ST.
LOUIS, May 6, 2022 /PRNewswire/ -- Spire Inc.
(NYSE: SR) today reported results for its fiscal 2022 second
quarter ended March 31. Highlights
include:
- Net income of $173.6 million
($3.27 per diluted share) compared to
$187.4 million, or $3.55 per share in the prior year
- Net economic earnings* of $181.0
million, or $3.42 per share,
down from $195.6 million, or
$3.71 per share a year ago
- Earnings guidance range for fiscal 2022 narrowed to
$3.75 - $3.95 per share
"We delivered solid results for the second quarter, serving 1.7
million homes and businesses while expanding outreach and support
for customers and communities during the critical winter heating
season. We did this while continuing to invest in infrastructure
upgrades, technology, and new business to bring safe and reliable
energy to even more people," said Suzanne
Sitherwood, president and chief executive officer of Spire.
"At the same time, we continued to progress toward being a more
sustainable company and to enhance our ESG disclosures—look for
highlights in June when we release our 2021 Sustainability Report.
Also, in the second quarter, Spire Missouri filed a new rate review
focused on recovering our full cost of service and earning a fair
and reasonable rate of return. Through it all, our energy warms
homes, fuels businesses and advances economic development in a way
that lays the groundwork for an innovative, resilient and
sustainable energy future."
Second Quarter
Results
|
|
Three Months Ended March 31,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net Economic Earnings (Loss)* by
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Utility
|
|
$
|
169.2
|
|
|
$
|
159.7
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
14.4
|
|
|
|
39.8
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(2.6)
|
|
|
|
(3.9)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
181.0
|
|
|
$
|
195.6
|
|
|
$
|
3.42
|
|
|
$
|
3.71
|
|
Missouri regulatory adjustment, pre-tax
|
|
|
—
|
|
|
|
9.0
|
|
|
|
—
|
|
|
|
0.17
|
|
Fair value and timing adjustments, pre-tax
|
|
|
(9.9)
|
|
|
|
(20.1)
|
|
|
|
(0.20)
|
|
|
|
(0.39)
|
|
Income tax adjustments
|
|
|
2.5
|
|
|
|
2.9
|
|
|
|
0.05
|
|
|
|
0.06
|
|
Net Income
|
|
$
|
173.6
|
|
|
$
|
187.4
|
|
|
$
|
3.27
|
|
|
$
|
3.55
|
|
Weighted Average Diluted Shares
Outstanding
|
|
|
51.9
|
|
|
|
51.7
|
|
|
|
|
|
|
|
|
|
*Non-GAAP, see "Net Economic Earnings and Reconciliation to
GAAP."
We reported consolidated net income of $173.6 million ($3.27 per diluted share), compared to prior year
net income of $187.4 million
($3.55 per share). Current year net
economic earnings (NEE) were $181.0 million ($3.42 per share), compared to $195.6 million ($3.71 per share) last year. Prior-year results
reflect the impacts of the February cold weather event
(Winter Storm Uri), which led to
outsized performance by Gas Marketing, compared to the current-year
quarter.
Gas Utility
The Gas Utility segment includes the regulated distribution
operations of our five gas utilities across Alabama, Mississippi and Missouri. Gas Utility reported NEE of
$169.2 million, compared to
$159.7 million in the prior
year. The $9.5 million increase was
driven by a higher contribution margin.
Contribution margin increased $17.7
million from the prior year, reflecting new rates effective
in late calendar 2021 for Spire Missouri and Spire Alabama. These
positive impacts were partially offset by lower usage due to warmer
weather in Spire Alabama.
Operation and maintenance (O&M) expenses of $104.2 million were comparable to a year ago.
O&M costs were $4.7 million
lower, after removing a $3.1 million
non-service cost transfer to other income (no earnings impact) and
net regulatory adjustments of $8.0
million, reflecting lower employee-related costs and bad
debt expenses.
Depreciation and amortization expense increased by $7.0 million from last year, reflecting our
capital investments.
