Alliant Energy Announces 2017 Results
MADISON, Wis., Feb. 22, 2018 /PRNewswire/ -- Alliant Energy Corporation (NYSE: LNT) today announced U.S. generally accepted accounting principles (GAAP) and non-GAAP consolidated unaudited earnings per share (EPS) from continuing operations for 2017 and 2016 as follows:
GAAP EPS from Non-GAAP EPS
Continuing Operations from Continuing Operations
--------------------- --------------------------
2017 2016 2017 2016
---- ---- ---- ----
Utilities
and
Corporate
Services $1.82 $1.75 $1.80 $1.75
American
Transmission
Company
(ATC)
Investment 0.11 0.10 0.11 0.10
Non-
utility
and
Parent 0.06 (0.20) 0.02 0.03
---- ----
Alliant
Energy
Consolidated $1.99 $1.65 $1.93 $1.88
===== ===== ===== =====
"We once again delivered solid financial and operational results in 2017. Our 2017 temperature normalized Non-GAAP earnings per share were $1.99, 6% above calendar year 2016, and consistent with our long-term earnings growth goal," said Patricia Kampling, Alliant Energy Chairman and CEO. "I am proud to report that over the last 5 years we have delivered a total shareholder return of 130%, exceeding the growth of both the S&P 500 and the EEI Utilities Index."
Utilities and Corporate Services - Alliant Energy's Utilities and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $1.82 per share of GAAP EPS from continuing operations in 2017, which was $0.07 per share higher than 2016. The primary drivers of higher EPS were higher margins resulting from Interstate Power and Light Company's (IPL's) interim retail electric base rate increase implemented in April 2017 and Wisconsin Power and Light's (WPL's) retail electric and gas base rate increases implemented in January 2017. These items were partially offset by higher depreciation expense from rate base additions and updated WPL depreciation rates, higher energy efficiency cost recovery amortization at WPL, and impacts of milder temperatures on retail electric and gas sales in 2017.
Non-utility and Parent - Alliant Energy's Non-utility and Parent operations generated $0.06 per share of GAAP EPS from continuing operations in 2017, which was $0.26 per share higher than 2016. The primary drivers of higher EPS were asset valuation charges of $0.23 per share related to the Franklin County wind farm in 2016 and effects of Tax Cuts and Jobs Act (Tax Reform) in 2017.
Earnings Adjustments - Non-GAAP EPS for 2017 excludes the write-down of regulatory assets due to the IPL retail electric rate review settlement and the effects of Tax Reform. Non-GAAP EPS for 2016 excludes asset valuation charges of $0.23 per share related to the Franklin County wind farm. Non-GAAP adjustments, which relate to material charges or income that are not normally associated with ongoing operations, are provided as a supplement to results reported in accordance with GAAP.
Temperature impacts to Non-GAAP EPS from Continuing Operations - The estimated impact of milder temperatures on retail electric and gas sales was a $0.06 per share loss in 2017. The temperature normalized Non-GAAP EPS from continuing operations for fiscal year 2017 is $1.99. Temperature impacts did not affect Non-GAAP EPS from continuing operations for fiscal year 2016.
Details regarding GAAP EPS from continuing operations variances between 2017 and 2016 for Alliant Energy are as follows:
2017 2016 Variance
---- ---- --------
Utilities and Corporate
Services:
Higher margins from IPL
interim retail electric
base rate increase $0.20 $- $0.20
Higher margins from WPL
retail electric and gas
base rate increases 0.19 - 0.19
Higher depreciation
expense (0.13)
Higher energy efficiency
cost recovery
amortization at WPL (0.04) 0.03 (0.07)
Estimated temperature
impact on retail
electric and gas sales (0.06) - (0.06)
Effects of Tax Reform 0.04 - 0.04
Changes in AFUDC
(primarily Marshalltown
Generating Station) (0.03)
Higher WPL electric fuel-
related costs, net of
recoveries (0.01) 0.02 (0.03)
Higher interest expense (0.03)
Net write-down of
regulatory assets due to
IPL retail electric rate
review settlement (0.02) - (0.02)
Equity dilution (0.02) - (0.02)
Other 0.03
Total Utilities and
Corporate Services $0.07
=====
ATC Investment $0.01
=====
Non-utility and Parent:
Asset valuation charges
for Franklin County wind
farm in 2016 $- ($0.23) $0.23
Effects of Tax Reform 0.04 - 0.04
Other (0.01)
Total Non-utility and
Parent $0.26
=====
Higher margins from IPL interim retail electric base rate increase - In April 2017, IPL filed a request with the Iowa Utilities Board (IUB) to increase annual rates for its Iowa retail electric customers. The request was based on a 2016 historical Test Year as adjusted for certain known and measurable changes occurring up to 12 months after the commencement of the proceeding. An interim retail electric rate increase of $102 million, on an annual basis, was implemented effective April 13, 2017. The IUB issued a written order in February 2018 approving a final rate increase of $130 million, on an annual basis.
