Alliant Energy reports Q2’12 2012 results

MADISON, Wis., Aug. 3, 2012 /PRNewswire/ — Alliant Energy Corporation (NYSE: LNT) today announced second quarter U.S. generally accepted accounting principles (GAAP) and non-GAAP consolidated earnings per share (EPS) from continuing operations as follows:








 

Adjusted (non-GAAP) EPS from Continuing Operations

 

GAAP EPS from Continuing Operations

       
 

Q2 2012

 

Q2 2011

 

Q2 2012

 

Q2 2011

 

Utility and Corporate Services

$0.47

 

$0.35

 

$0.49

 

$0.20

 

Non-regulated and Parent

0.11

 

0.08

 

0.11

 

0.25

 

Alliant Energy Consolidated

$0.58

 

$0.43

 

$0.60

 

$0.45

 

“Second quarter non-GAAP results were above our expectations, largely due to weather related sales,” said Patricia Kampling, Alliant Energy Chairman, President and CEO.  “With the warmer July weather, we are forecasting 2012 earnings toward the top end of our 2012 earnings guidance range.”

Utility and Corporate Services – Alliant Energy’s Utility and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.47 per share of non-GAAP EPS from continuing operations in the second quarter of 2012, which was $0.12 per share higher than the second quarter of 2011.  Warm weather in the second quarter of 2012 led to higher electric sales to residential and commercial customers, positively impacting Alliant Energy’s utility business.  Higher income from Interstate Power and Light Company’s (IPL’s) tax benefit rider also impacted second quarter earnings, but is not expected to have a material impact on 2012 total year earnings.

Non-regulated and Parent – Alliant Energy’s non-regulated and parent operations generated $0.11 per share of non-GAAP EPS from continuing operations in the second quarter of 2012, which was $0.03 per share higher than the second quarter of 2011.  Earnings for Alliant Energy’s non-regulated and parent businesses were, in part, positively impacted by higher earnings generated by Alliant Energy’s Transportation business.

Earnings Adjustments – 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.  Adjusted, or non-GAAP, operating results for the second quarter of 2012 and 2011 do not include the following items (after-tax) that were included in reported GAAP earnings:















 

Q2 non-GAAP Earnings

   
 

Adjustments

 

Q2 non-GAAP EPS

 

(in millions)

 

Adjustments

 

2012

 

2011

 

2012

 

2011

Tax benefits from Wisconsin tax legislation

$–

 

$18.9

 

$–

 

$0.17

Net regulatory-related (charges)/credits from IPL rate case decision in June 2011

 

(6.6)

 

 

(0.06)

Cash Balance Pension Plan charges

 

(5.3)

 

 

(0.05)

Regulatory asset impairments

 

(4.0)

 

 

(0.04)

Regulatory-related credits from WPL rate case decision in June 2012

1.9

 

 

0.02

 

 

$1.9

 

$3.0

 

$0.02

 

$0.02

         
                       

Details regarding GAAP EPS from continuing operations variances between the second quarters of 2012 and 2011 for Alliant Energy’s operations are as follows:








 

Q2 GAAP EPS

 

2012

 

2011

Utility and Corporate Services

$0.49

 

$0.20

Non-regulated and Parent

0.11

 

0.25

Alliant Energy Consolidated

$0.60

 

$0.45


















   

Q2 2012

 

Q2 2011

 

Variance

Utility and Corporate Services operations:

         
 

Net regulatory-related (charges)/credits from IPL rate case decision in June 2011

$–

 

($0.06)

 

$0.06

 

Cash Balance Pension Plan charges

 

(0.05)

 

0.05

 

Regulatory asset impairments

 

(0.04)

 

0.04

 

Weather impact on electric and gas sales

0.06

 

0.02

 

0.04

 

Tax benefit rider impact at IPL (timing between quarters)

(0.05)

 

(0.09)

 

0.04

 

Regulatory-related credits from WPL rate case decision in June 2012

0.02

 

 

0.02

 

Other

       

0.04

                    Total Utility and Corporate Services operations

       

$0.29

Non-regulated and Parent operations:

         

Tax benefits from Wisconsin tax legislation

$–

 

$0.17

 

($0.17)

Tax benefit rider impact at parent (timing between quarters)

0.04

 

0.04

 

Other (includes Transportation business results)

       

0.03

            Total Non-regulated and Parent operations

       

($0.14)

Weather impact on electric and gas sales – Weather in Alliant Energy’s service territories in the second quarter of 2012 was warmer than normal resulting in positive electric sales impacts, partially offset by negative gas sales impacts. The net impact of the warm weather on Alliant Energy’s electric and gas sales in the second quarter of 2012 was estimated to be a $0.06 per share net increase in electric and gas margins.     