Gas Marketing
The Gas Marketing segment includes the results of Spire
Marketing, which provides natural gas marketing services throughout
the United States. NEE, which
excludes mark-to-market and other fair value adjustments, was
$14.4 million, compared to
$39.8 million in the prior year. The
prior-year quarter results were driven by significant opportunities
to optimize storage and transportation assets from Winter Storm Uri. Performance in the
current-year period reflects less favorable market conditions,
offset by favorable resolution of certain customer claims from the
prior year.
Other
Other gas-related operations and corporate costs totaled
$2.6 million this quarter, compared
to $3.9 million in the
prior-year quarter. The improvement reflects contributions from
Spire Storage and Spire STL Pipeline.
Regulatory update
Missouri
Based on a November 2021 rate case
order from the Missouri Public Service Commission (MoPSC), Spire
Missouri was required to cease capitalization of non-operational
overhead costs until a MoPSC Staff audit of Spire Missouri's
compliance with the Federal Energy Regulatory Commission (FERC)
Uniform System of Accounts could be completed. Spire Missouri worked with Staff to complete a
study; Staff then audited the study and filed its report with the
MoPSC on March 18, 2022. The report,
which the MoPSC has yet to rule on, establishes new overhead
capitalization rates.
On April 13, 2022, the MoPSC
issued an Order Authorizing Accounting Treatment, clarifying that
Spire Missouri may defer all non-operational overheads related to
the rate order into a regulatory asset for review and recovery in a
future rate proceeding. For fiscal 2022, amounts Spire Missouri
expects to defer, in excess of the capitalization rates determined
by the study and audit, are approximately $20 million, inclusive of amounts set aside in
our Infrastructure System Replacement Surcharge (ISRS) case
described below.
In its rate case order, the MoPSC specified that another general
rate case would be the vehicle for addressing the change in
capitalization policy. Consistent with that guidance, on
April 1, 2022, Spire Missouri filed a
new general rate case, seeking to fully recover its updated cost of
service, overhead costs, updated capital investment to support the
business, and to earn a reasonable rate of return.
On December 23, 2021, Spire
Missouri filed a new ISRS case, seeking additional revenues for
recovery of investments in infrastructure upgrades, for the period
June 1 through December 31, 2021. On
April 21, 2022, the MoPSC approved an
$8.5 million annualized increase in
ISRS revenue, effective May 7. As
part of the ISRS-eligible capital, we deferred $5 million of
general overhead costs pursuant to the study and audit noted above.
Spire STL Pipeline
On December 3, 2021, the FERC
issued a new temporary certificate to allow Spire STL Pipeline to
continue operating indefinitely while the FERC considers approval
of a new permanent certificate under a court-ordered remand. As
part of the remand process now underway, the FERC issued a notice
of intent to prepare an Environmental Impact Statement for Spire
STL Pipeline. Based on the FERC issuances to date, we expect the
remand process to continue into early 2023.
Year-to-Date
Results
|
|
Six Months Ended March 31,
|
|
|
|
(Millions)
|
|
|
(Per Diluted Common
Share)
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net Economic Earnings (Loss)* by
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Utility
|
|
$
|
236.4
|
|
|
$
|
236.1
|
|
|
|
|
|
|
|
|
|
Gas
Marketing
|
|
|
14.9
|
|
|
|
43.1
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
(7.7)
|
|
|
|
(6.7)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
243.6
|
|
|
$
|
272.5
|
|
|
$
|
4.56
|
|
|
$
|
5.12
|
|
Missouri regulatory adjustment, pre-tax
|
|
|
—
|
|
|
|
9.0
|
|
|
|
—
|
|
|
|
0.18
|
|
Fair value and timing adjustments, pre-tax
|
|
|
(13.6)
|
|
|
|
(4.1)
|
|
|
|
(0.27)
|
|
|
|
(0.08)
|
|
Income tax adjustments
|
|
|
(0.7)
|
|
|
|
(1.1)
|
|
|
|
(0.01)
|
|
|
|
(0.02)
|
|
Net Income
|
|
$
|
229.3
|
|
|
$
|
276.3
|
|
|
$
|
4.28
|
|
|
$
|
5.20
|
|
Weighted Average Diluted Shares
Outstanding
|
|
|
51.8
|
|
|
|
51.7
|
|
|
|
|
|
|
|
|
|
For the first six months of fiscal 2022, we reported
consolidated net income of $229.3
million ($4.28 per diluted
share) compared to $276.3 million
($5.20 per share) for the prior year.
