ST. LOUIS, Aug. 5, 2021 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal third quarter
ended June 30, 2021. Highlights
include:
- Net income of $5.3 million
($0.03 per diluted share), compared
to a prior-period loss of $92.3
million, or $1.87 per
share
- Net economic earnings (NEE) of $6.9
million ($0.06 per share),
compared to $7.3 million
($0.07 per share) a year ago
- Fiscal 2021 NEE guidance range of $4.30 - $4.50 per
share and capital expenditures outlook of $590 million are reaffirmed
"Thanks to the hard work and dedication of 3,600 Spire
employees, we posted another solid quarter, delivering earnings
comparable to a year ago," said Suzanne
Sitherwood, president and chief executive officer. "We
remain on track with our comprehensive plans to upgrade utility
infrastructure and technology, all in an effort to ensure our
customers receive the safe, reliable and affordable natural gas
service they deserve.
"That said, our ability to meet the future energy needs of our
customers in eastern Missouri
could be in jeopardy. A recent federal appeals court decision
vacated the 2018 FERC certificate that authorized the construction
and operation of STL Pipeline. While the court decision was against
the FERC, the ruling has significant implications for hundreds of
thousands of homes and businesses throughout the St. Louis
region. Know that we're emphatically pursuing all legal and
regulatory avenues to ensure this critical energy infrastructure is
available to serve our customers and communities."
Spire STL Pipeline
On June 22, 2021, the U.S. Court
of Appeals for the District of
Columbia (DC) Circuit issued an order in a case brought by
parties challenging the certificates granted by the Federal Energy
Regulatory Commission (FERC) for construction and operation of
Spire STL Pipeline that has been in service since November 2019. The decision vacated the FERC's
order authorizing the pipeline and remanded the proceedings back to
the FERC.
STL Pipeline is critical infrastructure that more than 650,000
households and businesses in eastern Missouri rely on for reliable and affordable
natural gas service. The pipeline was approved after a thorough
review by the FERC using a rigorous regulatory process that has
been in place for decades. In addition to providing a necessary
diversity of supply, STL Pipeline was designed and constructed to
uphold our commitment to the environment and the communities we
serve.
Since becoming fully operational more than 18 months ago, the
pipeline has proven to be an essential energy resource. Without STL
Pipeline, we estimate that in February during Winter Storm Uri, 133,000 homes and businesses
would have been without natural gas service and all eastern
Missouri customers would have
experienced the impact of hundreds of millions of dollars in higher
gas costs. Further, taking the pipeline out of service would
jeopardize Spire Missouri's ability to provide energy to serve the
St. Louis region this winter. Our ability to secure new
pipeline capacity is significantly constrained, and the gas supply
would not be able to be completely replaced based on current market
and operating conditions. This could lead to potentially
significant service disruptions that would have detrimental impacts
on the health and safety of our customers.
We are emphatically pursuing all legal and regulatory avenues to
ensure the continued operation of STL Pipeline. To that end, on
July 26, we filed with the FERC for a
Temporary Emergency Certificate to enable Spire Missouri to
maintain adequate service, until the FERC issues an order on remand
in connection with the DC Circuit decision noted above. Our action
has garnered support for STL Pipeline from many individuals and
groups, including the Missouri
governor, elected officials, commercial and industrial customers
and several others.
Today we will file a request for rehearing with the DC Circuit
Court, asking the court to reconsider its order to vacate the
certificate.
Missouri rate review
Spire Missouri's rate review
continues to progress according to schedule, since our December 2020 filing of the case and related
testimony. Our rate review filing seeks recovery of costs and more
than $850 million in capital investments since 2018 which are
designed to make our system safer, more reliable and cleaner for
our customers and communities.
Other interested parties to the case submitted their testimony
in May, followed by all parties submitting rebuttal testimony in
June and July, including Spire Missouri updating financial
information in its initial filing through the test year update
period ended May 31, 2021.
On July 30, Spire Missouri, the
Staff of the Missouri Public Service Commission (MoPSC) and the
other parties to the case filed a Partial Stipulation and Agreement
settling a number of issues. Hearings before the MoPSC began on
August 2.
