HONOLULU, Feb. 11, 2016 /PRNewswire/ --
Selected 2015 Highlights:
- Reported net income of $159.9
million in 2015 vs $168.1
million in 2014, down 5%;
Core1 net income of $175.7
million in 2015 vs $173.0
million in 2014, up 2%
- Reported EPS of $1.50 in
2015 vs $1.63 in 2014, down 8%;
Core1 EPS of $1.65
in 2015 vs $1.68 in 2014, down
2%
- Reported ROE of 8.6%; Core1 ROE of
9.4%
- Continued legacy of delivering value for customers and
Hawaii:
- Record 22%2 of electricity used by Hawaiian Electric
customers was from renewable sources
- Surpassed Hawaii's 2015
renewable portfolio standard target of 15%
- Avoided-oil equivalent of 1.9 million barrels which would have
cost our state over $140 million3 in imported oil
in 2015
- 2015 residential bills lower by 18% due to lower fuel prices
compared to 2014
- Led the nation in the integration of customer-sited
solar: by the end of 2015, over 20% of single family homes on
the islands we serve and approximately 13% of our customers have
solar systems
- Continuing cost management efforts limited utility other
operations and maintenance (O&M) expense4 increases
to 1% over the 2014 level, in line with the Honolulu inflation rate of 1%
- Bank provided over $1.9 billion
of credit to consumers and businesses and originated over 3,500
mortgages
- Bank credit quality excellent with net charge-offs of 4 basis
points on a loan book of $4.6
billion
- Contributed nearly twenty thousand volunteer hours and over
$2 million of charitable
contributions to community organizations
- History of continuous dividends since 1901
- Progress on proposed merger with NextEra Energy and spin-off
of American Savings Bank:
- Received shareholder approval for the merger with NextEra
Energy, Inc.
- Filed Hawaii Public Utilities Commission (PUC) application for
the proposed merger and PUC has initiated hearings
- Filed SEC Form 10 for the bank spin-off
_________________
1
|
Non-GAAP measure
which excludes merger-related and spin-off costs after-tax.
See the "Explanation of HEI's Use of Certain Unaudited Non-GAAP
measures" and the related reconciliation.
|
2
|
Based upon
preliminary Renewable Portfolio Standard information as of
12/31/15.
|
3
|
Estimate based on the
2015 average price per barrel of $74.71 and as compared to 2008 oil
usage levels.
|
4
|
Excludes net income
neutral expenses covered by surcharges or by third parties and
merger-related costs. See "Explanation of HEI's Use of
Certain Unaudited Non-GAAP measures" and the related
reconciliation.
|
Hawaiian Electric Industries, Inc. (NYSE: HE) (HEI) today
reported 2015 year-end consolidated net income for common stock of
$159.9 million and diluted earnings
per share (EPS) of $1.50 compared to
$168.1 million and EPS of
$1.63 for 2014. For the fourth
quarter of 2015, consolidated net income for common stock was
$42.3 million and EPS of
$0.39 compared to $33.3 million and EPS of $0.32 for the fourth quarter of 2014.
Excluding after-tax costs associated with the pending merger with
NextEra Energy, Inc. and the spin-off of ASB Hawaii, Inc. of
$15.8 million and $4.9 million in 2015 and 2014, respectively, and
$2.2 million and $4.3 million in the fourth quarter of 2015 and
2014, respectively, core1 earnings in 2015 were
$175.7 million and core1
EPS of $1.65, compared to
$173.0 million and EPS of
$1.68 in 2014. For the fourth
quarter of 2015, core1 earnings were $44.5 million and core1 EPS of
$0.41 compared to $37.6 million and EPS of $0.36 for the fourth quarter of 2014.
"Our HEI companies delivered a competitive core1
return on equity of 9.4% for the year," said Constance Lau, HEI president and chief executive
officer, "and our continuing efforts to push the boundaries of
renewable energy integration helped us achieve an energy portfolio
powered by 22%2 renewable sources in 2015, exceeding
Hawaii's 2015 Renewable Portfolio
Standard (RPS) target of 15%. Thirteen percent of our
customers now have customer-sited solar, a level of integration
that leads the nation. We continue to push for even higher
levels of renewable integration to meet Hawaii's 100% RPS goal for 2045. We
remain focused on further reducing costs for our customers by
vigilantly managing expenses; and increasing customer choice and
engagement in Hawaii's move to
100% renewable energy by designing new time of use rates and demand
response programs. Fortunately, lower oil prices in 2015
reduced the average residential bill by 18%, but it's important
that we continue to reduce our state's exposure to future oil price
volatility and price increases."
"Our bank delivered solid financial results in 2015, producing
healthy loan growth with good credit quality while maintaining its
capital levels. Our bank continues to make investments to
continually improve the customer experience and is well positioned
to continue to grow in 2016," said Lau.
"In December 2014, we announced
our proposed merger with NextEra Energy, and pending approval by
the Hawaii Public Utilities Commission, we are looking forward to
working with NextEra Energy as a partner to help accelerate
Hawaii's clean energy
transformation. We also announced the related spin-off of
American Savings Bank, and we are confident that American, as a
new, publicly-traded entity, will provide benefits for our
Hawaii customers and communities,"
added Lau.
HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH
EXPECTATIONS
Full Year Results:
Hawaiian Electric Company's5 full-year 2015 net
income was $135.7 million compared to
$137.6 million in 2014.
The $1.9 million decrease from the
prior year was primarily driven by the following after-tax
items:
- $7 million higher depreciation
expense as a result of increasing investments for the integration
of more renewable energy, improved customer reliability and greater
system efficiency; and
- $3 million higher O&M
expenses4 impacted by a regulatory decision denying
recovery of enterprise resource planning software costs, additional
reserves for environmental costs and higher employee benefit costs
offset in part by higher 2014 costs for initial phase smart grid
installations.
These items were partially offset by $7
million higher net revenues6 primarily due to
$8 million in recovery of costs for
clean energy and reliability investments partially offset by
$1 million lower fuel efficiency
performance.
