Exhibit 99
![a2019coverpagea01.jpg](https://capedge.com/proxy/8-K/0000354707-20-000054/a2019coverpagea01.jpg)
Hawaiian Electric Industries, Inc.
2019 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 | 17 | |
Power Supply Information | 19 | |
American Savings Bank | ||
Selected Information | 21 | |
Statements of Income Information | 22 | |
Balance Sheets Information | 23 | |
Other | ||
State of Hawaii Information | 24 | |
Appendix - Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures | 25 |
i
SELECTED FINANCIAL INFORMATION | ||||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||||||||
Results of operations | ||||||||||||||||||||||
Revenues | $ | 2,874,601 | $ | 2,860,849 | $ | 2,555,625 | $ | 2,380,654 | $ | 2,602,982 | ||||||||||||
Net income for common stock | 217,882 | 201,774 | 165,297 | 248,256 | 159,877 | |||||||||||||||||
Basic earnings per common share | 2.00 | 1.85 | 1.52 | 2.30 | 1.50 | |||||||||||||||||
Diluted earnings per common share | 1.99 | 1.85 | 1.52 | 2.29 | 1.50 | |||||||||||||||||
Dividends per common share | 1.28 | 1.24 | 1.24 | 1.24 | 1.24 | |||||||||||||||||
Operating income (loss) | ||||||||||||||||||||||
Electric utility | $ | 254,378 | $ | 241,661 | $ | 263,524 | $ | 290,070 | $ | 274,116 | ||||||||||||
Bank | 111,562 | 108,235 | 99,536 | 88,227 | 83,812 | |||||||||||||||||
Other | (17,266 | ) | (16,540 | ) | (16,827 | ) | (22,459 | ) | (35,375 | ) | ||||||||||||
$ | 348,674 | $ | 333,356 | $ | 346,233 | $ | 355,838 | $ | 322,553 | |||||||||||||
Assets 1 | ||||||||||||||||||||||
Electric utility | $ | 6,388,682 | $ | 5,967,503 | $ | 5,630,613 | $ | 5,431,903 | $ | 5,166,123 | ||||||||||||
Bank | 7,233,017 | 7,027,894 | 6,798,659 | 6,421,357 | 6,014,755 | |||||||||||||||||
Other | 123,552 | 108,654 | 104,888 | 28,721 | 95,053 | |||||||||||||||||
$ | 13,745,251 | $ | 13,104,051 | $ | 12,534,160 | $ | 11,881,981 | $ | 11,275,931 | |||||||||||||
Capital structure 1, 2 | ||||||||||||||||||||||
Short-term borrowings - other than bank | $ | 185,710 | $ | 73,992 | $ | 117,945 | $ | — | $ | 103,063 | ||||||||||||
Long-term debt, net - other than bank | 1,964,365 | 1,879,641 | 1,683,797 | 1,619,019 | 1,578,368 | |||||||||||||||||
Preferred stock of subsidiaries | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | |||||||||||||||||
Common stock equity | 2,280,260 | 2,162,280 | 2,097,386 | 2,066,753 | 1,927,640 | |||||||||||||||||
$ | 4,464,628 | $ | 4,150,206 | $ | 3,933,421 | $ | 3,720,065 | $ | 3,643,364 | |||||||||||||
Capital structure ratios 1, 2 | ||||||||||||||||||||||
Short-term borrowings - other than bank | 4.2 | % | 1.8 | % | 3.0 | % | -- % | 2.9 | % | |||||||||||||
Long-term debt, net - other than bank | 44.0 | 45.3 | 42.8 | 43.5 | 43.3 | |||||||||||||||||
Preferred stock of subsidiaries | 0.8 | 0.8 | 0.9 | 0.9 | 0.9 | |||||||||||||||||
Common stock equity | 51.0 | 52.1 | 53.3 | 55.6 | 52.9 | |||||||||||||||||
100.0 | % | 100.0 | % | 100.0% | 100.0% | 100.0% | ||||||||||||||||
Key financial ratios | ||||||||||||||||||||||
Market price to book value per common share 1 | 224 | % | 184 | % | 188 | % | 174 | % | 161 | % | ||||||||||||
Price earnings ratio 3 | 23.5x | 19.8x | 23.8x | 14.4x | 19.3x | |||||||||||||||||
Return on average common equity | 9.8 | % | 9.5 | % | 7.9 | % | 12.4 | % | 8.6 | % | ||||||||||||
Indicated annual yield 1 | 2.7 | % | 3.4 | % | 3.4 | % | 3.7 | % | 4.3 | % | ||||||||||||
Dividend payout ratio | 64 | % | 67 | % | 82 | % | 54 | % | 82 | % | ||||||||||||
Full-time employees | ||||||||||||||||||||||
Hawaiian Electric and its subsidiaries | 2,670 | 2,704 | 2,724 | 2,662 | 2,727 | |||||||||||||||||
ASB | 1,126 | 1,148 | 1,115 | 1,093 | 1,152 | |||||||||||||||||
Consolidated HEI | 3,841 | 3,898 | 3,880 | 3,796 | 3,918 | |||||||||||||||||
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 have been updated to reflect the retrospective adoption of Accounting Standards Update (ASU) No. 2015-03. Financial data for periods prior to December 31, 2018 (but after December 31, 2015) have been updated to reflect the retrospective adoption of ASU No. 2017-07. Financial data for periods prior to December 31, 2018 have been updated to reflect the reclassification of contributions in aid of construction balances from liabilities to assets, which reduced the respective balances. | |||||||||||||||||||||
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 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Electric utility | $ | 2,545,942 | $ | 2,546,525 | $ | 2,257,566 | $ | 2,094,368 | $ | 2,335,166 | |||||||||||
Bank | 328,570 | 314,275 | 297,640 | 285,924 | 267,733 | ||||||||||||||||
Other | 89 | 49 | 419 | 362 | 83 | ||||||||||||||||
Total revenues | 2,874,601 | 2,860,849 | 2,555,625 | 2,380,654 | 2,602,982 | ||||||||||||||||
Expenses | |||||||||||||||||||||
Electric utility | 2,291,564 | 2,304,864 | 1,994,042 | 1,804,298 | 2,061,050 | ||||||||||||||||
Bank | 217,008 | 206,040 | 198,104 | 197,697 | 183,921 | ||||||||||||||||
Other | 17,355 | 16,589 | 17,246 | 22,821 | 35,458 | ||||||||||||||||
Total expenses | 2,525,927 | 2,527,493 | 2,209,392 | 2,024,816 | 2,280,429 | ||||||||||||||||
Operating income (loss) | |||||||||||||||||||||
Electric utility | 254,378 | 241,661 | 263,524 | 290,070 | 274,116 | ||||||||||||||||
Bank | 111,562 | 108,235 | 99,536 | 88,227 | 83,812 | ||||||||||||||||
Other | (17,266 | ) | (16,540 | ) | (16,827 | ) | (22,459 | ) | (35,375 | ) | |||||||||||
Total operating income | 348,674 | 333,356 | 346,233 | 355,838 | 322,553 | ||||||||||||||||
Merger termination fee | — | — | — | 90,000 | — | ||||||||||||||||
Retirement defined benefits expense—other than service costs | (2,806 | ) | (5,962 | ) | (7,942 | ) | (7,663 | ) | — | ||||||||||||
Interest expense, net—other than on deposit liabilities and other bank borrowings | (90,899 | ) | (88,677 | ) | (78,972 | ) | (75,803 | ) | (77,150 | ) | |||||||||||
Allowance for borrowed funds used during construction | 4,453 | 4,867 | 4,778 | 3,144 | 2,457 | ||||||||||||||||
Allowance for equity funds used during construction | 11,987 | 10,877 | 12,483 | 8,325 | 6,928 | ||||||||||||||||
Income before income taxes | 271,409 | 254,461 | 276,580 | 373,841 | 254,788 | ||||||||||||||||
Income taxes | 51,637 | 50,797 | 109,393 | 123,695 | 93,021 | ||||||||||||||||
Net income | 219,772 | 203,664 | 167,187 | 250,146 | 161,767 | ||||||||||||||||
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | 1,890 | 1,890 | ||||||||||||||||
Net income for common stock | $ | 217,882 | $ | 201,774 | $ | 165,297 | $ | 248,256 | $ | 159,877 | |||||||||||
Basic earnings per common share | $ | 2.00 | $ | 1.85 | $ | 1.52 | $ | 2.30 | $ | 1.50 | |||||||||||
Diluted earnings per common share | $ | 1.99 | $ | 1.85 | $ | 1.52 | $ | 2.29 | $ | 1.50 | |||||||||||
Weighted-average number of common shares outstanding | 108,949 | 108,855 | 108,749 | 108,102 | 106,418 | ||||||||||||||||
Weighted-average shares assuming dilution | 109,407 | 109,146 | 108,933 | 108,309 | 106,721 | ||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME INFORMATION | |||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net income for common stock | $ | 217,882 | $ | 201,774 | $ | 165,297 | $ | 248,256 | $ | 159,877 | |||||||||||
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 | 27,382 | (9,472 | ) | (4,370 | ) | (5,699 | ) | (2,334 | ) | ||||||||||||
Reclassification adjustment for net realized gains included in net income, net of taxes | (478 | ) | — | — | (360 | ) | — | ||||||||||||||
Derivatives qualified as cash flow hedges: | |||||||||||||||||||||
Effective portion of foreign currency hedge net unrealized losses, net of tax benefits | — | — | — | (281 | ) | — | |||||||||||||||
Unrealized interest rate hedging losses, net of tax benefits | (1,177 | ) | (436 | ) | — | — | — | ||||||||||||||
Reclassification adjustment to net income, net of taxes | — | — | 454 | (119 | ) | 235 | |||||||||||||||
Retirement benefit plans: | |||||||||||||||||||||
Net gains (losses) arising during the period, net of taxes | 10,914 | (28,101 | ) | 65,531 | (43,510 | ) | 5,889 | ||||||||||||||
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 | 10,107 | 21,015 | 15,737 | 14,518 | 22,465 | ||||||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (16,177 | ) | 8,325 | (78,724 | ) | 28,584 | (25,139 | ) | |||||||||||||
Other comprehensive income (loss), net of taxes | 30,571 | (8,669 | ) | (1,372 | ) | (6,867 | ) | 1,116 | |||||||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ | 248,453 | $ | 193,105 | $ | 163,925 | $ | 241,389 | $ | 160,993 | |||||||||||
Note: | See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. Income statement amounts for periods prior to December 31, 2018 (but after December 31, 2015) have been updated to reflect the retrospective adoption of ASU No. 2017-07. A reconciliation of GAAP to non-GAAP measures is located in the Appendix. |
2
CONSOLIDATED BALANCE SHEETS INFORMATION | |||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 196,813 | $ | 169,208 | $ | 261,881 | $ | 278,452 | $ | 300,478 | |||||||||||
Restricted cash | 30,872 | — | — | — | — | ||||||||||||||||
Accounts receivable and unbilled revenues, net | 300,794 | 325,672 | 263,209 | 237,950 | 242,766 | ||||||||||||||||