Third Quarter
Results
|
|
Three Months Ended
June 30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
12.3
|
|
|
$
|
8.4
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
(5.2)
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(0.2)
|
|
|
|
(1.2)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
6.9
|
|
|
$
|
7.3
|
|
|
$
|
0.06
|
|
|
$
|
0.07
|
|
Impairments,
pre-tax
|
|
|
—
|
|
|
|
(148.6)
|
|
|
|
—
|
|
|
|
(2.89)
|
|
Other net economic
earnings adjustments, pre-tax
|
|
|
(2.1)
|
|
|
|
23.3
|
|
|
|
(0.04)
|
|
|
|
0.45
|
|
Income tax effect of
pre-tax adjustments
|
|
|
0.5
|
|
|
|
25.7
|
|
|
|
0.01
|
|
|
|
0.50
|
|
Net Income
(Loss)
|
|
$
|
5.3
|
|
|
$
|
(92.3)
|
|
|
$
|
0.03
|
|
|
$
|
(1.87)
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
51.7
|
|
|
|
51.2
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see
"Net Economic Earnings and Reconciliation to GAAP and Cautionary
Statements regarding non-GAAP measures including net economic
earnings."
|
Consolidated net income for the three months ended June 30, 2021, the third quarter of our fiscal
year, was $5.3 million ($0.03 per diluted share), compared to a loss of
$92.3 million ($1.87 loss per share) a year ago. The prior
period includes non-cash, pre-tax impairment charges totaling
$148.6 million ($117.3 million after tax) that principally
related to a write-down of Spire Storage.
Net economic earnings (NEE) for the third quarter of fiscal 2021
was $6.9 million ($0.06 per share) compared to $7.3 million ($0.07
per share) last year, reflecting higher earnings from our gas
utilities and offset by lower results from Gas Marketing.
Gas Utility
The Gas Utility segment includes the regulated distribution
operations of our five gas utilities across Alabama, Mississippi and Missouri. Third quarter NEE was $12.3 million, up from $8.4 million in the prior year, reflecting a
higher contribution margin partially offset by higher expenses.
Contribution margin increased $5.7
million, reflecting favorable rate adjustments at Spire
Alabama of $4.1 million and higher
ISRS at Spire Missouri of $1.5
million.
Operation and maintenance (O&M) expenses of $103.2 million for the quarter were $12.3 million lower than the same period a year
ago. However, excluding a $14.2
million year-over-year impact from the reclassification of
certain pension costs to below the operating income line (no
bottom-line impact), O&M expenses were up $1.9 million. This slight increase reflects
higher operations and employee-related expenses. Depreciation and
amortization expenses increased $3.1 million due to incremental capital
investment.
Gas Marketing
The Gas Marketing segment includes the results of Spire
Marketing, which provides natural gas marketing services across the
majority of the United States. On
an NEE basis, Spire Marketing reported a loss of $5.2 million for the third quarter, down from
earnings of $0.1 million in the
prior year. Results in the current year were impacted by less
favorable market conditions and higher costs.
Other
Other gas-related operations and corporate costs on an NEE basis
for the third quarter were $0.2
million in fiscal 2021, compared to $1.2 million a year ago, reflecting improved
performance at Spire Storage.
Year-to-Date
Results
|
|
Nine Months Ended
June 30,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net Economic
Earnings (Loss)* by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utility
|
|
$
|
248.4
|
|
|
$
|
221.8
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
37.9
|
|
|
|
11.3
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(6.9)
|
|
|
|
(10.0)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
279.4
|
|
|
$
|
223.1
|
|
|
$
|
5.18
|
|
|
$
|
4.14
|
|
Spire Missouri
regulatory adjustments, pre-tax
|
|
|
9.0
|
|
|
|
—
|
|
|
|
0.18
|
|
|
|
—
|
|
Impairments,
pre-tax
|
|
|
—
|
|
|
|
(148.6)
|
|
|
|
—
|
|
|
|
(2.90)
|
|
Other net economic
earnings adjustments, pre-tax
|
|
|
(6.2)
|
|
|
|
3.2
|
|
|
|
(0.12)
|
|
|
|
0.06
|
|
Income tax effect of
pre-tax adjustments
|
|
|
(0.6)
|
|
|
|
30.6
|
|
|
|
(0.01)
|
|
|
|
0.60
|
|
Net
Income
|
|
$
|
281.6
|
|
|
$
|
108.3
|
|
|
$
|
5.23
|
|
|
$
|
1.90
|
|
Weighted Average
Diluted Shares Outstanding
|
|
|
51.7
|
|
|
|
51.2
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net
Economic Earnings and Reconciliation to GAAP and Cautionary
Statements regarding non-GAAP measures including net economic
earnings."