_________________
Note: Amounts
indicated as "after-tax" in this earnings release are based upon
adjusting items for the composite statutory tax rates of 39% for
the utilities and 40% for the bank.
|
5
|
Hawaiian Electric
Company, unless otherwise defined, refers to the three utilities,
Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company,
Limited, and Hawaii Electric Light Company, Inc.
|
6
|
Net revenues
represent the after-tax impact of "Revenues" less the following
expenses which are largely pass through items in revenues: "fuel
oil," "purchased power" and "taxes, other than income taxes" as
shown on the Hawaiian Electric Company, Inc. and Subsidiaries'
Consolidated Statements of Income.
|
Fourth Quarter Results:
Fourth quarter 2015 net income of $33.0
million was $3.9 million
higher than the fourth quarter of 2014 primarily driven by the
following after-tax items:
- $5 million lower O&M
expenses4 in the fourth quarter of 2015 largely due to
lower maintenance costs including vegetation management costs, the
deferral of RFP costs and higher fourth quarter of 2014 costs for
initial phase smart grid installations and the upgrade of the
customer information system partially offset by the additional
reserves for environmental costs in 2015; and
- $2 million higher net revenues in
2015 attributable to the recovery of costs for clean energy and
reliability investments.
These items were partially offset by the following after-tax
items:
- $2 million higher depreciation
expense in the fourth quarter of 2015 as a result of increasing
investments for the integration of more renewable energy, improved
customer reliability and greater system efficiency; and
- $1 million higher interest
expense and other charges.
AMERICAN SAVINGS BANK: SOLID FINANCIAL
PERFORMANCE
Full Year Results:
American Savings Bank's (American) full-year 2015 net income was
$54.7 million compared to
$51.3 million in 2014. The
$3.4 million increase from the prior
year was primarily driven by the following after-tax items:
- $5 million higher net interest
income as contributions from loan and investment portfolio growth
more than offset the lower yield on earning assets; and
- $4 million higher noninterest
income primarily due to higher mortgage banking income
($2 million) resulting from selling a larger portion of low
rate mortgage loan originations and higher deposit-related fee
initiatives ($2 million).
These increases were partially offset by $6 million after-tax higher noninterest expense
primarily due to higher pension and benefits expense.
American achieved loan growth of 4.1% in 2015, consistent with
the bank's target and growth strategies, operating in the
competitive Hawaii market
environment. Loan growth was primarily driven by commercial
real estate, residential and home equity loans and helped to offset
the impact of the decline in net interest margin.
Total deposits were $5.0 billion
at December 31, 2015, an increase of
$402 million or 8.7% from
December 31, 2014. Low-cost
core deposits increased $357 million
or 8.5% from December 31, 2014.
The average cost of funds was 0.22% for the full year 2015, down
1 basis point from the prior year.
Overall, American's return on average equity for the full year
remained solid at 9.9% in 2015 compared to 9.6% in 2014, and the
return on average assets for the full year was 0.95% in 2015
consistent with 2014.
Fourth Quarter Results:
Fourth quarter 2015 net income of $15.0
million was $1.5 million
higher than the third, or linked quarter and $2.8 million higher than the fourth quarter
of 2014.
Compared to the linked quarter of 2015, the $1.5 million increase in the fourth quarter of
2015 was primarily driven by the following after-tax items:
- $1 million lower provision for
loan losses primarily related to the recovery during the fourth
quarter of 2015 of previously charged-off loans; and
- $1 million higher net interest
income due to strong loan and investment portfolio growth.
These increases were partially offset by $1 million (after-tax) of lower noninterest
income primarily due to the gain on sale of the American service
center building vacated as part of the campus consolidation plan in
the linked quarter.
Compared to the fourth quarter of 2014, the $2.8 million higher net income in the fourth
quarter of 2015 was primarily driven by the following after-tax
items:
- $1 million higher net interest
income due to strong loan and investment portfolio growth;
- $1 million higher provision for
loan losses in the fourth quarter of 2014 primarily due to the
downgrade of one performing commercial real estate loan; and
- $1 million higher noninterest
income.
American's fourth quarter of 2015 return on average equity was
10.7%, up from 9.7% in the linked quarter and 8.9% in the fourth
quarter last year. Return on average assets was 1.01% for the
fourth quarter of 2015, compared to 0.92% from the linked quarter
and 0.88% in the same quarter last year.
Also refer to the American's news release issued on January 29, 2016.
HOLDING AND OTHER COMPANIES
The holding and other companies' net losses were $30.6 million in 2015 compared to
$20.8 million in 2014.
Excluding after-tax costs associated with the pending merger with
NextEra Energy, Inc. and the spin-off of ASB Hawaii, Inc. of
$15.2 million in 2015 and
$4.9 million in 2014, holding and
other companies' net losses in 2015 and 2014 were $15.4 million and $15.9
million, respectively.
Fourth quarter net losses were $5.6
million in 2015 compared to $8.0 million in the fourth quarter of
2014. Excluding after-tax costs associated with the pending
merger with NextEra Energy, Inc. and the spin-off of ASB Hawaii,
Inc. of $1.8 million in the fourth
quarter of 2015 and $4.3 million in
the fourth quarter of 2014, holding and other companies' net losses
in 2015 and 2014 were $3.8 million and $3.7
million, respectively.
WEBCAST AND CONFERENCE CALL
HEI TO ANNOUNCE 2016 EPS GUIDANCE IN EARNINGS CONFERENCE
CALL
Hawaiian Electric Industries, Inc. will conduct a webcast and
conference call to review its 2015 earnings on Thursday, February
11, 2016, at 12:00 noon Hawaii time (5:00 p.m.
Eastern time). HEI will announce 2016 EPS guidance
during the scheduled webcast and conference call.
Interested parties within the United
States may listen to the conference by calling (888)
311-8190 and entering passcode: 15902422. International
parties may listen to the conference by calling (330) 863-3378 and
entering passcode: 15902422 or by accessing the webcast on HEI's
website under the heading "Investor Relations." HEI and
Hawaiian Electric Company intend to continue to use HEI's website,
www.hei.com, as a means of disclosing additional information.
Such disclosures will be included on HEI's website in the Investor
Relations section. Accordingly, investors should routinely
monitor such portions of HEI's website, in addition to following
HEI's, Hawaiian Electric Company's and American's press releases,
HEI's and Hawaiian Electric Company's Securities and Exchange
Commission (SEC) filings and HEI's public conference calls and
webcasts. The information on HEI's website is not
incorporated by reference in this document or in HEI's and Hawaiian
Electric Company's SEC filings unless, and except to the extent,
specifically incorporated by reference. Investors may also
wish to refer to the Public Utilities Commission of the
State of Hawaii (PUC) website at
dms.puc.hawaii.gov/dms in order to review documents filed with
and issued by the PUC. No information on the PUC website is
incorporated by reference in this document or in HEI's and Hawaiian
Electric Company's SEC filings.