Available-for-sale investment securities, at fair value | 1,232,826 | 1,388,533 | 1,401,198 | 1,105,182 | 820,648 | ||||||||||||||||
Held-to-maturity investment securities, at amortized cost | 139,451 | 141,875 | 44,515 | — | — | ||||||||||||||||
Stock in Federal Home Loan Bank, at cost | 8,434 | 9,958 | 9,706 | 11,218 | 10,678 | ||||||||||||||||
Loans, net | 5,080,107 | 4,792,707 | 4,628,381 | 4,701,977 | 4,570,412 | ||||||||||||||||
Property, plant and equipment, net | 5,109,628 | 4,830,118 | 4,460,248 | 4,059,940 | 3,871,571 | ||||||||||||||||
Operating lease right-of-use assets | 199,171 | — | — | — | — | ||||||||||||||||
Regulatory assets | 715,080 | 833,426 | 869,297 | 957,451 | 896,731 | ||||||||||||||||
Other | 649,885 | 530,364 | 513,535 | 447,621 | 480,457 | ||||||||||||||||
Goodwill | 82,190 | 82,190 | 82,190 | 82,190 | 82,190 | ||||||||||||||||
Total assets | $ | 13,745,251 | $ | 13,104,051 | $ | 12,534,160 | $ | 11,881,981 | $ | 11,275,931 | |||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Accounts, interest and dividends payable | $ | 245,574 | $ | 243,027 | $ | 219,551 | $ | 168,504 | $ | 164,565 | |||||||||||
Deposit liabilities | 6,271,902 | 6,158,852 | 5,890,597 | 5,548,929 | 5,025,254 | ||||||||||||||||
Short-term borrowings - other than bank | 185,710 | 73,992 | 117,945 | — | 103,063 | ||||||||||||||||
Other bank borrowings | 115,110 | 110,040 | 190,859 | 192,618 | 328,582 | ||||||||||||||||
Long-term debt, net - other than bank | 1,964,365 | 1,879,641 | 1,683,797 | 1,619,019 | 1,578,368 | ||||||||||||||||
Deferred income taxes | 379,324 | 372,518 | 388,430 | 728,806 | 680,877 | ||||||||||||||||
Operating lease liabilities | 199,571 | — | — | — | — | ||||||||||||||||
Regulatory liabilities | 972,310 | 950,236 | 880,770 | 410,693 | 371,543 | ||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 513,287 | 538,384 | 509,514 | 638,854 | 589,918 | ||||||||||||||||
Other | 583,545 | 580,788 | 521,018 | 473,512 | 471,828 | ||||||||||||||||
Total liabilities | 11,430,698 | 10,907,478 | 10,402,481 | 9,780,935 | 9,313,998 | ||||||||||||||||
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 | 1,678,257 | 1,669,267 | 1,662,491 | 1,660,910 | 1,629,136 | ||||||||||||||||
Retained earnings | 622,042 | 543,623 | 476,836 | 438,972 | 324,766 | ||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | (20,039 | ) | (50,610 | ) | (41,941 | ) | (33,129 | ) | (26,262 | ) | |||||||||||
Total shareholders' equity | 2,280,260 | 2,162,280 | 2,097,386 | 2,066,753 | 1,927,640 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 13,745,251 | $ | 13,104,051 | $ | 12,534,160 | $ | 11,881,981 | $ | 11,275,931 | |||||||||||
Note: | See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. 2019 amounts reflect the adoption of ASU No. 2016-02; pursuant to an election permissible under such standard, the Company did not reassess its prior conclusions about whether expired or existing contracts are or contain leases. Periods prior to January 1, 2016 reflect the retrospective adoption of ASU No. 2015-03. Periods prior to December 31, 2018 have been updated to reflect the reclassification of contributions in aid of construction balances from liabilities to "Property, plant and equipment, net" assets, which reduced the respective balances. |
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, 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 | |||||||||||||||
Share-based plans | 195 | 5,578 | — | — | 5,578 | |||||||||||||||
Share-based expense and other, net | — | (6,922 | ) | — | — | (6,922 | ) | |||||||||||||
Common stock dividends ($1.24 per share) | — | — | (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 | |||||||||||||||
Share-based expense and other, net | — | (4,368 | ) | — | — | (4,368 | ) | |||||||||||||
Common stock dividends ($1.24 per share) | — | — | (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: | ||||||||||||||||||||
Share-based plans | 205 | 4,664 | — | — | 4,664 | |||||||||||||||
Share-based expense and other, net | — | (3,083 | ) | — | — | (3,083 | ) | |||||||||||||
Common stock dividends ($1.24 per share) | — | — | (134,873 | ) | — | (134,873 | ) | |||||||||||||
Balance, December 31, 2017 | 108,788 | 1,662,491 | 476,836 | (41,941 | ) | 2,097,386 | ||||||||||||||
Net income for common stock | — | — | 201,774 | — | 201,774 | |||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | (8,669 | ) | (8,669 | ) | |||||||||||||
Issuance of common stock: | ||||||||||||||||||||
Share-based plans | 91 | 2,650 | — | — | 2,650 | |||||||||||||||
Share-based expense and other, net | — | 4,126 | — | — | 4,126 | |||||||||||||||
Common stock dividends ($1.24 per share) | — | — | (134,987 | ) | — | (134,987 | ) | |||||||||||||
Balance, December 31, 2018 | 108,879 | 1,669,267 | 543,623 | (50,610 | ) | 2,162,280 | ||||||||||||||
Net income for common stock | — | — | 217,882 | — | 217,882 | |||||||||||||||
Other comprehensive income, net of tax benefits | — | — | — | 30,571 | 30,571 | |||||||||||||||
Issuance of common stock: | ||||||||||||||||||||
Share-based plans | 94 | 3,092 | — | — | 3,092 | |||||||||||||||
Share-based expense and other, net | — | 5,898 | — | — | 5,898 | |||||||||||||||
Common stock dividends ($1.28 per share) | — | — | (139,463 | ) | — | (139,463 | ) | |||||||||||||
Balance, December 31, 2019 | 108,973 | $ | 1,678,257 | $ | 622,042 | $ | (20,039 | ) | $ | 2,280,260 | ||||||||||
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 | 2019 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 219,772 | $ | 203,664 | $ | 167,187 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||
Depreciation of property, plant and equipment | 229,858 | 214,036 | 200,658 | |||||||||||
Other amortization | 48,255 | 41,593 | 21,340 | |||||||||||
Provision for loan losses | 23,480 | 14,745 | 10,901 | |||||||||||
Loans originated, held for sale | (285,042 | ) | (109,537 | ) | (115,104 | ) | ||||||||
Proceeds from sale of loans, held for sale | 277,119 | 112,182 | 127,951 | |||||||||||
Gain on sale of real estate, held for sale | (10,762 | ) | — | — | ||||||||||
Deferred income taxes | (15,085 | ) | (9,368 | ) | 37,835 | |||||||||
Share-based compensation expense | 9,986 | 7,792 | 5,404 | |||||||||||
Allowance for equity funds used during construction | (11,987 | ) | (10,877 | ) | (12,483 | ) | ||||||||
Other | 10,822 | (4,219 | ) | (3,324 | ) | |||||||||
Changes in assets and liabilities | ||||||||||||||
Decrease (increase) in accounts receivable and unbilled revenues, net | 26,083 | (64,321 | ) | (12,875 | ) | |||||||||
Decrease (increase) in fuel oil stock | (11,493 | ) | 7,054 | (20,794 | ) | |||||||||
Decrease (increase) in regulatory assets | 71,262 | 9,252 | (17,256 | ) | ||||||||||
Increase (decrease) in accounts, interest and dividends payable | (3,054 | ) | 21,528 | 34,985 | ||||||||||
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (27,538 | ) | 29,429 | 20,685 | ||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans | (4,482 | ) | 20,871 | 882 | ||||||||||
Change in other assets and liabilities | (34,724 | ) | 15,488 | (25,551 | ) | |||||||||
Net cash provided by operating activities | 512,470 | 499,312 | 420,441 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Available-for-sale investment securities purchased | (108,088 | ) | (224,335 | ) | (528,379 | ) | ||||||||
Principal repayments on available-for-sale investment securities | 272,949 | 218,930 | 220,231 | |||||||||||
Proceeds from sale of available-for-sale investment securities | 19,810 | — | — | |||||||||||
Purchases of held-to-maturity investment securities | (13,057 | ) | (103,184 | ) | (44,515 | ) | ||||||||
Proceeds from repayments or maturities of held-to-maturity investment securities | 15,505 | 5,720 | — | |||||||||||
Purchase of stock from Federal Home Loan Bank | (95,636 | ) | (28,292 | ) | (2,868 | ) | ||||||||
Redemption of stock from Federal Home Loan Bank | 97,160 | 28,040 | 4,380 | |||||||||||
Net decrease (increase) in loans held for investment | (300,210 | ) | (189,352 | ) | 15,887 | |||||||||
Proceeds from sale of commercial loans | — | 7,149 | 36,760 | |||||||||||
Proceeds from sale of real estate held for sale | 21,060 | — | — | |||||||||||
Capital expenditures1 | (457,520 | ) | (506,770 | ) | (430,454 | ) | ||||||||
Contributions to low income housing investments | (6,974 | ) | (14,499 | ) | (17,505 | ) | ||||||||
Acquisition of business | — | — | (76,323 | ) | ||||||||||
Other, net | 13,292 | 14,534 | 7,487 | |||||||||||
Net cash used in investing activities | $ | (541,709 | ) | $ | (792,059 | ) | $ | (815,299 | ) | |||||
(Continued on next page) |
5
CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION (Continued) | ||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | ||||||||||||||
Unaudited | ||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
Cash flows from financing activities | ||||||||||||||
Net increase in deposit liabilities | $ | 113,050 | $ | 165,880 | $ | 341,668 | ||||||||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | 86,718 | (18,999 | ) | 67,992 | ||||||||||
Proceeds from issuance of short-term debt | 75,000 | 25,000 | 125,000 | |||||||||||