Higher margins from WPL retail electric and gas base rate increases - In December 2016, WPL received an order from the Public Service Commission of Wisconsin authorizing WPL to implement an increase in annual retail electric and gas rates of $9 million, each. The retail electric rate increase is comprised of a $60 million retail electric base rate increase and a $51 million monitored fuel-related cost decrease.
Effects of Tax Reform - In December 2017, Tax Reform was enacted. The enactment of Tax Reform had a material impact on the 2017 financial statements since changes in tax laws must be recognized in the period in which the law is enacted. The most significant provision of Tax Reform was the reduction in the federal corporate tax rate from 35% to 21%, which required a re-measurement of deferred tax assets and liabilities in December 2017. The net impact of re-measuring deferred taxes associated with the non-utility operations and changes in valuation allowances for tax carryforwards resulted in $0.08 of higher EPS in the fourth quarter of 2017. The net impacts of re-measuring deferred taxes associated with regulated utility operations were recorded in regulatory assets and liabilities and expect to be utilized to provide benefits to customers in the future.
2018 Earnings Guidance
Alliant Energy consolidated EPS guidance for 2018 remains unchanged. We are updating the guidance for the reporting companies as follows:
Utilities and Corporate Services $1.92 - $2.02
ATC Investment 0.12 - 0.14
Non-utility and Parent 0.00 - 0.02
Alliant Energy consolidated $2.04 - $2.18
"The 6% earnings growth between 2017 temperature normalized non-GAAP EPS and the midpoint of 2018 earnings guidance is consistent with our projected long-term annual earnings growth rate of 5 to 7% driven by investments in our utility business," said Kampling. "The 2018 guidance is based upon approved retail electric base rates for both WPL and IPL, as well as WPL's approved retail gas base rates. Tax Reform is not forecasted to have a material impact on 2018 earnings."
Assumptions for Alliant Energy's 2018 earnings guidance include, but are not limited to:
-- Ability of IPL and WPL to earn their authorized rates of return
-- Stable economy and resulting implications on utility sales
-- Normal temperatures in its utility service territories
-- Continuing cost controls and operational efficiencies
-- Execution of IPL's and WPL's capital expenditure and financing plans
-- Regulatory treatment of Tax Reform benefits from utility operations
-- Consolidated effective tax rate of 12%
The 2018 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, further impacts from anticipated changes to ATC LLC's authorized return on equity, future changes in laws or regulations, adjustments made to deferred tax assets and liabilities from valuation allowances, pending lawsuits and disputes, federal and state income tax audits and other Internal Revenue Service proceedings, or changes in GAAP and tax methods of accounting that may impact the reported results of Alliant Energy.
Earnings Conference Call
A conference call to review the 2017 results is scheduled for Friday, February 23rd at 9:00 a.m. central time. Alliant Energy Chairman and Chief Executive Officer Patricia Kampling and Senior Vice President, Chief Financial Officer and Treasurer Robert Durian will host the call. The conference call is open to the public and can be accessed in two ways. Interested parties may listen to the call by dialing 888-394-8218 (United States or Canada) or 323-794-2149 (International), passcode 4175543. Interested parties may also listen to a webcast at www.alliantenergy.com/investors. In conjunction with the information in this earnings announcement and the conference call, Alliant Energy posted supplemental materials on its website. A replay of the call will be available through March 2, 2018, at 888-203-1112 (United States or Canada) or 719-457-0820 (International), passcode 4175543. An archive of the webcast will be available on the Company's Web site at www.alliantenergy.com/investors for 12 months.