|
For the first nine months of fiscal 2021, we reported
consolidated net income of $281.6
million ($5.23 per diluted
share), up from $108.3 million
($1.90 per share) for the prior year,
which included the impairment charge described earlier.
NEE for the nine months ended June 30,
2021, was $279.4 million
($5.18 per share), up from
$223.1 million ($4.14 per share) a year ago. The increase in NEE
reflects higher Gas Marketing and Gas Utility earnings, and lower
other costs.
Gas Utility
For the first nine months of fiscal 2021, the Gas Utility
segment reported NEE of $248.4
million, up $26.6 million
from a year ago, reflecting a higher contribution margin partially
offset by higher operating expenses.
Year-to-date segment contribution margin increased by
$35.3 million. The higher margin
reflects a $14.6 million
increase in ISRS revenues for our Missouri utilities, and net year-to-date rate
adjustments of $7.1 million for
Spire Alabama. Margin also benefitted by $10.0 million from higher usage and
off-system sales.
O&M expenses decreased by $9.7
million compared to the prior-year period. However, after
removing a $3.9 million transfer of
non-service pension costs to below the operating income line and
adjusting for a $9.0 million reversal
of a charge for disallowed pension costs in Spire Missouri's 2018
rate case, O&M expenses were down $4.6 million. The decrease was driven by
lower operations and employee-related expenses. Depreciation and
amortization expense rose $7.8
million reflecting increased capital investment across our
utilities.
Gas Marketing and Other
NEE was $37.9 million year-to-date
in fiscal 2021, up from $11.3 million
in the prior-year period. This improvement was driven by the strong
second quarter results this year due to extreme market conditions
from the February 2021 cold weather
event and optimization of incremental storage positions.
On an NEE basis, year-to-date other gas-related operations and
corporate costs were $6.9 million,
down from $10.0 million in the
prior-year period, reflecting improved results from Spire
Storage.
Balance Sheets and Cash Flow
In the third quarter of fiscal 2021, we maintained a solid
capital structure and ample liquidity. Short-term borrowings
outstanding at June 30, 2021, were
$461.0 million, down from
$477.6 million at June 30, 2020, as lower cash flow from
operations, including increased seasonal working capital, was more
than offset by the issuance of long-term debt.
On May 20, 2021, Spire Missouri
issued $305 million of 3.30% Series
First Mortgage Bonds due 2051. Proceeds were used to redeem
$55 million of Spire Missouri 3.00%
Series First Mortgage Bonds due 2023 (called for redemption
May 24, 2021) and to repay short-term
debt.
Net cash provided by operating activities was $220.7 million for the nine months ended
June 30, 2021, down from $453.8 million in the prior-year period, largely
due to fluctuations in working capital balances.
Capital expenditures for the first nine months of fiscal 2021
were $463.2 million, down from
$475.7 million in the prior year
mainly due to decreased non-utility investment.
For additional details on Spire's results for the third quarter
of fiscal 2021, please see the accompanying unaudited Condensed
Consolidated Statements of Income, Balance Sheets, and Statements
of Cash Flows.
Guidance and Outlook
We affirm our fiscal 2021 NEE expectation range of $4.30 - $4.50 per
share. Our annual long-term NEE per share growth target remains
5-7%, driven by continued, consistent growth of our gas utilities,
including annual rate base growth of 7-8% driven by investment in
pipeline upgrades as well as technology upgrades and new business.
We also reaffirm our 5-year capital expenditures outlook through
fiscal 2025 of $3.0 billion and our
expected fiscal 2021 investment of $590
million.
Dividends
The Spire board of directors has declared a quarterly common
stock dividend of $0.65 per share,
payable October 4, 2021, to
shareholders of record on September 10,
2021. We have continuously paid a cash common stock dividend
since 1946, with 2021 marking the 18th consecutive year of
increasing dividends on an annualized basis.