Repayment of short-term debt | (50,000 | ) | (50,000 | ) | (75,000 | ) | ||||||||
Net increase in other bank borrowings with original maturities of three months or less1 | 5,070 | 71,556 | 61,776 | |||||||||||
Repayments of other bank borrowings1 | — | (50,000 | ) | (63,534 | ) | |||||||||
Proceeds from issuance of long-term debt | 289,349 | 250,000 | 532,325 | |||||||||||
Repayment of long-term debt and funds transferred for repayment of long term debt | (287,285 | ) | (53,887 | ) | (465,000 | ) | ||||||||
Withheld shares for employee taxes on vested share-based compensation | (997 | ) | (996 | ) | (3,828 | ) | ||||||||
Common stock dividends | (139,463 | ) | (134,987 | ) | (134,873 | ) | ||||||||
Preferred stock dividends of subsidiaries | (1,890 | ) | (1,890 | ) | (1,890 | ) | ||||||||
Other | (1,836 | ) | (1,603 | ) | (6,349 | ) | ||||||||
Net cash provided by financing activities | 87,716 | 200,074 | 378,287 | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 58,477 | (92,673 | ) | (16,571 | ) | |||||||||
Cash, cash equivalents and restricted cash, January 1 | 169,208 | 261,881 | 278,452 | |||||||||||
Cash, cash equivalents and restricted cash, December 31 | 227,685 | 169,208 | 261,881 | |||||||||||
Less: Restricted cash | (30,872 | ) | — | — | ||||||||||
Cash and cash equivalents, December 31 | $ | 196,813 | $ | 169,208 | $ | 261,881 | ||||||||
Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. | ||||||||||||||
1 | Reclassifications made to prior year amounts to conform to 2019 presentation include classifying contributions in aid of construction (CIAC) with capital expenditures in the cash flows from investing activities section. In addition, prior period disclosure of proceeds and repayments of other bank borrowings and the net increase in retail repurchase agreements contained in the "Net cash provided by financing activities" section have been combined, due to the short-term nature of the transactions, to conform to the current period presentation. |
6
CONSOLIDATED CAPITAL STRUCTURE | ||||||||||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Short-term borrowings - other than bank 1 | $ | 185,710 | $ | 73,992 | $ | 117,945 | $ | — | $ | 103,063 | ||||||||||||||||||
Long-term debt - other than bank 1 | ||||||||||||||||||||||||||||
Long-term debt of electric utility subsidiaries 2 | 1,497,667 | 1,418,802 | 1,368,479 | 1,319,260 | 1,278,702 | |||||||||||||||||||||||
HEI 2.99% term loan, due 2022 | 150,000 | 150,000 | 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 4.58% senior notes, due 2025 | 50,000 | 50,000 | — | — | — | |||||||||||||||||||||||
HEI 4.72% senior notes, due 2028 | 100,000 | 100,000 | — | — | — | |||||||||||||||||||||||
HEI term loan LIBOR + .75%, paid in 2017 | — | — | — | 125,000 | 125,000 | |||||||||||||||||||||||
HEI term loan LIBOR + .75%, paid in 2017 | — | — | — | 75,000 | — | |||||||||||||||||||||||
HEI 4.41% senior notes, paid in 2016 | — | — | — | — | 75,000 | |||||||||||||||||||||||
Hamakua Energy 4.02% notes, due 2030 | 59,699 | 63,438 | 67,325 | — | — | |||||||||||||||||||||||
Mauo LIBOR + 1.375% loan, due 2022 | 9,349 | — | — | — | — | |||||||||||||||||||||||
Less unamortized debt issuance cost | (2,350 | ) | (2,599 | ) | (2,007 | ) | (241 | ) | (334 | ) | ||||||||||||||||||
1,964,365 | 1,879,641 | 1,683,797 | 1,619,019 | 1,578,368 | ||||||||||||||||||||||||
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 | 1,678,257 | 1,669,267 | 1,662,491 | 1,660,910 | 1,629,136 | |||||||||||||||||||||||
Retained earnings | 622,042 | 543,623 | 476,836 | 438,972 | 324,766 | |||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | (20,039 | ) | (50,610 | ) | (41,941 | ) | (33,129 | ) | (26,262 | ) | ||||||||||||||||||
2,280,260 | 2,162,280 | 2,097,386 | 2,066,753 | 1,927,640 | ||||||||||||||||||||||||
$ | 4,464,628 | $ | 4,150,206 | $ | 3,933,421 | $ | 3,720,065 | $ | 3,643,364 | |||||||||||||||||||
LONG-TERM DEBT MATURITIES as of December 31, 2019 | ||||||||||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Long-term debt - other than bank 1 | ||||||||||||||||||||||||||||
Electric utilities2 | $ | 96,000 | $ | — | $ | 52,000 | $ | 100,000 | $ | — | $ | 1,257,000 | $ | 1,505,000 | ||||||||||||||
HEI | — | 50,000 | 150,000 | 50,000 | — | 150,000 | 400,000 | |||||||||||||||||||||
Hamakua Energy | 3,669 | 3,864 | 4,146 | 4,325 | 4,669 | 39,026 | 59,699 | |||||||||||||||||||||
Mauo | 2,349 | — | 7,000 | — | — | — | 9,349 | |||||||||||||||||||||
Less unamortized debt issuance cost | (9,683 | ) | ||||||||||||||||||||||||||
$ | 102,018 | $ | 53,864 | $ | 213,146 | $ | 154,325 | $ | 4,669 | $ | 1,446,026 | $ | 1,964,365 | |||||||||||||||
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 to 16 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 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Net income (loss) for common stock by company | |||||||||||||||||||||||||
Electric utilities | |||||||||||||||||||||||||
Hawaiian Electric | $ | 113,673 | $ | 98,260 | $ | 81,894 | $ | 99,926 | $ | 92,794 | |||||||||||||||
Hawaii Electric Light | 20,817 | 24,481 | 20,146 | 21,255 | 20,755 | ||||||||||||||||||||
Maui Electric | 22,350 | 20,912 | 17,911 | 21,136 | 22,165 | ||||||||||||||||||||
Utilities consolidated | 156,840 | 143,653 | 119,951 | 142,317 | 135,714 | ||||||||||||||||||||
ASB | 88,973 | 82,509 | 66,997 | 57,279 | 54,730 | ||||||||||||||||||||
HEI and other | (27,931 | ) | (24,388 | ) | (21,651 | ) | 48,660 | (30,567 | ) | ||||||||||||||||
Consolidated HEI | $ | 217,882 | $ | 201,774 | $ | 165,297 | $ | 248,256 | $ | 159,877 | |||||||||||||||
Diluted earnings per common share | $ | 1.99 | $ | 1.85 | $ | 1.52 | $ | 2.29 | $ | 1.50 | |||||||||||||||
Return on average common equity by company (simple average) | |||||||||||||||||||||||||
Electric utilities | |||||||||||||||||||||||||
Hawaiian Electric | 8.0 | % | 7.4 | % | 6.5 | % | 8.3 | % | 8.0 | % | |||||||||||||||
Hawaii Electric Light | 7.0 | 8.4 | 7.0 | 7.3 | 7.2 | ||||||||||||||||||||
Maui Electric | 7.8 | 7.6 | 6.8 | 8.1 | 8.5 | ||||||||||||||||||||
Utilities consolidated | 7.8 | 7.6 | 6.6 | 8.1 | 8.0 | ||||||||||||||||||||
ASB | 13.3 | 13.3 | 11.3 | 10.1 | 10.0 | ||||||||||||||||||||
Consolidated HEI | 9.8 | % | 9.5 | % | 7.9 | % | 12.4 | % | 8.6 | % | |||||||||||||||
8
SELECTED FINANCIAL INFORMATION | ||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||||
CAPITAL STRUCTURE1 | ||||||||||||||||||||||
Long-term debt, net, including current portion2 | $ | 1,497,667 | $ | 1,418,802 | $ | 1,368,479 | $ | 1,319,260 | $ | 1,278,702 | ||||||||||||
Preferred stock | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | |||||||||||||||||
Common stock equity | 2,047,352 | 1,957,641 | 1,845,283 | 1,799,787 | 1,728,325 | |||||||||||||||||
$ | 3,579,312 | $ | 3,410,736 | $ | 3,248,055 | $ | 3,153,340 | $ | 3,041,320 | |||||||||||||
CAPITAL STRUCTURE RATIOS (%) 1,2 | ||||||||||||||||||||||
Long-term debt, net, including current portion | 41.8 | 41.6 | 42.1 | 41.8 | 42.1 | |||||||||||||||||
Preferred stock | 1.0 | 1.0 | 1.1 | 1.1 | 1.1 | |||||||||||||||||
Common stock equity | 57.2 | 57.4 | 56.8 | 57.1 | 56.8 | |||||||||||||||||
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||||
KEY FINANCIAL RATIOS (%) | ||||||||||||||||||||||
Authorized return on rate base 3 | ||||||||||||||||||||||
Hawaiian Electric | 7.57 | 7.57 | 7.57 | 8.11 | 8.11 | |||||||||||||||||
Hawaii Electric Light | 7.52 | 7.80 | 7.80 | 8.31 | 8.31 | |||||||||||||||||
Maui Electric | 7.43 | 7.43 | 7.34 | 7.34 | 7.34 | |||||||||||||||||
Earned rate-making return on simple average rate base 4 | ||||||||||||||||||||||
Hawaiian Electric | 6.90 | 6.55 | 6.08 | 7.48 | 7.39 | |||||||||||||||||
Hawaii Electric Light | 5.97 | 6.98 | 6.54 | 6.73 | 6.58 | |||||||||||||||||
Maui Electric | 6.37 | 6.26 | 6.10 | 6.99 | 7.19 | |||||||||||||||||
Authorized return on simple average common equity 3 | ||||||||||||||||||||||
Hawaiian Electric | 9.50 | 9.50 | 9.50 | 10.00 | 10.00 | |||||||||||||||||
Hawaii Electric Light | 9.50 | 9.50 | 9.50 | 10.00 | 10.00 | |||||||||||||||||
Maui Electric | 9.50 | 9.50 | 9.00 | 9.00 | 9.00 | |||||||||||||||||
Earned rate-making return on simple average common equity 5 | ||||||||||||||||||||||
Hawaiian Electric | 8.80 | 7.89 | 6.83 | 9.46 | 9.20 | |||||||||||||||||
Hawaii Electric Light | 6.72 | 8.08 | 7.30 | 7.61 | 7.49 | |||||||||||||||||
Maui Electric | 7.95 | 7.38 | 6.84 | 8.34 | 8.76 | |||||||||||||||||
Book return on simple average common equity 6 | ||||||||||||||||||||||
Hawaiian Electric | 8.02 | 7.36 | 6.46 | 8.26 | 8.02 | |||||||||||||||||
Hawaii Electric Light | 7.00 | 8.41 | 6.97 | 7.28 | 7.22 | |||||||||||||||||
Maui Electric | 7.79 | 7.59 | 6.76 | 8.08 | 8.52 | |||||||||||||||||
RATE BASE (in millions, simple average) | ||||||||||||||||||||||
Hawaiian Electric | $ | 2,289 | 7 | $ | 2,125 | $ | 1,975 | $ | 1,879 | $ | 1,814 | |||||||||||
Hawaii Electric Light | 521 | 7 | 505 | 490 | 482 | 479 | ||||||||||||||||
Maui Electric | 493 | 7 | 462 | 438 | 431 | 440 | ||||||||||||||||
$ | 3,303 | $ | 3,092 | $ | 2,903 | $ | 2,792 | $ | 2,733 | |||||||||||||
DEPRECIATION AND AFUDC (%) | ||||||||||||||||||||||