An online replay of the webcast will be available at the same
website beginning about two hours after the event and will remain
on HEI's website for 12 months. Replays of the conference
call will also be available approximately two hours after the event
through February 25, 2016, by dialing
(855) 859-2056 or (404) 537-3406 and entering passcode:
15902422.
HEI supplies power to approximately 95% of Hawaii's population through its electric
utilities, Hawaiian Electric Company, Inc., Hawaii Electric Light
Company, Inc. and Maui Electric Company, Limited and provides a
wide array of banking and other financial services to consumers and
businesses through American Savings Bank, one of Hawaii's largest financial institutions.
NON-GAAP MEASURES
See "Explanation of HEI's Use of Certain Unaudited Non-GAAP
Measures" and related reconciliations on pages 15 to 16 of this
release.
FORWARD-LOOKING STATEMENTS
This release may contain "forward-looking statements," which
include statements that are predictive in nature, depend upon or
refer to future events or conditions, and usually include words
such as "expects," "anticipates," "intends," "plans," "believes,"
"predicts," "estimates" or similar expressions. In addition,
any statements concerning future financial performance, ongoing
business strategies or prospects or possible future actions are
also forward-looking statements. Forward-looking statements
are based on current expectations and projections about future
events and are subject to risks, uncertainties and the accuracy of
assumptions concerning HEI and its subsidiaries, the performance of
the industries in which they do business and economic and market
factors, among other things. These forward-looking statements
are not guarantees of future performance.
Forward-looking statements in this release should be read in
conjunction with the "Forward-Looking Statements" and "Risk
Factors" discussions (which are incorporated by reference herein)
set forth in HEI's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2015 and HEI's future periodic reports
that discuss important factors that could cause HEI's results to
differ materially from those anticipated in such statements.
These forward-looking statements speak only as of the date of the
report, presentation or filing in which they are made. Except
to the extent required by the federal securities laws, HEI,
Hawaiian Electric Company, American and their subsidiaries
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
|
|
|
|
|
|
|
|
Three months ended
December 31
|
|
Years ended
December 31
|
(in thousands, except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
555,434
|
|
|
$
|
725,267
|
|
|
$
|
2,335,166
|
|
|
$
|
2,987,323
|
|
Bank
|
|
68,511
|
|
|
64,726
|
|
|
267,733
|
|
|
252,497
|
|
Other
|
|
87
|
|
|
47
|
|
|
83
|
|
|
(278)
|
|
Total
revenues
|
|
624,032
|
|
|
790,040
|
|
|
2,602,982
|
|
|
3,239,542
|
|
Expenses
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
487,772
|
|
|
666,389
|
|
|
2,061,050
|
|
|
2,711,555
|
|
Bank
|
|
45,858
|
|
|
46,424
|
|
|
183,921
|
|
|
173,202
|
|
Other
|
|
7,180
|
|
|
9,060
|
|
|
35,458
|
|
|
22,185
|
|
Total
expenses
|
|
540,810
|
|
|
721,873
|
|
|
2,280,429
|
|
|
2,906,942
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
67,662
|
|
|
58,878
|
|
|
274,116
|
|
|
275,768
|
|
Bank
|
|
22,653
|
|
|
18,302
|
|
|
83,812
|
|
|
79,295
|
|
Other
|
|
(7,093)
|
|
|
(9,013)
|
|
|
(35,375)
|
|
|
(22,463)
|
|
Total operating
income
|
|
83,222
|
|
|
68,167
|
|
|
322,553
|
|
|
332,600
|
|
Interest expense,
net—other than on deposit liabilities and other bank
borrowings
|
|
(19,915)
|
|
|
(17,704)
|
|
|
(77,150)
|
|
|
(76,352)
|
|
Allowance for
borrowed funds used during construction
|
|
539
|
|
|
702
|
|
|
2,457
|
|
|
2,579
|
|
Allowance for equity
funds used during construction
|
|
1,562
|
|
|
1,838
|
|
|
6,928
|
|
|
6,771
|
|
Income before
income taxes
|
|
65,408
|
|
|
53,003
|
|
|
254,788
|
|
|
265,598
|
|
Income
taxes
|
|
22,615
|
|
|
19,277
|
|
|
93,021
|
|
|
95,579
|
|
Net
income
|
|
42,793
|
|
|
33,726
|
|
|
161,767
|
|
|
170,019
|
|
Preferred stock
dividends of subsidiaries
|
|
473
|
|
|
473
|
|
|
1,890
|
|
|
1,890
|
|
Net income for
common stock
|
|
$
|
42,320
|
|
|
$
|
33,253
|
|
|
$
|
159,877
|
|
|
$
|
168,129
|
|
Basic earnings per
common share
|
|
$
|
0.39
|
|
|
$
|
0.32
|
|
|
$
|
1.50
|
|
|
$
|
1.65
|
|
Diluted earnings
per common share
|
|
$
|
0.39
|
|
|
$
|
0.32
|
|
|
$
|
1.50
|
|
|
$
|
1.63
|
|
Dividends per
common share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
1.24
|
|
|
$
|
1.24
|
|
Weighted-average
number of common shares outstanding
|
|
107,460
|
|
|
102,561
|
|
|
106,418
|
|
|
101,968
|
|
Adjusted
weighted-average shares
|
|
107,797
|
|
|
103,991
|
|
|
106,721
|
|
|
102,937
|
|
Net income (loss)
for common stock by segment
|
|
|
|
|
|
|
|
|
Electric
utility
|
|
$
|
32,993
|
|
|
$
|
29,112
|
|
|
$
|
135,714
|
|
|
$
|
137,641
|
|
Bank
|
|
14,953
|
|
|
12,113
|
|
|
54,730
|
|
|
51,301
|
|
Other
|
|
(5,626)
|
|
|
(7,972)
|
|
|
(30,567)
|
|
|
(20,813)
|
|
Net income for
common stock
|
|
$
|
42,320
|
|
|
$
|
33,253
|
|
|
$
|
159,877
|
|
|
$
|
168,129
|
|
Comprehensive income
attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
38,075
|
|
|
$
|
19,869
|
|
|
$
|
160,993
|
|
|
$
|
157,501
|
|
Return on average
common equity
|
|
|
|
|
|
8.6
|
%
|
|
9.6
|
%
|
|
Prior period
financial statements reflect the retrospective application of
Accounting Standards Update (ASU) No. 2014-01, "Investments-Equity
Method and Joint Ventures (Topic 323): Accounting for Investments
in Qualified Affordable Housing Projects," which was adopted as of
January 1, 2015 and did not have a material impact on the Company's
financial condition or results of operations.
