HALIFAX, Nova Scotia--(BUSINESS WIRE)--
Emera (TSX:EMA) today reported results for the second quarter of
2015.
Highlights:
Adjusted Earnings (excluding after-tax mark-to-market impacts)
-
Adjusted earnings per share(1) increased 6.5% in the
quarter to $0.33.
-
Year-to-date adjusted earnings per share(1) increased
12.7% to $1.51.
-
Adjusted net income(1) increased 8.6% to $48.0 million this
quarter.
-
Year-to-date adjusted net incomeincreased 15% to
$219.6 million.
-
Results include a $5.4 million after tax cost ($0.04 per common share)
related to restructuring at Barbados Light & Power Company Limited
(BLPC) in Q2 2015.
Earnings (including after-tax mark-to-market impacts)
-
Earnings per share decreased to $0.07 in Q2 2015 (Q2 2014: $0.17) and
year-to-date earnings per share decreased to $1.17(YTD 2014, $1.59),
primarily as a result of mark-to-market changes in the trading and
marketing business.
Dividends:
- Emera announced a 19% increase in its annual common share dividend to
$1.90 from $1.60.
-
Annual dividend growth target increased to 8% through 2019.
“Emera continues to deliver solid growth in adjusted earnings” said
Chris Huskilson, President and CEO of Emera Inc. “This record of growth
and the results of a recently completed long-term strategic review of
the business led the Board of Directors to approve a 19% increase in our
common share dividend, and an increase in our annual dividend growth
target to 8% per year through 2019.”
Consolidated Financial Highlights (in millions
of $CAD, except per share amounts)
|
|
|
|
| Three months ended
June 30 |
| Six months ended
June 30 |
|
|
|
|
|
| 2015 |
|
|
| 2014 |
|
|
| 2015 |
|
|
| 2014 |
| Operating revenues |
|
|
|
$
|
537.0
|
|
|
$
|
566.6
|
|
|
$
|
1,437.3
|
|
|
$
|
1,616.9
|
| Adjusted EBITDA(1)*
|
|
|
|
$
|
205.9
|
|
|
$
|
185.2
|
|
|
$
|
590.1
|
|
|
$
|
516.2
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to common shareholders |
|
|
|
$
|
10.0
|
|
|
$
|
24.5
|
|
|
$
|
170.1
|
|
|
$
|
227.3
|
| After-tax mark-to-market gain (loss) |
|
|
|
|
($38.0 |
)
|
|
|
($19.7 |
)
|
|
|
($49.5 |
)
|
|
$
|
36.5
|
| Adjusted net income attributable to common shareholders(1)*
|
|
|
|
$
|
48.0
|
|
|
$
|
44.2
|
|
|
$
|
219.6
|
|
|
$
|
190.8
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share - basic |
|
|
|
$
|
0.07
|
|
|
$
|
0.17
|
|
|
$
|
1.17
|
|
|
$
|
1.59
|
| Adjusted earnings per common share – basic(1)*
|
|
|
|
$
|
0.33
|
|
|
$
|
0.31
|
|
|
$
|
1.51
|
|
|
$
|
1.34
|
| Dividends per common share declared |
|
|
|
$
|
0.4000
|
|
|
$
|
0.3625
|
|
|
$
|
0.7875
|
|
|
$
|
0.7250
|
| Total Assets (as at June 30) |
|
|
|
$
|
9,887.4
|
|
|
$
|
9,069.9
|
|
|
|
| Weighted average shares of common stock outstanding - basic
(millions of shares for the three months ended June 30) |
|
|
|
|
145.4
|
|
|
|
143.2
|
|
|
|
*Adjusted EBITDA(1), Adjusted net
income(1) and Adjusted earnings per common share(1)
excludes the effect of mark-to-market adjustments.
Operating revenues decreased 5.2% to $537.0 million in Q2 2015
compared to the same period last year. The decrease was primarily due to
mark-to-market changes and reduced revenue at the New England gas
generating facilities and BLPC. The decrease was partially offset by
increased revenues at Nova Scotia Power as a result of recovery of prior
years’ fuel costs and load growth.
Cash flow from operations decreased 8.3% to $376.0 million for
the six months ending June 30th 2015 compared to the same
period last year. The decrease was primarily due to lower trading and
marketing margin, demand side management program costs deferred at NSPI
and increased investment in non-cash working capital.
Adjusted net income(1) increased $3.8 million to $48.0
million in Q2 2015 (Q2 2014: $44.2 million), primarily due to higher
contributions from Emera Maine and the impact of stronger USD, partially
offset by the BLPC restructuring costs.
After-tax mark-to-market adjustments negatively affected net
income by $38.0 million or $0.26 per common share in Q2 2015 and $19.7
million or $0.14 per common share in Q2 2014, primarily due to the
reversal of mark-to-market losses in 2014 and changes in gas and power
contract positions.
Items Affecting the Quarter
Barbados Light & Power Company Limited (BLPC) Restructuring Costs
In Q2 2015, BLPC recorded severance costs relating to corporate
restructuring. The after-tax effect on Emera’s Consolidated Net Income
was $5.4 million or $0.04 per common share. These costs have been
expensed, and upon completion of its regulatory filing, BLPC intends to
defer these costs.
Segmented Results
Emera reports its results in six operating segments: Nova Scotia Power,
Emera Maine, Emera Caribbean, Pipelines, Emera Energy, and Corporate &
Other.