Composite annual depreciation rate | 3.2 | 3.2 | 3.2 | 3.2 | 3.2 | |||||||||||||||||
Accumulated depreciation as percent of gross plant 1,8 | 35.9 | 36.3 | 36.9 | 37.4 | 37.5 | |||||||||||||||||
Weighted-average AFUDC rate | 7.4 | 7.3 | 7.7 | 7.6 | 7.6 | |||||||||||||||||
1 | At December 31. | |||||||||||||||||||||
2 | Financial data for periods prior to January 1, 2016 have been updated to reflect the retrospective adoption of ASU No. 2015-03. | |||||||||||||||||||||
3 | Reflects latest interim or final decision and order as of the end of the respective years. | |||||||||||||||||||||
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 12/31/19 rate base amounts for Hawaiian Electric, Hawaii Electric Light and Maui Electric were $2,386, $527 and $512, respectively. | |||||||||||||||||||||
8 | Periods prior to December 31, 2018 have been updated to reflect the reclassification of contributions in aid of construction balances from liabilities to “Total property, plant and equipment, net”, which reduced the respective balances. |
9
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS INFORMATION | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | 2,545,942 | $ | 2,546,525 | $ | 2,257,566 | $ | 2,094,368 | $ | 2,335,166 | |||||||||||
Expenses | |||||||||||||||||||||
Fuel oil | 720,709 | 760,528 | 587,768 | 454,704 | 654,600 | ||||||||||||||||
Purchased power | 633,256 | 639,307 | 586,634 | 562,740 | 594,096 | ||||||||||||||||
Other operation and maintenance 1 | 481,737 | 461,491 | 411,907 | 399,931 | 413,089 | ||||||||||||||||
Depreciation | 215,731 | 203,626 | 192,784 | 187,061 | 177,380 | ||||||||||||||||
Taxes, other than income taxes | 240,131 | 239,912 | 214,949 | 199,862 | 221,885 | ||||||||||||||||
Total expenses 1 | 2,291,564 | 2,304,864 | 1,994,042 | 1,804,298 | 2,061,050 | ||||||||||||||||
Operating income 1 | 254,378 | 241,661 | 263,524 | 290,070 | 274,116 | ||||||||||||||||
Allowance for equity funds used during construction | 11,987 | 10,877 | 12,483 | 8,325 | 6,928 | ||||||||||||||||
Retirement defined benefits expense - other than service costs1 | (2,836 | ) | (3,631 | ) | (6,003 | ) | (5,602 | ) | — | ||||||||||||
Interest expense and other charges, net | (70,842 | ) | (73,348 | ) | (69,637 | ) | (66,824 | ) | (66,370 | ) | |||||||||||
Allowance for borrowed funds used during construction | 4,453 | 4,867 | 4,778 | 3,144 | 2,457 | ||||||||||||||||
Income before income taxes | 197,140 | 180,426 | 205,145 | 229,113 | 217,131 | ||||||||||||||||
Income taxes | 38,305 | 34,778 | 83,199 | 84,801 | 79,422 | ||||||||||||||||
Net income | 158,835 | 145,648 | 121,946 | 144,312 | 137,709 | ||||||||||||||||
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | 915 | 915 | ||||||||||||||||
Net income attributable to Hawaiian Electric | 157,920 | 144,733 | 121,031 | 143,397 | 136,794 | ||||||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | 1,080 | 1,080 | ||||||||||||||||
Net income for common stock | 156,840 | 143,653 | 119,951 | 142,317 | 135,714 | ||||||||||||||||
Retained earnings, January 1 | 1,164,541 | 1,124,193 | 1,091,800 | 1,043,082 | 997,773 | ||||||||||||||||
Reclass of AOCI for tax rate reduction impact | — | — | 209 | — | — | ||||||||||||||||
Common stock dividends | (101,252 | ) | (103,305 | ) | (87,767 | ) | (93,599 | ) | (90,405 | ) | |||||||||||
Retained earnings, December 31 | $ | 1,220,129 | $ | 1,164,541 | $ | 1,124,193 | $ | 1,091,800 | $ | 1,043,082 | |||||||||||
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. | ||||||||||||||||||||
1 Amounts for periods prior to December 31, 2018 (but after December 31, 2015) have been updated to reflect the retrospective adoption of ASU No. 2017-07. |
10
CONSOLIDATED BALANCE SHEETS INFORMATION | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||
Utility property, plant and equipment 1 | $ | 7,485,178 | $ | 7,092,483 | $ | 6,717,311 | $ | 6,327,102 | $ | 6,037,712 | |||||||||||
Less accumulated depreciation | (2,690,157 | ) | (2,577,342 | ) | (2,476,352 | ) | (2,369,282 | ) | (2,266,004 | ) | |||||||||||
Utility property, plant and equipment, net 1 | 4,795,021 | 4,515,141 | 4,240,959 | 3,957,820 | 3,771,708 | ||||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 6,956 | 6,961 | 7,580 | 7,407 | 7,272 | ||||||||||||||||
Total property, plant and equipment, net 1 | 4,801,977 | 4,522,102 | 4,248,539 | 3,965,227 | 3,778,980 | ||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and equivalents | 11,022 | 35,877 | 12,517 | 74,286 | 24,449 | ||||||||||||||||
Restricted cash | 30,872 | — | — | — | — | ||||||||||||||||
Customer accounts receivable, net | 152,790 | 177,896 | 127,889 | 123,688 | 132,778 | ||||||||||||||||
Accrued unbilled revenues, net | 117,227 | 121,738 | 107,054 | 91,693 | 84,509 | ||||||||||||||||
Other accounts receivable, net | 11,568 | 6,215 | 7,163 | 5,233 | 10,408 | ||||||||||||||||
Fuel oil stock, at average cost | 91,937 | 79,935 | 86,873 | 66,430 | 71,216 | ||||||||||||||||
Materials and supplies, at average cost | 60,702 | 55,204 | 54,397 | 53,679 | 54,429 | ||||||||||||||||
Prepayments and other | 116,980 | 32,118 | 25,355 | 23,100 | 36,640 | ||||||||||||||||
Regulatory assets | 30,710 | 71,016 | 88,390 | 66,032 | 72,231 | ||||||||||||||||
Total current assets | 623,808 | 579,999 | 509,638 | 504,141 | 486,660 | ||||||||||||||||
Other long-term assets | |||||||||||||||||||||
Operating lease right-of-use assets 2 | 176,809 | — | — | — | — | ||||||||||||||||
Regulatory assets | 684,370 | 762,410 | 780,907 | 891,419 | 824,500 | ||||||||||||||||
Other | 101,718 | 102,992 | 91,529 | 71,116 | 75,983 | ||||||||||||||||
Total other long-term assets | 962,897 | 865,402 | 872,436 | 962,535 | 900,483 | ||||||||||||||||
Total assets 1 | $ | 6,388,682 | $ | 5,967,503 | $ | 5,630,613 | $ | 5,431,903 | $ | 5,166,123 | |||||||||||
CAPITALIZATION AND LIABILITIES | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||
Common stock equity | $ | 2,047,352 | $ | 1,957,641 | $ | 1,845,283 | $ | 1,799,787 | $ | 1,728,325 | |||||||||||
Cumulative preferred stock - not subject to mandatory redemption | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||||||||
Long-term debt, net 3 | 1,401,714 | 1,418,802 | 1,318,516 | 1,319,260 | 1,278,702 | ||||||||||||||||
Total capitalization | 3,483,359 | 3,410,736 | 3,198,092 | 3,153,340 | 3,041,320 | ||||||||||||||||
Current liabilities | |||||||||||||||||||||
Current portion of operating lease liabilities 2 | 63,707 | — | — | — | — | ||||||||||||||||
Current portion of long-term debt, net | 95,953 | — | 49,963 | — | — | ||||||||||||||||
Short-term borrowings from non-affiliate | 88,987 | 25,000 | 4,999 | — | — | ||||||||||||||||
Accounts payable | 187,770 | 171,791 | 159,610 | 117,814 | 114,846 | ||||||||||||||||
Interest and preferred dividends payable | 20,728 | 23,215 | 22,575 | 22,838 | 23,111 | ||||||||||||||||
Taxes accrued, including revenue taxes | 207,992 | 233,333 | 199,101 | 172,730 | 191,084 | ||||||||||||||||
Regulatory liabilities | 30,724 | 17,977 | 3,401 | 3,762 | 2,204 | ||||||||||||||||
Other | 67,305 | 60,003 | 59,456 | 55,221 | 54,079 | ||||||||||||||||
Total current liabilities | 763,166 | 531,319 | 499,105 | 372,365 | 385,324 | ||||||||||||||||
Deferred credits and other liabilities | |||||||||||||||||||||
Operating lease liabilities 2 | 113,400 | — | — | — | — | ||||||||||||||||
Deferred income taxes | 377,150 | 383,197 | 394,041 | 733,659 | 654,806 | ||||||||||||||||
Regulatory liabilities | 941,586 | 932,259 | 877,369 | 406,931 | 369,339 | ||||||||||||||||
Unamortized tax credits | 117,868 | 91,522 | 90,369 | 88,961 | 84,214 | ||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 478,763 | 503,659 | 472,948 | 599,726 | 552,974 | ||||||||||||||||
Other | 113,390 | 114,811 | 98,689 | 76,921 | 78,146 | ||||||||||||||||
Total deferred credits and other liabilities | 2,142,157 | 2,025,448 | 1,933,416 | 1,906,198 | 1,739,479 | ||||||||||||||||
Total capitalization and liabilities 1 | $ | 6,388,682 | $ | 5,967,503 | $ | 5,630,613 | $ | 5,431,903 | $ | 5,166,123 | |||||||||||
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. | |||||||||||||||||||||
1 | Periods prior to December 31, 2018 have been updated to reflect the reclassification of contributions in aid of construction balances from liabilities to “Total property, plant and equipment, net”, which reduced the respective balances. | ||||||||||||||||||||
2 | 2019 amounts reflect the adoption of ASU No. 2016-02; pursuant to an election permissible under such standard, Hawaiian Electric did not reassess its prior conclusions about whether expired or existing contracts are or contain leases. | ||||||||||||||||||||
3 | Amounts for periods prior to January 1, 2016 have been updated to 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 | 2019 | 2018 | 2017 | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 158,835 | $ | 145,648 | $ | 121,946 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||
Depreciation of property, plant and equipment | 215,731 | 203,626 | 192,784 | ||||||||||||||
Other amortization | 29,631 | 26,602 | 8,498 | ||||||||||||||
Deferred income taxes | (16,284 | ) | (7,982 | ) | 38,037 | ||||||||||||
