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Hawaiian Electric Industries, Inc.
2017 Statistical Supplement
TABLE OF CONTENTS | |
Page | |
HEI Consolidated | |
Selected Financial Information | 1 |
Consolidated Statements of Income & Comprehensive Income Information | 2 |
Consolidated Balance Sheets Information | 3 |
Consolidated Statements of Changes in Shareholders' Equity Information | 4 |
Consolidated Statements of Cash Flows Information | 5 |
Consolidated Capital Structure | 7 |
GAAP and Non-GAAP (Core) Earnings and Return on Average Common Equity | 8 |
Hawaiian Electric Company | |
Selected Financial Information | 9 |
Consolidated Statements of Income and Retained Earnings Information | 10 |
Consolidated Balance Sheets Information | 11 |
Consolidated Statements of Cash Flows Information | 12 |
Cumulative Preferred Stock Not Subject to Mandatory Redemption | 13 |
Long-term Debt | 14 |
Customer, Sales and Revenue Information | 16 |
Power Supply Information | 18 |
American Savings Bank | |
Selected Information | 20 |
Statements of Income Information | 21 |
Balance Sheets Information | 22 |
Other | |
State of Hawaii Information | 23 |
Appendix - Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures | 24 |
i
SELECTED FINANCIAL INFORMATION | |||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||||||
Results of operations | |||||||||||||||||||||
Revenues | $ | 2,555,625 | $ | 2,380,654 | $ | 2,602,982 | $ | 3,239,542 | $ | 3,238,470 | |||||||||||
Net income for common stock | 165,297 | 248,256 | 159,877 | 168,129 | 161,709 | ||||||||||||||||
Basic earnings per common share | 1.52 | 2.30 | 1.50 | 1.65 | 1.63 | ||||||||||||||||
Diluted earnings per common share | 1.52 | 2.29 | 1.50 | 1.63 | 1.62 | ||||||||||||||||
Dividends per common share | 1.24 | 1.24 | 1.24 | 1.24 | 1.24 | ||||||||||||||||
Operating income (loss) | |||||||||||||||||||||
Electric utility | $ | 257,521 | $ | 284,468 | $ | 274,116 | $ | 275,768 | $ | 245,513 | |||||||||||
Bank | 98,716 | 87,352 | 83,812 | 79,295 | 89,146 | ||||||||||||||||
Other | (17,946 | ) | (23,645 | ) | (35,375 | ) | (22,463 | ) | (17,151 | ) | |||||||||||
$ | 338,291 | $ | 348,175 | $ | 322,553 | $ | 332,600 | $ | 317,508 | ||||||||||||
Assets 1 | |||||||||||||||||||||
Electric utility | $ | 6,196,281 | $ | 5,975,428 | $ | 5,672,210 | $ | 5,550,021 | $ | 5,058,065 | |||||||||||
Bank | 6,798,659 | 6,421,357 | 6,014,755 | 5,566,222 | 5,244,686 | ||||||||||||||||
Other | 104,888 | 28,721 | 95,053 | 60,900 | 29,170 | ||||||||||||||||
$ | 13,099,828 | $ | 12,425,506 | $ | 11,782,018 | $ | 11,177,143 | $ | 10,331,921 | ||||||||||||
Capital structure 1, 2 | |||||||||||||||||||||
Short-term borrowings - other than bank | $ | 117,945 | $ | — | $ | 103,063 | $ | 118,972 | $ | 105,482 | |||||||||||
Long-term debt, net - other than bank | 1,683,797 | 1,619,019 | 1,578,368 | 1,498,547 | 1,483,960 | ||||||||||||||||
Preferred stock of subsidiaries | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||||||||
Common stock equity | 2,097,386 | 2,066,753 | 1,927,640 | 1,790,573 | 1,726,406 | ||||||||||||||||
$ | 3,933,421 | $ | 3,720,065 | $ | 3,643,364 | $ | 3,442,385 | $ | 3,350,141 | ||||||||||||
Capital structure ratios 1, 2 | |||||||||||||||||||||
Short-term borrowings - other than bank | 3.0 | % | -- % | 2.9 | % | 3.5 | % | 3.2 | % | ||||||||||||
Long-term debt, net - other than bank | 42.8 | 43.5 | 43.3 | 43.5 | 44.3 | ||||||||||||||||
Preferred stock of subsidiaries | 0.9 | 0.9 | 0.9 | 1.0 | 1.0 | ||||||||||||||||
Common stock equity | 53.3 | 55.6 | 52.9 | 52.0 | 51.5 | ||||||||||||||||
100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||||||||
Key financial ratios | |||||||||||||||||||||
Market price to book value per common share 1 | 188 | % | 174 | % | 161 | % | 192 | % | 153 | % | |||||||||||
Price earnings ratio 3 | 23.8x | 14.4x | 19.3x | 20.5x | 16.1x | ||||||||||||||||
Return on average common equity | 7.9 | % | 12.4 | % | 8.6 | % | 9.6 | % | 9.7 | % | |||||||||||
Indicated annual yield 1 | 3.4 | % | 3.7 | % | 4.3 | % | 3.7 | % | 4.8 | % | |||||||||||
Dividend payout ratio | 82 | % | 54 | % | 82 | % | 75 | % | 76 | % | |||||||||||
Full-time employees | |||||||||||||||||||||
Hawaiian Electric and its subsidiaries | 2,724 | 2,662 | 2,727 | 2,759 | 2,764 | ||||||||||||||||
ASB | 1,115 | 1,093 | 1,152 | 1,162 | 1,159 | ||||||||||||||||
Consolidated HEI | 3,880 | 3,796 | 3,918 | 3,965 | 3,966 | ||||||||||||||||
Note: | This report should be read in conjunction with HEI’s Form 10-K for each year. Financial data for periods prior to January 1, | ||||||||||||||||||||
2016 has been updated to reflect the retrospective adoption of Accounting Standards Update (ASU) No. 2015-03. | |||||||||||||||||||||
1 | At December 31. | ||||||||||||||||||||
2 | Excludes ASB's deposit liabilities and other borrowings. | ||||||||||||||||||||
3 | Calculated using December 31 market price per common share divided by diluted earnings per common share. |
1
CONSOLIDATED STATEMENTS OF INCOME INFORMATION | |||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Electric utility | $ | 2,257,566 | $ | 2,094,368 | $ | 2,335,166 | $ | 2,987,323 | $ | 2,980,172 | |||||||||||
Bank | 297,640 | 285,924 | 267,733 | 252,497 | 258,147 | ||||||||||||||||
Other | 419 | 362 | 83 | (278 | ) | 151 | |||||||||||||||
Total revenues | 2,555,625 | 2,380,654 | 2,602,982 | 3,239,542 | 3,238,470 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Electric utility | 2,000,045 | 1,809,900 | 2,061,050 | 2,711,555 | 2,734,659 | ||||||||||||||||
Bank | 198,924 | 198,572 | 183,921 | 173,202 | 169,001 | ||||||||||||||||
Other | 18,365 | 24,007 | 35,458 | 22,185 | 17,302 | ||||||||||||||||
Total expenses | 2,217,334 | 2,032,479 | 2,280,429 | 2,906,942 | 2,920,962 | ||||||||||||||||
Operating income (loss) | |||||||||||||||||||||
Electric utility | 257,521 | 284,468 | 274,116 | 275,768 | 245,513 | ||||||||||||||||
Bank | 98,716 | 87,352 | 83,812 | 79,295 | 89,146 | ||||||||||||||||
Other | (17,946 | ) | (23,645 | ) | (35,375 | ) | (22,463 | ) | (17,151 | ) | |||||||||||
Total operating income | 338,291 | 348,175 | 322,553 | 332,600 | 317,508 | ||||||||||||||||
Merger termination fee | — | 90,000 | — | — | — | ||||||||||||||||
Interest expense, net—other than on deposit liabilities | |||||||||||||||||||||
and other bank borrowings | (78,972 | ) | (75,803 | ) | (77,150 | ) | (76,352 | ) | (75,479 | ) | |||||||||||
Allowance for borrowed funds used during construction | 4,778 | 3,144 | 2,457 | 2,579 | 2,246 | ||||||||||||||||
Allowance for equity funds used during construction | 12,483 | 8,325 | 6,928 | 6,771 | 5,561 | ||||||||||||||||
Income before income taxes | 276,580 | 373,841 | 254,788 | 265,598 | 249,836 | ||||||||||||||||
Income taxes | 109,393 | 123,695 | 93,021 | 95,579 | 86,237 | ||||||||||||||||
Net income | 167,187 | 250,146 | 161,767 | 170,019 | 163,599 | ||||||||||||||||
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | 1,890 | 1,890 | ||||||||||||||||
Net income for common stock | $ | 165,297 | $ | 248,256 | $ | 159,877 | $ | 168,129 | $ | 161,709 | |||||||||||
Basic earnings per common share | $ | 1.52 | $ | 2.30 | $ | 1.50 | $ | 1.65 | $ | 1.63 | |||||||||||
Diluted earnings per common share | $ | 1.52 | $ | 2.29 | $ | 1.50 | $ | 1.63 | $ | 1.62 | |||||||||||
Weighted-average number of common shares outstanding | 108,749 | 108,102 | 106,418 | 101,968 | 98,968 | ||||||||||||||||
Weighted-average shares assuming dilution | 108,933 | 108,309 | 106,721 | 102,937 | 99,623 | ||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME INFORMATION | |||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net income for common stock | $ | 165,297 | $ | 248,256 | $ | 159,877 | $ | 168,129 | $ | 161,709 | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Net unrealized gains (losses) on available-for-sale investment securities: | |||||||||||||||||||||
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of taxes | (4,370 | ) | (5,699 | ) | (2,334 | ) | 5,840 | (13,686 | ) | ||||||||||||
Reclassification adjustment for net realized gains included in net income, net of taxes | — | (360 | ) | — | (1,715 | ) | (738 | ) | |||||||||||||
Derivatives qualified as cash flow hedges: | |||||||||||||||||||||
Effective portion of foreign currency hedge net unrealized losses, net of tax benefits | — | (281 | ) | — | — | — | |||||||||||||||
Reclassification adjustment to net income, net of taxes | 454 | (119 | ) | 235 | 236 | 235 | |||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Net gains (losses) arising during the period, net of taxes | 65,531 | (43,510 | ) | 5,889 | (234,166 | ) | 223,177 | ||||||||||||||
Adjustment for amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 15,737 | 14,518 | 22,465 | 11,344 | 23,280 | ||||||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (78,724 | ) | 28,584 | (25,139 | ) | 207,833 | (222,595 | ) | |||||||||||||
Other comprehensive income (loss), net of taxes | (1,372 | ) | (6,867 | ) | 1,116 | (10,628 | ) | 9,673 | |||||||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ | 163,925 | $ | 241,389 | $ | 160,993 | $ | 157,501 | $ | 171,382 | |||||||||||
Notes: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. | |||||||||||||||||||||
A reconciliation of GAAP to non-GAAP (core) measures is located in the Appendix. |
2
CONSOLIDATED BALANCE SHEETS INFORMATION | |||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 261,881 | $ | 278,452 | $ | 300,478 | $ | 175,542 | $ | 220,036 | |||||||||||
Accounts receivable and unbilled revenues, net | 263,209 | 237,950 | 242,766 | 313,696 | 346,785 | ||||||||||||||||