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form
10-K for the year ended December 31, 2015 (when filed), ASB Hawaii,
Inc.'s Form 10 for the year ended December 31, 2015 (when filed)
and HEI's Quarterly Reports on SEC Form 10-Q /A for the quarters
ended March 31, 2015 and June 30, 2015 and HEI's Quarterly Report
on SEC Form 10-Q for the quarter ended September 30, 2015, as
updated by SEC Forms 8-K.
|
Hawaiian Electric
Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
December
31
|
|
2015
|
|
2014
|
(dollars in thousands)
|
|
|
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
300,478
|
|
|
$
|
175,542
|
|
Accounts receivable
and unbilled revenues, net
|
|
242,766
|
|
|
313,696
|
|
Available-for-sale
investment securities, at fair value
|
|
820,648
|
|
|
550,394
|
|
Stock in Federal Home
Loan Bank, at cost
|
|
10,678
|
|
|
69,302
|
|
Loans receivable held
for investment, net
|
|
4,565,781
|
|
|
4,389,033
|
|
Loans held for sale,
at lower of cost or fair value
|
|
4,631
|
|
|
8,424
|
|
Property, plant and
equipment, net of accumulated depreciation of $2,339,319 and
$2,250,950 at the respective dates
|
|
4,377,658
|
|
|
4,148,774
|
|
Regulatory
assets
|
|
896,731
|
|
|
905,264
|
|
Other
|
|
488,635
|
|
|
542,523
|
|
Goodwill
|
|
82,190
|
|
|
82,190
|
|
Total
assets
|
|
$
|
11,790,196
|
|
|
$
|
11,185,142
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
138,523
|
|
|
$
|
186,425
|
|
Interest and
dividends payable
|
|
26,042
|
|
|
25,336
|
|
Deposit
liabilities
|
|
5,025,254
|
|
|
4,623,415
|
|
Short-term
borrowings—other than bank
|
|
103,063
|
|
|
118,972
|
|
Other bank
borrowings
|
|
328,582
|
|
|
290,656
|
|
Long-term debt,
net—other than bank
|
|
1,586,546
|
|
|
1,506,546
|
|
Deferred income
taxes
|
|
680,877
|
|
|
633,570
|
|
Regulatory
liabilities
|
|
371,543
|
|
|
344,849
|
|
Contributions in aid
of construction
|
|
506,087
|
|
|
466,432
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
589,918
|
|
|
632,845
|
|
Other
|
|
471,828
|
|
|
531,230
|
|
Total
liabilities
|
|
9,828,263
|
|
|
9,360,276
|
|
Preferred stock of
subsidiaries - not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
Shareholders'
equity
|
|
|
|
|
Preferred stock, no
par value, authorized 10,000,000 shares; issued: none
|
|
—
|
|
|
—
|
|
Common stock, no par
value, authorized 200,000,000 shares; issued and outstanding:
107,460,406 shares and 102,565,266 shares at the respective
dates
|
|
1,629,136
|
|
|
1,521,297
|
|
Retained
earnings
|
|
324,766
|
|
|
296,654
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
(26,262)
|
|
|
(27,378)
|
|
Total
shareholders' equity
|
|
1,927,640
|
|
|
1,790,573
|
|
Total liabilities
and shareholders' equity
|
|
$
|
11,790,196
|
|
|
$
|
11,185,142
|
|
|
Prior period
financial statements reflect the retrospective application of ASU
No. 2014-01, "Investments-Equity Method and Joint Ventures (Topic
323): Accounting for Investments in Qualified Affordable Housing
Projects," which was adopted as of January 1, 2015 and did not have
a material impact on the Company's financial condition or results
of operations.
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form
10-K for the year ended December 31, 2015 (when filed), ASB Hawaii,
Inc.'s Form 10 for the year ended December 31, 2015 (when filed)
and HEI's Quarterly Reports on SEC Form 10-Q /A for the quarters
ended March 31, 2015 and June 30, 2015 and HEI's Quarterly Report
on SEC Form 10-Q for the quarter ended September 30, 2015, as
updated by SEC Forms 8-K.