Income tax credits, net | 27,259 | (99 | ) | (52 | ) | ||||||||||||
State refundable credit | (8,369 | ) | (6,239 | ) | (2,251 | ) | |||||||||||
Allowance for equity funds used during construction | (11,987 | ) | (10,877 | ) | (12,483 | ) | |||||||||||
Other | 200 | 4,768 | 1,237 | ||||||||||||||
Changes in assets and liabilities | |||||||||||||||||
Decrease (decrease) in accounts receivable | 20,956 | (50,917 | ) | 2,914 | |||||||||||||
Decrease (increase) in accrued unbilled revenues | 4,511 | (14,684 | ) | (15,361 | ) | ||||||||||||
Decrease (increase) in fuel oil stock | (12,002 | ) | 6,938 | (20,443 | ) | ||||||||||||
Increase in materials and supplies | (5,498 | ) | (807 | ) | (718 | ) | |||||||||||
Decrease (increase) in regulatory assets | 71,262 | 9,252 | (17,256 | ) | |||||||||||||
Increase in regulatory liabilities | 1,953 | 37,358 | 3,602 | ||||||||||||||
Increase (decrease) in accounts payable | (2,051 | ) | 24,358 | 25,734 | |||||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (28,523 | ) | 25,036 | 29,862 | |||||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (4,448 | ) | 18,746 | 604 | |||||||||||||
Change in other assets and liabilities | (17,220 | ) | (17,114 | ) | (21,468 | ) | |||||||||||
Net cash provided by operating activities | 423,956 | 393,613 | 335,186 | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures 1 | (419,898 | ) | (415,264 | ) | (376,865 | ) | |||||||||||
Other | 11,374 | 10,082 | 4,578 | ||||||||||||||
Net cash used in investing activities | (408,524 | ) | (405,182 | ) | (372,287 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||
Common stock dividends | (101,252 | ) | (103,305 | ) | (87,767 | ) | |||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995 | ) | (1,995 | ) | (1,995 | ) | |||||||||||
Proceeds from issuance of common stock | 35,500 | 70,700 | 14,000 | ||||||||||||||
Proceeds from issuance of long-term debt | 280,000 | 100,000 | 315,000 | ||||||||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (283,546 | ) | (50,000 | ) | (265,000 | ) | |||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original | |||||||||||||||||
maturities of three months or less | 38,987 | (4,999 | ) | 4,999 | |||||||||||||
Proceeds from issuance of short-term debt | 75,000 | 25,000 | — | ||||||||||||||
Repayment of short-term debt | (50,000 | ) | — | — | |||||||||||||
Other | (2,109 | ) | (472 | ) | (3,905 | ) | |||||||||||
Net cash provided by (used in) financing activities | (9,415 | ) | 34,929 | (24,668 | ) | ||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 6,017 | 23,360 | (61,769 | ) | |||||||||||||
Cash, cash equivalents and restricted cash, January 1 | 35,877 | 12,517 | 74,286 | ||||||||||||||
Cash, cash equivalents and restricted cash, December 31 | 41,894 | 35,877 | 12,517 | ||||||||||||||
Less: Restricted cash | (30,872 | ) | — | — | |||||||||||||
Cash and cash equivalents, December 31 | $ | 11,022 | $ | 35,877 | $ | 12,517 | |||||||||||
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. | |||||||||||||||||
1 | Reclassifications made to prior year amounts to conform to 2019 presentation include classifying contributions in aid of construction (CIAC) with capital expenditures in the cash flows from investing activities section. |
12
CUMULATIVE PREFERRED STOCK NOT SUBJECT TO MANDATORY REDEMPTION | |||||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||||
December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||
(dollars in thousands, except par values) | |||||||||||||||||||||||||||
Shares outstanding | |||||||||||||||||||||||||||
Par value | 12/31/2019 | ||||||||||||||||||||||||||
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 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
OBLIGATIONS TO THE STATE OF HAWAII FOR THE | |||||||||||||||||||||
REPAYMENT OF SPECIAL PURPOSE REVENUE BONDS | |||||||||||||||||||||
Hawaiian Electric | |||||||||||||||||||||
Series 2007A, 4.65%, due 2037 - redeemed in 2017 | $ | — | $ | — | $ | — | $ | 100,000 | $ | 100,000 | |||||||||||
Refunding series 2007B, 4.60%, due 2026 - redeemed in 2017 | — | — | — | 62,000 | 62,000 | ||||||||||||||||
Series 2009, 6.50%, due 2039 - redeemed in 2019 | — | 90,000 | 90,000 | 90,000 | 90,000 | ||||||||||||||||
Refunding series 2015, 3.25%, due 2025 | 40,000 | 40,000 | 40,000 | 40,000 | 40,000 | ||||||||||||||||
Refunding series 2017A, 3.10%, due 2026 | 62,000 | 62,000 | 62,000 | — | — | ||||||||||||||||
Refunding series 2017B, 4.00%, due 2037 | 100,000 | 100,000 | 100,000 | — | — | ||||||||||||||||
Refunding series 2019, 3.20%, due 2039 | 90,000 | — | — | — | — | ||||||||||||||||
Series 2019, 3.50%, due 2049 | 70,000 | — | — | — | — | ||||||||||||||||
362,000 | 292,000 | 292,000 | 292,000 | 292,000 | |||||||||||||||||
Hawaii Electric Light | |||||||||||||||||||||
Series 2007A, 4.65%, due 2037 - redeemed in 2017 | — | — | — | 20,000 | 20,000 | ||||||||||||||||
Refunding series 2007B, 4.60%, due 2026 - redeemed in 2017 | — | — | — | 8,000 | 8,000 | ||||||||||||||||
Series 2009, 6.50%, due 2039 - redeemed in 2019 | — | 60,000 | 60,000 | 60,000 | 60,000 | ||||||||||||||||
Refunding series 2015, 3.25%, due 2025 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | ||||||||||||||||
Refunding series 2017A, 3.10%, due 2026 | 8,000 | 8,000 | 8,000 | — | — | ||||||||||||||||
Refunding series 2017B, 4.00%, due 2037 | 20,000 | 20,000 | 20,000 | — | — | ||||||||||||||||
Refunding series 2019, 3.20%, due 2039 | 60,000 | — | — | — | — | ||||||||||||||||
Series 2019, 3.50%, due 2049 | 2,500 | — | — | — | — | ||||||||||||||||
95,500 | 93,000 | 93,000 | 93,000 | 93,000 | |||||||||||||||||
Maui Electric | |||||||||||||||||||||
Series 2007A, 4.65%, due 2037 - redeemed in 2017 | — | — | — | 20,000 | 20,000 | ||||||||||||||||
Refunding series 2007B, 4.60%, due 2026 - redeemed in 2017 | — | — | — | 55,000 | 55,000 | ||||||||||||||||
Refunding series 2015, 3.25%, due 2025 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | ||||||||||||||||
Refunding series 2017A, 3.10%, due 2026 | 55,000 | 55,000 | 55,000 | — | — | ||||||||||||||||
Refunding series 2017B, 4.00%, due 2037 | 20,000 | 20,000 | 20,000 | — | — | ||||||||||||||||
Series 2019, 3.50%, due 2049 | 7,500 | — | — | — | — | ||||||||||||||||
84,500 | 77,000 | 77,000 | 77,000 | 77,000 | |||||||||||||||||
Total obligations to the State of Hawaii | $ | 542,000 | $ | 462,000 | $ | 462,000 | $ | 462,000 | $ | 462,000 | |||||||||||
(Continued on next page) |
14
LONG-TERM DEBT (Continued) | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
OTHER LONG-TERM DEBT (UNSECURED) | |||||||||||||||||||||
Taxable unsecured senior notes: | |||||||||||||||||||||
Hawaiian Electric | |||||||||||||||||||||
Series 2012A, 3.79%, due 2018 | $ | — | $ | — | $ | 30,000 | $ | 30,000 | $ | 30,000 | |||||||||||
Series 2012B, 4.03%, due 2020 | 62,000 | 62,000 | 62,000 | 62,000 | 62,000 | ||||||||||||||||
Series 2012C, 4.55%, due 2023 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||
Series 2012D, 4.72%, due 2029 | 35,000 | 35,000 | 35,000 | 35,000 | 35,000 | ||||||||||||||||
Series 2012E, 5.39%, due 2042 | 150,000 | 150,000 | 150,000 | 150,000 | 150,000 | ||||||||||||||||
Series 2012F, 4.53%, due 2032 | 40,000 | 40,000 | 40,000 | 40,000 | 40,000 | ||||||||||||||||
Series 2013A, 4.45%, due 2022 | 40,000 | 40,000 | 40,000 | 40,000 | 40,000 | ||||||||||||||||
Series 2013B, 4.84%, due 2027 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||
Series 2013C, 5.65%, due 2043 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||
Series 2015A, 5.23%, due 2045 | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||
Series 2016A, 4.54%, due 2046 | 40,000 | 40,000 | 40,000 | 40,000 | — | ||||||||||||||||
Series 2017A, 4.31%, due 2047 | 40,000 | 40,000 | 40,000 | — | — | ||||||||||||||||
Series 2018A, 4.38%, due 2028 | 52,000 | 52,000 | — | — | — | ||||||||||||||||
Series 2018B, 4.53%, due 2033 | 12,500 | 12,500 | — | — | — | ||||||||||||||||
Series 2018C, 4.72%, due 2048 | 10,500 | 10,500 | — | — | — | ||||||||||||||||
Series 2019A, 4.21%, due 2034 | 30,000 | — | — | — | — | ||||||||||||||||
712,000 | 682,000 | 637,000 | 597,000 | 557,000 | |||||||||||||||||
Hawaii Electric Light | |||||||||||||||||||||
Series 2012A, 3.79%, due 2018 | — | — | 11,000 | 11,000 | 11,000 | ||||||||||||||||
Series 2012B, 4.55%, due 2023 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Series 2013A, 3.83%, due 2020 | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | ||||||||||||||||
Series 2013B, 4.45%, due 2022 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | ||||||||||||||||
Series 2013C, 4.84%, due 2027 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | ||||||||||||||||
Series 2015A, 5.23%, due 2045 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | ||||||||||||||||
Series 2018A, 4.38%, due 2028 | 9,000 | 9,000 | — | — | — | ||||||||||||||||
Series 2018B, 4.53%, due 2033 | 3,000 | 3,000 | — | — | — | ||||||||||||||||
Series 2018C, 4.72%, due 2048 | 3,000 | 3,000 | — | — | — | ||||||||||||||||
Series 2019A, 4.21%, due 2034 | 10,000 | — | — | — | — | ||||||||||||||||
126,000 | 116,000 | 112,000 | 112,000 | 112,000 | |||||||||||||||||