NEE for the six months ended March 31,
2022 was $243.6 million
($4.56 per share), down from
$272.5 million ($5.12 per share) a year ago. As noted in our
second quarter results, the prior year reflected the favorable
impacts of Winter Storm Uri for Gas
Marketing.
Gas Utility
For the first six months of fiscal 2022, the Gas Utility segment
reported NEE of $236.4 million, up
slightly from a year ago, reflecting a higher contribution margin,
largely offset by higher operating expenses.
Year-to-date segment contribution margin increased by
$17.1 million, largely due to new
rates at Spire Missouri as well as a rate adjustment for Spire
Alabama. These positive impacts were partially offset by lower
usage due to weather and lower off-system sales and capacity
release.
O&M expenses increased by $4.5
million compared to the prior-year period. O&M expenses
were $3.1 million lower after
removing a $9.0 million refund
related to pension expense ordered in Spire Missouri's 2018 rate
case and $1.4 million in non-service
cost transfer to other income. The decrease was primarily due to
lower operations and employee-related costs as well as lower bad
debt expense.
Depreciation and amortization rose by $13.0 million reflecting capital investment
across our utilities.
Gas Marketing
NEE was $14.9 million in the first
half of fiscal 2022, down from $43.1
million in the prior-year period. Last year's results
benefited from very favorable market conditions created by extreme
weather associated with Winter Storm
Uri. Fiscal 2022 results reflect less favorable market
conditions and basis differentials despite price volatility, offset
by favorable resolution of certain customer claims.
Other
On an NEE basis, year-to-date other gas-related operations and
corporate costs were $7.7 million,
compared to $6.7 million in the
prior-year period, reflecting higher corporate costs partially
offset by the improved contribution from Spire Storage and Spire
STL Pipeline.
Guidance and Outlook
We remain confident in our long-term ability to grow NEE per
share 5-7% given our growth strategy, expectations of reasonable
regulatory outcomes, and planned capital investment in
infrastructure upgrades, innovation and new business.
Our targeted capital investment for the 5-year period through
fiscal 2026 remains $3.1 billion, and
this level of investments is anticipated to drive 7-8% rate base
growth for our utilities. Capital expenditures for fiscal 2022 are
now expected to be $540
million, reflecting the deferral of non-operational
overhead costs for Spire Missouri into a regulatory asset.
Our fiscal 2022 NEE guidance range has been narrowed to
$3.75 - $3.95 per share,
reflecting the deferral of overhead costs at Spire Missouri, as
discussed earlier, and our year-to-date financial performance.
Balance Sheets and Cash Flow
For the second quarter of fiscal 2022, we maintained a solid
capital structure and ample liquidity. Short-term borrowings
outstanding at March 31, 2022, were
$607.1 million, down from
$672.0 million at fiscal 2021
year-end and from $653.5 million a
year ago, reflecting higher seasonal borrowing levels and deferred
gas cost balances offset by the timing of long-term debt financing.
We retain capacity in our revolving credit facility and related
commercial paper program to meet our liquidity needs. Spire had
approximately $360 million of available short-term financing
at March 31, 2022.
Net cash provided by operating activities was $155.1 million for the six months ended
March 31, 2022, down $4.1 million from the comparable period a year
ago. The decrease reflects lower net income from Spire Marketing
due to Winter Storm Uri in the prior
year that was mostly offset by higher recovery of deferred gas
costs.
Capital expenditures for the first half of fiscal 2022 were
$275.9 million, down from
$303.5 million in the prior year
largely due to an approximate $15
million decrease in capital investment at our gas utilities
and combined lower investment at Spire Storage and Spire STL
Pipeline.
For additional details on Spire's results for the second quarter
of fiscal 2022, please see the accompanying unaudited Condensed
Consolidated Statements of Income, Balance Sheets, and Statements
of Cash Flows.