Available-for-sale investment securities, at fair value | 1,401,198 | 1,105,182 | 820,648 | 550,394 | 529,007 | ||||||||||||||||
Held-to-maturity investment securities, at amortized cost | 44,515 | — | — | — | — | ||||||||||||||||
Stock in Federal Home Loan Bank, at cost | 9,706 | 11,218 | 10,678 | 69,302 | 92,546 | ||||||||||||||||
Loans receivable, net | 4,628,381 | 4,701,977 | 4,570,412 | 4,397,457 | 4,115,415 | ||||||||||||||||
Property, plant and equipment, net | 5,025,916 | 4,603,465 | 4,377,658 | 4,148,774 | 3,865,514 | ||||||||||||||||
Regulatory assets | 869,297 | 957,451 | 896,731 | 905,264 | 575,924 | ||||||||||||||||
Other | 513,535 | 447,621 | 480,457 | 534,524 | 504,504 | ||||||||||||||||
Goodwill | 82,190 | 82,190 | 82,190 | 82,190 | 82,190 | ||||||||||||||||
Total assets | $ | 13,099,828 | $ | 12,425,506 | $ | 11,782,018 | $ | 11,177,143 | $ | 10,331,921 | |||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Accounts, interest and dividends payable | $ | 219,551 | $ | 168,504 | $ | 164,565 | $ | 211,761 | $ | 239,047 | |||||||||||
Deposit liabilities | 5,890,597 | 5,548,929 | 5,025,254 | 4,623,415 | 4,372,477 | ||||||||||||||||
Short-term borrowings - other than bank | 117,945 | — | 103,063 | 118,972 | 105,482 | ||||||||||||||||
Other bank borrowings | 190,859 | 192,618 | 328,582 | 290,656 | 244,514 | ||||||||||||||||
Long-term debt, net - other than bank | 1,683,797 | 1,619,019 | 1,578,368 | 1,498,547 | 1,483,960 | ||||||||||||||||
Deferred income taxes | 388,430 | 728,806 | 680,877 | 633,570 | 530,786 | ||||||||||||||||
Regulatory liabilities | 880,770 | 410,693 | 371,543 | 344,849 | 349,299 | ||||||||||||||||
Contributions in aid of construction | 565,668 | 543,525 | 506,087 | 466,432 | 432,894 | ||||||||||||||||
Other | 1,030,532 | 1,112,366 | 1,061,746 | 1,164,075 | 812,763 | ||||||||||||||||
Total liabilities | 10,968,149 | 10,324,460 | 9,820,085 | 9,352,277 | 8,571,222 | ||||||||||||||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||||||||
Shareholders' equity | |||||||||||||||||||||
Preferred stock | — | — | — | — | — | ||||||||||||||||
Common stock | 1,662,491 | 1,660,910 | 1,629,136 | 1,521,297 | 1,488,126 | ||||||||||||||||
Retained earnings | 476,836 | 438,972 | 324,766 | 296,654 | 255,030 | ||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | (41,941 | ) | (33,129 | ) | (26,262 | ) | (27,378 | ) | (16,750 | ) | |||||||||||
Total shareholders' equity | 2,097,386 | 2,066,753 | 1,927,640 | 1,790,573 | 1,726,406 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 13,099,828 | $ | 12,425,506 | $ | 11,782,018 | $ | 11,177,143 | $ | 10,331,921 | |||||||||||
Notes: | See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. Periods prior to January 1, | ||||||||||||||||||||
2016 reflect the retrospective adoption of ASU No. 2015-03. |
3
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY INFORMATION | ||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | Accumulated | |||||||||||||||||||
Unaudited | other | |||||||||||||||||||
Common stock | Retained | comprehensive | ||||||||||||||||||
(in thousands, except per share amounts) | Shares | Amount | earnings | income (loss) | Total | |||||||||||||||
Balance, December 31, 2012 | 97,928 | $ | 1,403,484 | $ | 215,947 | $ | (26,423 | ) | $ | 1,593,008 | ||||||||||
Net income for common stock | — | — | 161,709 | — | 161,709 | |||||||||||||||
Other comprehensive income, net of taxes | — | — | — | 9,673 | 9,673 | |||||||||||||||
Issuance of common stock: | ||||||||||||||||||||
Partial settlement of equity forward | 1,300 | 33,409 | — | — | 33,409 | |||||||||||||||
Dividend reinvestment and stock purchase plan | 1,612 | 41,692 | — | — | 41,692 | |||||||||||||||
Retirement savings and other plans | 420 | 9,203 | — | — | 9,203 | |||||||||||||||
Expenses and other, net | — | 338 | — | — | 338 | |||||||||||||||
Common stock dividends | — | — | (122,626 | ) | — | (122,626 | ) | |||||||||||||
Balance, December 31, 2013 | 101,260 | 1,488,126 | 255,030 | (16,750 | ) | 1,726,406 | ||||||||||||||
Net income for common stock | — | — | 168,129 | — | 168,129 | |||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | (10,628 | ) | (10,628 | ) | |||||||||||||
Issuance of common stock: | ||||||||||||||||||||
Partial settlement of equity forward | 1,000 | 24,873 | — | — | 24,873 | |||||||||||||||
Dividend reinvestment and stock purchase plan | 95 | 2,461 | — | — | 2,461 | |||||||||||||||
Retirement savings and other plans | 210 | 6,816 | — | — | 6,816 | |||||||||||||||
Expenses and other, net | — | (979 | ) | — | — | (979 | ) | |||||||||||||
Common stock dividends | — | — | (126,505 | ) | — | (126,505 | ) | |||||||||||||
Balance, December 31, 2014 | 102,565 | 1,521,297 | 296,654 | (27,378 | ) | 1,790,573 | ||||||||||||||
Net income for common stock | — | — | 159,877 | — | 159,877 | |||||||||||||||
Other comprehensive income, net of taxes | — | — | — | 1,116 | 1,116 | |||||||||||||||
Issuance of common stock: | ||||||||||||||||||||
Partial settlement of equity forward | 4,700 | 109,183 | — | — | 109,183 | |||||||||||||||
Retirement savings and other plans | 195 | 5,578 | — | — | 5,578 | |||||||||||||||
Expenses and other, net | — | (6,922 | ) | — | — | (6,922 | ) | |||||||||||||
Common stock dividends | — | — | (131,765 | ) | — | (131,765 | ) | |||||||||||||
Balance, December 31, 2015 | 107,460 | 1,629,136 | 324,766 | (26,262 | ) | 1,927,640 | ||||||||||||||
Net income for common stock | — | — | 248,256 | — | 248,256 | |||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | (6,867 | ) | (6,867 | ) | |||||||||||||
Issuance of common stock: | ||||||||||||||||||||
Dividend reinvestment and stock purchase plan | 859 | 26,844 | — | — | 26,844 | |||||||||||||||
Retirement savings and other plans | 264 | 9,298 | — | — | 9,298 | |||||||||||||||
Expenses and other, net | — | (4,368 | ) | — | — | (4,368 | ) | |||||||||||||
Common stock dividends | — | — | (134,050 | ) | — | (134,050 | ) | |||||||||||||
Balance, December 31, 2016 | 108,583 | 1,660,910 | 438,972 | (33,129 | ) | 2,066,753 | ||||||||||||||
Net income for common stock | — | — | 165,297 | — | 165,297 | |||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | (1,372 | ) | (1,372 | ) | |||||||||||||
Reclass of AOCI for tax rate reduction impact | — | — | 7,440 | (7,440 | ) | — | ||||||||||||||
Issuance of common stock: | ||||||||||||||||||||
Retirement savings and other plans | 205 | 4,664 | — | — | 4,664 | |||||||||||||||
Expenses and other, net | — | (3,083 | ) | — | — | (3,083 | ) | |||||||||||||
Common stock dividends | — | — | (134,873 | ) | — | (134,873 | ) | |||||||||||||
Balance, December 31, 2017 | 108,788 | $ | 1,662,491 | $ | 476,836 | $ | (41,941 | ) | $ | 2,097,386 | ||||||||||
Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. |
4
CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION | ||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | ||||||||||||||
Unaudited | ||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | |||||||||||
(in thousands) | ||||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 167,187 | $ | 250,146 | $ | 161,767 | ||||||||
Adjustments to reconcile net income | ||||||||||||||
to net cash provided by operating activities | ||||||||||||||
Depreciation of property, plant and equipment | 200,658 | 194,273 | 183,966 | |||||||||||
Other amortization | 21,340 | 10,473 | 11,619 | |||||||||||
Provision for loan losses | 10,901 | 16,763 | 6,275 | |||||||||||
Impairment of utility assets | — | — | 6,021 | |||||||||||
Loans receivable originated and purchased, held for sale | (115,104 | ) | (236,769 | ) | (268,279 | ) | ||||||||
Proceeds from sale of loans receivable, held for sale | 127,951 | 236,062 | 275,296 | |||||||||||
Deferred income taxes | 37,835 | 47,118 | 41,432 | |||||||||||
Share-based compensation expense | 5,404 | 4,789 | 6,542 | |||||||||||
Allowance for equity funds used during construction | (12,483 | ) | (8,325 | ) | (6,928 | ) | ||||||||
Other | (3,324 | ) | (12,422 | ) | 1,672 | |||||||||
Changes in assets and liabilities | ||||||||||||||
Decrease (increase) in accounts receivable and unbilled revenues, net | (12,875 | ) | (898 | ) | 62,304 | |||||||||
Increase (decrease) in accounts, interest and dividends payable | 34,985 | (9,643 | ) | (52,663 | ) | |||||||||
Change in other assets and liabilities | (42,034 | ) | 4,091 | (72,166 | ) | |||||||||
Net cash provided by operating activities | 420,441 | 495,658 | 356,858 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Available-for-sale investment securities purchased | (528,379 | ) | (533,956 | ) | (429,262 | ) | ||||||||
Principal repayments on available-for-sale investment securities | 220,231 | 219,845 | 153,271 | |||||||||||
Proceeds from sale of available-for-sale investment securities | — | 16,423 | — | |||||||||||
Purchases of held-to-maturity investment securities | (44,515 | ) | — | — | ||||||||||
Purchase of stock from Federal Home Loan Bank | (2,868 | ) | (7,773 | ) | (1,600 | ) | ||||||||
Redemption of stock from Federal Home Loan Bank | 4,380 | 7,233 | 60,223 | |||||||||||
Net decrease (increase) in loans held for investment | 15,887 | (194,042 | ) | (181,343 | ) | |||||||||
Proceeds from sale of commercial loans | 36,760 | 52,299 | — | |||||||||||
Proceeds from sale of real estate acquired in settlement of loans | 1,019 | 829 | 1,329 | |||||||||||
Proceeds from sale of real estate held for sale | — | 1,764 | 7,283 | |||||||||||
Capital expenditures | (495,187 | ) | (330,043 | ) | (363,804 | ) | ||||||||
Contributions in aid of construction | 64,733 | 30,100 | 40,239 | |||||||||||
Contributions to low income housing investments | (17,505 | ) | — | — | ||||||||||
Acquisition of business | (76,323 | ) | — | — | ||||||||||
