|
|
|
Net Economic EPS
[Non-GAAP] (2)
|
$
|
(0.12)
|
|
|
$
|
0.06
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.22)
|
|
|
|
|
(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 and then adding any estimated effects of enacted
state or local income tax laws for periods before the effective
date.
|
|
(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.
|
Net Economic Earnings
(Loss) [Non-GAAP] and Reconciliation to GAAP
|
|
(In Millions,
except per share amounts)
|
Gas
Utility
|
|
Gas
Marketing
|
|
Other
|
|
Consol-
idated
|
|
Per Diluted
Share(2)
|
Year Ended
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
Net Income
[GAAP]
|
$
|
144.4
|
|
|
$
|
24.9
|
|
|
$
|
44.9
|
|
|
$
|
214.2
|
|
|
$
|
4.33
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Missouri regulatory
adjustments
|
30.6
|
|
|
—
|
|
|
—
|
|
|
30.6
|
|
|
0.62
|
|
|
|
|
Unrealized gain on
energy-related derivatives
|
—
|
|
|
(4.0)
|
|
|
—
|
|
|
(4.0)
|
|
|
(0.08)
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
|
(0.01)
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
0.2
|
|
|
—
|
|
|
13.4
|
|
|
13.6
|
|
|
0.28
|
|
|
|
Income tax effect of
adjustments (1)
|
(9.1)
|
|
|
1.2
|
|
|
(2.4)
|
|
|
(10.3)
|
|
|
(0.21)
|
|
|
|
Effect of the Tax
Cuts and Jobs Act
|
17.0
|
|
|
1.1
|
|
|
(78.2)
|
|
|
(60.1)
|
|
|
(1.21)
|
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
$
|
183.1
|
|
|
$
|
22.9
|
|
|
$
|
(22.3)
|
|
|
$
|
183.7
|
|
|
$
|
3.72
|
|
|
|
|
Diluted EPS
[GAAP]
|
$
|
2.92
|
|
|
$
|
0.50
|
|
|
$
|
0.91
|
|
|
$
|
4.33
|
|
|
|
|
|
|
Net Economic EPS
[Non-GAAP] (2)
|
$
|
3.71
|
|
|
$
|
0.46
|
|
|
$
|
(0.45)
|
|
|
$
|
3.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
$
|
180.5
|
|
|
$
|
3.4
|
|
|
$
|
(22.3)
|
|
|
$
|
161.6
|
|
|
$
|
3.43
|
|
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
energy-related derivatives
|
0.1
|
|
|
5.9
|
|
|
—
|
|
|
6.0
|
|
|
0.13
|
|
|
|
|
Realized gain on
economic hedges prior to the sale of the physical
commodity
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
|
(0.01)
|
|
|
|
|
Acquisition,
divestiture and restructuring activities
|
1.5
|
|
|
—
|
|
|
2.5
|
|
|
4.0
|
|
|
0.09
|
|
|
|
Income tax effect of
adjustments (1)
|
(0.6)
|
|
|
(2.2)
|
|
|
(0.9)
|
|
|
(3.7)
|
|
|
(0.08)
|
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
$
|
181.5
|
|
|
$
|
6.8
|
|
|
$
|
(20.7)
|
|
|
$
|
167.6
|
|
|
$
|
3.56
|
|
|
|
|
Diluted EPS
[GAAP]
|
$
|
3.83
|
|
|
$
|
0.07
|
|
|
$
|
(0.47)
|
|
|
$
|
3.43
|
|
|
|
|
|
|
Net Economic EPS
[Non-GAAP] (2)
|
$
|
3.86
|
|
|
$
|
0.14
|
|
|
$
|
(0.44)
|
|
|
$
|
3.56
|
|
|
|
|
(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 and then adding any estimated effects of enacted
state or local income tax laws for periods before the effective
date.