Tax benefit rider – In February 2011, IPL received a rate order from the Iowa Utilities Board authorizing IPL to implement its proposed tax benefit rider, which utilizes income tax benefits from certain tax initiatives to provide retail electric customers in Iowa credits on their electric bills.  These credits on customers’ electric bills reduced IPL’s electric revenues by $61 million during 2011 and are expected to reduce IPL’s electric revenues by approximately $80 million during calendar year 2012.  The tax benefit rider also results in an equivalent reduction in IPL’s income tax expense from the benefits of the tax initiatives, resulting in no material impact on 2011 and 2012 total year EPS.  While the tax benefit rider is not expected to have a material impact on total year EPS, it does result in considerable quarter-over-quarter variation in EPS at IPL as well as the Parent.  The credit on customer bills is based on kilowatt-hour usage, which is fairly consistent throughout the year.  However, the offsetting tax benefits are recorded as a percentage of expected earnings for IPL and for Alliant Energy each quarter, which fluctuates significantly causing the considerable quarter-over-quarter variation.  The following table shows the estimated quarterly impacts of the tax benefit rider on EPS at IPL and the Parent for 2012 and 2011:












 

Q1-12

 

Q2-12

 

Q3-12

 

Q4-12

 

2012

IPL

($0.09)

 

($0.05)

 

$0.20

 

($0.06)

 

$–

Parent

0.06

 

0.04

 

(0.14)

 

0.04

 

 

($0.03)

 

($0.01)

 

$0.06

 

($0.02)

 

$–

                   
 

Q1-11

 

Q2-11

 

Q3-11

 

Q4-11

 

2011

IPL

$0.02

 

($0.09)

 

$0.12

 

($0.05)

 

$–

Parent

0.02

 

0.04

 

(0.10)

 

0.04

 

 

$0.04

 

($0.05)

 

$0.02

 

($0.01)

 

$–

Regulatory-related credits from WPL retail rate case decision in June 2012 – On June 15, 2012, the Public Service Commission of Wisconsin (PSCW) issued its oral decision on the 2013/2014 test period electric and gas retail rate case request filed by WPL in May 2012.  The regulatory-related credits from this decision resulted in an increase in earnings of $0.02 per share in the second quarter of 2012. 

2012 Earnings Guidance

Alliant Energy is reaffirming its 2012 earnings guidance, which excludes charges associated with non-recurring regulatory-related credits from the PSCW rate case decision discussed throughout this release.






Utility and Corporate Services

$2.65 – $2.85

Non-regulated and Parent

0.10 – 0.20

Alliant Energy Consolidated                    

$2.75 – $3.05

The 2012 earnings guidance does not include the impacts of any non-cash valuation adjustments, regulatory-related charges or credits, reorganization or restructuring charges, discontinued operations, changes in laws or regulations, changes to government incentive elections for wind projects, adjustments made to deferred tax assets and liabilities from valuation allowances and state apportionment assumptions, pending lawsuits and disputes, federal and state income tax audits and other Internal Revenue Service proceedings or changes in accounting principles that may impact the reported results of Alliant Energy.  As disclosed in the 2011 earnings release, the 2012 earnings guidance excludes a charge of $0.14 per share incurred in the first quarter of 2012 caused by increased tax obligations at the utilities due to state tax apportionment changes resulting from the planned sale of RMT.

