Hawaiian Electric Industries, Inc. Reports First Quarter 2001 Earnings.Business Editors/Utility Writers HONOLULU--(BUSINESS WIRE)--April 23, 2001 Hawaiian Electric Industries Hawaiian Electric Industries Inc. (HEI; NYSE: HE) is the largest supplier of electricity in the state of Hawaii, carrying power to 93% of the Hawaii electric public utility market.[1] The electricity supplier owns three electric utilities- Hawaiian Electric Company, Inc. , Inc. (NYSE NYSE See: New York Stock Exchange : HE) today reported net income for the three months ended March 31, 2001 of $27.7 million, or 84 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with $29.0 million, or 90 cents per share, in the same quarter of 2000. "The company had a mixed first quarter, with earnings down 4.2%. Despite a 1.7% increase in kilowatthour sales, utility net income was down 9.7% as purchased power and other operation and maintenance expenses at the utility increased," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. F. Clarke Clarke , Arthur Charles Born 1917. British writer, scientist, and underwater explorer noted for his stories of space exploration. His works include 2001: A Space Odyssey (1968). , HEI HEI Higher Education Institution (UK) HEI Health Effects Institute HEI Hautes Études Internationales HEI House Ear Institute HEI Healthy Eating Index HEI Hautes Etudes d'Ingénieur HEI High-Explosive Incendiary chairman, president and chief executive officer. "However, our savings bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. had a good quarter with net income up 5.8%, mainly due to higher interest and fee income," said Clarke. Electric utility net income in the first quarter was $21.4 million versus $23.7 million in the same period last year. Higher kilowatthour sales were largely a result of warmer weather. "However, purchased power and maintenance expenses were higher in the first quarter of 2001 as compared with the same period in 2000 due to the timing of overhauls by both the company and its major independent power supplier on Oahu Oahu (ōä`h  ), island (1990 pop. 836,231), 593 sq mi (1,536 sq km), third largest and chief island of Hawaii, part of Honolulu co., between Molokai and Kauai. ," said Clarke.Savings bank net income in the first quarter was $11.9 million compared to $11.2 million in the same period last year. Interest income increased 5.0% due to an increase in interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin of 1.9%. However, the bank's interest rate spread - the difference between the yield on earning assets and cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. - was lower at 3.01% in the recent quarter versus 3.28% for the same period in 2000. International power results were relatively flat for the quarter, excluding a gain from a $1.5 million partial release of a loan guarantee that was previously recorded. A $0.6 million tax benefit related to this reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its is included in the other segment results. HEI will hold its annual meeting tomorrow at 9:30 a.m. in Honolulu, Hawaii For the city and county of Honolulu, see City & County of Honolulu. “Honolulu” redirects here. For other uses, see Honolulu (disambiguation). Honolulu is the capital as well as the most populous community of the State of Hawaii, United States. to elect five directors and an independent auditor Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. . HEI is a diversified diversified (di·verˑ·s holding company. Its core businesses are electric utilities, a savings bank and an international power subsidiary. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This release may contain "forward-looking statements," that are subject to risks and uncertainties. Forward looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions, and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions. Forward-looking statements in this release should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with "Forward-looking statements" set forth on page vi of HEI's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2000 (incorporated by reference herein) that discusses important factors that could cause HEI's results to differ materially from those anticipated in such statements. Forward-looking statements speak only as of the date of this release.
Hawaiian Electric Industries, Inc. and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Quarters ended Twelve months ended
March 31, March 31,
(in thousands, except
per share amounts) 2001 2000 2001 2000
Revenues
Electric utility $318,423 $289,405 $1,306,188 $1,106,818
Savings bank 115,754 110,267 456,369 419,900
International power 1,969 1,665 (11,726) 5,137
Other (1,279) 538 1,185 41,063
---------- --------- ----------- -----------
434,867 401,875 1,752,016 1,572,918
---------- --------- ----------- -----------
Expenses
Electric utility 270,413 237,775 1,116,717 921,375
Savings bank 95,605 91,077 385,369 355,489
International power 773 2,115 87,698 9,702
Other 2,359 2,706 9,370 38,311
---------- --------- ----------- -----------
369,150 333,673 1,599,154 1,324,877
---------- --------- ----------- -----------
Operating income (loss)
Electric utility 48,010 51,630 189,471 185,443
Savings bank 20,149 19,190 71,000 64,411
International power 1,196 (450) (99,424) (4,565)
Other (3,638) (2,168) (8,185) 2,752
---------- --------- ----------- -----------
