AMEREN CORPORATION ST. LOUIS, May 10, 2016 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced first quarter 2016 net income attributable to common shareholders of $105 million, or $0.43 per share, compared to first quarter 2015 net income attributable to common shareholders of $108 million, or $0.45 per share.
The year-over-year decrease in first quarter 2016 earnings reflected lower electric sales volumes primarily driven by milder winter temperatures and lower sales to Noranda Aluminum, Inc., historically Ameren Missouri's largest customer. These negative factors were partially offset by increased earnings on electric transmission and electric and natural gas delivery infrastructure investments made by Ameren Transmission Company of Illinois (ATXI) and Ameren Illinois under modern, constructive regulatory frameworks, as well as a decrease in the effective income tax rate.
"Our first quarter results were solid, and we remain on track to deliver within our 2016 earnings guidance range of $2.40 to $2.60 per share," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "We continue to successfully execute all elements of our strategy, including strategically allocating capital to jurisdictions with modern, constructive regulatory frameworks and managing costs in a disciplined fashion. We expect this execution to deliver superior value to both our customers and shareholders."
Earnings Guidance
Ameren continues to expect 2016 diluted earnings to be in a range of $2.40 to $2.60 per share including an estimated 15 cents per share reduction related to the expected temporary net effect of significantly lower electric sales volumes to Noranda.
Earnings guidance for 2016 assumes normal temperatures for the last nine months of this year and is subject to the effects of, among other things: 30-year U.S. Treasury bond yields; regulatory decisions and legislative actions; energy center and energy delivery operations; Noranda sales levels; energy, economic, capital and credit market conditions; severe storms; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward-looking Statements section of this press release.
Ameren Missouri Segment Results
Ameren Missouri segment first quarter 2016 earnings were $14 million, compared to first quarter 2015 earnings of $41 million. The earnings decline primarily reflected lower electric sales volumes driven by milder winter temperatures, which reduced earnings by an estimated $17 million, and lower sales to Noranda. The earnings comparison was also unfavorably impacted by the carryover effect of the 2013 through 2015 energy efficiency plan.
Ameren Illinois Segment Results
Ameren Illinois segment first quarter 2016 earnings were $59 million, compared to first quarter 2015 earnings of $53 million. The earnings comparison benefited from increased Illinois natural gas delivery service rates as a result of a December 2015 Illinois Commerce Commission order, and earnings on increased investments in transmission and electric delivery infrastructure. These positive factors were partially offset by the absence of a 2015 benefit from prior year recovery of cumulative power usage costs as well as lower electric and natural gas sales volumes primarily driven by milder winter temperatures. These milder temperatures reduced earnings by an estimated $6 million, compared to the prior-year period.
Other Results, including ATXI and Parent
Other earnings, including those of ATXI and the parent company, for the first quarter of 2016 were $32 million, compared to $14 million for the first quarter of 2015. The higher earnings largely reflected a decrease in the effective income tax rate, which was primarily due to recognition of 2016 tax benefits of $21 million associated with share-based compensation. Those benefits were recognized in earnings pursuant to accounting guidance issued in March 2016. In addition, ATXI earnings increased to $15 million from $10 million as a result of increased investments in electric transmission infrastructure. These positive factors were partially offset by increased parent company interest charges resulting from the November 2015 issuance of $700 million of senior notes that replaced lower-cost, short-term debt.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Wednesday, May 11, to discuss first quarter 2016 earnings, earnings guidance, and regulatory and other matters. Investors, the news media and the public may listen to a live Internet broadcast of the call at Ameren.com by clicking on "Q1 2016 Ameren Corporation Earnings Conference Call," followed by the appropriate audio link. An accompanying slide presentation will be available on Ameren's website. The conference call and this presentation will be accessible in the "Investors" section of the website under "Webcasts & Presentations." The analyst call will be available for replay on Ameren's website for one year. In addition, a telephone replay of the conference call will be available beginning at approximately noon Central Time from May 11 through May 18 by dialing U.S. and Canada 877.660.6853 or international 201.612.7415, and entering ID number 13636756.
About Ameren
St. Louis-based Ameren Corporation powers the quality of life for 2.4 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric delivery and transmission service as well as natural gas delivery service while Ameren Missouri provides vertically integrated electric service, with generating capacity of over 10,200 megawatts, and natural gas delivery service. Ameren Transmission Company of Illinois develops regional electric transmission projects. Follow the company on Twitter @AmerenCorp. For more information, visit Ameren.com.