Dividends
The Spire board of directors has declared a quarterly common
stock dividend of $0.685 per share,
payable July 5, 2022, to shareholders
of record on June 10, 2022. We have
continuously paid a cash common stock dividend since 1946, with
2022 marking the 19th 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 August 15, 2022, to holders
of record on July 25, 2022.
Conference Call and Webcast
Spire will host a conference call and webcast today to discuss
its fiscal 2022 second quarter financial results. To access the
call, please dial the applicable number approximately 5-10 minutes
in advance.
Date and
Time:
|
|
Friday, May
6
|
|
|
10 a.m. CT (11 a.m.
ET)
|
|
|
|
|
Phone
Numbers:
|
|
U.S. and
Canada:
|
844-824-3832
|
|
|
International:
|
412-317-5142
|
The webcast can be accessed at
Investors.SpireEnergy.com under Events & presentations. A
replay of the call will be available at 12
p.m. CT (1 p.m. ET) on
May 6 until June 6, 2022, by dialing 877-344-7529 (U.S.),
855-669-9658 (Canada), or
412-317-0088 (international). The replay access code is
8957406.
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.
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) filing
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, as
applicable, 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. 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.
Condensed Consolidated Statements of Income – Unaudited
(In Millions, except per share
amounts)
|
|
Three Months Ended
March 31,
|
|
|
Six Months Ended
March 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Operating
Revenues
|
|
$
|
880.9
|
|
|
$
|
1,104.9
|
|
|
$
|
1,436.3
|
|
|
$
|
1,617.5
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
392.0
|
|
|
|
619.1
|
|
|
|
641.2
|
|
|
|
800.3
|
|
Operation and maintenance
|
|
|
113.2
|
|
|
|
119.0
|
|
|
|
229.6
|
|
|
|
230.6
|
|
Depreciation and amortization
|
|
|
58.9
|
|
|
|
51.5
|
|
|
|
115.8
|
|
|
|
102.3
|
|
Taxes, other than income taxes
|
|
|
71.6
|
|
|
|
57.9
|
|
|
|
109.2
|
|
|
|
94.0
|
|
Total Operating
Expenses
|
|
|
635.7
|
|
|
|
847.5
|
|
|
|
1,095.8
|
|
|
|
1,227.2
|
|
Operating
Income
|
|
|
245.2
|
|
|
|
257.4
|
|
|
|
340.5
|
|
|
|
390.3
|
|
Interest Expense,
Net
|
|
|
27.5
|
|
|
|
25.8
|
|
|
|
56.1
|
|
|
|
51.5
|
|
Other (Expense) Income,
Net
|
|
|
(3.4)
|
|
|
|
1.8
|
|
|
|
4.0
|
|
|
|
6.1
|
|
Income Before Income
Taxes
|
|
|
214.3
|
|
|
|
233.4
|
|
|
|
288.4
|
|
|
|
344.9
|
|
Income Tax
Expense
|
|
|
40.7
|
|
|
|
46.0
|
|
|
|
59.1
|
|
|
|
68.6
|
|
Net Income
|
|
|
173.6
|
|
|
|
187.4
|
|
|
|
229.3
|
|
|
|
276.3
|
|
Provision for preferred dividends
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
7.4
|
|
|
|
7.4
|
|
Income allocated to participating securities
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
|
0.4
|
|
Net Income Available to
Common Shareholders