About Alliant Energy Corporation
Alliant Energy is the parent company of two public utility companies - Interstate Power and Light Company and Wisconsin Power and Light Company - and of Alliant Energy Finance, LLC, the parent company of Alliant Energy's non-utility operations. Alliant Energy is an energy-services provider with utility subsidiaries serving approximately 960,000 electric and 410,000 natural gas customers. Providing its customers in the Midwest with regulated electricity and natural gas service is the Company's primary focus. Alliant Energy, headquartered in Madison, Wisconsin, is a component of the S&P 500 and is traded on the New York Stock Exchange under the symbol LNT. For more information, visit the Company's Web site at www.alliantenergy.com.
Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements can be identified by words such as "forecast," "expect," "guidance," or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Actual results could be materially affected by the following factors, among others:
-- IPL's and WPL's ability to obtain adequate and timely rate relief to
allow for, among other things, earning a return on rate base additions
and the recovery of costs, including fuel costs, operating costs,
transmission costs, environmental compliance and remediation costs,
deferred expenditures, deferred tax assets, capital expenditures, and
remaining costs related to electric generating units (EGUs) that may be
permanently closed, earning their authorized rates of return, and the
payments to their parent of expected levels of dividends;
-- federal and state regulatory or governmental actions, including the
impact of energy, tax, financial and health care legislation, and
regulatory agency orders;
-- ability to obtain regulatory approval for wind projects with acceptable
conditions, to acquire sufficient transmission-ready wind sites, to
complete construction within the cost caps set by regulators and to meet
all requirements to qualify for the full level of production tax
credits;
-- the impact of customer- and third party-owned generation, including
alternative electric suppliers, in IPL's and WPL's service territories
on system reliability, operating expenses and customers' demand for
electricity;
-- the impact of energy efficiency, franchise retention and customer
disconnects on sales volumes and margins;
-- the impact that price changes may have on IPL's and WPL's customers'
demand for electric, gas and steam services and their ability to pay
their bills;
-- the impact of adjustments made to deferred tax assets and liabilities
from changes in the tax laws;
-- the ability to utilize tax credits and net operating losses generated to
date, and those that may be generated in the future, before they expire;
-- the direct or indirect effects resulting from terrorist incidents,
including physical attacks and cyber attacks, or responses to such
incidents;
-- the impact of penalties or third-party claims related to, or in
connection with, a failure to maintain the security of personally
identifiable information, including associated costs to notify affected
persons and to mitigate their information security concerns;
-- employee workforce factors, including changes in key executives, ability
to hire and retain employees with specialized skills, ability to create
desired corporate culture, collective bargaining agreements and
negotiations, work stoppages or restructurings;
-- weather effects on results of utility operations;
-- issues associated with environmental remediation and environmental
compliance, including compliance with the Consent Decree between WPL,
the U.S. Environmental Protection Agency (EPA) and the Sierra Club, the
Consent Decree between IPL, the EPA, the Sierra Club, the State of Iowa
and Linn County in Iowa, the Coal Combustion Residuals Rule, the Clean
Power Plan, future changes in environmental laws and regulations,
including the EPA's regulations for carbon dioxide emissions reductions
from new and existing fossil-fueled EGUs, and litigation associated with
environmental requirements;
-- the ability to defend against environmental claims brought by state and
federal agencies, such as the EPA, state natural resources agencies or
third parties, such as the Sierra Club, and the impact on operating
expenses of defending and resolving such claims;
-- continued access to the capital markets on competitive terms and rates,
and the actions of credit rating agencies;
-- inflation and interest rates;
-- the impact of the economy in IPL's and WPL's service territories and the
resulting impacts on sales volumes, margins and the ability to collect
unpaid bills;
-- changes in the price of delivered natural gas, purchased electricity and
coal due to shifts in supply and demand caused by market conditions and
regulations;
-- disruptions in the supply and delivery of natural gas, purchased
electricity and coal;
-- changes in the price of transmission services and the ability to recover
the cost of transmission services in a timely manner;
-- developments that adversely impact the ability to implement the
strategic plan;
-- the direct or indirect effects resulting from breakdown or failure of
equipment in the operation of electric and gas distribution systems,
such as mechanical problems and explosions or fires, and compliance with