Drivers for Alliant Energy’s 2012 earnings guidance include, but are not limited to:

  • Stable economy and resulting implications on utility sales
  • Normal weather and operating conditions in its utility service territories for the remainder of the year
  • Ability of IPL and WPL to earn their authorized rates of return
  • Ability of WPL to recover future purchased power, fuel and fuel-related costs through rates in a timely manner
  • Continuing cost controls and operational efficiencies
  • Execution of IPL’s, WPL’s and Alliant Energy Resources, LLC’s (Resources’) capital expenditure plans
  • RMT sale execution
  • Consolidated effective tax rate of 17% (excluding the impacts of the non-recurring state income tax charge)

Projected Capital Expenditures

Alliant Energy has revised its projected capital expenditures for 2012 through 2016 as follows (in millions):
















   

2012

 

2013

 

2014

 

2015

 

2016

 

Utility business (a):

                     

        WPL gas – Riverside

 

$390

 

$–

 

$–

 

$–

 

$–

 

        IPL gas – New facility

 

5

 

10

 

100

 

325

 

200

 

   Total Generation – new facilities

 

395

 

10

 

100

 

325

 

200

 

   Environmental

 

275

 

365

 

200

 

225

 

175

 

   Generation performance improvements

 

30

 

15

 

60

 

15

 

35

 

   Other utility capital expenditures

 

350

 

355

 

405

 

410

 

410

 

            Total utility business

 

1,050

 

745

 

765

 

975

 

820

 

Corporate Services (b)

 

60

 

30

 

50

 

35

 

25

 

Resources wind – Franklin County (b)

 

65

 

 

15

 

 

 

Other (b)

 

10

 

5

 

5

 

5

 

5

 
   

$1,185

 

$780

 

$835

 

$1,015

 

$850

 






   

(a) 

Cost estimates represent IPL’s and WPL’s estimated portion of total escalated construction and acquisition expenditures and exclude AFUDC, if applicable.

(b)  

Cost estimates represent total escalated construction expenditures and exclude capitalized interest.

Earnings Conference Call

A conference call to review the second quarter of 2012 results is scheduled for Friday, August 3rd at 9:00 a.m. central time.  Alliant Energy Chairman, President and Chief Executive Officer Patricia Kampling 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.































ALLIANT ENERGY CORPORATION

SECOND QUARTER 2012 EARNINGS SUMMARY

           

A summary of Alliant Energy’s second quarter 2012 results compared to second quarter 2011 results is as follows

           

EPS:

GAAP EPS

 

Adjustments

 

 

Non-GAAP EPS

 

Q2 2012

 

Q2 2011

 

Q2 2012

 

Q2 2011

 

Q2 2012

 

Q2 2011

IPL

$0.15

 

($0.02)

 

$–

 

$0.10

 

$0.15

 

$0.08

WPL

0.32

 

0.22

 

(0.02)

 

0.05

 

0.30

 

0.27

Corporate Services

0.02

 

 

 

 

0.02

 

   Subtotal for Utility and

   Corporate Services

0.49

 

0.20

 

(0.02)

 

0.15

 

0.47

 

0.35

Non-regulated and Parent

0.11

 

0.25

 

 

(0.17)

 

0.11

 

0.08

EPS from continuing operations

0.60

 

0.45

 

(0.02)

 

(0.02)

 

0.58

 

0.43

EPS from discontinued operations

 

0.01

 

 

 

 

0.01

Alliant Energy Consolidated

$0.60

 

$0.46

 

($0.02)

 

($0.02)

 

$0.58

 

$0.44

                         

Earnings (in millions):

GAAP Income (Loss)

 

Adjustments

 

 

Non-GAAP Income (Loss)

 

Q2 2012

 

Q2 2011

 

Q2 2012

 

Q2 2011

 

Q2 2012

 

Q2 2011

IPL

$16.6

 

($2.3)

 

$–

 

$10.6

 

$16.6

 

$8.3

WPL

35.2

 

24.1

 

(1.9)

 

5.1

 

33.3

 

29.2

Corporate Services

2.2

 

 

 

 

2.2

 

   Subtotal for Utility and

   Corporate Services

54.0

 

21.8

 

(1.9)

 

15.7

 

52.1

 

37.5

Non-regulated and Parent

11.5

 

28.5

 

 

(18.7)

 

11.5

 

9.8

Total earnings from continuing operations

65.5

 