Other | 6,468 | 856 | 7,940 | |||||||||||
Net cash used in investing activities | $ | (815,299 | ) | $ | (736,465 | ) | $ | (705,724 | ) | |||||
(Continued on next page) |
5
CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION (Continued) | ||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | ||||||||||||||
Unaudited | ||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | |||||||||||
(in thousands) | ||||||||||||||
Cash flows from financing activities | ||||||||||||||
Net increase in deposit liabilities | $ | 341,668 | $ | 523,675 | $ | 401,839 | ||||||||
Net increase (decrease) in short-term borrowings | ||||||||||||||
with original maturities of three months or less | 67,992 | (103,063 | ) | (15,909 | ) | |||||||||
Proceeds from issuance of short-term debt | 125,000 | — | — | |||||||||||
Repayment of short-term debt | (75,000 | ) | — | — | ||||||||||
Net increase (decrease) in retail repurchase agreements | 61,776 | (43,601 | ) | 37,925 | ||||||||||
Proceeds from other bank borrowings | 59,500 | 180,835 | 50,000 | |||||||||||
Repayments of other bank borrowings | (123,034 | ) | (272,902 | ) | (50,000 | ) | ||||||||
Proceeds from issuance of long-term debt | 532,325 | 115,000 | 80,000 | |||||||||||
Repayment of long-term debt and funds transferred for redemption | ||||||||||||||
of special purpose revenue bonds | (465,000 | ) | (75,000 | ) | — | |||||||||
Withheld shares for employee taxes on vested share-based compensation | (3,828 | ) | (2,416 | ) | (3,260 | ) | ||||||||
Net proceeds from issuance of common stock | — | 13,220 | 104,435 | |||||||||||
Common stock dividends | (134,873 | ) | (117,274 | ) | (131,765 | ) | ||||||||
Preferred stock dividends of subsidiaries | (1,890 | ) | (1,890 | ) | (1,890 | ) | ||||||||
Other | (6,349 | ) | 2,197 | 2,427 | ||||||||||
Net cash provided by financing activities | 378,287 | 218,781 | 473,802 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (16,571 | ) | (22,026 | ) | 124,936 | |||||||||
Cash and cash equivalents, January 1 | 278,452 | 300,478 | 175,542 | |||||||||||
Cash and cash equivalents, December 31 | $ | 261,881 | $ | 278,452 | $ | 300,478 | ||||||||
Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. |
6
CONSOLIDATED CAPITAL STRUCTURE | ||||||||||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Short-term borrowings - other than bank 1 | $ | 117,945 | $ | — | $ | 103,063 | $ | 118,972 | $ | 105,482 | ||||||||||||||||||
Long-term debt - other than bank 1 | ||||||||||||||||||||||||||||
Long-term debt of electric utility subsidiaries 2 | 1,368,479 | 1,319,260 | 1,278,702 | 1,199,025 | 1,209,583 | |||||||||||||||||||||||
Hamakua Energy, LLC 4.02% notes, due 2030 | 67,325 | — | — | — | — | |||||||||||||||||||||||
HEI 2.99% term loan, due 2022 | 150,000 | — | — | — | — | |||||||||||||||||||||||
HEI 5.67% senior notes, due 2021 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | |||||||||||||||||||||||
HEI 3.99% senior notes, due 2023 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | |||||||||||||||||||||||
HEI term loan LIBOR + .75%, paid in 2017 | — | 125,000 | 125,000 | 125,000 | — | |||||||||||||||||||||||
HEI term loan LIBOR + .75%, paid in 2017 | — | 75,000 | — | — | — | |||||||||||||||||||||||
HEI 4.41% senior notes, paid in 2016 | — | — | 75,000 | 75,000 | 75,000 | |||||||||||||||||||||||
HEI 6.51% medium-term notes, Series C paid in 2014 | — | — | — | — | 100,000 | |||||||||||||||||||||||
Less unamortized debt issuance cost | (2,007 | ) | (241 | ) | (334 | ) | (478 | ) | (623 | ) | ||||||||||||||||||
1,683,797 | 1,619,019 | 1,578,368 | 1,498,547 | 1,483,960 | ||||||||||||||||||||||||
Preferred stock of subsidiaries - | ||||||||||||||||||||||||||||
not subject to mandatory redemption | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | |||||||||||||||||||||||
Shareholders' equity | ||||||||||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||||||||||
Common stock | 1,662,491 | 1,660,910 | 1,629,136 | 1,521,297 | 1,488,126 | |||||||||||||||||||||||
Retained earnings | 476,836 | 438,972 | 324,766 | 296,654 | 255,030 | |||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | (41,941 | ) | (33,129 | ) | (26,262 | ) | (27,378 | ) | (16,750 | ) | ||||||||||||||||||
2,097,386 | 2,066,753 | 1,927,640 | 1,790,573 | 1,726,406 | ||||||||||||||||||||||||
$ | 3,933,421 | $ | 3,720,065 | $ | 3,643,364 | $ | 3,442,385 | $ | 3,350,141 | |||||||||||||||||||
LONG-TERM DEBT MATURITIES as of December 31, 2017 | ||||||||||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Long-term debt - other than bank 1 | ||||||||||||||||||||||||||||
Electric utilities2 | $ | 50,000 | $ | — | $ | 96,000 | $ | — | $ | 52,000 | $ | 1,178,546 | $ | 1,376,546 | ||||||||||||||
HEI | — | — | — | 50,000 | 150,000 | 50,000 | 250,000 | |||||||||||||||||||||
Hamakua Energy, LLC | 3,887 | 3,739 | 3,669 | 3,864 | 4,146 | 48,020 | 67,325 | |||||||||||||||||||||
Less unamortized debt issuance cost | (10,074 | ) | ||||||||||||||||||||||||||
$ | 53,887 | $ | 3,739 | $ | 99,669 | $ | 53,864 | $ | 206,146 | $ | 1,276,566 | $ | 1,683,797 | |||||||||||||||
Note: | See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. Periods prior to January 1, 2016 | |||||||||||||||||||||||||||
reflect the retrospective adoption of ASU No. 2015-03. | ||||||||||||||||||||||||||||
1 | Excludes deposit liabilities, other bank borrowings and intercompany borrowings. | |||||||||||||||||||||||||||
2 | See pages 14 and 15 for additional information. |
7
GAAP EARNINGS AND RETURN ON AVERAGE COMMON EQUITY BY COMPANY | |||||||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Net income (loss) for common stock by company | |||||||||||||||||||||||||
Electric utilities | |||||||||||||||||||||||||
Hawaiian Electric | $ | 81,894 | $ | 99,926 | $ | 92,794 | $ | 96,677 | $ | 81,519 | |||||||||||||||
Hawaii Electric Light | 20,146 | 21,255 | 20,755 | 18,689 | 20,136 | ||||||||||||||||||||
Maui Electric | 17,911 | 21,136 | 22,165 | 22,275 | 21,277 | ||||||||||||||||||||
Other subsidiaries | — | — | — | — | (3 | ) | |||||||||||||||||||
Utilities consolidated | 119,951 | 142,317 | 135,714 | 137,641 | 122,929 | ||||||||||||||||||||
ASB consolidated | 66,997 | 57,279 | 54,730 | 51,301 | 57,727 | ||||||||||||||||||||
HEI and other | (21,651 | ) | 48,660 | (30,567 | ) | (20,813 | ) | (18,947 | ) | ||||||||||||||||
Consolidated HEI | $ | 165,297 | $ | 248,256 | $ | 159,877 | $ | 168,129 | $ | 161,709 | |||||||||||||||
Diluted earnings per common share | $ | 1.52 | $ | 2.29 | $ | 1.50 | $ | 1.63 | $ | 1.62 | |||||||||||||||
Return on average common equity by company (simple average) | |||||||||||||||||||||||||
Electric utilities | |||||||||||||||||||||||||
Hawaiian Electric | 6.5 | % | 8.3 | % | 8.0 | % | 8.7 | % | 8.0 | % | |||||||||||||||
Hawaii Electric Light | 7.0 | 7.3 | 7.2 | 6.7 | 7.4 | ||||||||||||||||||||
Maui Electric | 6.8 | 8.1 | 8.5 | 8.8 | 8.9 | ||||||||||||||||||||
Utilities consolidated | 6.6 | 8.1 | 8.0 | 8.4 | 8.0 | ||||||||||||||||||||
ASB consolidated | 11.3 | 10.1 | 10.0 | 9.7 | 11.3 | ||||||||||||||||||||
Consolidated HEI | 7.9 | % | 12.4 | % | 8.6 | % | 9.6 | % | 9.7 | % | |||||||||||||||
NON-GAAP (CORE) EARNINGS AND RETURN ON AVERAGE COMMON EQUITY 1 | |||||||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||||||||||||
Core net income | $ | 179.5 | $ | 190.1 | $ | 175.7 | $ | 173.0 | $ | 161.7 | |||||||||||||||
Core diluted earnings per common share | $ | 1.65 | $ | 1.75 | $ | 1.65 | $ | 1.68 | $ | 1.62 | |||||||||||||||
Adjusted return on average common | |||||||||||||||||||||||||
equity (simple average) | 8.6 | % | 9.5 | % | 9.4 | % | 9.8 | % | 9.7 | % | |||||||||||||||
Note: Columns may not foot due to rounding | |||||||||||||||||||||||||
1 | See the reconciliation of GAAP to non-GAAP measures in the Appendix. |
8
SELECTED FINANCIAL INFORMATION | ||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||||
CAPITAL STRUCTURE1 | ||||||||||||||||||||||
Long-term debt, net, including current portion2 | $ | 1,368,479 | $ | 1,319,260 | $ | 1,278,702 | $ | 1,199,025 | $ | 1,209,583 | ||||||||||||
Preferred stock | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | |||||||||||||||||
Common stock equity | 1,845,283 | 1,799,787 | 1,728,325 | 1,682,144 | 1,593,564 | |||||||||||||||||
$ | 3,248,055 | $ | 3,153,340 | $ | 3,041,320 | $ | 2,915,462 | $ | 2,837,440 | |||||||||||||
CAPITAL STRUCTURE RATIOS (%) 1,2 | ||||||||||||||||||||||
Long-term debt, net, including current portion | 42.1 | 41.8 | 42.1 | 41.1 | 42.6 | |||||||||||||||||
Preferred stock | 1.1 | 1.1 | 1.1 | 1.2 | 1.2 | |||||||||||||||||
Common stock equity | 56.8 | 57.1 | 56.8 | 57.7 | 56.2 | |||||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||||
KEY FINANCIAL RATIOS (%) | ||||||||||||||||||||||
Ratio of earnings to fixed charges (SEC method) | 3.64 | 4.11 | 3.97 | 4.04 | 3.72 | |||||||||||||||||
Authorized return on rate base 3 | ||||||||||||||||||||||
Hawaiian Electric | 7.57 | 8.11 | 8.11 | 8.11 | 8.11 | |||||||||||||||||
Hawaii Electric Light | 7.80 | 8.31 | 8.31 | 8.31 | 8.31 | |||||||||||||||||
Maui Electric | 7.34 | 7.34 | 7.34 | 7.34 | 7.34 | |||||||||||||||||
Earned rate-making return on simple average rate base 4 | ||||||||||||||||||||||
Hawaiian Electric | 6.08 | 7.48 | 7.39 | 7.76 | 7.26 | |||||||||||||||||
Hawaii Electric Light | 6.54 | 6.73 | 6.58 | 6.28 | 6.77 | |||||||||||||||||
Maui Electric | 6.10 | 6.99 | 7.19 | 7.48 | 7.24 | |||||||||||||||||
Authorized return on simple average common equity 3 | ||||||||||||||||||||||
Hawaiian Electric | 9.50 | 10.00 | 10.00 | 10.00 | 10.00 | |||||||||||||||||
Hawaii Electric Light | 9.50 | 10.00 | 10.00 | 10.00 | 10.00 | |||||||||||||||||