Forward-looking Statements
Statements in this release not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, strategies, objectives, events, conditions, and financial performance. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed under Risk Factors in Ameren's Form 10-K, and elsewhere in this release and in our other filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
-- regulatory, judicial, or legislative actions, including changes in
regulatory policies and ratemaking determinations, that may result from
the complaint cases filed with the Federal Energy Regulatory Commission
seeking a reduction in the allowed base return on common equity under
the Midcontinent Independent System Operator tariff, Ameren Missouri's
appeal of how an input used to calculate its performance incentive under
the Missouri Energy Efficiency Investment Act (MEEIA) 2013 plan is
determined, Ameren Illinois' April 2016 annual electric delivery service
formula rate update filing, and future regulatory, judicial, or
legislative actions that change regulatory recovery mechanisms;
-- the effect of Ameren Illinois participating in a performance-based
formula ratemaking process under the Illinois Energy Infrastructure
Modernization Act (IEIMA), including the direct relationship between
Ameren Illinois' return on common equity and 30-year United States
Treasury bond yields, the related financial commitments required by the
IEIMA, and the resulting uncertain impact on Ameren Illinois' results of
operations, financial position, and liquidity;
-- our ability to align our overall spending, both operating and capital,
with regulatory frameworks established by our regulators in an attempt
to earn our allowed return on equity;
-- the effects of changes in laws and other governmental actions, including
monetary, fiscal, tax, and energy policies;
-- the effects of changes in federal, state, or local tax laws,
regulations, interpretations, or rates and any challenges to the tax
positions we have taken;
-- the effects on demand for our services resulting from technological
advances, including advances in customer energy efficiency and
distributed generation sources, which generate electricity at the site
of consumption and are becoming more cost-competitive;
-- the effectiveness of Ameren Missouri's customer energy efficiency
programs and the related amount of any revenues and performance
incentive earned under the 2013 MEEIA plan, the 2016 MEEIA plan, and any
future approved MEEIA plan;
-- the timing of increasing capital expenditure and operating expense
requirements and our ability to recover these costs in a timely manner;
-- the cost and availability of fuel such as coal, natural gas, and
enriched uranium used to produce electricity; the cost and availability
of purchased power and natural gas for distribution; and the level and
volatility of future market prices for such commodities, including our
ability to recover the costs for such commodities and our customers'
tolerance for the related rate increases;
-- disruptions in the delivery of fuel, failure of our fuel suppliers to
provide adequate quantities or quality of fuel, or lack of adequate
inventories of fuel, including ultra-low-sulfur coal used for Ameren
Missouri's compliance with environmental regulations;
-- the effectiveness of our risk management strategies and our use of
financial and derivative instruments;
-- the ability to obtain sufficient insurance, including insurance relating
to Ameren Missouri's Callaway Energy Center and insurance for cyber
attacks or, in the absence of insurance, the ability to recover
uninsured losses from customers;
-- business and economic conditions, including their impact on key
customers, interest rates, collection of our receivable balances, and
demand for our products;
-- Noranda Aluminum, Inc.'s (Noranda) bankruptcy filing, the idling of
operations at its aluminum smelter located in southeast Missouri, and
the resulting impacts to Ameren Missouri's ability to recover its
revenue requirement until rates are adjusted by the Missouri Public
Service Commission in a future electric rate case to reflect Noranda's
actual sales volumes;
-- disruptions of the capital markets, deterioration in our credit metrics,
or other events that may have an adverse effect on the cost or
availability of capital, including short-term credit and liquidity;
-- the impact of the adoption of new accounting guidance and the
application of appropriate accounting rules and guidance;
-- actions of credit rating agencies and the effects of such actions;
-- the impact of weather conditions and other natural phenomena on us and
our customers, including the impact of system outages;
-- the construction, installation, performance, and cost recovery of
generation, transmission, and distribution assets;
-- the effects of breakdowns or failures of equipment in the operation of
natural gas distribution and transmission systems and storage
facilities, such as leaks, explosions and mechanical problems, and
compliance with natural gas safety regulations;
-- the effects of our increasing investment in electric transmission
projects, our ability to obtain all of the necessary approvals to
complete the projects, and the uncertainty as to whether we will achieve
our expected returns in a timely manner;
-- operation of Ameren Missouri's Callaway Energy Center, including planned
and unplanned outages, and decommissioning costs;
-- the effects of strategic initiatives, including mergers, acquisitions
and divestitures, and any related tax implications;
-- the impact of current environmental regulations and new, more stringent,
or changing requirements, including those related to carbon dioxide,
other emissions and discharges, cooling water intake structures, coal
combustion residuals, and energy efficiency, that are enacted over time
and that could limit or terminate the operation of certain of our energy
centers, increase our costs or investment requirements, result in an
impairment of our assets, cause us to sell our assets, reduce our
customers' demand for electricity or natural gas, or otherwise have a
negative financial effect;
-- the impact of complying with renewable energy portfolio requirements in
Missouri;
-- labor disputes, work force reductions, future wage and employee benefits
costs, including changes in discount rates, mortality tables, and
returns on benefit plan assets;
-- the inability of our counterparties to meet their obligations with
respect to contracts, credit agreements, and financial instruments;
-- the cost and availability of transmission capacity for the energy
generated by Ameren Missouri's energy centers or required to satisfy
Ameren Missouri's energy sales;
-- legal and administrative proceedings;
-- the impact of cyber attacks, which could result in the loss of
operational control of energy centers and electric and natural gas
transmission and distribution systems and/or the loss of data, such as
utility customer data and account information; and
-- acts of sabotage, war, terrorism, or other intentionally disruptive
acts.
