Alliant Energy Announces 2018 Results
MADISON, Wis., Feb. 21, 2019 /PRNewswire/ -- Alliant Energy Corporation (Nasdaq: LNT) today announced U.S. generally accepted accounting principles (GAAP) and non-GAAP consolidated unaudited earnings per share (EPS) from continuing operations for 2018 and 2017 as follows:
GAAP EPS from Non-GAAP EPS from
Continuing Operations Continuing Operations
2018 2017 2018 2017
Utilities and
Corporate
Services $2.08 $1.82 $2.06 $1.80
American
Transmission
Company (ATC)
Holdings 0.12 0.11 0.12 0.11
Non-utility and
Parent (0.01) 0.06 (0.01) 0.02
Alliant Energy
Consolidated $2.19 $1.99 $2.17 $1.93
"We once again delivered solid financial and operational results in 2018. Our 2018 temperature normalized Non-GAAP earnings per share were $2.11, 6 percent above 2017 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 five years we have delivered a total shareholder return of 93 percent, 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 $2.08 per share of GAAP EPS from continuing operations in 2018, which was $0.26 per share higher than 2017. The primary drivers of higher GAAP EPS were higher margins due to Interstate Power and Light Company's (IPL's) and Wisconsin Power and Light Company's (WPL's) increasing rate base, higher retail electric and gas sales due to temperatures in 2018, and higher allowance for funds used during construction. These items were partially offset by higher depreciation expense.
Non-utility and Parent - Alliant Energy's Non-utility and Parent operations generated $(0.01) per share of GAAP EPS from continuing operations in 2018, which was $0.07 per share lower than 2017. The primary drivers of lower EPS were higher interest expense and benefits of Tax Cuts and Jobs Act (Federal Tax Reform) in 2017. These items were partially offset by higher equity income in 2018 from the wind farm in Oklahoma due to accelerated earnings as a result of Federal Tax Reform, which is expected to reverse over time.
Earnings Adjustments - Non-GAAP EPS for 2018 excludes earnings of $0.02 per share related to Federal Tax Reform adjustments as a result of clarifying rules issued in 2018. Non-GAAP EPS for 2017 excludes the write-down of regulatory assets due to the IPL retail electric rate review settlement and the initial impacts of Federal Tax Reform. 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 net impact of temperatures on retail electric and gas sales was a $0.06 per share gain in 2018. The temperature normalized non-GAAP EPS from continuing operations for fiscal year 2018 was $2.11. The estimated impact of 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 was $1.99.
Details regarding GAAP EPS from continuing operations variances between 2018 and 2017 for Alliant Energy are as follows:
2018 2017 Variance
Utilities and
Corporate
Services:
Higher margins
primarily from
earning on
increasing rate
base $0.24
Higher depreciation
expense (0.16)
Net temperature
impact on retail
electric and gas
sales $0.06 ($0.06) 0.12
Higher allowance
for funds used
during
construction 0.08
Lower energy
efficiency
amortization costs
at WPL 0.04
Equity dilution (0.04)
Higher interest
expense (0.03)
Net write-down of
regulatory assets
due to IPL retail
electric rate
review settlement (0.02) 0.02
Tax adjustments due
to Federal Tax
Reform in 2017 and
2018 0.02 0.04 (0.02)
Other 0.01
Total Utilities and
Corporate Services $0.26
ATC Holdings $0.01
Non-utility and
Parent:
Higher interest
expense ($0.07)
Tax adjustments due
to Federal Tax
Reform in 2017 0.04 (0.04)
Higher equity
income (primarily
attributed to the
wind investment in
Oklahoma) 0.04 0.04
Total Non-utility
and Parent ($0.07)
Higher margins primarily from earning on increasing rate base - 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. In February 2018, the IUB issued an order approving IPL's settlement reached in September 2017, for an annual electric base rate increase of $130 million, or approximately 9%. Final rates were effective May 1, 2018.
In May 2018, IPL filed a request with the IUB to increase annual gas base rates for its Iowa retail gas customers. The request was based on 2017 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 gas rate increase of $11 million, on an annual basis, was implemented effective May 14, 2018. In December 2018, the IUB issued an order approving IPL's settlement reached in September 2018, for an annual gas base rate increase of $14 million, or approximately 6%. Final rates were effective January 17, 2019. IPL recognized $0.16 per share of higher electric and gas margins in 2018 due to the retail electric and gas rate increases.