Maui Electric | 9.00 | 9.00 | 9.00 | 9.00 | 9.00 | |||||||||||||||||
Earned rate-making return on simple average common equity 5 | ||||||||||||||||||||||
Hawaiian Electric | 6.83 | 9.46 | 9.20 | 9.85 | 8.95 | |||||||||||||||||
Hawaii Electric Light | 7.30 | 7.61 | 7.49 | 6.65 | 7.46 | |||||||||||||||||
Maui Electric | 6.84 | 8.34 | 8.76 | 9.47 | 9.35 | |||||||||||||||||
Book return on simple average common equity 6 | ||||||||||||||||||||||
Hawaiian Electric | 6.46 | 8.26 | 8.02 | 8.74 | 7.98 | |||||||||||||||||
Hawaii Electric Light | 6.97 | 7.28 | 7.22 | 6.71 | 7.41 | |||||||||||||||||
Maui Electric | 6.76 | 8.08 | 8.52 | 8.81 | 8.91 | |||||||||||||||||
RATE BASE (in millions, simple average) | ||||||||||||||||||||||
Hawaiian Electric | $ | 1,975 | 7 | $ | 1,879 | $ | 1,814 | $ | 1,756 | $ | 1,662 | |||||||||||
Hawaii Electric Light | 490 | 7 | 482 | 479 | 476 | 464 | ||||||||||||||||
Maui Electric | 438 | 7 | 431 | 440 | 439 | 421 | ||||||||||||||||
$ | 2,903 | $ | 2,792 | $ | 2,733 | $ | 2,671 | $ | 2,547 | |||||||||||||
DEPRECIATION AND AFUDC (%) | ||||||||||||||||||||||
Composite annual depreciation rate | 3.2 | 3.2 | 3.2 | 3.1 | 3.1 | |||||||||||||||||
Accumulated depreciation as percent of gross plant1 | 34.0 | 34.5 | 34.6 | 35.0 | 35.8 | |||||||||||||||||
Weighted-average AFUDC rate | 7.7 | 7.6 | 7.6 | 7.7 | 7.6 | |||||||||||||||||
1 | At December 31. | |||||||||||||||||||||
2 | Financial data for periods prior to January 1, 2016 has been updated to reflect the retrospective adoption of ASU No. 2015-03. | |||||||||||||||||||||
3 | Reflects latest final decision and order as of the end of the respective years, with the exception of Hawaiian Electric and Hawaiian Electric Light's | |||||||||||||||||||||
2017 authorized returns which reflect the latest interim decision and orders. | ||||||||||||||||||||||
4 | Based on recorded income and average rate base, both adjusted for items not included in determining electric rates. | |||||||||||||||||||||
5 | This calculation is based on recorded income and the average common equity capitalization of the average rate base, both adjusted for items not | |||||||||||||||||||||
included in determining electric rates. | ||||||||||||||||||||||
6 | Based on recorded net income divided by average common equity, simple average method. | |||||||||||||||||||||
7 | The 12/31/17 rate base amounts for Hawaiian Electric, Hawaii Electric Light and Maui Electric were $2,027, $495 and $449, respectively. |
9
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS INFORMATION | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | 2,257,566 | $ | 2,094,368 | $ | 2,335,166 | $ | 2,987,323 | $ | 2,980,172 | |||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 587,768 | 454,704 | 654,600 | 1,131,685 | 1,185,552 | ||||||||||||||||
Purchased power | 586,634 | 562,740 | 594,096 | 722,008 | 710,681 | ||||||||||||||||
Other operation and maintenance | 417,910 | 405,533 | 413,089 | 410,612 | 403,270 | ||||||||||||||||
Depreciation | 192,784 | 187,061 | 177,380 | 166,387 | 154,025 | ||||||||||||||||
Taxes, other than income taxes | 214,949 | 199,862 | 221,885 | 280,863 | 281,131 | ||||||||||||||||
Total expenses | 2,000,045 | 1,809,900 | 2,061,050 | 2,711,555 | 2,734,659 | ||||||||||||||||
Operating income | 257,521 | 284,468 | 274,116 | 275,768 | 245,513 | ||||||||||||||||
Allowance for equity funds used during construction | 12,483 | 8,325 | 6,928 | 6,771 | 5,561 | ||||||||||||||||
Interest expense and other charges, net | (69,637 | ) | (66,824 | ) | (66,370 | ) | (64,757 | ) | (59,279 | ) | |||||||||||
Allowance for borrowed funds used during construction | 4,778 | 3,144 | 2,457 | 2,579 | 2,246 | ||||||||||||||||
Income before income taxes | 205,145 | 229,113 | 217,131 | 220,361 | 194,041 | ||||||||||||||||
Income taxes | 83,199 | 84,801 | 79,422 | 80,725 | 69,117 | ||||||||||||||||
Net income | 121,946 | 144,312 | 137,709 | 139,636 | 124,924 | ||||||||||||||||
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | 915 | 915 | ||||||||||||||||
Net income attributable to Hawaiian Electric | 121,031 | 143,397 | 136,794 | 138,721 | 124,009 | ||||||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | 1,080 | 1,080 | ||||||||||||||||
Net income for common stock | 119,951 | 142,317 | 135,714 | 137,641 | 122,929 | ||||||||||||||||
Retained earnings, January 1 | 1,091,800 | 1,043,082 | 997,773 | 948,624 | 907,273 | ||||||||||||||||
Reclass of AOCI for tax rate reduction impact | 209 | — | — | — | — | ||||||||||||||||
Common stock dividends | (87,767 | ) | (93,599 | ) | (90,405 | ) | (88,492 | ) | (81,578 | ) | |||||||||||
Retained earnings, December 31 | $ | 1,124,193 | $ | 1,091,800 | $ | 1,043,082 | $ | 997,773 | $ | 948,624 | |||||||||||
Note: | See Hawaiian Electric Company, Inc. and subsidiaries' Consolidated Financial Statements included or incorporated in HEI's and | ||||||||||||||||||||
Hawaiian Electric Company, Inc. and subsidiaries' Form 10-K for each year. |
10
CONSOLIDATED BALANCE SHEETS INFORMATION | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment | |||||||||||||||||||||
Land | $ | 53,177 | $ | 53,153 | $ | 52,792 | $ | 52,299 | $ | 51,883 | |||||||||||
Plant and equipment | 6,946,563 | 6,605,732 | 6,315,698 | 6,009,482 | 5,701,875 | ||||||||||||||||
Less accumulated depreciation | (2,476,352 | ) | (2,369,282 | ) | (2,266,004 | ) | (2,175,510 | ) | (2,111,229 | ) | |||||||||||
Construction in progress | 283,239 | 211,742 | 175,309 | 158,616 | 143,233 | ||||||||||||||||
Utility property, plant and equipment, net | 4,806,627 | 4,501,345 | 4,277,795 | 4,044,887 | 3,785,762 | ||||||||||||||||
Nonutility property, plant and equipment, | |||||||||||||||||||||
less accumulated depreciation | 7,580 | 7,407 | 7,272 | 6,563 | 6,567 | ||||||||||||||||
Total property, plant and equipment, net | 4,814,207 | 4,508,752 | 4,285,067 | 4,051,450 | 3,792,329 | ||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and equivalents | 12,517 | 74,286 | 24,449 | 13,762 | 62,825 | ||||||||||||||||
Customer accounts receivable, net | 127,889 | 123,688 | 132,778 | 158,484 | 175,448 | ||||||||||||||||
Accrued unbilled revenues, net | 107,054 | 91,693 | 84,509 | 137,374 | 144,124 | ||||||||||||||||
Other accounts receivable, net | 7,163 | 5,233 | 10,408 | 4,283 | 14,062 | ||||||||||||||||
Fuel oil stock, at average cost | 86,873 | 66,430 | 71,216 | 106,046 | 134,087 | ||||||||||||||||
Materials and supplies, at average cost | 54,397 | 53,679 | 54,429 | 57,250 | 59,044 | ||||||||||||||||
Prepayments and other | 25,355 | 23,100 | 36,640 | 33,468 | 32,155 | ||||||||||||||||
Regulatory assets | 88,390 | 66,032 | 72,231 | 71,421 | 69,738 | ||||||||||||||||
Total current assets | 509,638 | 504,141 | 486,660 | 582,088 | 691,483 | ||||||||||||||||
Other long-term assets | |||||||||||||||||||||
Regulatory assets | 780,907 | 891,419 | 824,500 | 833,843 | 506,186 | ||||||||||||||||
Unamortized debt expense | 611 | 208 | 497 | 802 | 641 | ||||||||||||||||
Other | 90,918 | 70,908 | 75,486 | 81,838 | 67,426 | ||||||||||||||||
Total other long-term assets | 872,436 | 962,535 | 900,483 | 916,483 | 574,253 | ||||||||||||||||
Total assets | $ | 6,196,281 | $ | 5,975,428 | $ | 5,672,210 | $ | 5,550,021 | $ | 5,058,065 | |||||||||||
CAPITALIZATION AND LIABILITIES | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 1,845,283 | $ | 1,799,787 | $ | 1,728,325 | $ | 1,682,144 | $ | 1,593,564 | |||||||||||
Cumulative preferred stock - not subject to mandatory redemption | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||||||||
Long-term debt, net | 1,318,516 | 1,319,260 | 1,278,702 | 1,199,025 | 1,198,200 | ||||||||||||||||
Total capitalization | 3,198,092 | 3,153,340 | 3,041,320 | 2,915,462 | 2,826,057 | ||||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of long-term debt | 49,963 | — | — | — | 11,383 | ||||||||||||||||
Short-term borrowings from non-affiliate | 4,999 | — | — | — | — | ||||||||||||||||
Accounts payable | 159,610 | 117,814 | 114,846 | 163,934 | 189,559 | ||||||||||||||||
Interest and preferred dividends payable | 22,575 | 22,838 | 23,111 | 22,316 | 21,652 | ||||||||||||||||
Taxes accrued | 199,101 | 172,730 | 191,084 | 250,402 | 249,445 | ||||||||||||||||
Regulatory liabilities | 3,401 | 3,762 | 2,204 | 632 | 1,916 | ||||||||||||||||
Other | 59,456 | 55,221 | 54,079 | 61,664 | 63,881 | ||||||||||||||||
Total current liabilities | 499,105 | 372,365 | 385,324 | 498,948 | 537,836 | ||||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Deferred income taxes | 394,041 | 733,659 | 654,806 | 573,439 | 486,459 | ||||||||||||||||
Regulatory liabilities | 877,369 | 406,931 | 369,339 | 344,217 | 347,383 | ||||||||||||||||
Unamortized tax credits | 90,369 | 88,961 | 84,214 | 79,492 | 73,539 | ||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 472,948 | 599,726 | 552,974 | 595,395 | 262,162 | ||||||||||||||||
Other | 98,689 | 76,921 | 78,146 | 76,636 | 91,735 | ||||||||||||||||
Total deferred credits and other liabilities | 1,933,416 | 1,906,198 | 1,739,479 | 1,669,179 | 1,261,278 | ||||||||||||||||
Contributions in aid of construction | 565,668 | 543,525 | 506,087 | 466,432 | 432,894 | ||||||||||||||||
Total capitalization and liabilities | $ | 6,196,281 | $ | 5,975,428 | $ | 5,672,210 | $ | 5,550,021 | $ | 5,058,065 | |||||||||||
Note: See Hawaiian Electric Company, Inc. and subsidiaries' Consolidated Financial Statements included or incorporated in HEI's and Hawaiian Electric | |||||||||||||||||||||
Company, Inc. and subsidiaries' Form 10-K for each year. Periods prior to January 1, 2016 reflect the retrospective adoption of ASU No. 2015-03. |
11
CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION | |||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||
Unaudited | |||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 121,946 | $ | 144,312 | $ | 137,709 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||
Depreciation of property, plant and equipment | 192,784 | 187,061 | 177,380 | ||||||||||||||
Other amortization | 8,498 | 6,935 | 8,939 | ||||||||||||||
Impairment of utility assets | — | — | 6,021 | ||||||||||||||
Deferred income taxes | 38,037 | 74,386 | 75,626 | ||||||||||||||
Allowance for equity funds used during construction | (12,483 | ) | (8,325 | ) | (6,928 | ) | |||||||||||
Other | (1,066 | ) | (3,700 | ) | 6,516 | ||||||||||||
Changes in assets and liabilities | |||||||||||||||||
Decrease in accounts receivable | 2,914 | 8,551 | 23,727 | ||||||||||||||
Decrease (increase) in accrued unbilled revenues | (15,361 | ) | (7,184 | ) | 40,093 | ||||||||||||
Decrease (increase) in fuel oil stock | (20,443 | ) | 4,786 | 34,830 | |||||||||||||
Decrease (increase) in materials and supplies | (718 | ) | 750 | 2,821 | |||||||||||||
Increase in regulatory assets | (17,256 | ) | (18,273 | ) | (24,182 | ) | |||||||||||
Increase (decrease) in accounts payable | 25,734 | (10,614 | ) | (54,555 | ) | ||||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 29,862 | 2,123 | (63,096 | ) | |||||||||||||
Increase in defined benefit pension and other postretirement | |||||||||||||||||
benefit plans liability | 604 | 484 | 1,125 | ||||||||||||||
Change in other assets and liabilities | (17,866 | ) | (11,375 | ) | (32,620 | ) | |||||||||||
Net cash provided by operating activities | 335,186 | 369,917 | 333,406 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures | (441,598 | ) | (320,437 | ) | (350,161 | ) | |||||||||||
Contributions in aid of construction | 64,733 | 30,100 | 40,239 | ||||||||||||||
Other | 4,578 | 2,138 | 1,140 | ||||||||||||||
Net cash used in investing activities | (372,287 | ) | (288,199 | ) | (308,782 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||
Common stock dividends | (87,767 | ) | (93,599 | ) | (90,405 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995 | ) | (1,995 | ) | (1,995 | ) | |||||||||||
Proceeds from issuance of common stock | 14,000 | 24,000 | — | ||||||||||||||
Proceeds from issuance of long-term debt | 315,000 | 40,000 | 80,000 | ||||||||||||||
Funds transferred for redemption of special purpose revenue bonds | (265,000 | ) | — | — | |||||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original | |||||||||||||||||
maturities of three months or less | 4,999 | — | — | ||||||||||||||
Other | (3,905 | ) | (287 | ) | (1,537 | ) | |||||||||||
Net cash used in financing activities | (24,668 | ) | (31,881 | ) | (13,937 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | (61,769 | ) | 49,837 | 10,687 | |||||||||||||
Cash and cash equivalents, January 1 | 74,286 | 24,449 | 13,762 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 12,517 | $ | 74,286 | $ | 24,449 | |||||||||||
Note: | See Hawaiian Electric Company, Inc. and subsidiaries' Consolidated Financial Statements included or incorporated in HEI's and | ||||||||||||||||
Hawaiian Electric Company, Inc. and subsidiaries' Form 10-K for each year. |
12
CUMULATIVE PREFERRED STOCK NOT SUBJECT TO MANDATORY REDEMPTION | |||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||||
December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||
(dollars in thousands, except par values) | |||||||||||||||||||||||||||
Shares outstanding | |||||||||||||||||||||||||||
Par value | 12/31/17 | ||||||||||||||||||||||||||
C | 4.25% | $ 20 | Hawaiian Electric | 150,000 | $ | 3,000 | $ | 3,000 | $ | 3,000 | $ | 3,000 | $ | 3,000 | |||||||||||||
D | 5.00 | 20 | Hawaiian Electric | 50,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | ||||||||||||||||||
E | 5.00 | 20 | Hawaiian Electric | 150,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | ||||||||||||||||||
H | 5.25 | 20 | Hawaiian Electric | 250,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | ||||||||||||||||||
I | 5.00 | 20 | Hawaiian Electric | 89,657 | 1,793 | 1,793 | 1,793 | 1,793 | 1,793 | ||||||||||||||||||
J | 4.75 | 20 | Hawaiian Electric | 250,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | ||||||||||||||||||
K | 4.65 | 20 | Hawaiian Electric | 175,000 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | ||||||||||||||||||
G | 7.625 | 100 | Hawaii Electric Light | 70,000 | 7,000 | 7,000 | 7,000 | 7,000 | 7,000 | ||||||||||||||||||
H | 7.625 | 100 | Maui Electric | 50,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | ||||||||||||||||||
1,234,657 | $ | 34,293 | $ | 34,293 | $ | 34,293 | $ | 34,293 | $ | 34,293 | |||||||||||||||||
Note: | See Hawaiian Electric Company, Inc. and subsidiaries' Consolidated Financial Statements included or incorporated in HEI's and | ||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and subsidiaries' Form 10-K for each year. |
13
LONG-TERM DEBT | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
OBLIGATIONS TO THE STATE OF HAWAII FOR THE | |||||||||||||||||||||
REPAYMENT OF SPECIAL PURPOSE REVENUE BONDS | |||||||||||||||||||||
Hawaiian Electric | |||||||||||||||||||||
Refunding series 2005A, 4.80%, due 2025 | $ | — | $ | — | $ | — | $ | 40,000 | $ | 40,000 | |||||||||||
Series 2007A, 4.65%, due 2037 | — | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||||||||
Refunding series 2007B, 4.60%, due 2026 | — | 62,000 | 62,000 | 62,000 | 62,000 | ||||||||||||||||
Series 2009, 6.50%, due 2039 | 90,000 | 90,000 | 90,000 | 90,000 | 90,000 | ||||||||||||||||
Refunding series 2015, 3.25%, due 2025 | 40,000 | 40,000 | 40,000 | — | — | ||||||||||||||||
Refunding series 2017A, 3.10%, due 2026 | 62,000 | — | — | — | — | ||||||||||||||||
Refunding series 2017B, 4.00%, due 2037 | 100,000 | — | — | — | — | ||||||||||||||||
292,000 | 292,000 | 292,000 | 292,000 | 292,000 | |||||||||||||||||
Hawaii Electric Light | |||||||||||||||||||||
Refunding series 1999A, 5.50%, due 2014 | — | — | — | — | 11,400 | ||||||||||||||||
Refunding series 2005A, 4.80%, due 2025 | — | — | — | 5,000 | 5,000 | ||||||||||||||||
Series 2007A, 4.65%, due 2037 | — | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Refunding series 2007B, 4.60%, due 2026 | — | 8,000 | 8,000 | 8,000 | 8,000 | ||||||||||||||||
Series 2009, 6.50%, due 2039 | 60,000 | 60,000 | 60,000 | 60,000 | 60,000 | ||||||||||||||||
Refunding series 2015, 3.25%, due 2025 | 5,000 | 5,000 | 5,000 | — | — | ||||||||||||||||
Refunding series 2017A, 3.10%, due 2026 | 8,000 | — | — | — | — | ||||||||||||||||
Refunding series 2017B, 4.00%, due 2037 | 20,000 | — | — | — | — | ||||||||||||||||
93,000 | 93,000 | 93,000 | 93,000 | 104,400 | |||||||||||||||||
Maui Electric | |||||||||||||||||||||
Refunding series 2005A, 4.80%, due 2025 | — | — | — | 2,000 | 2,000 | ||||||||||||||||
Series 2007A, 4.65%, due 2037 | — | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Refunding series 2007B, 4.60%, due 2026 | — | 55,000 | 55,000 | 55,000 | 55,000 | ||||||||||||||||
Refunding series 2015, 3.25%, due 2025 | 2,000 | 2,000 | 2,000 | — | — | ||||||||||||||||
Refunding series 2017A, 3.10%, due 2026 | 55,000 | — | — | — | — | ||||||||||||||||
Refunding series 2017B, 4.00%, due 2037 | 20,000 | — | — | — | — | ||||||||||||||||
77,000 | 77,000 | 77,000 | 77,000 | 77,000 | |||||||||||||||||
462,000 | 462,000 | 462,000 | 462,000 | 473,400 | |||||||||||||||||
Less funds on deposit with trustees | — | — | — | — | — | ||||||||||||||||
$ | 462,000 | $ | 462,000 | $ | 462,000 | $ | 462,000 | $ | 473,400 | ||||||||||||
(Continued on next page) |
14
LONG-TERM DEBT (Continued) | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
OTHER LONG-TERM DEBT (UNSECURED) | |||||||||||||||||||||
Taxable unsecured senior notes: | |||||||||||||||||||||
Hawaiian Electric, 4.31%, Series 2017A, due 2047 | $ | 40,000 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Maui Electric, 4.31%, Series 2017A, due 2047 | 10,000 | — | — | — | — | ||||||||||||||||
Hawaiian Electric, 4.54%, Series 2016A, due 2046 | 40,000 | 40,000 | — | — | — | ||||||||||||||||
Hawaiian Electric, 5.23%, Series 2015A, due 2045 | 50,000 | 50,000 | 50,000 | — | — | ||||||||||||||||
Hawaii Electric Light, 5.23%, Series 2015A, due 2045 | 25,000 | 25,000 | 25,000 | — | — | ||||||||||||||||
Maui Electric, 5.23%, Series 2015A, due 2045 | 5,000 | 5,000 | 5,000 | — | — | ||||||||||||||||
Hawaii Electric Light, 3.83%, Series 2013A, due 2020 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | ||||||||||||||||
Hawaiian Electric, 4.45%, Series 2013A, due 2022 | 40,000 | 40,000 | 40,000 | 40,000 | 40,000 | ||||||||||||||||
Hawaii Electric Light, 4.45%, Series 2013B, due 2022 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | ||||||||||||||||
Hawaiian Electric, 4.84%, Series 2013B, due 2027 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||
Hawaii Electric Light, 4.84%, Series 2013C, due 2027 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | ||||||||||||||||
Maui Electric, 4.84%, Series 2013A, due 2027 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Hawaiian Electric, 5.65% Series 2013C, due 2043 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||
Maui Electric, 5.65% Series 2013B, due 2043 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Hawaiian Electric, 3.79%, Series 2012A, due 2018 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | ||||||||||||||||
Hawaii Electric Light, 3.79%, Series 2012A, due 2018 | 11,000 | 11,000 | 11,000 | 11,000 | 11,000 | ||||||||||||||||
Maui Electric, 3.79%, Series 2012A, due 2018 | 9,000 | 9,000 | 9,000 | 9,000 | 9,000 | ||||||||||||||||