The board also declared the regular quarterly dividend of
$0.36875 per depositary share on
Spire's 5.90% Series A Cumulative Redeemable Preferred Stock
payable November 15, 2021, to holders
of record on October 25, 2021.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
our fiscal 2021 third 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, August
5
|
|
|
11 a.m. CT (12 p.m.
ET)
|
|
|
|
|
Phone
Numbers:
|
|
U.S. and
Canada:
|
844-824-3832
|
|
|
International:
|
412-317-5142
|
The call will also be webcast and can be accessed at
Investors.SpireEnergy.com under the Events & presentations
tab. A replay of the call will be available at 1 p.m. CT (2 p.m.
ET) on August 5 until
September 7, 2021, by dialing
877-344-7529 (U.S.), 855-669-9658 (Canada), or 412-317-0088 (international). The
replay access code is 10157704.
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 homes and
businesses 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 committed to transforming our business through growing
organically, investing in infrastructure, and advancing through
innovation. 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 acquisitions. More
complete descriptions and listings of these uncertainties and risk
factors can be found in the Company's annual (Form 10-K) and
quarterly (Form 10–Q) filings with the Securities and Exchange
Commission.
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 impairments and other non-recurring or unusual items
such as certain regulatory, legislative, or GAAP standard-setting
actions. For fiscal 2020 periods presented, adjustments for
Missouri ISRS revenues reflect the regulatory settlement reached in
the fiscal third quarter regarding 2016-2018 ISRS cases that
resulted in a $15.0 million one-time
credit to Spire Missouri customers. 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
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
June
30,
|
|
|
Nine Months
Ended
June
30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Operating
Revenues
|
|
$
|
327.8
|
|
|
$
|
321.1
|
|
|
$
|
1,945.3
|
|
|
$
|
1,603.5
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
96.9
|
|
|
|
72.9
|
|
|
|
897.2
|
|
|
|
631.9
|
|
Operation and
maintenance
|
|
|
112.0
|
|
|
|
124.9
|
|
|
|
342.6
|
|
|
|
347.2
|
|
Depreciation and
amortization
|
|
|
53.1
|
|
|
|
50.1
|
|
|
|
155.4
|
|
|
|
146.8
|
|
Taxes, other than
income taxes
|
|
|
32.6
|
|
|
|
31.1
|
|
|
|
126.6
|
|
|
|
122.7
|
|
Impairments
|
|
|
—
|
|
|
|
148.6
|
|
|
|
—
|
|
|
|
148.6
|
|
Total Operating
Expenses
|
|
|
294.6
|
|
|
|
427.6
|
|
|
|
1,521.8
|
|
|
|
1,397.2
|
|
Operating Income
(Loss)
|
|
|
33.2
|
|
|
|
(106.5)
|
|
|
|
423.5
|
|
|
|
206.3
|
|
Interest Expense,
Net
|
|
|
26.9
|
|
|
|
26.4
|
|
|
|
78.4
|
|
|
|
80.3
|
|
Other (Expense)
Income, Net
|
|
|
(1.0)
|
|
|
|
13.0
|
|
|
|
5.1
|
|
|
|
(0.8)
|
|
Income (Loss) Before
Income Taxes
|
|
|
5.3
|
|
|
|
(119.9)
|
|
|
|
350.2
|
|
|
|
125.2
|
|
Income Tax (Benefit)
Expense