In December 2016, WPL received an order from the Public Service Commission of Wisconsin authorizing WPL to implement a retail electric rate increase effective January 1, 2017 followed by a freeze of such rates through the end of 2018. To reflect the higher margins in 2018, primarily from earning on increasing rate base, the order lowered the amortization of amounts that WPL previously over-recovered from its customers for electric transmission cost recovery beginning in January 2018. WPL recognized $0.08 per share of higher electric margins in 2018 due to lower transmission cost recovery amortization.
Estimated temperature impact on retail electric and gas sales - Alliant Energy's retail electric and gas sales increased in 2018 and decreased in 2017 largely due to impacts of temperatures on customer demand.
WPL's retail electric and gas rate settlement includes an earnings sharing mechanism whereby WPL must defer a portion of its earnings and return this amount to its retail electric and gas customers if its annual regulatory return on common equity exceeds 10.25% during 2018. As a result, a majority of the higher margins recognized at WPL as a result of the temperature impact on retail electric and gas sales in 2018 is currently expected to be returned to customers in the future.
A portion of Alliant Energy's performance pay is based on earnings. As a result, a portion of the higher earnings resulting from the temperature impact on retail electric and gas sales is offset by higher performance pay expense. Alliant Energy's estimated temperature impact on retail electric and gas sales, net of the WPL earnings sharing mechanism and the portion of performance pay associated with temperature impacts on earnings, is estimated to be a $0.06 per share increase in 2018 earnings. By comparison, the impact of temperatures in 2017 was estimated to be a $0.06 per share loss.
Tax adjustments due to Federal Tax Reform - The enactment of Federal Tax Reform had a material impact on the 2017 financial statements. The most significant provision of Federal 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. During the third quarter of 2018, additional rules were issued including clarifications of the treatment of bonus depreciation deductions. As a result of these clarifying rules, the impact of Federal Tax Reform was updated resulting in $0.02 per share of higher earnings in 2018.
2019 Earnings Guidance
Alliant Energy consolidated EPS guidance for 2019 remains unchanged. 2019 EPS guidance for the reporting companies is as follows:
Utilities and Corporate Services
$2.14 - $2.24
ATC Holdings
0.11 - 0.13
Non-utility and Parent
(0.08) - (0.06)
Alliant Energy Consolidated
$2.17 - $2.31
Assumptions for Alliant Energy's 2019 earnings guidance include, but are not limited to:
-- Ability of IPL and WPL to earn their authorized rates of return
-- Anticipated interim retail electric base rate increase to be implemented
by IPL
-- Stable economy and resulting implications on utility sales
-- Normal temperatures in its utility service territories
-- Execution of cost controls
-- Execution of capital expenditure and financing plans
-- Consolidated effective tax rate of 11%
The 2019 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, future changes in laws, regulations or regulatory policies, 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.
"We expect to continue to deliver solid earnings per share growth as a result of our strong pipeline of investments in renewable energy and electric and gas distribution. Our 2019 earnings guidance of $2.17 to $2.31 per share is consistent with our long-term growth objective of 5 to 7 percent annually," said Kampling. "The customers and the communities we serve will continue to benefit from reliable, low cost, cleaner energy."
Earnings Conference Call
A conference call to review the 2018 results is scheduled for Friday, February 22nd at 9:00 a.m. central time. Alliant Energy Chairman and Chief Executive Officer Patricia Kampling, President and Chief Operating Officer John Larsen, and Senior Vice President and Chief Financial Officer 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 1, 2019, 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 965,000 electric and 415,000 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 Nasdaq Global Select Market 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;
-- 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 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 all environmental and emissions
permits, the Coal Combustion Residuals rule, 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;
-- 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 holdings;
-- 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, allocation of mixed
service costs and state depreciation, and recoverability of the
associated regulatory assets from customers, when the differences
reverse in future periods;
-- the impacts of adjustments made to deferred tax assets and liabilities
from changes in the tax laws;
-- 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 "2019 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 2019 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, 2018 excluding the tax return adjustments due to Federal Tax Reform; and (2) 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 initial impacts of Federal Tax Reform. 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; Corporate Services; Utilities and Corporate Services; ATC Holdings; and Non-utility and Parent EPS from continuing operations for the fourth quarter and year ended December 31, 2018 and 2017. 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 2018 Form 10-K.