Hawaiian Electric, 4.03%, Series 2012B, due 2020 | 62,000 | 62,000 | 62,000 | 62,000 | 62,000 | ||||||||||||||||
Maui Electric, 4.03%, Series 2012B, due 2020 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Hawaiian Electric, 4.55%, Series 2012C, due 2023 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||
Hawaii Electric Light, 4.55%, Series 2012B, due 2023 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Maui Electric, 4.55%, Series 2012C, due 2023 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | ||||||||||||||||
Hawaiian Electric, 4.72%, Series 2012D, due 2029 | 35,000 | 35,000 | 35,000 | 35,000 | 35,000 | ||||||||||||||||
Hawaiian Electric, 5.39%, Series 2012E, due 2042 | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | ||||||||||||||||
Hawaiian Electric, 4.53%, Series 2012F, due 2032 | 40,000 | 40,000 | 40,000 | 40,000 | 40,000 | ||||||||||||||||
863,000 | 813,000 | 773,000 | 693,000 | 693,000 | |||||||||||||||||
6.50%, series 2004, Junior subordinated deferrable interest | |||||||||||||||||||||
debentures, due 2034 | 51,546 | 51,546 | 51,546 | 51,546 | 51,546 | ||||||||||||||||
Long-term debt, including amounts due within one year | 1,376,546 | 1,326,546 | 1,286,546 | 1,206,546 | 1,217,946 | ||||||||||||||||
Less unamortized discount | — | — | — | — | (1 | ) | |||||||||||||||
Less current portion of long-term debt, net | (49,963 | ) | — | — | — | (11,383 | ) | ||||||||||||||
Less unamortized debt issuance costs | (8,067 | ) | (7,286 | ) | (7,844 | ) | (7,521 | ) | (8,362 | ) | |||||||||||
Long-term debt, net | $ | 1,318,516 | $ | 1,319,260 | $ | 1,278,702 | $ | 1,199,025 | $ | 1,198,200 | |||||||||||
Note: | See Hawaiian Electric Company, Inc. and subsidiaries' Consolidated Financial Statements included or incorporated in HEI's and | ||||||||||||||||||||
Hawaiian Electric Company, Inc. and subsidiaries' Form 10-K for each year. Periods prior to January 1, 2016 reflect the retrospective adoption | |||||||||||||||||||||
of ASU No. 2015-03. |
15
CUSTOMER, SALES AND REVENUE INFORMATION | |||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||
Unaudited | |||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||
SERVICE AREA | |||||||||||||||||
Service area (square miles) | 5,815 | 5,815 | 5,815 | 5,815 | 5,815 | ||||||||||||
Service area population (estimated, in thousands) | n/a | 1,357 | 1,353 | 1,345 | 1,337 | ||||||||||||
CUSTOMER ACCOUNTS 1 | |||||||||||||||||
Residential | 406,241 | 402,818 | 400,655 | 398,256 | 394,910 | ||||||||||||
Commercial | 53,732 | 55,089 | 54,878 | 54,924 | 54,616 | ||||||||||||
Large light and power | 656 | 670 | 659 | 596 | 556 | ||||||||||||
Other | 1,596 | 1,585 | 1,608 | 1,640 | 1,660 | ||||||||||||
462,225 | 460,162 | 457,800 | 455,416 | 451,742 | |||||||||||||
CUSTOMER ACCOUNTS BY COMPANY 1 | |||||||||||||||||
Hawaiian Electric | 304,948 | 304,261 | 302,958 | 301,953 | 299,528 | ||||||||||||
Hawaii Electric Light | 85,925 | 85,029 | 84,309 | 83,421 | 82,637 | ||||||||||||
Maui Electric | 71,352 | 70,872 | 70,533 | 70,042 | 69,577 | ||||||||||||
Consolidated | 462,225 | 460,162 | 457,800 | 455,416 | 451,742 | ||||||||||||
KILOWATTHOUR SALES (millions) | |||||||||||||||||
Residential | 2,334 | 2,333 | 2,396 | 2,380 | 2,451 | ||||||||||||
Commercial | 2,868 | 2,911 | 2,978 | 3,022 | 3,106 | ||||||||||||
Large light and power | 3,443 | 3,555 | 3,533 | 3,524 | 3,463 | ||||||||||||
Other | 45 | 46 | 50 | 50 | 50 | ||||||||||||
8,690 | 8,845 | 8,957 | 8,976 | 9,070 | |||||||||||||
KILOWATTHOUR SALES MIX (%) | |||||||||||||||||
Residential | 26.9 | 26.4 | 26.8 | 26.5 | 27.0 | ||||||||||||
Commercial | 33.0 | 32.9 | 33.3 | 33.7 | 34.3 | ||||||||||||
Large light and power | 39.6 | 40.2 | 39.4 | 39.3 | 38.2 | ||||||||||||
Other | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||
KILOWATTHOUR SALES BY COMPANY (millions) | |||||||||||||||||
Hawaiian Electric | 6,548 | 6,660 | 6,754 | 6,782 | 6,859 | ||||||||||||
Hawaii Electric Light | 1,047 | 1,067 | 1,065 | 1,062 | 1,076 | ||||||||||||
Maui Electric | 1,095 | 1,118 | 1,138 | 1,132 | 1,135 | ||||||||||||
Consolidated | 8,690 | 8,845 | 8,957 | 8,976 | 9,070 | ||||||||||||
KILOWATTHOUR SALES GROWTH BY COMPANY (%) | |||||||||||||||||
Hawaiian Electric | (1.7 | ) | (1.4 | ) | (0.4 | ) | (1.1 | ) | (1.7 | ) | |||||||
Hawaii Electric Light | (2.0 | ) | 0.2 | 0.2 | (1.3 | ) | (0.8 | ) | |||||||||
Maui Electric | (2.1 | ) | (1.8 | ) | 0.5 | (0.2 | ) | (0.9 | ) | ||||||||
Consolidated | (1.8 | ) | (1.3 | ) | (0.2 | ) | (1.0 | ) | (1.5 | ) | |||||||
RENEWABLE GENERATION RPS (%) 2 | |||||||||||||||||
Hawaiian Electric | 21 | 19 | 17 | 15 | 11 | ||||||||||||
Hawaii Electric Light | 57 | 54 | 49 | 47 | 48 | ||||||||||||
Maui Electric | 34 | 37 | 35 | 34 | 29 | ||||||||||||
Consolidated | 27 | 26 | 23 | 21 | 18 | ||||||||||||
Source: State of Hawaii Data Book 2014 (prior years) | |||||||||||||||||
1 | At December 31 | ||||||||||||||||
2 | Renewable generation as a % of total sales, excluding electrical energy savings from Energy Efficiency and Solar Water Heating technologies that | ||||||||||||||||
do not count toward RPS Standards beginning January 1, 2015. | |||||||||||||||||
n/a | Not available | ||||||||||||||||
(Continued on next page) |
16
CUSTOMER, SALES AND REVENUE INFORMATION (Continued) | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
REVENUES (thousands) | |||||||||||||||||||||
Electric sales revenue | |||||||||||||||||||||
Residential | $ | 691,857 | $ | 638,776 | $ | 709,886 | $ | 879,605 | $ | 892,438 | |||||||||||
Commercial | 766,921 | 711,553 | 798,202 | 1,027,588 | 1,044,166 | ||||||||||||||||
Large light and power | 776,808 | 720,878 | 802,366 | 1,051,119 | 1,015,079 | ||||||||||||||||
Other | 12,009 | 11,306 | 13,356 | 17,163 | 17,008 | ||||||||||||||||
Total electric sales revenues | 2,247,595 | 2,082,513 | 2,323,810 | 2,975,475 | 2,968,691 | ||||||||||||||||
Other revenues | 9,971 | 11,855 | 11,356 | 11,848 | 11,481 | ||||||||||||||||
Total revenues | $ | 2,257,566 | $ | 2,094,368 | $ | 2,335,166 | $ | 2,987,323 | $ | 2,980,172 | |||||||||||
Less: | |||||||||||||||||||||
Fuel oil | 587,768 | 454,704 | 654,600 | 1,131,685 | 1,185,552 | ||||||||||||||||
Purchased power | 586,634 | 562,740 | 594,096 | 722,008 | 710,681 | ||||||||||||||||
Taxes, other than income taxes | 214,949 | 199,862 | 221,885 | 280,863 | 281,131 | ||||||||||||||||
Net revenues | $ | 868,215 | $ | 877,062 | $ | 864,585 | $ | 852,767 | $ | 802,808 | |||||||||||
REVENUES BY COMPANY (thousands) | |||||||||||||||||||||
Hawaiian Electric | $ | 1,598,504 | $ | 1,474,384 | $ | 1,644,181 | $ | 2,142,245 | $ | 2,124,174 | |||||||||||
Hawaii Electric Light | 333,467 | 311,385 | 345,549 | 422,200 | 431,517 | ||||||||||||||||
Maui Electric | 325,678 | 308,705 | 345,517 | 422,965 | 424,603 | ||||||||||||||||
Eliminations | (83 | ) | (106 | ) | (81 | ) | (87 | ) | (122 | ) | |||||||||||
Consolidated | $ | 2,257,566 | $ | 2,094,368 | $ | 2,335,166 | $ | 2,987,323 | $ | 2,980,172 | |||||||||||
AVERAGE REVENUE PER KWH SOLD (cents) | |||||||||||||||||||||
Residential | 29.64 | 27.38 | 29.62 | 36.96 | 36.41 | ||||||||||||||||
Commercial | 26.74 | 24.44 | 26.81 | 34.00 | 33.62 | ||||||||||||||||
Large light and power | 22.56 | 20.28 | 22.71 | 29.82 | 29.31 | ||||||||||||||||
Other | 26.82 | 24.61 | 27.05 | 34.36 | 34.02 | ||||||||||||||||
25.86 | 23.54 | 25.90 | 33.15 | 32.73 | |||||||||||||||||
AVERAGE REVENUE PER KWH SOLD BY COMPANY (cents) | |||||||||||||||||||||
Hawaiian Electric | 24.31 | 22.01 | 24.23 | 31.47 | 30.86 | ||||||||||||||||
Hawaii Electric Light | 31.68 | 29.00 | 32.29 | 39.59 | 39.98 | ||||||||||||||||
Maui Electric | 29.58 | 27.45 | 30.21 | 37.17 | 37.20 | ||||||||||||||||
Consolidated | 25.86 | 23.54 | 25.90 | 33.15 | 32.73 | ||||||||||||||||
AVERAGE ANNUAL RESIDENTIAL USE PER CUSTOMER BY COMPANY (KWH) | |||||||||||||||||||||
Hawaiian Electric | 5,829 | 5,856 | 6,052 | 6,036 | 6,283 | ||||||||||||||||
Hawaii Electric Light | 5,408 | 5,397 | 5,485 | 5,514 | 5,697 | ||||||||||||||||
Maui Electric | 6,000 | 6,067 | 6,351 | 6,408 | 6,554 | ||||||||||||||||
Consolidated | 5,779 | 5,806 | 5,996 | 6,000 | 6,220 | ||||||||||||||||
Average monthly electric sales revenue per residential customer | $ | 143 | $ | 132 | $ | 148 | $ | 185 | $ | 189 |
17
POWER SUPPLY INFORMATION | |||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||
Unaudited | |||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
ENERGY NET GENERATED AND PURCHASED (millions of KWH) | |||||||||||||||||||
Net generated | |||||||||||||||||||
Fuel oil | |||||||||||||||||||
Steam-conventional | 3,703 | 3,799 | 3,948 | 4,013 | 4,243 | ||||||||||||||
Combustion turbine | 46 | 22 | 35 | 19 | 13 | ||||||||||||||
Diesel | 245 | 230 | 220 | 192 | 179 | ||||||||||||||
Combined-cycle | 829 | 835 | 846 | 842 | 864 | ||||||||||||||
4,823 | 4,886 | 5,049 | 5,066 | 5,299 | |||||||||||||||
Biofuels | 55 | 37 | 54 | 42 | 34 | ||||||||||||||
Hydro and wind | 10 | 17 | 22 | 23 | 19 | ||||||||||||||
Total net generated | 4,888 | 4,940 | 5,125 | 5,131 | 5,352 | ||||||||||||||
Purchased | |||||||||||||||||||
Non-renewable | 2,851 | 2,918 | 2,956 | 2,978 | 2,951 | ||||||||||||||
Renewable 1 | 1,396 | 1,431 | 1,352 | 1,329 | 1,244 | ||||||||||||||
Total purchased | 4,247 | 4,349 | 4,308 | 4,307 | 4,195 | ||||||||||||||
9,135 | 9,289 | 9,433 | 9,438 | 9,547 | |||||||||||||||
GENERATION MIX (%) | |||||||||||||||||||
Fuel oil | |||||||||||||||||||
Steam-conventional | 40.5 | 40.9 | 41.9 | 42.6 | 44.4 | ||||||||||||||
Combustion turbine | 0.5 | 0.2 | 0.4 | 0.2 | 0.1 | ||||||||||||||
Diesel | 2.7 | 2.5 | 2.3 | 2.0 | 1.9 | ||||||||||||||
Combined-cycle | 9.1 | 9.0 | 9.0 | 8.9 | 9.1 | ||||||||||||||