|
|
|
—
|
|
|
|
(27.6)
|
|
|
|
68.6
|
|
|
|
16.9
|
|
Net Income
(Loss)
|
|
|
5.3
|
|
|
|
(92.3)
|
|
|
|
281.6
|
|
|
|
108.3
|
|
Provision for
preferred dividends
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
11.1
|
|
|
|
11.1
|
|
Income (loss)
allocated to participating securities
|
|
|
0.1
|
|
|
|
(0.1)
|
|
|
|
0.5
|
|
|
|
0.2
|
|
Net Income (Loss)
Available to Common Shareholders
|
|
$
|
1.5
|
|
|
$
|
(95.9)
|
|
|
$
|
270.0
|
|
|
$
|
97.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
51.6
|
|
|
|
51.2
|
|
|
|
51.6
|
|
|
|
51.1
|
|
Diluted
|
|
|
51.7
|
|
|
|
51.2
|
|
|
|
51.7
|
|
|
|
51.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings (Loss)
Per Common Share
|
|
$
|
0.03
|
|
|
$
|
(1.87)
|
|
|
$
|
5.24
|
|
|
$
|
1.90
|
|
Diluted Earnings
(Loss) Per Common Share
|
|
$
|
0.03
|
|
|
$
|
(1.87)
|
|
|
$
|
5.23
|
|
|
$
|
1.90
|
|
Dividends Declared
Per Common Share
|
|
$
|
0.65
|
|
|
$
|
0.6225
|
|
|
$
|
1.95
|
|
|
$
|
1.8675
|
|
Condensed
Consolidated Balance Sheets – Unaudited
|
(In
Millions)
|
|
June
30,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
7,110.2
|
|
|
$
|
6,766.3
|
|
|
$
|
6,472.2
|
|
Less:
Accumulated depreciation and amortization
|
|
|
2,173.1
|
|
|
|
2,086.2
|
|
|
|
1,882.1
|
|
Net Utility
Plant
|
|
|
4,937.1
|
|
|
|
4,680.1
|
|
|
|
4,590.1
|
|
Non-utility
Property
|
|
|
463.6
|
|
|
|
432.3
|
|
|
|
420.1
|
|
Other
Investments
|
|
|
76.4
|
|
|
|
71.7
|
|
|
|
70.6
|
|
Total Other Property
and Investments
|
|
|
540.0
|
|
|
|
504.0
|
|
|
|
490.7
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
23.9
|
|
|
|
4.1
|
|
|
|
7.4
|
|
Accounts receivable,
net
|
|
|
502.0
|
|
|
|
253.3
|
|
|
|
248.1
|
|
Inventories
|
|
|
216.4
|
|
|
|
191.5
|
|
|
|
148.6
|
|
Other
|
|
|
156.0
|
|
|
|
141.7
|
|
|
|
155.2
|
|
Total Current
Assets
|
|
|
898.3
|
|
|
|
590.6
|
|
|
|
559.3
|
|
Deferred Charges and
Other Assets
|
|
|
2,517.9
|
|
|
|
2,466.5
|
|
|
|
2,182.5
|
|
Total
Assets
|
|
$
|
8,893.3
|
|
|
$
|
8,241.2
|
|
|
$
|
7,822.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
Common stock and
paid-in capital
|
|
|
1,565.6
|
|
|
|
1,600.8
|
|
|
|
1,591.4
|
|
Retained
earnings
|
|
|
887.6
|
|
|
|
720.7
|
|
|
|
774.6
|
|
Accumulated other
comprehensive income (loss)
|
|
|
1.9
|
|
|
|
(41.2)
|
|
|
|
(49.6)
|
|
Total Shareholders'
Equity
|
|
|
2,697.1
|
|
|
|
2,522.3
|
|
|
|
2,558.4
|
|
Temporary
equity
|
|
|
9.3
|
|
|
|
3.4
|
|
|
|
4.1
|
|
Long-term debt (less
current portion)
|
|
|
2,939.0
|
|
|
|
2,423.7
|
|
|
|
2,478.3
|
|
Total
Capitalization
|
|
|
5,645.4
|
|
|
|
4,949.4
|
|
|
|
5,040.8
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
|
110.8
|
|
|
|
60.4
|
|
|
|
5.4
|
|
Notes
payable
|
|
|
461.0
|
|
|
|
648.0
|
|
|
|
477.6
|
|
Accounts
payable
|
|
|
294.3
|
|
|
|
243.3
|
|
|
|
200.8
|
|
Accrued liabilities
and other
|
|
|
425.7
|
|
|
|
497.5
|
|
|
|
424.0
|
|
Total Current
Liabilities
|
|
|
1,291.8
|
|
|
|
1,449.2
|
|
|
|
1,107.8
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