electric and gas transmission and distribution safety regulations;
-- issues related to the availability and operations of EGUs, including
start-up risks, breakdown or failure of equipment, performance below
expected or contracted levels of output or efficiency, operator error,
employee safety, transmission constraints, compliance with mandatory
reliability standards and risks related to recovery of resulting
incremental costs through rates;
-- impacts that storms or natural disasters in IPL's and WPL's service
territories may have on their operations and recovery of costs
associated with restoration activities;
-- any material post-closing adjustments related to any past asset
divestitures, including the sales of IPL's Minnesota electric and
natural gas assets, and Whiting Petroleum Corporation, which could
result from, among other things, indemnification agreements, warranties,
parental guarantees or litigation;
-- Alliant Energy's ability to sustain its dividend payout ratio goal;
-- changes to costs of providing benefits and related funding requirements
of pension and other postretirement benefits plans due to the market
value of the assets that fund the plans, economic conditions, financial
market performance, interest rates, life expectancies and demographics;
-- material changes in employee-related benefit and compensation costs;
-- risks associated with operation and ownership of non-utility
investments;
-- changes in technology that alter the channels through which customers
buy or utilize Alliant Energy's, IPL's or WPL's products and services;
-- impacts on equity income from unconsolidated investments due to further
potential changes to ATC LLC's authorized return on equity;
-- impacts of IPL's future tax benefits from Iowa rate-making practices,
including deductions for repairs expenditures and allocation of mixed
service costs, and recoverability of the associated regulatory assets
from customers, when the differences reverse in future periods;
-- changes to the creditworthiness of counterparties with which Alliant
Energy, IPL and WPL have contractual arrangements, including
participants in the energy markets and fuel suppliers and transporters;
-- current or future litigation, regulatory investigations, proceedings or
inquiries;
-- reputational damage from negative publicity, protests, fines, penalties
and other negative consequences resulting in regulatory and/or legal
actions;
-- the effect of accounting standards issued periodically by
standard-setting bodies;
-- the ability to successfully complete tax audits and changes in tax
accounting methods with no material impact on earnings and cash flows;
and
-- factors listed in the "2018 Earnings Guidance" section of this press
release.
For more information about potential factors that could affect Alliant Energy's business and financial results, refer to Alliant Energy's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), including the section therein titled "Risk Factors," and its other filings with the SEC.
Without limitation, the expectations with respect to 2018 earnings guidance in this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements. Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy's ability to achieve the estimates or other targets included in the forward-looking statements. The forward-looking statements included herein are made as of the date hereof and, except as required by law, Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding Alliant Energy's financial results, this press release includes reference to certain non-GAAP financial measures. These measures include the use of (1) income from continuing operations and EPS from continuing operations for the year ended December 31, 2017 excluding the write-down of regulatory assets due to the IPL retail electric rate review settlement, and the effects of Tax Reform; and (2) income from continuing operations and EPS from continuing operations for the year ended December 31, 2016 excluding asset valuation charges related to the Franklin County wind farm. Alliant Energy believes these non-GAAP financial measures are useful to investors because they provide an alternate measure to better understand and compare across periods the operating performance of Alliant Energy without the distortion of items that management believes are not normally associated with ongoing operations, and also provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance. Alliant Energy's management also uses income from continuing operations, as adjusted, to determine performance-based compensation.
In addition, Alliant Energy included in this press release IPL; WPL, excluding ATC Investment; Corporate Services; Utilities and Corporate Services; ATC Investment; and Non-utility and Parent EPS from continuing operations for the fourth quarter and year ended December 31, 2017 and 2016. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of segment performance and trends and provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance.
This press release references year-over-year variances in utility electric margins and utility gas margins. Utility electric margins and utility gas margins are non-GAAP financial measures that are reported and reconciled to the most directly comparable GAAP measure, operating income, in our 2017 Form 10-K.