52.8 | 52.6 | 53.6 | 53.7 | 55.5 | |||||||||||||||
Biofuels | 0.6 | 0.4 | 0.6 | 0.5 | 0.4 | ||||||||||||||
Hydro and wind | 0.1 | 0.2 | 0.2 | 0.2 | 0.2 | ||||||||||||||
Total generation | 53.5 | 53.2 | 54.4 | 54.4 | 56.1 | ||||||||||||||
Purchased | |||||||||||||||||||
Non-renewable | 31.2 | 31.4 | 31.3 | 31.5 | 30.9 | ||||||||||||||
Renewable 1 | 15.3 | 15.4 | 14.3 | 14.1 | 13.0 | ||||||||||||||
Total purchased | 46.5 | 46.8 | 45.6 | 45.6 | 43.9 | ||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
1 | Includes firm and non-firm renewable generation; does not include generation associated with Net Energy Metering (NEM) and Grid Supply customers. | ||||||||||||||||||
(Continued on next page) |
18
POWER SUPPLY INFORMATION (Continued) | ||||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||||
SYSTEM CAPABILITY (MW) 1, 2 | ||||||||||||||||||||||||||||
Company-owned generation | ||||||||||||||||||||||||||||
Steam-conventional | 1,086 | 1,085 | 1,085 | 1,207 | 1,207 | 1,207 | ||||||||||||||||||||||
Combustion turbine | 150 | 150 | 150 | 150 | 150 | 150 | ||||||||||||||||||||||
Diesel | 146 | 143 | 151 | 147 | 147 | 147 | ||||||||||||||||||||||
Biodiesel (CIP CT-1) | 121 | 121 | 113 | 113 | 113 | 113 | ||||||||||||||||||||||
Combined-cycle | 170 | 170 | 170 | 170 | 170 | 170 | ||||||||||||||||||||||
1,673 | 1,669 | 1,669 | 1,787 | 1,787 | 1,787 | |||||||||||||||||||||||
Firm purchase power contracts 4 | ||||||||||||||||||||||||||||
Non-renewable | 448 | 448 | 448 | 448 | 448 | 448 | ||||||||||||||||||||||
Renewable | 103 | 103 | 107 | 127 | 119 | 97 | ||||||||||||||||||||||
551 | 551 | 555 | 575 | 567 | 545 | |||||||||||||||||||||||
2,224 | 2,220 | 2,224 | 2,362 | 2,354 | 2,332 | |||||||||||||||||||||||
SYSTEM CAPABILITY BY COMPANY (MW) 1, 2 | ||||||||||||||||||||||||||||
Hawaiian Electric | 1,679 | 1,679 | 1,679 | 1,786 | 1,778 | 1,756 | ||||||||||||||||||||||
Hawaii Electric Light | 277 | 274 | 274 | 292 | 292 | 292 | ||||||||||||||||||||||
Maui Electric | 268 | 267 | 271 | 284 | 284 | 284 | ||||||||||||||||||||||
2,224 | 2,220 | 2,224 | 2,362 | 2,354 | 2,332 | |||||||||||||||||||||||
SYSTEM PEAK LOAD BY COMPANY (MW) 3 | ||||||||||||||||||||||||||||
Hawaiian Electric | 1,184 | 1,192 | 1,206 | 1,165 | 1,144 | 1,141 | ||||||||||||||||||||||
Hawaii Electric Light | 190 | 189 | 192 | 188 | 190 | 189 | ||||||||||||||||||||||
Maui Electric | 210 | 212 | 212 | 201 | 201 | 205 | ||||||||||||||||||||||
1,584 | 1,593 | 1,610 | 1,554 | 1,535 | 1,535 | |||||||||||||||||||||||
FUEL OIL DATA | ||||||||||||||||||||||||||||
Barrels of fuel oil consumed (thousands) | 8,546 | 8,501 | 8,762 | 8,728 | 9,043 | 9,395 | ||||||||||||||||||||||
Average fuel oil cost per barrel | $ | 68.78 | $ | 53.49 | $ | 74.71 | $ | 129.65 | $ | 131.10 | $ | 138.09 | ||||||||||||||||
Average fuel oil cost per million BTU (cents) | 1,114.3 | 862.3 | 1,206.5 | 2,087.6 | 2,103.2 | 2,210.4 | ||||||||||||||||||||||
Fuel oil cost per net KWH generated (cents) | 12.048 | 9.235 | 12.828 | 22.156 | 22.230 | 23.281 | ||||||||||||||||||||||
BTU per net KWH generated by company | ||||||||||||||||||||||||||||
Hawaiian Electric | 10,879 | 10,750 | 10,716 | 10,630 | 10,536 | 10,448 | ||||||||||||||||||||||
Hawaii Electric Light | 11,087 | 11,412 | 11,205 | 11,221 | 11,658 | 12,025 | ||||||||||||||||||||||
Maui Electric | 10,406 | 10,119 | 9,958 | 10,177 | 10,088 | 10,193 | ||||||||||||||||||||||
Consolidated | 10,812 | 10,710 | 10,632 | 10,613 | 10,570 | 10,533 | ||||||||||||||||||||||
OTHER DATA | ||||||||||||||||||||||||||||
Losses and system uses (%) | 4.7 | 4.6 | 4.8 | 4.7 | 4.8 | 4.8 | ||||||||||||||||||||||
Reserve margin (%) 3 | 42.0 | 40.8 | 40.4 | 54.5 | 57.2 | 56.0 | ||||||||||||||||||||||
Annual load factor (%) 3 | 65.8 | 66.6 | 66.9 | 69.3 | 71.0 | 72.1 | ||||||||||||||||||||||
Cost per KWH purchased (cents) | 13.813 | 12.939 | 13.790 | 16.765 | 16.940 | 17.694 | ||||||||||||||||||||||
1 | At December 31. | |||||||||||||||||||||||||||
2 | Excludes hydro run-of-river units. | |||||||||||||||||||||||||||
3 | Net; noncoincident and nonintegrated. | |||||||||||||||||||||||||||
4 | Non-renewable firm power contracts include: AES Hawaii (AES), Kalaeloa Partners, and Hamakua Energy Partners (HEP). Renewable firm power contracts include: Honolulu Program of Waste Energy Recovery (H-POWER) and Puna Geothermal Venture (PGV). Excludes purchased power contracts with variable generation (e.g. non-firm wind, PV, hydro) resources. |
19
SELECTED INFORMATION | ||||||||||||||||||
American Savings Bank, F.S.B. | ||||||||||||||||||
Unaudited | ||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||
CAPITAL RATIOS (%) | ||||||||||||||||||
Common equity tier 1 | ||||||||||||||||||
ASB | 12.95 | 12.17 | 12.07 | N/A | N/A | |||||||||||||
Requirement | 4.50 | 4.50 | 4.50 | N/A | N/A | |||||||||||||
Tier 1 capital | ||||||||||||||||||
ASB | 12.95 | 12.17 | 12.07 | 11.28 | 11.17 | |||||||||||||
Requirement | 6.00 | 6.00 | 6.00 | 4.00 | 4.00 | |||||||||||||
Total capital | ||||||||||||||||||
ASB | 14.20 | 13.42 | 13.27 | 12.35 | 12.13 | |||||||||||||
Requirement | 8.00 | 8.00 | 8.00 | 8.00 | 8.00 | |||||||||||||
Tier 1 leverage | ||||||||||||||||||
ASB | 8.58 | 8.59 | 8.82 | 8.91 | 9.12 | |||||||||||||
Requirement | 4.00 | 4.00 | 4.00 | 1.50 | 1.50 | |||||||||||||
KEY STATISTICS (%) | ||||||||||||||||||
Return on average assets | ||||||||||||||||||
ASB | 1.02 | 0.92 | 0.95 | 0.95 | 1.13 | |||||||||||||
Peers 1 | 0.95 | 1.03 | 0.99 | 1.03 | 0.98 | |||||||||||||
High performing peers 1 | 1.17 | 1.19 | 1.24 | 1.23 | 1.24 | |||||||||||||
Return on average equity | ||||||||||||||||||
ASB | 11.20 | 9.90 | 9.93 | 9.60 | 11.43 | |||||||||||||
Peers 1 | 8.39 | 9.52 | 8.94 | 9.60 | 8.97 | |||||||||||||
High performing peers 1 | 11.02 | 10.87 | 11.36 | 11.57 | 11.27 | |||||||||||||
Net interest margin | ||||||||||||||||||
ASB | 3.69 | 3.59 | 3.53 | 3.62 | 3.74 | |||||||||||||
Peers 1 | 3.50 | 3.49 | 3.62 | 3.63 | 3.65 | |||||||||||||
High performing peers 1 | 3.57 | 3.48 | 3.71 | 3.90 | 4.01 | |||||||||||||
Revenue growth | ||||||||||||||||||
ASB | 4.51 | 6.54 | 6.09 | (2.57 | ) | (2.43 | ) | |||||||||||
Peers 1 | 9.68 | 9.28 | 8.71 | 6.81 | 2.91 | |||||||||||||
High performing peers 1 | 6.73 | 5.23 | 5.19 | 6.81 | 0.46 | |||||||||||||
Efficiency ratio | ||||||||||||||||||
ASB | 61.60 | 61.89 | 64.87 | 64.66 | 63.46 | |||||||||||||
Peers 1 | 57.51 | 57.65 | 60.34 | 62.35 | 62.72 | |||||||||||||
High performing peers 1 | 51.58 | 52.96 | 50.78 | 50.15 | 48.19 | |||||||||||||
Net charge-offs to loans outstanding | ||||||||||||||||||
ASB | 0.27 | 0.24 | 0.04 | 0.01 | 0.09 | |||||||||||||
Peers 1 | 0.07 | 0.10 | 0.11 | 0.17 | 0.25 | |||||||||||||
High performing peers 1 | 0.06 | 0.10 | 0.09 | 0.15 | 0.14 | |||||||||||||
OTHER DATA | ||||||||||||||||||
Dividend paid to HEI (via ASB Hawaii) ($ in millions) | 38 | 36 | 30 | 36 | 40 | |||||||||||||
Loan Growth (%) | (1.52) | 2.63 | 4.08 | 6.78 | 9.71 | |||||||||||||
Branch locations 2 | 49 | 52 | 56 | 56 | 57 | |||||||||||||
Number of ATMs 2 | 113 | 114 | 116 | 116 | 116 | |||||||||||||
1 | Based upon publicly traded banks and thrifts with $3.5 billion to $8.0 billion in total assets, list revised annually. | |||||||||||||||||
High performing peers are a subset of the bank peer group generally based upon performance metrics, such as return on average assets, | ||||||||||||||||||
above the average of the entire peer group. | ||||||||||||||||||
2 | At December 31. |
20
STATEMENTS OF INCOME INFORMATION | |||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||
Interest and fees on loans | $ | 207,255 | $ | 199,774 | $ | 184,782 | $ | 179,341 | $ | 172,969 | |||||||||||
Interest and dividends on investment securities | 28,823 | 19,184 | 15,120 | 11,945 | 13,095 | ||||||||||||||||
Total interest and dividend income | 236,078 | 218,958 | 199,902 | 191,286 | 186,064 | ||||||||||||||||
Interest expense | |||||||||||||||||||||
Interest on deposit liabilities | 9,660 | 7,167 | 5,348 | 5,077 | 5,092 | ||||||||||||||||
Interest on other borrowings | 2,496 | 5,588 | 5,978 | 5,731 | 4,985 | ||||||||||||||||
Total interest expense | 12,156 | 12,755 | 11,326 | 10,808 | 10,077 | ||||||||||||||||
Net interest income | 223,922 | 206,203 | 188,576 | 180,478 | 175,987 | ||||||||||||||||
Provision for loan losses | 10,901 | 16,763 | 6,275 | 6,126 | 1,507 | ||||||||||||||||
Net interest income after provision for loan losses | 213,021 | 189,440 | 182,301 | 174,352 | 174,480 | ||||||||||||||||
Noninterest income | |||||||||||||||||||||
Fees from other financial services | 22,796 | 22,384 | 22,211 | 21,747 | 27,099 | ||||||||||||||||
Fee income on deposit liabilities | 22,204 | 21,759 | 22,368 | 19,249 | 18,363 | ||||||||||||||||
Fee income on other financial products | 7,205 | 8,707 | 8,094 | 8,131 | 8,405 | ||||||||||||||||
Net gains on sale of securities | — | 598 | — | 2,847 | 1,226 | ||||||||||||||||
Mortgage banking income | 2,201 | 6,625 | 6,330 | 2,913 | 8,309 | ||||||||||||||||
Other income, net | 7,156 | 6,893 | 8,828 | 6,324 | 8,681 | ||||||||||||||||
Total noninterest income | 61,562 | 66,966 | 67,831 | 61,211 | 72,083 | ||||||||||||||||
Noninterest expense | |||||||||||||||||||||
Compensation and employee benefits | 95,751 | 90,117 | 90,518 | 79,885 | 82,910 | ||||||||||||||||
Occupancy and equipment | 23,931 | 23,259 | 22,942 | 23,761 | 24,042 | ||||||||||||||||
Data processing | 13,280 | 13,030 | 12,103 | 11,690 | 10,952 | ||||||||||||||||
Services | 10,994 | 11,054 | 10,204 | 10,269 | 9,015 | ||||||||||||||||
Other expense | 31,911 | 31,594 | 30,553 | 30,663 | 30,496 | ||||||||||||||||
Total noninterest expense | 175,867 | 169,054 | 166,320 | 156,268 | 157,415 | ||||||||||||||||