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
|
|
|
|
|
|
|
Three months ended
December 31
|
|
Years ended
December 31
|
(dollars
in thousands, except per barrel amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
$
|
555,434
|
|
|
$
|
725,267
|
|
|
$
|
2,335,166
|
|
|
$
|
2,987,323
|
|
Expenses
|
|
|
|
|
|
|
|
|
Fuel oil
|
|
135,930
|
|
|
265,696
|
|
|
654,600
|
|
|
1,131,685
|
|
Purchased
power
|
|
148,287
|
|
|
175,887
|
|
|
594,096
|
|
|
722,008
|
|
Other operation and
maintenance
|
|
106,570
|
|
|
115,129
|
|
|
413,089
|
|
|
410,612
|
|
Depreciation
|
|
44,540
|
|
|
41,597
|
|
|
177,380
|
|
|
166,387
|
|
Taxes, other than
income taxes
|
|
52,445
|
|
|
68,080
|
|
|
221,885
|
|
|
280,863
|
|
Total
expenses
|
|
487,772
|
|
|
666,389
|
|
|
2,061,050
|
|
|
2,711,555
|
|
Operating
income
|
|
67,662
|
|
|
58,878
|
|
|
274,116
|
|
|
275,768
|
|
Allowance for equity
funds used during construction
|
|
1,562
|
|
|
1,838
|
|
|
6,928
|
|
|
6,771
|
|
Interest expense and
other charges, net
|
|
(17,200)
|
|
|
(15,768)
|
|
|
(66,370)
|
|
|
(64,757)
|
|
Allowance for
borrowed funds used during construction
|
|
539
|
|
|
702
|
|
|
2,457
|
|
|
2,579
|
|
Income before income
taxes
|
|
52,563
|
|
|
45,650
|
|
|
217,131
|
|
|
220,361
|
|
Income
taxes
|
|
19,071
|
|
|
16,039
|
|
|
79,422
|
|
|
80,725
|
|
Net
income
|
|
33,492
|
|
|
29,611
|
|
|
137,709
|
|
|
139,636
|
|
Preferred stock
dividends of subsidiaries
|
|
229
|
|
|
229
|
|
|
915
|
|
|
915
|
|
Net income
attributable to Hawaiian Electric
|
|
33,263
|
|
|
29,382
|
|
|
136,794
|
|
|
138,721
|
|
Preferred stock
dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
|
1,080
|
|
|
1,080
|
|
Net income for
common stock
|
|
$
|
32,993
|
|
|
$
|
29,112
|
|
|
$
|
135,714
|
|
|
$
|
137,641
|
|
Comprehensive
income attributable to Hawaiian Electric
|
|
$
|
33,862
|
|
|
$
|
28,517
|
|
|
$
|
136,594
|
|
|
$
|
137,078
|
|
OTHER ELECTRIC
UTILITY INFORMATION
|
|
|
|
|
|
|
|
|
Kilowatthour sales
(millions)
|
|
|
|
|
|
|
|
|
Hawaiian
Electric
|
|
1,738
|
|
|
1,720
|
|
|
6,754
|
|
|
6,782
|
|
Hawaii
Electric Light
|
|
273
|
|
|
269
|
|
|
1,065
|
|
|
1,062
|
|
Maui
Electric
|
|
290
|
|
|
288
|
|
|
1,138
|
|
|
1,132
|
|
|
|
2,301
|
|
|
2,277
|
|
|
8,957
|
|
|
8,976
|
|
Wet-bulb temperature
(Oahu average; degrees Fahrenheit)
|
|
71.9
|
|
|
70.0
|
|
|
70.6
|
|
|
69.6
|
|
Cooling degree days
(Oahu)
|
|
1,395
|
|
|
1,206
|
|
|
5,082
|
|
|
4,909
|
|
Average fuel oil cost
per barrel
|
|
$
|
61.59
|
|
|
$
|
122.04
|
|
|
$
|
74.71
|
|
|
$
|
129.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended December 31
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
Return on average
common equity (%) (simple average)
|
|
|
|
|
|
|
|
|
|
|
8.02
|
|
|
|
8.74
|
|
Hawaiian
Electric
|
|
|
|
|
|
|
|
|
|
|
7.22
|
|
|
|
6.71
|
|
Hawaii
Electric Light
|
|
|
|
|
|
|
|
|
|
|
8.52
|
|
|
|
8.81
|
|
Maui
Electric
|
|
|
|
|
|
|
|
|
|
|
7.96
|
|
|
|
8.40
|
|
Hawaiian
Electric Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric's Annual
Report on SEC Form 10-K for the year ended December 31, 2015 (when
filed) and the consolidated financial statements and the notes
thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q/A
for the quarters ended March 31, 2015 and June 30, 2015 and
Hawaiian Electric's Quarterly Report on SEC Form 10-Q for the
quarter ended September 30, 2015, as updated by SEC Forms
8-K.
|
Hawaiian Electric
Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
December
31
|
|
2015
|
|
2014
|
(dollars in
thousands, except par value)
|
|
|
|
|
Assets
|
|
|
|
|
Property, plant
and equipment
|
|
|
|
|
Utility property,
plant and equipment
|
|
|
|
|
Land
|
|
$
|
52,792
|
|
|
$
|
52,299
|
|
Plant
and equipment
|
|
6,315,698
|
|
|
6,009,482
|
|
Less
accumulated depreciation
|
|
(2,266,004)
|
|
|
(2,175,510)
|
|
Construction in progress
|
|
175,309
|
|
|
158,616
|
|
Utility
property, plant and equipment, net
|
|
4,277,795
|
|
|
4,044,887
|
|
Nonutility property,
plant and equipment, less accumulated depreciation of $1,229 and
$1,227 at respective dates
|
|
7,272
|
|
|
6,563
|
|
Total
property, plant and equipment, net
|
|
4,285,067
|
|
|
4,051,450
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
24,449
|
|
|
13,762
|
|
Customer accounts
receivable, net
|
|
132,778
|
|
|
158,484
|
|
Accrued unbilled
revenues, net
|
|
84,509
|
|
|
137,374
|
|
Other accounts
receivable, net
|
|
10,408
|
|
|
4,283
|
|
Fuel oil stock, at
average cost
|
|
71,216
|
|
|
106,046
|
|
Materials and
supplies, at average cost
|
|
54,429
|
|
|
57,250
|
|
Prepayments and
other
|
|
36,640
|
|
|
33,468
|
|
Regulatory
assets
|
|
72,231
|
|
|
71,421
|
|
Total
current assets
|
|
486,660
|
|
|
582,088
|
|
Other long-term
assets
|
|
|
|
|
Regulatory
assets
|
|
824,500
|
|
|
833,843
|
|
Unamortized debt
expense
|
|
8,341
|
|
|
8,323
|
|
Other
|
|
75,486
|
|
|
81,838
|
|
Total
other long-term assets
|
|
908,327
|
|
|
924,004
|
|
Total
assets
|
|
$
|
5,680,054
|
|
|
$
|
5,557,542
|
|
Capitalization and
liabilities
|
|
|
|
|
Capitalization
|
|
|
|
|
Common stock ($6 2/3
par value, authorized 50,000,000 shares; outstanding 15,805,327
shares)
|
|
$
|
105,388
|
|
|
$
|
105,388
|
|
Premium on capital
stock
|
|
578,930
|
|
|
578,938
|
|
Retained
earnings
|
|
1,043,082
|
|
|
997,773
|
|
Accumulated other
comprehensive income, net of taxes-retirement benefit
plans
|
|
925
|
|
|
45
|
|
Common stock equity
|
|
1,728,325
|
|
|
1,682,144
|
|
Cumulative preferred
stock — not subject to mandatory redemption
|
|
34,293
|
|
|
34,293
|
|
Long-term debt,
net
|
|
1,286,546
|
|
|
1,206,546
|
|
Total
capitalization
|
|
3,049,164
|
|
|
2,922,983
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
114,846
|
|
|
163,934
|
|
Interest and
preferred dividends payable
|
|
23,111
|
|
|
22,316
|
|
Taxes
accrued
|
|
191,084
|
|
|
250,402
|
|
Regulatory
liabilities
|
|
2,204
|
|
|
632
|
|
Other
|
|
54,079
|
|
|
61,664
|
|
Total
current liabilities
|
|
385,324
|
|
|
498,948
|
|
Deferred credits
and other liabilities
|
|
|
|
|
Deferred income
taxes
|
|
654,806
|
|
|
573,439
|
|
Regulatory
liabilities
|
|
369,339
|
|
|
344,217
|
|
Unamortized tax
credits
|
|
84,214
|
|
|
79,492
|
|
Defined benefit
pension and other postretirement benefit plans liability
|
|
552,974
|
|
|
595,395
|
|
Other
|
|
78,146
|
|
|
76,636
|
|
Total
deferred credits and other liabilities
|
|
1,739,479
|
|
|
1,669,179
|
|
Contributions in aid
of construction
|
|
506,087
|
|
|
466,432
|
|
Total
capitalization and liabilities
|
|
$
|
5,680,054
|
|
|
$
|
5,557,542
|
|
|
The Consolidated
Balance Sheet as of December 31, 2014 reflects the retrospective
application of ASU No. 2015-17, "Income Taxes (Topic 740): Balance
Sheet Classification of Deferred Taxes," which was adopted as of
December 31, 2015.