New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.
AMEREN CORPORATION (AEE)
CONSOLIDATED STATEMENT OF INCOME
(Unaudited, in millions, except per share amounts)
Three Months Ended
March 31,
---------
2016 2015
---- ----
Operating Revenues:
Electric $1,102 $1,143
Gas 332 413
--- ---
Total operating
revenues 1,434 1,556
----- -----
Operating Expenses:
Fuel 203 206
Purchased power 138 139
Gas purchased for
resale 152 236
Other operations and
maintenance 400 401
Depreciation and
amortization 207 193
Taxes other than
income taxes 114 125
--- ---
Total operating
expenses 1,214 1,300
----- -----
Operating Income 220 256
Other Income and Expense:
Miscellaneous income 20 19
Miscellaneous expense 7 11
--- ---
Total other income 13 8
Interest Charges 95 88
--- ---
Income Before Income
Taxes 138 176
Income Taxes 31 66
--- ---
Income from Continuing
Operations 107 110
Income from
Discontinued
Operations, Net of
Taxes - -
--- ---
Net Income 107 110
Less: Net Income from
Continuing Operations
Attributable to
Noncontrolling
Interests 2 2
--- ---
Net Income Attributable to Ameren
Common Shareholders:
Continuing Operations 105 108
Discontinued
Operations - -
--- ---
Net Income
Attributable to
Ameren Common
Shareholders $105 $108
---------------- ---- ----
Earnings per Common Share - Basic and
Diluted:
Continuing Operations $0.43 $0.45
Discontinued
Operations - -
--- ---
Earnings per Common
Share - Basic and
Diluted $0.43 $0.45
Average Common Shares
Outstanding - Basic 242.6 242.6
AMEREN CORPORATION (AEE)
CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
March 31, December 31,
2016 2015
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $13 $292
Accounts receivable -trade (less
allowance for doubtful accounts) 428 388
Unbilled revenue 186 239
Miscellaneous accounts and notes
receivable 56 98
Materials and supplies 483 538
Current regulatory assets 215 260
Other current assets 63 88
Assets of discontinued operations 14 14
--- ---
Total current assets 1,458 1,917
----- -----
Property and Plant, Net 19,000 18,799
Investments and Other Assets:
Nuclear decommissioning trust fund 567 556
Goodwill 411 411
Regulatory assets 1,376 1,382
Other assets 573 575
--- ---
Total investments and other assets 2,927 2,924
---------------------------------- ----- -----
TOTAL ASSETS $23,385 $23,640
------------ ------- -------
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt $135 $395
Short-term debt 581 301
Accounts and wages payable 429 777
Taxes accrued 77 43
Interest accrued 99 89
Customer deposits 98 100
Current regulatory liabilities 87 80
Other current liabilities 305 279
Liabilities of discontinued operations 28 29
--- ---
Total current liabilities 1,839 2,093
----- -----
Long-term Debt, Net 6,881 6,880
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes, net 3,928 3,885
Accumulated deferred investment tax
credits 59 60
Regulatory liabilities 1,931 1,905
Asset retirement obligations 625 618
Pension and other postretirement benefits 581 580
Other deferred credits and liabilities 530 531
--- ---
Total deferred credits and other
liabilities 7,654 7,579
----- -----
Ameren Corporation Shareholders' Equity:
Common stock 2 2
Other paid-in capital, principally
premium on common stock 5,539 5,616
Retained earnings 1,333 1,331
Accumulated other comprehensive loss (5) (3)
--- ---
Total Ameren Corporation shareholders'
equity 6,869 6,946
Noncontrolling Interests 142 142
--- ---
Total equity 7,011 7,088
------------ ----- -----
TOTAL LIABILITIES AND EQUITY $23,385 $23,640
---------------------------- ------- -------
AMEREN CORPORATION (AEE)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
Three Months Ended March 31,
----------------------------
2016 2015
---- ----
Cash Flows From Operating Activities:
Net income $107 $110
(Income) from discontinued operations, net of
taxes - -
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 210 195
Amortization of nuclear fuel 24 23
Amortization of debt issuance costs and
premium/discounts 6 5
Deferred income taxes and investment tax