Maui Electric | |||||||||||||||||||||
Series 2012A, 3.79%, due 2018 | — | — | 9,000 | 9,000 | 9,000 | ||||||||||||||||
Series 2012B, 4.03%, due 2020 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Series 2012C, 4.55%, due 2023 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | ||||||||||||||||
Series 2013A, 4.84%, due 2027 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Series 2013B, 5.65% due 2043 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Series 2015A, 5.23%, due 2045 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | ||||||||||||||||
Series 2017A, 4.31%, due 2047 | 10,000 | 10,000 | 10,000 | — | — | ||||||||||||||||
Series 2018A, 4.38%, due 2028 | 6,500 | 6,500 | — | — | — | ||||||||||||||||
Series 2018B, 4.53%, due 2033 | 2,000 | 2,000 | — | — | — | ||||||||||||||||
Series 2018C, 4.72%, due 2048 | 1,500 | 1,500 | — | — | — | ||||||||||||||||
Series 2019A, 4.21%, due 2034 | 10,000 | — | — | — | — | ||||||||||||||||
125,000 | 115,000 | 114,000 | 104,000 | 104,000 | |||||||||||||||||
Total taxable unsecured senior notes | $ | 963,000 | $ | 913,000 | $ | 863,000 | $ | 813,000 | $ | 773,000 | |||||||||||
(Continued on next page) |
15
LONG-TERM DEBT (Continued) | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
OTHER LONG-TERM DEBT (UNSECURED) | |||||||||||||||||||||
6.50%, series 2004, Junior subordinated deferrable interest | |||||||||||||||||||||
debentures, due 2034 - redeemed in 2019 | $ | — | $ | 51,546 | $ | 51,546 | $ | 51,546 | $ | 51,546 | |||||||||||
Long-term debt, including amounts due within one year | 1,505,000 | 1,426,546 | 1,376,546 | 1,326,546 | 1,286,546 | ||||||||||||||||
Less current portion of long-term debt, net | (95,953 | ) | — | (49,963 | ) | — | — | ||||||||||||||
Less unamortized debt issuance costs | (7,333 | ) | (7,744 | ) | (8,067 | ) | (7,286 | ) | (7,844 | ) | |||||||||||
Long-term debt, net | $ | 1,401,714 | $ | 1,418,802 | $ | 1,318,516 | $ | 1,319,260 | $ | 1,278,702 | |||||||||||
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. |
16
CUSTOMER, SALES AND REVENUE INFORMATION | |||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||
Unaudited | |||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||
SERVICE AREA 1 | |||||||||||||||||
Service area (square miles) | 5,815 | 5,815 | 5,815 | 5,815 | 5,815 | ||||||||||||
Service area population (estimated, in thousands) | n/a | 1,348 | 1,355 | 1,357 | 1,353 | ||||||||||||
CUSTOMER ACCOUNTS 2 | |||||||||||||||||
Residential | 409,689 | 407,505 | 406,241 | 402,818 | 400,655 | ||||||||||||
Commercial | 54,233 | 54,075 | 53,732 | 55,089 | 54,878 | ||||||||||||
Large light and power | 700 | 696 | 656 | 670 | 659 | ||||||||||||
Other | 844 | 813 | 1,596 | 1,585 | 1,608 | ||||||||||||
465,466 | 463,089 | 462,225 | 460,162 | 457,800 | |||||||||||||
CUSTOMER ACCOUNTS BY COMPANY 2 | |||||||||||||||||
Hawaiian Electric | 306,368 | 305,456 | 304,948 | 304,261 | 302,958 | ||||||||||||
Hawaii Electric Light | 86,576 | 85,758 | 85,925 | 85,029 | 84,309 | ||||||||||||
Maui Electric | 72,522 | 71,875 | 71,352 | 70,872 | 70,533 | ||||||||||||
Consolidated | 465,466 | 463,089 | 462,225 | 460,162 | 457,800 | ||||||||||||
KILOWATTHOUR SALES (millions) | |||||||||||||||||
Residential | 2,439 | 2,411 | 2,334 | 2,333 | 2,396 | ||||||||||||
Commercial | 2,793 | 2,811 | 2,868 | 2,911 | 2,978 | ||||||||||||
Large light and power | 3,467 | 3,425 | 3,443 | 3,555 | 3,533 | ||||||||||||
Other | 41 | 42 | 45 | 46 | 50 | ||||||||||||
8,740 | 8,689 | 8,690 | 8,845 | 8,957 | |||||||||||||
KILOWATTHOUR SALES MIX (%) | |||||||||||||||||
Residential | 27.9 | 27.7 | 26.9 | 26.4 | 26.8 | ||||||||||||
Commercial | 32.0 | 32.4 | 33.0 | 32.9 | 33.3 | ||||||||||||
Large light and power | 39.7 | 39.4 | 39.6 | 40.2 | 39.4 | ||||||||||||
Other | 0.4 | 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 | 6,563 | 6,526 | 6,548 | 6,660 | 6,754 | ||||||||||||
Hawaii Electric Light | 1,050 | 1,064 | 1,047 | 1,067 | 1,065 | ||||||||||||
Maui Electric | 1,127 | 1,099 | 1,095 | 1,118 | 1,138 | ||||||||||||
Consolidated | 8,740 | 8,689 | 8,690 | 8,845 | 8,957 | ||||||||||||
KILOWATTHOUR SALES GROWTH BY COMPANY (%) | |||||||||||||||||
Hawaiian Electric | 0.6 | (0.4 | ) | (1.7 | ) | (1.4 | ) | (0.4 | ) | ||||||||
Hawaii Electric Light | (1.4 | ) | 1.6 | (2.0 | ) | 0.2 | 0.2 | ||||||||||
Maui Electric | 2.5 | 0.4 | (2.1 | ) | (1.8 | ) | 0.5 | ||||||||||
Consolidated | 0.6 | — | (1.8 | ) | (1.3 | ) | (0.2 | ) | |||||||||
RENEWABLE GENERATION RPS (%) 3 | |||||||||||||||||
Hawaiian Electric | 25 | 22 | 21 | 19 | 17 | ||||||||||||
Hawaii Electric Light 4 | 35 | 44 | 57 | 54 | 49 | ||||||||||||
Maui Electric | 41 | 38 | 34 | 37 | 35 | ||||||||||||
Consolidated | 28 | 27 | 27 | 26 | 23 | ||||||||||||
1 | Source: State of Hawaii Data Book 2018 (prior years) | ||||||||||||||||
2 | At December 31 | ||||||||||||||||
3 | 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. | ||||||||||||||||
4 | The lower RPS% for Hawaii Electric Light in 2018 and 2019 is primarily due to Puna Geothermal Venture (PGV) being offline since May 2018 due to lava flow on Hawaii Island. | ||||||||||||||||
n/a: Not available | (Continued on next page) |
17
CUSTOMER, SALES AND REVENUE INFORMATION (Continued) | |||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
REVENUES (thousands) | |||||||||||||||||||||
Electric sales revenue | |||||||||||||||||||||
Residential | $ | 791,398 | $ | 788,028 | $ | 691,857 | $ | 638,776 | $ | 709,886 | |||||||||||
Commercial | 829,000 | 843,326 | 766,921 | 711,553 | 798,202 | ||||||||||||||||
Large light and power | 884,722 | 882,443 | 776,808 | 720,878 | 802,366 | ||||||||||||||||
Other | 11,915 | 12,410 | 12,009 | 11,306 | 13,356 | ||||||||||||||||
Total electric sales revenues | 2,517,035 | 2,526,207 | 2,247,595 | 2,082,513 | 2,323,810 | ||||||||||||||||
Other revenues | 28,907 | 20,318 | 9,971 | 11,855 | 11,356 | ||||||||||||||||
Total revenues | $ | 2,545,942 | $ | 2,546,525 | $ | 2,257,566 | $ | 2,094,368 | $ | 2,335,166 | |||||||||||
Less: | |||||||||||||||||||||
Fuel oil | 720,709 | 760,528 | 587,768 | 454,704 | 654,600 | ||||||||||||||||
Purchased power | 633,256 | 639,307 | 586,634 | 562,740 | 594,096 | ||||||||||||||||
Taxes, other than income taxes | 240,131 | 239,912 | 214,949 | 199,862 | 221,885 | ||||||||||||||||
Net revenues | $ | 951,846 | $ | 906,778 | $ | 868,215 | $ | 877,062 | $ | 864,585 | |||||||||||
REVENUES BY COMPANY (thousands) | |||||||||||||||||||||
Hawaiian Electric | $ | 1,803,698 | $ | 1,802,550 | $ | 1,598,504 | $ | 1,474,384 | $ | 1,644,181 | |||||||||||
Hawaii Electric Light | 364,590 | 375,493 | 333,467 | 311,385 | 345,549 | ||||||||||||||||
Maui Electric | 378,202 | 368,700 | 325,678 | 308,705 | 345,517 | ||||||||||||||||
Eliminations | (548 | ) | (218 | ) | (83 | ) | (106 | ) | (81 | ) | |||||||||||
Consolidated | $ | 2,545,942 | $ | 2,546,525 | $ | 2,257,566 | $ | 2,094,368 | $ | 2,335,166 | |||||||||||
AVERAGE REVENUE PER KWH SOLD (cents) | |||||||||||||||||||||
Residential | 32.44 | 32.69 | 29.64 | 27.38 | 29.62 | ||||||||||||||||
Commercial | 29.68 | 30.00 | 26.74 | 24.44 | 26.81 | ||||||||||||||||
Large light and power | 25.52 | 25.76 | 22.56 | 20.28 | 22.71 | ||||||||||||||||
Other | 29.39 | 29.47 | 26.82 | 24.61 | 27.05 | ||||||||||||||||
28.80 | 29.07 | 25.86 | 23.54 | 25.90 | |||||||||||||||||
AVERAGE REVENUE PER KWH SOLD BY COMPANY (cents) | |||||||||||||||||||||
Hawaiian Electric | 27.20 | 27.42 | 24.31 | 22.01 | 24.23 | ||||||||||||||||
Hawaii Electric Light | 34.30 | 34.93 | 31.68 | 29.00 | 32.29 | ||||||||||||||||
Maui Electric | 33.00 | 33.21 | 29.58 | 27.45 | 30.21 | ||||||||||||||||
Consolidated | 28.80 | 29.07 | 25.86 | 23.54 | 25.90 | ||||||||||||||||
AVERAGE ANNUAL RESIDENTIAL USE PER CUSTOMER BY COMPANY (KWH) | |||||||||||||||||||||
Hawaiian Electric | 6,006 | 5,921 | 5,829 | 5,856 | 6,052 | ||||||||||||||||
Hawaii Electric Light | 5,467 | 5,652 | 5,408 | 5,397 | 5,485 | ||||||||||||||||
Maui Electric | 6,402 | 6,258 | 6,000 | 6,067 | 6,351 | ||||||||||||||||
Consolidated | 5,967 | 5,923 | 5,779 | 5,806 | 5,996 | ||||||||||||||||
Average monthly electric sales revenue per residential customer | $ | 161 | $ | 161 | $ | 143 | $ | 132 | $ | 148 |
18
POWER SUPPLY INFORMATION | |||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||
Unaudited | |||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
ENERGY NET GENERATED AND PURCHASED (millions of KWH) | |||||||||||||||||||
Net generated | |||||||||||||||||||
Fuel oil | |||||||||||||||||||
Steam-conventional | 3,693 | 3,743 | 3,703 | 3,799 | 3,948 | ||||||||||||||
Combined-cycle | 799 | 884 | 829 | 835 | 846 | ||||||||||||||
Diesel | 364 | 214 | 245 | 230 | 220 | ||||||||||||||
Combustion turbine | 46 | 44 | 46 | 22 | 35 | ||||||||||||||
4,902 | 4,885 | 4,823 | 4,886 | 5,049 | |||||||||||||||
Biofuels | 54 | 62 | 55 | 37 | 54 | ||||||||||||||
Hydro | 11 | 19 | 10 | 17 | 22 | ||||||||||||||
Solar | 5 | — | — | — | — | ||||||||||||||
Total net generated | 4,972 | 4,966 | 4,888 | 4,940 | 5,125 | ||||||||||||||
Purchased | |||||||||||||||||||
Non-renewable | 2,990 | 2,847 | 2,851 | 2,918 | 2,956 | ||||||||||||||
Renewable 1,2 | 1,179 | 1,292 | 1,396 | 1,431 | 1,352 | ||||||||||||||