This press release also includes temperature-normalized non-GAAP EPS from continuing operations for the year ended December 31, 2018 and 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 adjustments represent the impact of the tax effect of the pre-tax non-GAAP adjustments 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 included in this press release 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, 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
---
2018 2017 2018 2017 2018 2017
---
IPL $1.13 $0.94
$- $0.04 $1.13 $0.98
WPL 0.89 0.81 (0.02) (0.06) 0.87 0.75
Corporate Services 0.06 0.07 0.06 0.07
Subtotal for
Utilities and
Corporate
Services 2.08 1.82 (0.02) (0.02) 2.06 1.80
ATC Holdings 0.12 0.11 0.12 0.11
Non-utility and
Parent (0.01) 0.06 (0.04) (0.01) 0.02
Alliant Energy
Consolidated $2.19 $1.99 ($0.02) ($0.06) $2.17 $1.93
Earnings (in
millions): GAAP Income (Loss) Adjustments Non-GAAP Income (Loss)
---
2018 2017 2018 2017 2018 2017
---
IPL $264.0 $216.8 ($1.1) $9.3 $262.9 $226.1
WPL 208.1 186.6 (5.5) (14.5) 202.6 172.1
Corporate Services 13.6 13.3 13.6 13.3
Subtotal for
Utilities and
Corporate
Services 485.7 416.7 (6.6) (5.2) 479.1 411.5
ATC Holdings 28.4 25.4 28.4 25.4
Non-utility and
Parent (2.0) 13.8 1.0 (7.4) (1.0) 6.4
Earnings from
continuing
operations 512.1 455.9 (5.6) (12.6) 506.5 443.3
Income from
discontinued
operations 1.4 1.4
Alliant Energy
Consolidated $512.1 $457.3 ($5.6) ($12.6) $506.5 $444.7
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
2018 2017 2018 2017
---
Utilities and Corporate Services:
Tax adjustments due to Federal Tax
Reform at WPL ($5.5) ($14.5) ($0.02) ($0.06)
Tax adjustments due to Federal Tax
Reform at IPL (1.1) 3.8 0.02
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
Subtotal for Utilities and Corporate
Services (6.6) (5.2) (0.02) (0.02)
Non-utility and Parent:
Tax adjustments due to Federal Tax
Reform 1.0 (7.4) (0.04)
Subtotal for Non-utility and Parent 1.0 (7.4) (0.04)
Total Alliant Energy Consolidated ($5.6) ($12.6) ($0.02) ($0.06)
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
---
2018 2017 2018 2017 2018 2017
---
IPL $0.17 $0.07
$- $0.02 $0.17 $0.09
WPL 0.16 0.23 (0.06) 0.16 0.17
Corporate Services 0.01 0.02 0.01 0.02
Subtotal for
Utilities and
Corporate
Services 0.34 0.32 (0.04) 0.34 0.28
ATC Holdings 0.04 0.03 0.04 0.03
Non-utility and
Parent (0.02) 0.06 (0.04) (0.02) 0.02
Alliant Energy
Consolidated $0.36 $0.41
$- ($0.08) $0.36 $0.33
Earnings (in
millions): GAAP Income (Loss) Adjustments Non-GAAP Income (Loss)
---
2018 2017 2018 2017 2018 2017
---
IPL $39.1 $16.4
$- $3.8 $39.1 $20.2
WPL 38.0 53.2 (14.5) 38.0 38.7
Corporate Services 3.1 3.4 3.1 3.4
Subtotal for
Utilities and
Corporate
Services 80.2 73.0 (10.7) 80.2 62.3
ATC Holdings 9.1 5.7 9.1 5.7
Non-utility and
Parent (4.0) 15.1 (7.4) (4.0) 7.7
Alliant Energy
Consolidated $85.3 $93.8
$- ($18.1) $85.3 $75.7
Details regarding GAAP EPS from continuing operations variances between fourth quarter of 2018 and 2017 for Alliant Energy's
operations are as follows:
2018 2017 Variance
Utilities and Corporate Services:
Higher margins
primarily from
earning on increasing
rate base $0.06
$- $0.06
Tax adjustments due to
Federal Tax Reform 0.04 (0.04)
Higher depreciation expense (0.04)
Higher allowance for funds used
during construction 0.03
Other 0.01
Total Utilities and Corporate
Services $0.02