605.8
|
|
|
|
511.4
|
|
|
|
479.7
|
|
Pension and
postretirement benefit costs
|
|
|
231.8
|
|
|
|
309.0
|
|
|
|
271.9
|
|
Asset retirement
obligations
|
|
|
556.5
|
|
|
|
540.1
|
|
|
|
348.2
|
|
Regulatory
liabilities
|
|
|
414.6
|
|
|
|
343.7
|
|
|
|
449.6
|
|
Other
|
|
|
147.4
|
|
|
|
138.4
|
|
|
|
124.6
|
|
Total Deferred Credits
and Other Liabilities
|
|
|
1,956.1
|
|
|
|
1,842.6
|
|
|
|
1,674.0
|
|
Total Capitalization
and Liabilities
|
|
$
|
8,893.3
|
|
|
$
|
8,241.2
|
|
|
$
|
7,822.6
|
|
Condensed
Consolidated Statements of Cash Flows – Unaudited
|
|
(In
Millions)
|
|
Nine Months
Ended
June
30,
|
|
|
|
2021
|
|
|
2020
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
281.6
|
|
|
$
|
108.3
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
155.4
|
|
|
|
146.8
|
|
Deferred income taxes
and investment tax credits
|
|
|
68.4
|
|
|
|
17.0
|
|
Impairments
|
|
|
—
|
|
|
|
148.6
|
|
Changes in assets and
liabilities
|
|
|
(294.2)
|
|
|
|
28.0
|
|
Other
|
|
|
9.5
|
|
|
|
5.1
|
|
Net cash provided by
operating activities
|
|
|
220.7
|
|
|
|
453.8
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(463.2)
|
|
|
|
(475.7)
|
|
Other
|
|
|
1.5
|
|
|
|
5.6
|
|
Net cash used in
investing activities
|
|
|
(461.7)
|
|
|
|
(470.1)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
629.1
|
|
|
|
510.0
|
|
Repayment of long-term
debt
|
|
|
(60.4)
|
|
|
|
(147.0)
|
|
Repayment of
short-term debt, net
|
|
|
(187.0)
|
|
|
|
(265.6)
|
|
Issuance of common
stock
|
|
|
0.6
|
|
|
|
33.2
|
|
Dividends paid on
common stock
|
|
|
(99.6)
|
|
|
|
(95.7)
|
|
Dividends paid on
preferred stock
|
|
|
(11.1)
|
|
|
|
(11.1)
|
|
Other
|
|
|
(10.8)
|
|
|
|
(5.9)
|
|
Net cash provided by
financing activities
|
|
|
260.8
|
|
|
|
17.9
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash
and Cash Equivalents
|
|
|
19.8
|
|
|
|
1.6
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
|
4.1
|
|
|
|
5.8
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
23.9
|
|
|
$
|
7.4
|
|
Net Economic Earnings
and Reconciliation to GAAP
|
|
(In
Millions, except per share amounts)
|
|
Gas
Utility
|
|
|
Gas
Marketing
|
|
|
Other
|
|
|
Total
|
|
|
Per
Diluted
Common
Share (2)
|
|
Three Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
12.1
|
|
|
$
|
(6.6)
|
|
|
$
|
(0.2)
|
|
|
$
|
5.3
|
|
|
$
|
0.03
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
0.2
|
|
|
|
1.9
|
|
|
|
—
|
|
|
|
2.1
|
|
|
|
0.04
|
|
Income tax effect of
adjustments (1)
|
|
|
—
|
|
|
|
(0.5)
|
|
|
|
—
|
|
|
|
(0.5)
|
|
|
|
(0.01)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
12.3
|
|
|
$
|
(5.2)
|
|
|
$
|
(0.2)
|
|
|
$
|
6.9
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
12.6
|
|
|
$
|
13.6
|
|
|
$
|
(118.5)
|
|
|
$
|
(92.3)
|
|
|
$
|
(1.87)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
148.6
|
|
|
|
148.6
|
|
|
|
2.89
|
|
Provision for ISRS
rulings
|
|
|
(4.8)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4.8)
|
|
|
|
(0.09)
|
|