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric's Annual
Report on SEC Form 10-K for the year ended December 31, 2015 (when
filed) and the consolidated financial statements and the notes
thereto in Hawaiian Electric's Quarterly Reports on SEC Form 10-Q/A
for the quarters ended March 31, 2015 and June 30, 2015 and
Hawaiian Electric's Quarterly Report on SEC Form 10-Q for the
quarter ended September 30, 2015, as updated by SEC Forms
8-K.
|
American Savings
Bank, F.S.B.
STATEMENTS OF INCOME DATA
(Unaudited)
|
|
|
|
|
|
|
|
Three months
ended
|
|
Years
ended December 31,
|
(in thousands)
|
|
December 31,
2015
|
|
September 30,
2015
|
|
December 31,
2014
|
|
2015
|
|
2014
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
47,136
|
|
|
$
|
46,413
|
|
|
$
|
46,276
|
|
|
$
|
184,782
|
|
|
$
|
179,341
|
|
Interest and
dividends on investment securities
|
|
4,550
|
|
|
4,213
|
|
|
3,187
|
|
|
15,120
|
|
|
11,945
|
|
Total interest and
dividend income
|
|
51,686
|
|
|
50,626
|
|
|
49,463
|
|
|
199,902
|
|
|
191,286
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Interest on deposit
liabilities
|
|
1,467
|
|
|
1,355
|
|
|
1,303
|
|
|
5,348
|
|
|
5,077
|
|
Interest on other
borrowings
|
|
1,510
|
|
|
1,515
|
|
|
1,468
|
|
|
5,978
|
|
|
5,731
|
|
Total interest
expense
|
|
2,977
|
|
|
2,870
|
|
|
2,771
|
|
|
11,326
|
|
|
10,808
|
|
Net interest
income
|
|
48,709
|
|
|
47,756
|
|
|
46,692
|
|
|
188,576
|
|
|
180,478
|
|
Provision for loan
losses
|
|
839
|
|
|
2,997
|
|
|
2,560
|
|
|
6,275
|
|
|
6,126
|
|
Net interest
income after provision for loan losses
|
|
47,870
|
|
|
44,759
|
|
|
44,132
|
|
|
182,301
|
|
|
174,352
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Fees from other
financial services
|
|
5,667
|
|
|
5,639
|
|
|
5,760
|
|
|
22,211
|
|
|
21,747
|
|
Fee income on deposit
liabilities
|
|
5,746
|
|
|
5,883
|
|
|
5,074
|
|
|
22,368
|
|
|
19,249
|
|
Fee income on other
financial products
|
|
2,006
|
|
|
2,096
|
|
|
1,806
|
|
|
8,094
|
|
|
8,131
|
|
Bank-owned life
insurance
|
|
1,016
|
|
|
1,021
|
|
|
1,004
|
|
|
4,078
|
|
|
3,949
|
|
Mortgage banking
income
|
|
1,003
|
|
|
1,437
|
|
|
1,164
|
|
|
6,330
|
|
|
2,913
|
|
Gains on sale of
investment securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,847
|
|
Other income,
net
|
|
1,387
|
|
|
2,389
|
|
|
455
|
|
|
4,750
|
|
|
2,375
|
|
Total noninterest
income
|
|
16,825
|
|
|
18,465
|
|
|
15,263
|
|
|
67,831
|
|
|
61,211
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
23,705
|
|
|
22,728
|
|
|
19,835
|
|
|
90,518
|
|
|
79,885
|
|
Occupancy
|
|
4,115
|
|
|
4,128
|
|
|
4,238
|
|
|
16,365
|
|
|
17,197
|
|
Data
processing
|
|
3,002
|
|
|
3,032
|
|
|
2,975
|
|
|
12,103
|
|
|
11,690
|
|
Services
|
|
2,474
|
|
|
2,556
|
|
|
2,561
|
|
|
10,204
|
|
|
10,269
|
|
Equipment
|
|
1,578
|
|
|
1,608
|
|
|
1,638
|
|
|
6,577
|
|
|
6,564
|
|
Office supplies,
printing and postage
|
|
1,452
|
|
|
1,511
|
|
|
1,602
|
|
|
5,749
|
|
|
6,089
|
|
Marketing
|
|
844
|
|
|
934
|
|
|
1,309
|
|
|
3,463
|
|
|
3,999
|
|
FDIC
insurance
|
|
881
|
|
|
809
|
|
|
820
|
|
|
3,274
|
|
|
3,261
|
|
Other
expense
|
|
3,991
|
|
|
5,116
|
|
|
6,116
|
|
|
18,067
|
|
|
17,314
|
|
Total noninterest
expense
|
|
42,042
|
|
|
42,422
|
|
|
41,094
|
|
|
166,320
|
|
|
156,268
|
|
Income before
income taxes
|
|
22,653
|
|
|
20,802
|
|
|
18,301
|
|
|
83,812
|
|
|
79,295
|
|
Income
taxes
|
|
7,700
|
|
|
7,351
|
|
|
6,188
|
|
|
29,082
|
|
|
27,994
|
|
Net
income
|
|
$
|
14,953
|
|
|
$
|
13,451
|
|
|
$
|
12,113
|
|
|
$
|
54,730
|
|
|
$
|
51,301
|
|
Comprehensive
income
|
|
$
|
9,477
|
|
|
$
|
17,678
|
|
|
$
|
5,419
|
|
|
$
|
54,017
|
|
|
$
|
46,940
|
|
OTHER BANK
INFORMATION (annualized %, except as of period end)
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.01
|
|
|
0.92
|
|
|
0.88
|
|
|
0.95
|
|
|
0.95
|
|
Return on average
equity
|
|
10.66
|
|
|
9.73
|
|
|
8.93
|
|
|
9.93
|
|
|
9.60
|
|
Return on average
tangible common equity
|
|
12.48
|
|
|
11.43
|
|
|
10.52
|
|
|
11.68
|
|
|
11.35
|
|
Net interest
margin
|
|
3.55
|
|
|
3.53
|
|
|
3.65
|
|
|
3.53
|
|
|
3.62
|
|
Net charge-offs to
average loans outstanding
|
|
(0.08)
|
|
|
0.10
|
|
|
0.04
|
|
|
0.04
|
|
|
0.01
|
|
As of period
end
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to loans outstanding and real estate owned *
|
|
1.02
|
|
|
1.00
|
|
|
0.85
|
|
|
|
|
|
Allowance for loan
losses to loans outstanding
|
|
1.08
|
|
|