credits, net 42 59
Allowance for equity funds used during
construction (8) (5)
Share-based compensation costs 6 8
Other (3) (11)
Changes in assets and liabilities (34) (73)
--- ---
Net cash provided by operating activities -
continuing operations 350 311
Net cash provided by (used in) operating
activities - discontinued operations (1) 1
--- ---
Net cash provided by operating activities 349 312
----------------------------------------- --- ---
Cash Flows From Investing Activities:
Capital expenditures (496) (417)
Nuclear fuel expenditures (21) (17)
Purchases of securities - nuclear
decommissioning trust fund (130) (84)
Sales and maturities of securities - nuclear
decommissioning trust fund 125 79
Proceeds from note receivable - Illinois
Power Marketing Company - 5
Contributions to note receivable - Illinois
Power Marketing Company - (5)
Other (2) -
--- ---
Net cash used in investing activities -
continuing operations (524) (439)
Net cash provided by investing activities -
discontinued operations 14 -
--- ---
Net cash used in investing activities (510) (439)
------------------------------------- ---- ----
Cash Flows From Financing Activities:
Dividends on common stock (103) (99)
Dividends paid to noncontrolling interest
holders (2) (2)
Short-term debt, net 280 241
Maturity of long-term debt (260) -
Employee payroll taxes related to share-
based payments (32) (12)
Other (1) -
--- ---
Net cash provided by (used in) financing
activities - continuing operations (118) 128
Net change in cash and cash equivalents (279) 1
Cash and cash equivalents at beginning of
year 292 5
--- ---
Cash and cash equivalents at end of period $13 $6
------------------------------------------ --- ---
AMEREN CORPORATION (AEE)
OPERATING STATISTICS FROM CONTINUING OPERATIONS
Three Months Ended
March 31,
---------
2016 2015
---- ----
Electric Sales -kilowatthours (in
millions):
Ameren Missouri
Residential 3,477 3,905
Commercial 3,469 3,589
Industrial 1,302 2,004
Off-system 1,891 1,724
Other 35 35
--- ---
Ameren Missouri
total 10,174 11,257
------ ------
Ameren Illinois
Residential
Power supply and
delivery service 1,224 1,419
Delivery service
only 1,680 1,837
Commercial
Power supply and
delivery service 717 745
Delivery service
only 2,118 2,181
Industrial
Power supply and
delivery service 129 473
Delivery service
only 2,702 2,599
Other 144 146
--- ---
Ameren Illinois
total 8,714 9,400
----- -----
Eliminate
affiliate sales (198) (8)
---- ---
Ameren Total from
Continuing
Operations 18,690 20,649
----------------- ------ ------
Electric Revenues (in millions):
Ameren Missouri
Residential $298 $337
Commercial 240 248
Industrial 68 96
Off-system 58 44
Other 30 17
--- ---
Ameren Missouri
total $694 $742
---- ----
Ameren Illinois
Residential
Power supply and
delivery service $120 $111
Delivery service
only 86 78
Commercial
Power supply and
delivery service 62 54
Delivery service
only 52 46
Industrial
Power supply and
delivery service 6 20
Delivery service
only 15 15
Other 51 66
--- ---
Ameren Illinois
total $392 $390
---- ----
ATXI
Transmission
services $32 $20
Eliminate
affiliate
revenues (16) (9)
--- ---
Ameren Total from
Continuing
Operations $1,102 $1,143
----------------- ------ ------
AMEREN CORPORATION (AEE)
OPERATING STATISTICS FROM CONTINUING OPERATIONS
Three Months Ended
March 31,
---------
2016 2015
---- ----
Electric Generation - kilowatthours (in millions):
Ameren Missouri 9,861 10,943
--------------- ----- ------
Fuel Cost per kilowatthour (in
cents):
Ameren Missouri 1.843 1.891
--------------- ----- -----
Gas Sales -dekatherms (in
thousands):
Ameren Missouri 7,224 7,944
Ameren Illinois 61,706 71,789
------ ------
Ameren Total 68,930 79,733
------------ ------ ------
March 31, December 31,
2016 2015
---- ----
Common Stock:
Shares
outstanding (in
millions) 242.6 242.6
Book value per
share $28.31 $28.63
Capitalization Ratios:
Common equity 47.0% 48.3%
Preferred stock 1.0% 1.0%
Debt, net of
cash 52.0% 50.7%
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SOURCE Ameren Corporation