Total purchased | 4,169 | 4,139 | 4,247 | 4,349 | 4,308 | ||||||||||||||
9,141 | 9,105 | 9,135 | 9,289 | 9,433 | |||||||||||||||
GENERATION MIX (%) | |||||||||||||||||||
Fuel oil | |||||||||||||||||||
Steam-conventional | 40.4 | 41.1 | 40.5 | 40.9 | 41.9 | ||||||||||||||
Combined-cycle | 8.7 | 9.7 | 9.1 | 9.0 | 9.0 | ||||||||||||||
Diesel | 4.0 | 2.3 | 2.7 | 2.5 | 2.3 | ||||||||||||||
Combustion turbine | 0.5 | 0.5 | 0.5 | 0.2 | 0.4 | ||||||||||||||
53.6 | 53.6 | 52.8 | 52.6 | 53.6 | |||||||||||||||
Biofuels | 0.6 | 0.7 | 0.6 | 0.4 | 0.6 | ||||||||||||||
Hydro | 0.1 | 0.2 | 0.1 | 0.2 | 0.2 | ||||||||||||||
Solar | 0.1 | — | — | — | — | ||||||||||||||
Total generation | 54.4 | 54.5 | 53.5 | 53.2 | 54.4 | ||||||||||||||
Purchased | |||||||||||||||||||
Non-renewable | 32.7 | 31.3 | 31.2 | 31.4 | 31.3 | ||||||||||||||
Renewable 1,2 | 12.9 | 14.2 | 15.3 | 15.4 | 14.3 | ||||||||||||||
Total purchased | 45.6 | 45.5 | 46.5 | 46.8 | 45.6 | ||||||||||||||
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. | ||||||||||||||||||
2 | Since May 2018, Puna Geothermal Venture (PGV) has been offline due to lava flow on Hawaii Island; therefore, PGV has not been included into the Utilities' firm renewable energy purchase since May 2018. | ||||||||||||||||||
(Continued on next page) |
19
POWER SUPPLY INFORMATION (Continued) | |||||||||||||||||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
SYSTEM CAPABILITY (MW) 1, 2 | |||||||||||||||||||||||||
Company-owned generation | |||||||||||||||||||||||||
Steam-conventional | 1,086 | 1,086 | 1,086 | 1,085 | 1,085 | ||||||||||||||||||||
Combustion turbine 3 | 279 | 280 | 150 | 150 | 150 | ||||||||||||||||||||
Combined-cycle | 170 | 170 | 170 | 170 | 170 | ||||||||||||||||||||
Diesel | 146 | 146 | 146 | 143 | 151 | ||||||||||||||||||||
Biodiesel 3 | 57 | 57 | 121 | 121 | 113 | ||||||||||||||||||||
1,738 | 1,739 | 1,673 | 1,669 | 1,669 | |||||||||||||||||||||
Firm purchase power contracts 4 | |||||||||||||||||||||||||
Non-renewable | 448 | 448 | 448 | 448 | 448 | ||||||||||||||||||||
Renewable 5 | 68 | 69 | 103 | 103 | 107 | ||||||||||||||||||||
516 | 517 | 551 | 551 | 555 | |||||||||||||||||||||
2,254 | 2,256 | 2,224 | 2,220 | 2,224 | |||||||||||||||||||||
SYSTEM CAPABILITY BY COMPANY (MW) 1, 2 | |||||||||||||||||||||||||
Hawaiian Electric | 1,744 | 1,745 | 1,679 | 1,679 | 1,679 | ||||||||||||||||||||
Hawaii Electric Light | 242 | 242 | 277 | 274 | 274 | ||||||||||||||||||||
Maui Electric | 268 | 269 | 268 | 267 | 271 | ||||||||||||||||||||
2,254 | 2,256 | 2,224 | 2,220 | 2,224 | |||||||||||||||||||||
SYSTEM PEAK LOAD BY COMPANY (MW) 6 | |||||||||||||||||||||||||
Hawaiian Electric | 1,193 | 1,190 | 1,184 | 1,192 | 1,206 | ||||||||||||||||||||
Hawaii Electric Light | 192 | 191 | 190 | 189 | 192 | ||||||||||||||||||||
Maui Electric | 217 | 217 | 210 | 212 | 212 | ||||||||||||||||||||
1,602 | 1,598 | 1,584 | 1,593 | 1,610 | |||||||||||||||||||||
FUEL OIL DATA | |||||||||||||||||||||||||
Barrels of fuel oil consumed (thousands) | 8,771 | 8,653 | 8,546 | 8,501 | 8,762 | ||||||||||||||||||||
Average fuel oil cost per barrel | $ | 82.17 | $ | 87.90 | $ | 68.78 | $ | 53.49 | $ | 74.71 | |||||||||||||||
Average fuel oil cost per million BTU (cents) | 1,337.6 | 1,420.2 | 1,114.3 | 862.3 | 1,206.5 | ||||||||||||||||||||
Fuel oil cost per net KWH generated (cents) | 14.527 | 15,374 | 12.048 | 9.235 | 12.828 | ||||||||||||||||||||
BTU per net KWH generated by company | |||||||||||||||||||||||||
Hawaiian Electric | 10,852 | 10,894 | 10,879 | 10,750 | 10,716 | ||||||||||||||||||||
Hawaii Electric Light | 11,605 | 11,067 | 11,087 | 11,412 | 11,205 | ||||||||||||||||||||
Maui Electric | 10,460 | 10,406 | 10,406 | 10,119 | 9,958 | ||||||||||||||||||||
Consolidated | 10,860 | 10,826 | 10,812 | 10,710 | 10,632 | ||||||||||||||||||||
OTHER DATA | |||||||||||||||||||||||||
Losses and system uses (%) | 4.2 | 4.4 | 4.7 | 4.6 | 4.8 | ||||||||||||||||||||
Reserve margin (%) 6 | 40.7 | 42.8 | 42.0 | 40.8 | 40.4 | ||||||||||||||||||||
Annual load factor (%) 6 | 65.2 | 65.0 | 65.8 | 66.6 | 66.9 | ||||||||||||||||||||
Average cost per KWH purchased from IPPs (cents) | 15.191 | 15.445 | 13.813 | 12.939 | 13.790 | ||||||||||||||||||||
1 | At December 31. | ||||||||||||||||||||||||
2 | Excludes solar (West Loch PV - 20 MW) and hydro (four run-of-river units - 4 MW in the aggregate) due to their as-available nature. | ||||||||||||||||||||||||
3 | In 2018, the biodiesel supply for Campbell Industrial Park (CIP) CT-1 was shifted to Schofield Generation Station and CIP CT-1 now primary consumes diesel. CIP CT-1 could still utilize biodiesel if necessary. | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
5 | Since May 2018, Puna Geothermal Venture (PGV) has been offline due to lave flow on Hawaii Island; therefore, PGV's capability has not been incorporated into the Utilities' firm contract power capability as of December 31, 2018 and 2019. | ||||||||||||||||||||||||
6 | Net; noncoincident and nonintegrated. |
20
SELECTED INFORMATION | ||||||||||||||||||
American Savings Bank, F.S.B. | ||||||||||||||||||
Unaudited | ||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||
CAPITAL RATIOS (%) | ||||||||||||||||||
Common equity tier 1 | ||||||||||||||||||
ASB | 13.18 | 12.80 | 12.95 | 12.17 | 12.07 | |||||||||||||
Requirement | 4.50 | 4.50 | 4.50 | 4.50 | 4.50 | |||||||||||||
Tier 1 capital | ||||||||||||||||||
ASB | 13.18 | 12.80 | 12.95 | 12.17 | 12.07 | |||||||||||||
Requirement | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | |||||||||||||
Total capital | ||||||||||||||||||
ASB | 14.31 | 13.93 | 14.20 | 13.42 | 13.27 | |||||||||||||
Requirement | 8.00 | 8.00 | 8.00 | 8.00 | 8.00 | |||||||||||||
Tier 1 leverage | ||||||||||||||||||
ASB | 9.06 | 8.70 | 8.58 | 8.59 | 8.82 | |||||||||||||
Requirement | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | |||||||||||||
KEY STATISTICS (%) | ||||||||||||||||||
Return on average assets | ||||||||||||||||||
ASB | 1.25 | 1.20 | 1.02 | 0.92 | 0.95 | |||||||||||||
Peers 1 | 1.26 | 1.27 | 0.95 | 1.03 | 0.99 | |||||||||||||
Return on average equity | ||||||||||||||||||
ASB | 13.48 | 13.51 | 11.20 | 9.90 | 9.93 | |||||||||||||
Peers 1 | 10.60 | 10.51 | 8.39 | 9.52 | 8.94 | |||||||||||||
Net interest margin | ||||||||||||||||||
ASB | 3.85 | 3.83 | 3.69 | 3.59 | 3.53 | |||||||||||||
Peers 1 | 3.59 | 3.69 | 3.50 | 3.49 | 3.62 | |||||||||||||
Revenue growth | ||||||||||||||||||
ASB | 7.42 | 4.64 | 4.51 | 6.54 | 6.09 | |||||||||||||
Peers 1 | 6.73 | 10.26 | 9.68 | 9.28 | 8.71 | |||||||||||||
Efficiency ratio | ||||||||||||||||||
ASB | 57.77 | 59.39 | 61.60 | 61.89 | 64.87 | |||||||||||||
Peers 1 | 56.19 | 55.97 | 57.51 | 57.65 | 60.34 | |||||||||||||
Net charge-offs to loans outstanding | ||||||||||||||||||
ASB | 0.45 | 0.34 | 0.27 | 0.24 | 0.04 | |||||||||||||
Peers 1 | 0.09 | 0.07 | 0.07 | 0.10 | 0.11 | |||||||||||||
OTHER DATA | ||||||||||||||||||
Dividend paid to HEI (via ASB Hawaii) ($ in millions) | 56 | 50 | 38 | 36 | 30 | |||||||||||||
Loan Growth (%) | 5.72 | 3.68 | (1.52 | ) | 2.63 | 4.08 | ||||||||||||
Branch locations 2 | 49 | 49 | 49 | 52 | 56 | |||||||||||||
Number of ATMs | 111 | 113 | 113 | 114 | 116 | |||||||||||||
1 | Bank peers for 2018 and 2019 are based upon publicly traded banks and thrifts with $4 billion to $9 billion in total assets. Peer group for 2017 and years prior were based on publicly traded banks and thrifts with $3.5 billion to $8 billion in total assets. Lists revised annually. | |||||||||||||||||
2 | At December 31. |
21
STATEMENTS OF INCOME INFORMATION | |||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||
Interest and fees on loans | $ | 233,632 | $ | 220,463 | $ | 207,255 | $ | 199,774 | $ | 184,782 | |||||||||||
Interest and dividends on investment securities | 32,922 | 37,762 | 28,823 | 19,184 | 15,120 | ||||||||||||||||
Total interest and dividend income | 266,554 | 258,225 | 236,078 | 218,958 | 199,902 | ||||||||||||||||
Interest expense | |||||||||||||||||||||
Interest on deposit liabilities | 16,830 | 13,991 | 9,660 | 7,167 | 5,348 | ||||||||||||||||
Interest on other borrowings | 1,610 | 1,548 | 2,496 | 5,588 | 5,978 | ||||||||||||||||
Total interest expense | 18,440 | 15,539 | 12,156 | 12,755 | 11,326 | ||||||||||||||||
Net interest income | 248,114 | 242,686 | 223,922 | 206,203 | 188,576 | ||||||||||||||||
Provision for loan losses | 23,480 | 14,745 | 10,901 | 16,763 | 6,275 | ||||||||||||||||
Net interest income after provision for loan losses | 224,634 | 227,941 | 213,021 | 189,440 | 182,301 | ||||||||||||||||
Noninterest income | |||||||||||||||||||||
Fees from other financial services | 19,275 | 18,937 | 22,796 | 22,384 | 22,211 | ||||||||||||||||
Fee income on deposit liabilities | 20,877 | 21,311 | 22,204 | 21,759 | 22,368 | ||||||||||||||||
Fee income on other financial products | 6,507 | 7,052 | 7,205 | 8,707 | 8,094 | ||||||||||||||||
Gains on sale of investment securities, net | 653 | — | — | 598 | — | ||||||||||||||||
Gain on sale of real estate | 10,762 | — | — | — | — | ||||||||||||||||
Mortgage banking income | 4,943 | 1,493 | 2,201 | 6,625 | 6,330 | ||||||||||||||||