Fair value and timing
adjustments
|
|
|
(0.6)
|
|
|
|
(17.9)
|
|
|
|
—
|
|
|
|
(18.5)
|
|
|
|
(0.36)
|
|
Income tax effect of
adjustments (1)
|
|
|
1.2
|
|
|
|
4.4
|
|
|
|
(31.3)
|
|
|
|
(25.7)
|
|
|
|
(0.50)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
8.4
|
|
|
$
|
0.1
|
|
|
$
|
(1.2)
|
|
|
$
|
7.3
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
255.0
|
|
|
$
|
33.5
|
|
|
$
|
(6.9)
|
|
|
$
|
281.6
|
|
|
$
|
5.23
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missouri regulatory
adjustments
|
|
|
(9.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9.0)
|
|
|
|
(0.18)
|
|
Fair value and timing
adjustments
|
|
|
0.3
|
|
|
|
5.9
|
|
|
|
—
|
|
|
|
6.2
|
|
|
|
0.12
|
|
Income tax effect of
adjustments (1)
|
|
|
2.1
|
|
|
|
(1.5)
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
0.01
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
248.4
|
|
|
$
|
37.9
|
|
|
$
|
(6.9)
|
|
|
$
|
279.4
|
|
|
$
|
5.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
[GAAP]
|
|
$
|
222.0
|
|
|
$
|
13.6
|
|
|
$
|
(127.3)
|
|
|
$
|
108.3
|
|
|
$
|
1.90
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
148.6
|
|
|
|
148.6
|
|
|
|
2.90
|
|
Fair value and timing
adjustments
|
|
|
(0.2)
|
|
|
|
(3.0)
|
|
|
|
—
|
|
|
|
(3.2)
|
|
|
|
(0.06)
|
|
Income tax effect of
adjustments (1)
|
|
|
—
|
|
|
|
0.7
|
|
|
|
(31.3)
|
|
|
|
(30.6)
|
|
|
|
(0.60)
|
|
Net Economic
Earnings (Loss) [Non-GAAP]
|
|
$
|
221.8
|
|
|
$
|
11.3
|
|
|
$
|
(10.0)
|
|
|
$
|
223.1
|
|
|
$
|
4.14
|
|
|
(1) Income tax effect
is 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 related
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, which includes reductions for cumulative preferred
dividends and participating shares.
|
Contribution Margin
and Reconciliation to GAAP
|
|
(In
Millions)
|
|
Gas
Utility
|
|
|
Gas
Marketing
|
|
|
Other
|
|
|
Eliminations
|
|
|
Consolidated
|
|
Three Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
35.6
|
|
|
$
|
(8.8)
|
|
|
$
|
6.4
|
|
|
$
|
—
|
|
|
$
|
33.2
|
|
Operation and
maintenance expenses
|
|
|
103.2
|
|
|
|
3.2
|
|
|
|
9.2
|
|
|
|
(3.6)
|
|
|
|
112.0
|
|
Depreciation and
amortization
|
|
|
50.9
|
|
|
|
0.3
|
|
|
|
1.9
|
|
|
|
—
|
|
|
|
53.1
|
|
Taxes, other than
income taxes
|
|
|
32.1
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
32.6
|
|
Less: Gross receipts
tax expense
|
|
|
(17.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(17.9)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
203.9
|
|
|
|
(5.1)
|
|
|
|
17.8
|
|
|
|
(3.6)
|
|
|
|
213.0
|
|
Natural gas
costs
|
|
|
84.9
|
|
|
|
20.2
|
|
|
|
—
|
|
|
|
(8.2)
|
|
|
|
96.9
|
|
Gross receipts tax
expense
|
|
|
17.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17.9
|
|
Operating
Revenues
|
|
$
|
306.7
|
|
|
$
|
15.1
|
|
|
$
|
17.8
|
|
|
$
|
(11.8)
|
|
|
$
|
327.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
20.4
|
|
|
$
|
18.2
|
|
|
$
|
(145.1)
|
|
|
$
|
—
|
|
|
$
|
(106.5)
|
|
Operation and
maintenance expenses