|
|
(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
[Non-GAAP] and Reconciliation to GAAP
|
|
(In
Millions)
|
Gas
Utility
|
|
Gas
Marketing
|
|
Other
|
|
Eliminations
|
|
Consolidated
|
Three Months Ended
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Income [GAAP]
|
$
|
(17.3)
|
|
|
$
|
6.1
|
|
|
$
|
(8.4)
|
|
|
$
|
—
|
|
|
$
|
(19.6)
|
|
|
Operation and
maintenance expenses
|
110.6
|
|
|
2.3
|
|
|
12.5
|
|
|
(2.6)
|
|
|
122.8
|
|
|
Depreciation and
amortization
|
45.1
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
45.5
|
|
|
Taxes, other than
income taxes
|
24.3
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
24.7
|
|
|
Less: Gross receipts
taxes
|
(11.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.3)
|
|
|
Contribution
Margin [Non-GAAP]
|
151.4
|
|
|
8.4
|
|
|
4.9
|
|
|
(2.6)
|
|
|
162.1
|
|
|
Natural and propane
gas expense
|
58.1
|
|
|
7.9
|
|
|
0.1
|
|
|
(0.3)
|
|
|
65.8
|
|
|
Gross receipts tax
expense
|
11.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.3
|
|
|
Operating Revenues
[GAAP]
|
$
|
220.8
|
|
|
$
|
16.3
|
|
|
$
|
5.0
|
|
|
$
|
(2.9)
|
|
|
$
|
239.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
$
|
1.3
|
|
|
$
|
2.3
|
|
|
$
|
(1.7)
|
|
|
$
|
—
|
|
|
$
|
1.9
|
|
|
Operation and
maintenance expenses
|
107.4
|
|
|
1.5
|
|
|
3.4
|
|
|
(1.6)
|
|
|
110.7
|
|
|
Depreciation and
amortization
|
39.5
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
39.7
|
|
|
Taxes, other than
income taxes
|
25.6
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
25.8
|
|
|
Less: Gross receipts
taxes
|
(12.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.6)
|
|
|
Contribution
Margin [Non-GAAP]
|
161.2
|
|
|
4.0
|
|
|
1.9
|
|
|
(1.6)
|
|
|
165.5
|
|
|
Natural and propane
gas expense
|
67.1
|
|
|
13.5
|
|
|
0.1
|
|
|
(0.1)
|
|
|
80.6
|
|
|
Gross receipts tax
expense
|
12.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.6
|
|
|
Operating Revenues
[GAAP]
|
$
|
240.9
|
|
|
$
|
17.5
|
|
|
$
|
2.0
|
|
|
$
|
(1.7)
|
|
|
$
|
258.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
$
|
262.2
|
|
|
$
|
33.8
|
|
|
$
|
(16.3)
|
|
|
$
|
—
|
|
|
$
|
279.7
|
|
|
Operation and
maintenance expenses
|
464.1
|
|
|
7.4
|
|
|
30.3
|
|
|
(10.1)
|
|
|
491.7
|
|
|
Depreciation and
amortization
|
167.0
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
168.4
|
|
|
Taxes, other than
income taxes
|
152.5
|
|
|
0.2
|
|
|
0.8
|
|
|
—
|
|
|
153.5
|
|
|
Less: Gross receipts
taxes
|
(98.3)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(98.4)
|
|
|
Contribution
Margin [Non-GAAP]
|
947.5
|
|
|
41.3
|
|
|
16.2
|
|
|
(10.1)
|
|
|
994.9
|
|
|
Natural and propane
gas expense
|
842.6
|
|
|
30.2
|
|
|
0.3
|
|
|
(1.4)
|
|
|
871.7
|
|
|
Gross receipts tax
expense
|
98.3
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
98.4
|
|
|
Operating Revenues
[GAAP]
|
$
|
1,888.4
|
|
|
$
|
71.6
|
|
|
$
|
16.5
|
|
|
$
|
(11.5)
|
|
|
$
|
1,965.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
$
|
321.6
|
|
|
$
|
5.2
|
|
|
$
|
(5.1)
|
|
|
$
|
—
|
|
|
$
|
321.7
|
|
|
Operation and
maintenance expenses
|
409.1
|
|
|
5.9
|
|
|
11.8
|
|
|
(5.5)
|
|
|
421.3
|
|
|
Depreciation and
amortization
|
153.5
|
|
|
0.1
|
|
|
0.5
|
|
|
—
|
|
|
154.1
|
|
|
Taxes, other than
income taxes
|
137.8
|
|
|
0.5
|
|
|
0.2
|
|
|
—
|
|
|
138.5
|
|
|
Less: Gross receipts
taxes
|
(83.0)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(83.1)
|
|
|
Contribution
Margin [Non-GAAP]
|
939.0
|
|
|
11.6
|
|
|
7.4
|
|
|
(5.5)
|
|
|
952.5
|
|
|
Natural and propane
gas expense
|
645.9
|
|
|
67.6
|
|
|
0.3
|
|
|
(8.7)
|
|
|
705.1
|
|
|
Gross receipts tax
expense
|
83.0
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
83.1
|
|
|
Operating Revenues
[GAAP]
|
$
|
1,667.9
|
|
|
$
|
79.3
|
|
|
$
|
7.7
|
|
|
$
|
(14.2)
|
|
|
$
|
1,740.7
|
|
View original
content:http://www.prnewswire.com/news-releases/spire-reports-2018-results-300750871.html
SOURCE Spire Inc.