|
|
$
|
169.7
|
|
|
$
|
183.4
|
|
|
$
|
221.6
|
|
|
$
|
268.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
51.8
|
|
|
|
51.6
|
|
|
|
51.7
|
|
|
|
51.6
|
|
Diluted
|
|
|
51.9
|
|
|
|
51.7
|
|
|
|
51.8
|
|
|
|
51.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Common Share
|
|
$
|
3.27
|
|
|
$
|
3.56
|
|
|
$
|
4.28
|
|
|
$
|
5.21
|
|
Diluted Earnings Per
Common Share
|
|
$
|
3.27
|
|
|
$
|
3.55
|
|
|
$
|
4.28
|
|
|
$
|
5.20
|
|
Dividends Declared Per
Common Share
|
|
$
|
0.685
|
|
|
$
|
0.65
|
|
|
$
|
1.37
|
|
|
$
|
1.30
|
|
Condensed Consolidated Balance Sheets – Unaudited
(In Millions)
|
|
March 31,
|
|
|
September 30,
|
|
|
March 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility
Plant
|
|
$
|
7,443.7
|
|
|
$
|
7,225.0
|
|
|
$
|
6,974.3
|
|
Less: Accumulated depreciation and
amortization
|
|
|
2,241.9
|
|
|
|
2,169.3
|
|
|
|
2,145.1
|
|
Net Utility Plant
|
|
|
5,201.8
|
|
|
|
5,055.7
|
|
|
|
4,829.2
|
|
Non-utility
Property
|
|
|
475.8
|
|
|
|
471.1
|
|
|
|
457.0
|
|
Other
Investments
|
|
|
89.0
|
|
|
|
83.1
|
|
|
|
76.4
|
|
Total Other Property and
Investments
|
|
|
564.8
|
|
|
|
554.2
|
|
|
|
533.4
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
8.3
|
|
|
|
4.3
|
|
|
|
104.0
|
|
Accounts receivable, net
|
|
|
599.5
|
|
|
|
596.3
|
|
|
|
595.6
|
|
Inventories
|
|
|
168.3
|
|
|
|
305.0
|
|
|
|
180.0
|
|
Other
|
|
|
313.2
|
|
|
|
410.9
|
|
|
|
160.4
|
|
Total Current Assets
|
|
|
1,089.3
|
|
|
|
1,316.5
|
|
|
|
1,040.0
|
|
Deferred Charges and
Other Assets
|
|
|
2,545.4
|
|
|
|
2,430.0
|
|
|
|
2,534.2
|
|
Total Assets
|
|
$
|
9,401.3
|
|
|
$
|
9,356.4
|
|
|
$
|
8,936.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
|
$
|
242.0
|
|
Common stock and paid-in capital
|
|
|
1,593.2
|
|
|
|
1,569.6
|
|
|
|
1,563.9
|
|
Retained earnings
|
|
|
992.3
|
|
|
|
843.0
|
|
|
|
920.1
|
|
Accumulated other comprehensive income
|
|
|
13.7
|
|
|
|
3.6
|
|
|
|
5.3
|
|
Total Shareholders'
Equity
|
|
|
2,841.2
|
|
|
|
2,658.2
|
|
|
|
2,731.3
|
|
Temporary equity
|
|
|
11.8
|
|
|
|
9.8
|
|
|
|
8.2
|
|
Long-term debt (less current portion)
|
|
|
3,207.3
|
|
|
|
2,939.1
|
|
|
|
2,692.5
|
|
Total Capitalization
|
|
|
6,060.3
|
|
|
|
5,607.1
|
|
|
|
5,432.0
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
31.2
|
|
|
|
55.8
|
|
|
|
110.8
|
|
Notes payable
|
|
|
607.1
|
|
|
|
672.0
|
|
|
|
653.5
|
|
Accounts payable
|
|
|
367.5
|
|
|
|
409.9
|
|
|
|
352.1
|
|
Accrued liabilities and other
|
|
|
390.0
|
|
|
|
470.6
|
|
|
|
391.1
|
|
Total Current
Liabilities
|
|
|
1,395.8
|
|
|
|
1,608.3
|
|
|
|
1,507.5
|
|
Deferred Credits and
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
|
666.5
|
|
|
|
612.3
|
|
|
|
602.8
|
|
Pension and postretirement benefit costs
|
|
|
199.2
|
|
|
|
235.9
|
|
|
|
274.4
|
|
Asset retirement obligations
|
|
|
530.1
|
|
|
|
519.6
|
|
|
|
551.0
|