Other income, net | 9,761 | 7,257 | 7,156 | 6,893 | 8,828 | ||||||||||||||||
Total noninterest income | 72,778 | 56,050 | 61,562 | 66,966 | 67,831 | ||||||||||||||||
Noninterest expense | |||||||||||||||||||||
Compensation and employee benefits 1 | 103,009 | 98,387 | 94,931 | 89,242 | 90,518 | ||||||||||||||||
Occupancy and equipment | 30,032 | 24,259 | 23,931 | 23,259 | 22,942 | ||||||||||||||||
Data processing | 15,306 | 14,268 | 13,280 | 13,030 | 12,103 | ||||||||||||||||
Services | 10,239 | 10,847 | 10,994 | 11,054 | 10,204 | ||||||||||||||||
Other expense 1 | 26,792 | 29,652 | 32,731 | 32,469 | 30,553 | ||||||||||||||||
Total noninterest expense | 185,378 | 177,413 | 175,867 | 169,054 | 166,320 | ||||||||||||||||
Income before income taxes | 112,034 | 106,578 | 98,716 | 87,352 | 83,812 | ||||||||||||||||
Income taxes | 23,061 | 24,069 | 31,719 | 30,073 | 29,082 | ||||||||||||||||
Net income | $ | 88,973 | $ | 82,509 | $ | 66,997 | $ | 57,279 | $ | 54,730 | |||||||||||
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. | |||||||||||||||||||||
1 | Amounts for periods prior to December 31, 2018 (but after December 31, 2015) have been updated to reflect the retrospective adoption of ASU 2017-07. |
22
BALANCE SHEETS INFORMATION | |||||||||||||||||||||
American Savings Bank, F.S.B. | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 178,398 | $ | 126,284 | $ | 234,099 | $ | 189,211 | $ | 220,881 | |||||||||||
Restricted cash | — | — | — | 1,764 | — | ||||||||||||||||
Investment securities | |||||||||||||||||||||
Available-for-sale investment securities, at fair value | 1,232,826 | 1,388,533 | 1,401,198 | 1,105,182 | 820,648 | ||||||||||||||||
Held-to-maturity investment securities, at amortized cost | 139,451 | 141,875 | 44,515 | — | — | ||||||||||||||||
Investment in stock of Federal Home Loan Bank, at cost | 8,434 | 9,958 | 9,706 | 11,218 | 10,678 | ||||||||||||||||
Loans receivable, net | 5,080,107 | 4,792,707 | 4,628,381 | 4,701,977 | 4,570,412 | ||||||||||||||||
Real estate acquired in settlement of loans, net | — | 406 | 133 | 1,189 | 1,030 | ||||||||||||||||
Other and other intangibles, net | 511,611 | 485,941 | 398,437 | 328,626 | 308,916 | ||||||||||||||||
Goodwill | 82,190 | 82,190 | 82,190 | 82,190 | 82,190 | ||||||||||||||||
Total assets | $ | 7,233,017 | $ | 7,027,894 | �� | $ | 6,798,659 | $ | 6,421,357 | $ | 6,014,755 | ||||||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | |||||||||||||||||||||
Deposit liabilities | $ | 6,271,902 | $ | 6,158,852 | $ | 5,890,597 | $ | 5,548,929 | $ | 5,025,254 | |||||||||||
Other borrowings | 115,110 | 110,040 | 190,859 | 192,618 | 328,582 | ||||||||||||||||
Other | 146,954 | 124,613 | 110,356 | 101,635 | 101,029 | ||||||||||||||||
Total liabilities | 6,533,966 | 6,393,505 | 6,191,812 | 5,843,182 | 5,454,865 | ||||||||||||||||
Common stock | 349,454 | 347,171 | 345,019 | 342,705 | 340,497 | ||||||||||||||||
Retained earnings | 358,259 | 325,286 | 292,957 | 257,943 | 236,664 | ||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | (8,662 | ) | (38,068 | ) | (31,129 | ) | (22,473 | ) | (17,271 | ) | |||||||||||
Total shareholder's equity | 699,051 | 634,389 | 606,847 | 578,175 | 559,890 | ||||||||||||||||
Total liabilities and shareholder's equity | $ | 7,233,017 | $ | 7,027,894 | $ | 6,798,659 | $ | 6,421,357 | $ | 6,014,755 | |||||||||||
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. |
23
STATE OF HAWAII INFORMATION | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Years ended December 31, except as noted | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||
POPULATION BY COUNTY (thousands) 1 | ||||||||||||||||||||||
Honolulu | n/a | 980 | 989 | 993 | 993 | |||||||||||||||||
Hawaii | n/a | 201 | 200 | 198 | 196 | |||||||||||||||||
Maui | n/a | 167 | 166 | 166 | 164 | |||||||||||||||||
Kauai | n/a | 72 | 72 | 72 | 72 | |||||||||||||||||
— | 1,420 | 1,427 | 1,429 | 1,425 | ||||||||||||||||||
VISITOR DATA | ||||||||||||||||||||||
Visitor arrivals by air (thousands) | 10,282 | 9,827 | 9,257 | 8,822 | 8,563 | |||||||||||||||||
Visitor days by air (thousands) | 90,229 | 88,009 | 83,412 | 79,669 | 78,086 | |||||||||||||||||
Visitor expenditures by air (millions) | 17,702 | 17,778 | 16,734 | 15,754 | 14,938 | |||||||||||||||||
Year-over-year change (%) | ||||||||||||||||||||||
Visitor arrivals by air | 5.3 | 5.9 | 4.9 | 3.0 | 4.5 | |||||||||||||||||
Visitor days | 2.9 | 5.4 | 4.7 | 2.3 | 4.1 | |||||||||||||||||
Visitor expenditures by air | 1.4 | 6.9 | 6.2 | 5.5 | 0.9 | |||||||||||||||||
CONSTRUCTION INDUSTRY DATA (millions) | ||||||||||||||||||||||
Value of private building permits authorized 2 | $ | 3,221 | $ | 3,269 | $ | 3,128 | $ | 3,241 | $ | 3,964 | ||||||||||||
Government contracts awarded | $ | 594 | $ | 1,948 | $ | 1,192 | $ | 1,673 | $ | 1,555 | ||||||||||||
Estimated value of completed construction | n/a | $ | 9,456 | $ | 8,384 | $ | 8,288 | $ | 8,112 | |||||||||||||
OTHER DATA | ||||||||||||||||||||||
State real gross domestic product (millions of 2012 $s) 3 | $ | 83,664 | $ | 82,652 | $ | 80,716 | $ | 74,026 | $ | 71,051 | ||||||||||||
Honolulu Consumer Price Index (% change) | 2.0 | 2.0 | 2.5 | 2.0 | 1.0 | |||||||||||||||||
Total non-agriculture wage and salary jobs (thousands) 4 | 659 | 661 | 655 | 648 | 639 | |||||||||||||||||
Unemployment rate (average annual %) | 2.8 | 2.3 | 2.5 | 3.0 | 3.6 | |||||||||||||||||
Note: Columns may not foot due to rounding. | ||||||||||||||||||||||
Sources: State of Hawaii Data Book 2018 (prior years), Hawaii State Department of Business, Economic Development & Tourism (DBEDT), Hawaii | ||||||||||||||||||||||
Tourism Authority, United States Department of Labor, Bureau of Labor Statistics, U.S. Census Bureau, and U.S. Bureau of Economic Analysis. | ||||||||||||||||||||||
1 Resident population estimates, including military personnel, excluding visitors, as of July 1. Data for 2019 not available at time of printing. | ||||||||||||||||||||||
2 Excludes public construction. | ||||||||||||||||||||||
3 Data from DBEDT and U.S. Bureau of Economic Analysis, which use 2012 dollars for comparative purposes. | ||||||||||||||||||||||
4 Not seasonally adjusted and excludes estimations for Agriculture jobs (per Hawaii Department of Labor and Industrial Relations). | ||||||||||||||||||||||
n/a: Not available |
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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 given the non-recurring nature of certain items. Core earnings and other financial measures as presented here may not be comparable to similarly titled measures used by other companies. The accompanying tables provide a reconciliation of reported GAAP1 earnings to non-GAAP (core) earnings and the adjusted return on average common equity (ROACE) for 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 exclude the impact of the federal tax reform act due to the adjustment of deferred tax balances and the $1,000 employee bonuses paid by the bank related to federal tax reform. Management does not consider these items to be representative of the company’s fundamental core earnings. Management has shown adjusted non-GAAP (core) net income, adjusted non-GAAP (core) diluted earnings per common share and adjusted non-GAAP (core) ROACE in order to provide better comparability of core net income, EPS and ROACE between periods.
RECONCILIATION OF GAAP1 TO NON-GAAP MEASURES | ||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries (HEI) | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
($ in millions, except per share amounts) | ||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
HEI CONSOLIDATED NET INCOME | ||||||||||||||||||||
GAAP (as reported) | $ | 217.9 | $ | 201.8 | $ | 165.3 | $ | 248.3 | $ | 159.9 | ||||||||||
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 | ||||||||||||||
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 | $ | 217.9 | $ | 201.8 | $ | 179.5 | $ | 190.1 | $ | 175.7 | ||||||||||
HEI CONSOLIDATED DILUTED EARNINGS PER COMMON SHARE (EPS) | ||||||||||||||||||||
GAAP (as reported) | $ | 1.99 | $ | 1.85 | $ | 1.52 | $ | 2.29 | $ | 1.50 | ||||||||||
Non-GAAP (core) diluted earnings per common share | $ | 1.99 | $ | 1.85 | $ | 1.65 | $ | 1.75 | $ | 1.65 | ||||||||||
HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average) | ||||||||||||||||||||
Based on GAAP | 9.8 | % | 9.5 | % | 7.9 | % | 12.4 | % | 8.6 | % | ||||||||||
Based on non-GAAP (core)5 | 9.8 | % | 9.5 | % | 8.6 | % | 9.5 | % | 9.4 | % | ||||||||||
Hawaiian Electric Company, Inc. and Subsidiaries | ||||||||||||||||||||
UTILITY NET INCOME | ||||||||||||||||||||
GAAP (as reported) | $ | 156.8 | $ | 143.7 | $ | 120.0 | $ | 142.3 | $ | 135.7 | ||||||||||
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) net income | $ | 156.8 | $ | 143.7 | $ | 129.1 | $ | 144.5 | $ | 136.2 | ||||||||||
UTILITY RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average) | ||||||||||||||||||||
Based on GAAP | 7.8 | % | 7.6 | % | 6.6 | % | 8.1 | % | 8.0 | % | ||||||||||
Based on non-GAAP (core)5 | 7.8 | % | 7.6 | % | 7.1 | % | 8.2 | % | 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 non-GAAP (core) net income divided by average GAAP common equity. |
25