PR Newswire
MADISON, Wis., Aug. 1, 2019
MADISON, Wis., Aug. 1, 2019 /PRNewswire/ -- Alliant Energy Corporation (NASDAQ: LNT) today announced U.S. generally accepted accounting principles (GAAP) consolidated unaudited earnings per share (EPS) for the three months ended June 30 as follows:
| 2019 | | 2018 | ||
Utilities and Corporate Services | $0.38 | | | $0.41 | |
American Transmission Company (ATC) Holdings | 0.03 | | | 0.03 | |
Non-utility and Parent | (0.01) | | | (0.01) | |
Alliant Energy Consolidated | $0.40 | | | $0.43 | |
"Our results reflect that our continued investments in cleaner energy are delivering tangible benefits to our customers," said John Larsen, Alliant Energy Chairman, President and CEO. "With continued focus on cost management, and higher year-to-date sales due to temperatures, we are forecasting 2019 earnings toward the top half of our 2019 earnings guidance range."
Utilities and Corporate Services - Alliant Energy's Utilities and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.38 per share of GAAP EPS in the second quarter of 2019, which was $0.03 per share lower than the second quarter of 2018. The primary drivers of lower EPS were lower retail electric sales due to cooler temperatures in the second quarter 2019 compared to the same period last year, higher depreciation expense, and timing of income tax expense. These items were partially offset by higher margins due to Interstate Power and Light Company's (IPL's) and Wisconsin Power and Light Company's (WPL's) increasing rate base.
Details regarding GAAP EPS variances between the second quarters of 2019 and 2018 for Alliant Energy are as follows:
| Q2 2019 | | Q2 2018 | | Variance | |||
Utilities and Corporate Services: | | | | | | |||
Higher revenue requirements primarily due to increasing rate base | | | | | $0.17 | | ||
Estimated temperature impact on retail electric and gas sales | ($0.02) | | | $0.06 | | | (0.08) | |
Higher depreciation expense | | | | | (0.05) | | ||
Timing of income tax expense | | | | | (0.04) | | ||
Equity dilution | | | | | (0.01) | | ||
Other | | | | | (0.02) | | ||
Total Utilities and Corporate Services | | | | | ($0.03) | | ||
Non-utility and Parent: | | | | | | |||
Higher interest expense | | | | | ($0.02) | | ||
Other | | | | | 0.02 | | ||
Total Non-utility and Parent | | | | | $— | |
Higher revenue requirements primarily due to increasing rate base - In March 2019, IPL filed a request with the Iowa Utilities Board (IUB) to increase annual rates for its Iowa retail electric customers by $204 million, based on a 2020 forward-looking test period. IPL concurrently filed for interim retail electric rates based on 2018 historical data adjusted for certain known and measurable changes occurring in the first quarter of 2019. An interim retail electric rate increase of $90 million, on an annual basis, was implemented effective April 2019. Implementing interim rates does not require regulatory approval; however, interim rates are subject to refund pending the IUB's final rate review decision. IPL currently expects a final decision from the IUB in the fourth quarter of 2019 on the interim rate increase, as well as the remaining $114 million of final rates, which would be effective in the first quarter 2020. IPL recognized $0.12 per share of higher electric margins in the second quarter of 2019 due to the retail electric rate increases.
In December 2018, WPL received an order from the Public Service Commission of Wisconsin approving WPL's proposed settlement for its retail electric and gas rate review covering the 2019/2020 Test Period, effective January 1, 2019. Under the settlement, WPL's retail electric and gas base rates will not change from current levels through the end of 2020. The $61 million retail electric revenue requirement increase for 2019, resulting from increasing investments in rate base, was offset by lower fuel-related costs and federal tax reform refunds. WPL recognized $0.05 per share of higher electric margins from increasing investments in rate base in the second quarter of 2019.
Estimated temperature impact on retail electric and gas sales - The impact of cooler than normal temperatures in the second quarter of 2019 was estimated to be a $0.02 per share decrease in margins. By comparison, the impact of warmer than normal temperatures in the second quarter of 2018 was estimated to be a $0.06 per share increase in margins.
WPL's retail electric and gas rate settlement covering 2018 included an earnings sharing mechanism, whereby WPL deferred a portion of its earnings and will return that amount to its retail electric and gas customers since its annual regulatory return on common equity exceeded 10.25% during 2018. In the first half of 2018, Alliant Energy's temperature impact on retail electric and gas sales, net of WPL's earnings sharing mechanism, was estimated to be a $0.05 per share increase in margins. By comparison, the impact of colder than normal temperatures in the first half of 2019 was estimated to be a $0.03 per share increase in margins.