|
Regulatory
liabilities
|
|
|
400.4
|
|
|
|
620.9
|
|
|
|
423.5
|
|
Other
|
|
|
149.0
|
|
|
|
152.3
|
|
|
|
145.6
|
|
Total Deferred Credits and
Other Liabilities
|
|
|
1,945.2
|
|
|
|
2,141.0
|
|
|
|
1,997.3
|
|
Total Capitalization
and Liabilities
|
|
$
|
9,401.3
|
|
|
$
|
9,356.4
|
|
|
$
|
8,936.8
|
|
Condensed Consolidated Statements of Cash Flows – Unaudited
(In Millions)
|
|
Six Months Ended
March 31,
|
|
|
|
2022
|
|
|
2021
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
229.3
|
|
|
$
|
276.3
|
|
Adjustments to reconcile net income to net cash (used in)
provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
115.8
|
|
|
|
102.3
|
|
Deferred income taxes and
investment tax credits
|
|
|
59.1
|
|
|
|
68.5
|
|
Changes in assets and
liabilities
|
|
|
(252.1)
|
|
|
|
(293.7)
|
|
Other
|
|
|
3.0
|
|
|
|
5.8
|
|
Net cash provided by
operating activities
|
|
|
155.1
|
|
|
|
159.2
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(275.9)
|
|
|
|
(303.5)
|
|
Other
|
|
|
2.7
|
|
|
|
(0.8)
|
|
Net cash used in investing
activities
|
|
|
(273.2)
|
|
|
|
(304.3)
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
Issuance of long-term debt
|
|
|
300.0
|
|
|
|
325.0
|
|
Repayment of long-term debt
|
|
|
(55.8)
|
|
|
|
(5.4)
|
|
Issuance of short-term debt, net
|
|
|
(64.9)
|
|
|
|
5.5
|
|
Issuance of common stock
|
|
|
24.0
|
|
|
|
0.7
|
|
Dividends paid on common stock
|
|
|
(70.1)
|
|
|
|
(65.9)
|
|
Dividends paid on preferred stock
|
|
|
(7.4)
|
|
|
|
(7.4)
|
|
Other
|
|
|
(3.8)
|
|
|
|
(7.5)
|
|
Net cash provided by financing
activities
|
|
|
122.0
|
|
|
|
245.0
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash,
Cash Equivalents, and Restricted Cash
|
|
|
3.9
|
|
|
|
99.9
|
|
Cash, Cash Equivalents,
and Restricted Cash at Beginning of Period
|
|
|
11.3
|
|
|
|
4.1
|
|
Cash, Cash Equivalents,
and Restricted Cash at End of Period
|
|
$
|
15.2
|
|
|
$
|
104.0
|
|
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 March 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) [GAAP]
|
|
$
|
169.2
|
|
|
$
|
7.0
|
|
|
$
|
(2.6)
|
|
|
$
|
173.6
|
|
|
$
|
3.27
|
|
Adjustments, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
9.9
|
|
|
|
—
|
|
|
|
9.9
|
|
|
|
0.20
|
|
Income tax adjustments (1)
|
|
|
—
|
|
|
|
(2.5)
|
|
|
|
—
|
|
|
|
(2.5)
|
|
|
|
(0.05)
|
|
Net Economic Earnings (Loss)
[Non-GAAP]
|
|
$
|
169.2
|
|
|
$
|
14.4
|
|
|
$
|
(2.6)
|
|
|
$
|
181.0
|
|
|
$
|
3.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) [GAAP]
|
|
$
|
166.4
|
|
|
$
|
24.9
|
|
|
$
|
(3.9)
|
|
|
$
|
187.4
|
|
|
$
|
3.55
|
|
Adjustments, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missouri regulatory
adjustment
|
|
|
(9.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9.0)
|
|
|
|
(0.17)
|
|
Fair value and timing
adjustments
|
|
|
0.2
|
|
|
|
19.9
|
|
|
|
—
|
|
|
|
20.1
|
|
|