ATC Holdings $0.01
Non-utility and Parent:
Tax adjustment due to
Federal Tax Reform
$- $0.04 ($0.04)
Higher interest expense (0.02)
Other (0.02)
Total Non-utility and Parent ($0.08)
Adjusted, or non-GAAP, earnings for the fourth quarter of 2017 does not include the following items that were included in the reported GAAP earnings:
Non-GAAP (Income) Loss
Non-GAAP
Adjustments (in millions) EPS Adjustments
2018 2017 2018 2017
---
Utilities and Corporate Services:
Tax adjustments due to Federal Tax
Reform IPL
$- $3.8
$- $0.02
Tax adjustments due to Federal Tax
Reform WPL - (14.5) (0.06)
Subtotal Utilities and Corporate
Services - (10.7) (0.04)
Non-utility and Parent:
Tax adjustments due to Federal 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,
2018 2017 2018 2017
---
(in millions, except per share amounts)
Revenues:
Electric utility $704.1 $695.6 $3,000.3 $2,894.7
Gas utility 147.6 138.2 446.6 400.9
Other utility 11.8 13.1 48.0 47.5
Non-utility 10.0 9.2 39.6 39.1
873.5 856.1 3,534.5 3,382.2
Operating expenses:
Electric production fuel and purchased power 215.5 203.4 855.0 818.1
Electric transmission service 120.5 117.6 495.7 480.9
Cost of gas sold 82.3 75.9 232.3 211.4
Other operation and maintenance 177.0 179.6 645.8 633.2
Depreciation and amortization 130.5 119.1 506.9 461.8
Taxes other than income taxes 26.3 26.5 104.4 105.6
752.1 722.1 2,840.1 2,711.0
Operating income 121.4 134.0 694.4 671.2
Other (income) and deductions:
Interest expense 63.2 56.6 247.0 215.6
Equity income from unconsolidated investments, net (13.0) (11.9) (54.6) (44.8)
Allowance for funds used during construction (23.8) (13.0) (75.6) (49.7)
Other 1.6 4.2 7.6 17.3
28.0 35.9 124.4 138.4
Income from continuing operations before income taxes 93.4 98.1 570.0 532.8
Income taxes 5.6 1.8 47.7 66.7
Income from continuing operations, net of tax 87.8 96.3 522.3 466.1
Income from discontinued operations, net of tax - 1.4
Net income 87.8 96.3 522.3 467.5
Preferred dividend requirements of IPL 2.5 2.5 10.2 10.2
Net income attributable to Alliant Energy common shareowners $85.3 $93.8 $512.1 $457.3
Weighted average number of common shares outstanding (basic and diluted) 236.0 231.2 233.6 229.7
===
Earnings per weighted average common share attributable to Alliant Energy common
shareowners (basic and diluted) $0.36 $0.41 $2.19 $1.99
Amounts attributable to Alliant Energy common shareowners:
Income from continuing operations, net of tax $85.3 $93.8 $512.1 $455.9
Income from discontinued operations, net of tax - 1.4
Net income $85.3 $93.8 $512.1 $457.3
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
December 31,
2018 2017
---
(in millions)
ASSETS:
Current assets:
Cash and cash
equivalents $20.9 $27.9
Other current
assets 764.2 877.2
Property, plant
and equipment,
net 12,462.4 11,234.5
Investments 431.3 396.1
Other assets 1,747.2 1,652.1
Total assets $15,426.0 $14,187.8
LIABILITIES AND EQUITY:
Current liabilities:
Current
maturities of
long-term debt $256.5 $855.7
Commercial paper 441.2 320.2
Other short-
term borrowings - 95.0
Other current
liabilities 946.4 878.1
Long-term debt,
net (excluding
current
portion) 5,246.3 4,010.6
Other
liabilities 3,749.9 3,646.0
Equity:
Alliant Energy
Corporation
common equity 4,585.7 4,182.2
Cumulative
preferred stock
of Interstate
Power and Light
Company 200.0 200.0
Total equity 4,785.7 4,382.2
Total
liabilities and