50.3

 

(1.9)

 

(3.0)

 

63.6

 

47.3

Income from discontinued operations

0.4

 

0.8

 

 

 

0.4

 

0.8

Alliant Energy Consolidated

$65.9

 

$51.1

 

($1.9)

 

($3.0)

 

$64.0

 

$48.1

                         

































































 
 

 

ALLIANT ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

       
 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2012

 

2011

 

2012

 

2011

 

(dollars in millions)

Operating revenues:

             

Utility:

             

Electric

$612.6

 

$620.5

 

$1,185.0

 

$1,240.8

Gas

50.0

 

67.1

 

217.1

 

296.1

Other

13.8

 

13.3

 

27.5

 

30.0

Non-regulated

13.9

 

11.6

 

26.4

 

22.8

 

690.3

 

712.5

 

1,456.0

 

1,589.7

               
               

Operating expenses:

             

Utility:

             

Electric production fuel and energy purchases

168.9

 

180.7

 

328.8

 

374.7

Purchased electric capacity

70.7

 

67.2

 

132.2

 

125.0

Electric transmission service

79.4

 

80.1

 

160.8

 

153.7

Cost of gas sold

18.6

 

34.8

 

123.4

 

191.2

Other operation and maintenance

137.9

 

168.9

 

287.9

 

329.5

Non-regulated operation and maintenance

0.7

 

4.0

 

4.9

 

8.6

Depreciation and amortization

80.8

 

81.5

 

163.8

 

159.3

Taxes other than income taxes

24.5

 

24.7

 

49.8

 

49.8

 

581.5

 

641.9

 

1,251.6

 

1,391.8

               
               

Operating income

108.8

 

70.6

 

204.4

 

197.9

               
               

Interest expense and other:

             

Interest expense

38.6

 

40.4

 

77.5

 

80.9

Equity income from unconsolidated investments, net

(10.6)

 

(9.6)

 

(20.0)

 

(19.5)

Allowance for funds used during construction

(4.8)

 

(2.7)

 

(8.6)

 

(5.8)

Interest income and other

(0.6)

 

(0.8)

 

(1.7)

 

(1.6)

 

22.6

 

27.3

 

47.2

 

54.0

               
               

Income from continuing operations before

income taxes

86.2

 

43.3

 

157.2

 

143.9

               
               

Income tax expense (benefit)

16.8

 

(11.2)

 

44.5

 

11.2

               
               

Income from continuing operations, net of tax

69.4

 

54.5

 

112.7

 

132.7

               
               

Income (loss) from discontinued operations,

net of tax

0.4

 

0.8

 

(4.0)

 

2.3

               
               

Net income

69.8

 

55.3

 

108.7

 

135.0

               
               

Preferred dividend requirements of subsidiaries

3.9

 

4.2

 

7.9

 

10.4

               
               

Net income attributable to Alliant Energy common

shareowners

$65.9

 

$51.1

 

$100.8

 

$124.6

               
               




































 

 

ALLIANT ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

       
 

June 30, 2012

 

Dec. 31, 2011

 

(in millions)

ASSETS:

     

Property, plant and equipment:

     

Utility plant in service, net of accumulated depreciation

$6,353.5

 

$6,322.4

Utility construction work in progress

378.3

 

257.2

Other property, plant and equipment, net of accumulated depreciation

516.2

 

453.7

Current assets:

     

Cash and cash equivalents

30.8

 

11.4

Other current assets

889.6

 

859.2

Investments

308.4

 

300.7

Other assets

1,457.4

 

1,483.3

Total assets

$9,934.2

 

$9,687.9

       

CAPITALIZATION AND LIABILITIES:

     

Capitalization:

     

Alliant Energy Corporation common equity

$3,014.4

 

$3,013.0

Cumulative preferred stock of subsidiaries, net

205.1

 

205.1

Noncontrolling interest

1.8

 

1.8

Long-term debt, net (excluding current portion)

2,752.8

 

2,703.1

Total capitalization

5,974.1

 

5,923.0

       

Current liabilities:

     

Current maturities of long-term debt

1.4

 

1.4

Commercial paper

162.8

 