This press release also includes temperature normalized non-GAAP EPS from continuing operations for the year ended December 31, 2017. Alliant Energy believes this non-GAAP measure is useful to investors because the measure facilitates period-to-period comparison of Alliant Energy's operating performance and provides investors with information on a basis consistent with measures that management uses to assess Alliant Energy's earnings growth rate.
The tax impact adjustment represents the impact of the tax effect of the pre-tax non-GAAP adjustments that are excluded from non-GAAP net income. The tax impact of the non-GAAP adjustments is calculated based on the estimated consolidated statutory tax rate.
Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the earnings summaries that follow, and in the case of temperature normalized non-GAAP EPS from continuing operations guidance, in the press release above.
Note: Unless otherwise noted, all "per share" references in this release refer to earnings per diluted share.
ALLIANT ENERGY CORPORATION
FULL YEAR EARNINGS SUMMARY (Unaudited)
The following tables provide a summary of Alliant Energy's results:
EPS: GAAP EPS Adjustments Non-GAAP EPS
----
2017 2016 2017 2016 2017 2016
---- ---- ---- ---- ---- ----
IPL $0.94 $0.95 $0.04 $- $0.98 $0.95
WPL, excluding ATC
Investment 0.81 0.75 (0.06) - 0.75 0.75
Corporate Services 0.07 0.05 - - 0.07 0.05
---- ---- --- ---
Subtotal for
Utilities and
Corporate
Services 1.82 1.75 (0.02) - 1.80 1.75
ATC Investment 0.11 0.10 - - 0.11 0.10
Non-utility and
Parent 0.06 (0.20) (0.04) 0.23 0.02 0.03
---- ----- ----- ---- ---- ----
EPS from
continuing
operations 1.99 1.65 (0.06) 0.23 1.93 1.88
EPS from
discontinued
operations - (0.01) - - - (0.01)
Alliant Energy
Consolidated $1.99 $1.64 ($0.06) $0.23 $1.93 $1.87
===== ===== ====== ===== ===== =====
Earnings (in
millions): GAAP Income (Loss) Adjustments Non-GAAP Income (Loss)
------------
2017 2016 2017 2016 2017 2016
---- ---- ---- ---- ---- ----
IPL $216.8 $215.6 $9.3 $- $226.1 $215.6
WPL, excluding ATC
Investment 186.6 169.6 (14.5) - 172.1 169.6
Corporate Services 13.3 12.1 - - 13.3 12.1
---- ---- --- ---
Subtotal for
Utilities and
Corporate
Services 416.7 397.3 (5.2) - 411.5 397.3
ATC Investment 25.4 23.1 - - 25.4 23.1
Non-utility and
Parent 13.8 (46.6) (7.4) 51.3 6.4 4.7
---- ----- ---- ---- --- ---
Earnings from
continuing
operations 455.9 373.8 (12.6) 51.3 443.3 425.1
Income (loss) from
discontinued
operations 1.4 (2.3) - - 1.4 (2.3)
Alliant Energy
Consolidated $457.3 $371.5 ($12.6) $51.3 $444.7 $422.8
====== ====== ====== ===== ====== ======
Adjusted, or non-GAAP, earnings do not include the following items that were included in the reported GAAP earnings:
Non-GAAP (Income) Loss Non-GAAP
Adjustments (in millions) EPS Adjustments
2017 2016 2017 2016
---- ---- ---- ----
Utilities and Corporate Services:
Write-down of regulatory assets due
to the IPL retail electric rate
review settlement, net of tax
impacts of ($3.6) million $5.5 $- $0.02 $-
Effects of Tax Reform for IPL 3.8 - 0.02 -
Effects of Tax Reform for WPL (14.5) - (0.06) -
----- --- ----- ---
Subtotal for Utilities and Corporate
Services (5.2) - (0.02) -
---- --- ----- ---
Non-utility and Parent:
Asset valuation charges for Franklin
County wind farm, net of tax
impacts of ($35.1) million - 51.3 - 0.23
Effects of Tax Reform (7.4) - (0.04) -