Quarterly Segmented Results (in millions of
$CAD, except per share amounts)
|
|
|
|
| Adjusted Net Income(1) |
|
|
|
|
| Q2 2015 |
| Q2 2014 |
|
|
| YTD 2015 |
| YTD 2014 |
| Nova Scotia Power Inc. |
|
|
| $16.9 |
| $17.1 | | | $84.9 |
| $83.9 |
| Emera Maine |
|
|
| $13.7 |
| $7.0 | | | $25.2 |
| $17.4 |
| Emera Caribbean |
|
|
| $4.8 |
| $7.8 | | | $13.6 |
| $14.4 |
| Pipelines* |
|
|
| $9.3 |
| $8.3 | | | $19.2 |
| $15.5 |
| Emera Energy* |
|
|
| $3.4 |
| $5.2 | | | $79.8 |
| $66.2 |
| Corporate & Other |
|
|
| $(0.1) |
| $(1.2) | | | $(3.1) |
| $(6.6) |
| TOTAL |
|
|
| $48.0 |
| $44.2 | | | $219.6 |
| $190.8 |
| Adjusted EPS (basic)(1) |
|
|
| $0.33 |
| $0.31 | | | $1.51 |
| $1.34 |
*Adjusted net income(1)excludes after-tax
mark-to-market loss in Emera Energy and Pipelines of $38.0 million (Q2
2014, after-tax mark-to-market loss of $19.7 million).
Nova Scotia Power Inc.’s net income was $16.9 million in Q2 2015,
a decrease of $0.2 million from the $17.1 million in Q2 2014. NSPI’s
earnings for the full year are expected to grow modestly compared to
2014.
Emera Maine contributed $13.7 million to consolidated net income
in Q2 2015, an increase of $6.7 million compared to Q2 2014 net income
of $7.0 million. The higher net income was primarily due to transmission
revenue adjustments, changes in the FERC transmission rate refund and
the impact of a stronger USD.
Emera Caribbean’s net income of $4.8 million in Q2 2015
represents a decrease of $3.0 million compared to Q2 2014 income of $7.8
million. The decrease was primarily due to corporate restructuring costs
at BLPC, partially offset by payroll cost savings and reduced
maintenance costs.
Pipelines’ net income, adjusted to exclude mark-to-market
impacts, was $9.3 million in Q2 2015, an increase of $1.0 million over
Q2 2014. The increase was primarily due to lower interest expense and
the impact of a stronger USD, partially offset by increased income tax
expense.
Emera Energy’s net income, adjusted to exclude mark-to-market
changes, was $3.4 million in Q2 2015 compared to $5.2 million in the
same quarter last year. The $1.8 million decrease was primarily due to
lower contributions from trading and marketing and increased interest
expense, partially offset by increased contributions from Emera’s equity
investment in Bear Swamp and increased electric margin at the New
England gas generating facilities.
Corporate & Other’s net loss was $0.1 million in Q2 2015 (Q2
2014, $1.2 million). The improved result was primarily due to a decrease
in interest expense due to the maturity of long-term debt and increased
income from equity investments, partially offset by increased business
development costs and preferred stock dividends.
(1) Non-GAAP Measures
Emera uses financial measures that do not have standardized meaning
under USGAAP and may not be comparable to similar measures presented by
other entities. Emera calculates the non-GAAP measures by adjusting
certain GAAP and non-GAAP measures for specific items the Company
believes are significant, but not reflective of underlying operations in
the period. Refer to the Non-GAAP Financial Measures section of our
Management's Discussion and Analysis ("MD&A") for further discussion of
these items.
Forward Looking Information
This news release contains forward looking information. Actual future
results may differ materially. Additional information related to Emera,
including the company’s Annual Information Form, can be found on SEDAR
at www.sedar.com.
Teleconference Call
The company will be hosting a teleconference Tuesday, August 11, 2015 at
11:00am Atlantic time (10:00amToronto/Montreal/New York; 9:00amWinnipeg; 8:00amCalgary; 7:00amVancouver) to discuss the Q2 2015
financial results.
Analysts and other interested parties in North America wanting to
participate in the call should dial 1 (888) 241-0394 at least 10 minutes
prior to the start of the call. International participants wanting to
participate should dial (647) 427-3413. No pass code is required. The
teleconference will be recorded. If you are unable to join the
teleconference live, you can dial for playback, toll-free at
1-855-859-2056. The Conference ID is 76937639 (available until midnight,
August 28, 2015).
The teleconference will also be web cast live at emera.com
and available for playback for one year.
About Emera
Emera Inc. is geographically diverse energy and services company
headquartered in Halifax, Nova Scotia with approximately $10 billion in
assets and 2014 revenues of $2.97 billion. The company invests in
electricity generation, transmission and distribution, as well as gas
transmission and utility energy services. Emera's strategy is focused on
the transformation of the electricity industry to cleaner generation and
the delivery of that clean energy to market. Emera has investments
throughout northeastern North America, and in four Caribbean countries.
Emera continues to target having 75-85% of its adjusted earnings come
from rate-regulated businesses. Emera common and preferred shares are
listed on the Toronto Stock Exchange and trade respectively under the
symbol EMA, EMA.PR.A, EMA.PR.C, EMA.PR.E, and EMA.PR.F. Additional
Information can be accessed at www.emera.com
or at www.sedar.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150811005678/en/
Emera Inc.
Scott LaFleur, (902) 428-6375
Acting Manager,
Investor Relations
Source: Emera Inc.