|
0.39
|
|
Income tax adjustments (1)
|
|
|
2.1
|
|
|
|
(5.0)
|
|
|
|
—
|
|
|
|
(2.9)
|
|
|
|
(0.06)
|
|
Net Economic Earnings (Loss)
[Non-GAAP]
|
|
$
|
159.7
|
|
|
$
|
39.8
|
|
|
$
|
(3.9)
|
|
|
$
|
195.6
|
|
|
$
|
3.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) [GAAP]
|
|
$
|
232.3
|
|
|
$
|
4.7
|
|
|
$
|
(7.7)
|
|
|
$
|
229.3
|
|
|
$
|
4.28
|
|
Adjustments, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value and timing
adjustments
|
|
|
—
|
|
|
|
13.6
|
|
|
|
—
|
|
|
|
13.6
|
|
|
|
0.27
|
|
Income tax adjustments (1)
|
|
|
4.1
|
|
|
|
(3.4)
|
|
|
|
—
|
|
|
|
0.7
|
|
|
|
0.01
|
|
Net Economic Earnings (Loss)
[Non-GAAP]
|
|
$
|
236.4
|
|
|
$
|
14.9
|
|
|
$
|
(7.7)
|
|
|
$
|
243.6
|
|
|
$
|
4.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) [GAAP]
|
|
$
|
242.9
|
|
|
$
|
40.1
|
|
|
$
|
(6.7)
|
|
|
$
|
276.3
|
|
|
$
|
5.20
|
|
Adjustments, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missouri regulatory
adjustment
|
|
|
(9.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9.0)
|
|
|
|
(0.18)
|
|
Fair value and timing
adjustments
|
|
|
0.1
|
|
|
|
4.0
|
|
|
|
—
|
|
|
|
4.1
|
|
|
|
0.08
|
|
Income tax adjustments (1)
|
|
|
2.1
|
|
|
|
(1.0)
|
|
|
|
—
|
|
|
|
1.1
|
|
|
|
0.02
|
|
Net Economic Earnings (Loss)
[Non-GAAP]
|
|
$
|
236.1
|
|
|
$
|
43.1
|
|
|
$
|
(6.7)
|
|
|
$
|
272.5
|
|
|
$
|
5.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Income tax adjustments
include amounts calculated by applying federal, state, and local
income tax rates applicable to ordinary income to the amounts of
the pre-tax reconciling items, and for six months ended March 31,
2022, include a Spire Missouri regulatory adjustment.
|
(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
March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income [GAAP]
|
|
$
|
230.4
|
|
|
$
|
9.6
|
|
|
$
|
5.2
|
|
|
$
|
—
|
|
|
$
|
245.2
|
|
Operation and maintenance expenses
|
|
|
104.2
|
|
|
|
3.2
|
|
|
|
10.0
|
|
|
|
(4.2)
|
|
|
|
113.2
|
|
Depreciation and amortization
|
|
|
56.5
|
|
|
|
0.4
|
|
|
|
2.0
|
|
|
|
—
|
|
|
|
58.9
|
|
Taxes, other than income taxes
|
|
|
70.3
|
|
|
|
0.4
|
|
|
|
0.9
|
|
|
|
—
|
|
|
|
71.6
|
|
Less: Gross receipts tax expense
|
|
|
(51.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(51.9)
|
|
Contribution Margin [Non-GAAP]
|
|
|
409.5
|
|
|
|
13.6
|
|
|
|
18.1
|
|
|
|
(4.2)
|
|
|
|
437.0
|
|
Natural gas costs
|
|
|
356.0
|
|
|
|
45.8
|
|
|
|
—
|
|
|
|
(9.8)
|
|
|
|
392.0
|
|
Gross receipts tax expense
|
|
|
51.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
51.9
|
|
Operating Revenues
|
|
$
|
817.4
|
|
|
$
|
59.4
|
|
|
$
|
18.1
|
|
|
$
|
(14.0)
|
|
|
$
|
880.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income [GAAP]
|
|
$
|
224.0
|
|
|
$
|
31.7
|
|
|
$
|
1.7
|
|
|
$
|
—
|
|
|
$
|
257.4
|
|
Operation and maintenance expenses
|
|
|
104.0
|
|