Income before income taxes | 98,716 | 87,352 | 83,812 | 79,295 | 89,148 | ||||||||||||||||
Income taxes | 31,719 | 30,073 | 29,082 | 27,994 | 31,421 | ||||||||||||||||
Net income | $ | 66,997 | $ | 57,279 | $ | 54,730 | $ | 51,301 | $ | 57,727 | |||||||||||
Note: See Bank segment footnote in HEI's Notes to Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. |
21
BALANCE SHEETS INFORMATION | |||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 234,099 | $ | 189,211 | $ | 220,881 | $ | 161,463 | $ | 156,603 | |||||||||||
Restricted cash | — | 1,764 | — | — | — | ||||||||||||||||
Investment securities | |||||||||||||||||||||
Available-for-sale investment securities, at fair value | 1,401,198 | 1,105,182 | 820,648 | 550,394 | 529,007 | ||||||||||||||||
Held-to-maturity investment securities, at amortized cost | 44,515 | — | — | — | — | ||||||||||||||||
Investment in stock of Federal Home Loan Bank, at cost | 9,706 | 11,218 | 10,678 | 69,302 | 92,546 | ||||||||||||||||
Loans receivable, net | 4,628,381 | 4,701,977 | 4,570,412 | 4,397,457 | 4,115,415 | ||||||||||||||||
Real estate acquired in settlement of loans, net | 133 | 1,189 | 1,030 | 891 | 1,205 | ||||||||||||||||
Other and other intangibles, net | 398,437 | 328,626 | 308,916 | 304,525 | 267,720 | ||||||||||||||||
Goodwill | 82,190 | 82,190 | 82,190 | 82,190 | 82,190 | ||||||||||||||||
Total assets | $ | 6,798,659 | $ | 6,421,357 | $ | 6,014,755 | $ | 5,566,222 | $ | 5,244,686 | |||||||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | |||||||||||||||||||||
Deposit liabilities | $ | 5,890,597 | $ | 5,548,929 | $ | 5,025,254 | $ | 4,623,415 | $ | 4,372,477 | |||||||||||
Other borrowings | 190,859 | 192,618 | 328,582 | 290,656 | 244,514 | ||||||||||||||||
Other | 110,356 | 101,635 | 101,029 | 118,363 | 107,205 | ||||||||||||||||
Total liabilities | 6,191,812 | 5,843,182 | 5,454,865 | 5,032,434 | 4,724,196 | ||||||||||||||||
Common stock | 345,019 | 342,705 | 340,497 | 338,412 | 336,054 | ||||||||||||||||
Retained earnings | 292,957 | 257,943 | 236,664 | 211,934 | 196,633 | ||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | (31,129 | ) | (22,473 | ) | (17,271 | ) | (16,558 | ) | (12,197 | ) | |||||||||||
Total shareholder's equity | 606,847 | 578,175 | 559,890 | 533,788 | 520,490 | ||||||||||||||||
Total liabilities and shareholder's equity | $ | 6,798,659 | $ | 6,421,357 | $ | 6,014,755 | $ | 5,566,222 | $ | 5,244,686 | |||||||||||
Note: See Bank segment footnote in HEI's Notes to Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. |
22
STATE OF HAWAII INFORMATION | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31, except as noted | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
POPULATION BY COUNTY (thousands) 1 | |||||||||||||||||||||
Honolulu | n/a | 993 | 993 | 988 | 985 | ||||||||||||||||
Hawaii | n/a | 198 | 196 | 194 | 191 | ||||||||||||||||
Maui | n/a | 166 | 164 | 163 | 161 | ||||||||||||||||
Kauai | n/a | 72 | 72 | 71 | 69 | ||||||||||||||||
n/a | 1,429 | 1,425 | 1,416 | 1,406 | |||||||||||||||||
VISITOR DATA | |||||||||||||||||||||
Visitor arrivals by air (thousands) | 9,257 | 8,822 | 8,563 | 8,196 | 8,003 | ||||||||||||||||
Visitor days by air (thousands) | 83,412 | 79,669 | 78,086 | 74,983 | 74,050 | ||||||||||||||||
Visitor expenditures by air (millions) | 16,734 | 15,754 | 14,938 | 14,809 | 14,352 | ||||||||||||||||
Year-over-year change (%) | |||||||||||||||||||||
Visitor arrivals by air | 4.9 | 3.0 | 4.5 | 2.4 | 1.7 | ||||||||||||||||
Visitor days | 4.7 | 2.3 | 4.1 | 1.3 | 0.5 | ||||||||||||||||
Visitor expenditures by air | 6.2 | 5.5 | 0.9 | 3.2 | 1.1 | ||||||||||||||||
CONSTRUCTION INDUSTRY DATA (millions) | |||||||||||||||||||||
Value of private building permits authorized 2 | $ | 3,128 | $ | 3,241 | $ | 3,964 | $ | 3,315 | $ | 2,721 | |||||||||||
Government contracts awarded | $ | 1,192 | $ | 1,673 | $ | 1,555 | $ | 1,097 | $ | 1,194 | |||||||||||
Estimated value of completed construction | n/a | $ | 8,288 | $ | 8,112 | $ | 7,024 | $ | 7,330 | ||||||||||||
OTHER DATA | |||||||||||||||||||||
Real gross state product (billions of 2009 $s) | $ | 75.2 | $ | 74.0 | $ | 72.7 | $ | 69.7 | $ | 70.0 | |||||||||||
Honolulu Consumer Price Index (% change) | 2.5 | 2.0 | 1.0 | 1.4 | 1.8 | ||||||||||||||||
Total non-agriculture wage and salary jobs (thousands) 3 | 654.8 | 647.6 | 638.6 | 627.2 | 618.6 | ||||||||||||||||
Unemployment rate (average annual %) | 2.5 | 3.0 | 3.6 | 4.4 | 4.9 | ||||||||||||||||
Note: Columns may not foot due to rounding. | |||||||||||||||||||||
Sources: State of Hawaii Data Book 2016 (prior years), Hawaii State Department of Business, Economic Development & Tourism, Hawaii Tourism | |||||||||||||||||||||
Authority, United States Department of Labor, Bureau of Labor Statistics, and U.S. Census Bureau. | |||||||||||||||||||||
1 | Resident population estimates, including military personnel, excluding visitors, as of July 1 | ||||||||||||||||||||
2 | Excludes public construction. | ||||||||||||||||||||
3 | Not seasonally adjusted and excludes estimations for Agriculture jobs (per Hawaii Department of Labor and Industrial Relations). | ||||||||||||||||||||
n/a | Not available |
23
Appendix
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 HEI and the utility. 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 (including diluted earnings per common share), the return on average common equity (ROACE) and the adjusted non-GAAP core ROACE for HEI consolidated and the utility.
The reconciling adjustments from GAAP earnings to core earnings include income, costs and associated taxes related to the terminated merger between HEI and NextEra Energy, Inc., the cancelled spin-off of ASB Hawaii, Inc. and the terminated liquefied natural gas (LNG) contract which required the Hawaii Public Utilities Commission approval of the merger with NextEra Energy, Inc. For more information on the transactions, see HEI’s Form 8-K filed on July 18, 2016, and HEI’s Form 8-K filed on July 19, 2016. In addition, the reconciling adjustments from GAAP earnings to core earnings also exclude the impact of the federal tax reform act due to the adjustment of deferred tax balances and the $1,000 employee bonuses paid by the bank related to federal tax reform. Management does not consider these items to be representative of the company’s fundamental core earnings. Management has shown adjusted non-GAAP (core) net income and adjusted non-GAAP (core) diluted earnings per common share in order to provide better comparability of core net income, EPS and ROACE between periods.
RECONCILIATION OF GAAP1 TO NON-GAAP MEASURES | ||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries (HEI) | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
($ in millions, except per share amounts) | ||||||||||||||||||||
Years ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
HEI CONSOLIDATED NET INCOME | ||||||||||||||||||||
GAAP (as reported) | $ | 165.3 | $ | 248.3 | $ | 159.9 | $ | 168.1 | $ | 161.7 | ||||||||||
Excluding special items (after-tax): | ||||||||||||||||||||
(Income) expenses related to the terminated merger with NextEra Energy | ||||||||||||||||||||
and cancelled spin-off of ASB Hawaii | — | (60.3 | ) | 15.8 | 4.9 | — | ||||||||||||||
Costs related to the terminated LNG contract2 | — | 2.1 | — | — | — | |||||||||||||||
Bonus related to enactment of federal tax reform3 | 0.7 | — | — | — | — | |||||||||||||||
Federal tax reform impacts4 | 13.4 | — | — | — | — | |||||||||||||||
Non-GAAP (core) net income | $ | 179.5 | $ | 190.1 | $ | 175.7 | $ | 173.0 | $ | 161.7 | ||||||||||
HEI CONSOLIDATED DILUTED EARNINGS PER COMMON SHARE (EPS) | ||||||||||||||||||||
GAAP (as reported) | $ | 1.52 | $ | 2.29 | $ | 1.50 | $ | 1.63 | $ | 1.62 | ||||||||||
Non-GAAP (core) | $ | 1.65 | $ | 1.75 | $ | 1.65 | $ | 1.68 | $ | 1.62 | ||||||||||
HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average) | ||||||||||||||||||||
Based on GAAP | 7.9 | % | 12.4 | % | 8.6 | % | 9.6 | % | 9.7 | % | ||||||||||
Based on non-GAAP (core)5 | 8.6 | % | 9.5 | % | 9.4 | % | 9.8 | % | 9.7 | % | ||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||||||||||
UTILITY NET INCOME | ||||||||||||||||||||
GAAP (as reported) | $ | 120.0 | $ | 142.3 | $ | 135.7 | $ | 137.6 | $ | 122.9 | ||||||||||
Excluding special items (after-tax): | ||||||||||||||||||||
Costs related to the terminated merger with Next Era Energy | — | 0.1 | 0.5 | — | — | |||||||||||||||
Costs related to the terminated LNG contract2 | — | 2.1 | — | — | — | |||||||||||||||
Federal tax reform impacts4 | 9.2 | — | — | — | — | |||||||||||||||
Non-GAAP (core) | $ | 129.1 | $ | 144.5 | $ | 136.2 | $ | 137.6 | $ | 122.9 | ||||||||||
UTILITY RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average) | ||||||||||||||||||||
Based on GAAP | 6.6 | % | 8.1 | % | 8.0 | % | 8.4 | % | 8.0 | % | ||||||||||
Based on non-GAAP (core)5 | 7.1 | % | 8.2 | % | 8.0 | % | 8.4 | % | 8.0 | % | ||||||||||
Note: Columns may not foot due to rounding | ||||||||||||||||||||
1 | Accounting principles generally accepted in the United States of America | |||||||||||||||||||
2 | The LNG contract was terminated as it was conditioned on the merger with NextEra Energy closing | |||||||||||||||||||
3 | Bonus paid by American Savings Bank related to enactment of federal tax reform | |||||||||||||||||||
4 | Reflects the lower rates enacted by federal tax reform, primarily the adjustments to reduce the unregulated net deferred tax asset balances | |||||||||||||||||||
5 | Calculated as core net income divided by average GAAP common equity |
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