102.8

Other current liabilities

793.1

 

751.0

Other long-term liabilities and deferred credits

3,002.8

 

2,909.7

Total capitalization and liabilities

$9,934.2

 

$9,687.9

       
































   
   

 

ALLIANT ENERGY CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

 
         
 

Six Months Ended June 30,

 

2012

 

2011

 

(in millions)

Cash flows from operating activities

$339.2

 

$466.8

       

Cash flows used for investing activities:

     

Construction and acquisition expenditures:

     

Utility business

(247.3)

 

(338.1)

Alliant Energy Corporate Services, Inc. and non-regulated businesses

(75.1)

 

(20.6)

Other

0.6

 

17.6

Net cash flows used for investing activities

(321.8)

 

(341.1)

       

Cash flows from (used for) financing activities:

     

Common stock dividends

(99.7)

 

(94.2)

Net change in commercial paper

110.0

 

(47.4)

Payments to redeem preferred stock

 

(40.0)

Other

(8.3)

 

(26.3)

Net cash flows from (used for) financing activities

2.0

 

(207.9)

       

Net increase (decrease) in cash and cash equivalents

19.4

 

(82.2)

Cash and cash equivalents at beginning of period

11.4

 

159.3

Cash and cash equivalents at end of period

$30.8

 

$77.1

       
         








KEY FINANCIAL STATISTICS

 

June 30, 2012

 

June 30, 2011

Common shares outstanding (000s)

110,976

 

110,980

Book value per share

$27.16

 

$26.38

Quarterly common dividend rate per share

$0.45

 

$0.425







































 
 

 

KEY OPERATING STATISTICS

       
 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2012

 

2011

 

2012

 

2011

Utility electric sales (000s of MWh)

             

    Residential

1,734

 

1,681

 

3,597

 

3,705

    Commercial

1,534

 

1,488

 

3,049

 

3,021

    Industrial

2,864

 

2,895

 

5,679

 

5,607

        Retail subtotal

6,132

 

6,064

 

12,325

 

12,333

    Sales for resale:

             

        Wholesale

778

 

812

 

1,535

 

1,655

        Bulk power and other

362

 

670

 

447

 

1,142

    Other

37

 

37

 

74

 

75

        Total

7,309

 

7,583

 

14,381

 

15,205

               

Utility retail electric customers (at June 30)

             

    Residential

843,538

 

842,406

       

    Commercial

137,266

 

136,278

       

    Industrial

2,853

 

2,870

       

        Total

983,657

 

981,554

       
               

Utility gas sold and transported (000s of Dth)

             

    Residential

2,761

 

3,592

 

13,288

 

17,693

    Commercial

2,283

 

2,655

 

9,386

 

11,746

    Industrial

463

 

685

 

1,415

 

2,131

        Retail subtotal

5,507

 

6,932

 

24,089

 

31,570

    Transportation / other

13,888

 

12,130

 

27,008

 

26,104

        Total

19,395

 

19,062

 

51,097

 

57,674

               

Utility retail gas customers (at June 30)

             

    Residential

366,869

 

366,114

       

    Commercial

45,375

 

45,350

       

    Industrial

482

 

534

       

        Total

412,726

 

411,998

       












 
 

 

Margin increases (decreases) from net impacts of weather (in millions) –

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2012

 

2011

 

2012

 

2011

Electric margins

$13

 

$2

 

$1

 

$6

Gas margins

(2)

 

1

 

(12)

 

4

            Total weather impact on margins

$11

 

$3

 

($11)

 

$10

               











 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2012

 

2011

 

Normal (a)

 

2012

 

2011

 

Normal (a)

Cooling degree days (CDDs) (a)

                     

   Cedar Rapids, Iowa (IPL)

317

 

213

 

221

 

345

 

213

 

222

   Madison, Wisconsin (WPL)

310

 

192

 

176

 

336

 

192

 

176

Heating degree days (HDDs) (a)

                     

   Cedar Rapids, Iowa (IPL)

510

 

779

 

700

 

3,202

 

4,369

 

4,125

   Madison, Wisconsin (WPL)

652

 

912

 

836

 

3,369

 

4,588

 

4,347





   

(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.