Subtotal for Non-utility and Parent (7.4) 51.3 (0.04) 0.23
Total Alliant Energy Consolidated ($12.6) $51.3 ($0.06) $0.23
====== ===== ====== =====
ALLIANT ENERGY CORPORATION
FOURTH QUARTER EARNINGS SUMMARY (Unaudited)
The following tables provide a summary of Alliant Energy's results for the fourth quarter:
EPS: GAAP EPS Adjustments Non-GAAP EPS
----
2017 2016 2017 2016 2017 2016
---- ---- ---- ---- ---- ----
IPL $0.07 $0.11 $0.02 $- $0.09 $0.11
WPL, excluding ATC
Investment 0.23 0.12 (0.06) - 0.17 0.12
Corporate Services 0.02 0.01 - - 0.02 0.01
---- ---- --- ---
Subtotal for
Utilities and
Corporate
Services 0.32 0.24 (0.04) - 0.28 0.24
ATC Investment 0.03 0.02 - - 0.03 0.02
Non-utility and
Parent 0.06 0.02 (0.04) - 0.02 0.02
EPS from
continuing
operations 0.41 0.28 (0.08) - 0.33 0.28
EPS from
discontinued
operations - - - - - -
Alliant Energy
Consolidated $0.41 $0.28 ($0.08) $- $0.33 $0.28
===== ===== ====== === ===== =====
Earnings (in
millions): GAAP Income (Loss) Adjustments Non-GAAP Income (Loss)
------------
2017 2016 2017 2016 2017 2016
---- ---- ---- ---- ---- ----
IPL $16.4 $24.0 $3.8 $- $20.2 $24.0
WPL, excluding ATC
Investment 53.2 26.5 (14.5) - 38.7 26.5
Corporate Services 3.4 3.3 - - 3.4 3.3
--- --- --- ---
Subtotal for
Utilities and
Corporate
Services 73.0 53.8 (10.7) - 62.3 53.8
ATC Investment 5.7 5.9 - - 5.7 5.9
Non-utility and
Parent 15.1 3.3 (7.4) - 7.7 3.3
---- --- ---- --- --- ---
Earnings from
continuing
operations 93.8 63.0 (18.1) - 75.7 63.0
Loss from
discontinued
operations - (0.3) - - - (0.3)
Alliant Energy
Consolidated $93.8 $62.7 ($18.1) $- $75.7 $62.7
===== ===== ====== === ===== =====
Details regarding GAAP EPS from continuing operations variances between fourth quarter of 2017 and 2016 for Alliant
Energy's operations are as follows:
2017 2016 Variance
---- ---- --------
Utilities and
Corporate Services:
Higher margins from
IPL interim retail
electric base rate
increase $0.06 $- $0.06
Higher margins from
WPL retail electric
and gas base rate
increases 0.06 - 0.06
Effects of Tax Reform 0.04 - 0.04
Higher depreciation
expense (0.04)
Other (0.04)
Total Utilities and
Corporate Services $0.08
=====
ATC Investment $0.01
=====
Non-utility and
Parent:
Effects of Tax Reform $0.04 $- $0.04
Total Non-utility and
Parent $0.04
=====
Adjusted, or non-GAAP, earnings for the fourth quarter of 2017 and 2016 do not include the following items that were included in the reported GAAP earnings:
Non-GAAP (Income) Loss Non-GAAP
Adjustments (in
millions) EPS Adjustments
2017 2016 2017 2016
---- ---- ---- ----
Utilities and Corporate Services:
Effects of Tax Reform at IPL $3.8 $- $0.02 $-
Effects of Tax Reform at WPL (14.5) - (0.06) -
Subtotal Utilities and Corporate
Services (10.7) - (0.04) -
----- --- ----- ---
Non-utility and Parent:
Effects of Tax Reform (7.4) - (0.04) -
Subtotal Non-utility and Parent (7.4) - (0.04) -
Total Alliant Energy Consolidated ($18.1) $- ($0.08) $-
====== === ====== ===
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Quarter Ended December 31, Year Ended December 31,
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except per share amounts)
Operating revenues:
Electric utility $695.6 $666.4 $2,894.7 $2,875.5
Gas utility 138.2 106.7 400.9 355.4
Other utility 13.1 13.6 47.5 48.6
Non-utility 9.2 10.3 39.1 40.5
--- ---- ---- ----
856.1 797.0 3,382.2 3,320.0