65,717 68,202 152,862 248,041
---------- --------- ----------- -----------
Interest expense --
other than
savings bank (20,005) (19,072) (79,554) (73,815)
Allowance for
borrowed funds
used during
construction 676 691 2,907 2,627
Preferred stock
dividends of
subsidiaries (502) (498) (2,011) (2,006)
Preferred securities
distributions of
trust subsidiaries (4,009) (4,009) (16,035) (16,035)
Allowance for
equity funds
used during
construction 1,265 1,269 5,376 4,458
---------- --------- ----------- -----------
Income from
continuing
operations
before income
taxes 43,142 46,583 63,545 163,270
Income taxes 15,397 17,607 19,032 62,154
---------- --------- ----------- -----------
Income from
continuing
operations 27,745 28,976 44,513 101,116
Discontinued
operations -- gain
on disposal -- -- -- 3,953
---------- --------- ----------- -----------
Net income $27,745 $28,976 $44,513 $105,069
========== ========= =========== ===========
Per common share
Basic earnings
Continuing
operations $0.84 $0.90 $1.36 $3.14
Discontinued
operations -- -- -- 0.12
---------- --------- ----------- -----------
$0.84 $0.90 $1.36 $3.26
========== ========= =========== ===========
Diluted earnings
Continuing
operations $0.83 $0.90 $1.35 $3.13
Discontinued
operations -- -- -- 0.12
---------- --------- ----------- -----------
$0.83 $0.90 $1.35 $3.25
========== ========= =========== ===========
Dividends $0.62 $0.62 $2.48 $2.48
========== ========= =========== ===========
Weighted average
number of common
shares outstanding 33,159 32,266 32,766 32,216
========== ========= =========== ===========
Adjusted weighted
average shares 33,312 32,372 32,904 32,323
========== ========= =========== ===========
Income from
continuing
operations
by segment
Electric utility $21,425 $23,725 $84,986 $81,866
Savings bank 11,875 11,221 41,284 38,108
International
power 434 (921) (102,231) (5,221)
Other (5,989) (5,049) 20,474 (13,637)
----------- ---------- ----------- -----------
Income from
continuing
operations $27,745 $28,976 $44,513 $101,116
=========== ========== =========== ===========
This information should be read in conjunction with the
consolidated financial statements and the notes thereto incorporated
by reference in HEI's Annual Report on SEC Form 10-K for the year
ended December 31, 2000 and the consolidated financial statements and
the notes thereto in HEI's Quarterly Report on SEC Form 10-Q for the
quarter ended March 31, 2001 (when filed).
Results of operations for interim periods are not necessarily
indicative of results to be expected for future interim periods or the
full year.
Net income for the quarter and the twelve months ended March 31,
2000 does not include equity in net losses of EPHE Philippines Energy
Company, Inc. (EPHE, owner of approximately 91.7% of the common shares
of East Asia Power Resources Corporation). An indirect subsidiary of
HEI Power Corp. (HEIPC) acquired a 50% interest in EPHE on March 7,
2000. The accounts of HEIPC and subsidiaries are consolidated on a one
month lag due to the time needed to consolidate the subsidiaries.
HAWAIIAN ELECTRIC INDUSTRIES, INC.
SUPPLEMENTAL DATA TO 1ST QUARTER 2001 EARNINGS RELEASE
(Unaudited)
Hawaiian Electric Company, Inc.
(HECO) and subsidiaries
Consolidated Statements of Income Three months ended
March 31,
(in thousands) 2001 2000
--------- ---------
Operating revenues $317,293 $288,421
--------- ---------
Operating expenses
Fuel oil 88,245 75,155
Purchased power 81,916 70,226
Other operation 29,774 27,741
Maintenance 15,197 12,533
Depreciation 24,609 24,334
Taxes, other than
income taxes 30,491 27,361
Income taxes 13,604 15,193
--------- ---------
283,836 252,543
--------- ---------
Operating income 33,457 35,878
--------- ---------
Other income
Allowance for equity
funds used during
construction 1,265 1,269
Other, net 977 575
--------- ---------
2,242 1,844
--------- ---------
Income before interest
and other charges 35,699 37,722
--------- ---------
Interest and other charges
Interest on long-term debt 9,929 9,932
Amortization of net bond
premium and expense 530 442
Other interest charges 2,073 1,897
Allowance for borrowed
funds used during
construction (676) (691)
Preferred stock dividends
of subsidiaries 229 228
Preferred securities
distributions of trust
subsidiaries 1,919 1,919
--------- ---------
14,004 13,727
--------- ---------
Income before preferred
stock dividends of HECO 21,695 23,995
Preferred stock dividends of HECO 270 270
--------- ---------
Net income for common stock $21,425 $23,725
========= =========
Other electric utility information
Kilowatthour sales (millions) 2,241 2,203
Cooling degree days (Oahu) 910 828
American Savings Bank, F.S.B. and subsidiaries
Consolidated Income statement data
Three months ended
March 31,
(in thousands) 2001 2000
--------- ---------
Interest income $107,601 $102,508
Interest expense 60,500 55,718
--------- ---------
Net interest income 47,101 46,790
Provision for loan losses (3,000) (3,000)
Other income 8,153 7,759
Operating, administrative
and general expenses (32,105) (32,359)
--------- ---------
Operating income 20,149 19,190
Minority interest 59 57
Income taxes 6,862 6,562
--------- ---------
Income before preferred
stock dividends 13,228 12,571
Preferred stock dividends 1,353 1,350
--------- ---------
Net income $11,875 $11,221
========= =========
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