Timing of income tax expense - Tax expenses are recorded based on an estimated annual effective tax rate, which causes fluctuations in the amount of tax expense quarter-over-quarter. The timing variance is resolved by the end of the year.
2019 Earnings Guidance
Alliant Energy is reaffirming its EPS guidance for 2019 as follows:
Utilities and Corporate Services | $2.14 - $2.24 |
ATC Holdings | 0.11 - 0.13 |
Non-utility and Parent | (0.08) - (0.06) |
Alliant Energy Consolidated | $2.17 - $2.31 |
Drivers for Alliant Energy's 2019 earnings guidance include, but are not limited to:
The 2019 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, future changes in laws, regulations or regulatory policies, adjustments made to deferred tax assets and liabilities from valuation allowances, pending lawsuits and disputes, federal and state income tax audits and other Internal Revenue Service proceedings, or changes in GAAP and tax methods of accounting that may impact the reported results of Alliant Energy.
Earnings Conference Call
A conference call to review the second quarter 2019 results is scheduled for Friday, August 2nd at 9:00 a.m. central time. Alliant Energy Chairman, President and Chief Executive Officer John Larsen, and Senior Vice President and Chief Financial Officer Robert Durian will host the call. The conference call is open to the public and can be accessed in two ways. Interested parties may listen to the call by dialing 888-394-8218 (United States or Canada) or 323-794-2149 (International), passcode 4175543. Interested parties may also listen to a webcast at www.alliantenergy.com/investors. In conjunction with the information in this earnings announcement and the conference call, Alliant Energy posted supplemental materials on its website. A replay of the call will be available through August 9, 2019, at 888-203-1112 (United States or Canada) or 719-457-0820 (International), passcode 4175543. An archive of the webcast will be available on the Company's Web site at www.alliantenergy.com/investors for 12 months.
About Alliant Energy Corporation
Alliant Energy is the parent company of two public utility companies - Interstate Power and Light Company and Wisconsin Power and Light Company - and of Alliant Energy Finance, LLC, the parent company of Alliant Energy's non-utility operations. Alliant Energy is an energy-services provider with utility subsidiaries serving approximately 965,000 electric and 415,000 natural gas customers. Providing its customers in the Midwest with regulated electricity and natural gas service is the Company's primary focus. Alliant Energy, headquartered in Madison, Wisconsin, is a component of the S&P 500 and is traded on the Nasdaq Global Select Market under the symbol LNT. For more information, visit the Company's Web site at www.alliantenergy.com.
Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements can be identified by words such as "forecast," "expect," "guidance," or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Actual results could be materially affected by the following factors, among others:
For more information about potential factors that could affect Alliant Energy's business and financial results, refer to Alliant Energy's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), including the section therein titled "Risk Factors," and its other filings with the SEC.
Without limitation, the expectations with respect to 2019 earnings guidance in this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements. Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy's ability to achieve the estimates or other targets included in the forward-looking statements. The forward-looking statements included herein are made as of the date hereof and, except as required by law, Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
Use of Non-GAAP Financial Measures
Alliant Energy included in this press release IPL; WPL; Corporate Services; Utilities and Corporate Services; ATC Holdings; and Non-utility and Parent EPS from continuing operations for the three and six months ended June 30, 2019 and 2018. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of segment performance and trends, and provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance.
This press release references year-over-year variances in utility electric margins and utility gas margins. Utility electric margins and utility gas margins are non-GAAP financial measures that will be reported and reconciled to the most directly comparable GAAP measure, operating income, in our second quarter 2019 Form 10-Q.
Note: Unless otherwise noted, all "per share" references in this release refer to earnings per diluted share.
ALLIANT ENERGY CORPORATION | |||||||||||
EARNINGS SUMMARY (Unaudited) | |||||||||||
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The following tables provide a summary of Alliant Energy's results for the three and six months ended June 30: | |||||||||||
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EPS: | Three Months | | Six Months | ||||||||
| EPS | | EPS | ||||||||
| 2019 | | 2018 | | 2019 | | 2018 | ||||
IPL | $0.19 | | | $0.22 | | | $0.41 | | | $0.42 | |
WPL | 0.18 | | | 0.17 | | | 0.45 Werbung Mehr Nachrichten zur Alliant Energy Aktie kostenlos abonnieren
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