----- ----- ------- -------
Operating expenses:
Electric production fuel
and purchased power 203.4 207.7 818.1 854.0
Electric transmission
service 117.6 131.1 480.9 527.9
Cost of gas sold 75.9 62.0 211.4 194.3
Other operation and
maintenance:
Energy efficiency costs 22.0 9.2 75.0 45.2
Asset valuation charges for
Franklin County wind farm - - - 86.4
Other 161.9 159.1 576.0 561.3
Depreciation and
amortization 119.1 102.9 461.8 411.6
Taxes other than income
taxes 26.5 25.1 105.6 102.3
---- ---- ----- -----
726.4 697.1 2,728.8 2,783.0
----- ----- ------- -------
Operating income 129.7 99.9 653.4 537.0
----- ---- ----- -----
Interest expense and other:
Interest expense 56.6 51.4 215.6 196.2
Equity income from
unconsolidated
investments, net (11.9) (10.8) (44.8) (39.6)
Allowance for funds used
during construction (13.0) (18.2) (49.7) (62.5)
Interest income and other (0.1) (0.2) (0.5) (0.5)
---- ---- ---- ----
31.6 22.2 120.6 93.6
---- ---- ----- ----
Income from continuing
operations before income
taxes 98.1 77.7 532.8 443.4
Income taxes 1.8 12.2 66.7 59.4
--- ---- ---- ----
Income from continuing
operations, net of tax 96.3 65.5 466.1 384.0
Income (loss) from
discontinued operations,
net of tax - (0.3) 1.4 (2.3)
--- ---- --- ----
Net income 96.3 65.2 467.5 381.7
Preferred dividend
requirements of IPL 2.5 2.5 10.2 10.2
--- --- ---- ----
Net income attributable to
Alliant Energy common
shareowners $93.8 $62.7 $457.3 $371.5
===== ===== ====== ======
Weighted average number of
common shares outstanding
(basic and diluted) 231.2 227.4 229.7 227.1
===== ===== ===== =====
Earnings per weighted
average common share
attributable to Alliant
Energy common shareowners
(basic and diluted):
Income from continuing
operations, net of tax $0.41 $0.28 $1.99 $1.65
Loss from discontinued
operations, net of tax - - - (0.01)
--- --- --- -----
Net income $0.41 $0.28 $1.99 $1.64
===== ===== ===== =====
Amounts attributable to
Alliant Energy common
shareowners:
Income from continuing
operations, net of tax $93.8 $63.0 $455.9 $373.8
Income (loss) from
discontinued operations,
net of tax - (0.3) 1.4 (2.3)
--- ---- --- ----
Net income $93.8 $62.7 $457.3 $371.5
===== ===== ====== ======
Dividends declared per
common share $0.315 $0.29375 $1.26 $1.175
====== ======== ===== ======
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
December 31,
2017 2016
---- ----
(in millions)
ASSETS:
Current assets:
Cash and cash equivalents $27.9 $8.2
Other current assets 877.2 868.9
Property, plant and equipment,
net 11,234.5 10,279.2
Investments 396.1 337.6
Other assets 1,652.1 1,879.9
------- -------
Total assets $14,187.8 $13,373.8
========= =========
LIABILITIES AND EQUITY:
Current liabilities:
Current maturities of long-
term debt $855.7 $4.6
Other short-term borrowings 95.0 -
Commercial paper 320.2 244.1
Other current liabilities 878.1 913.3
Long-term debt, net
(excluding current portion) 4,010.6 4,315.6
Other liabilities 3,646.0 3,834.2
Equity:
Alliant Energy Corporation
common equity 4,182.2 3,862.0
Cumulative preferred stock of
IPL 200.0 200.0
Total equity 4,382.2 4,062.0
------- -------
Total liabilities and equity $14,187.8 $13,373.8
========= =========
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Year Ended December 31,
2017 2016
---- ----
(in millions)
Cash flows from
operating activities $983.4 $859.6
------ ------
Cash flows used for
