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Alliant Energy Announces First Quarter 2016 Results

MADISON, Wis., May 4, 2016 /PRNewswire/ -- Alliant Energy Corporation LNT, +0.78% today announced consolidated unaudited earnings per share (EPS) from continuing operations for the three months ended March 31 as follows:


2016


2015

Utilities, ATC and Corporate Services

$0.84



$0.86


Non-regulated and Parent

0.02



0.01


Alliant Energy Consolidated

$0.86



$0.87


"First quarter 2016 temperatures, as measured by heating degree days, were approximately 10% warmer than normal in our service territory resulting in $0.05 per share of lower earnings," said Patricia Kampling, Alliant Energy Chairman, President and CEO. "With the exception of the mild weather, results were in-line with our expectations allowing us to reaffirm our 2016 earnings guidance."

Utilities, ATC and Corporate Services - Alliant Energy's Utilities, American Transmission Company LLC (ATC) and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.84 per share of EPS from continuing operations in the first quarter of 2016, which was $0.02 per share lower than the first quarter of 2015. The primary drivers of lower EPS were lower electric and gas sales volumes caused by the mild temperatures in early 2016, higher depreciation expense and the dilution impact of common shares issued in 2015. Lower quarter-over-quarter EPS was partially offset by higher allowance for funds used during construction, lower retail electric customer billing credits at Interstate Power and Light Company (IPL), and lower energy efficiency cost recovery amortizations at Wisconsin Power and Light Company (WPL).

Non-regulated and Parent - Alliant Energy's Non-regulated and Parent operations generated $0.02 per share of EPS from continuing operations in the first quarter of 2016, which was an improvement of $0.01 per share compared to the first quarter of 2015.

Common Stock Split - On April 20, 2016, Alliant Energy's Board of Directors approved a two-for-one common stock split and a proportionate increase in the number of shares of common stock of Alliant Energy from 240 million shares to 480 million shares to implement the stock split. Alliant Energy shareowners of record at the close of business on May 4, 2016 will receive one additional share of Alliant Energy common stock for each share held on that date. The proportionate interest that a shareowner owns in Alliant Energy will not change as a result of the stock split. The additional shares are expected to be distributed on May 19, 2016 and post-split trading is expected to begin on May 20, 2016. Based on common shares outstanding as of March 31, 2016, upon the completion of the stock split, Alliant Energy will have approximately 227 million shares of common stock outstanding. All share and per share amounts in this earnings release have been reflected on a pre-split basis, except as otherwise noted. The stock split will require all historical common stock shares and EPS data to be recast in the second quarter of 2016.

Details regarding EPS from continuing operations variances between the first quarters of 2016 and 2015 for Alliant Energy are as follows:


Q1 2016


Q1 2015


Variance

Utilities, ATC and Corporate Services:






Estimated temperature impact on electric and gas sales

($0.05)



$0.04



($0.09)


Higher allowance for funds used during construction





0.03


Lower retail electric customer billing credits at IPL

(0.01)



(0.03)



0.02


Higher retail electric sales due to the additional day for leap year

0.02





0.02


Lower energy efficiency cost recovery amortizations at WPL





0.02


Higher depreciation expense





(0.02)


Dilution impact of shares issued in 2015





(0.02)


Other (includes higher estimated temperature-normalized retail electric sales)





0.02


Total Utilities, ATC and Corporate Services





($0.02)


Non-regulated and Parent:






Other





0.01


Total Non-regulated and Parent





$0.01


Estimated temperature impact on electric and gas sales - The impact of the mild temperatures on Alliant Energy's electric and gas sales in the first quarter of 2016, compared to normal temperatures, was estimated to be a $0.05 per share decrease in margins. By comparison, the net impact of the cold temperatures on Alliant Energy's electric and gas sales in the first quarter of 2015 was estimated to be a $0.04 per share increase in margins.

Lower retail electric customer billing credits at IPL - IPL is providing customer billing credits to its Iowa retail electric customers of $105 million in aggregate over the 2014-2016 period in connection with its approved Iowa retail electric base rate freeze through 2016. In 2016, IPL will credit customer bills by approximately $9 million and the credits will occur ratably throughout the year. By comparison, the billing credits in 2015 were approximately $24 million.

2016 Earnings Guidance

Alliant Energy is reaffirming EPS guidance for 2016, both before and after giving effect to Alliant Energy's previously announced 2-for-1 stock split as follows:


Pre-Split

Post-Split

Utilities, ATC and Corporate Services

$3.55-$3.80

$1.77-$1.90

Non-regulated and Parent

0.05-0.10

0.03-0.05

Alliant Energy Consolidated

$3.60-$3.90

$1.80-$1.95

Drivers for Alliant Energy's 2016 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 and operating conditions in its utility service territories
  • Continuing cost controls and operational efficiencies
  • Execution of IPL's and WPL's capital expenditure and financing plans
  • Consolidated effective tax rate of 18%

The 2016 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, discontinued operations, further impacts from anticipated changes to ATC's authorized return on equity, impact of the potential ATC restructuring, future changes in laws or regulations, adjustments made to deferred tax assets and liabilities from valuation allowances and organizational structure changes, 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 first quarter 2016 results is scheduled for Thursday, May 5th at 9:00 a.m. central time. Alliant Energy Chairman, President and Chief Executive Officer Patricia Kampling and Senior Vice President and Chief Financial Officer Tom Hanson 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 888-221-9591 (United States or Canada) or 913-312-1434 (International), passcode 8244179. 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 May 12, 2016, at 888-203-1112 (United States or Canada) or 719-457-0820 (International), passcode 8244179. 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 Resources, LLC, the parent company of Alliant Energy's non-regulated operations. Alliant Energy is an energy-services provider with utility subsidiaries serving approximately 950,000 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 Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT. For more information, visit the Company's Web...


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