HAWAIIAN ELECTRIC INDUSTRIES INC.
REPORTS INCREASED SECOND QUARTER EARNINGS
HONOLULU, July 16 /PRNewswire/ -- Hawaiian Electric Industries Inc. (NYSE: HE) (HEI) reported net income of $15.7 million for the three months ended June 30, up from $13.1 million in the same period of 1991. Year-to-date net income was $29.7 million, up from $25.8 million in the first six months of last year.
For the quarter, earnings per share were 65 cents, up 10 percent from 59 cents per share a year ago. Year-to-date earnings per share increased 6 percent to $1.24 from $1.17 in 1991. HEI's results improved in part because of lower financing costs. The weighted average number of common shares outstanding for the quarter increased by nearly 2 million from the same period last year.
Robert F. Clarke, HEI president and chief executive officer, said operating income at HEI's principal subsidiary, Hawaiian Electric Co., was essentially unchanged for the three months. Rising costs were partially offset by an interim rate increase that took effect April 1 for the company's largest utility operation which serves the island of Oahu. Year-to-date operating income was lower because of increasing costs at two smaller utilities serving the islands of Maui, Lanai, Molokai and Hawaii. Rate increase requests are pending for both utilities.
"We were encouraged by the interim rate relief our Oahu utility received early in the second quarter," Clarke said. "We were further encouraged when the Hawaii Public Utilities Commission issued a final order on June 30, less than one year after the case was filed. In their order, they also granted additional rate relief which takes effect in steps during the rest of this year when costs are scheduled to be incurred."
Kilowatthour sales were up more than 4 percent for both the quarter and year-to-date, but were below forecast levels. The slower sales growth reflects the effect of the mainland recession on Hawaii tourism, Clarke said.
"The performance of our financial services companies is particularly encouraging," he added.
Operating income for HEI's financial services business group was up 10 percent for the quarter and 15 percent year to date, because of increased net interest income at American Savings Bank, and premium increases and a lower combined operating ratio at Hawaiian Insurance Group. Year-to-date interest rate spread at American Savings Bank, the difference between interest earned on assets and cost of funds, narrowed to 3.13 percent from 3.20 percent a year ago. The narrowing reflects American Savings' pricing strategy of offering higher rates to increase its stable core checking and savings deposit base.
Hawaiian Electric Industries is a diversified electric utility holding company that delivers essential services to the people of Hawaii through its utility, banking, insurance, maritime freight transportation and real estate development subsidiaries.
HAWAIIAN ELECTRIC INDUSTRIES INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share amounts)
Three months Six months
ended June 30, ended June 30,
1992 1991 1992 1991
Electric utility $176,958 $175,090 $350,635 $375,689
Savings bank 51,149 49,668 102,170 99,604
Insurance 22,799 22,285 44,566 44,311
Other 13,411 13,422 26,331 27,581
Total 264,317 260,465 523,702 547,185
Electric utility 24,850 24,615 48,073 49,021
Savings bank 6,580 6,257 13,191 12,439
Insurance 1,109 764 2,989 1,604
Other 1,414 1,166 2,463 1,691
Total 33,953 32,802 66,716 64,755
Interest expense --
services (a) (10,949) (11,789) (21,768) (23,132)
dividends of electric
utility subsidiaries (1,682) (1,726) (3,369) (3,457)
Allowance for equity
funds used during
construction 1,867 883 3,530 1,561
income taxes 23,189 20,170 45,109 39,727
Income taxes 7,448 7,054 15,376 13,902
Net income $15,741 $13,116 $29,733 $25,825
common share $0.65 $0.59 $1.24 $1.17
common share $0.56 $0.55 $1.12 $1.10
Book value per common
share (end of period) $24.70 $24.00 $24.70 $24.00
Market price per
common share (end of
period) $39.75 $31.88 $39.75 $31.88
number of common
shares outstanding 24,166 22,268 24,054 22,118
(a) Net of allowance
for borrowed funds
construction $570 $292 $1,083 $513
/CONTACT: Constance H. Lau, treasurer, 808-543-7384, or Gary S. Sharpe, director-investor relations, 808-543-7385, both 8 -- 9846 07/16/92 08:09 EDT
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