investing
activities:
Construction and
acquisition
expenditures:
Utility business (1,281.8) (1,131.2)
Other (185.1) (65.6)
Other (29.4) 10.3
----- ----
Net cash flows used
for investing
activities (1,496.3) (1,186.5)
-------- --------
Cash flows from
financing
activities:
Common stock
dividends (288.3) (266.5)
Proceeds from
issuance of common
stock, net 149.6 26.6
Proceeds from
issuance of long-
term debt 550.0 800.0
Payments to retire
long-term debt (4.6) (313.4)
Net change in
commercial paper and
other short-term
borrowings 171.1 84.3
Other (45.2) (1.7)
----- ----
Net cash flows from
financing activities 532.6 329.3
----- -----
Net increase in cash
and cash equivalents 19.7 2.4
Cash and cash
equivalents at
beginning of period 8.2 5.8
--- ---
Cash and cash
equivalents at end
of period $27.9 $8.2
===== ====
KEY FINANCIAL AND OPERATING STATISTICS
December 31, 2017 December 31, 2016
----------------- -----------------
Common shares outstanding
(000s) 231,349 227,674
Book value per share $18.08 $16.96
Quarterly common dividend rate
per share $0.315 $0.29375
Quarter Ended December 31, Year Ended December 31,
2017 2016 2017 2016
---- ---- ---- ----
Utility electric sales (000s of megawatt-
hours)
Residential 1,678 1,634 6,904 7,152
Commercial 1,626 1,641 6,422 6,545
Industrial 2,739 2,689 10,885 10,702
Industrial - IPL co-
generation customers 201 236 884 940
--- --- --- ---
Retail subtotal 6,244 6,200 25,095 25,339
Sales for resale:
Wholesale 847 1,014 3,639 4,039
Bulk power and other 592 13 1,364 360
Other 22 25 94 100
--- --- --- ---
Total 7,705 7,252 30,192 29,838
===== ===== ====== ======
Utility retail electric customers (at
December 31)
Residential 814,609 811,459
Commercial 142,074 141,528
Industrial 2,612 2,546
----- -----
Total 959,295 955,533
======= =======
Utility gas sold and transported (000s of
dekatherms)
Residential 9,810 8,254 26,127 25,571
Commercial 7,073 5,626 19,501 18,820
Industrial 1,396 1,143 3,622 3,352
----- ----- ----- -----
Retail subtotal 18,279 15,023 49,250 47,743
Transportation / other 22,067 15,870 76,916 77,485
------ ------ ------ ------
Total 40,346 30,893 126,166 125,228
====== ====== ======= =======
Utility retail gas customers (at December
31)
Residential 368,098 366,786
Commercial 44,583 44,587
Industrial 373 385
--- ---
Total 413,054 411,758
======= =======
Estimated margin increases (decreases) from impacts of temperatures (in millions) -
Quarter Ended December 31, Year Ended December 31,
2017 2016 2017 2016
---- ---- ---- ----
Electric margins $1 ($6) ($16) $4
Gas margins - (3) (6) (7)
--- --- --- ---
Total temperature impact on
margins $1 ($9) ($22) ($3)
=== === ==== ===
Quarter Ended December 31, Year Ended December 31,
2017 2016 Normal 2017 2016 Normal
---- ---- ------ ---- ---- ------
Heating degree
days (HDDs) (a)
Cedar Rapids,
Iowa (IPL) 2,458 2,174 2,488 6,076 5,933 6,769
Madison,
Wisconsin (WPL) 2,544 2,285 2,509 6,569 6,420 7,043
Cooling degree
days (CDDs) (a)
Cedar Rapids,
Iowa (IPL) 18 23 12 747 971 748
Madison,
Wisconsin (WPL) 10 9 7 578 780 646
(a) HDDs and CDDs are calculated
using a simple average of the
high and low temperatures each
day compared to a 65 degree
base. Normal degree days are
calculated using a rolling
20-year average of historical
HDDs and CDDs.
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SOURCE Alliant Energy Corporation