1.06
|
|
|
1.03
|
|
|
|
|
|
Tangible common
equity to tangible assets
|
|
8.05
|
|
|
8.23
|
|
|
8.23
|
|
|
|
|
|
Tier-1 leverage ratio
*
|
|
8.8
|
|
|
8.8
|
|
|
8.9
|
|
|
|
|
|
Total capital ratio
*
|
|
13.3
|
|
|
13.4
|
|
|
12.3
|
|
|
|
|
|
Dividend paid to HEI
(via ASB Hawaii, Inc.) ($ in millions)
|
|
$
|
7.5
|
|
|
$
|
7.5
|
|
|
$
|
8.8
|
|
|
$
|
30.0
|
|
|
$
|
36.0
|
|
|
* Regulatory basis.
Capital ratios as of December 31, 2015 and September 30, 2015
calculated under Basel III rules, which became effective January 1,
2015.
|
|
Prior period
financial statements reflect the retrospective application of ASU
No. 2014-01, "Investments-Equity Method and Joint Ventures (Topic
323): Accounting for Investments in Qualified Affordable Housing
Projects," which was adopted as of January 1, 2015 and did not have
a material impact on ASB's financial condition or results of
operations.
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form
10-K for the year ended December 31, 2015 (when filed), ASB Hawaii,
Inc.'s Form 10 for the year ended December 31, 2015 (when filed)
and HEI's Quarterly Reports on SEC Form 10-Q /A for the quarters
ended March 31, 2015 and June 30, 2015 and HEI's Quarterly Report
on SEC Form 10-Q for the quarter ended September 30, 2015, as
updated by SEC Forms 8-K.
|
American Savings
Bank, F.S.B.
BALANCE SHEETS DATA
(Unaudited)
|
|
|
|
December 31
|
2015
|
|
2014
|
|
(in
thousands)
|
|
|
|
|
Assets
|
|
|
|
|
Cash and due from
banks
|
|
$
|
127,201
|
|
|
$
|
107,233
|
|
Interest-bearing
deposits
|
|
93,680
|
|
|
54,230
|
|
Available-for-sale
investment securities, at fair value
|
|
820,648
|
|
|
550,394
|
|
Stock in Federal Home
Loan Bank, at cost
|
|
10,678
|
|
|
69,302
|
|
Loans receivable held
for investment
|
|
4,615,819
|
|
|
4,434,651
|
|
Allowance for loan
losses
|
|
(50,038)
|
|
|
(45,618)
|
|
Net loans
|
|
4,565,781
|
|
|
4,389,033
|
|
Loans held for sale,
at lower of cost or fair value
|
|
4,631
|
|
|
8,424
|
|
Other
|
|
309,946
|
|
|
305,416
|
|
Goodwill
|
|
82,190
|
|
|
82,190
|
|
Total
assets
|
|
$
|
6,014,755
|
|
|
$
|
5,566,222
|
|
Liabilities and
shareholder's equity
|
|
|
|
|
Deposit
liabilities–noninterest-bearing
|
|
$
|
1,520,374
|
|
|
$
|
1,342,794
|
|
Deposit
liabilities–interest-bearing
|
|
3,504,880
|
|
|
3,280,621
|
|
Other
borrowings
|
|
328,582
|
|
|
290,656
|
|
Other
|
|
101,029
|
|
|
118,363
|
|
Total
liabilities
|
|
5,454,865
|
|
|
5,032,434
|
|
Common
stock
|
|
1
|
|
|
1
|
|
Additional paid in
capital
|
|
340,496
|
|
|
338,411
|
|
Retained
earnings
|
|
236,664
|
|
|
211,934
|
|
Accumulated other
comprehensive loss, net of tax benefits
|
|
|
|
|
Net unrealized gains
(losses) on securities
|
$
|
(1,872)
|
|
|
$
|
462
|
|
|
Retirement benefit
plans
|
(15,399)
|
|
(17,271)
|
|
(17,020)
|
|
(16,558)
|
|
Total
shareholder's equity
|
|
559,890
|
|
|
533,788
|
|
Total
liabilities and shareholder's equity
|
|
$
|
6,014,755
|
|
|
$
|
5,566,222
|
|
|
Prior period
financial statements reflect the retrospective application of ASU
No. 2014-01, "Investments-Equity Method and Joint Ventures (Topic
323): Accounting for Investments in Qualified Affordable Housing
Projects," which was adopted as of January 1, 2015 and did not have
a material impact on ASB's financial condition or results of
operations.
|
|
This information
should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form
10-K for the year ended December 31, 2015 (when filed), ASB Hawaii,
Inc.'s Form 10 for the year ended December 31, 2015 (when filed)
and HEI's Quarterly Reports on SEC Form 10-Q /A for the quarters
ended March 31, 2015 and June 30, 2015 and HEI's Quarterly Report
on SEC Form 10-Q for the quarter ended September 30, 2015, as
updated by SEC Forms 8-K.
|
EXPLANATION OF HEI'S USE OF CERTAIN UNAUDITED NON-GAAP
MEASURES
HEI and Hawaiian Electric Company management use certain
non-GAAP measures to evaluate the performance of the utility and
HEI. Management believes these non-GAAP measures provide
useful information and are a better indicator of the companies'
core operating activities. Core earnings and other financial
measures as presented here may not be comparable to similarly
titled measures used by other companies. The accompanying
tables provide a reconciliation of reported GAAP1
earnings to non-GAAP core earnings and the adjusted return on
average common equity (ROACE) for the utility and HEI
consolidated.