|
|
|
115.5
|
|
|
|
2.2
|
|
|
|
10.5
|
|
|
|
(3.3)
|
|
|
|
124.9
|
|
Depreciation and
amortization
|
|
|
47.8
|
|
|
|
0.2
|
|
|
|
2.1
|
|
|
|
—
|
|
|
|
50.1
|
|
Taxes, other than
income taxes
|
|
|
31.7
|
|
|
|
0.2
|
|
|
|
(0.8)
|
|
|
|
—
|
|
|
|
31.1
|
|
Impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
148.6
|
|
|
|
—
|
|
|
|
148.6
|
|
Less: Gross receipts
tax expense
|
|
|
(17.2)
|
|
|
|
(0.1)
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
(17.2)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
198.2
|
|
|
|
20.7
|
|
|
|
15.4
|
|
|
|
(3.3)
|
|
|
|
231.0
|
|
Natural gas
costs
|
|
|
90.6
|
|
|
|
(9.2)
|
|
|
|
0.1
|
|
|
|
(8.6)
|
|
|
|
72.9
|
|
Gross receipts tax
expense
|
|
|
17.2
|
|
|
|
0.1
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
17.2
|
|
Operating
Revenues
|
|
$
|
306.0
|
|
|
$
|
11.6
|
|
|
$
|
15.4
|
|
|
$
|
(11.9)
|
|
|
$
|
321.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
[GAAP]
|
|
$
|
366.4
|
|
|
$
|
43.2
|
|
|
$
|
13.9
|
|
|
$
|
—
|
|
|
$
|
423.5
|
|
Operation and
maintenance expenses
|
|
|
310.2
|
|
|
|
13.6
|
|
|
|
28.9
|
|
|
|
(10.1)
|
|
|
|
342.6
|
|
Depreciation and
amortization
|
|
|
149.0
|
|
|
|
0.9
|
|
|
|
5.5
|
|
|
|
—
|
|
|
|
155.4
|
|
Taxes, other than
income taxes
|
|
|
124.0
|
|
|
|
0.9
|
|
|
|
1.7
|
|
|
|
—
|
|
|
|
126.6
|
|
Less: Gross receipts
tax expense
|
|
|
(81.7)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(81.8)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
867.9
|
|
|
|
58.5
|
|
|
|
50.0
|
|
|
|
(10.1)
|
|
|
|
966.3
|
|
Natural gas
costs
|
|
|
908.4
|
|
|
|
14.7
|
|
|
|
0.1
|
|
|
|
(26.0)
|
|
|
|
897.2
|
|
Gross receipts tax
expense
|
|
|
81.7
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
81.8
|
|
Operating
Revenues
|
|
$
|
1,858.0
|
|
|
$
|
73.3
|
|
|
$
|
50.1
|
|
|
$
|
(36.1)
|
|
|
$
|
1,945.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) [GAAP]
|
|
$
|
329.6
|
|
|
$
|
18.2
|
|
|
$
|
(141.5)
|
|
|
$
|
—
|
|
|
$
|
206.3
|
|
Operation and
maintenance expenses
|
|
|
319.9
|
|
|
|
8.9
|
|
|
|
28.0
|
|
|
|
(9.6)
|
|
|
|
347.2
|
|
Depreciation and
amortization
|
|
|
141.2
|
|
|
|
0.3
|
|
|
|
5.3
|
|
|
|
—
|
|
|
|
146.8
|
|
Taxes, other than
income taxes
|
|
|
121.3
|
|
|
|
0.9
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
122.7
|
|
Impairments
|
|
|
—
|
|
|
|
—
|
|
|
|
148.6
|
|
|
|
—
|
|
|
|
148.6
|
|
Less: Gross receipts
tax expense
|
|
|
(79.4)
|
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(79.7)
|
|
Contribution Margin
[Non-GAAP]
|
|
|
832.6
|
|
|
|
28.0
|
|
|
|
40.9
|
|
|
|
(9.6)
|
|
|
|
891.9
|
|
Natural gas
costs
|
|
|
603.7
|
|
|
|
48.9
|
|
|
|
0.3
|
|
|
|
(21.0)
|
|
|
|
631.9
|
|
Gross receipts tax
expense
|
|
|
79.4
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
79.7
|
|
Operating
Revenues
|
|
$
|
1,515.7
|
|
|
$
|
77.2
|
|
|
$
|
41.2
|
|
|
$
|
(30.6)
|
|
|
$
|
1,603.5
|
|
View original content to download
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SOURCE Spire Inc.