equity $15,426.0 $14,187.8
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Year Ended December 31,
2018 2017
---
(in millions)
Cash flows from operating activities:
Cash flows from operating
activities excluding accounts
receivable sold to a third
party $1,030.3 $994.4
Accounts receivable sold to a
third party (502.6) (472.8)
Net cash flows from operating
activities 527.7 521.6
Cash flows used for investing activities:
Construction and acquisition expenditures:
Utility business (1,568.3) (1,281.8)
Other (65.6) (185.1)
Cash receipts on sold
receivables 605.3 461.8
Other (38.2) (28.3)
Net cash flows used for
investing activities (1,066.8) (1,033.4)
Cash flows from financing activities:
Common stock dividends (312.2) (288.3)
Proceeds from issuance of common
stock, net 196.6 149.6
Proceeds from issuance of long-
term debt 1,500.0 550.0
Payments to retire long-term
debt (855.7) (4.6)
Net change in commercial paper
and other short-term
borrowings 26.0 171.1
Other (24.0) (45.2)
Net cash flows from financing
activities 530.7 532.6
Net increase (decrease) in cash,
cash equivalents and restricted
cash (8.4) 20.8
Cash, cash equivalents and
restricted cash at beginning of
period 33.9 13.1
Cash, cash equivalents and
restricted cash at end of
period $25.5 $33.9
KEY FINANCIAL AND OPERATING STATISTICS
December 31, 2018 December 31, 2017
---
Common
shares
outstanding
(000s) 236,063 231,349
Book
value
per
share $19.43 $18.08
Quarterly
common
dividend
rate
per
share $0.335 $0.315
Quarter Ended December 31, Year Ended December 31,
2018 2017 2018 2017
---
Utility electric sales (000s of megawatt-hours)
Residential 1,706 1,678 7,367 6,904
Commercial 1,590 1,626 6,487 6,422
Industrial 2,747 2,739 10,969 10,885
Industrial - co-generation customers 242 201 861 884
Retail subtotal 6,285 6,244 25,684 25,095
Sales for resale:
Wholesale 666 847 2,833 3,639
Bulk power and other 581 592 2,971 1,364
Other 29 22 96 94
Total 7,561 7,705 31,584 30,192
Utility retail electric customers (at December 31)
Residential 817,860 814,609
Commercial 142,192 142,074
Industrial 2,602 2,612
Total 962,654 959,295
Utility gas sold and transported (000s of dekatherms)
Residential 9,926 9,810 29,356 26,127
Commercial 7,135 7,073 21,003 19,501
Industrial 650 1,396 3,030 3,622
Retail subtotal 17,711 18,279 53,389 49,250
Transportation / other 22,471 22,067 90,357 76,916
Total 40,182 40,346 143,746 126,166
Utility retail gas customers (at December 31)
Residential 370,333 368,098
Commercial 44,490 44,583
Industrial 351 373
Total 415,174 413,054
Estimated margin increases (decreases) from impacts of temperatures (in millions) (a) -
Quarter Ended December 31, Year Ended December 31,
2018 2017 2018 2017
---
Electric margins $4 $1 $32 ($16)
Gas margins 1 3 (6)
Total temperature impact on margins $5 $1 $35 ($22)
(a) Not including the impact of the
WPL earnings sharing mechanism
and the portion of performance
pay associated with temperature
impacts on earnings.
Quarter Ended December 31,
Year Ended December 31,
2018 2017 Normal 2018 2017 Normal
Heating degree
days (HDDs) (a)
Cedar Rapids,
Iowa (IPL) 2,602 2,458 2,450 6,868 6,076 6,655
Madison,
Wisconsin (WPL) 2,654 2,544 2,472 7,303 6,569 6,939
Cooling degree
days (CDDs) (a)
Cedar Rapids,
Iowa (IPL) 16 18 14 1,032 747 793
Madison,
Wisconsin (WPL) 13 10 8 799 578 672
(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