The reconciling adjustment from GAAP earnings to core earnings
is limited to the costs related to the pending merger between HEI
and NextEra Energy, Inc. and the spin-off of ASB Hawaii, Inc.
For more information on the pending merger, see HEI's definitive
proxy statement on Form DEFM14A filed on March 26, 2015. Management does not
consider these items to be representative of the company's
fundamental core earnings.
The accompanying table also provides the calculation of utility
GAAP O&M adjusted for costs related to the pending merger
discussed above. "O&M-related net income neutral items" which
are O&M expenses covered by specific surcharges or by third
parties have also been excluded. These "O&M-related net
income neutral items" are grossed-up in revenue and expense and do
not impact net income.
RECONCILIATION OF
GAAP1 TO NON-GAAP MEASURES
|
|
Hawaiian Electric
Industries, Inc. and Subsidiaries (HEI)
|
Unaudited
|
|
|
|
|
|
($ in millions,
except per share amounts)
|
|
|
|
|
|
|
Three months
ended
December 31
|
|
Years ended
December 31
|
|
2015
|
2014
|
|
2015
|
2014
|
HEI CONSOLIDATED
NET INCOME
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
42.3
|
|
$
|
33.3
|
|
|
$
|
159.9
|
|
$
|
168.1
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc. and spin-off of ASB
Hawaii, Inc.
|
2.2
|
|
4.3
|
|
|
15.8
|
|
4.9
|
|
Non-GAAP
(core)
|
$
|
44.5
|
|
$
|
37.6
|
|
|
$
|
175.7
|
|
$
|
173.0
|
|
HEI CONSOLIDATED
DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
0.39
|
|
$
|
0.32
|
|
|
$
|
1.50
|
|
$
|
1.63
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc. and spin-off of ASB
Hawaii, Inc.
|
0.02
|
|
0.04
|
|
|
0.15
|
|
0.05
|
|
Non-GAAP
(core)
|
$
|
0.41
|
|
$
|
0.36
|
|
|
$
|
1.65
|
|
$
|
1.68
|
|
|
|
|
|
|
|
|
|
|
|
Years ended
December 31
|
|
|
|
|
2015
|
2014
|
HEI CONSOLIDATED
RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
|
|
|
|
|
|
|
|
Based on
GAAP
|
|
|
|
8.6
|
%
|
9.6
|
%
|
Based on non-GAAP
(core)2
|
|
|
|
9.4
|
%
|
9.8
|
%
|
|
|
|
|
|
|
Note: Columns may not
foot due to rounding
|
|
1
Accounting principles generally accepted in the United States of
America
|
|
2
Calculated as core net income divided by average GAAP common
equity
|
RECONCILIATION OF
GAAP1 TO NON-GAAP MEASURES
|
|
Hawaiian Electric
Company, Inc. and Subsidiaries
|
Unaudited
|
|
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
Three months
ended
December 31
|
|
Years ended
December 31
|
|
2015
|
2014
|
|
2015
|
2014
|
HAWAIIAN ELECTRIC
CONSOLIDATED NET INCOME
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
33.0
|
|
$
|
29.1
|
|
|
$
|
135.7
|
|
$
|
137.6
|
|
Excluding special
items (after-tax):
|
|
|
|
|
|
Costs related to
pending merger with NextEra Energy, Inc.
|
0.2
|
|
—
|
|
|
0.5
|
|
—
|
|
Non-GAAP
(core)
|
$
|
33.2
|
|
$
|
29.1
|
|
|
$
|
136.2
|
|
$
|
137.6
|
|
|
|
|
|
|
|
|
|
|
|
Years ended
December 31
|
|
|
|
|
2015
|
2014
|
HAWAIIAN ELECTRIC
CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
|
|
|
|
|
|
Based on
GAAP
|
|
|
|
8.0
|
%
|
8.4
|
%
|
Based on non-GAAP
(core)2
|
|
|
|
8.0
|
%
|
8.4
|
%
|
|
|
|
|
|
|
|
Three months
ended
December 31
|
|
Years ended
December 31
|
|
2015
|
2014
|
|
2015
|
2014
|
HAWAIIAN ELECTRIC
CONSOLIDATED OTHER OPERATION AND MAINTENANCE (O&M)
EXPENSE
|
|
|
|
|
|
GAAP (as
reported)
|
$
|
106.6
|
|
$
|
115.1
|
|
|
$
|
413.1
|
|
$
|
410.6
|
|
Excluding
O&M-related net income neutral items3
|
1.6
|
|
2.5
|
|
|
7.0
|
|
10.0
|
|
Excluding costs
related to pending merger with NextEra Energy,
Inc.
|
0.4
|
|
—
|
|
|
0.8
|
|
—
|
|
Non-GAAP (Adjusted
other O&M expense)
|
$
|
104.6
|
|
$
|
112.6
|
|
|
$
|
405.3
|
|
$
|
400.6
|
|
|
|
|
|
|
|
|
Note: Columns
may not foot due to rounding
|
|
1
Accounting principles generally accepted in the United States of
America
|
|
2
Calculated as core net income divided by average GAAP common
equity
|
|
3 Expenses
covered by surcharges or by third parties recorded in
revenues
|
Contact:
|
Clifford H. Chen
|
Telephone: (808) 543-7300
|
|
Manager, Investor
Relations & Strategic Planning
|
E-mail:
ir@hei.com
|
|
|
|
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SOURCE Hawaiian Electric Industries, Inc.