|
|
7.1
|
|
|
|
11.1
|
|
|
|
(3.2)
|
|
|
|
119.0
|
|
Depreciation and amortization
|
|
|
49.5
|
|
|
|
0.3
|
|
|
|
1.7
|
|
|
|
—
|
|
|
|
51.5
|
|
Taxes, other than income taxes
|
|
|
56.4
|
|
|
|
0.5
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
57.9
|
|
Less: Gross receipts tax expense
|
|
|
(42.1)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(42.2)
|
|
Contribution Margin [Non-GAAP]
|
|
|
391.8
|
|
|
|
39.5
|
|
|
|
15.5
|
|
|
|
(3.2)
|
|
|
|
443.6
|
|
Natural gas costs
|
|
|
619.2
|
|
|
|
(6.2)
|
|
|
|
0.1
|
|
|
|
6.0
|
|
|
|
619.1
|
|
Gross receipts tax expense
|
|
|
42.1
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
42.2
|
|
Operating Revenues
|
|
$
|
1,053.1
|
|
|
$
|
33.4
|
|
|
$
|
15.6
|
|
|
$
|
2.8
|
|
|
$
|
1,104.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income [GAAP]
|
|
$
|
324.8
|
|
|
$
|
6.5
|
|
|
$
|
9.2
|
|
|
$
|
—
|
|
|
$
|
340.5
|
|
Operation and maintenance expenses
|
|
|
211.5
|
|
|
|
5.9
|
|
|
|
20.0
|
|
|
|
(7.8)
|
|
|
|
229.6
|
|
Depreciation and amortization
|
|
|
111.1
|
|
|
|
0.7
|
|
|
|
4.0
|
|
|
|
—
|
|
|
|
115.8
|
|
Taxes, other than income taxes
|
|
|
107.3
|
|
|
|
0.4
|
|
|
|
1.5
|
|
|
|
—
|
|
|
|
109.2
|
|
Less: Gross receipts tax expense
|
|
|
(73.6)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(73.8)
|
|
Contribution Margin [Non-GAAP]
|
|
|
681.1
|
|
|
|
13.3
|
|
|
|
34.7
|
|
|
|
(7.8)
|
|
|
|
721.3
|
|
Natural gas costs
|
|
|
566.2
|
|
|
|
93.8
|
|
|
|
—
|
|
|
|
(18.8)
|
|
|
|
641.2
|
|
Gross receipts tax expense
|
|
|
73.6
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
73.8
|
|
Operating Revenues
|
|
$
|
1,320.9
|
|
|
$
|
107.3
|
|
|
$
|
34.7
|
|
|
$
|
(26.6)
|
|
|
$
|
1,436.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income [GAAP]
|
|
$
|
330.8
|
|
|
$
|
52.0
|
|
|
$
|
7.5
|
|
|
$
|
—
|
|
|
$
|
390.3
|
|
Operation and maintenance expenses
|
|
|
207.0
|
|
|
|
10.4
|
|
|
|
19.7
|
|
|
|
(6.5)
|
|
|
|
230.6
|
|
Depreciation and amortization
|
|
|
98.1
|
|
|
|
0.6
|
|
|
|
3.6
|
|
|
|
—
|
|
|
|
102.3
|
|
Taxes, other than income taxes
|
|
|
91.9
|
|
|
|
0.7
|
|
|
|
1.4
|
|
|
|
—
|
|
|
|
94.0
|
|
Less: Gross receipts tax expense
|
|
|
(63.8)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(63.9)
|
|
Contribution Margin [Non-GAAP]
|
|
|
664.0
|
|
|
|
63.6
|
|
|
|
32.2
|
|
|
|
(6.5)
|
|
|
|
753.3
|
|
Natural gas costs
|
|
|
823.5
|
|
|
|
(5.5)
|
|
|
|
0.1
|
|
|
|
(17.8)
|
|
|
|
800.3
|
|
Gross receipts tax expense
|
|
|
63.8
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
63.9
|
|
Operating Revenues
|
|
$
|
1,551.3
|
|
|
$
|
58.2
|
|
|
$
|
32.3
|
|
|
$
|
(24.3)
|
|
|
$
|
1,617.5
|
|
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
View original content to download
multimedia:https://www.prnewswire.com/news-releases/spire-reports-fy22-second-quarter-results-301541467.html
SOURCE Spire Inc.